2005 Annual Report - Touax

Reports of the Managers
annual report 2005
■ Shipping containers business
As at 31 December 2005, the shipping containers
business shows an increase in its gross operating
margin (EBITDA) and in its segment result before net
distributions to investors. The segment result after
net distributions to investors decreased slightly. This
change is explained by a decrease in sales margins
offset by a rise in management margins and a
decrease in the overheads of the business. The
decrease in sales margins results from a slowdown
in demand which was observed in China from April
2005 but reversed in February 2006.
■ Modular buildings business
The gross operating margin of the modular buildings
business increased by €3 million in 2005. The segment
result after net distributions to investors rose
by €1.6 million. The growth in modular buildings
corresponds to an increase in sale and leasing margins
following very tight cost control.
■ River barges business
The river barges business achieved an improvement
in its gross operating margin in 2005 (+€1.2 million)
and in its segment result after distribution to investors
(+€0.5 million) compared to 2004. This improvement
is mainly due to sustained activity on the
Mississippi and the Danube.
■ Railcars business
The gross operating margin of the railcars business
increased by €1.6 million. The segment result after
distribution to investors has stabilized with new
management programs.
Distribution to investors
The Group manages equipment belonging to investors.
The distribution to investors represents the
portion of the results generated from equipment
managed on behalf of third parties.
The distributions to investors amounted to €46.7
million (compared to €36.9 million in 2004) and were
made up as follows:
•€38.4 million in the shipping containers business,
•€5.5 million in the modular buildings business,
•€0.6 million in the river barges business,
•€2.2 million in the railcars business.
The overall rise in distributions to investors is due to
the conclusion of new management programs in
2004 and 2005.
It should be recalled that the leasing revenues include
leasing revenues on behalf of third parties and leasing
revenues for the company’s own account. The change
in the rate of revenue distribution results from the
change in the mix of leasing/sales revenues combined
with the change in the mix of third-party/own
account leasing revenues. In other words, the higher
the third-party leasing revenues, the higher the rate
of revenue distribution. The conclusion of new management
programs in 2004 and 2005 generated an
increase in the proportion of third-party leasing revenues
and consequently led to an increase in distributions
to investors. The Group managed €687 million
of equipment in 2005, 79% of which belonged to third
parties. In 2004, the Group managed €541 million of
equipment, of which 77% belonged to third parties.
The rate of distribution to investors as a proportion of
leasing revenues consequently increased, from 34%
in 2004 to 36.5% in 2005. It is not relevant to calculate
the revenues on behalf of third parties. These are
revenues generated by equipment pools in which the
Group owns a share of the equipment.
Operating income after distribution
to investors
Operating income after distribution to investors corresponds
to the operating result defined by the CNC.
Operating income after distribution to investors
amounted to €8.6 million, a rise of 26% compared to
€6.8 million in 2004.
Financial result
The financial result shows a loss of €2.7 million,
compared to €3.7 million in 2004.
The net financial expense amounted to €3.3 million
and the currency effect was positive at €0.6 million
in 2005. In 2004, the net financial expense amounted
to €3.3 million and the currency effect was negative
at €0.4 million.
The change in the financial result (+€1 million) is
mainly due to the positive currency effect following
the appreciation of the dollar against the euro.
Net attributable income
The tax figure is a charge of €2.3 million compared
to a charge of €0.3 million in 2004. The 2005 tax
comprises the portion of tax due (€0.4 million) and
the portion of tax deferred (€1.9 million). For the
record, the tax figure in 2004 included a tax credit of
€1.1 million.
The consolidated net attributable income amounted
to €4.1 million, a rise of 28.1% compared to the 2004
result of €3.2 million.
Net earnings per share amounted to €1.40 (€1.12 in
2004) for weighted average shares of €2,923,486 in
2005.
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