þ
|
QUARTERLY REPORT PURSUANT TO SECTION 13
OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
For the quarterly period ended March 31, 2018
|
o
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TRANSITION REPORT PURSUANT TO
SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
For the transition period from to ,
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Maryland
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93-0295215
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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|
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10 Glenlake Parkway, Suite 600, South Tower
Atlanta, Georgia
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30328
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(Address or principal executive offices)
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(Zip Code)
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o
Large accelerated filer
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o
Accelerated filer
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þ
Non-accelerated filer (do not check if a smaller reporting company)
|
o
Smaller reporting company
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|
o
Emerging growth company
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TABLE OF CONTENTS
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Page
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PART I
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Item 1. Financial Statements
|
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
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Item 3. Quantitative and Qualitative Disclosures About Market Risk
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Item 4. Controls and Procedures
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PART II
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Item 1. Legal Proceedings
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Item 1A. Risk Factors
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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
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Item 3. Defaults Upon Senior Securities
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Item 4. Mine Safety Disclosures
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Item 5. Other Information
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Item 6. Exhibits
|
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SIGNATURES
|
|
|
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•
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adverse economic or real estate developments in our geographic markets or the temperature-controlled warehouse industry;
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•
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general economic conditions;
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•
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risks associated with the ownership of real estate and temperature-controlled warehouses in particular;
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•
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defaults or non-renewals of contracts with customers;
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•
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potential bankruptcy or insolvency of our customers;
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•
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uncertainty of revenues, given the nature of our customer contracts;
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•
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increased interest rates and operating costs;
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•
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our failure to obtain necessary outside financing;
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•
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risks related to, or restrictions contained in, our debt financing;
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•
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decreased storage rates or increased vacancy rates;
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•
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difficulties in identifying properties to be acquired and completing acquisitions;
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•
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risks related to expansions of existing properties and developments of new properties, including failure to meet budgeted or stabilized returns in respect thereof;
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•
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acquisition risks, including the failure of such acquisitions to perform in accordance with projections;
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•
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difficulties in expanding our operations into new markets, including international markets;
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•
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our failure to maintain our status as a REIT;
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•
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uncertainties and risks related to natural disasters and global climate change;
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•
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possible environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of properties presently or previously owned by us;
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•
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financial market fluctuations;
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•
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actions by our competitors and their increasing ability to compete with us;
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•
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labor and power costs;
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•
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changes in real estate and zoning laws and increases in real property tax rates;
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•
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the competitive environment in which we operate;
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•
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our relationship with our employees, including the occurrence of any work stoppages or any disputes under our collective bargaining agreements;
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•
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liabilities as a result of our participation in multi-employer pension plans;
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•
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the cost and time requirements as a result of our operation as a publicly traded REIT;
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•
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the concentration of ownership by funds affiliated with The Yucaipa Companies, the Goldman Sachs Group, Inc., and the Fortress Investment Group, LLC;
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•
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changes in foreign currency exchange rates; and
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•
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the impact of anti-takeover provisions in our constituent documents and under Maryland law, which could make an acquisition of us more difficult, limit attempts by our shareholders to replace our trustees and affect the price of our common shares.
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Americold Realty Trust and Subsidiaries
|
|||||||
Condensed Consolidated Balance Sheets
|
|||||||
(In thousands, except shares and per share amounts)
|
|||||||
|
March 31, 2018
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|
December 31, 2017
|
||||
|
Unaudited
|
|
|
||||
Assets
|
|
|
|
||||
Property, plant, and equipment:
|
|
|
|
||||
Land
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$
|
389,565
|
|
|
$
|
389,443
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Buildings and improvements
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1,887,206
|
|
|
1,865,727
|
|
||
Machinery and equipment
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549,908
|
|
|
555,453
|
|
||
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2,826,679
|
|
|
2,810,623
|
|
||
Accumulated depreciation and depletion
|
(1,030,240
|
)
|
|
(1,010,903
|
)
|
||
Property, plant, and equipment – net
|
1,796,439
|
|
|
1,799,720
|
|
||
Capitalized leases:
|
|
|
|
||||
Buildings and improvements
|
16,827
|
|
|
16,827
|
|
||
Machinery and equipment
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59,619
|
|
|
59,389
|
|
||
|
76,446
|
|
|
76,216
|
|
||
Accumulated depreciation
|
(42,996
|
)
|
|
(41,051
|
)
|
||
Capitalized leases – net
|
33,450
|
|
|
35,165
|
|
||
Cash and cash equivalents
|
193,868
|
|
|
48,873
|
|
||
Restricted cash
|
19,394
|
|
|
21,090
|
|
||
Accounts receivable – net of allowance of $5,804 and $5,309 at March 31, 2018 and December 31, 2017, respectively
|
178,649
|
|
|
200,006
|
|
||
Identifiable intangible assets – net
|
26,239
|
|
|
26,645
|
|
||
Goodwill
|
188,096
|
|
|
188,169
|
|
||
Investments in partially owned entities
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15,935
|
|
|
15,942
|
|
||
Other assets
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41,685
|
|
|
59,287
|
|
||
Total assets
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$
|
2,493,755
|
|
|
$
|
2,394,897
|
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Liabilities, Series B Preferred Shares and shareholders’ equity (deficit)
|
|
|
|
||||
Liabilities:
|
|
|
|
||||
Borrowings under revolving line of credit
|
$
|
—
|
|
|
$
|
—
|
|
Accounts payable and accrued expenses
|
232,737
|
|
|
241,259
|
|
||
Construction loan - net of deferred financing costs $179 at December 31, 2017
|
—
|
|
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19,492
|
|
||
Mortgage notes and term loans - net of discount and deferred financing costs of $15,935 and $31,996, in the aggregate, at March 31, 2018 and December 31, 2017, respectively
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1,398,227
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|
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1,721,958
|
|
||
Sale-leaseback financing obligations
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120,911
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|
121,516
|
|
||
Capitalized lease obligations
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36,078
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|
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38,124
|
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||
Unearned revenue
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18,200
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|
|
18,848
|
|
||
Pension and postretirement benefits
|
16,105
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|
|
16,756
|
|
||
Deferred tax liability - net
|
20,423
|
|
|
21,940
|
|
||
Multi-Employer pension plan withdrawal liability
|
9,086
|
|
|
9,134
|
|
||
Total liabilities
|
1,851,767
|
|
|
2,209,027
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|
||
Commitments and Contingencies (Note 13)
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|
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|
||||
Preferred shares of beneficial interest, $0.01 par value – authorized 375,000 Series B Cumulative Convertible Voting and Participating Preferred Shares; aggregate liquidation preference of $375,000; zero and 375,000 shares issued and outstanding at March 31, 2018 and December 31, 2017, respectively
|
—
|
|
|
372,794
|
|
||
Shareholders’ equity (deficit):
|
|
|
|
||||
Preferred shares of beneficial interest, $0.01 par value – authorized 1,000 Series A Cumulative Non-Voting Preferred Shares; aggregate liquidation preference of $125; zero and 125 shares issued and outstanding at March 31, 2018 and December 31, 2017, respectively
|
—
|
|
|
—
|
|
||
Common shares of beneficial interest, $0.01 par value – authorized 250,000,000 shares; 142,513,448 and 69,370,609 shares issued and outstanding at March 31, 2018 and December 31, 2017, respectively
|
1,425
|
|
|
694
|
|
||
Paid-in capital
|
1,255,094
|
|
|
394,082
|
|
||
Accumulated deficit and distributions in excess of net earnings
|
(613,363
|
)
|
|
(581,470
|
)
|
||
Accumulated other comprehensive loss
|
(1,168
|
)
|
|
(230
|
)
|
||
Total shareholders’ equity (deficit)
|
641,988
|
|
|
(186,924
|
)
|
||
Total liabilities, Series B Preferred Shares and shareholders’ equity (deficit)
|
$
|
2,493,755
|
|
|
$
|
2,394,897
|
|
|
|
|
|
||||
See accompanying notes to condensed consolidated financial statements.
