StorageVault Reports 2016 Third Quarter and Year to Date Results
November 15, 2016
CALGARY, ALBERTA--(Marketwired - Nov. 15, 2016) - STORAGEVAULT CANADA INC. ("StorageVault" or the "Corporation") (TSX VENTURE:SVI) reported the Corporation's 2016 third quarter and nine months year to date results. Iqbal Khan, Chief Financial Officer, commented:
"We continue to achieve and exceed our acquisition plan, having closed or announced $114.5 million in acquisitions so far this year, combined with success on improving our operational results. With Q3 traditionally being the strongest quarter of the year, and with the performance of the stores acquired in 2015 being solid, we are on pace to achieve our expected annual results. To the end of quarter, we closed $78.7 million in acquisitions, closed a bought deal raise for gross proceeds of $57.5 million, issued an additional $7.1 in common shares to vendors in asset acquisitions, declared our third quarter dividend and increased net operating income from the prior quarter by 19.1%."
2016 Third Quarter Results
Revenue for the third quarter increased to $7.3 million compared to $6.3 million in Q2 2016 and net operating income grew to $4.5 million in the third quarter from $3.8 million in Q2 2016. The strong growth in revenue and NOI is the result of execution of our revenue management program, continued integration of acquired stores, and as well Q3 being the strongest quarter of the year. We continue to see increases in Q3 2016 revenue and NOI from existing self storage stores when compared to the same period last year, with revenue increasing by 18.5% and NOI increasing by 22.4%. The net loss of $0.5 million in Q3 2016 is the result of $0.4 million in acquisition and integration costs and $2.9 million of depreciation. Funds from operations (FFO) were $2.4 million for Q3 2016 compared to $1.7 million in Q2 2016.
2016 Nine Months Year to Date Results
Revenue for the nine months ended September 30, 2016 increased to $18.9 million compared to $6.3 million and NOI grew to $11.3 million from $3.2 million, for the same comparative period. Our revenue management program and continued integration of assets resulted in revenue and NOI from existing self storage increasing by 14.2% and 20.4%, respectively, compared to the same period last year. The net loss of $2.5 million for the nine months ended September 30, 2016 is a result of $0.9 million in acquisition and integration costs and $7.6 million of depreciation. FFO was $5.0 million for the nine months compared to the 2015 full year FFO of $1.4 million.
StorageVault is focused on owning and operating stores in the top markets in Canada. Our goal is to have multiple stores in each market, with complementary portable storage units, to take advantage of economies of scale. Our growth strategy is focused on acquisitions, organic growth, expansion of our existing stores and expansion of our portable storage business.
For comprehensive disclosure of StorageVault's performance for the three and nine months ended September 30, 2016 and its financial position as at such date, please see StorageVault's Interim Consolidated Financial Statements and Management's Discussion and Analysis for the three and nine months ended September 30, 2016 filed on SEDAR at www.sedar.com.
Non-IFRS Financial Measures
Management uses both IFRS and Non-IFRS Measures to assess the financial and operating performance of the Corporation's operations. These Non-IFRS Measures are not recognized measures under IFRS, do not have a standardized meaning under IFRS and are unlikely to be comparable to similar measures presented by other companies. The Non-IFRS Measures referenced in this news release include the following:
- Net Operating Income ("NOI") - NOI is defined as storage and related services less related operating costs. NOI does not include interest expense or income, depreciation and amortization, selling, general and administrative costs, acquisition and integration costs, stock based compensation costs or taxes. NOI assists management in assessing profitability and valuation from principal business activities.
- Funds from Operations ("FFO") - FFO is defined as net income (loss) excluding gains or losses from the sale of depreciable real estate, plus depreciation and amortization, stock based compensation expenses, and deferred income taxes; and after adjustments for equity accounted entities and non-controlling interests. The Corporation believes that FFO can be a beneficial measure, when combined with primary IFRS measures, to assist in the evaluation of the Corporation's ability to generate cash and evaluate its return on investments as it excludes the effects of real estate amortization and gains and losses from the sale of real estate, all of which are based on historical cost accounting and which may be of limited significance in evaluating current performance.
- Existing Self Storage - means stores that the StorageVault has owned or leased since the beginning of the previous fiscal year.
NOI and FFO, and Existing Self Storage, should not be viewed as an alternative to, in isolation from, or superior to, net income or cash flow from operations, or results from StorageVault's comprehensive operations, respectively, or other measures calculated in accordance with IFRS. NOI and FFO should not be interpreted as an indicator of cash generated from operating activities and is not indicative of cash available to fund operating expenditures, or for the payment of cash distributions. Existing Self Storage should not be considered a measure of StorageVault's comprehensive operations. NOI, FFO and Existing Self Storage are simply additional measures of operating performance which highlight trends in StorageVault's core business that may not otherwise be apparent when relying solely on IFRS financial measures. StorageVault's management also uses these non-IFRS measures in order to facilitate operating performance comparisons from period to period and to prepare operating budgets.
About StorageVault Canada Inc.
StorageVault owns and operates storage locations in the provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, and Nova Scotia.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Information: This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein are forward-looking information. In particular, this news release contains forward-looking information regarding: the Corporation's strategic objectives, focus, goals and growth strategy; and statements regarding StorageVault's expected future performance, including revenue and NOI growth, and the ability to achieve this future performance. There can be no assurance that such forward-looking information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such forward-looking information. This forward-looking information reflects StorageVault's current beliefs and is based on information currently available to StorageVault and on assumptions StorageVault believes are reasonable. These assumptions include, but are not limited to: the level of activity in the storage business and the economy generally; consumer interest in the Corporation's services and products; competition and SVI's competitive advantages; the continued positive impact of the integration of previous acquisitions on StorageVault's operating and financial performance; and trends in the storage industry, including, increased growth and growth in the portable storage business. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of StorageVault to be materially different from those expressed or implied by such forward-looking information.
Such risks and other factors may include, but are not limited to: general business, economic, competitive, political and social uncertainties; general capital market conditions and market prices for securities; delay or failure to receive board or regulatory approvals; the actual results of future operations; competition; changes in legislation, including environmental legislation, affecting StorageVault; the timing and availability of external financing on acceptable terms; conclusions of economic evaluations and appraisals; and lack of qualified, skilled labour or loss of key individuals. A description of additional assumptions used to develop such forward-looking information and a description of additional risk factors that may cause actual results to differ materially from forward-looking information can be found in StorageVault's disclosure documents on the SEDAR website at www.sedar.com. Although StorageVault has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Readers are cautioned that the foregoing list of factors is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking information as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Forward-looking information contained in this news release is expressly qualified by this cautionary statement. The forward-looking information contained in this news release represents the expectations of StorageVault as of the date of this news release and, accordingly, is subject to change after such date. However, StorageVault expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.
StorageVault Canada Inc.
Mr. Steven Scott or Mr. Iqbal Khan