Americold Reports Net Loss on Increased Revenue For Q4 2020
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Americold Realty Trust on Feb, 18 reported a net loss on increased revenue for the fourth quarter of 2020.
The Atlanta-based temperature-controlled warehousing and transportation carrier posted a net loss of $44 million, or minus 21 cents a diluted share, for the three months ending Dec. 31. That compared with $20.8 million, 10 cents, during the same time the previous year.
Total revenue increased 7.8% to $523.7 million from $486 million.
Results were mixed in terms of Wall Street expectations. Analysts had been looking for 34 cents per share and quarterly revenue of $516.37 million, according to Zacks Consensus Estimate.
For the full year, Americold reported a profit of $24.6 million, 11 cents, on revenue of $1.99 billion, compared with net income of $48.2 million, 26 cents, on revenue of $1.78 billion in 2019.
“Against the challenging backdrop of the COVID-19 pandemic, we are extremely proud of the consistency and the stability of our core business throughout 2020 and our ability to deliver results in line with our pre-COVID guidance,” CEO Fred Boehler said in a statement.
He attributed the results to the company portfolio’s diversity and scale. Boehler also noted commercialization efforts enabled Americold to overcome the supply chain disruption and financial impact of the pandemic. The company also was able to grow through acquisitions.
Boehler
“We entered key strategic markets in Europe and Canada through platform transactions and in Brazil through two joint ventures,” Boehler said. “We bolstered our presence in our legacy markets through deliberate and purposeful tuck-in acquisitions.
“At this point, our platform supports customers in 13 countries across four continents. We also grew our strategic development program, with seven projects totaling 62 million cubic feet under construction as of year-end.”
Americold completed the acquisitions of temperature-controlled warehouse company Agro Merchants Group and Hall’s Warehouse Corp. in the fourth quarter. The company closed $2.6 billion of acquisitions in 2020 and added 62 facilities.
“We believe these projects materially enhance the value of our network at key logistics nodes,” Boehler said. “As we look ahead to 2021 and beyond, we will continue to focus on driving internal growth, integrating our recent acquisitions and executing strategic growth initiatives. Above all, we will continue to support our customers as an integral part of the global food supply chain, and our success in doing so should result in lasting shareholder value creation.”
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Boehler noted that safety remains a top priority with the company having its sixth consecutive year with a reduction in total recordable incident rate. The company also continues to invest in training and advancement programs to further develop employees.
“As we look ahead to 2021 and beyond, we will continue to focus on driving internal growth, integrating our recent acquisitions and executing strategic growth initiatives,” Boehler said. “Above all, we will continue to support our customers as an integral part of the global food supply chain, and our success in doing so should result in lasting shareholder value creation.”
The global warehouse segment reported revenue in Q4 increased 6.3% to $407.8 million from $383.8 million the prior-year quarter. The segment includes rental and storage as well as other warehouse services. Net operating income for the segment increased 12% to $145.7 million from $129.5 million.
The third-party managed segment reported revenue during the recent quarter increased 19.7% to $78.5 million from $64.4 million. Net operating income decreased 55.2% to $1.8 million from $3.1 million.
Revenue in the transportation segment rose 4.8% to $37.3 million from $35.6 million in Q4 of 2019. Net operating income increased 4.8% to $5.04 million from $4.87 million.
Americold Logistics ranks No. 14 on the Transport Topics Top 50 list of largest logistics companies in North America.
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