|
|
|
|
Americold Realty Trust and Subsidiaries
|
||||||||||||||||||||||
Condensed Consolidated Statements of Shareholders’ Equity (Deficit) (Unaudited)
|
||||||||||||||||||||||
(In thousands, except shares)
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
|
Preferred Shares of
|
|
|
|
|
|
|
|||||||||||||||
|
Beneficial Interest
|
Common Shares of
|
|
Accumulated Deficit and Distributions in Excess of Net Earnings
|
Accumulated Other Comprehensive Loss
|
|
||||||||||||||||
|
Series A
|
Beneficial Interest
|
|
|
||||||||||||||||||
|
Number of Shares
|
Par Value
|
Number of Shares
|
Par Value
|
Paid-in Capital
|
|
||||||||||||||||
|
Total
|
|||||||||||||||||||||
Balance - December 31, 2017
|
125
|
|
$
|
—
|
|
69,370,609
|
|
$
|
694
|
|
$
|
394,082
|
|
$
|
(581,470
|
)
|
$
|
(230
|
)
|
$
|
(186,924
|
)
|
Net loss
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(8,639
|
)
|
—
|
|
(8,639
|
)
|
||||||
Other comprehensive loss
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(938
|
)
|
(938
|
)
|
||||||
Redemption and distributions on preferred shares of beneficial interest – Series A
|
(125
|
)
|
—
|
|
—
|
|
—
|
|
(133
|
)
|
(1
|
)
|
—
|
|
(134
|
)
|
||||||
Distributions on preferred shares of beneficial interest – Series B
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(1,817
|
)
|
—
|
|
(1,817
|
)
|
||||||
Distributions on common shares
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(21,436
|
)
|
—
|
|
(21,436
|
)
|
||||||
Stock-based compensation expense, net of exercise (Stock Options and Restricted Stock Units)
|
—
|
|
—
|
|
125,763
|
|
1
|
|
1,579
|
|
—
|
|
—
|
|
1,580
|
|
||||||
Stock-based compensation expense (modification of Restricted Stock Units)
|
—
|
|
—
|
|
—
|
|
—
|
|
2,600
|
|
—
|
|
—
|
|
2,600
|
|
||||||
Warrants exercise
|
—
|
|
—
|
|
6,426,818
|
|
64
|
|
(64
|
)
|
—
|
|
—
|
|
—
|
|
||||||
Issuance of common shares
|
—
|
|
—
|
|
33,350,000
|
|
334
|
|
484,571
|
|
—
|
|
—
|
|
484,905
|
|
||||||
Conversion of mezzanine Series B Preferred shares
|
—
|
|
—
|
|
33,240,258
|
|
332
|
|
372,459
|
|
—
|
|
—
|
|
372,791
|
|
||||||
Balance - March 31, 2018
|
—
|
|
$
|
—
|
|
142,513,448
|
|
$
|
1,425
|
|
1,255,094
|
|
$
|
(613,363
|
)
|
$
|
(1,168
|
)
|
$
|
641,988
|
|
Americold Realty Trust and Subsidiaries
|
|||||||
Condensed Consolidated Statements of Cash Flows (Unaudited)
|
|||||||
(In thousands)
|
|||||||
|
Three Months Ended March 31,
|
||||||
|
2018
|
|
2017
|
||||
Operating activities:
|
|
|
|
||||
Net (loss) income
|
$
|
(8,639
|
)
|
|
$
|
4,384
|
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
|
|
|
||||
Depreciation, depletion, and amortization
|
29,408
|
|
|
29,408
|
|
||
Amortization of deferred financing costs and debt discount
|
1,674
|
|
|
2,023
|
|
||
Amortization of below market leases
|
38
|
|
|
38
|
|
||
Loss on debt extinguishment and modification, non-cash
|
21,105
|
|
|
171
|
|
||
Foreign exchange (gain) loss
|
(680
|
)
|
|
2,773
|
|
||
Loss from partially owned entities
|
139
|
|
|
27
|
|
||
Stock-based compensation expense (Stock Options and Restricted Stock Units)
|
1,918
|
|
|
587
|
|
||
Stock-based compensation expense (modification of Restricted Stock Units)
|
2,600
|
|
|
—
|
|
||
Deferred tax benefit
|
(1,156
|
)
|
|
(748
|
)
|
||
Gain on sale of other assets
|
(137
|
)
|
|
(102
|
)
|
||
Provision for doubtful accounts receivable
|
103
|
|
|
158
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Accounts receivable
|
20,115
|
|
|
16,364
|
|
||
Accounts payable and accrued expenses
|
(23,810
|
)
|
|
(12,281
|
)
|
||
Other
|
7,683
|
|
|
2,882
|
|
||
Net cash provided by operating activities
|
50,361
|
|
|
45,684
|
|
||
Investing activities:
|
|
|
|
||||
Proceeds from the sale of property, plant, and equipment
|
352
|
|
|
107
|
|
||
Additions to property, plant, and equipment and intangible assets
|
(28,271
|
)
|
|
(52,347
|
)
|
||
Net cash used in investing activities
|
(27,919
|
)
|
|
(52,240
|
)
|
||
Financing activities:
|
|
|
|
||||
Redemption and distributions paid on preferred shares of beneficial interest – Series A
|
(134
|
)
|
|
—
|
|
||
Distributions paid on preferred shares of beneficial interest – Series B
|
(1,817
|
)
|
|
—
|
|
||
Distributions paid on common shares
|
(1,291
|
)
|
|
—
|
|
||
Proceeds from revolving line of credit
|
—
|
|
|
15,000
|
|
||
Repayment on revolving line of credit
|
—
|
|
|
(14,000
|
)
|
||
Payment on Multi-Employer pension plan withdrawal obligation
|
(114
|
)
|
|
—
|
|
||
Payment of underwriters' costs
|
(5,750
|
)
|
|
—
|
|
||
Reimbursement of underwriters' costs
|
5,750
|
|
|
—
|
|
||
Repayment of sale-leaseback financing obligations
|
(605
|
)
|
|
(487
|
)
|
||
Repayment of capitalized lease obligations
|
(2,374
|
)
|
|
(1,786
|
)
|
||
Payment of debt issuance costs
|
(8,676
|
)
|
|
(2,653
|
)
|
||
Repayment of term loan, mortgage notes and construction loans
|
(883,556
|
)
|
|
(7,375
|
)
|
||
Proceeds from term loan
|
525,000
|
|
|
—
|
|
||
Net proceeds from initial public offering
|
493,557
|
|
|
—
|
|
||
Proceeds from construction loans
|
1,097
|
|
|
—
|
|
||
Net cash provided by (used in) financing activities
|
121,087
|
|
|
(11,301
|
)
|
||
Net increase (decrease) in cash, cash equivalents and restricted cash
|
143,529
|
|
|
(17,857
|
)
|
||
Effect of foreign currency translation on cash, cash equivalents and restricted cash
|
(230
|
)
|
|
704
|
|
||
Cash, cash equivalents and restricted cash:
|
|
|
|
||||
Beginning of period
|
69,963
|
|
|
62,930
|
|
||
End of period
|
$
|
213,262
|
|
|
$
|
45,777
|
|
Supplemental disclosures of cash flows information:
|
|
|
|
||||
Acquisition of fixed assets under capitalized lease obligations
|
$
|
330
|
|
|
$
|
3,569
|
|
Interest paid – net of amounts capitalized and defeasement costs
|
$
|
23,068
|
|
|
$
|
26,284
|
|
Income taxes paid – net of refunds
|
$
|
1,262
|
|
|
$
|
1,415
|
|
Acquisition of property, plant, and equipment on accrual
|
$
|
18,210
|
|
|
$
|
3,810
|
|
|
March 31, 2018
|
||||||||
Condensed consolidated results of operations
|
CMAL
|
CMAH
|
Total
|
||||||
|
(In thousands)
|
||||||||
Revenues
|
$
|
9,741
|
|
$
|
2,867
|
|
$
|
12,608
|
|
Operating income
|
23
|
|
84
|
|
107
|
|
|||
Net (loss) income
|
$
|
(2
|
)
|
$
|
71
|
|
$
|
69
|
|
Company’s loss from partially owned entities
|
$
|
(121
|
)
|
$
|
(18
|
)
|
$
|
(139
|
)
|
|
March 31, 2017
|
||||||||
Condensed consolidated results of operations
|
CMAL
|
CMAH
|
Total
|
||||||
|
(In thousands)
|
||||||||
Revenues
|
$
|
9,354
|
|
$
|
2,216
|
|
$
|
11,570
|
|
Operating (loss) income
|
(144
|
)
|
172
|
|
28
|
|
|||
Net (loss) income
|
$
|
(139
|
)
|
$
|
88
|
|
$
|
(51
|
)
|
Company’s (loss) income from partially owned entities
|
$
|
(70
|
)
|
$
|
43
|
|
$
|
(27
|
)
|
(1)
|
L = one-month LIBOR; BBSY= Bank Bill Swap Bid Rate (applicable in Australia); BKBM = Bank Bill Reference Rate (applicable in New Zealand).
|
•
|
a maximum leverage ratio of less than or equal to
60%
of our total asset value;
|
•
|
a minimum borrowing base coverage ratio of greater than or equal to
1.00
to
1.00
;
|
•
|
a minimum pro forma fixed charge coverage ratio of greater than or equal to
1.40
to
1.00
increasing to
1.50
to
1.00
in the first quarter of 2018;
|
•
|
a minimum borrowing base debt service coverage ratio of greater than or equal to
2.00
to
1.00
;
|
•
|
a minimum tangible net worth requirement of greater than or equal to
$900 million
plus
70%
of any future net equity proceeds following the completion of the IPO transactions; and
|
•
|
a maximum recourse secured debt ratio of less than or equal to
20%
of our total asset value.
|
As of March 31, 2018:
|
(In thousands)
|
||
Year 1
|
$
|
24,069
|
|
Year 2
|
25,199
|
|
|
Year 3
|
614,956
|
|
|
Year 4
|
7,102
|
|
|
Year 5
|
482,381
|
|
|
Thereafter
|
260,456
|
|
|
Aggregate principal amount of debt
|
1,414,163
|
|
|
Less unamortized discount and deferred financing costs
|
(15,936
|
)
|
|
Total debt net of discount and deferred financing costs
|
$
|
1,398,227
|
|
|
Three Months Ended March 31,
|
||||||
|
2018
|
|
2017
|
||||
|
(In thousands)
|
||||||
(Gain) loss recognized as OCI, net of tax (effective portion)
|
$
|
(36
|
)
|
|
$
|
348
|
|
Loss reclassified from AOCI into interest expense, net of tax
|
365
|
|
|
376
|
|
|
|
|
|
Fair Value
|
||||||
|
|
Fair Value Hierarchy
|
|
March 31, 2018
|
|
December 31, 2017
|
||||
|
|
|
|
(In thousands)
|
||||||
Measured at fair value on a recurring basis:
|
|
|
|
|
|
|
||||
Cash and cash equivalents
|
|
Level 1
|
|
$
|
193,868
|
|
|
$
|
48,873
|
|
Restricted cash
|
|
Level 1
|
|
19,394
|
|
|
21,090
|
|
||
Interest rate swap liability
|
|
Level 2
|
|
2,399
|
|
|
2,463
|
|
||
Measured at fair value on a non-recurring basis:
|
|
|
|
|
|
|
||||
Long-lived assets written down:
|
|
|
|
|
|
|
||||
Property, plant and equipment
|
|
Level 3
|
|
$
|
—
|
|
|
$
|
2,576
|
|
Disclosed at fair value:
|
|
|
|
|
|
|
||||
Mortgage notes, term loans and construction loan
|
|
Level 3
|
|
$
|
1,435,944
|
|
|
$
|
1,807,199
|
|
Three Months Ended March 31, 2018
|
||||||||||||||
Month Declared
|
|
Dividend Per Share
|
|
Distributions Paid or Accrued
|
|
Month Paid
|
||||||||
|
|
|
|
Common Shares
|
|
Series B Preferred Shares
|
|
|
||||||
(In thousands, except per share amounts)
|
||||||||||||||
January
(a)
|
|
$
|
0.019
|
|
|
$
|
1,291
|
|
|
$
|
619
|
|
(b)
|
January
|
March
|
|
0.140
|
|
|
20,145
|
|
|
—
|
|
|
April
|
|||
|
|
|
|
21,436
|
|
|
|
|
|
|||||
Series B Preferred Shares - Fixed Dividend
|
|
|
|
1,198
|
|
(c)
|
|
|||||||
Total distributions paid to Series B Preferred Shares holders
|
|
$
|
1,817
|
|
|
|
(a)
|
Stub period dividend paid to shareholders of record prior to the IPO.
