Delivers Double-Digit AFFO per Share Growth for Full Year 2023
Achieves Record Setting Same-Store Economic Occupancy and Fixed Commitments in Full Year 2023
Delivers Strong Same-Store Warehouse Services NOI margins in Fourth Quarter 2023
Announces Two Inaugural Developments with Canadian Pacific and DP World Strategic Partnerships
“For the full year, we delivered AFFO per share of
“Lastly, we are excited to announce an approximately
Fourth Quarter 2023 Highlights
- Total revenue decreased 5.9% to
$679.3 million . - Total NOI increased 11.5% to
$209.8 million . - Net loss of
$226.8 million , or$0.80 loss per diluted common share. - Core EBITDA increased 17.1% to
$160.3 million , and increased 17.6% on a constant currency basis. - Core FFO of
$84.8 million , or$0.30 per diluted common share. - AFFO of
$108.0 million , or$0.38 per diluted common share. Global Warehouse segment revenue increased 2.3% to$612.3 million .Global Warehouse segment NOI increased 14.4% to$197.1 million .Global Warehouse segment same store revenue increased 0.6% on an actual basis, or 1.1% on a constant currency basis,Global Warehouse segment same store NOI increased by 7.3%, or 7.9% on a constant currency basis.- On
October 5 , we completed the acquisition of Safeway Freezers, a cold storage facility located inVineland, New Jersey for approximately$24.0 million . The Company expects to invest an additional$13.0 million in necessary capital expenditures to meet the Americold Operating System standards. The new facility consists of 6.0 million cubic feet and 16,800 pallet positions. - Completed the expansion project for our site in
Plainville, CT for approximately 161.0 million. This site consists of 12.1 million cubic feet and 31,000 pallet positions. - Announcement of
Kansas City, Missouri development as part of our collaboration with Canadian Pacific -Kansas City , or CPKC, one of North America’s largest railroad companies. This facility will consist of 13.5 million cubic feet and 22,000 pallet positions.
Full year to Date 2023 Highlights
- Total revenue decreased 8.3% to
$2.7 billion . - Total NOI increased 10.7% to
$770.6 million . - Net loss of
$336 .3 million, or$1.22 loss per diluted common share. - Core EBITDA increased 14.5% to
$572.1 million , or 15.7% on a constant currency basis. - Core FFO of
$277.7 million , or$1.00 per diluted common share. - AFFO of
$351.6 million , or$1.27 per diluted common share. Global Warehouse segment revenue increased 3.8% to$2.4 billion .Global Warehouse segment NOI increased 13.6% to$722.6 million .Global Warehouse segment same store revenue increased 3.4%, or 4.3% on a constant currency basis,Global Warehouse segment same store NOI increased 11.8%, or 12.8% on a constant currency basis.
Fourth Quarter 2023 Total Company Financial Results
Total revenue for the fourth quarter of 2023 was
Total NOI for the fourth quarter of 2023 was
For the fourth quarter of 2023, the Company reported net loss of
Core EBITDA was
For the fourth quarter of 2023, Core FFO was
For the fourth quarter of 2023, AFFO was
Please see the Company’s supplemental financial information for the definitions and reconciliations of non-GAAP financial measures to the most comparable GAAP financial measures.
Fourth Quarter 2023 Global Warehouse Segment Results
For the fourth quarter of 2023,
We had 219 same store warehouses for the three months and year ended
Three Months Ended | Change | ||||||||||||||||
Dollars and units in thousands, except per pallet data | 2023 Actual | 2023 Constant Currency(1) | 2022 Actual | Actual | Constant Currency | ||||||||||||
TOTAL WAREHOUSE SEGMENT | |||||||||||||||||
Number of total warehouses | 240 | 240 | n/a | n/a | |||||||||||||
Rent and storage | $ | 276,641 | $ | 278,493 | $ | 267,031 | 3.6 | % | 4.3 | % | |||||||
Warehouse services | 335,621 | 336,331 | 331,659 | 1.2 | % | 1.4 | % | ||||||||||
Total revenue | $ | 612,262 | $ | 614,824 | $ | 598,690 | 2.3 | % | 2.7 | % | |||||||
$ | 197,102 | $ | 197,967 | $ | 172,327 | 14.4 | % | 14.9 | % | ||||||||
32.2 | % | 32.2 | % | 28.8 | % | 341 bps | 341 bps | ||||||||||
Average economic occupied pallets | 4,541 | n/a | 4,537 | 0.1 | % | n/a | |||||||||||
Average physical occupied pallets | 4,041 | n/a | 4,229 | (4.4)% | n/a | ||||||||||||
Average physical pallet positions | 5,493 | n/a | 5,415 | 1.4 | % | n/a | |||||||||||
Economic occupancy percentage | 82.7 | % | n/a | 83.8 | % | -112 bps | n/a | ||||||||||
Physical occupancy percentage | 73.6 | % | n/a | 78.1 | % | -453 bps | n/a | ||||||||||
Total rent and storage revenue per average economic occupied pallet | $ | 60.92 | $ | 61.33 | $ | 58.86 | 3.5 | % | 4.2 | % | |||||||
Total rent and storage revenue per average physical occupied pallet | $ | 68.46 | $ | 68.92 | $ | 63.14 | 8.4 | % | 9.1 | % | |||||||
Throughput pallets | 9,384 | n/a | 9,963 | (5.8)% | n/a | ||||||||||||
Total warehouse services revenue per throughput pallet | $ | 35.77 | $ | 35.84 | $ | 33.29 | 7.4 | % | 7.7 | % | |||||||
SAME STORE WAREHOUSE | |||||||||||||||||
Number of same store warehouses | 219 | 219 | n/a | n/a | |||||||||||||
Rent and storage | $ | 254,642 | $ | 256,614 | $ | 252,984 | 0.7 | % | 1.4 | % | |||||||
Warehouse services | 319,511 | 320,399 | 317,648 | 0.6 | % | 0.9 | % | ||||||||||
Total same store revenue | $ | 574,153 | $ | 577,013 | $ | 570,632 | 0.6 | % | 1.1 | % | |||||||
