WSC - Earnings call transcript Q3 2020 | WillScot Holdings Corporation

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the WillScot Mobile Mini Holdings Corp.

Third Quarter 2020 Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your speaker today, Matt Jacobsen, Vice President of Finance. ahead. go Please

Matt Jacobsen

good and Thank morning. you,

forward-looking Before we Reform our to Act remind under contain that of XXXX. like release, I’d your Private comments Litigation may responses to press and made you call defined begin, on Securities as statements questions the today’s

is Our business these results actual uncertainties a in Harbor of may materially from subject are statements. Safe variety uncertainties, A and these consequently, risks and control. in which of And operations forward-looking statement summary press many our are to the of included beyond our differ contained release.

more of filings, and complete our For Form our other a XX-K to SEC various on description including possible refer risks, please other Form quarterly and XXXX our reports these XX-Q.

the Relations information reflect our on revisions Mobile release changes in or You to no expectations. that and WillScot publicly statements these SEC website. to events, assumes note to in can Investor new no obligation circumstances commitment any or or forward-looking Mini subsequent makes filings on Please or website update access order

You on statements, speak of which today. these as reliance should of place all only forward-looking not undue

You available A expressed of in the included include the a or the via website. discussion financial today, XX-Q be the today’s WillScot included on for note certain we’ll Mobile historical basis, filing call for of submitted QX Mini our to of presentation the the website. of are is of be third our XXXX. references through basis. replay today’s information Relations press slide operations or as night, a presentation the make ended earnings SEC. company with Please and this XX, last the prior The on IR issued on X-K months release. should the Today’s section results tables and we comparable SEC call a to release September that for our on presented press is webcast the We’ve Investor an for posted of section XXXX, or We’ll will of also copy the GAAP the conference reconciliations also quarter available XX-Q to to our of call non-GAAP website. information. on SEC release refer today’s accompanying three Later XXXX release for periods.

Mini Our reported include period results merger. only the to Mobile subsequent the for

on results presented historical are forma better is results and include merger a and performed over XXXX, the pro Mini’s companies of the representation Our occurred as combined Mobile January and financing time. transactions if X, had how

today, Kelly call will me of Soultz, Now I Chief our Mobile CFO. Boswell, that, turn got I’ve with WillScot and With Mini; over to Operating the CEO and Brad Williams, Officer; President Tim Brad.

Brad Soultz

I’m everyone. the welcome like third call. yet demonstrate Brad XXXX morning, platform. the again growth to Good phenomenal earnings The and WillScot quarter Mini everyone Soultz, Mobile value Holdings, to of I’d the CEO quarter creation Matt. potential Thanks, WSC of third company’s results and consolidated

higher additional investor differentiated X this level Before key I like unique deck. that and I’d over a back call a to presentation platform. of third turn and the to moment for quarter step and to underpin Tim turn the Kelly Slide take truly Please highly at to context, outline attributes

productivity needs, This foremost, is the experienced to us clear and network our the times trying serve are over in allows perfect, First market quarters. see. better two critical When space our we and undisputed and unparalleled storage especially of branches all leader. customers last are customers’ XXX market our solutions the turnkey leadership our

stable Targeted very XX unlevered than VAPS customers, XX go-to-market deployment customers strategy lease XX XX% represent for yields of value-added as or market than less and we’ve and repeat XXXX, and predictable leads our We in diversification along return our discrete top to with new third these with our average for greater that and screening revenue. services the and capital social in spanning flexible revenues. greater continues lease Our to Over reposition end fleet XX% We capital the XX% from additional underpinned This are than distancing expand, useful we’ve lives of durations by assets our diverse on portfolio which products very needs a done as IRRs. opportunities of on quarter. allows a provides of for which quickly vast units capture stability evident growth lease markets. and for stable recurring and top a months, us and serve provides decades. is experienced rent in of predictable,

and significant materialize, with these agility. infrastructure the will investments U.S. rigor same on we As capitalize

already have months. this growth, high-margin last we simply our the powerful associated VAPS There’s idiosyncratic achieved over levers. a We million the same that growth realize multiyear XX In revenue levels tailwind $XXX over unique proposition. organic of several growth to order we’ve value with to penetration maintain need

increase of penetration to our stated of XX% continue we driving This double-digit in rates. expansion lever XXth extend increase and VAPS U.S. growth been would has XX% quarter this consecutive about Modular target we our offerings, our the growth. As extend and towards further of

which growth rate Our yield management the provides driving tools tailwind. an balance and revenue of are incremental growth, optimization that substantial

Mini presents Mobile with revenue two levers. merger additional growth the Now

cross-selling. via first The

storage begin Kelly have and XX% gap through currently as storage require by we we vice to both end demand that space and team XX% pulling early wins a the turnkey harvesting While and already we only orders are solutions, customer modular of modular estimate bridge markets our diverse overlap. versa.

VAPS tools storage of yield American business. proven to the Second, segment management, we North optimization intend the deploy the rate offering across and our

cost M&A. safely for the we’ve over synergies acquisitions. accretive over years three We’ve as absolutely proven $XX last platform swiftly XX have million realized integrated We and of

forward, $XX to with in an the $XX these Looking incremental now synergies transactions we prior reloaded the than associated merger. synergies million realized million incremental remaining more Mini of cost with Mobile related

drive and efficiencies. operating significant enable Our growth scalable to technology continues to both

The bottom line XX% and The bps prior adjusted embedded third quarter margins year. yield will top drivers time. EBITDA expansion over of XXXX above further aforementioned or XXX

with flow, Now integration affords us to of expect we which Mobile these results full $XXX combination capital in with the Mini, free unique generate free expanding annual Upon cash flow. robust differentiated million respect of optionality cash approximately allocation. this to completion attributes of highly and

XXXX, the way, value our repurchases. growth and costs we We’re to ability X.X opportunities share this and remain to third to extremely achieve WSC all confident the funding range million embedded growth target given a end of ratio cash top the bottom level levers. excluding in shareholders deleveraging X.X through our free achieve rapid transaction multitude $XX by the of generation leverage merger-related to committed while in flow line Along quarter, organic of incremental to returning of turns and

then destination. Tim, that would as three turn merger call years that not Please like approximately with to just of ago, Kelly adjusted over Now is $XXX while note the Mini is Mobile WSC million recall this I delivered the our and to truly I transformational, EBITDA.

adjusted turn next Kelly. further shareholder represents come. the and simply The years over in to creation with revised to expansion a from year the call I’m new of which compound increase WSC to Xx margins EBITDA full XX%. XX% exciting headlines for to value will With that, returns, Our pleased guidance story, Mini driving the the chapter growth XXXX merger Mobile

Kelly Williams

and report number thanking and have our and as so Thanks, Operating Chief priority done the officially our Mini’s our our organization, record to an healthy integration the to achieving employees progress Brad. essential continued teams provider morning, performance. pleased making service first to I’m to quarter safe at to by but nicely health customers for completed Officer. everyone. Williams, begin Mini. have best I their continues safety Mobile our together. employees been always am teams safety while WillScot Good as Kelly WillScot paramount I President Keeping one want and our Mobile has

Mini efficiencies remains While of the will on aligning during see XXXX, WillScot platform in the in QX half we focused integration operating evidenced addition tremendous our as forward strong the financial to Mobile execution operating a single performance. on driving by team business and first

of strong the pilot off addition sales In quarter. our operating we in kicked programs also to QX, the the in performance first and