|
(b)
|
Last Participating Dividend paid to holders of Series B Preferred Shares in connection with the conversion to common shares on the IPO date.
|
(c)
|
Last Fixed Dividend paid to holders of Series B Preferred Shares in connection with the conversion to common shares on the IPO date.
|
Three Months Ended March 31, 2017
|
||||||||||||||
Month Declared
|
|
Dividend Per Share
|
|
Distributions Paid or Accrued
|
|
Month Paid
|
||||||||
|
|
|
|
Common Shares
|
|
Series B Preferred Shares
|
|
|
||||||
(In thousands, except per share amounts)
|
||||||||||||||
March
|
|
$
|
0.073
|
|
|
$
|
5,053
|
|
|
$
|
2,421
|
|
(a)
|
April
|
|
|
|
|
|
|
|
|
|
||||||
Series B Preferred Shares - Fixed Dividend
|
|
4,688
|
|
|
|
|||||||||
Total distributions paid or accrued to Series B Preferred Shares holders
|
|
$
|
7,109
|
|
|
|
(a)
|
Participating Dividend.
|
March 31,
|
Grantee Type
|
# of
Restricted Stock Units Granted |
Vesting
Period |
Grant Date
Fair Value (in thousands) |
||
2018
|
Trustee group
|
373,438
|
1-3 years
|
$
|
5,975
|
|
2018
|
Employee group
|
897,125
|
2-4 years
|
$
|
12,677
|
|
2017
|
Trustee group
|
18,348
|
2-3 years
|
$
|
199
|
|
2017
|
Employee group
|
71,428
|
5 years
|
$
|
959
|
|
Options
|
Shares
(In thousands) |
Weighted-Average Exercise Price
|
Weighted-Average Remaining Contractual Terms (Years)
|
|||
Outstanding as of December 31, 2017
|
5,478
|
|
$
|
9.72
|
|
6.0
|
Granted
|
—
|
|
—
|
|
|
|
Exercised
|
(95
|
)
|
7.85
|
|
|
|
Forfeited or expired
|
(70
|
)
|
9.81
|
|
|
|
Outstanding as of March 31, 2018
|
5,313
|
|
9.76
|
|
5.8
|
|
|
|
|
|
|||
Exercisable as of March 31, 2018
|
3,666
|
|
$
|
9.73
|
|
4.9
|
Outstanding as of December 31, 2016
|
6,313
|
|
$
|
9.72
|
|
6.8
|
Granted
|
—
|
|
—
|
|
|
|
Exercised
|
—
|
|
—
|
|
|
|
Forfeited or expired
|
(286
|
)
|
9.81
|
|
|
|
Outstanding as of March 31, 2017
|
6,027
|
|
9.71
|
|
6.3
|
|
|
|
|
|
|||
Exercisable as of March 31, 2017
|
3,537
|
|
$
|
9.64
|
|
4.7
|
|
Three Months Ended March 31, 2018
|
||||||||||||||
|
Retirement Income Plan
|
National Service-Related Pension Plan
|
Other
Post-Retirement Benefits |
Superannuation
|
Total
|
||||||||||
Components of net periodic benefit cost:
|
(In thousands)
|
||||||||||||||
Service cost
|
$
|
8
|
|
$
|
19
|
|
$
|
—
|
|
$
|
58
|
|
$
|
85
|
|
Interest cost
|
354
|
|
300
|
|
5
|
|
27
|
|
686
|
|
|||||
Expected return on plan assets
|
(512
|
)
|
(342
|
)
|
—
|
|
(45
|
)
|
(899
|
)
|
|||||
Amortization of net loss
|
311
|
|
179
|
|
—
|
|
—
|
|
490
|
|
|||||
Amortization of prior service cost
|
—
|
|
—
|
|
—
|
|
8
|
|
8
|
|
|||||
Net pension benefit cost
|
$
|
161
|
|
$
|
156
|
|
$
|
5
|
|
$
|
48
|
|
$
|
370
|
|
|
Three Months Ended March 31, 2017
|
||||||||||||||
|
Retirement Income Plan
|
National Service-Related Pension Plan
|
Other
Post-Retirement Benefits |
Superannuation
|
Total
|
||||||||||
Components of net periodic benefit cost:
|
(In thousands)
|
||||||||||||||
Service cost
|
$
|
16
|
|
$
|
126
|
|
$
|
—
|
|
$
|
58
|
|
$
|
200
|
|
Interest cost
|
396
|
|
314
|
|
6
|
|
30
|
|
746
|
|
|||||
Expected return on plan assets
|
(439
|
)
|
(294
|
)
|
—
|
|
(43
|
)
|
(776
|
)
|
|||||
Amortization of net loss
|
472
|
|
204
|
|
—
|
|
—
|
|
676
|
|
|||||
Amortization of prior service cost
|
—
|
|
53
|
|
—
|
|
—
|
|
53
|
|
|||||
Effect of settlement
|
173
|
|
59
|
|
—
|
|
—
|
|
232
|
|
|||||
Net pension benefit cost
|
$
|
618
|
|
$
|
462
|
|
$
|
6
|
|
$
|
45
|
|
$
|
1,131
|
|
|
Three Months Ended March 31,
|
||||||
|
2018
|
|
2017
|
||||
|
(In thousands)
|
||||||
Pension and other postretirement benefits:
|
|
|
|
||||
Balance at beginning of period, net of tax
|
$
|
(7,126
|
)
|
|
$
|
(12,880
|
)
|
Gain arising during the period
|
491
|
|
|
676
|
|
||
Less: Tax expense
|
—
|
|
|
—
|
|
||
Net gain arising during the period
|
491
|
|
|
676
|
|
||
Amortization of prior service cost
(1)
|
8
|
|
|
53
|
|
||
Less: Tax expense
|
—
|
|
|
—
|
|
||
Net amount reclassified from AOCI to net loss
|
8
|
|
|
53
|
|
||
Other comprehensive income, net of tax
|
499
|
|
|
729
|
|
||
Balance at end of period, net of tax
|
(6,627
|
)
|
|
(12,151
|
)
|
||
Foreign currency translation adjustments:
|
|
|
|
||||
Balance at beginning of period, net of tax
|
8,318
|
|
|
3,874
|
|
||
(Loss) gain on foreign currency translation
|
(1,473
|
)
|
|
3,235
|
|
||
Less: Tax expense/(Tax benefit)
|
—
|
|
|
—
|
|
||
Net (loss)/gain on foreign currency translation
|
(1,473
|
)
|
|
3,235
|
|
||
Balance at end of period, net of tax
|
6,845
|
|
|
7,109
|
|
||
Cash flow hedge derivatives:
|
|
|
|
||||
Balance at beginning of period, net of tax
|
(1,422
|
)
|
|
(1,538
|
)
|
||
Unrealized loss on cash flow hedge derivatives
|
(314
|
)
|
|
(869
|
)
|
||
Less: Tax expense/(Tax benefit)
|
15
|
|
|
(145
|
)
|
||
Net loss on cash flow hedge derivatives
|
(329
|
)
|
|
(724
|
)
|
||
Net amount reclassified from AOCI to net loss (interest expense)
|
365
|
|
|
376
|
|
||
Balance at end of period, net of tax
|
(1,386
|
)
|
|
(1,886
|
)
|
||
|
|
|
|
||||
Accumulated other comprehensive loss
|
$
|
(1,168
|
)
|
|
$
|
(6,928
|
)
|
(1)
|
Amounts reclassified from AOCI for pension liabilities are recorded in selling, general, and administrative expenses in the condensed consolidated statements of operations.
|
•
|
Warehouse.
Our primary source of revenues consists of rent and storage and warehouse services fees. Our rent and storage and warehouse services revenues are the key drivers of our financial performance. Rent and storage revenues consist of recurring, periodic charges related to the storage of frozen and perishable food and other products in our warehouses. We also provide these customers with a wide array of handling and other warehouse services, such as (1) receipt, handling and placement of products into our warehouses for storage and preservation, (2) retrieval of products from storage upon customer request, (3) blast freezing, which involves the rapid freezing of non-frozen products, including individual quick freezing for agricultural produce and seafood, (4) case-picking, which involves selecting product cases to build customized pallets, (5) kitting and repackaging, which
|
•
|
Third-Party Managed.
We receive management and incentive fees, as well as reimbursement of substantially all expenses, for warehouses and logistics services that we manage on behalf of third-party owners/customers. Cost of operations for our third-party managed segment are reimbursed on a pass-through basis (typically within two weeks), with all reimbursements, plus an applicable mark-up, recognized as revenues under the relevant accounting guidance.
|
•
|
Transportation.