$ | 185,124 | $ | 186,061 | $ | 172,503 | 7.3 | % | 7.9 | % | ||||||||
32.2 | % | 32.2 | % | 30.2 | % | 201 bps | 202 bps | ||||||||||
Average economic occupied pallets | 4,216 | n/a | 4,299 | (1.9)% | n/a | ||||||||||||
Average physical occupied pallets | 3,752 | n/a | 4,015 | (6.6)% | n/a | ||||||||||||
Average physical pallet positions | 5,037 | n/a | 5,104 | (1.3)% | n/a | ||||||||||||
Economic occupancy percentage | 83.7 | % | n/a | 84.2 | % | -53 bps | n/a | ||||||||||
Physical occupancy percentage | 74.5 | % | n/a | 78.7 | % | -418 bps | n/a | ||||||||||
Same store rent and storage revenue per average economic occupied pallet | $ | 60.40 | $ | 60.87 | $ | 58.85 | 2.6 | % | 3.4 | % | |||||||
Same store rent and storage revenue per average physical occupied pallet | $ | 67.87 | $ | 68.39 | $ | 63.01 | 7.7 | % | 8.5 | % | |||||||
Throughput pallets | 8,684 | n/a | 9,396 | (7.6)% | n/a | ||||||||||||
Same store warehouse services revenue per throughput pallet | $ | 36.79 | $ | 36.90 | $ | 33.81 | 8.8 | % | 9.1 | % | |||||||
Three Months Ended | Change | ||||||||||||||
Dollars and units in thousands, except per pallet data | 2023 Actual | 2023 Constant Currency(1) | 2022 Actual | Actual | Constant Currency | ||||||||||
NON-SAME STORE WAREHOUSE | |||||||||||||||
Number of non-same store warehouses(2) | 21 | 21 | n/a | n/a | |||||||||||
Rent and storage | $ | 21,999 | $ | 21,879 | $ | 14,047 | n/r | n/r | |||||||
Warehouse services | 16,110 | 15,932 | 14,011 | n/r | n/r | ||||||||||
Total non-same store revenue | $ | 38,109 | $ | 37,811 | $ | 28,058 | n/r | n/r | |||||||
$ | 11,978 | $ | 11,906 | $ | (176 | ) | n/r | n/r | |||||||
31.4 | % | 31.5 | % | (0.6)% | n/r | n/r | |||||||||
Average economic occupied pallets | 325 | n/a | 238 | n/r | n/a | ||||||||||
Average physical occupied pallets | 289 | n/a | 214 | n/r | n/a | ||||||||||
Average physical pallet positions | 456 | n/a | 311 | n/r | n/a | ||||||||||
Economic occupancy percentage | 71.3 | % | n/a | 76.5 | % | n/r | n/a | ||||||||
Physical occupancy percentage | 63.4 | % | n/a | 68.8 | % | n/r | n/a | ||||||||
Non-same store rent and storage revenue per average economic occupied pallet | $ | 67.69 | $ | 67.32 | $ | 59.02 | n/r | n/r | |||||||
Non-same store rent and storage revenue per average physical occupied pallet | $ | 76.12 | $ | 75.71 | $ | 65.64 | n/r | n/r | |||||||
Throughput pallets | 700 | n/a | 567 | n/r | n/a | ||||||||||
Non-same store warehouse services revenue per throughput pallet | $ | 23.01 | $ | 22.76 | $ | 24.71 | n/r | n/r | |||||||
(1) The adjustments from our U.S. GAAP operating results to calculate our operating results on a constant currency basis are the effect of changes in foreign currency exchange rates relative to the comparable prior period.
(2) Refer to our “Real Estate Portfolio” section below for the composition of our non-same store pool.
(n/a = not applicable)
(n/r = not relevant)
Year Ended | Change | ||||||||||||||||
Dollars in thousands | 2023 Actual | 2023 Constant Currency(1) | 2022 Actual | Actual | Constant currency | ||||||||||||
TOTAL WAREHOUSE SEGMENT | |||||||||||||||||
Number of total warehouses | 240 | 240 | n/a | n/a | |||||||||||||
Rent and storage | $ | 1,101,741 | $ | 1,113,052 | $ | 999,388 | 10.2 | % | 11.4 | % | |||||||
Warehouse services | 1,289,348 | 1,299,295 | 1,303,583 | (1.1)% | (0.3)% | ||||||||||||
Total revenue | $ | 2,391,089 | $ | 2,412,347 | $ | 2,302,971 | 3.8 | % | 4.7 | % | |||||||
$ | 722,603 | $ | 728,579 | $ | 636,232 | 13.6 | % | 14.5 | % | ||||||||
30.2 | % | 30.2 | % | 27.6 | % | 259 bps | 258 bps | ||||||||||
Units in thousands except per pallet data | |||||||||||||||||
Average economic occupied pallets | 4,546 | n/a | 4,318 | 5.3 | % | n/a | |||||||||||
Average physical occupied pallets | 4,120 | n/a | 3,991 | 3.2 | % | n/a | |||||||||||
Average physical pallet positions | 5,442 | n/a | 5,431 | 0.2 | % | n/a | |||||||||||
Economic occupancy percentage | 83.5 | % | n/a | 79.5 | % | 403 bps | n/a | ||||||||||
Physical occupancy percentage | 75.7 | % | n/a | 73.5 | % | 222 bps | n/a | ||||||||||
Total rent and storage revenue per average economic occupied pallet | $ | 242.35 | $ | 244.84 | $ | 231.44 | 4.7 | % | 5.8 | % | |||||||
Total rent and storage revenue per average physical occupied pallet | $ | 267.41 | $ | 270.16 | $ | 250.40 | 6.8 | % | 7.9 | % | |||||||
Throughput pallets | 37,524 | n/a | 40,093 | (6.4)% | n/a | ||||||||||||
Total warehouse services revenue per throughput pallet | $ | 34.36 | $ | 34.63 | $ | 32.51 | 5.7 | % | 6.5 | % | |||||||
SAME STORE WAREHOUSE | |||||||||||||||||
Number of same store warehouses | 219 | 219 | n/a | n/a | |||||||||||||
Rent and storage | $ | 1,024,515 | $ | 1,035,596 | $ | 944,102 | 8.5 | % | 9.7 | % | |||||||
Warehouse services | 1,233,344 | 1,243,103 | 1,240,378 | (0.6)% | 0.2 | % | |||||||||||
Total same store revenue | $ | 2,257,859 | $ | 2,278,699 | $ | 2,184,480 | 3.4 | % | 4.3 | % | |||||||
$ | 708,521 | $ | 714,581 | $ | 633,714 | 11.8 | % | 12.8 | % | ||||||||
31.4 | % | 31.4 | % | 29.0 | % | 237 bps | 235 bps | ||||||||||
Units in thousands except per pallet data | |||||||||||||||||
Average economic occupied pallets | 4,268 | n/a | 4,099 | 4.1 | % | n/a | |||||||||||
Average physical occupied pallets | 3,877 | n/a | 3,788 | 2.3 | % | n/a | |||||||||||
Average physical pallet positions | 5,065 | n/a | 5,128 | (1.2)% | n/a | ||||||||||||
