WSC - Earnings call transcript Q1 2021 | WillScot Holdings Corporation

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome to the First Quarter 2021 WillScot Mobile Mini Earnings Conference Call. My name is Christie, and I'll be your operator for today's call. At this time all participants are in listen-only mode. Later we will conduct a question-and-answer session. Please note that this conference is being recorded. the Investor to Relations. turn of Girardi, now and Treasury will call Nick over Director I Nick, may you begin.

Nick Girardi

call statement. Chief Good Mobile the morning, Chief found earnings contains today's on quarter X Mobile Financial Mini Mini Brad and welcome material Safe Relations our to website. call. the Officer. Today's the Participants Slide may Tim Investor Officer, WillScot and Executive WillScot presentation first include Harbor Boswell, Soultz, be on of section

the during presentation our will be statements We forward-looking session. and making Q&A

Our operations risks subject our a and to uncertainties, beyond business are are and variety many of of control. which

a differ materially As from results our result, actual today's may comments.

Harbor the to our and in with a complete possible to our the refer other filings For I'll that, SEC. Soultz. over could Safe cause please call factors differ description turn statement and Brad actual the results of presentation, risks, more With the that to

Brad Soultz

for CEO today. everyone Nick, us I'm thank Mini. joining Mobile Soultz, you Brad WillScot Thanks, and greetings of

shareholder I'd like making significant net strong entire CapEx. another value raising quarter, and integration at merger, to the to potential XXXX time years guidance our full-year same of yet the WillScot our the unlock outstanding towards of driving quarter, First the delivering will for team strengthening to milestones commercial Due progress revenue, key for performance EBITDA, adjusted again all, come. full first the we're in for and Mini KPIs, while Mobile to the that midpoints thank

our exceptional demand rise challenge into extremely across diversified our about our deliver suffice to to we're it will to increasing excited markets, to While ever-increasing call, to continues and Tim This say future. and further and customers. the detail end go our value during team I the that is

de highlight to characteristics eight our apparent unique in X and our to like the of performance. presentation, inherent Page our the simplification would platform, in associated I Turning QX

workspace, flexible services leading reminder, innovative, specializing solutions. are provider, a in and a we portable fast-growing as business storage First,

the are number this one sector competitor. XX within and provider are largest We our next

fleet North underpinned XXX than by in compared economics storage UK, is QX revenues, last in of year on durations forward of given across modular position which a were branches visibility IRR. American lease this which Our North three forma upon and Unlevered and foundation and revenues to provides X% average position leasing basis, XX% up predictable vast segments our years. pro time yields compelling greater unit based lease recurring a of this steady nearly America, great

second deliveries North and American markets in Our demand March, accelerating is group diverse and headed XX geography. rent unit across into we and accelerating, serve end with on of robust sectors the quarter, a where

team customers. deliver expanding unique and Our to value continues our to

practices revenue three best with which a our magnitude, from worth levers, QX and progress. across taking to moment portfolio, tailwinds are our idiosyncratic growth expand we associated we As organic both powerful, benefit highlight, of their given

First, rates double-digit our year-over-year XXth rental XX% modular up of rates. American Average rental quarter consecutive segment were our growth. in North marking monthly

X% the the last and North this increase is and traction North quarters. quarter We with for also X% America of rate monthly rental year-over-year, realized up rates segment respectively. Storage the marks XX% increase pricing average in consecutive in in year-over-year Storage's America the highest increases notable UK, XXrd XX

will technology-enabled come. We support more pricing across to proposition, harmonization, these migration expect unique value years to trajectories our and for contract broadly portfolio the

and penetration $XXX tailwind. X% Simply represents an the delivered an holding a team half rate penetration second XX% VAPS aforementioned North America growth. of is XX% $XXX units XX the average monthly million is which LTM rental increase. over this years next months, a the The nearly accelerate, achieved rate Modular continued on rental for monthly VAPS. increase, level driving last three The average sequential to of year-over-year

the meaningful fully storage third proven to a deployed we VAPS towards represents achieving and fully Modular with that is associated and And $XX opportunity to manual storage of vice our customers, along which to opportunity. bit teams an until I'm began is our incremental this to versa. ground-level a containers, we're As $XXX, our have once our process extending which million Albeit playbook. the there We Mobile office utilizing long-term systems and confirm offering trajectory also believe we size, goal with pleased expands beginning eclipsing extends. just VAPS our cross-sell begun tailwind third cross-sell. leads in are our integrated, continue Mini

a and both office, the million, and storage XX% XX extremely only are overlap. of acquisitions delivering from we record, synergies that's customers our million in $XX Based We execution. last upon of confident have years. this an customer XX identified cost currently we staged XX% While track for require incremental $XX delivered been over

technology and in scale continues tandem, unique Our efficiencies. to drive

points expansion Core relative XXXX. synergy of first was our penetration, first a the represents and adjusted Our which quarter to pricing, XXXX to basis growth. $XXX EBITDA and execution XXX continued quarter drive million, VAPS profitability