We charge transportation fees, including fuel surcharges, to our customers for whom we arrange the transportation of their products. Cost of operations for our transportation segment consist primarily of third-party carrier charges, which are impacted by factors affecting those carriers.
|
•
|
Quarry
. In addition to our primary business segments, we own a limestone quarry in Carthage, Missouri. Revenues are generated from the sale of limestone mined at our quarry. Cost of operations for our quarry consist primarily of labor, equipment, fuel and explosives.
|
|
Three Months Ended March 31,
|
||||||
|
2018
|
|
2017
|
||||
|
(In thousands)
|
||||||
Segment revenues:
|
|
|
|
||||
Warehouse
|
$
|
286,517
|
|
|
$
|
275,807
|
|
Third-Party Managed
|
63,876
|
|
|
58,367
|
|
||
Transportation
|
38,345
|
|
|
36,181
|
|
||
Quarry
|
2,403
|
|
|
2,559
|
|
||
Total revenues
|
391,141
|
|
|
372,914
|
|
||
|
|
|
|
||||
Segment contribution:
|
|
|
|
||||
Warehouse
|
89,570
|
|
|
83,520
|
|
||
Third-Party Managed
|
3,777
|
|
|
2,988
|
|
||
Transportation
|
3,594
|
|
|
3,553
|
|
||
Quarry
|
346
|
|
|
903
|
|
||
Total segment contribution
|
97,287
|
|
|
90,964
|
|
||
|
|
|
|
||||
Reconciling items:
|
|
|
|
||||
Depreciation, depletion, and amortization
|
(29,408
|
)
|
|
(29,408
|
)
|
||
Selling, general and administrative expense
|
(31,947
|
)
|
|
(24,770
|
)
|
||
Loss from partially owned entities
|
(139
|
)
|
|
(27
|
)
|
||
Interest expense
|
(24,495
|
)
|
|
(27,727
|
)
|
||
Interest income
|
623
|
|
|
257
|
|
||
Loss on debt extinguishment and modification
|
(21,385
|
)
|
|
(171
|
)
|
||
Foreign currency exchange gain (loss)
|
680
|
|
|
(2,773
|
)
|
||
Other income (expense), net
|
56
|
|
|
(467
|
)
|
||
(Loss) income before income tax
|
$
|
(8,728
|
)
|
|
$
|
5,878
|
|
|
Three Months Ended
|
||||
|
March 31, 2018
|
|
March 31, 2017
|
||
Series B Convertible Preferred Stock
|
8,494,733
|
|
|
33,240,261
|
|
Common share warrants
|
1,642,409
|
|
|
3,145,575
|
|
Employee stock options
|
5,347,188
|
|
|
6,217,966
|
|
Restricted stock units
|
611,927
|
|
|
565,093
|
|
|
16,096,257
|
|
|
43,168,895
|
|
|
Three Months Ended March 31, 2018
|
|||||||||||||||||
|
United States
|
Australia
|
New Zealand
|
Argentina
|
Canada
|
Total
|
||||||||||||
|
(In thousands)
|
|||||||||||||||||
Warehouse rent and storage
|
$
|
104,360
|
|
$
|
10,339
|
|
$
|
3,872
|
|
$
|
1,553
|
|
$
|
—
|
|
$
|
120,124
|
|
Warehouse services
|
125,248
|
|
30,438
|
|
4,117
|
|
987
|
|
—
|
|
160,790
|
|
||||||
Third-party managed
|
56,015
|
|
3,249
|
|
—
|
|
—
|
|
4,562
|
|
63,826
|
|
||||||
Transportation
|
23,064
|
|
14,199
|
|
204
|
|
878
|
|
—
|
|
38,345
|
|
||||||
Quarry
|
2,398
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2,398
|
|
||||||
Total revenues
(1)
|
311,085
|
|
58,225
|
|
8,193
|
|
3,418
|
|
4,562
|
|
385,483
|
|
||||||
Lease revenue
(2)
|
5,658
|
|
—
|
|
—
|
|
—
|
|
—
|
|
5,658
|
|
||||||
Total revenues from contracts with all customers
|
$
|
316,743
|
|
$
|
58,225
|
|
$
|
8,193
|
|
$
|
3,418
|
|
$
|
4,562
|
|
$
|
391,141
|
|
|
Three Months Ended March 31, 2017
|
|||||||||||||||||
|
United States
|
Australia
|
New Zealand
|
Argentina
|
Canada
|
Total
|
||||||||||||
|
(In thousands)
|
|||||||||||||||||
Warehouse rent and storage
|
$
|
98,706
|
|
$
|
9,384
|
|
$
|
4,425
|
|
$
|
2,358
|
|
$
|
—
|
|
$
|
114,873
|
|
Warehouse services
|
123,549
|
|
28,128
|
|
3,497
|
|
967
|
|
—
|
|
156,141
|
|
||||||
Third-party managed
|
52,486
|
|
1,504
|
|
—
|
|
—
|
|
4,327
|
|
58,317
|
|
||||||
Transportation
|
21,272
|
|
13,269
|
|
199
|
|
1,441
|
|
—
|
|
36,181
|
|
||||||
Quarry
|
2,553
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2,553
|
|
||||||
Total revenues
(1)
|
298,566
|
|
52,285
|
|
8,121
|
|
4,766
|
|
4,327
|
|
368,065
|
|
||||||
Lease revenue
(2)
|
4,849
|
|
—
|
|
—
|
|
—
|
|
—
|
|
4,849
|
|
||||||
Total revenues from contracts with all customers
|
$
|
303,415
|
|
$
|
52,285
|
|
$
|
8,121
|
|
$
|
4,766
|
|
$
|
4,327
|
|
$
|
372,914
|
|
(1)
|
Revenues are within the scope of ASC 606: Revenue From Contracts With Customers
.
Elements of contracts or arrangements that are in the scope of other standards (e.g., leases) are separated and accounted for under those standards.
|
(2)
|
Revenues are within the scope of Topic 840, Leases.
|
|
|
March 31, 2018 compared to
March 31, 2017 |
|||||||
|
|
Average foreign
exchange rate used to adjust operating results for the three months ended March 31, 2018 (1) |
|
Foreign exchange
rates as of March 31, 2018 |
|
Foreign exchange
rates as of March 31, 2017 |
|||
Australian dollar
|
|
0.758
|
|
|
0.769
|
|
|
0.764
|
|
New Zealand dollar
|
|
0.711
|
|
|
0.723
|
|
|
0.700
|
|
Argentinian peso
|
|
0.063
|
|
|
0.050
|
|
|
0.065
|
|
Canadian dollar
|
|
0.756
|
|
|
0.775
|
|
|
0.751
|
|
(1)
|
Represents the relevant average foreign exchange rates in effect in the comparable prior period applied to the activity for the current period. The average foreign currency exchange rates we apply to our operating results are derived from third party reporting sources for the periods indicated.
|
|
March 31, 2018
|
Total Warehouses
|
158
|
Same Store Warehouses
(1)
|
138
|
Non-Same Store and Managed Warehouses
|
20
|
(1)
|
During the first quarter of 2018, one of the warehouses in our portfolio was reclassified from the same store to the non-same store population in anticipation of our exit from the lease of such warehouse facility in the second quarter of 2018.
|
|
Three months ended March 31,
|
|
Change
|
||||||||||||||
|
2018 actual
|
|
2018 constant currency
(1)
|
|
2017 actual
|
|
Actual
|
|
Constant currency
|
||||||||
|
(Dollars in thousands)
|
|
|
|
|
||||||||||||
Rent and storage
|
$
|
125,727
|
|
|
$
|
125,676
|
|
|
$
|
119,666
|
|
|
5.1
|
%
|
|
5.0
|
%
|
Warehouse services
|
160,790
|
|
|
159,881
|
|
|
156,141
|
|
|
3.0
|
%
|
|
2.4
|
%
|
|||
Total warehouse segment revenues
|
286,517
|
|
|
285,557
|
|
|
275,807
|
|
|
3.9
|
%
|
|
3.5
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
||||||||
Power
|
16,114
|
|
|
16,148
|
|
|
15,428
|
|
|
4.4
|
%
|
|
4.7
|
%
|
|||
Other facilities costs
(2)
|
26,782
|
|
|
26,786
|
|
|
26,258
|
|
|
2.0
|
%
|
|
2.0
|
%
|
|||
Labor
|
128,336
|
|
|
127,670
|
|
|
124,101
|
|
|
3.4
|
%
|
|
2.9
|
%
|
|||
Other services costs
(3)
|
25,715
|
|
|
25,610
|
|
|
26,500
|
|
|
(3.0
|
)%
|
|
(3.4
|
)%
|
|||
Total warehouse segment cost of operations
|
196,947
|
|
|
196,214
|
|
|
192,287
|
|
|
2.4
|
%
|
|
2.0
|
%
|
|||
Warehouse segment contribution (NOI)
|
$
|
89,570
|
|
|
$
|
89,343
|
|
|
$
|
83,520
|
|
|
7.2
|
%
|
|
7.0
|
%
|
|
|
|
|
|
|
|
|
|
|
||||||||
Warehouse rent and storage contribution (NOI)
(4)
|
$
|
82,831
|
|
|
$
|
82,742
|
|
|
$
|
77,980
|
|
|
6.2
|
%
|
|
6.1
|
%
|
Warehouse services contribution (NOI)
(5)
|
$
|
6,739
|
|
|
$
|
6,601
|
|
|
$
|
5,540
|
|
|
21.6
|
%
|
|
19.2
|
%
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total warehouse segment margin
|
31.3
|
%
|
|
31.3
|
%
|
|
30.3
|
%
|
|
100 bps
|
|
|
100 bps
|
|
|||
Rent and storage margin
(6)
|
65.9
|
%
|
|
65.8
|
%
|
|
65.2
|
%
|
|
70 bps
|
|
|
60 bps
|
|
|||
Warehouse services margin
(7)
|
4.2
|
%
|
|
4.1
|
%
|
|
3.5
|
%
|
|
70 bps
|
|
|
60 bps
|
|
(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)
|
Includes real estate rent expense of
$3.7 million and $3.7 million
for the three months ended March 31, 2018 and 2017, respectively.
|
(3)
|
Includes non-real estate rent expense of
$3.4 million and $3.4 million
for the three months ended March 31, 2018 and 2017, respectively.
|
(4)
|
Calculated as rent and storage revenues less power and other facilities costs.
|
(5)
|
Calculated as warehouse services revenues less labor and other services costs.
|
(6)
|
Calculated as warehouse rent and storage contribution (NOI) divided by warehouse rent and storage revenues.
|
(7)
|
Calculated as warehouse services contribution (NOI) divided by warehouse services revenues.
