and Matt, Full Quarter Thanks, Call. XXXX everyone, to welcome, WillScot's and Fourth Year Conference
like First, joining to analysts that overview I’d provide the brief turn us of Slide to company have a X, new investors today. we given and
and these solutions. they now about more than rental units, the working and feet their fleet those including is project, provide leader, provide customer value it's acquisitions industry, and an is on focus space, of the providing XX,XXX can service to focus Work, a We approximately on forget modular being their XXX,XXX these so our productive that We solutions market meeting mission our best, with solutions to portable what and innovative As to Ready space do storage specialty space embracing customers an goals. customers, are locations we through which productivity represent over in Canada When across functional growth. of space, it, sees. all Mexico. immediately U.S., our through XXX deliver our temporary of network proposition to new unparalleled the the is XX over our This us million square branch unique recent driving customers
with to to strategy strong accelerate turn our been has growth X, accretive M&A. our you’ll If already Slide organic
above summary, respectively quarter full do of January. reaffirmed our or to to adjusted year-over-year. the year a expect midpoint EBITDA XXX% pleased delivered without as on doubling We $XXX delivered delivered we the I ago, and EBITDA, Just which is our XXXX we’ve future. up overpaying report in adjusted and overleveraging. to we and the fourth company that year evident over were last same the million and revenue XXXX October slightly in in we guidance, of the a which a issued committed commitments we year our commitment of am XXX% continue in In XXXX on to XXXX, increased into which that
believe $XXX of million the delevering a Looking the had $XXX simple organically recipe while we EBITDA XXXX, to we adjusted business. the forward, deliver million all in to
rental outlook Importantly, I’d attributes we organic believe like embedded to our five within now fast-growing the due growth this this synergies underpinning is unique management’s largely and cost to portfolio. potential earnings point and services control specialty platform. substantial this in
from In revenue same were this momentum to basis. continue the as our preliminary This we represents Investor the the year-over-year rental XXXX, consecutive of XX.X% double-digit XX initiatives. our U.S. rates and the given trajectory significant a lease our quarter quarter Update in we the XXXX, included which up month visibility rate the average we pricing of expect growth at have Call. we in the segment exited VAPS fourth First, is and result ahead. modular fifth This growth and embedded result average durations look monthly January on as
$XX the or as preliminary results On our opportunity proposition million in rent simply January million the Call. increase Ready continues greater we VAPS over units the three on than level next increase to units new Update years in which current If return reequipped and side, revenue penetration. penetration, to value to at of This will we represents $XXX Work deliver communicated a over redeployed. this continue currently are Investor a realize the
to towards horizon. provide we Our over could VAPS time upside our stated this which believe increase penetration additional levels goals, longer-term are continuing
We bit the new will on context call. in important this later share development additional a
the ModSpace System Second, is complete. integration
the synergies cost $XX to be to XX% the runrate are of XXXX realize we payments expected million now these XX% expect of XXXX cash to cost expensed cost attributed of these have included remind, related in QX. our We fully synergies transitioned of fourth associated realization the I’ll and the with to to prior acquisitions. the quarter completed half in by synergies be of first
margin we’ve EBITDA expansion. accelerating growth adjusted Third, been and
expanding XXXX. substantial our $XXX have generation we CapEx cash we runrate EBITDA the million adjusted margins with be synergies. an guidance, achieve cash XXXX approximately these expenditures. to as growth flow EBITDA and with of midpoint At flow associated the to to $XXX discretionary of due nature Fourth, exit million expect one-time XX% to of realizing cost before cost we capital free our expect We
our and will accelerates in accelerating we annualized flow these free of payments of noted, XX% we $XXX QX completed be which fifth, inherent our to is our provide XXXX, net XXXX. adjusted platform we to be by be so of the flow below second objective EBITDA quarter in and cash XXXX. exit or generation as confidence, characteristics previously debt-to-adjusted million Xx income approaching of our the are at These shareholder cash with of expect times. million the second about net cash of discretionary of the our earnings we $XXX our extremely by range to expect XXXX half As EBITDA, excited And creating value into XXXX target generation runrate, free assuming remain our committed line of X cash summary, flow In deleveraging leverage goal and X to long-term net future. we achieve our rate
$XXX confident well a while in the exiting all runrate of management’s XXXX million within this EBITDA We adjusted delevering outlook control, believe business. is and achieving are