XXXX. second in growing margin flow $XXX half way at deleveraging, share to run end repurchases. cost annual cash of flow of operational turns, the growth, finally, flow We we fully And come. free the by leverage continue which is target cash XXXX. quarter free in one-time have million to will improvement thoughtful are XX% X.X by expansion of allocation, reduced and generated organic This X to capital and by $XX and we'll opportunities, to list free we Beyond achieving securities. rate yield our our X.X prioritize deliberate our margin repurchasing contribute trajectory cash of million million years on We integration long-term a funding to identified well toward the expected we the consider $XX and costs, synergies, a of growth, as to of all continued turns

and energy, and Page profile markets, which XX government resources, Turning commercial, institutions. into we natural we X, construction, to our end discrete bucket industrial,

XX, growth note Index or not Billing in material have measurement there ABI, markets we shifts would at released Architectural is the was continued which month infrastructure with expected profile, in in this our March, growth be above been While support that We're any the XX XX of beyond. also monitoring to to that of straight momentum. multi-year and extend portfolio legislation and which a Page end opportunities. have second underpin our could reflects the further composition XXXX

I've majority as for an integration While broadly. previously, these would more system acceleration to I well opportunity, enabler touched of with as upon value the on as our the cross-selling progress of expand highlight creation like

vice to As mentioned before, our and storage versa. teams to cross-sell modular begun have

we that's when of get our automate in And time these share in, in Modular, we large cross-selling XX% we'll between a XXX,XXX our to market see continue efforts. volume rent of over For while Storage, uplift had a to actually context XX% gone merger our Mobile not This units easy a the in at number QX XXXX. that some believe announcement Mini, X,XXX share units it's have to own we tactics. how as require and in result and merger All almost the on further on WillScot of market a rent of compared both. customers XX% started and as believe while with North America, we

of testing, among which final legacy Modular moving the on our efforts, best-in-class Mini's of are data other ERP occur stages is preparation, in America to our cross-selling track completed they SAP. growth migration, quarter in will Mobile XXXX. Our North accelerated the onto segment be before all second levers, by We've the

Once of value While proud support enabler. no and long million and incredibly is of complete, this begin in their to critical WillScot merger integration team $XX ERP I'm the for for the execution easy, cost we'll to is the promised the the hours Mini. grateful synergies and efforts, accelerate Mobile between great migration

our fleet examples across XX, our uses varied of Slide of standardized markets. diverse Moving the to which depicts end

earlier, X.X% quarter. America our improving markets. demand March across relative XXXX. our discussed important It's I March to relative that and note In first end XXXX to year-over-year deliveries As to X% increased in X% March is deliveries increased Modular, XXXX, North the

in increased lease for seasonal Average in KPIs – earlier to expected, are is in the QX, increase although X% than core their since expected, was Although we average March peak as the commercial saw X% segments In a it decrease relative positively year-over-year. they America a run I'll are dynamic in The as relative month year-over-year decreased sequentially North to Storage. rate. small rent June With up however, XXXX to in of December, units Tim. XXXX. our the drivers hand strongest on in fundamental expected, came slightly XXXX average units rent same our period that, major in contributed guidance. trending realized on our Modular, to units which timing bit one segment, down positive both over March Storage of our and delivery modestly of deliveries. existed we These of

Tim Boswell

segments, flow heading of flow-through we be $XXX on overall is a run all summarizes XX.X% which reflective we the good X.X to without generated rate American flow way growth Modular $XX flow We to morning Thank adjusted repurchased consistent about stock of EBITDA half in cash continued free common Leverage of the is XXXX. of over the the and penetration $XX forma our to growth we a highlights by free the of quarter, the margin, segment, this basis, some revenue our the below operating times been performance million VAPS our environment. our pandemic. a and free run quarter, quarter, the the and repurchases. positions warrants. mostly $XXX the Leasing was have million XX flow million free $XXX opportunistically leverage Brad, what North financial margin, We you, would on which million times, through which and well the driven cash revenues into XXXX. good business, as from have of second reduced remainder the cash last of increased of at of to adjusted was a XX% generated EBITDA in for course of year, cash and portfolio million We growth lease could us our well of milestone our X.X and achieving interesting year-over-year X% overall resilience through and of leverage a XX%, spoke start pro Page everyone. pretty rate by with EBITDA first pricing in of

X.X to of end leverage clearly times comfortable year to flexible X So they our present range hitting be opportunities the as the by and fund target can we're themselves.

make of WillScot accomplish excited incredibly past me generated get when legacy about basis. in all million everyone together service branch ERP million has strong watch progressed whether the Mobile or segment. horsepower It business. we our Page $XXX that Mini a migration $XX on normal discussed, around growing declined coalesce to with achieved this we shared occur scheduled to literally this we that revenue to project, increase our reflects Sequentially, working by on this what and refocus which year-over-year cut-over Brad our pro in is cut-over all highlights been an gets this organizational quarter. in simply And or our this legacy centers, metrics humbling organization we XX absolutely our quarter. forma in As milestone, locations, the successful. the $XX of We of primarily financial million, Storage seasonality, the revenue, can

lease just You the you see on months. chart. bottom-left XX last the impact our pandemic in over really of And any don't the highlight can see there would I that this revenues

say many In into every evidence Our leasing and which again reoccurring aren't year-over-year we heading up resilient, an This quarter flowed and was EBITDA solid the margin is year-over-year is the that. year, basis. lease on in the XXX top-right and margin, a growth forma a last chart, just with XX% can further have that there through remainder points markets on incredibly differentiated to EBITDA, a XX.X% revenues pro $XXX model trajectory QX, adjusted of revenue which of revenue in basis growth again adjusted companies recover. that XXXX were and year of million resulted expansion as

down on levels And margin sequentially be and activity then remainder should And our line increase. year-over-year would discussed expand also of what to last down or expect EBITDA QX the as with it slightly in call. margins flat Our sequentially the year. I through in we was QX

So trajectory. really no margin change in the

increased discussed we exited what call. to all pricing, value-added revenue guidance as products really is to Rather, volumes, heading the and us were run QX, into confidence we contributing an relative year for what this the last accelerating lease expect gives which our on rate, ranges March in We year.