|
|
Three Months Ended March 31,
|
|
Change
|
||||||||||||||
|
2018 actual
|
|
2018 constant currency
(1)
|
|
2017 actual
|
|
Actual
|
|
Constant currency
|
||||||||
Same store revenues:
|
(Dollars in thousands)
|
|
|
|
|
||||||||||||
Rent and storage
|
$
|
122,977
|
|
|
$
|
122,926
|
|
|
$
|
116,661
|
|
|
5.4
|
%
|
|
5.4
|
%
|
Warehouse services
|
157,502
|
|
|
156,594
|
|
|
152,999
|
|
|
2.9
|
%
|
|
2.3
|
%
|
|||
Total same store revenues
|
280,479
|
|
|
279,520
|
|
|
269,660
|
|
|
4.0
|
%
|
|
3.7
|
%
|
|||
Same store cost of operations:
|
|
|
|
|
|
|
|
|
|
||||||||
Power
|
15,659
|
|
|
15,694
|
|
|
14,729
|
|
|
6.3
|
%
|
|
6.6
|
%
|
|||
Other facilities costs
|
25,286
|
|
|
25,290
|
|
|
24,418
|
|
|
3.6
|
%
|
|
3.6
|
%
|
|||
Labor
|
125,435
|
|
|
124,768
|
|
|
121,022
|
|
|
3.6
|
%
|
|
3.1
|
%
|
|||
Other services costs
|
24,973
|
|
|
24,869
|
|
|
25,785
|
|
|
(3.1
|
)%
|
|
(3.6
|
)%
|
|||
Total same store cost of operations
|
$
|
191,353
|
|
|
$
|
190,621
|
|
|
$
|
185,954
|
|
|
2.9
|
%
|
|
2.5
|
%
|
|
|
|
|
|
|
|
|
|
|
||||||||
Same store contribution (NOI)
|
$
|
89,126
|
|
|
$
|
88,899
|
|
|
$
|
83,706
|
|
|
6.5
|
%
|
|
6.2
|
%
|
Same store rent and storage contribution (NOI)
(2)
|
$
|
82,032
|
|
|
$
|
81,942
|
|
|
$
|
77,514
|
|
|
5.8
|
%
|
|
5.7
|
%
|
Same store services contribution (NOI)
(3)
|
$
|
7,094
|
|
|
$
|
6,957
|
|
|
$
|
6,192
|
|
|
14.6
|
%
|
|
12.4
|
%
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total same store margin
|
31.8
|
%
|
|
31.8
|
%
|
|
31.0
|
%
|
|
80 bps
|
|
|
80 bps
|
|
|||
Same store rent and storage margin
(4)
|
66.7
|
%
|
|
66.7
|
%
|
|
66.4
|
%
|
|
30 bps
|
|
|
30 bps
|
|
|||
Same store services margin
(5)
|
4.5
|
%
|
|
4.4
|
%
|
|
4.0
|
%
|
|
50 bps
|
|
|
40 bps
|
|
|||
|
|
|
|
|
|
|
|
|
|
||||||||
Non-same store revenues:
|
|
|
|
|
|
|
|
|
|
||||||||
Rent and storage
|
$
|
2,750
|
|
|
$
|
2,750
|
|
|
$
|
3,005
|
|
|
(8.5
|
)%
|
|
(8.5
|
)%
|
Warehouse services
|
3,288
|
|
|
3,287
|
|
|
3,142
|
|
|
4.6
|
%
|
|
4.6
|
%
|
|||
Total non-same store revenues
|
6,038
|
|
|
6,037
|
|
|
6,147
|
|
|
(1.8
|
)%
|
|
(1.8
|
)%
|
|||
Non-same store cost of operations:
|
|
|
|
|
|
|
|
|
|
||||||||
Power
|
455
|
|
|
454
|
|
|
699
|
|
|
(34.9
|
)%
|
|
(35.1
|
)%
|
|||
Other facilities costs
|
1,496
|
|
|
1,496
|
|
|
1,840
|
|
|
(18.7
|
)%
|
|
(18.7
|
)%
|
|||
Labor
|
2,902
|
|
|
2,902
|
|
|
3,079
|
|
|
(5.7
|
)%
|
|
(5.7
|
)%
|
|||
Other services costs
|
741
|
|
|
741
|
|
|
715
|
|
|
3.6
|
%
|
|
3.6
|
%
|
|||
Total non-same store cost of operations
|
$
|
5,594
|
|
|
$
|
5,593
|
|
|
$
|
6,333
|
|
|
(11.7
|
)%
|
|
(11.7
|
)%
|
|
|
|
|
|
|
|
|
|
|
||||||||
Non-same store contribution (NOI)
|
$
|
444
|
|
|
$
|
444
|
|
|
$
|
(186
|
)
|
|
(338.7
|
)%
|
|
(338.7
|
)%
|
Non-same store rent and storage contribution (NOI)
(2)
|
$
|
799
|
|
|
$
|
800
|
|
|
$
|
466
|
|
|
71.5
|
%
|
|
71.7
|
%
|
Non-same store services contribution (NOI)
(3)
|
$
|
(355
|
)
|
|
$
|
(356
|
)
|
|
$
|
(652
|
)
|
|
(45.6
|
)%
|
|
(45.4
|
)%
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total warehouse segment revenues
|
$
|
286,517
|
|
|
$
|
285,557
|
|
|
$
|
275,807
|
|
|
3.9
|
%
|
|
3.5
|
%
|
Total warehouse cost of operations
|
$
|
196,947
|
|
|
$
|
196,214
|
|
|
$
|
192,287
|
|
|
2.4
|
%
|
|
2.0
|
%
|
Total warehouse segment contribution
|
$
|
89,570
|
|
|
$
|
89,343
|
|
|
$
|
83,520
|
|
|
7.2
|
%
|
|
7.0
|
%
|
(1)
|
The adjustments from our U.S. GAAP operating results to calculate our operating results on a constant currency basis is the effect of changes in foreign currency exchange rates relative to the comparable prior period.
|
(2)
|
Calculated as rent and storage revenues less power and other facilities costs.
|
(3)
|
Calculated as warehouse services revenues less labor and other services costs.
|
(4)
|
Calculated as same store rent and storage contribution (NOI) divided by same store rent and storage revenues.
|
(5)
|
Calculated as same store warehouse services contribution (NOI) divided by same store warehouse services revenues.
|
|
Three Months Ended March 31,
|
|
Change
|
|||||||
|
2018
|
|
2017
|
|
||||||
Same store rent and storage:
|
|
|
|
|
|
|||||
Occupancy
(1)
|
|
|
|
|
|
|||||
Average occupied pallets (in thousands)
|
2,375
|
|
|
2,416
|
|
|
(1.7
|
)%
|
||
Average physical pallet positions (in thousands)
|
3,112
|
|
|
3,096
|
|
|
0.5
|
%
|
||
Occupancy percentage
|
76.3
|
%
|
|
78.0
|
%
|
|
-170 bps
|
|
||
Same store rent and storage revenues per occupied pallet
|
$
|
51.77
|
|
|
$
|
48.30
|
|
|
7.2
|
%
|
Constant currency same store rent and storage revenues per occupied pallet
|
$
|
51.75
|
|
|
$
|
48.30
|
|
|
7.1
|
%
|
|
|
|
|
|
|
|||||
Same store warehouse services:
|
|
|
|
|
|
|||||
Throughput pallets (in thousands)
|
6,499
|
|
|
6,657
|
|
|
(2.4
|
)%
|
||
Same store warehouse services revenues per throughput pallet
|
$
|
24.24
|
|
|
$
|
22.98
|
|
|
5.5
|
%
|
Constant currency same store warehouse services revenues per throughput pallet
|
$
|
24.10
|
|
|
$
|
22.98
|
|
|
4.9
|
%
|
|
|
|
|
|
|
|||||
Non-same store rent and storage:
|
|
|
|
|
|
|||||
Occupancy
|
|
|
|
|
|
|||||
Average occupied pallets (in thousands)
|
72
|
|
|
53
|
|
|
35.8
|
%
|
||
Average physical pallet positions (in thousands)
|
100
|
|
|
88
|
|
|
13.6
|
%
|
||
Occupancy percentage
|
71.6
|
%
|
|
61.0
|
%
|
|
|
|||
|
|
|
|
|
|
|||||
Non-same store warehouse services:
|
|
|
|
|
|
|||||
Throughput pallets (in thousands)
|
147
|
|
|
142
|
|
|
3.5
|
%
|
(1)
|
We define average physical occupancy as the average number of occupied pallets divided by the estimated number of average physical pallet positions in our warehouses for the applicable period. We estimate the number of physical pallet positions by taking into account actual racked space and by estimating unracked space on an as-if racked basis. We base this estimate on a formula utilizing the total cubic feet of each room within the warehouse that is unracked divided by the volume of an assumed rack space that is consistent with the characteristics of the relevant warehouse. On a warehouse by warehouse basis, rack space generally ranges from three to four feet depending upon the type of facility and the nature of the customer goods stored therein. The number of our pallet positions is reviewed and updated quarterly, taking into account changes in racking configurations and room utilization.
|
|
Three Months Ended March 31,
|
|
Change
|
||||||||||||||
|
2018 actual
|
|
2018 constant currency
(1)
|
|
2017 actual
|
|
Actual
|
|
Constant currency
|
||||||||
Number of managed sites
|
12
|
|
|
|
|
12
|
|
|
|
|
|
||||||
|
(Dollars in thousands)
|
|
|
|
|
||||||||||||
Third-party managed revenues
|
$
|
63,876
|
|
|
$
|
63,522
|
|
|
$
|
58,367
|
|
|
9.4
|
%
|
|
8.8
|
%
|
Third-party managed cost of operations
|
60,099
|
|
|
59,823
|
|
|
55,379
|
|
|
8.5
|
%
|
|
8.0
|
%
|
|||
Third-party managed segment contribution
|
$
|
3,777
|
|
|
$
|
3,699
|
|
|
$
|
2,988
|
|
|
26.4
|
%
|
|
23.8
|
%
|
|
|
|
|
|
|
|
|
|
|
||||||||
Third-party managed margin
|
5.9
|
%
|
|
5.8
|
%
|
|
5.1
|
%
|
|
80 bps
|
|
|
70 bps
|
|
(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.