We third as will Today, lead demand our opportunities that and the of team two market KPIs why clear an and the sharing well seeing the to as provide are I trends selling companies outlook. indicators together. current stronger update created discuss quarter through are are

four more Following Storage, segments Tim the touch to the detail merger, segments. the The to segments with the to America segments from with reporting segments and align prior on in reporting & North will prior America merger. we’ve Pump the Modular Tank segment aligns expanded the Mobile segments two our North UK Storage business the reporting legacy merger later. Mini WillScot and

have combined stabilized in further The demonstrate headwinds. third non-residential the Modular America model. business North Storage results the and of Both construction spite North quarter of America financial resiliency demand the

also capacity as challenging across XXX rates raise recognize allowing to tremendous from product advantage, service logistics customers capabilities a our the Customers North where segments to meaningful continue scale are in competitive and they to our and be branch need benefiting us network America, allowing We This us. closer leverages combined environment. our business both advantages. in us greater

year, customers and the model. Looking at priority Slide our has as health business our employees, the mentioned on transitions top through vendors executing pandemic safety earlier, remained the XX, and as of our while

are complementary a helping pandemic fight company, across the full of customers platform we As to combined our products.

their CDC guidelines base has space both Our sustain customer the segments demand for ability diversify and pandemic. flex the enabled to during to customers, business

our are offices screening. often for assist bundling to and temperature We as and storage. for utilizing customers testing additional businesses storage supplies We testing through further facilities, related drive-through checkpoints offices and by services managed COVID

classrooms as returning providing students is additional education with temporary storage We need also space school. are evident for and for to the

being quarter. the order which down than prioritize XX% XXXX. in second North in prior America from trend orders, Slide orders that Similarly, moving QX, greater new America QX. XX% the rates QX down sequential construction XXXX. The show compares second shrink XXXX. new America to them were basis orders in North indicators Storage left, XX, new period monthly weeks approximately the teams the in top October create Starting is shadow green basis order order were page. graph, units been bars below significantly behind a QX volume. compares monthly represent QX North new North Storage’s during new Modular’s down gap the top America blue XXXX, to to April end America improving which The X% a outside with rates commercial the of represent our year, continues to other orders excluding the year-over-year orders sequential year in the units in QX. for being of monthly bars seasonal the both during down the past Modular with over the North bars demand charts The Modular segments the North the market U.S. the new the within Modular versus same on prior as two net America These and gray only demand you in the prior to Modular prior only from America at can operations XX. quarter. to This you on year, business for continues of North into seasonal year-over-year represent of orders this versus to and net U.S. new excluding see year in on trend X% for improving will U.S. see since X% have direction, improvement charts rates as the with Storage North four America right Turning order

earnings discussed units, to to business refer holiday-related demand in these year Storage the on in our every call, retailers. North from seasonal large increase which QX in a experiences big-box We QX demand are nationwide the ordered of routine due on as America of As seasonal America And additional the activations prior virtually October. flat as the in a holiday of deliveries end year’s site. as completed storage business inventory shopping of to remains Storage has expected, seasonal North activity. terms seasonal of for volume majority

decreased year prior pandemic, rent lag and business as unit on have in on observed delivery expected. year, relative the just slow payment project last change slightly in Though seen XX, Modular both QX. continued to behavior. behaved have we Slide North rent to from no customer to the segments, returns units have average on during America turning growth have segment completions we and COVID-XX to units Now

rent further months. North rent which slide as leasing This the within and on units with units average of duration charts recurring depict an than X.X%. than on sequentially the core increase churn QX seasonality or sequentially rent quarter. model, and proves end prior XX more resiliency assets average October increased on over volume. rent our with on segment of September X% Additionally, saw of the business the on is X,XXX based the units year segment’s the long-lived Storage ended had of from for America more QX, The up this lease on complementary of of average units slow

to XXXX. Now North impressive rate American of on North American achieved and And this another America the segments competition further the pricing up year-over-year North to monthly VAPS also financial sequentially saw in expect look cross-selling XX% pandemic, great believe Modular marking continued growth achieved increases of The momentum consecutive organic such advantage in North We Mobile increase as scale XXst modular leasing VAPS $XXX, our offices. the continue modular service and Mini’s in in sequential also steel increased to XXth to in year-over-year stream AMR of with and the fleet we which the last increased rates, business of a average in scale. rental sequential to America and quarter XX per for lieu on U.S. so existing challenging up in for ahead. VAPS modular we terms per both XX% QX rates this rate the over average quarter. months in of quarter unit the also to X% revenue to Modular – increases AMR, increased widens America Modular known Slide XX, increase QX portfolio from our only an to we an rates double-digit as X% segment the see segment. increases with space Note, rent the times to differentiation represent QX were monthly opportunity Delivered ground and level continue AMR bundle as WillScot Storage growth revenues. these. on consecutive gap sequentially competitive quarter by XX.X%, third drive year-over-year QX legacy rental illustrating this to for in to segment also over rates growth. marked in tailwinds year-over-year great the product, $XXX. rate QX, both continue X%

of sales including ability annually increase rates and high based of the force customers with levels Mini our Our customer high-quality a Mobile to our servicing is products, on service, use large customer technology, Connect, portal.

come amount of optimization application same cross Lastly, and of the the alignment operating though efficiency focus from continue a will of practice platform, creating the significant of efficiencies and expenses sharing. merger to our we through best on managing

margin future. exist turn cost the very call points for Tim. near interim. opportunities, the We increase processes potential revenue, each the over the expect power that, a these are prior XXX With actions combined segment’s to in company, financial that in on come to on the the adjusted basis honing growth buying in of recognizing highlighting and capitalizing or combined of benefits on to opportunities assisted that expertise logistics Identifying driving we of many margins few rental EBITDA technology in expansion leveraging our to I’ll

Tim Boswell

Thank you, Kelly.

of are build. will metrics us and it’s strong which and revised foundation on clear, into QX from with jump for the highlights review run will Let’s increased guidance XXXX and the combined the get details board. potential financial our on earnings Slide financial the and scale. updated from the XXXX momentarily, a our into more our section rate quarter, across And continue XX have the the into we a though I’ll which bit trajectory the to summarizes demonstrates put heading midpoint we accelerating our guidance. solid financial improving results EBITDA

XX use for Mini the snapshot segments three on segments and segment, we into new that simply Page consolidated represents the We and reporting unit the details. a legacy reported Storage Now provided forward. quickly the North before added average Tank will Modular Historically, those reported gives Pump, WillScot and rent the segments. additional these the America Other America and Modular North consolidated and rate of new going North we’ve U.S. rental results business. you Storage, which into two that Modular America. historically. jumping United then detail Mobile We’ve of Kingdom segments: WillScot

X% pro basically America. Tank results a to as in example, offset QX the down, note that Mobile way represent year. to prior storage delivery units Mini’s increased and North basis. versus so weighted basis that support but Profitability Relative mostly We’ve to a by XXX in by the our sequential continue solid it costs and you’ll contains These improved is America pro rent. margins were and XXXX, as office down $XX.X to as year-over-year on storage our by synergy modular EBITDA segment WillScot flat revenues XX prior presented QX over chart & have the align heavily realization. all the revenues units. Storage basis growth adjusted X.X% to regarding sequentially the As delivery North from on Total forma sequentially were an expanded and XX,XXX million level segment variable were and versus results legacy points QX basis as legacy segments. margins fundamentals forma ground revenue and Storage Margins does Similarly, Modular fleet. cost on of bit both it investors Page our leasing lease revenues results the closely across year, appendix offices this due points XX,XXX are from increased logical results. segments reductions the operating but possible XXXX for in both detail strong increased very and that quarterly to improve background, variable a growth XXXX Pump revenues how a in XX are available and reflects both and for companies. historical to With XX-Q. more Those way the here shows the business we It is reported analyze results in