turnkey and X, Slide scale, like to Now turn do. to deliver scope, commitment I’ll service has to know we company capability if the that the
is combined were Acton, would recurring over EBITDA end-markets, period. revenues if we and of very This billion and the just our have business. them leasing over Approximately, basis, revenues adjusted $XXX $X on diverse own our our and ModSpace is For business XXXX million. three the of our a been a entire as U.S. serving Tyson generated group forma inclusive our pro adjusted of profit our are XX% for XX% gross in from the derived acquisitions, of
Scotsman. really attributes are three our Williams Beyond advantage, scale differentiates substantial there key that
Work. business through repositioned Value-Added of Services unique value or strategically and First, our We’ve VAPS. offering to the Ready this Products the expansion of with proposition
driving it’s Our customers accretive with highly returns. value our growth it and
and operating have we platform. differentiated Second, scalable a
the to Over leadership. capable characteristics. platform a efficiently this of differentiated capital market companies. people, we’ve in acquired and our scalable management, and price platform and leveraged includes operating highly We’ve years, asserting operating and This several swiftly platform processes created allocation past technology sophisticated integrate invested
of Third, we unit which visibility high future very attractive provide degree a into have performance. economics,
our profit which lease long-lived durations plus underpinned from of our is by average with gross months. XX over coupled leasing XX% XX years, derived recall, of business, You’ll adjusted typically assets, is recurring
one Now organic to platform I’ll direct we’ve doubled In by over size you highly the M&A. operating year, strong leveraging of accretive to company the little the a Slide already growth with WillScot X. unique further the accelerate
and issued million boxes is the The recapitalize XXXX public the EBITDA EBITDA return of midpoint continued since late full last on in above has is the company revised October. As we will XX% year-over-year of last to markets. of adjusted to our a basis the $XXX year, and guidance our November up arrow, just XXXX the above year depicted accelerate
million, of a of own was quarter XXXX business fourth Our $XX reflect this XXX% the a which EBITDA $XXX are and revenues ModSpace. quarter up underlying first XXX% that year-over-year, million the better respectively as and full adjusted
bottom, integrating across acquisitions. we making Russell the while XXXX, the three joined the period same During and all
commercial systems of to potential. $XX us earlier to of a VAPS-related $XXX than the growth enables execution realize Our of begin scheduled on operational the annualized million synergies, million and cost ModSpace annualized integration over and and revenue budget
Ready highlight that their I are bring journey, last Slide like talented a integrating we’ve an our the to outstanding to reaffirmed proud with guidance of of am peer fleet three and turn of we Tremendous the companies safely as and customers of going via to accomplishments. is efficiently and team these Work combined efforts solutions. adjusted on hundreds press this expanded XXXX As EBITDA X, forces release part extremely that companies, people to committed night. I’d we to and And
XXXX full in our to will take through expectations. adjusted Tim more you like While EBITDA highlight guidance I’d the financial detail,
simple delevering business. We in the million deliver organically have XXXX, EBITDA million $XXX while very recipe adjusted a to $XXX to the
ModSpace integration. First, given place, we’ve already in ingredient one completed the systems is
rate, cost second deliver to the optimize associated $XX VAPS. third harmonize is is and to million of and further synergies, The ingredient the utilization, agreement
$XXX XXXX the margins free We generating substantial of of the and outlook discretionary full adjusted XX% are with in particular exit flow EBITDA about XXXX. resulting runrate as cash EBITDA excited year we approximately million
largely believe delivered same this is outlook going within expect and to we last do the we Importantly, year control. We our on our forward. commitments
like Slide to synergies Turning aforementioned X, acquisitions. cost the expand related to upon to I���d the
integrations further complete, estate WillScot real to of acquisitions of quarter cost we’ve integration non-people-related scalability the these of with realization. before. of synergies There and testament with transitioned XX% cost prior synergies fourth synergies the with changes executed are cost are associated acquisitions ModSpace and With to headcount operating million be platform these These consolidation cost no runrate balance related consistent systems approximately included the synergy are $XX the platform. required the the over in to between our annualized The as redundant XX% and mentioned in balance split expected over branch, other SG&A. to XXXX to a