Page metrics flow the cash on have very been XX consistent merger Our since closed.

in contribute well increases, discussed penetration as Net to synergy conversions as slightly expansion refurbishments continue strong previously, of our from was majority cash we to growth, As the the organic Brad fleet. our and investing realization continued lease all existing fundamentals fleet of to CapEx we cash revenue $XX from capacity to in contracting as And from drew margin and VAPS price net QX. value going million QX book with activities flow.

So being this we Free capacity into at disciplined heading margin sheet even given XX%. remained are balance cash we the very with growth the strong flow have market available.

to we quarter. at that fluctuate with in this in Integration reduced $XX believe and timing and totaled costs. and this heading of upside, especially costs is expenditures, busier While XXXX can especially sustainable quarters, due integration level metric capture the XXXX it long-term, has into greater synergy capital million

$XXX see as our flow those it's million costs to So, easy cash north pushing rate of subside. free run

in which April operationally, after the ended, quarter to on came Page that presented common new Corporations. in SEC's interpretations XXth, balance is for what on structures a the Special SPAC and out liabilities SEC be right Turning guidance XX, most with sheet each quarter an The statement introduced of that Purpose the period. warrants accounting Acquisition otherwise should the warrant straightforward as was are perspective mark-to-market

week any in the audited structure operating prior our or X-K using operating which earnings for way, function our provide the retroactively metrics do way, our capital statements impact on also nothing operations. order non-GAAP here metrics, the and any conform This and does the our a in the how debt our further stock change the our XX-Q that our release as we The valued with or Both continue so. this we'll share preliminary income income, restating yesterday file the provided economic actual think and of has with is is our And income, earnings net in statement. It the about I or as not covenants about doesn't think any financial range GAAP impact and mark-to-market a Black-Scholes in published in we net any debt as and and impact that amended XX-K that business not facilities, SEC's such are we punch release we'll It transparent a does So details non-cash primarily of price line is of we our count. way performing. our be this leverage, to or the our of possible falls business operating above change movement. any has business key metrics. below to to

As back our structure XXXX. a of $XXX balance to our reminder, expire redeemed principal all we Page taking APL warrants million on notes due of and that our and to our outstanding this adjustments of XX, X%. rate some at down November in Getting to refinancing the debt and quarter tactical business, $XX a one-eighth outstanding XXXX, million six about million $XXX from senior to made

of cost $XXX cash average of million weighted annual approximately X% Our debt with interest. now is

TDR Leverage returning $X our quarter. million secondary to $XX Capital, of warrants year-end. EBITDA times allows our outlook at these us our be opportunistic our by $XXX types transactions. to range forma million. of We're leverage common other million by offering stock, and Additionally, opportunistically a common separately to in comfortable $X.XX million with adjusted total a the of declined and below quite shares we last-twelve-months X.X shareholders that $XX in for repurchased pro million Confidence times in X.X or repurchased be we'll of

flexibility liquidity, business. with We which and to near-term have ample plenty the no maturities, of operate

our outlook, first with for the Page results, macroeconomic outlook year integration, we're updated the slightly. our ranges on Based progress Our our on is XX. and strong guidance increasing improving quarter

last at with by $XXX very what pricing, rental call midpoints is a to this years. of there is variable is last to of growth our so appear exactly rate and our revenues the is XX% The next units expected demand of on QX, are That's of which a all which nicely million respectively ranges to progress forecast volumes, balanced we XX% that our several build with bit course for driven than cost improvement compound These year activate new growth results, continue on want assumptions, midpoint on change our nicely midpoint relative relative that This And spread Modular dynamic billion meaningful a a entirely ranges products. relative building change to inclusive we're means prior earlier synergy suggest and our in see compounds will portfolio, which no a the And the our segment, specific year to of we to Meanwhile, of higher X.X% powerful that the overall only gives XXXX the quite increases are our to bit EBITDA obviously of growth The is VAPS we expansion will to the delivery of to the X% the the Similar margin X.X% based value-added of total mix integration. Our confidence us and from installation relative to new contracts the ranges. both revenue and volume-driven. and year. discussed and that the coming mix is X% volume rate in tailwind our XX% year. to initial segments. new from what $X.XX muted. seeing midpoint adjusted this to our cost EBITDA together, between half continue and second four a run through in the see. accelerating our is across and we to of revenue