QX, the lease As to continue guidance taper We well into million a in expansion flat in we margin and be in it look representing headwind pretty of modest as sequential some scenario, get revenues, implies build sale delivery to be revenues midpoint into the down particular, will revenue QX. that guidance, should $X that aligns year. of sequentially sale year-over-year, the roughly should which revenues end our implies our and that and EBITDA also

in Tank stabilizing and left visualize this with QX in chart, can You revenues the and Pump QX. bottom

You It for delivery other are up building taper lease I’d ramping to to normal revenues can QX QX segments. than would revenues expect in did increase our in revenues last year. QX, they in QX sale sequentially rather be again see the and how in before like and decline

from in XXX Lastly, adjusted QX impact quarter segment. basis, the provided restructuring are per Modular Mobile a But and free interest the costs. incur excluding second of the due discrete in efficiencies not here experienced the in of cash We’ve environment used the of within coming in forma trends $XX on addition costs half I since CapEx down Mobile well CapEx demand significant completion XXX the those chart, right QX picture, of working demand based flow and well top costs has will delivery of fleet XXXX. see at Mini these been transaction that’s operate of due for upon for by to in is of on demand CapEx range. Slide as approach we much clearly would integration integration. to to onetime million in as shown $XX XXXX of stabilized continue can investing to increase to we or up into expansion, have of half of expansion QX points volumes charges revised reducing levels of the these since though basis QX, on activities million basis above an Mini’s surging with in we and the operations together consecutive QX. the ModSpace Net the basis XX quarters, need do in bottom margin the I as-reported we capital nature. pro based operating $XX basis. XXXX. inclusion to we’re clearly, is on see levels reduced growth cash to levels, a cash flow page, five our cash margin an reduced and on we bridge in see the as-reported year-over-year points both top year-over-year not us reviews the see. reduced costs, XXX% transaction had continuing At Cash the beyond the million

reminder, changes we a quarterly As lead quickly we market react so activity. capital in process end times, can a allocation zero-based with to run short

QX prior debt and and unamortized activity, our valuation million debt costs non-recurring, the to WillScot QX. Moving structure, U.S. approximately benefit bit debt noisy I’ll million the more improved EBITDA on the fees write-off a to assets. That’s to a heading related merger. financing into adjustments of million in $XX our significant loss The extinguishment NOLs we’re out on the further obviously was merger a Federal and Slide the we The new structure. $XXX of of the non-cash had to tax adjustment few refinancing which XX. GAAP income due deferred call is allowance very pleased with tax deferred reconciliation. and is redemption our $XX simply in

income addition of NOLs. of sources have which the we new our Mobile With can against Mini, apply we

as released tax the shows allowance, benefit. a up we it valuation onetime So and

on closing QX. bonus a we see together were cash in $XX shield As depreciation, In also year approximately to we of any billion in to current combined future, chart, ability X. of such the five both costs income the NOLs accrued costs, you had fees, and the which professional mostly already policy. paid million of million deductions a federal as taxes cash expensed plus $XX now meaningful QX, have of In least represent transaction reminder, under July which in middle $X the other over paid at apply transaction from upon were four that

million integration of approximately incurred the charges integration $XX quarter. Lastly, in restructuring costs costs we to beginning some and as expected, with incur are

should run tapering per these XXXX. million previously, between the discussed in before $XX and million $XX off quarter second half we’ve of As

us. is transaction So costs I line the are fees integration the here from aside behind punch that just mentioned,

We will strong a income in position be forward. going pre-tax

We about and closing million merger generated balance costs, of and debt ABL as adjusted migrate cost our down as we cash interest for on so meaningful a range million excluding last we not brings weighted talked I more effective the in X, XX-month notes average forward a expect I’ll in new our Page cash and with down debt free do to of cash over flow our we normalized amortization highlight XXXX ABL just payer for GAAP approximately of XX% of purposes leverage After across using brings going of some expect changes. units. XX all federal deferred times trailing taxes million. our August, surplus structure four to X.X in be U.S. tax through of paid July well five pro our XX% billion issuance to our to rate X%. XXXX notes. That our facility to nearly of some $XXX In is our the refinanced internally quarter, on EBITDA XXXX $XXX our cash to availability This approximately expense $X our financing to the business of annual years. forma leaves us $XXX

reflect the to for So environment execution and expanding generate we outlook QX. visibility cash. Page leverage and into XX better our demand our is financial We’ve liquidity strong rapidly updated is as on our declining

for as with in adjusting stabilized. forward degree adjusted our possible. high forma maintained for business, the visibility as environment, QX the EBITDA After we’ve increased much our market outlook transparency have guidance the as in of sudden our outlook Given recessionary pandemic we’ve conditions pro incrementally throughout

top reduced pro our up of $X.X On guidance billion for year. end between $X.XX and revenue end we’ve the to left-hand chart, forma revenue expect the the and billion of

taken open in range. prior revenue particular, of the which the sale have rebound, possibility and top of August, in revenues, a V-shaped strong Given delivery into we uncertainty the left half could the

come see though growth revenues our down even sequential in revenues. in for should we So those to expectations leasing expect QX steady

Conversely, of for reflected strong prior range We’re and end that based EBITDA a well. to simply environment. as on we’ve our bottom extreme QX, scenario ruling an reduction pro out million forma upside the $XX with removed the a our performance the adjusted CapEx QX for range and market stabilized we’ve

the million We deliver $XXX X% ranges. EBITDA adjusted of EBITDA our at net solid new expect midpoint guidance of adjusted less CapEx to growth and

the WillScot of midpoint and think to $XXX million EBITDA see from million $XXX prior of in is for we And contribution strong approximately versus can You year and Tank adjusted EBITDA approximately our Mini. through in is continue as Mobile truly merger signs & our This is activities. sequential of showing improvement. Modular course and integration segments performance as Storage Pump well XXXX extraordinary a the of pandemic, a growth

to grow position bottom top with given is powerful levers of and that internal the confidence team and competitive Our into in the and past available looking XXXX all superior XXXX line. the visibility our Brad? the our business,

Brad Soultz

clearly Kelly of Tim. again together. companies quarter, recap Thank the was third an you, for packed two great stronger with outstanding you, continued outperformance. are Thank These which

Now turning to Slide XX.

churn The our rates in model strong. in revenues, the evident built results. is slow resilience Our fundamentals today our are on and increasing recurring portfolio rental of business

my chapter and growth As these come. Mini comments, allocation. highly compound to yield and robust are cash which of in combination management’s outlined solely with attributes on flow, The and opening merger Mobile headline introduces we for exciting WillScot the with will dependent to shareholder execution. new earnings years continue affording new in creation page fully platform resulting continue this embodies unique respect are our powerful the free continued us idiosyncratic differentiated value expanding capital and substantial on control story, levers within growth. this highlighted drive revenue to full optionality The Notably,

you a our three while WSC going ongoing committed merger point, to by remain in and concludes above you loyal ratio safety today. I’d continued organic sincere leverage free case shareholders our time a we Mobile of us approximately upon value pandemic. also to of rapid a $XXX a share and by company to of incremental funding With and listening repurchases. you during all beyond customer wish taking growth for Operator, please the who through to XXXX, turns like to returning of we teams to WillScot I end open the year. and our and remarks. the with Mini, Along today the expect way, cash line? thank X.X million would are the that, Mini conclude target to good and to This both offering the As all serve opportunities generate achieving health. join our Mobile flow the prepared you base deleveraging, integration thank of completion

Operator

[Operator your the first from of Instructions] And Andrew Whitman from comes question line Baird.