Economic occupancy percentage | 84.3 | % | n/a | 79.9 | % | 433 bps | n/a | ||||||||||
Physical occupancy percentage | 76.5 | % | n/a | 73.9 | % | 268 bps | n/a | ||||||||||
Same store rent and storage revenue per average economic occupied pallet | $ | 240.05 | $ | 242.64 | $ | 230.32 | 4.2 | % | 5.3 | % | |||||||
Same store rent and storage revenue per average physical occupied pallet | $ | 264.25 | $ | 267.11 | $ | 249.23 | 6.0 | % | 7.2 | % | |||||||
Throughput pallets | 35,227 | n/a | 37,841 | (6.9)% | n/a | ||||||||||||
Same store warehouse services revenue per throughput pallet | $ | 35.01 | $ | 35.29 | $ | 32.78 | 6.8 | % | 7.7 | % | |||||||
Year Ended | Change | ||||||||||||||
Dollars in thousands | 2023 Actual | 2023 Constant Currency(1) | 2022 Actual | Actual | Constant currency | ||||||||||
NON-SAME STORE WAREHOUSE | |||||||||||||||
Number of non-same store warehouses(2) | 21 | 21 | n/a | n/a | |||||||||||
Rent and storage | $ | 77,226 | $ | 77,456 | $ | 55,286 | n/r | n/r | |||||||
Warehouse services | 56,004 | 56,192 | 63,205 | n/r | n/r | ||||||||||
Total non-same store revenue | $ | 133,230 | $ | 133,648 | $ | 118,491 | n/r | n/r | |||||||
$ | 14,082 | $ | 13,998 | $ | 2,518 | n/r | n/r | ||||||||
10.6 | % | 10.5 | % | 2.1 | % | n/r | n/r | ||||||||
Units in thousands except per pallet data | |||||||||||||||
Average economic occupied pallets | 278 | n/a | 219 | n/r | n/a | ||||||||||
Average physical occupied pallets | 243 | n/a | 203 | n/r | n/a | ||||||||||
Average physical pallet positions | 377 | n/a | 303 | n/r | n/a | ||||||||||
Economic occupancy percentage | 73.7 | % | n/a | 72.3 | % | n/r | n/a | ||||||||
Physical occupancy percentage | 64.5 | % | n/a | 67.0 | % | n/r | n/a | ||||||||
Non-same store rent and storage revenue per average economic occupied pallet | $ | 277.79 | $ | 278.62 | $ | 252.45 | n/r | n/r | |||||||
Non-same store rent and storage revenue per average physical occupied pallet | $ | 317.80 | $ | 318.75 | $ | 272.34 | n/r | n/r | |||||||
Throughput pallets | 2,297 | n/a | 2,250 | n/r | n/a | ||||||||||
Non-same store warehouse services revenue per throughput pallet | $ | 24.38 | $ | 24.46 | $ | 28.09 | n/r | n/r | |||||||
(1) The adjustments from our U.S. GAAP operating results to calculate our operating results on a constant currency basis are the effect of changes in foreign currency exchange rates relative to the comparable prior period.
(2) Refer to our “Real Estate Portfolio” section below for the composition of our non-same store pool.
(n/a = not applicable)
(n/r = not relevant)
Fixed Commitment Rent and Storage Revenue
As of
Economic and Physical Occupancy
Contracts that contain fixed commitments are designed to ensure the Company’s customers have space available when needed. For the fourth quarter of 2023, economic occupancy for the total warehouse segment was 82.7% and warehouse segment same store pool was 83.7%, representing a 910 basis point and 921 basis point increase above physical occupancy, respectively. Economic occupancy for the total warehouse segment decreased 112 basis points, and the warehouse segment same store pool decreased 53 basis points as compared to the fourth quarter of 2022. The reduction in occupancy reflects the ramp in manufacturer production during the fourth quarter of 2022 as labor improved, which did not recur in 2023.
Real Estate Portfolio
As of
Balance Sheet Activity and Liquidity
As of
Dividend
On
2024 Outlook
The Company announced its 2024 annual AFFO per share guidance to be within the range of
Investor Webcast and Conference Call
The Company will hold a webcast and conference call on
The conference call can also be accessed by dialing 1-877-407-3982 or 1-201-493-6780. The telephone replay can be accessed by dialing 1-844-512-2921 or 1-412-317-6671 and providing the conference ID#13740732. The telephone replay will be available starting shortly after the call until
The Company’s supplemental package will be available prior to the conference call in the Investors section of the Company’s website at http://ir.americold.com.
About the Company
Americold is a global leader in temperature-controlled logistics real estate and value added services. Focused on the ownership, operation, acquisition and development of temperature-controlled warehouses, Americold owns and/or operates 245 temperature-controlled warehouses, with approximately 1.5 billion refrigerated cubic feet of storage, in
Non-GAAP Financial Measures
This press release contains non-GAAP financial measures, including NAREIT FFO, core FFO, AFFO, EBITDAre, Core EBITDA; same store segment revenue, contribution (NOI), margin, and maintenance capital expenditures. Definitions of these non-GAAP metrics are included in our quarterly financial supplement, and reconciliations of these non-GAAP measures to their most comparable GAAP metrics are included herein. Each of the non-GAAP measures included in this press release has limitations as an analytical tool and should not be considered in isolation or as a substitute for an analysis of the Company’s results calculated in accordance with GAAP. In addition, because not all companies use identical calculations, the Company’s presentation of non-GAAP measures in this press release may not be comparable to similarly titled measures disclosed by other companies, including other REITs.