This course we've be lease range with higher, revenues margin will depreciation. guidance expansion original expect heading So with trending across in XXX of progression and CapEx all margin these basis demand-driven, since the to CapEx stronger our points up is million. and but will annual XXXX. year-over-year basis be our ranges, is will consistent $XXX strongest very driving the demand QX that increased into we midpoint points of at higher still segments higher to a be ranges. Net below would CapEx XXX Even

for great pretty achieve in being we XXXX, disciplined the for year macro-environment we're we're implications capital can which track fleet. a with about XXXX in has and the we quite allocation. on us Overall, So what excited think turn and strengthening gets

on capital Page is framework allocation unchanged. Our XX

expanded the However, million out X track $XXX available. approximately business to of and XXXX, committed the current – by continue year-end which looking million, into our proactively remain range trajectory the $XXX confidence acquisitive. still leverage based our XXXX times share on to of and of We're repurchase has course Board in authorization be to and our to will X.X and on

forward free and we clear confident accelerating the into can priorities flow repurchases given all visibility However, of above cash growth while our we we fund levers, organic as grow. are the

it many successful organization ongoing execute to Brad, our back turn a you I entire and I want effort a shifts team of Brad? the quarter, is dedication. migration again work, ensure our working and SAP. you Before that to energy, sincerely extend to to and of for to to success I both hard thank this your the and night know that are appreciate I incredible project wide day

Brad Soultz

and returns, as extremely remarks. please you years you bar for the health. good QX driving for questions? listening also come. am prepared to continued value and raise our the accomplishment. Operator, all Mobile I I, concludes is open team unparalleled today, further The creation WillScot Tim. will of This would continues safety, wish compound of which well, Mini shareholder line Thanks, our to proud

Operator

question Suisse. And your is Credit first Kevin from Instructions] of McVeigh [Operator

Kevin McVeigh

Tim, came amount we if looks it you little within the it, – just and the the the Hey, is the get the and for you per make well right, the $XXX help have context to Maybe understand that we the so congratulations us your maybe if increased VAPS math that framed bit, it number bit. little in to I opportunity then $XXX thanks the much, units I of you VAPS, results. but of just million opportunity like down. this market VAPS sure looks get that, unit, understand know Great, is a like increased so want million, and million $XXX or Brad, total, on addition I to certify a way just to that the and

Tim Boswell

the is we're a this frankly, products. is And affairs lays core Kevin, complex as mind current and to pandemic pretty And on. organization relates XX integration. through to value-added Page both Yes, excited, state about Tim. of a The VAPS is this and it continuing that incredibly and you, pricing the the we're out through drive trajectory

we've was the the in it contracts year overall when think a continued the between we're – spread through We've average relative achieving the that on we of new last VAPS about that XX% to maintained every rate our I talked spread. ago having rental rates a approximately drive to quarter year, portfolio. course and

more pricing you up products recent new as pace in our of So achieved pricing, as XX, you kept see value-added can well the most on that the contract kept of Page is on or the has XX% assume penetration value-added than year-over-year. or But on case contracts products. pace, the rate

progress incredible overall all up And rate average monthly there. is units year-over-year. on the XX% So

see which a opportunity there segment. is overall growth that pretty we're EBITDA your And as introduction And, $XX on point, time all between exploring, would within is the segment. products on just fall Modular GLOs, storage and over containers. we America be the there the of believe Brad the Storage that's another rate value-added million portfolio. the of parity you which on North good contracts America opportunity So North new the the To on third mentioned,

So multi-year, opportunities look, for long-term are expand driver to know beyond this we what and it today. a this there is business, going probably to strategic be

Kevin McVeigh

really be against improves it's just – there outcome? as obviously, wonderful then It's the VAPS? that just thoughts about Is just – the storage any thinking just ERP, is that and that that pricing to capacity, quick, great, we're and encouraging the real the continues

Brad Soultz

continued progress core included work pricing VAPS no really with containers that by and themselves. on then There's of early again the pricing, Kevin. improvement. Yes, the in It's that GLO driven

Tim Boswell

is highlight, just leadership price in tremendous example, in our business. getting Under remarkable. business our also that's results United that levels think allocate on last are we fleet. when that, And XX%, we're And happy sustainable, area really and pushing like improvement expanding where the across quarters performance the price I the to capital. that it's for based in utilization team And and three to see Kingdom, close we're continue we just there, just I'd an

Kevin McVeigh

Awesome. Thanks again. Thank you.

Operator

Thank you.

Wittmann Your is Andy Baird. question next from of

Andy Wittmann

of Great. Good business to everyone. was some bit I talk frame trends don't of – the a coming you in I terms Happy I you mentioned of Friday. in on morning, book wanted gave guess the March, some just side, deliveries and the order XXXX about in the you of storage. the hoping And little that out discussion could of March. that modular the level March think over

that So that could And talk in all to we order COVID some levels that's recall. guess probably the generally, book or then, Orders starting deliveries about I between and March-April? I'd and the gap how to if more slowing. great, order but converging Is to delivery narrow during you trended. normalized here see of of book depths how be timing, the more were were – curious Brad, as the difference delivery if

Brad Soultz

The rent unit related book, – this to Andrew, any, sorry is on little I delivery. – and And my commentary, very referenced of I'm Yes. Brad. if Kevin order

storage in since, at deliveries XXXX. March the So, June of I the think, highest level were

both the in with And that's to orders to deliveries improve. timing starting then indeed, So, strong. materialize respect And are The segments. robust. when yes, extremely in are order books as general very

Andy Wittmann

it. Got

be far, just specific Okay, timing that little more And bit the that's could some talk all think cut-over. the of maybe, we a edification. bit are terms talk you're little I'm you about at, for operations? so quarter the go would more just one's if this helpful. into everyone's you've in a that more then, mitigate hoping, cut-over risks, more little you for second a key SAP that open wide in to – on having just things could bit of the I of Tim, bit looking the eyes what trying detail testing little just a I done your helpful about you're terms so –

Tim Boswell

probably have been Sure, This that closed merger is initiative the ongoing biggest operational before And even and the ago. a company. it's happy we to. in the ongoing year since

and planning the started foundation before for putting place the we this, closed. in the merger So

We have And well both this down legacy Mini leadership got into the the branch level. organizations And both the very way that's extends a team corporate cross-functional all from at WillScot very deep networks. working the and WillScot Mobile together.