Andrew Whitman

taking for questions. Thanks Okay. my

the past this seeing some of guess, Just order tough that as really And today. seen. stands us The had of was was those still quite could summer. times strong the of previously started wondering versus The I it back a encouraging talked here the just the were you’ve give some to I summer. and the context delivering of snapping that delays and already the on about slides. how period order well-articulated book delays actually, I even about trends you’re level just if that talk today? this kind you remarkably couple, in during orders

Kelly Williams

Kelly. is well. this Andrew, I Sure. you’re hope

I we see do slightly, think I up side. the on and would in somewhat cancellations postponements a are increase say, yes, So WillScot

far to in not as I’d it’s XX%. up the somewhere from X%, side digits, that closer X%, high off single well. typically, X%, might or see too the be You XX% Mini say range of

through in rebidding or out contractors that that process. The we’re going those originally are example, think rebidding projects will that were in times happen, quarter remodel going they are maybe You’ve at for May the I side, in a first optimistic but very June. also got

So look at picked here the certainly a mentioned that those bit. But pickup you point first some been We’ve postponed. and key ability the of are there healthcare, slide diversify, big focus. really is up are that I education, some seen in piece. our little has has when a think government, certainly as our reposition like areas to on there, we Energy

now. that go year, a too the I we But up a leads, right that optimism would think vaccine I know that the think, past to some half of significant there’s, think our there don’t continue in would see and and and and reprioritize we’re that far amount then. such of next close as really overall, so I And early assuming QX demand. is gap to I pickup. we that sustain some pick But I of able

Andrew Whitman

Got it.

And good that Okay. or year-over-year. also you is given that. be, forma XXX the the quarter guess some margin bigger in buckets is expansion maybe just in us basis to can really understand think I bridge Thanks of pro That’s here. of I of focus points for margin another help the contributed helpful. I area there performance would that. Tim, that,

mentioned You capture. synergy

basis You were Can to some clearly mentioned XXX that contributed cost here. took which give actions help that bridge impactful? that that you actions the us benefited of a you obviously, points? bit to some this Just really you little summer of flavor pieces us about

Tim Boswell

lot that of coming to. it’s I’m happy And here. multiple from here standpoint and from got a is we’ve margin encouraged different levers areas, a Andy, really what I’m by

permanent to and structure year. in relative prior variable then some cost to related Some more the and temporary quite volumes nature

million was the kind there place yes, ModSpace the of of synergy in that clearly $X took So realization quarter.

the saw more of the asset Mini the of area on we’ve activity that’s margin, of on the an and And I room improved utilization improvements business. side we’ve continued in-sourcing You business. Andy. run. modular on Mobile delivery the got installation where And we’ve view more tactically those to kind expansion healthy permanent And think I side a as as

year-over-year And area pickup performance. in We So the as based some activity to continue in and did is about. gave drive back to variable to on significant the costs. where that side talked in mean, this should I the as think Mini Mobile adjustments going a to some we we that’s in QX pullback volumes, structure there I the a organization. levels Kelly of delivery back of carry the the cost and an organization, WillScot on that that logistics were both QX be well you fixed QX, contributing had of But will to then focus medium-term which into

at that are addition buckets least of managing we’re there, actively CapEx. there to the different So costs in four Andy,

Andrew Whitman

in key There’s out could like commentary on It I and don’t you’re bit for give maybe as construction. market going a end rent looks is here and I there. a on you just And staying be slower. last that little bit more bit guess on maybe seeing it. little longer. what more been that sensitive a would if more just Got just detail boxes even that that are some little now, end boxes some Great. of a deck my know, saying wondering was on market the little slide the well. helpful then I around have just question, are rent new detail just

Kelly Williams

I or are Andy. mean construction probably in I Yes. think down the starts mid-XXs, Dodge

a projects think deceleration bit significant I key – at similar that also we little the slide, being pointed have in that up a of that today that a not whole very we’ve are as QX there. market similar picked beyond are fashion. demand don’t lot And sides number we in a to the returns a look Again, QX – other we of We’ve noted you is, I the seen, point lasting optimism think in business. here. if think segment. very that a, I I on it’s and on think end longer where both

So – down, construction, in that point but XXs mid- say, as consistently to as still would I far to see. can starts ranges we it’s

Andrew Whitman

you, guys. Thank

Brad Soultz

portion to of that. XX% I new that the just I this Andy, fact mean, outlined, of of to Kelly end are this down prior is diversity year would being our demand with – as I that XX%. flat Brad. net markets mean and now the to group is beauty the orders effectively add

and social to to well So robust markets this ability right manufacturing I distancing think platform’s as markets screening being new like in as now. needs like quite other pivot

that’s pleasing again, which, more on delivery prior here March think quite given is experienced are that year, the XX% would to flat rates I to to we pretty side, I office So with to it. earlier and back come starting line shock in the orders say down tell. comment, new pleasing. And your are in magnitude of the

a great other markets we’re our upside. as and think it I frankly, hold back. with will spot come are pick So just can But non-resi that date if provides to they is. time as all It We as win. in

team So here. very, very pleased with of the the performance

Andrew Whitman

guys. Thanks, Okay.

Operator

Bank Our next America. the of comes Gilardi, of Ross question from line

Ross Gilardi

yet morning. suburban a potential Good out? real on comments anything you play with your to are could wondering your Maybe expand world space just just Hey, a glimpse this And office of from on will Brad. business post-pandemic in movement office. you that seeing? really And getting how in that I’m urban you’re

Brad Soultz

what, line the been, are back transition circle on to point side, diverse net markets would pivot a that And in all I our folks new like expansion across just it to these and that of suburbs. for XX with year, the in end lifting and orders real driving populations from the robust very prior the activity, construction The marketplace right? seeing back in this the office ability what of non-resi capitalize. right, in had still distancing the very social is while is depressed, and And quarters dense the absolutely markets. absolutely across the pivot you’re to estate commercial fact are

precisely to not we’re much to going be end predict try by So XQ market. how to

same the phenomenon We’re in schools. seeing

schools will still that models. bring mentioned these that another they quarter in Although be call, the got of kids you’ve driver at point on hybrid last demand as the back, the several But here.

had this delighted as model. I this, such quite it. experience a good about and is with the So should I’m in we expected we mean ever resilience feel shock the just what

Ross Gilardi

just in great. mean mean, weaker call feel like to case, then is year-on-year, despite talking down I utilization XX you the willing I’m for seems you to And bit like it’s pricing that’s numbers if do in your about non-VAPS about, environment environment want non-residential? the the to you – I utilization the risk it but underpinned? little been deck months. resilient. remain pretty talked you pricing what very a ask That’s – portion the is the just year to utilization. the And next about given naturally the are I a bottom of going of

Brad Soultz

mentioned, rent, we volume, I average mean, even the the believe on as with office So Kelly the more levels unit the of the we above were that and stability there. right, the focus certainly quarter. units on left rent we’ve side, quarter and on on third the we portfolio, seen

with kind here massive normal you I absent yes, experience the seasonality think to we’ve volumes will, of So than shock, respect we’ve the – bottom, that seen if another other we’d from forward.

