americold earnings call transcript


So we were able to bring it in pretty quick and get them in. Hope you're doing well. In addressing COVID-19, we took immediate action at the unset by mobilizing a global response team, following the guidance of the CDC and enhancing our standard protocols to help protect our associates and safeguard the integrity of our supply chain. We've also obviously been approached by others of our letters in our longer-term paper. The difference is, during that time, we have the time to train them up and get them into a highly productive state.In this particular phase, because the ramp was so quick, so immediate, we did a number of things. This diversity helps us withstand changes in food supply and demand. There might be specific items that run out, that run shorter, but there's a lot of inventory. So we're agnostic to the vast majority of that. As production ramps up at the plant that have experienced short-term shutdown, our facilities will continue to serve them. Retirement I will then discuss our first-quarter 2020 results and activity, and how these results were influenced by COVID-19.Mark will then review our quarterly results in more detail and discuss our balance sheet and guidance for 2020.

A lot of people like Great Wolf Lodge, an example of an employer that had to unfortunately shutdown a lot of their operations. They may see a slowdown in shipping to the airline from there or somebody else.

Our incredibly large, diverse portfolio spread across multiple locations, multiple customers, facility types, product types, and notes in the supply chain enables us to minimize its volatility driven by specific commodity disruption.

You see Page 24 of our Q1 2020 supplemental for more information on this diversity.This diversity helps us withstand changes in food supply and demand. So we haven't seen regular healthcare costs up. Or how much money you make on retail versus food service?

I mean obviously, the earlier surge pushed the 1Q '20 results, noticeably higher.

They also reflect the impact from reduced food consumption at restaurants, sporting events. And as we mentioned in the prepared remarks, we have demand for over 80% of the space in that site, and that demand will be ramping on through the rest of the year.So we are performing consistent with our outlook for that site.Yes. As we've seen with the surge in e-commerce orders as a result of COVID-19, the increased demand has been filled by the grocery store, which has been supplied by the retail distribution center or by a restaurant, which has been supplied by a food distributor. Our recent acquisition activity has enhanced our wallet share of our key customers while providing further diversification. When did you guys start to see the benefits of people stockpiling food? And it kind of happened in two big cycles, right? Just, Marc, you mentioned healthcare costs in the first quarter and that you saw no material increase from COVID-19. Fred, on -- so I don't know if this is too difficult to do or not, but can you quantify the surge of activity you saw in March versus today? Right? Our same-store global rent and storage NOI grew by 6.2% year over year or 7.3% on a constant currency basis.Same-store global rent and storage NOI margin increased 117 basis points to 68.8%. So -- and the other thing to remember is the vast majority of our customers serve both channels. Approximately 22% of Americold's warehouse revenue is generated through the ownership and operation of some of these retail distribution centers. I mean should we expect that this still elevated pace is going to continue to drive elevated organic growth as we move into 2Q?Look, Mike, I mentioned on the other question, it's really hard to predict exactly how things are going to pan out. We are proud of our customer service during this COVID-19 pandemic.Corporate SG&A totaled $37 million for the first quarter of 2020 as compared to $31 million for the comparable prior year quarter. But yes, we went ahead and we got extra labor.We worked over time.

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americold earnings call transcript