delivers examples associated cost more than million the of So synergies, it’s million an We’ve associated restructuring are respective cost annualized soon of first book end be which properties, be. now with to million costs $XX book upon cash million which ability XXXX Based equation We utilize. to upside made as $XX potential to be are financing significant the to net value basis. order branch sale of evaluating for with progress, and which is selling properties efficiency, associated of million integration utilize continue we these is $XX with quantified, the estate fleet which include, our this million. included remain own or scale I yet net we in are $XX yet for synergies surplus also XXXX further alternatives in the book $XX million anticipate totals In XXXX XXXX. we logistics synergies. note realize the to procurement, and we The additional of cost expensed potential real of disbursed net and the optimization, these simple on to will evaluate confident in now properties expensed. proceeds to real realize remaining $XX expect collective throughout otherwise own in from optimization. be we will either cost $XX with portfolio, the million continuing surplus value, evaluated value A fleet expect incremental XX% million a would these and $XX to not opportunities half other or of estate initial payments and are go-forward by owned $XX listed of XX sourcing few with that which now progress of there
over million synergies, we a $XXX attributed the annualized of million opportunity next turn to the Now, to in as revenue addition growth Slide X, three to VAPS. achievable of $XX there is cost years
year delighted an the in as to the the is Focusing quarter. many LTM X% value on confirm the LTM over charts, I rate VAPS up levels acquired top achieved bar month we of office particularly per $XXX pleased am and levels from all am this in result prior XX% that in of XXXX. rate units prior of the of across delivered average period customers up achieved new with includes to the deliveries sequential This I left-side customers.
we offering the may Acton fourth began and the ModSpace customers early You XXXX. solution recall, second customers this to quarter quarter in in of to
penetration increase this our believe additional horizon. can provide before, we towards goal over long-term VAPS are and to levels as time continuing Our this upside stated noted
XX average is Beside the immediately million the expansion it simply for on the their long-term for not are $XXX the units rent, of million. which value redeployed. focus the units the with currently reequipped the is units, penetration will M&A, aspect annualized of rent leases units of the behind units XX.XXXX which their and on to a on which Ready than of of solution. is value between the growing is $XXX is delivered were offer currently time and Work companies, This a from takes proposition equals represents remain unlevered time return greater rent faced be $XXX, VAPS $XXX opportunity provides on year business Increasing current by key proposition for of realization the to acquired all to them Many which math and fastest lease time last business. approximately focus of these solution the the months, the ability work. It’s revenue the of which our value growth of Now difference this on which delivered did from simple. the is the IRRs. Work average turnkey Timing getting returns affording are by simply to with Ready customers XX% on our to $XXX
to We to and expect expand new as to demand as well offering value both over we increase the customers continue proposition acquired the this penetration for increase of legacy as businesses. years several customers next our
with which January shared this also consistent snapshot I’ll foundation the Turning to underlying the entered U.S. am XXXX. Slide business. update representing XX, of for pro is the the in key call. realized the slide I’d a fourth this on we like to the since leasing provide primary the that quarter a of are I trajectory XXXX KPIs basis note runrate we of they preliminary the results data during forma as the best reflects first
the year-over-year solid on the focus down as left capital acquired in space as X% VAPS XX.X% representing U.S. basis modular chart, double-digit fifth both in utilization tools. chart, fourth QX, up the allocation middle increases. expanding XXX units left lower rent was by and idle is across was increase In optimization a driven rate company up integration in we space rebalance the modular U.S. optimization, WillScot of points top the fleet. AMR continued the on on VAPS our First, given The XXX penetration rebalancing price network. left major modular XX.X% And space branch modest year-over-year and rate the consecutive quarter quarter, fleet of the began activities were and chart, executing to expansion the
unit a XXXX. mentioned, As year-over-year first remain rent basis by end transitioning we to a on of growth previously the year-over-year to expect the on XXXX through X% half down of
subsequent VAPS and rate fourth, throughout of focus third, optimization, first, integration safety of penetration harmonization remains and and periods the was asset colleagues, our these Our optimization primary utilization. second, the and
to growth as average we double-digit across combined continue on XXXX, and see rate drive revenue rental sustained to year-over-year forward look we value-added we products pricing As the portfolio.