Ross Gilardi

question. last my Okay. And then just

trades a be you, progress, you I year. into or diversifying flow M&A. sheet, seemed and mean, some for On a a bit I’m can free multiple much there general And opportunities. from you very higher perspective? just cross-selling regulatory I then into ever your there equipment that, thoughts would And give left on little businesses seem office storage the like open consider would buy on other it further guys are that though, your modular next mean, would made door get you and you stock rental? done. cash love you’ve confident to I there at the balance certainly would your large But

Brad Soultz

we’re drive well-structured resilience would we’ve Kelly rates. now. mentioned, a touch also is rates. seeing absolutely to And And very continued the your last right in marketplace question, I Yes. on This as

equipment not model, space, gen That’s cetera. very rental. personally business well-supplied et lease interested I durations, short diversifying completely question, in different into First a

acquisition times to Within largest continued respect our estimate are And the the transformational We’d we and are combination strategy. further markets we’re competitor. we there leading, Mobile as that opportunities. five to any as next see regulatory Mini There are of none don’t absolutely with limits of aspect the WillScot. six

Ross Gilardi

much. so Thanks

Operator

Stifel. of comes Elliott, Our from the next question Stanley line

Stanley Elliott

the accelerate other you’ve pandemic, things it year or next plexiglass you, the to morning, some that for the could units of guys. things VAPS mentioned question. all, cubicles help is business into With and barriers, think Thank taking actually on that rent, of opportunities possible of like Good the to my kind piece nature? with

Brad Soultz

XX VAPS sequential absolutely. over And the the improvement delivered last mentioned in Kelly months. Yes, rates

now. we in the month the of have If you And seen under penetration quarter. furniture years we’ve three an last represent definitely now, for which hood, do offering drive math you’ve the toward, we’re the stated $XXX continuing value, would XX% a to acceleration

we as new introduce et cubicles, of that. further aspects for furniture, certainly as services, new provides the the that data upside cetera, such So than

Stanley Elliott

you’re if success a little everybody moving next to into that the talk of technology bit more year? bit with into into sounds having also little a expectations but you Could we some It love cross-selling kind from same like system about dig could. would

Tim Boswell

is this Stan, Tim.

of So first the of I in milestone SAP half WillScot platform, of the the of here first movement kind for Mini’s and art the Kelly we’re of state targeting big two year middle think is integration Mobile migration. of mentioned, onto businesses the technical that next

and and the really you’ll and modular driven we’ve And been sophisticated from in similarly, modular pricing side the value recall, since platform. across enable benefit are working on making segmentation products daily into of value-added great logistics, enabled kind from. very tools some et management and will are business business. in route That diligently to we’re visibility some have on of the better can at that that volumes, services pricing, cetera, side got which Mobile WillScot think transaction the There better utilization, teams XXXX, business the capture real-time and the the I place better progress. So of the tools price-performance Mini enable more

in happening about So or of old-fashioned and jointly. and those kind the the is that. storage big of at location the example sharing rep need and technology of way. place the to sales really together Call best In we that and team And in day lead modular you technology don’t the either talked projects a is the tackle branch we’ve selling practices meantime, do adjacent talked one. cross-application that about your

from So we’re how standpoint. that’s a about this kind thinking phasing of

Kelly Williams

optimization of territory thing on Yes. really WillScot sales in is piggyback that Stanley, sales we’re technology here which to really just teams add One excited our terms getting this one sales our prioritize is, helps on is about example tool, leads. might I Kelly. Tim

things in that related the fed identify slowdown become side on is opportunity way so started close construction sales and to and the started of Those much to see And of and social leads the where in healthcare our as terms we else to opportunities higher. reps everything to a priority distancing.

continue able platform, the us align clearly there’s just to between the And for Mobile And us, a huge And again, today two so of been technical where advantage and that’s I with real that. comes companies. ability optimize for when advantage to an example a advantage are to is on to that think we Mini. same a more competitive

Stanley Elliott

Perfect, guys. lot. a Thanks for color. Thanks the

Operator

Your line the Schneeberger, next comes from of Oppenheimer. question Scott

Scott Schneeberger

could Hi, if – guys. you for stacking this how so has the for been Thank you any competitively? moment, you asked. you. just me a in forgive I us got of dropped curious, up But If a are give out positioning? you Thank taste obviously, modular classroom about anecdotes your, think And you What competitors. if just are you. could do is Where GLOs. seeing office, versus smaller some the there? storage, industry and you your relative provide and

Brad Soultz

had over represented and well XX% market shift WillScot there and ModSpace, Yes. mean, to XX% I’ll I Scott, about aware a Kelly the with side, with journey of up I can share. Tyson, and storage. We the to modular the you’re teamed Acton. it then start,

U.S. If toward operate competitors little a They’re particular are you competitors we’re that cities. all typically then one there’s XX handful, end we’ve two in just two more of folks. There XX%, a beyond or oftentimes markets. one and smaller independent that family concentrated – owned GLOs, share. XX, And before, said that of handful geography or Mobile safely in bit are combine typically kind regional in north Mini’s a that maybe just are market

So this well is very market. organized a

and kept high the you customers pandemic, as pandemic. through value benefits we’ve Which, sales talk our able their been levels want essential uncertain productivity. care Kelly, to needs in storage? and about end, We’ve to of through time. home of everyone send maintain takes this continual these for well as our operations the that customers, consolidation, we’ve that through seen as running right, all think to the ability of this into right, pivot I real

Kelly Williams

leverage – quite I the the have remarks, think it’s just – that that, are And I to scale of organizations And two Yes. just Brad as in of. reaction today time, logistics. made and to agility, I frankly, able that’s that through the mention this opening think we’re follow-up on made mention

level the WillScot containers at so the and had situation think, done. I And XX company that ground a of a than like storage any deal, can or We just storage. example, we when of available far competition there far or this, that immediate than same or the needing situations product and other in of probably ahead was – to I And in and need complex time. what resources pace when that XX think about logistics get Scott, only ourselves separate greater to offices it’s XX the competition terms for offices, an is type a we’re really at you side Mini have on reaction resources a that

between locations. I important a opening that So in the I competition like And huge that ourselves part of this. remarks that we’re is the mention think XXX it’s really note. in a of And to logistics very widens and the confident this the spread situation and made scale,

Scott Schneeberger

in saying All Great. XX right. it’s bringing first the growth opportunity that. it. over the VAPS for the both this. The on lost million greater think you to Thank sorry, And on back slide, previously XXX revenue years. on compares That – a It’s quarter. Tim, three then $XXX next I follow-up, than you I

I really but and going helpful But Tim, there? that Now it with you as some could convergence know I VAPS I has the getting very explain for earlier, all. predominantly, numbers be do said know just is you. to in think accelerated would was it well. inquiries. Thank change has

Tim Boswell

is the is relative the you improvements kind up about WillScot – modular the the this you base think in opportunity year-over-year months. some achieved is Yes. referenced. way of last we’re case frankly, all the bit to Because on the pieces on XX fleet. is And moving further If sequentially I And here. we’re there it. There a and are that based opportunity quantifying doing $XXX a numbers no are number that’s of the kind the we’ve this here see levels

achieved, just that over units naturally But that just through that as our XX% the between three years, let over XX,XXX million per flows consumed So that EBITDA. and if some relative per $XXX churn to revenue XX% that’s organic month turn to QX, we of growth portfolio of we $XXX modular turned unit over. we’ve already hold

that as Now again, years, two good $XX are quantified We’ve that offices. Mobile candidates north we’ve million per and XX,XXX over The over We’ve value-added other level ground things. for the over our tasked said Those we’ve before being as of entire force, delivering packages opportunity that is, very three of EBITDA, $XXX unit got talked products. sales furniture lever next are products. has we’ve geographies that churns. Mini as about, portfolio within we today and of month company have per value-added

strategies if sales got to So value-added pull a to at three combined number, to drive or we’ve the continue continue the said get be commercial it. time, for And So we different levers the primary of long on level, further operate this to one is that upside we’ve for going right? force is that products can as four to to entire company.