|
|
Three Months Ended March 31,
|
|
Change
|
||||||||||||||
|
2018 actual
|
|
2018 constant currency
(1)
|
|
2017 actual
|
|
Actual
|
|
Constant currency
|
||||||||
|
(Dollars in thousands)
|
|
|
|
|
||||||||||||
Transportation revenues
|
$
|
38,345
|
|
|
$
|
38,070
|
|
|
$
|
36,181
|
|
|
6.0
|
%
|
|
5.2
|
%
|
|
|
|
|
|
|
|
|
|
|
||||||||
Brokered transportation
|
28,121
|
|
|
28,022
|
|
|
25,884
|
|
|
8.6
|
%
|
|
8.3
|
%
|
|||
Other cost of operations
|
6,630
|
|
|
6,477
|
|
|
6,744
|
|
|
(1.7
|
)%
|
|
(4.0
|
)%
|
|||
Total transportation cost of operations
|
34,751
|
|
|
34,499
|
|
|
32,628
|
|
|
6.5
|
%
|
|
5.7
|
%
|
|||
Transportation segment contribution (NOI)
|
$
|
3,594
|
|
|
$
|
3,571
|
|
|
$
|
3,553
|
|
|
1.2
|
%
|
|
0.5
|
%
|
|
|
|
|
|
|
|
|
|
|
||||||||
Transportation margin
|
9.4
|
%
|
|
9.4
|
%
|
|
9.8
|
%
|
|
-40 bps
|
|
|
-40 bps
|
|
(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.
|
|
Three Months Ended March 31,
|
|
Change
|
|||||||
|
2018
|
|
2017
|
|
||||||
|
(Dollars in thousands)
|
|
|
|||||||
Quarry revenues
|
$
|
2,403
|
|
|
$
|
2,559
|
|
|
(6.1
|
)%
|
Quarry cost of operations
|
2,057
|
|
|
1,656
|
|
|
24.2
|
%
|
||
Quarry segment contribution (NOI)
|
$
|
346
|
|
|
$
|
903
|
|
|
(61.7
|
)%
|
|
|
|
|
|
|
|||||
Quarry margin
|
14.4
|
%
|
|
35.3
|
%
|
|
n/m
|
|
|
Three Months Ended March 31,
|
|
Change
|
|||||||
|
2018
|
|
2017
|
|
%
|
|||||
Other (expense) income:
|
(In thousands)
|
|
|
|||||||
Interest expense
|
$
|
(24,495
|
)
|
|
$
|
(27,727
|
)
|
|
(11.7
|
)%
|
Interest income
|
623
|
|
|
257
|
|
|
142.4
|
%
|
||
Loss on debt extinguishment and modification
|
(21,385
|
)
|
|
(171
|
)
|
|
n/m
|
|
||
Foreign currency exchange gain (loss)
|
680
|
|
|
(2,773
|
)
|
|
n/m
|
|
||
Other income (expense) - net
|
56
|
|
|
(467
|
)
|
|
(112.0
|
)%
|
We calculate funds from operations, or FFO, in accordance with the standards established by the Board of Governors of the National Association of Real Estate Investment Trusts, or NAREIT. NAREIT defines FFO as net income or loss determined in accordance with U.S. GAAP, excluding extraordinary items as defined under U.S. GAAP and gains or losses from sales of previously depreciated operating real estate assets, plus specified non-cash items, such as real estate asset depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. We believe that FFO is helpful to investors as a supplemental performance measure because it excludes the effect of depreciation, amortization and gains or losses from sales of real estate, all of which are based on historical costs, which implicitly assumes that the value of real estate diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, FFO can facilitate comparisons of operating performance between periods and among other equity REITs.
|
We calculate core funds from operations, or Core FFO, as FFO adjusted for the effects of gain or loss on the sale of non-real estate assets, non-offering related IPO expenses, stock-based compensation expense for the IPO retention grants, severance and reduction in workforce costs, acquisition, diligence and other pursuit costs, loss on debt extinguishment and modification, and foreign currency exchange gain or loss. 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 FFO and Core FFO add back real estate depreciation and amortization and do not capture the level of recurring 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 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 loan costs, debt discounts and above or below market leases, straight-line rent, provision or benefit from deferred income taxes, stock-based compensation expense from grants of stock options and restricted stock units under our equity incentive plans, non-real estate depreciation, depletion or amortization (including in respect of the China JV), and recurring maintenance capital expenditures. 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 elsewhere in this Quarterly Report on Form 10-Q. 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 income, which is the most directly comparable financial measure calculated in accordance with U.S. GAAP.
|
Reconciliation of Net Earnings to NAREIT FFO, Core FFO, and AFFO
|
|||||||
(In thousands)
|
|||||||
|
Three Months Ended March 31,
|
||||||
|
2018
|
|
2017
|
||||
Net (loss) income
|
$
|
(8,639
|
)
|
|
$
|
4,384
|
|
Adjustments:
|
|
|
|
||||
Real estate related depreciation and depletion
|
22,174
|
|
|
21,433
|
|
||
Real estate depreciation on China JV
|
270
|
|
|
268
|
|
||
NAREIT Funds from operations
|
13,805
|
|
|
26,085
|
|
||
Less distributions on preferred shares of beneficial interest
|
(1,818
|
)
|
|
(7,109
|
)
|
||
NAREIT Funds from operations attributable to common shareholders
|
$
|
11,987
|
|
|
$
|
18,976
|
|
Adjustments:
|
|
|
|
||||
Net gain on sale of non-real estate assets
|
(148
|
)
|
|
(99
|
)
|
||
Non-offering related IPO expenses
(a)
|
1,245
|
|
|
—
|
|
||
Stock-based compensation expense, IPO grants
|
965
|
|
|
—
|
|
||
Severance and reduction in workforce costs
(b)
|
11
|
|
|
—
|
|
||
Terminated site operations costs
|
—
|
|
|
(3
|
)
|
||
Strategic alternative costs
|
—
|
|
|
842
|
|
||
Loss on debt extinguishment and modification
|
21,385
|
|
|
171
|
|
||
Foreign currency exchange (gain) loss
|
(680
|
)
|
|
2,773
|
|
||
Core FFO applicable to common shareholders
|
$
|
34,765
|
|
|
$
|
22,660
|
|
Adjustments:
|
|
|
|
||||
Amortization of deferred financing costs and debt discount
|
1,674
|
|
|
2,023
|
|
||
Amortization of below/above market leases
|
38
|
|
|
38
|
|
||
Straight-line net rent
|
(5
|
)
|
|
(12
|
)
|
||
Deferred income taxes benefit
|
(1,156
|
)
|
|
(748
|
)
|
||
Stock-based compensation expense, excluding IPO grants
|
3,553
|
|
|
587
|
|
||
Non-real estate depreciation and amortization
|
7,234
|
|
|
7,975
|
|
||
Non-real estate depreciation and amortization on China JV
|
156
|
|
|
151
|
|
||
Recurring maintenance capital expenditures
(c)
|
(6,383
|
)
|
|
(5,905
|
)
|
||
Adjusted FFO applicable to common shareholders
|
$
|
39,876
|
|
|
$
|
26,769
|
|
(a)
|
Represents one-time costs and professional fees associated with becoming a public company.
|
(b)
|
Represents one-time severance from and reduction in workforce costs associated with exiting or selling non-strategic warehouses.
|
(c)
|
Recurring 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.
|
We calculate EBITDA for Real Estate, or EBITDAre, in accordance with the standards established by the Board of Governors of NAREIT, defined as, earnings before interest expense, taxes, depreciation, depletion and amortization, gains or losses on disposition of depreciated property, including gains or losses on change of control, impairment write-downs of depreciated property and of investments in unconsolidated affiliates caused by a decrease in value of depreciated property in the affiliate, and adjustment to reflect share of EBITDAre of unconsolidated affiliates. EBITDAre is a measure commonly used in our industry, and we present EBITDAre to enhance investor understanding of our operating performance. We believe that EBITDAre provides investors and analysts with a measure of operating results unaffected by differences in capital structures, capital investment cycles and useful life of related assets among otherwise comparable companies.
|
We also calculate our Core EBITDA as EBITDAre further adjusted for impairment charges on intangible and long-lived assets, gain or loss on depreciable real property asset disposals, severance and reduction in workforce costs, non-offering related IPO expenses, loss on debt extinguishment and modification, stock-based compensation expense, foreign currency exchange gain or loss, loss on partially owned entities, and reduction in EBITDAre from partially owned entities. 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:
|
•
|
these measures do not reflect our historical or future cash requirements for recurring 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, depletion and amortization are non-cash charges, the assets being depreciated, depleted and amortized will often have to be replaced in the future and these measures do not reflect any cash requirements for such replacements.
|
We use EBITDAre and Core EBITDA as measures of our operating performance and not as measures of liquidity. The table below reconciles EBITDAre and Core EBITDA to net income, which is the most directly comparable financial measure calculated in accordance with U.S. GAAP.
|
Reconciliation of Net Earnings to NAREIT EBITDAre and Core EBITDA
|
|||||||
(In thousands)
|
|||||||
|
Three Months Ended March 31,
|
||||||
|
2018
|
|
2017
|
||||
Net (loss) income
|
$
|
(8,639
|
)
|
|
$
|
4,384
|
|
Adjustments:
|
|
|
|
||||
Depreciation, depletion and amortization
|
29,408
|
|
|
29,408
|
|
||
Interest expense
|
24,495
|
|
|
27,727
|
|
||
Income tax expense
|
(89
|
)
|
|
1,494
|
|
||
Adjustment to reflect share of EBITDAre of partially owned entities
|
557
|
|
|
571
|
|
||
NAREIT EBITDAre
|
$
|
45,732
|
|
|
$
|
63,584
|
|
Adjustments:
|
|
|
|
||||
Severance and reduction in workforce costs
(a)
|
11
|
|
|
—
|
|
||
Terminated site operations cost
|
—
|
|
|
(3
|
)
|
||
Non-offering related IPO expenses
(b)
|
1,245
|
|
|
—
|
|
||
Strategic alternative costs
|
—
|
|
|
842
|
|
||
Loss from partially owned entities
|
139
|
|
|
27
|
|
||
(Gain) loss on foreign currency exchange
|
(680
|
)
|
|
2,773
|
|
||
Stock-based compensation expense
|
4,518
|
|
|
587
|
|
||
Loss on debt extinguishment and modification
|
21,385
|
|
|
171
|
|
||
Gain on real estate and other asset disposals
|
(137
|
)
|
|
(102
|
)
|
||
Reduction in EBITDAre from partially owned entities
|
(557
|
)
|
|
(571
|
)
|
||
Core EBITDA
|
$
|
71,656
|
|
|
$
|
67,308
|
|
(a)
|
Represents one-time severance from reduction in workforce costs associated with exiting or selling non-strategic warehouses.
|
(b)
|
Represents one-time costs and professional fees associated with becoming a public company.