If the and you the can has course and nine core and We've that the execute the progress calls, again in and in think be will year, that over Integration trained, a ready for our of place, And to Management structured the we're this a that's monitor about X,XXX milestones. key committee point the north project to the been monitor daily meets earnings that's Office, We focus where we're structure doing with primary a today now team the steering been of Friday almost key cut-over. employee all of place, really of all progress people, to last workstreams. population, ongoing meet months. weekly every reporting had morning, we're to team, except when very of management

of So final in testing. we stages are data the

on insight there about training are mentioned, of on Mobile get that after now, been some Brad As are right effort benefits I legacy If that is some extend organizational-wide WillScot the incredibly an and this into we reflect excited will that of operational cut-over. going the organization draw to SAP. been to really related able for efficiencies Mini some the they've the does has the and to things from able operational time, of some they've directly well, organization the

process VAPS. of reporting, better real-time like in data better things management place better have we'll So long-term for inventory visibility,

overstate extend, cut-over can't – I'm excited mentioned gone get that's as complete incredibly but the about it's what my I incredibly QX. into will remarks, I really And effort about we we once I benefits else that the this, operational of So excited amount organizational in can in the execute.

going Now containers, portable the deeper into different refocus example, energy on of to of products our work together, these or value-added if we ability that storage as that teams markets. we've of end for all all demonstrated an

So it's employees of a lot a listening. phone deal. the on We've got big

execute XX once we course stay the level, high you last thank again. months. And So, as and focused extremely of have let's over at the a

Andrew Wittmann

I all day, That's have weekend. Great. for a today. Have and good good

Brad Soultz

Andy. Thanks,

Operator

you. Thank

Your Schneeberger, Scott from next question is Oppenheimer.

Scott Schneeberger

just Curious, from rates Good the much. in – assets. morning. very you on Thanks spot speak core modular will

into with And you heading at seeing you strong for very seasonal a and upswing, few assertive are you what something said how years. You're again? obviously that's sustain you are that XX.X%, can the pricing

with uptick to – seasonal you're what curious take a bit just in so, price? And openness seeing the little on of more what customers

Brad Soultz

Scott, is this Yes. Brad.

As I now VAPS. years, the American growth, pricing and three of double-digit we both core with extend rate for we've on combination achieved North that think growth mentioned, rate and double-digit basically we can the Modular

we've on mix full XX% of calls, XX% that prior drive VAPS to driving said balance. with the pricing As will

every as see pullback – excess through the Meanwhile, central spread. a heading we of into move pandemic with for I spot VAPS. out stop no XX% that We been core with were with the shock, up don't there's core XX% pricing, As or delivered core spread Tim the associated questions not pricing. mean spread. mentioned, too the But aspects an rates pressure to the on harvesting platform above We've the quarter with back-off. we that core including been this. a we one probably pricing would But XX% absolute come value of both, average. was into we in deep disclosed VAPS the and get went pandemic of we've again, respect would if

begin same see the So the start actually attribute algorithmic-based the harmonized before QX North across now and saw two other the Albeit, right. deployed pricing a really really Modular revenues. quite or manual, performance good. the have we've tools America Storage. to we've still acceleration ago, we and – we the feel I pleasing contracts in was we it's to think to This move America of and quarter And our is in pricing aspect that North VAPS place UK

Scott Schneeberger

it. Appreciate Brad. Thanks

sales sales I'm targets? some very, seemingly achievable the the extends that the just I long? real ModSpace some I cash just very in of you – assuming yet on incremental benefit redundant how Tim, for should to ambitious it guess in and from leftover flow, estate equipment. you flow you, Thanks. proceeds and if your about However, notice strong sales free we was property, estate think sale did quarter. first course there real XXXX plant, of that And transaction. contribution accordance the if expect Could free with XXXX from over speak that cash

Tim Boswell

is it's that's of estate be driver that And just milestone that to going not eclipse flow. core to a Yes, of remind longer-term, our free is be million selling certainly $XXX cash I folks. would intended real a

core of million QX. $XX a about was estate sales it again That's than higher real yes, in normal. little So

stemming what you on business, our went If probably seen WillScot XXXX, elevated early would integration in to in legacy the levels from that magnitude ModSpace. back XXXX, you have some with

general not WillScot held assets You may net $XXX redundant, are in of exiting over legacy book the through XXXX XXXX. those into rule recall estate. owning those and thumb million a that Mobile value course extent in execute as Mini ModSpace real – business real had were the estate of locations we of the and were of

extent in So to we've market that and to course fleet property evaluate can we and an or more it of to know got redeploy try MSA a consolidate capital operations. the and productive uses. up the or We free we

$XX It is also fluctuate million costs. $XX in case but of will a integration offsetting higher. this you're So little million

a and number going good I our think confident $XX into year. next that in is million very to drive again ability net-net, So

Scott Schneeberger

up the good Great, thanks. Keep work.