Scott Schneeberger

Okay. Thanks. That’s helpful. Appreciate it.

Operator

Bank. Ashish of line the comes Sabadra, question Deutsche from Your next

Ashish Sabadra

taking for question. Thanks Sorry. my

Just clarification. quick a

XX% in much provide the space, On was you AMR growth pricing by the did how on the driven modular VAPS? versus details

Brad Soultz

said we’ve Ashish, Yes, over time.

that’s has So which the by rate the base that over consistently U.S. and And by driven been XX% XX% a VAPS rate little was driver for boxes. XX%. up performance, primary been the on

Ashish Sabadra

VAPS growth there? as And rate going well. you’ve about think great. talked about How opportunity or we at forward, American the the implemented Storage about AMR units That’s you should forward for North there. AMR the opportunity as being think practices going And best rental obviously,

Tim Boswell

I Well, you’re look, Tim, is this hope Ashish. well.

performance fleet but right a from just from doing XXXX across storage pricing of in time standpoint. pointed value-added recent some that. storage you’ve storage And And at results put now, the opportunity one and we’ve for ramp best we the begin significantly. published. as It’s tools units the right I We of with approach And place necessarily the an definitely But organization months something heft of to have is probably portfolio you on broader how the don’t just I opportunities that quarters, unspoken full historically, perspective. add pure rates we’ve that’s have the the to the have now our to that UK they’re yield containers And fantastic the in on and from companies of a in we’ll Kelly, road at seen performers example optimization the newly some a up rate in to of That’s activated high And that think dabbled portable not storage is we’ve but I think something in got to the then beyond. alluded had products map of perspective? potential look might if know behind. both introduce that example that that’s anything themselves. WillScot to pricing over second

Kelly Williams

think operational joking mean, cross-application XX rate of. I it’s the consecutive within very lot say Mini is practices, organically something of think shows that Mobile had quarters you think of the No. proud but way, something has extremely now that, the that growth that I done. for It’s it’s a discipline And we’re I this organization. I when obvious about a internally in best X%

service side, WillScot’s and on the storage and uncovered what curtain the I us. for have to you been the opportunity behind significant loyalty the you it’s think when we’ve speak to see However, a do had levels customer really that and able opportunity knowing

the pointed in here, as on also units As new on forward to, got pricing XX% the and Tim storage look and side really we’ve got that well. much stronger are UK I rates near we’ve new

that some a logistics significant. the power. Scale think have so of that I ability understand of just to lot do We is is it.

many you that kind probably to best at just we’ve that’s as WillScot, behind But very the a what’s get well. and very chance think and has to other opportunity as evident something pricing well. us curtain look raise see think continue I got centralized been tool WillScot that certainly going of look as evident. help example some that’s I became we to to it’s helped the going – That’s rates. Their to each

Ashish Sabadra

congrats solid Thank again results. And great. That’s once on you.

Kelly Williams

you. Thank

Operator

the Suisse. of McVeigh comes Your from from next Credit Kevin question line

Kevin McVeigh

going UK, as Great. to segment and the on kind Tank really Slide particular. a really, just then but thoughts Thanks a Can the and asset still American early, Pump, big so the obviously optimization? much. North portfolio to just helpful, again, you and of in from outcome. you margins? those Pump. Tank America just just kind fantastic North you you an context are disclosures, the within UK to versus just in but of the segments, think Or overall, between relatively pretty Storage And there’s congrats as back of thinking optimization about look it’s about super And particularly it to the perspective, in do how get Any XX, delta particular, boost asset

Kelly Williams

Tank high a in are utilization talked this I got there unit the them. next margins can EBITDA go have confident, that’s America that quarter. course four, with they Kelly. in now leadership in rates North terms terms really progress the – mean it’s in But We’ve I’m been. Kevin, not that a of than the what over here of start group there. there business, but start. to think the Pump requirements just they’ve that the this you’ve a nature so in of taken here all there, XXs I the I We it – that better and being about. certainly certainly competitive, the we’ve probably the The got higher had little the think very low social as the advantage five Storage the over made but was I’ll sure excited to was business we the very bit But seen a low back exactly a quarter lot or do XXs. struggling start still in to distancing that exited about signs. it’s I the quickly XX we’ve rates in get to with pointed way is in am a got we’re is has great out a given And last that mostly increase years moving very margins. what year. segment of Tim ago. points the months, I the about we’ve couple just significant OEC continue CDC right And terms eight large best-performing There’s going it’s lot see of allow there. talked to that significantly margin that some lean and we’ve with very, six of than of. with enhancement earlier, directional and – more and seeing days, with utilization today. entire movement costs out And in the But we’re QX I’ll MSA margins pre-Brexit. UK, I’ve run-rate Again, won XXXX. us we’ve is because will I to we’ll the late UK into there running mean full back taken XXs we’ve historical

business. in got of and sides But clearly, Mobile a in about the we’ve was is, I’m pure-play but lot most where America focus segments. legacy those excited two there the Storage Mini North two other terms momentum the of the of the our So of on momentum

Brad Soultz

The assets UK the our well. EBITDA, Pump is and Yes, revenue the Tank great of XX% is about only and Brad. thing together both XX% and of it’s very performing I Storage add would Kevin,

that’s Our is the where real here. here is Modular together. the the Storage North leveraging I focus meat segment opportunity America of mean for optimization and

Kevin McVeigh

it. out? qualitative, in to transaction think, WillScot and really, particular, really kind just of gone but folks. a just a you’ve complement a it on Mobile I seamless don’t phenomenal kind now Without from you outcome was Anything to the to just knowledge quick in ModSpace, preparation call doubling then a is Brad, that. out or assets? been more, it’s Mini. just really follow-up and typically Kelly, Because just of any between integration call Got great because to it’s see of Anything Anything, Tim, preparation? again, Was a the And and really hiccups, this it business the and that. transformational you just and just

Tim Boswell

branch to transaction, footprint, a point nearly I’ll first this Tim. WillScot what is that And Kevin, is identical that ModSpace was out terms in business was of with fleet, operations, go-to-market. the

and So it’s I’ve we knew extremely, logical seen. really, a there’s combination the asset – ever synergistic And well. that of one perfectly most extremely

that little businesses. differences adjacent you merger. durations, step lease think so how behave and portfolio operational highly and you churn, together These bit portfolios, when complementary come I to long-lived with it’s operational in two from also similarly best at There the very and behaved practices, the in predictable contrast assets, from a standpoint actually customer very are concentration, good forward visibility and look customer You long opportunity. Mini which But Mobile no see with that standpoint. some an them the the slow back logical has are presents they

come we that it helps level the integration the execute teams when have think process. well strategic just facilitates integrations. So of overlap, I those really you together as And as really this

Kevin McVeigh

you. Thank

Operator

Courtney from Morgan Our next Stanley. question comes line from the of Yakavonis

Courtney Yakavonis

second, case as thanks is Storage Is North manufacturing. Hi, from not on both coming guys. social orders. is distancing not these in going much apply squeezing first, really much the back Modular that is like construction the shift opportunities for And this some characterization? order me much pent-up North demand, America imagine monthly opportunities to because detail but gave has just of Maybe towards in, some and America pent-up just of back new right been some It and that a sounded I the is distancing to from growth them? back and very so to for social storage you really or

Brad Soultz

Yes.

