The following is a summary of the Americold Realty Trust, Inc. (COLD) Q1 2024 Earnings Call Transcript:
Financial Performance:
Americold Trust saw a year-on-year increase in AFFO of over 28% amounting to $104.9 million or $0.37 per share, primarily due to significant improvements in same-store services margins.
The increased performance led the company to update its AFFO guidance to between $1.38 and $1.46 per share for FY '24.
Their net debt stands at the end of the quarter was $3.2 billion with a debt to EBITDA ratio of 5.4.
Despite a year-over-year decline in the first quarter, the company's performance was in line with predictions and their guidance remains unchanged.
Business Progress:
The company has seen significant progress in labor management due to improved hiring and retention metrics and reported back to pre-COVID retention levels.
Strategic partnerships have led to development, including groundbreaking on projects in Kansas City and Dubai, and a new expansion in Sydney.
Americold's ERP system has gone live providing financial returns through process improvements including better billing and reduced procurement process costs.
Q1 handling margins of 10.7% exceeded their guidance by 1.7%.
The company has a strong new business pipeline in Europe with expectations of future occupancy growth.
In terms of their automated retail facilities, despite a slower ramp-up in Pennsylvania and Connecticut, they expect to reach 60% fixed commitments and are comfortable with a portion of the business being transactional.
More details: Americold Realty Trust IR
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