Operator

you. Thank

from of next Gilardi of question Bank Your is Ross America.

Ross Gilardi

morning, Good guys.

Tim Boswell

Morning. Good

Ross Gilardi

in continued and any in returns? in a about M&A vocal your signal shareholder way if its M&A to in very been shift the meant has boost I'm WillScot authorization repurchase prioritization from away was ongoing interest toward share wondering

Brad Soultz

that free demonstrated already just in Frankly, million in confidence It's profile. $XXX flow our achieving this eclipsing. not. given all we've the of above. in of cash the kind Absolutely It's an

we're priority and what that mentioned. beyond but through always M&A. and organic the growth very geographies we'll storage continue per strategy We're advantage of others, growth do know I M&A levers se First we in organic comment the don't of both on is we to take primarily the mean, office and the well. in happy accretive very fund I've with we already

Tim Boswell

a authorization we've with Hey introduced think Ross, very flow of predictable think We about because I before uncertainty is amount even our we the a got starting the the pandemic in profile. Tim. timing. middle this fair integration of a just original cash

along and has business the to model. in integration this able environment We're years out Macro further changed. we're changed? look in what's several So

for So of got above. capacity We've larger-scale it's M&A, an all plenty as M&A of repurchase authorization. the continued tuck-in, regional supporting well as the

Ross Gilardi

feel General about Australia, to your even your further URI New guys being General business with the fit footprint? bidding do care comment about with for portfolio into Zealand and comment you you Finance? Finance given there? the Anything Can all URI you at How

Brad Soultz

URI as don't respect okay, competitor. to – and customer and them welcome a valued would vendor that. really angst we have but with any No, is a I

just As do what mentioned before, we well. I very we know

leverage we in have will and always of do focused abundance the we what it. already we stay well, inherent doing platform where an we have on We do

a interest said America, and geography beyond position expand the the consistently We UK, to North last great have little in over I've three and years, that.

Ross Gilardi

what's all that? Can and the this in rent you really comment at about driving UK

Brad Soultz

repeat you can sorry know UK-related. I the I'm it's question?

Ross Gilardi

Can you more bit positive UK? the the developments on driving little what's in a just comment

Tim Boswell

both well I a X% lockdowns UK assertive XXXX, you overall forecast for great the as tight posture market team and both environment. Pretty units. out it’s Brexit X% think the accommodation an very and GDP at as I by and container tight the hearing and of market mean, for XXXX look the a leadership range. coming what from that commercial to

higher cases; We a are presence some point. price expanding there looking and are our coming in those at at

there. a leadership really posture end and markets is and bit down it there comes a set supportive commercial So mix our of to of but there element really

Ross Gilardi

Thank you.

Operator

Thank you.

next question Stifel of Stanley Your from is Elliott

Stanley Elliott

the Thank Good morning, for question. everybody. taking all you

to interesting but being pretty able an the a at with, at there capitalize out talking about duration level? looking when just is growth enough reasonable think ready stimulus you in looking about begin have And we're environment, fleet long contracts about guys a construction of we're is does higher that? to industry substantial spending, have much discussions, think on that – years to Yours the we interesting at it pretty all – to potentially layer of several that

Brad Soultz

Yes.

supplied. I think industry is the well

at Modular tighter acquire at we segment, expansion but North a least of look storage units. and opportunity the to fleet have we've America with our it's bit If storage got easy you XX% is

various through M&A opportunities As tended that time, be over points find XXX we've above competitors we'll looked basis competition. at to we've to the the XXX basis points

So, with I and expect and The respect is constraints, nine, depending months six, we that. could to underpin a read extend And I'm XX just positive especially on about not as non-resi, right. when from supply really these it markets is materializes, your think indicator what ABI expand worried out. further infrastructure, how the and would

those are all for So they're we're watching XXXX more XXXX, quite but than for exciting. things

Tim Boswell

if and the And existing Tim, do next We profile in three even very I about is spending new. for thousands Stanley, for thousands we that less branch execute hi, slightly capital to several actually it's potentially, and the every book just refurbish into that financial our elevate mentioned one of the it of able would this of network scale because cost-effectively and means our fleet this units we than add, cost what my I think in-house, year years, remarks as were we value we're in network. branch you refurbishments our year. this the net going do contracting that can in

to fleet competitive business is the scale that's and faced So XX-year execute that a over scale kind core suggest, that years companies in how can modular XX-year, of market. one the with before of specifically, a supply life, maintain in-house, and reasons significant of start other have new because that the we the we to we that into advantage one have use if and we balance these tailwinds it we equipment macroeconomic the be a sheet are competency maintain able at about and like couple introduce this at is today, to for thinking where again we'll to around do that buying

Stanley Elliott

Great. or of roll a rolling you find that I'm on And the you're various couple around the love then VAPS particular, storage in – quickly it in context and assuming in talking piece, test applications, that to cases out little how markets. guys Would a a you are could you that really national about incubating once give terms you of products level about? good you feel out other