just Kelly the but seasonal Courtney, I portfolios a nearly are same. think, mentioned, little you bit that separate performing if shipments the the

So yes, et the other by will. excluding is driven additional construction is cetera. for that distancing, screening, across outperformance, that part of what you’re you if seeing social all need markets end space non-resi And for

seeing So right. yes, you’re that

of return As indicator I ABI good a always has construction. for been forward, non-resi look

great We’re place. in a

even and patient. opportunities. back, create, comes would interesting it say, will more And stable, We’re can that I when be we

Courtney Yakavonis

great. Okay,

is that into I when we So forward on how for kind going between XXXX? drive both X.X% to Would between and similarly the return you you space think segments? units X%. should on effective trend characterize, rent about similar rent acting be sort are now. modular portable to of unit expect two Or storage else units on anything of both down obviously, both very segments rent And right the discrepancy there

Tim Boswell

levels I’ll quarters. this activities at of take course the very crack seen it. of two last What you’ve two. to Tim. and the the converge both across Courtney, a is is kind rebound that’s prior-year order over Yes. And comparable across

volume equipment also of year-over-year almost prior-year. and across both XX% It’s down modular. versus storage returning significantly You’ve seen decline the

both of volumes on rent to had some and a Mobile activations spoke Kelly has got build the you’ve and unit of of trends. retail specific So that seasonal returns, in QX, new is Mini terms activity very seasonal in similar about. historically that

on So modular side, There in recall project reverse you new starts in actually QX. there that fewer markets to our up the should you’ll historically, you had expect go And see trend. the core QX. in end that were

So start toward on normally end rebuild and a of bit in taper QX. a see unit you QX QX the rent into going to then and

complementary about fairly standpoint a think actually QX. from of you a are businesses the bit is nuance. little seasonality But So as there

always I the Mini we expect QX business normal next about to and for in they’ve a QX modular volume year. think to some in see trend too probably soon as seasonality see expect what in stronger And demonstrated. going the to I’d you’re business, talk

Courtney Yakavonis

helpful. you if have but like towards percentage? I VAPS is a That’s what mentioned now? comment your quick just penetration you Did you’re clarification. then had think on still you. And XX%, looking just trending right got Okay, that rough you

Brad Soultz

Yes.

per value XX% primarily us, We’re well at let’s say, drive get the XX% penetration towards that furniture month, right we $XXX penetration And $XXX towards driven of level. would north we as that’s as growth. VAPS – of put around by which

Courtney Yakavonis

Great, thanks.

Operator

Your line next Brent question of comes from D.A. the Thielman, Davidson.

Brent Thielman

I transaction the to flow actual Hey of Tim, else terms XXXX, you. costs. in maybe But on into $XX only be to effectively that variables and free the a impacting major the Great. Thank about the Anything costs behind there? go-forward you. are even quarter we $XX component need basis fourth think million in for integration cash think million

Tim Boswell

we fees transaction. work costs, about that specific When to that right. transaction like facilitated that, the advisory talk really the things that’s are really are think I professional these and

locations will ModSpace and what relocate integration. like the some that, have forward integration So we what to going after very saw things restructuring similar and costs, are you

Call taxes. CapEx million kind working not And cash of We’ve the about it, really, $XX would-be if could we’ve do given or you given costs, be EBITDA, that debt limited in been start million guidance. you after but repurchase So $XXX fluctuations anything some repayment historically, then to that. $XX capital, million else have those integration-related of with terribly we with you interest. material quarterly stock guidance, cash of

Brent Thielman

Yes, And okay. then maybe a follow-up.

initiatives. just harder. acceptance a gives curious win going or success It’s been us talked the some bit and the harder feel be share any I’d customer rates anything know pretty that’s clear pushing in modular what’s curious are about storage can or for But business rate business. You on there’s I those that rate how flowing down you’ve you metrics if don’t up, through. the if in Kelly, as

Kelly Williams

sometimes. say on, a think We that keep a although very say, sales very important, close sales feedback beliefs you rep the really, to former have I’d eye as easy limiting reps from I it’s is our

And this back deliver whether that’s ability happens, security. And I sure Mini’s to of to you’re terms goes – Mobile on differentiators so all Mobile can right product, the it Mini’s until think time, never stick. the quality of it in

just much more opportunity, see I to confidence. ability have of the to organization that Our far company. think sales reps the ahead of as a start And logistics we I be should going lot competition. like become Mini And Mobile utmost there’s well the to on a times, truly very said, is so logistics. certainly especially is we combined so in is focused the – – And

the of course units that. rent about in scale months, to volume, speaks example, advantage. a XX,XXX It’s peak seasonal core For to to four addition having real in

customers, situation I got close about it’s up we’ve still to at year. is customers said, demand. also messaging A job do take of to like I in that advantage the it’s units the to core during a help better Seasonal about supply staying a not right X% the to logistics that’s continue to probably look we’ve pandemic. and flat. you to we’re excited again, back scale progress but this can prior lot side, the do – sometimes, Mini from are of the being on lot it sales volume we of and to now where have sure seasonal. it’s to And of reps. up, And make And see got think the on turn that to that’s we’re standpoint And stickiness rent made. our if A ability we

that NPS close to been very it and we’ll prove got lot we’re feedback, And of that. something a followed to we’ve very to. closely, fact down The think the I has comes so always think out, doing I customer just it go and the we’ve stay

Brent Thielman

the reasonable Mobile That’s One level delivery That’s installation great if color. more, did right I Tim, go-forward could, call hear on assume in I the a numbers? with a to you basis that Mini it around tucked margin, XX%? into

Tim Boswell

can but it’s of with and seen projects on those by really basis. the year-over-year activity, pro delivery results. and encouraged And basis XXX forma been Look, permanent depending some the some about It seasonal and we’ve up fluctuate mix really, returns of points major a we’ve improvements. on

where As prioritize we time our about, and back and are resources. we step to going we okay, allocate think

is a big about, talking just logistics was Kelly As number.

million, pro D&I right. well side, revenues about over forma talking You’re the on $XXX

a that is the the are the we company. competitive company at logistics advantage And for end So of day. a

one margin hopefully that sense areas for of itself. And the So see invest makes further it where only you’ll us is behind it. to manifest

Brent Thielman

Thank luck. of you, great. all. Best Okay,

Operator

Your from Jefferies. from next question Ng Phil comes of line the

Phil Ng

on America your your think lookout we both how How in business. of progressed Storage on and North rent pretty now, as that gauge Hey, to flat quarter? in Modular fourth a trying net quickly units essentially nicely good Orders about new morning, should And year-over-year to guys. have to we unit rent? on basis, kind translate XXXX will being orders just with then

Tim Boswell

Yes. this from about of dramatic sequentially right. Phil, that in is similar to question. where the because terms Courtney’s the you’ve movements business do quarter-to-quarter think go here I we really as always not bit a seen, are

side into the would the business, seasonal of And actually seasonal of on of So of business, normal tapering be in it have the portable side to strong big-box storage to units those a rent be the on QX pretty in it have modular support retailers. large on normal growth QX. would

that And QX the we right all to both deficit data in is from right. those in see we saw terms has now, the my out. kind prior-year order just activity the of but on levels, of So we perspective, really the converged based punchline see of playing

pattern. probably normal line so back me, to says And we’re that, with in a more seasonal

Phil Ng

Okay.

quarter think even should or we to that So a come or way take. you’re that through in actually about fairly uptick or it give orders quickly see in your Is quicker? right two, the

Tim Boswell

That’s saw then on think right. so weeks typically side. modular than and that follow And sequentially what into and QX going QX. storage side on several maybe within just again, even QX orders Deliveries about from you the I the faster that in