Forward-Looking Statements
This press release contains statements about future events and expectations that constitute forward-looking statements. Forward-looking statements are based on our beliefs, assumptions and expectations of our future financial and operating performance and growth plans, taking into account the information currently available to us. These statements are not statements of historical fact. Forward-looking statements involve risks and uncertainties that may cause our actual results to differ materially from the expectations of future results we express or imply in any forward-looking statements, and you should not place undue reliance on such statements. Factors that could contribute to these differences include the following: rising inflationary pressures, increased interest rates and operating costs; labor and power costs; labor shortages; our relationship with our associates, the occurrence of any work stoppages or any disputes under our collective bargaining agreements and employment related litigation; the impact of supply chain disruptions; risks related to rising construction costs; risks related to expansions of existing properties and developments of new properties, including failure to meet budgeted or stabilized returns within expected time frames, or at all, in respect thereof; uncertainty of revenues, given the nature of our customer contracts; acquisition risks, including the failure to identify or complete attractive acquisitions or failure to realize the intended benefits from our recent acquisitions; difficulties in expanding our operations into new markets; uncertainties and risks related to public health crises; a failure of our information technology systems, systems conversions and integrations, cybersecurity attacks or a breach of our information security systems, networks or processes, including those related to the cyber matter which occurred on
Words such as “anticipates,” “believes,” “continues,” “estimates,” “expects,” “goal,” “objectives,” “intends,” “may,” “opportunity,” “plans,” “potential,” “near-term,” “long-term,” “projections,” “assumptions,” “projects,” “guidance,” “forecasts,” “outlook,” “target,” “trends,” “should,” “could,” “would,” “will” and similar expressions are intended to identify such forward-looking statements. Examples of forward-looking statements included in this press release include those regarding our 2023 outlook and our migration of our customers to fixed commitment storage contracts. We qualify any forward-looking statements entirely by these cautionary factors. Other risks, uncertainties and factors, including those discussed under “Risk Factors” in our Annual Report on Form 10-K for the year ended
Contacts:
Investor Relations
Telephone: 678-459-1959
Email: investor.relations@americold.com
Condensed Consolidated Balance Sheets (Unaudited) | |||||||
(In thousands, except shares and per share amounts) | |||||||
Assets | |||||||
Property, buildings, and equipment: | |||||||
Land | $ | 820,831 | $ | 786,975 | |||
Buildings and improvements | 4,464,359 | 4,245,607 | |||||
Machinery and equipment | 1,565,431 | 1,407,874 | |||||
Assets under construction | 452,312 | 526,811 | |||||
7,302,933 | 6,967,267 | ||||||
Accumulated depreciation | (2,196,196 | ) | (1,901,450 | ) | |||
Property, buildings, and equipment – net | 5,106,737 | 5,065,817 | |||||
Operating lease right-of-use assets | 343,532 | 352,553 | |||||
Accumulated amortization-operating leases | (96,230 | ) | (76,334 | ) | |||
Operating leases-net | 247,302 | 276,219 | |||||
Financing Leases: | |||||||
Buildings and improvements | 13,542 | 13,546 | |||||
Machinery and equipment | 161,446 | 127,009 | |||||
174,988 | 140,555 | ||||||
Accumulated depreciation | (69,824 | ) | (57,626 | ) | |||
Financing leases – net | 105,164 | 82,929 | |||||
Cash, cash equivalents, and restricted cash | 60,392 | 53,063 | |||||
Accounts receivable, net of allowance of | 426,048 | 430,042 | |||||
Identifiable intangible assets – net | 897,414 | 925,223 | |||||
794,004 | 1,033,637 | ||||||
Investments in and advances to partially owned entities and other | 38,113 | 78,926 | |||||
Other assets | 194,078 | 158,705 | |||||
Total assets | $ | 7,869,252 | $ | 8,104,561 | |||
Liabilities and equity | |||||||
Liabilities: | |||||||
Borrowings under revolving line of credit | $ | 392,156 | $ | 500,052 | |||
Accounts payable and accrued expenses | 568,764 | 557,540 | |||||
Senior unsecured notes and term loans - net of deferred financing cost of | 2,601,122 | 2,569,281 | |||||
Sale-leaseback financing obligations | 161,937 | 171,089 | |||||
Financing lease obligations | 97,177 | 77,561 | |||||
Operating lease obligations | 240,251 | 264,634 | |||||
Unearned revenue | 28,379 | 32,046 | |||||
Pension and postretirement benefits | 1,624 | 1,531 | |||||
Deferred tax liability - net | 135,797 | 135,098 | |||||
Multiemployer pension plan withdrawal liability | 7,458 | 7,851 | |||||
Total liabilities | 4,234,665 | 4,316,683 | |||||
Equity | |||||||
Stockholders' equity | |||||||
Common stock, | 2,837 | 2,698 | |||||
Paid-in capital | 5,625,907 | 5,191,969 | |||||
Accumulated deficit and distributions in excess of net earnings | (1,995,975 | ) | (1,415,198 | ) | |||
Accumulated other comprehensive loss | (16,640 | ) | (6,050 | ) | |||
Total stockholders’ equity | 3,616,129 | 3,773,419 | |||||
Noncontrolling interests: | |||||||
Noncontrolling interests in operating partnership | 18,458 | 14,459 | |||||
Total equity | 3,634,587 | 3,787,878 | |||||
Total liabilities and equity | $ | 7,869,252 | $ | 8,104,561 | |||
Condensed Consolidated Statements of Operations (Unaudited) | |||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Revenues: | |||||||||||||||
Rent, storage, and warehouse services | $ | 612,262 | $ | 598,690 | $ | 2,391,089 | $ | 2,302,971 | |||||||
Transportation services | 57,878 | 76,190 | 239,670 | 313,358 | |||||||||||
Third-party managed services | 9,151 | 46,624 | 42,570 | 298,406 | |||||||||||
Total revenues | 679,291 | 721,504 | 2,673,329 | 2,914,735 | |||||||||||
Operating expenses: | |||||||||||||||
Rent, storage, and warehouse services cost of operations | 415,160 | 426,363 | 1,668,486 | 1,666,739 | |||||||||||
Transportation services cost of operations | 46,966 | 61,738 | 197,630 | 265,956 | |||||||||||