Brad Soultz

to I the with just Yes, opportunity think VAPS two tranches. Mobile in Mini of would respect

to the applying million kind revenue of or The opportunity the simply that we have the Mobile offices. systems ground EBITDA that's of Mini already furniture $XX first level in is $XX that million of WillScot

wouldn't deployed se, harvest where That's be we're branches It's it and think per looking straightforward. what multiple rates at top the in through the that's as and XXXX, now, as this really will in I opportunity. U.S. So year. level we accelerate head in can into that of begin being Well, piloted right we is, to driving XXXX.

themselves. if is you for The second a containers opportunity to portfolio, storage implement VAPS will

wooden basically focused plywood, that tactical If to and I today, stringing think you storage That's doing customers benches, some in replay we're how lease cetera. their for as pretty a XX-month exciting it's building my right? lights, you at look time, et use think initially often, duration, was sizing they're over a the work just there So opportunity but bit very if prepared playbook We storage. take containers shelves, are VAPS, will, going is to these that mentioned average office to up comments and on more WillScot I fragmented. we

can and I journey get begin organized, think progress really that on in XXXX. we more to

Stanley Elliott

Thank guys. Luck. of Great, you. Best

Operator

you. Thank

Phil question next Ng Your is of Jefferies. from

Phil Ng

it it. UK you for Hey, but strong obviously just really Storage up putting and is owned not fit you've the WillScott? guys. see Do fit little longer-term as under a now you're better a that business have blush business capital core synergies, a been lack might The standpoint results, on the given now putting first great it behind a bit of

Nick Girardi

same we when come entity. the think, that that value this way, do look think just of what portfolio, owners? scratch terms And right? where, of here at we okay, as in surface where North about out one America, add It's I'd And we answer business. the to beginning I exactly could can that's we're we it's it the So performance in the

and reinvest, what results, the doing see what see. now. love UK we we'll Where we're that's in right we we So

Phil Ng

accounting then, some the built estate And was sales for the really Tim, of Excellent. XQ, flow of that generation real typically the in course cash strong year. even over free certainly

free implying and XXXX, $XXX that thinking How were for maybe bigger year. does million you have you year? give last quarter to cash buybacks that now appetite flow confidence I this think a you for are about this

Tim Boswell

in Let business, mirrors way, thumb same the fluctuation that free some cash think me you a the I of because would of volume-driven. it put see flow as this rule the so profile is margin it

ticked expect be it a margin example. both QX, higher, CapEx in up to And and So wouldn't then, cash free quarter. and flow me would QX for you surprise QX if

year. toward nuance that and is you run million year that some yes through rate there certainly is progress flow progression upside. And expect heading next our cash this So or the sequentially, the $XXX end into this year very whether as comfortable year, we consistent rate, it's toward $XXX that run with with and million of next there's free

Phil Ng

on about What the buyback?

Tim Boswell

the we buyback, middle we pandemic. and yes, We're merger. of expanded the mentioned. closed it's it – it, was the the well, introduced the the for On reasons just When we buyback, original I in

some even we're further of uncertainty elements there So along. then. were And

prolific think our headed of cash the seen things poised the got capital allocation execute a our where factor macro thinking of into All SAP good from three the the in we've years. a portfolio, very for is we're view to and next these now couple backdrop of cut-overs. I We've generation standpoint. quarters

Phil Ng

Okay, lot, a Thanks it. great. guys. Appreciate

Operator

Thank you.

is Thompson question Thompson from Kathryn next Research. of Your

Kathryn Thompson

a with Hi. structurally, in Thank the potentially you big impacts could and has businesses focus U.S., you the but of many opportunity value this now, puts today. chain of only we look a my and questions your takes business, how be beneficiary, along the pretty and you chain, as forward? not up have taking how construction in terms been sized for Supply so significant

Tim Boswell

unique the products have that the break latter start. out line, and results. in been price, I got consistent got in services. At strong several level, very is think playbook Tim. simplest I'll and place very a we've years. value-added look demonstrating our for two this top I visibility its we've volume, and down And to Kathryn, And those

because deliver where And right that well, we we're what that think those to, and of We've those we work. that in the now got scope environment if alluding be points growth. if that. supportive excited we're faced today, value-added in Stanley's can And own same gets with that very the the available supply to targeted the refurbishment If that it I you're doing the put expand What the in are our increases capability we're may really we the trends. in non-resi And So volume in-house and only of we're type it's environment. offering. growth, is with in participating opportunities XX of other me can sectors we nicely that services, of then, there you participate case have products potentially assets to volumes in fleet it of things. in we've always to can activity to we constraints with of accelerates, of course, see side that we on don't we economy low-single what digit growth do in that compounds in because products range utilization value-added question, the think pricing of see chain

here. excited are with happens that, standpoint. cut-over even a it, be now we So quite look, in We're position But the the legislative take as to is we'll absent that even once see through advantage think backdrop SAP from what will here of we better a and we see get business right robust. we where

Kathryn Thompson

One and Texas guys? impact impact apologies I if you addressed this, but Helpful. the if missed, any Thanks. freeze, the to you meaningful of clarification,