|
•
|
current cash balances;
|
•
|
cash flows from operations;
|
•
|
borrowings under our 2018 Senior Secured Credit Facilities; and
|
•
|
other forms of secured or unsecured debt financings and equity offerings.
|
•
|
operating activities and overall working capital;
|
•
|
capital expenditures;
|
•
|
debt service obligations; and
|
•
|
quarterly shareholder distributions.
|
|
Stated
maturity date |
|
Contractual
interest rate (5) |
|
Effective interest rate
(6)
as of March 31, 2018 |
|
March 31, 2018
|
|
December 31, 2017
|
||||
2010 Mortgage Loans
cross-collateralized and cross-defaulted by 46 warehouses:
|
|
|
|
|
|
(In thousands)
|
|||||||
Component A-1
|
1/2021
|
|
3.86%
|
|
4.40%
|
|
$
|
52,641
|
|
|
$
|
56,941
|
|
Component A-2-FX
|
1/2021
|
|
4.96%
|
|
5.38%
|
|
150,334
|
|
|
150,334
|
|
||
Component A-2-FL
(1)
|
1/2021
|
|
L+1.51%
|
|
3.80%
|
|
48,654
|
|
|
48,654
|
|
||
Component B
|
1/2021
|
|
6.04%
|
|
6.48%
|
|
60,000
|
|
|
60,000
|
|
||
Component C
|
1/2021
|
|
6.82%
|
|
7.28%
|
|
62,400
|
|
|
62,400
|
|
||
Component D
|
1/2021
|
|
7.45%
|
|
7.92%
|
|
82,600
|
|
|
82,600
|
|
||
2013 Mortgage Loans
cross-collateralized and cross-defaulted by 15 warehouses: |
|
|
|
|
|
|
|
|
|||||
Senior note
|
5/2023
|
|
3.81%
|
|
4.14%
|
|
192,654
|
|
|
194,223
|
|
||
Mezzanine A
|
5/2023
|
|
7.38%
|
|
7.55%
|
|
70,000
|
|
|
70,000
|
|
||
Mezzanine B
|
5/2023
|
|
11.50%
|
|
11.75%
|
|
32,000
|
|
|
32,000
|
|
||
ANZ Term Loans secured by mortgages in properties owned by relevant subsidiaries:
|
|
|
|
|
|
|
|
|
|||||
Australia Term Loan
(2), (4)
|
6/2020
|
|
BBSY+1.40%
|
|
4.59%
|
|
156,046
|
|
|
158,645
|
|
||
New Zealand Term Loan
(3), (4)
|
6/2020
|
|
BKBM+1.40%
|
|
5.15%
|
|
31,834
|
|
|
31,240
|
|
||
2018 Senior Secured Term A Facility
(4)
secured by stock pledge in qualified subsidiaries
|
1/2023
|
|
L+2.50%
|
|
4.90%
|
|
$
|
475,000
|
|
|
$
|
—
|
|
2015 Senior Secured Term Loan B Facility
(4)
|
12/2022
|
|
L+3.75%
|
|
5.79%
|
|
—
|
|
|
806,918
|
|
||
Total principal amount of mortgage notes and term loans
|
|
1,414,163
|
|
|
1,753,955
|
|
|||||||
Less deferred financing costs
|
|
|
|
|
|
|
(15,611
|
)
|
|
(25,712
|
)
|
||
Less debt discount
|
|
|
|
|
|
|
(325
|
)
|
|
(6,285
|
)
|
||
Total mortgage notes and term loans, net of deferred financing costs and debt discount
|
|
$
|
1,398,227
|
|
|
$
|
1,721,958
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||
2018 Senior Secured Revolving Credit
Facility secured by stock pledge in qualified subsidiaries ( 4) , (5) |
1/2021
|
|
L+2.50%
|
|
n/a
|
|
$
|
—
|
|
|
$
|
—
|
|
Construction Loan:
|
|
|
|
|
|
|
|
|
|
||||
Warehouse Clearfield, UT secured by mortgage
(4)
|
2/2019
|
|
LIBOR + 3.25%
or prime rate + 2.25%
|
|
5.18%
|
|
$
|
—
|
|
|
$
|
19,671
|
|
Less deferred financing costs
|
|
|
|
|
|
|
—
|
|
|
(179
|
)
|
||
|
|
|
|
|
|
|
$
|
—
|
|
|
$
|
19,492
|
|
(1)
|
Component A-2-FL of the 2010 Mortgage Loans has a variable interest rate equal to one-month LIBOR plus
1.51%
, with one-month-LIBOR subject to a floor of
1.00%
per annum. In addition, we maintain an interest rate cap on the variable rate tranche that caps one-month LIBOR at
6.0%
. The variable interest rate at
March 31, 2018
was
3.39%
per annum.
|
(2)
|
As of
March 31, 2018
, the outstanding balance was
AUD$203.0 million
and the variable interest rate was
3.28%
per annum (
1.88%
BBSY plus
1.40%
margin) of which
75%
is fixed via an interest rate swap at
4.06%
per annum (
2.66%
BBSY plus
1.40%
margin).
|
(3)
|
As of
March 31, 2018
, the outstanding balance was
NZD$44.0 million
and the variable interest rate was
3.33%
per annum (
1.93%
BKBM plus
1.40%
margin), of which
75%
is fixed via an interest rate swap at
4.93%
per annum (
3.53%
BKBM plus
1.40%
margin).
|
(4)
|
References in this table to LIBOR are references to one-month LIBOR and references to BBSY and BKBM are to Australian Bank Bill Swap Bid Rate and New Zealand Bank Bill Reference Rate, respectively.
|
(5)
|
Unused line, letter of credit and financing fees increase the stated interest rate.
|
(6)
|
The effective interest rate includes effects of amortization of the deferred financing costs and debt discount. The weighted average effective interest rate for total debt was
5.39%
and
5.68%
as of
March 31, 2018
and
December 31, 2017
, respectively.
|
•
|
a maximum leverage ratio of less than or equal to
60%
of our total asset value;
|
•
|
a minimum borrowing base coverage ratio of greater than or equal to
1.00
to
1.00
;
|
•
|
a minimum pro forma fixed charge coverage ratio of greater than or equal to
1.40
to
1.00
increasing to
1.50
to
1.00
in the first quarter of 2018;
|
•
|
a minimum borrowing base debt service coverage ratio of greater than or equal to
2.00
to
1.00
;
|
•
|
a minimum tangible net worth requirement of greater than or equal to
$900 million
plus
70%
of any future net equity proceeds following the completion of the IPO transactions; and
|
•
|
a maximum recourse secured debt ratio of less than or equal to 20% of our total asset value.
|
|
Three Months Ended March 31,
|
||||||
2018
|
|
2017
|
|||||
|
(In thousands, except per cubic foot amounts)
|
||||||
Real estate
|
$
|
5,809
|
|
|
$
|
5,143
|
|
Personal property
|
252
|
|
|
347
|
|
||
Information technology
|
322
|
|
|
415
|
|
||
Total recurring maintenance capital expenditures
|
$
|
6,383
|
|
|
$
|
5,905
|
|
|
|
|
|
||||
Total recurring maintenance capital expenditures per cubic foot
|
$
|
0.007
|
|
|
$
|
0.006
|
|
|
Three Months Ended March 31,
|
||||||
2018
|
|
2017
|
|||||
|
(In thousands, except per cubic foot amounts)
|
||||||
Real estate
|
$
|
5,197
|
|
|
$
|
5,316
|
|
Personal property
|
7,992
|
|
|
7,295
|
|
||
Total repair and maintenance expenses
|
$
|
13,189
|
|
|
$
|
12,611
|
|
|
|
|
|
||||
Repair and maintenance expenses per cubic foot
|
$
|
0.014
|
|
|
$
|
0.013
|
|
|
Three Months Ended March 31,
|
||||||
2018
|
|
2017
|
|||||
|
(In thousands)
|
||||||
Expansion and development initiatives
|
$
|
18,236
|
|
|
$
|
37,152
|
|
Information technology
|
800
|
|
|
1,431
|
|
||
Total growth and expansion capital expenditures
|
$
|
19,036
|
|
|
$
|
38,583
|
|
|
Three Months Ended March 31,
|
||||||
|
2018
|
|
2017
|
||||
|
(In thousands)
|
||||||
Net cash provided by operating activities
|
$
|
50,361
|
|
|
$
|
45,684
|
|
Net cash used in investing activities
|
(27,919
|
)
|
|
(52,240
|
)
|
||
Net cash provided by (used in) financing activities
|
121,087
|
|
|
(11,301
|
)
|
|
Payments due by period
|
||||||||||||||||||
|
Total
|
|
Less than 1
Year
|
|
1-3 Years
|
|
3-5 Years
|
|
More than 5
Years
|
||||||||||
Principal on mortgage and term loans
|
$
|
1,414,163
|
|
|
$
|
24,069
|
|
|
$
|
640,155
|
|
|
$
|
489,483
|
|
|
$
|
260,456
|
|
Interest on mortgage and term loans
(1)
|
243,049
|
|
|
71,539
|
|
|
114,184
|
|
|
54,806
|
|
|
2,520
|
|
|||||
Sale leaseback financing obligations
(2)
|
232,572
|
|
|
16,638
|
|
|
33,949
|
|
|
35,188
|
|
|
146,797
|
|
|||||
Capital lease obligations, including interest
|
44,022
|
|
|
11,478
|
|
|
17,384
|
|
|
8,846
|
|
|
6,314
|
|
|||||
Operating leases
|
108,446
|
|
|
31,463
|
|
|
48,558
|
|
|
11,093
|
|
|
17,332
|
|
|||||
Total
(3), (4)
|
$
|
2,042,252
|
|
|
$
|
155,187
|
|
|
$
|
854,230
|
|
|
$
|
599,416
|
|
|
$
|
433,419
|
|
(1)
|
Interest payable is based on interest rates in effect at
March 31, 2018
. Amounts include variable-rate interest payments, which are calculated utilizing the applicable interest rates as of
March 31, 2018
.
|
(2)
|
Sale leaseback financing obligations are subject to multiple expiration dates and bear interest rates that vary from 7.0% to 19.6%.