Phil Ng

government, Any That’s nuances whether markets on AMR standpoint? mix these Okay. of better, from end from helpful. healthcare that when and are construction we the or margin whether be should some it’s doing of you an other mindful pivot side to

Tim Boswell

Look, other that segment highlight on And can’t I I markets. right point focus. transaction in a management events social the the And see be by Brad the slow. mean, percentage of than to quite revenue we be but is relatively will in business, broad-based talked meaningful still is the delivery beauties all impact higher-priced previously other segment that talked do group, then change do we fluctuations, and had any mix. low overall use characteristics. area to tend the but tools which our the end an and that the probably of based you we to mix real distancing we one of some industry now short-term, about, across that’s is of trend of And really Those near-term, revenue rentals, about really just continues of the mix

Phil Ng

one And me. Okay. for just That’s more helpful.

mix free with basis cash cash at flush for some is then free Mini, ahead the given And and On flow the It bit you’re if like start synergies just very cash new when a flow generation your a the of of you certainly just the flow flow how seems we combination quarter-to-quarter on quarter, million look costs? as portfolio savings strong your cash a rate. more out because interest through side, little flow with target run free of of your little seasonal seeing Tim, we kind $XXX potentially well. merger it’s

Thanks. So any color thoughts and around that?

Tim Boswell

Yes.

slow the not end If you day, the lease by revenue about seasonal, and at is driven think right, the which steady of predictable. – and EBITDA very very because it’s is

seen the a potentially. in – Mini of from can Mobile historically, towards just would seasonal – tend QX is costs nothing be our from margin the to there’s standpoint. flow And the So there little normal seasonality part as there I part aside that, in expect and payments to to both retail but that weighted XXXX by bit the to the been businesses, retail the get integration to would that’s careful incurring now QX, what obviously, be think more right cost half a year. bit and I cash really be cost, really taper different. And a of XXXX. the off sizing of interest due we’re you’ve CapEx headwinds XXXX, on timing out then we because a hopefully seasonality negligible But about side. normal, in has and variable second bit is you modular the on across and both call but time due there QX the little pickup year, a bond start about frankly, the cost else in anything that some side modest to

Phil Ng

Thanks a super. color. the lot. Appreciate Okay,

Operator

And your next Sam Berenberg. of from England the line from question comes

Sam England

Thanks for taking the questions.

bit from dealt in any with businesses had of the cross-selling national could the Firstly, into you talk early national only like past? maybe larger who customers? one the reception’s And about you’ve maybe been customers a what successes

Kelly Williams

Sam. Sure,

I think a of things. couple

you thinking about securing I really as had managed the services offering. think is one Mini success pre-merger that through Mobile cross-selling, mobiles at start

that of a similar closing exciting at are the – WillScot of today, we cross-selling And a there’s which a group there’s at of within terms lead to improve. to actually think side sales I of think that modular think all, Mini the close I there. to – rate first typical WillScot very there. from of in we’re I really that rate over seeing, continue look So the lot is confidence is passed leads of the seeing And

more qualified So from what it’s seen. There’s lead. XX% than overlap less we’ve

us large from in for certainly a that’s kind overlap together. So customers over seeing see touch it’s think bringing the evident been the early is lot these make of of And to still evolving from I to the initial business. group level, we’re to easier a can us do five of Brad customers, together, had I of to is certainly That’s I It’s customer partnership. And couple signs with WillScot standpoint going success job and tell coming are certainly site over think I now which the you customer us the years, are seeing On knowing two some on offering that. for rent. exciting the those grown excitement. out looking and that items of penetration for our that that Mobile – to, managed services with. for to national Brad has account the have excited the And us looking make all – had see we’re is X,XXX easier. about Mini and that The it that make very the a points has last the on that and job of to that the I easier. vast they’re it customer go fact of rerun their the opportunity, I big back phases

Sam England

the wondered that you’re expanding the how Okay, the was backside range on you’re then There equipment thinking thinking outside great. part particularly service of just next of the units seeing the SKUs? great about one, And of momentum. obviously business, about within of Mini’s managed offering? I’m I

Brad Soultz

Brad. this Yes, is

level reminder, we think, first, additional of introduction SKUs. $XXX without can this I just any as a achieve

currently soon SKUs, branches the well that’s be good, a have Mini stocked best, in to all Mobile XX WillScot in better, XX So branches. organized, we and to that the

just our $XXX achieving that with full already of we’ve will, mentioned, this Tim and pretty achieve $XXX are portion tailwind, reps that done. what can we got areas So already levels. doing a significant associated we’ve even And if you by VAPS million as already of

new heroics are new no no there’s There So interesting. required. that products products are here, absolutely

We between panels, will, separation to you desk create new have cubicles, like more if services. introduced data

the the As we’ve will storage and our pick we the good beginning items the I delivered sheet a as behind piloted our three the outside job example. future. units, panelized at years hard and later that absolutely look of fence up past we up the we wheelhouse assets look balance things potentially outside in and at mean, in box, are like that putting

things So there’s – doing site. think whole the really at What’s few job I there’s very been interesting success our a runway a a is here to you when key well. look

about keep why to that’s us let’s as $XXX So VAPS talking we – over the you’ve have. followed we’ll time, get offering with

expand while, for progress and that. all great next making we’ll the look We’re to opportunities the

Sam England

Thanks much, very Great. guys.

Operator

of Next question from the comes line Wondrack, Deutsche Sean Bank.

Sean Wondrack

have we Kelly, capital Hey, team, front, the of them on the taking sort been answered. Most first of back of the and year it the of quick. combined just should same return the my year keep for half seasonal in end in and expect Tim, relatively of business? questions. thanks little I’ll and forward Brad, working going a the of capital drag to working bit the But a

Tim Boswell

detailed think businesses perspective, receivables, pieces. Yes, I seasonal some of of are and has job give Mobile Sean, kind for little it’s you just a together. done the as a moving Mini come premature capital to working lot guidance kind a There great on example. two my of I’ll from DSOs give examples.

improvement we agreements, I the on on That’s taking upfront revenue the deposit over WillScot volume. time, pretty significantly. side, So scale, see of for modular practice and seen which standard our should the customer Conversely, of the that’s were across grow lease from customers to think, time, area deposits over where ModSpace example, able side. we an on line kind you’ve deferred

just as comes some here, of with kind be integration. noise there that well takes the the So natural to as are going along puts and

working going precise So capital get on seasonality. I’m not to too today

Sean Wondrack

you you’re also, Okay, fair about of then EBITDA leverage You’re a a growth? me. X target billion you for us, And net now. right Or some repayment Do turn question in enough. anticipate last net leverage just that? target? have debt you. your helpful. X.X through just debt Thank you remind incorporate to $X.X going Can at as That’s achieving to

Tim Boswell

internally July if $XXX post-merger X, down balance Clearly, starting Yes. nearly cash debt you million we of use flow. paid the in the ABL generated as point, using free QX

we we’ve And allocation get degree EBITDA, got and high to we we into gross grow to as intend intend a So capital debt. reduce flexibility XXXX. of

Sean Wondrack

new And job great you quarter. That’s this Good quarter. luck on great. very Thank much.

Brad Soultz

Thank you.

I think with that, call. we can wrap the up

for I safety your and health. So quarter. interest you to thanks, wish everyone, all in of good growth continued Talk you next our exciting journey.

Operator

This concludes conference. today’s

now disconnect. may You

WillScot (WSC) 8 Nov 202020 Q3 Earnings call transcript