XX it ask expand demand to you Slide end-markets our order upon a Tim, your turning over I’d our turn Before to outlook. to diverse attention in bit and robust
left chart further profile. the depicts of of First, in customer the I’d pie to our you to bottom slide which this like disaggregation direct a
now representing the revenues. diversification highlight customer acquisitions. highlights are which the level recent the XX% X% about very includes than are, groups. in database fragmented us significant customer less individual XXXX mix. six commercial revenues. aggregated We’ve as had no for actually by and are and are overall representing this WillScot the providing diverse SIC the end-markets our the that while have comprised slices order customer through those is black end-markets slices disaggregated highly of few A joined well and collectively into end-market top-XX more presented at the XX% of underlying the and customers further Our revenue with we data first, Previously, an the They This our construction end-market green industrial groups construction dark to which as XX portfolio. legacy the data customers commercial/industrial of of end-market discrete represent Code, than
quarters stable prices. revenues oil These revenues than half major energy, upstream late downstream as gas. in will have the this several decline contractors oil XX% itself quarters. our represents of than are last natural end-market finally, construction of several our projects and no represent mining segment actually the other several in typically more and mid end-market upstream resource as diverse bottomed customers’ they associated with markets utilities other end-markets with Non-residential associated only ago, Second, customers serving revenues. the which remained for And continue these following The of this and largest is of and years. of quite from stable are has are which group, X% to in these end-markets. is general majority over remain energy Less revenue our and discrete one XXXX
demand. upstream medium potentially to longer-term positive and quite as across a end-markets. stable Our also prices to in be increased remains external forecast the increasing continue highlight simply few our and oil see strength demand indicators. we outlook would the catalyst a like XXXX outlook for remain to I’d diverse Overall, markets although relevant assumes these
First, for Rental is the XXXX. Association American X% revenue growth forecasting annual a
and Second, Billings for the X Index ABI Canada which XX.X on just for construction months. was the strong finally, or over growth AIA been to forecast the continues are has Non-res has forward X%. a remain a for U.S. positive current and aligned same Consensus long-term and starts in basis with is construction levels XX over period; supportive months forecast a foot to looking average great X% square growth Architecture with XX X% above non-res activity which January, XXXX is indicator been GDP near generally leading
While largely would net currently expect to outlook, infrastructure ,we be investments XXXX. many in demand U.S. Based we in further of not this growth included substantial are in to in implemented our investments of $XX strengthen bills million and as underpin any million our highly once and end-markets. $XX approved expecting. our diverse CapEx discretionary spending outlook upon to continued expect growth-related we’re end-market These assume range strength the and VAPS
maintaining as growth returns. We allow strategy, flexible markets will support be diligent balancing in with and growth investing our capital to long-term
a to cash of the which and month model spending which lease don’t free us at to business the is support long-lived flow short-term, over the XX reduce coupled our average capital and of extent markets strengths spending allow we As the have drive one growth. with duration together discretion reminder, key assets, in over capital
I’ll to over With who provide reassess, which a additional and We that, capital. control, allocate process hand our through Tim, disciplined quarterly it we context. have will