Third-party managed services cost of operations | 7,330 | 45,177 | 36,641 | 286,077 | |||||||||||
Depreciation and amortization | 94,099 | 82,467 | 353,743 | 331,446 | |||||||||||
Selling, general, and administrative | 57,763 | 60,073 | 226,786 | 231,067 | |||||||||||
Acquisition, cyber incident, and other, net | 15,774 | 11,899 | 64,087 | 32,511 | |||||||||||
Impairment of indefinite and long-lived assets | 236,515 | 764 | 236,515 | 7,380 | |||||||||||
Loss (gain) on sale of real estate | 5 | (21 | ) | (2,254 | ) | 5,689 | |||||||||
Total operating expenses | 873,612 | 688,460 | 2,781,634 | 2,826,865 | |||||||||||
Operating (loss) income | (194,321 | ) | 33,044 | (108,305 | ) | 87,870 | |||||||||
Other income (expense) | |||||||||||||||
Interest expense | (33,681 | ) | (33,407 | ) | (140,107 | ) | (116,127 | ) | |||||||
derivative instruments | (627 | ) | (933 | ) | (2,482 | ) | (3,217 | ) | |||||||
Gain (loss) from partially owned entities | 174 | (139 | ) | (1,442 | ) | (918 | ) | ||||||||
Impairment of related party loan receivable | — | — | (21,972 | ) | — | ||||||||||
Loss on put option | — | — | (56,576 | ) | — | ||||||||||
Other, net | 1,054 | 3,661 | 2,795 | 2,464 | |||||||||||
(Loss) income from continuing operations before income taxes | (227,401 | ) | 2,226 | (328,089 | ) | (29,928 | ) | ||||||||
Income tax benefit (expense) | |||||||||||||||
Current | (2,627 | ) | (721 | ) | (8,508 | ) | (3,725 | ) | |||||||
Deferred | 3,228 | 3,412 | 10,781 | 22,561 | |||||||||||
Income tax benefit | 601 | 2,691 | 2,273 | 18,836 | |||||||||||
Net (loss) income | |||||||||||||||
Net (loss) income from continuing operations | (226,800 | ) | 4,917 | (325,816 | ) | (11,092 | ) | ||||||||
Net loss from discontinued operations | — | (1,962 | ) | (10,453 | ) | (8,382 | ) | ||||||||
Net (loss) income | $ | (226,800 | ) | $ | 2,955 | $ | (336,269 | ) | $ | (19,474 | ) | ||||
Net loss attributable to noncontrolling interests | 41 | 11 | (54 | ) | (34 | ) | |||||||||
Net (loss) income attributable to | $ | (226,841 | ) | $ | 2,944 | $ | (336,215 | ) | $ | (19,440 | ) | ||||
Weighted average common stock outstanding – basic | 284,263 | 269,826 | 275,773 | 269,565 | |||||||||||
Weighted average common stock outstanding – diluted | 284,263 | 270,770 | 275,773 | 269,565 | |||||||||||
Net (loss) income per common share - basic | $ | (0.80 | ) | $ | 0.02 | $ | (1.18 | ) | $ | (0.04 | ) | ||||
Net loss per common share from discontinued operations - basic | $ | — | $ | (0.01 | ) | $ | (0.04 | ) | $ | (0.03 | ) | ||||
Basic (loss) income per share | $ | (0.80 | ) | $ | 0.01 | $ | (1.22 | ) | $ | (0.07 | ) | ||||
Net (loss) income per common share - diluted | $ | (0.80 | ) | $ | 0.02 | $ | (1.18 | ) | $ | (0.04 | ) | ||||
Net loss per common share from discontinued operations - diluted | $ | — | $ | (0.01 | ) | $ | (0.04 | ) | $ | (0.03 | ) | ||||
Diluted (loss) income per share | $ | (0.80 | ) | $ | 0.01 | $ | (1.22 | ) | $ | (0.07 | ) | ||||
Reconciliation of Net (Loss) Income to NAREIT FFO, Core FFO, and AFFO | ||||||||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||||||
Three Months Ended | YTD | |||||||||||||||||||||
Q4 23 | Q3 23 | Q2 23 | Q1 23 | Q4 22 | 2023 | 2022 | ||||||||||||||||
Net (loss) income | $ | (226,800 | ) | $ | (2,096 | ) | $ | (104,802 | ) | $ | (2,571 | ) | $ | 2,955 | $ | (336,269 | ) | $ | (19,474 | ) | ||
Adjustments: | ||||||||||||||||||||||
Real estate related depreciation | 57,183 | 56,373 | 54,740 | 54,541 | 53,094 | 222,837 | 210,171 | |||||||||||||||
Loss (gain) on sale of real estate | 5 | 78 | (2,528 | ) | 191 | (21 | ) | (2,254 | ) | 5,689 | ||||||||||||
Net loss (gain) on asset disposals | 260 | (25 | ) | — | — | 175 | 235 | 1,135 | ||||||||||||||
Impairment charges on real estate assets | — | — | — | — | — | — | 3,407 | |||||||||||||||
Our share of reconciling items related to partially owned entities | 280 | 290 | 232 | 903 | 1,209 | 1,705 | 4,410 | |||||||||||||||
NAREIT Funds from operations | $ | (169,072 | ) | $ | 54,620 | $ | (52,358 | ) | $ | 53,064 | $ | 57,412 | $ | (113,746 | ) | $ | 205,338 | |||||
Adjustments: | ||||||||||||||||||||||
Net loss (gain) on sale of non-real estate assets | 3,312 | (296 | ) | 289 | 420 | 2,274 | 3,725 | 2,421 | ||||||||||||||
Acquisition, cyber incident and other, net | 15,774 | 13,931 | 27,235 | 7,147 | 11,899 | 64,087 | 32,511 | |||||||||||||||
236,515 | — | — | — | — | 236,515 | 3,209 | ||||||||||||||||
Loss on debt extinguishment, modifications and termination of derivative instruments | 627 | 683 | 627 | 545 | 933 | 2,482 | 3,217 | |||||||||||||||
Foreign currency exchange (gain) loss | (28 | ) | 705 | 212 | (458 | ) | (2,477 | ) | 431 | 975 | ||||||||||||
Gain on legal settlement related to prior period operations | (2,180 | ) | — | — | — | — | (2,180 | ) | — | |||||||||||||
Gain on extinguishment of New Market Tax Credit Structure | — | — | — | — | — | — | (3,410 | ) | ||||||||||||||
Loss on deconsolidation of subsidiary contributed to LATAM joint venture | — | — | — | — | — | — | 4,148 | |||||||||||||||
Our share of reconciling items related to partially owned entities | (184 | ) | 147 | (27 | ) | 128 | 127 | 64 | 574 | |||||||||||||
(Gain) loss from discontinued operations, net of tax | — | (203 | ) | 8,275 | — | — | 8,072 | — | ||||||||||||||
Impairment of related party receivable | — | — | 21,972 | — | — | 21,972 | — | |||||||||||||||
Loss on put option | — | — | 56,576 | — | — | 56,576 | — | |||||||||||||||
Gain on sale of LATAM JV | — | — | (304 | ) | — | — | (304 | ) | — | |||||||||||||
Core FFO(b) | $ | 84,764 | $ | 69,587 | $ | 62,497 | $ | 60,846 | $ | 70,168 | $ | 277,694 | $ | 248,983 | ||||||||
Adjustments: | ||||||||||||||||||||||
Amortization of deferred financing costs and pension withdrawal liability | 1,290 | 1,286 | 1,279 | 1,240 | 1,305 | 5,095 | 4,833 | |||||||||||||||
Amortization of below/above market leases | 360 | 369 | 375 | 402 | 534 | 1,506 | 2,131 | |||||||||||||||
Non-real estate asset impairment | — | — | — | — | 764 | — | 764 | |||||||||||||||
Straight-line net rent | 597 | 544 | 361 | (491 | ) | 333 | 1,011 | 747 | ||||||||||||||
Deferred income tax benefit | (3,228 | ) | (2,473 | ) | (1,459 | ) | (3,621 | ) | (3,412 | ) | (10,781 | ) | (22,561 | ) | ||||||||
Stock-based compensation expense | 5,780 | 6,203 | 4,639 | 6,970 | 5,036 | 23,592 | 27,137 | |||||||||||||||
