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TORONTO, May 15, 2020 (GLOBE NEWSWIRE) — STORAGEVAULT CANADA INC. (“StorageVault” or the “Corporation”) (SVI-TSX-V) reported the Corporation’s 2020 first quarter results and increases its dividend. Iqbal Khan, Chief Financial Officer, commented:

“We are extremely proud of our team for their ingenuity and dedication in quickly adapting to new processes and for being committed to providing exceptional client and community service. In spite of COVID-19, same store performance continues to be strong, with 7% year over year increases in both revenue and NOI in Q1, both of which exceeded our forecast. Our business is resilient and needs based – in good times, people need storage and in bad times, people need storage. With the strength of our balance sheet, cash flow, our entire team and operating platform, we are in a solid position to navigate forward and will continue to be disciplined purchasers of assets, while focusing on innovating and streamlining our operations.”

2020 First Quarter Results
Revenue for the first quarter 2020 increased to $35.8 million compared to $26.2 million in Q1 2020 and net operating income (“NOI”), a non IFRS measure, grew to $23.1 million from $17.4 million for the comparative period. Our cash flow from operations increased year over year and when combined with our financing and investing activities resulted in a cash balance of $14.3 million at the end of the quarter. The Q1 2020 net loss of $8.4 million (net loss of $8.8 million for Q1 2019) is after $20.1 million of depreciation and amortization and deferred tax recovery recorded in the quarter of $3.9 million. Both amounts are non-cash items.

As a result of our revenue management program and operational efficiency, Revenue and NOI from existing self storage stores increased by 7.0% and 7.1%, compared to the same period last year. Funds from operations (“FFO”), a non IFRS measure, were $7.9 million for Q1 2020 compared to $5.3 million in Q1 2019, a 50.0% increase year over year. Adjusted funds from operations (“AFFO”), a non IFRS measure, were $8.8 million for Q1 2020 compared to $7.3 million in Q1 2019, a 20.7% increase.

For a reconciliation of the above NOI, FFO, and AFFO amounts to IFRS, please see pages 12 through 17 of the Corporation’s Management’s Discussion & Analysis for the three months ended March 31, 2020 filed on SEDAR at www.sedar.com.

Increased Dividend
StorageVault is increasing its quarterly dividend by 0.5% beginning Q2 2020 to $0.002680 per common share.

The COVID-19 Pandemic
To meet the continued demand for our services, we modified our operations to operate remotely at all of our stores to ensure our teams and clients are safe. Our teams remain fully employed and clients, both new and existing, are able to store and access their valuables. Our business is needs based – in good times, people need storage and in bad times, people need storage. We are extremely proud of our team for their ingenuity in quickly adapting to new processes and for being committed to providing exceptional client and community service.

The impact from COVID-19 on the Corporation’s operational financial performance during the three months ended March 31, 2020 was generally limited to reductions in new rentals and a reduction in the number of clients vacating their units starting the latter half of March. The Corporation elected to postpone auctions and rate increases to existing customers beginning in mid-March, in May we are selectively re-introducing these where appropriate. While clients may be further impacted, including through unemployment, which may reduce the ability to pay, the Corporation has experienced no meaningful increases, or has provisioned for, in accounts receivable.

The Corporation continues to execute on our strategies to attract clients through search engine marketing, improving our online presence, virtual community connection programs and the development of large national accounts to fulfill last mile storage needs. We are capable of leveraging our national footprint to offer a complete storage, inventory management and mobilization solution through our self and portable storage and records management infrastructure. These efforts allowed us to partially mitigate the decline in leads from the lack of transitional activities experienced across Canada and should place us in a strong position when we exit the acute period of COVID-19.

As at March 31, 2020, we have $14.3 million in cash, $65.0 million of credit availability and we continue to generate significant cash flows from our operations. These liquidity options, along with our strong relationships with our lenders, provide us with sufficient borrowing capacity, refinancing and liquidity options to take advantage of purchasing opportunities that meet our requirements.

Our Strategy
StorageVault is focused on owning and operating storage in the top markets in Canada. Our goal is to have multiple stores in each market, with complementary portable storage units and records management storage services, 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 and record management businesses.

Further Information
For comprehensive disclosure of StorageVault’s performance for the three months ended March 31, 2020 and its financial position as at such date, please see StorageVault’s Unaudited Interim Consolidated Financial Statements and Management’s Discussion and Analysis for the three months ended March 31, 2020 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:

1. Net Operating Income (“NOI”) – NOI is defined as storage and related services revenue less related property operating costs. NOI does not include interest expense or income, depreciation and amortization, corporate administrative costs, stock based compensation costs or taxes. NOI assists management in assessing profitability and valuation from principal business activities.

2. 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.

3. Adjusted Funds from Operations (“AFFO”) – AFFO is defined as FFO plus acquisition and integration costs. Acquisition and integration costs are one time in nature to the specific assets purchased in the current period or pending and are expensed under IFRS.

4. Existing Self Storage – means stores that the StorageVault has owned or leased since the beginning of the previous fiscal year.

NOI, FFO, AFFO 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, FFO and AFFO 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, AFFO 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. In addition, the Corporation’s definitions of NOI, FFO, AFFO and Existing Self Storage may differ from that of other issuers.

About StorageVault Canada Inc.

StorageVault owns and operates 202 storage locations in the provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, and Nova Scotia. StorageVault owns 154 of these locations plus over 4,600 portable storage units representing over 8.2 million rentable square feet.

For further information, contact Mr. Steven Scott or Mr. Iqbal Khan:

Tel: 1-877-622-0205
ir@storagevaultcanada.com

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