|
(3)
|
The table above excludes
$0.8 million
of estimated tax exposures, including interest and penalties, related to positions taken on U.S. federal and state income tax returns for our TRSs as of
March 31, 2018
.
|
(4)
|
The table also excludes
$2.4 million
aggregate fair value as of
March 31, 2018
of two interest rate swap agreements expiring in June 2020.
|
Exhibit No.
|
|
Description
|
|
10.1
|
|
|
|
10.2#
|
|
|
|
10.3#
|
|
|
|
10.4#
|
|
|
|
10.5#
|
|
|
|
31.1
|
|
|
|
31.2
|
|
|
|
32.1
|
|
|
|
32.2
|
|
|
|
95.1
|
|
|
|
101.INS
|
|
|
XBRL Instance Document
|
101.SCH
|
|
|
XBRL Taxonomy Extension Schema Document
|
101.CAL
|
|
|
XBRL Extension Calculation Linkbase Document
|
101.DEF
|
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
101.LAB
|
|
|
XBRL Taxonomy Extension Labels Linkbase Document
|
101.PRE
|
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
AMERICOLD REALTY TRUST
|
||
|
|
(Registrant)
|
|
|
|
|
|
|
|
|
|
|
|
|
Date:
|
May 15, 2018
|
By:
|
/s/ Marc Smernoff
|
|
|
|
Name:
|
Marc Smernoff
|
|
|
|
Title:
|
Chief Financial Officer and Executive Vice President
|
|
|
|
(On behalf of the registrant and as principal financial officer)
|
Vesting Date
|
Number of Restricted Stock Units That Vest
|
|
100%
|
|
AMERICOLD REALTY TRUST
|
|
By: _____________________
Name:
Title:
|
|
[PARTICIPANT NAME]
|
|
By: _____________________
Name:
|
Vesting Date
|
Number of Restricted Stock Units That Vest
|
[INSERT DATE THAT IS 2 YEARS FROM GRANT DATE]
|
33.33%
|
[INSERT DATE THAT IS 3 YEARS FROM GRANT DATE]
|
33.33%
|
[INSERT DATE THAT IS 4 YEARS FROM GRANT DATE]
|
33.34%
|
Vesting Date
|
Number of Restricted Stock Units That Vest
|
[INSERT DATE THAT IS 1 YEAR FROM GRANT DATE]
|
50%
|
[INSERT DATE THAT IS 2 YEARS FROM GRANT DATE]
|
50%
|
|
AMERICOLD REALTY TRUST
|
|
By: _____________________
Name:
Title:
|
|
[PARTICIPANT NAME]
|
|
By: _____________________
Name:
|
Vesting Date
|
Number of Restricted Stock Units That Vest
|
Upon completion of the Performance Period as described in
Appendix A
|
As provided in
Appendix A
|
|
AMERICOLD REALTY TRUST
|
|
By: _____________________
Name:
Title:
|
|
[PARTICIPANT NAME]
|
|
By: _____________________
Name:
|
Performance Level Thresholds
|
TSR
|
Vesting Percentage
|
Restricted Stock Units Vested
|
Minimum
|
|
50% of Target Award
|
[
l
]
|
Target
|
|
100% of Target Award
|
[
l
]
|
Maximum
|
|
150% of Target Award
|
[
l
]
|
•
|
Effective May 14, 2018, your base salary will be increased to $525,000 annually.
|
•
|
You will be eligible for relocation of your household goods from your current residence in Los Angeles, CA to your home in the greater Atlanta, GA area. You will be required to sign the Company’s Relocation Repayment Agreement (see Attachment A) and to comply with the terms and conditions outlined in the policy specific to household goods.
|
•
|
Upon the official relocation of your family to the Atlanta, GA area, which we understand will be prior to August 6, 2018, you will receive a one-time bonus payment of $100,000. The bonus will be paid as a lump sum, minus applicable taxes and deductions. Once your move is complete, you will notify Andrea Darweesh, Chief Human Resources Officer. At that time, in the event your family does not remain in Atlanta, GA, the following terms will apply for payback of the one-time bonus:
|
◦
|
If your family does not remain in Atlanta, GA for at least one (1) year from your move date, 100% of the one-time bonus must be repaid to the Company;
|
◦
|
If your family remains in Atlanta, GA for more than one (1) year, but less than two (2) years from your move date, 50% of the one-time bonus must be repaid to the Company.
|
Please sign below to confirm your understanding and acceptance of the above terms and conditions Return one copy to HR and maintain one copy for your records.
|
||||
Signature:
|
/s/ Marc Smernoff
|
|
Date:
|
5/14/18
|
|
|
|
|
|
Approval (To be approved prior to offering relocation benefits)
|
Human Resources Date
|
|
Release
|
I, ____
Marc Smernoff
____, acknowledge that, as a condition of my employment or career development, I am being relocated at the expense of Americold.
I further acknowledge and agree that if I terminate my employment voluntarily or am terminated due to poor performance or misconduct before 24 months have elapsed from the date of my 2018 relocation, I will reimburse Americold, for any and all grossed up expenses related to my relocation as per the following schedule.
PERCENTAGE OF RELOCATION BENEFITS
MONTHS SINCE RELOCATION TO BE REIMBURSED TO THE COMPANY
0 to 12 Months 100%
13 to 18 Months 75%
19 to 24 Months 25%
I authorize the Company to withhold the maximum amount permitted by law from payment of any and all monies due me in the nature of wages, reimbursable expenses, and any other payments to satisfy the obligation. I agree that if the foregoing withholding is insufficient to meet my obligation to the company, any balance will become due immediately and payable without notice or demand. I agree to pay all attorney fees associated with the Company’s obtaining legal satisfaction on this matter. I further acknowledge that I have read the Company’s Relocation Policy in its entirety and have been advised in writing of contact names and numbers should I have any questions regarding the provisions of this policy.
__Marc Smernoff ____________ __
_____
/s/ Marc Smernoff
______5/14/2018_
Name (please print) Signature & Date
____________________________________
Associate Number
|
/s/ Fred Boehler
|
Fred Boehler
|
Chief Executive Officer, President and Trustee
|
/s/ Marc Smernoff
|
Marc Smernoff
|
Chief Financial Officer and Executive Vice President
|
1.
|
The Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Fred Boehler
|
Fred Boehler
|
President, Chief Executive Officer and Trustee
|
1.
|
The Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Marc Smernoff
|
Marc Smernoff
|
Chief Financial Officer and Executive Vice President
|
Mine or Operating Name (MSHA Identification Number)
|
|
Section 104 S&S Citations
|
|
Section 104(b) Orders
|
|
Section 104(d) Citations and Orders
|
|
Section 110(b)(2) Violations
|
|
Section 107(a) Orders
|
|
Total Dollar Value of MSHA Assessments Proposed
|
|
Total Number of Mining Related Fatalities
|
|
Received Notice of Pattern of Violations Under Section 104(e)
|
|
Received Notice of Potential to Have Pattern Under Section 104(e)
|
|
Legal Actions Pending as of Last Day of Period
(1)
|
|
Legal Actions Initiated During Period
|
|
Legal Actions Resolved During Period
|
Carthage Crushed Limestone
(23-00028)
|
|
8
|
|
0
|
|
0
|
|
0
|
|
0
|
|
$6,282.00
|
|
0
|
|
No
|
|
No
|
|
2
|
|
2
|
|
0
|
(1)
|
See table below for additional detail regarding Legal Actions Pending as of March 31, 2018. With respect to Contests of Proposed Penalties, we have included the number of dockets (as opposed to citations) when counting the number of Legal Actions Pending as of March 31, 2018.
|
|
|
|
|
Contests of proposed penalties
(b)
|
|
|
|
|
|
|
|
|
||
Mine or Operating Name (MSHA Identification Number)
|
|
Contests of citations and orders
(a)
|
|
Dockets
|
|
Citations
|
|
Complaints for compensation
(c)
|
|
Complaints of discharge, discrimination or interference
(d)
|
|
Applications for temporary relief
(e)
|
|
Appeals of judges' decisions or orders
(f)
|
Carthage Crushed Limestone
(23-00028) |
|
15
|
|
1
|
|
5
|
|
—
|
|
—
|
|
—
|
|
—
|
(a)
|
Represents (if any) contests of citations and orders, which typically are filed prior to an operator's receipt of a proposed penalty assessment from MSHA or relate to orders for which penalties are not assessed (such as imminent danger orders under Section 107 of the Mine Act). This category includes: (i) contests of citations or orders issued under section 104 of the Mine Act, (ii) contests of imminent danger withdrawal orders under section 107 of the Mine Act, and (iii) Emergency response plan dispute proceedings (as required under the Mine Improvement and New Emergency Response Act of 2006, Pub. L. No. 109-236, 120 Stat. 493).
|
(b)
|
Represents (if any) contests of proposed penalties, which are administrative proceedings before the Federal Mine Safety and Health Review Commission (“FMSHRC”) challenging a civil penalty that MSHA has proposed for the violation contained in a citation or order. This column includes one action involving civil penalties against agents of the operator that has been contested and two appeals of a decision or order.
|
(c)
|
Represents (if any) complaints for compensation, which are cases under section 111 of the Mine Act that may be filed with the FMSHRC by miners idled by a closure order issued by MSHA who are entitled to compensation.
|
(d)
|
Represents (if any) complaints of discharge, discrimination or interference under section 105 of the Mine Act, which cover: (i) discrimination proceedings involving a miner's allegation that he or she has suffered adverse employment action because he or she engaged in activity protected under the Mine Act, such as making a safety complaint, and (ii) temporary reinstatement proceedings involving cases in which a miner has filed a complaint with MSHA stating that he or she has suffered such discrimination and has lost his or her position. Complaints of Discharge, Discrimination, or Interference are also included in Contests of Proposed Penalties, column (b).
|
(e)
|
Represents (if any) applications for temporary relief, which are applications under section 105(b)(2) of the Mine Act for temporary relief from any modification or termination of any order or from any order issued under section 104 of the Mine Act (other than citations issued under section 104(a) or (f) of the Mine Act).
|
(f)
|
Represents (if any) appeals of judges' decisions or orders to the FMSHRC, including petitions for discretionary review and review by the FMSHRC on its own motion.
|