Non-real estate depreciation and amortization | 36,916 | 33,355 | 30,152 | 30,483 | 29,373 | 130,906 | 121,275 | |||||||||||||||
Maintenance capital expenditures | (18,670 | ) | (20,907 | ) | (22,590 | ) | (16,244 | ) | (26,701 | ) | (78,411 | ) | (85,511 | ) | ||||||||
Our share of reconciling items related to partially owned entities | 208 | 198 | 303 | 304 | 819 | 1,013 | 2,482 | |||||||||||||||
Adjusted FFO(b) | $ | 108,017 | $ | 88,162 | $ | 75,557 | $ | 79,889 | $ | 78,219 | 351,625 | $ | 300,280 | |||||||||
Reconciliation of Net (Loss) Income to NAREIT FFO, Core FFO, and AFFO (continued) | ||||||||||||||||||
(In thousands except per share amounts) | ||||||||||||||||||
Three Months Ended | YTD | |||||||||||||||||
Q4 23 | Q3 23 | Q2 23 | Q1 23 | Q4 22 | 2023 | 2022 | ||||||||||||
NAREIT Funds from operations(b) | $ | (169,072 | ) | $ | 54,620 | $ | (52,358 | ) | $ | 53,064 | $ | 57,412 | $ | (113,746 | ) | $ | 205,338 | |
Core FFO(b) | $ | 84,764 | $ | 69,587 | $ | 62,497 | $ | 60,846 | $ | 70,168 | $ | 277,694 | $ | 248,984 | ||||
Adjusted FFO(b) | $ | 108,017 | $ | 88,162 | $ | 75,557 | $ | 79,889 | $ | 78,219 | $ | 351,625 | $ | 300,281 | ||||
Reconciliation of weighted average shares: | ||||||||||||||||||
Weighted average basic shares for net income calculation | 284,263 | 278,137 | 270,462 | 270,230 | 269,826 | 275,773 | 269,565 | |||||||||||
Dilutive stock options and unvested restricted stock units | 502 | 519 | 695 | 778 | 944 | 624 | 1,041 | |||||||||||
Weighted average dilutive shares | 284,765 | 278,656 | 271,157 | 271,008 | 270,770 | 276,397 | 270,606 | |||||||||||
NAREIT FFO - basic per share(b) | $ | (0.59 | ) | $ | 0.20 | $ | (0.19 | ) | $ | 0.20 | $ | 0.21 | $ | (0.41 | ) | $ | 0.76 | |
NAREIT FFO - diluted per share(b) | $ | (0.59 | ) | $ | 0.20 | $ | (0.19 | ) | $ | 0.20 | $ | 0.21 | $ | (0.41 | ) | $ | 0.76 | |
Core FFO - basic per share(b) | $ | 0.30 | $ | 0.25 | $ | 0.23 | $ | 0.23 | $ | 0.26 | $ | 1.01 | $ | 0.92 | ||||
Core FFO - diluted per share(b) | $ | 0.30 | $ | 0.25 | $ | 0.23 | $ | 0.22 | $ | 0.26 | $ | 1.00 | $ | 0.92 | ||||
Adjusted FFO - basic per share(b) | $ | 0.38 | $ | 0.32 | $ | 0.28 | $ | 0.30 | $ | 0.29 | $ | 1.28 | $ | 1.11 | ||||
Adjusted FFO - diluted per share(b) | $ | 0.38 | $ | 0.32 | $ | 0.28 | $ | 0.29 | $ | 0.29 | $ | 1.27 | $ | 1.11 |
(a) Maintenance capital expenditures include capital expenditures made to extend the life of, and provide future economic benefit from, our existing temperature-controlled warehouse network and its existing supporting personal property and information technology.
(b) During the three and six months ended
Three Months Ended-Recasted | YTD Recasted | |||||||||
(In thousands except per share amounts) | Q1 23 | Q4 22 | 2023 | 2022 | ||||||
NAREIT FFO | $ | 52,432 | $ | 56,457 | $ | (114,378 | ) | $ | 202,088 | |
Core FFO | $ | 62,547 | $ | 71,157 | $ | 279,395 | $ | 254,078 | ||
Adjusted FFO applicable to common shareholders | $ | 81,506 | $ | 78,717 | $ | 353,242 | $ | 303,007 | ||
NAREIT FFO - basic per share | $ | 0.19 | $ | 0.21 | $ | (0.41 | ) | $ | 0.75 | |
NAREIT FFO - diluted per share | $ | 0.19 | $ | 0.21 | $ | (0.41 | ) | $ | 0.75 | |
Core FFO - basic per share | $ | 0.23 | $ | 0.26 | $ | 1.01 | $ | 0.94 | ||
Core FFO - diluted per share | $ | 0.23 | $ | 0.26 | $ | 1.01 | $ | 0.94 | ||
Adjusted FFO - basic per share | $ | 0.30 | $ | 0.29 | $ | 1.28 | $ | 1.12 | ||
Adjusted FFO - diluted per share | $ | 0.30 | $ | 0.29 | $ | 1.28 | $ | 1.12 | ||
Reconciliation of Net (Loss) Income to EBITDA, NAREIT EBITDAre, and Core EBITDA | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
Three Months Ended | Year End | |||||||||||||||||||||
Q4 23 | Q3 23 | Q2 23 | Q1 23 | Q4 22 | 2023 | 2022 | ||||||||||||||||
Net (loss) income | $ | (226,800 | ) | $ | (2,096 | ) | $ | (104,802 | ) | $ | (2,571 | ) | $ | 2,955 | $ | (336,269 | ) | $ | (19,474 | ) | ||
Adjustments: | ||||||||||||||||||||||
Depreciation and amortization | 94,099 | 89,728 | 84,892 | 85,024 | 82,467 | 353,743 | 331,446 | |||||||||||||||
Interest expense | 33,681 | 35,572 | 36,431 | 34,423 | 33,407 | 140,107 | 116,127 | |||||||||||||||
Income tax (benefit) expense | (601 | ) | (492 | ) | 464 | (1,644 | ) | (2,691 | ) | (2,273 | ) | (18,836 | ) | |||||||||
EBITDA | $ | (99,621 | ) | $ | 122,712 | $ | 16,985 | $ | 115,232 | $ | 116,138 | $ | 155,308 | $ | 409,263 | |||||||
Adjustments: | ||||||||||||||||||||||
Loss (gain) on sale of real estate | 5 | 78 | (2,528 | ) | 191 | (21 | ) | (2,254 | ) | 5,689 | ||||||||||||
Adjustment to reflect share of EBITDAre of partially owned entities | 1,533 | 1,495 | 3,085 | 2,883 | 5,019 | 8,996 | 17,815 | |||||||||||||||
NAREIT EBITDAre(a) | $ | (98,083 | ) | $ | 124,285 | $ | 17,542 | $ | 118,306 | $ | 121,136 | $ | 162,050 | $ | 432,767 | |||||||
Adjustments: | ||||||||||||||||||||||
Acquisition, cyber incident and other, net | 15,774 | 13,931 | 27,235 | 7,147 | 11,899 | 64,087 | 32,511 | |||||||||||||||
(Gain) loss from investments in partially owned entities | (174 | ) | 259 | 709 | 3,029 | 2,101 | 3,823 | 9,300 | ||||||||||||||
Impairment of indefinite and long-lived assets | 236,515 | — | — | — | 764 | 236,515 | 7,380 | |||||||||||||||
Foreign currency exchange (gain) loss | (28 | ) | 705 | 212 | (458 | ) | (2,477 | ) | 431 | 975 | ||||||||||||
Stock-based compensation expense | 5,780 | 6,203 | 4,639 | 6,970 | 5,036 | 23,592 | 27,137 | |||||||||||||||
Loss on debt extinguishment, modifications and termination of derivative instruments | 627 | 683 | 627 | 545 | 933 | 2,482 | 3,217 | |||||||||||||||
Gain (loss) on real estate and other asset disposals | 3,572 | (321 | ) | 289 | 420 | 2,449 | 3,960 | 3,556 | ||||||||||||||
Loss on deconsolidation of subsidiary contributed to LATAM joint venture | — | — | — | — | — | — | 4,148 | |||||||||||||||
Reduction in EBITDAre from partially owned entities | (1,533 | ) | (1,495 | ) | (3,085 | ) | (2,883 | ) | (5,019 | ) | (8,996 | ) | (17,815 | ) | ||||||||
Gain from sale of partially owned entities | — | — | (304 | ) | — | — | (304 | ) | — | |||||||||||||
(Gain) loss from discontinued operations, net of tax | — | (203 | ) | 8,275 | — | — | 8,072 | — | ||||||||||||||
Impairment of related party receivable | — | — | 21,972 | — | — | 21,972 | — | |||||||||||||||
Loss on put option | — | — | 56,576 | — | — | 56,576 | — | |||||||||||||||
Core EBITDA | $ | 160,270 | $ | 144,047 | $ | 134,687 | $ | 133,076 | $ | 136,822 | 572,080 | 499,766 |
(a) During the three and six months ended
Three Months Ended-Recasted | Year End Recasted | ||||||||
(In thousands) | Q1 23 | Q4 22 | 2023 | 2022 | |||||
NAREIT EBITDAre | $ | 116,872 | $ | 117,602 | $ | 160,616 | $ | 419,791 |
Three Months Ended | Year Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Segment revenues: | |||||||||||||||
Warehouse | 612,262 | 598,690 | $ | 2,391,089 | $ | 2,302,971 | |||||||||
Transportation | 57,878 | 76,190 | 239,670 | 313,358 | |||||||||||
Third-party managed | 9,151 | 46,624 | 42,570 | 298,406 | |||||||||||
Total revenues | 679,291 | 721,504 | 2,673,329 | 2,914,735 | |||||||||||
Segment contribution: | |||||||||||||||
Warehouse | 197,102 | 172,327 | $ | 722,603 | $ | 636,232 | |||||||||
Transportation | 10,912 | 14,452 | 42,040 | 47,402 | |||||||||||
Third-party managed | 1,821 | 1,447 | 5,929 | 12,329 | |||||||||||
Total segment contribution | 209,835 | 188,226 | 770,572 | 695,963 | |||||||||||
Reconciling items: | |||||||||||||||
Depreciation and amortization | (94,099 | ) | (82,467 | ) | (353,743 | ) | (331,446 | ) | |||||||
Selling, general, and administrative | (57,763 | ) | (60,073 | ) | (226,786 | ) | (231,067 | ) | |||||||
Acquisition, cyber incident, and other, net | (15,774 | ) | (11,899 | ) | (64,087 | ) | (32,511 | ) | |||||||
Impairment of indefinite and long-lived assets | (236,515 | ) | (764 | ) | (236,515 | ) | (7,380 | ) | |||||||
(Loss) gain on sale of real estate | (5 | ) | 21 | 2,254 | (5,689 | ) | |||||||||
Interest expense | (33,681 | ) | (33,407 | ) | (140,107 | ) | (116,127 | ) | |||||||
Other, net | 1,054 | 3,661 | 2,795 | 2,464 | |||||||||||
Loss on debt extinguishment, modifications and termination of derivative instruments | (627 | ) | (933 | ) | (2,482 | ) | (3,217 | ) | |||||||
Gain (loss) from partially owned entities | 174 | (139 | ) | (1,442 | ) | (918 | ) | ||||||||
Impairment of related party loan receivable | — | — | (21,972 | ) | — | ||||||||||
Loss on put option | — | — | (56,576 | ) | — | ||||||||||
(Loss) income from continuing operations before income taxes | $ | (227,401 | ) | $ | 2,226 | $ | (328,089 | ) | $ | (29,928 | ) | ||||
We view and manage our business through three primary business segments—warehouse, transportation, third-party managed. Our core business is our warehouse segment, where we provide temperature-controlled warehouse storage and related handling and other warehouse services. In our warehouse segment, we collect rent and storage fees from customers to store their frozen and perishable food and other products within our real estate portfolio. We also provide our customers with handling and other warehouse services related to the products stored in our buildings that are designed to optimize their movement through the cold chain, such as the placement of food products for storage and preservation, the retrieval of products from storage upon customer request, case-picking, blast freezing, produce grading and bagging, ripening, kitting, protein boxing, repackaging, e-commerce fulfillment, and other recurring handling services.
In our transportation segment, we broker and manage transportation of frozen and perishable food and other products for our customers. Our transportation services include consolidation services (i.e., consolidating a customer’s products with those of other customers for more efficient shipment), freight under management services (i.e., arranging for and overseeing transportation of customer inventory) and dedicated transportation services, each designed to improve efficiency and reduce transportation and logistics costs to our customers. We provide these transportation services at cost plus a service fee or, in the case of our consolidation or dedicated services, we may charge a fixed fee. We supplemented our regional, national and truckload consolidation services with the transportation operations from various warehouse acquisitions. We also provide multi-modal global freight forwarding services to support our customers’ needs in certain markets.
Under our third-party managed segment, we manage warehouses on behalf of third parties and provide warehouse management services to leading food manufacturers and retailers in their owned facilities. We believe using our third-party management services allows our customers to increase efficiency, reduce costs, reduce supply-chain risks and focus on their core businesses. We also believe that providing third-party management services allows us to offer a complete and integrated suite of services across the cold chain.
Notes and Definitions
We use the following non-GAAP financial measures as supplemental performance measures of our business: NAREIT FFO, Core FFO, Adjusted FFO, EBITDAre, Core EBITDA, net debt to pro-forma Core EBITDA, and segment contribution (“NOI”).
We calculate funds from operations, or FFO, in accordance with the standards established by the
We calculate core funds from operations, or Core FFO, as NAREIT FFO adjusted for the effects of gain or loss on the sale of non-real estate assets, acquisition, cyber incident and other, net, goodwill impairment (when applicable), loss on debt extinguishment, modifications and termination of derivative instruments, foreign currency exchange (gain) loss, gain on legal settlement related to prior period operations, gain or loss from discontinued operations net of tax, impairment of related party receivable, loss on fair put option, gain on extinguishment of New Market Tax Credit structure, loss on deconsolidation of subsidiary contributed to LATAM joint venture, and gain from sale of LATAM joint venture. We also adjust for the impact of Core FFO on our share of reconciling items for partially owned entities, and gain from disposition of partially owned entities. We believe that Core FFO is helpful to investors as a supplemental performance measure because it excludes the effects of certain items which can create significant earnings volatility, but which do not directly relate to our core business operations. We believe Core FFO can facilitate comparisons of operating performance between periods, while also providing a more meaningful predictor of future earnings potential.
However, because NAREIT FFO and Core FFO add back real estate depreciation and amortization and do not capture the level of maintenance capital expenditures necessary to maintain the operating performance of our properties, both of which have material economic impacts on our results from operations, we believe the utility of NAREIT FFO and Core FFO as a measure of our performance may be limited.
We calculate adjusted funds from operations, or Adjusted FFO, as Core FFO adjusted for the effects of amortization of deferred financing costs and pension withdrawal liability, amortization of above or below market leases, non-real estate asset impairment, straight-line net rent, benefit from deferred income taxes, stock-based compensation expense, non-real estate depreciation and amortization and maintenance capital expenditures. We also adjust for AFFO attributable to our share of reconciling items of partially owned entities and discontinued operations. We believe that Adjusted FFO is helpful to investors as a meaningful supplemental comparative performance measure of our ability to make incremental capital investments in our business and to assess our ability to fund distribution requirements from our operating activities.
FFO, Core FFO and Adjusted FFO are used by management, investors and industry analysts as supplemental measures of operating performance of equity REITs. FFO, Core FFO and Adjusted FFO should be evaluated along with U.S. GAAP net income and net income per diluted share (the most directly comparable U.S. GAAP measures) in evaluating our operating performance. FFO, Core FFO and Adjusted FFO do not represent net income or cash flows from operating activities in accordance with U.S. GAAP and are not indicative of our results of operations or cash flows from operating activities as disclosed in our consolidated statements of operations included in our quarterly and annual reports. FFO, Core FFO and Adjusted FFO should be considered as supplements, but not alternatives, to our net income or cash flows from operating activities as indicators of our operating performance. Moreover, other REITs may not calculate FFO in accordance with the NAREIT definition or may interpret the NAREIT definition differently than we do. Accordingly, our FFO may not be comparable to FFO as calculated by other REITs. In addition, there is no industry definition of Core FFO or Adjusted FFO and, as a result, other REITs may also calculate Core FFO or Adjusted FFO, or other similarly-captioned metrics, in a manner different than we do. The table above reconciles FFO, Core FFO and Adjusted FFO to net (loss) income, which is the most directly comparable financial measure calculated in accordance with
We calculate EBITDA for Real Estate, or EBITDAre, in accordance with the standards established by the
We also calculate our Core EBITDA as EBITDAre further adjusted for acquisition, cyber and other, net, loss from investments in partially owned entities, impairment of indefinite and long-lived assets (when applicable), foreign currency exchange loss or gain, stock-based compensation expense, loss on debt extinguishment, modifications and termination of derivative instruments, net gain on other asset disposals, reduction in EBITDAre from partially owned entities, discontinued operations, impairment of related party loan receivable, loss on fair value of put, gain on extinguishment of new market tax credit structure, and loss on deconsolidation of subsidiary contributed to LATAM joint venture.. We believe that the presentation of Core EBITDA provides a measurement of our operations that is meaningful to investors because it excludes the effects of certain items that are otherwise included in EBITDAre but which we do not believe are indicative of our core business operations. EBITDAre and Core EBITDA are not measurements of financial performance under U.S. GAAP, and our EBITDAre and Core EBITDA may not be comparable to similarly titled measures of other companies. You should not consider our EBITDAre and Core EBITDA as alternatives to net income or cash flows from operating activities determined in accordance with U.S. GAAP. Our calculations of EBITDAre and Core EBITDA have limitations as analytical tools, including:
NOI is calculated as earnings before interest expense, taxes, depreciation and amortization, and excluding corporate Selling, general, and administrative expense; Acquisition, cyber incident, and other, net; Impairment of indefinite and long-lived assets; gain or loss on sale of real estate and all components of non-operating other income and expense. Management believes that this is a helpful metric to measure period to period operating performance of the business.
- these measures do not reflect our historical or future cash requirements for maintenance capital expenditures or growth and expansion capital expenditures;
- these measures do not reflect changes in, or cash requirements for, our working capital needs;
- these measures do not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on our indebtedness;
- these measures do not reflect our tax expense or the cash requirements to pay our taxes; and
- although depreciation and amortization are non-cash charges, the assets being depreciated will often have to be replaced in the future and these measures do not reflect any cash requirements for such replacements.
We use Core EBITDA and EBITDAre as measures of our operating performance and not as measures of liquidity. The table on page 21 of our financial supplement reconciles EBITDA, EBITDAre and Core EBITDA to net income, which is the most directly comparable financial measure calculated in accordance with
Net debt to proforma Core EBITDA is calculated using total debt, plus capital lease obligations, less cash and cash equivalents, divided by pro-forma Core EBITDA. We calculate pro-forma Core EBITDA as Core EBITDA further adjusted for acquisitions, dispositions and for rent expense associated with lease buy-outs and lease exits. The pro-forma adjustment for acquisitions reflects the Core EBITDA for the period of time prior to acquisition. The pro-forma adjustment for leased facilities exited or purchased reflects the add-back for the related lease expense from the last year. The pro-forma adjustment for dispositions reduces Core EBITDA for the earnings of facilities disposed of or exited during the year, including the strategic exit of certain third-party managed business.
We define our “same store” population once annually at the beginning of the current calendar year. Our population includes properties owned or leased for the entirety of two comparable periods with at least twelve consecutive months of normalized operations prior to
We calculate “same store revenue” as revenues for the same store population. We calculate “same store contribution (NOI)” as revenues for the same store population less its cost of operations (excluding any depreciation and amortization, impairment charges, corporate-level selling, general and administrative expenses, corporate-level acquisition, cyber incident and other, net and gain or loss on sale of real estate). In order to derive an appropriate measure of period-to-period operating performance, we also calculate our same store contribution (NOI) on a constant currency basis to remove the effects of foreign currency exchange rate movements by using the comparable prior period exchange rate to translate from local currency into
We define “maintenance capital expenditures” as capital expenditures made to extend the life of, and provide future economic benefit from, our existing temperature-controlled warehouse network and its existing supporting personal property and information technology. Maintenance capital expenditures include capital expenditures made to extend the life of, and provide future economic benefit from, our existing temperature-controlled warehouse network and its existing supporting personal property and information technology. Maintenance capital expenditures do not include acquisition costs contemplated when underwriting the purchase of a building or costs which are incurred to bring a building up to Americold’s operating standards. See the tables on page 30 of our financial supplement for additional information regarding our maintenance capital expenditures.
We define “total real estate debt” as the aggregate of the following: mortgage notes, senior unsecured notes, term loans and borrowings under our revolving line of credit. We define “total debt outstanding” as the aggregate of the following: total real estate debt, sale-leaseback financing obligations and financing lease obligations. See the tables on page 23 of our financial supplement for additional information regarding our indebtedness.
All quarterly amounts and non-GAAP disclosures within this filing shall be deemed unaudited.
Source:
2024 GlobeNewswire, Inc., source