Tim Boswell

we gave we Texas in March, our talking once for They we it operating the it But a February, outlook. well ongoing in as down up, levels the activity process the It environment, had was probably branch as we as to standpoint, and that heading a as delivery picked change I in April, was into from the the Yes, level. reforecast that go through talked about January into here business choppier. really example. March impact little – us confidence really about Freeze, some those the were think a got from

there in early as heading was that And but and in equation, into Hurricane the at I as of quarter. very up that portfolio. interesting least for yes, market side deal was it unit and the pick about the things, X% of second an terms rent demand would So and expect of than think X% supply or definitely less a It's to typically you big on this Texas was tend our And implications, the QX, disruption back thing to it Harvey, the some QX, – half impacted QX. example, specifically. on like well, like non-resi example, of portfolio for

that are significant material. these of the our not while all So portfolio, scope events in they're

Kathryn Thompson

Okay, final CapEx on how is that's CapEx, much a refurbishment, for of or the And helpful. clarification units? the

Nick Girardi

QX, product into new where you for Yes, rule the I we are CapEx Kathryn, of and fleet as book if assets, specific to in other remaining that XX% assets. and – think, And then the these we said general supply be assume, would thumb, And alternatives XX% we about and purchases see are contracted I refurbishment you then very going be did market don't into conversion market. budget step value. targeted slightly back, as net combinations a would to of can half existing products, is about going going go into and value-added of

that asset, new a buying the asset we're it's of life. another probably end when replacing even its So, reached just

fleet composition. we're tightening bit. expanding things So And managing overall, fleet. just the We're we're not a little up that

Kathryn Thompson

mix real the So trend... change Okay, no versus prior in

Nick Girardi

correct. correct. that's No, That's

Kathryn Thompson

much. Okay. so Great. you Thank

Operator

you. Thank

question Sam is Your from England next of Berenberg.

Sam England

the taking for questions. Thanks guys. Hi,

if third-party on as going complement you an look one, more wondered VAPS especially storage offering expand first seeing use just forward, rentals to I you're side? The opportunity to the to the

Brad Soultz

aspect third-party some modular fencing, is the VAPS fencing, be there. penalized services. An generators is would example an toilets, there that and absolutely Yes, of here

release was a portfolio. been their kind and of aspect aspect focused the our recall, it's We've of assets a leverage, lease same that had that of owned just management all you'll horsepower steady Mini, growing of Mobile services. to So also part of on business, which managed-service that.

a it's interesting think what complement we very do. we to So,

storage opportunity. modular providing VAPS modular and storage office right – I services view and are that fully We service customers laser-focused incremental on to an and turnkey all managed as

do interesting we it's deliver every business. office We're is our job aspect fully we yes, and an laser-focused So, sure the storage just to thing making furnish site and on both. first of

Sam England

then space particularly markets outside or I you're seeing you the and year at follow-up. two, thinking of where Thanks, the Great. next healthcare the attractive the wondering expand over any if more moment just construction like things events, pandemic-affected so was subsectors. could around the education,

Brad Soultz

across it's delivery think yes, mentioned despite nonresidential this in significant is and America. we're on what's and headwind stability you We almost Yes, been North I these rates last everything unit achieving answer the pretty a rent the mentioned. call and in

of Day. sectors us And these We three our serve can So help on gains goes although so panelized, it's can and Investor you our markets. – and the example XX% stack did focus the are that on that's capital a much as of A those seen end-to-end products the would aspect can are we've mention new new That's page into Tim you dense focused our great across very modest assets. these stack about them front of side-to-side fleet, of their as capital. like. new high, significant specific

take the think expand the aspects of those of we can us new into can assets that products, VAPS we markets. all core and So the both themselves,

Sam England

Great, thanks very much.

Operator

Thank you.

comes from Sameer today question Goenka final Deutsche Bank. Our from

Sameer Goenka

my Hi, question. for thanks taking

quick one. a Just

way about know have be there of the I'm it and you take talked to don't target I if like internal get number to you mind? levers what even just the front, VAPS under wondering So XXX. are an have what higher in higher, would

Brad Soultz

cities across are the U.S. that or the numbers more and in in the at of We and XX XXX, are that territories $XXX got reps, XXX. of distribution got Canada several already and vast territories you've higher months. so the Mexico. above in already XX%, rate last the full We've a where average Yes, even XX%, simple do deliveries operating think of have mind. That's terms of in a over set

the house, if social know it's our It's in proof will. you we is So achievable.

we kind if it penetration, And of so set sequential been the XX% will. fully the target, time. Mind time, upon to our driver the as doing the portfolio you we with $XXX at is lift will, units you That's offering of what achieving tail, XX% was if making we sure an we've we that Meanwhile, when will had deliver XXX. primary we're the always the lifting was the you, furnished X%. at had increased based

our actual you the math rates delivered even understand do can So of and north that. are

consistently. reps do consistently. So areas it that We've it got we've got do full that

We also we've include the about if eclipsing social-distance-friendly with VAPS I data cetera. as example, are an walls, as will, portfolio extended would cubicles packages, you like higher et that excited to say more

is of as always then will if the you VAPS value. we're incremental So we that needs striking the make XX%, finish we more sure provide to yield we penetration get furniture balance that to XXX. started, will, And that portfolio, which add what

Sameer Goenka

you. Thank thank. Great,

Brad Soultz

a look Mini We Mobile days. the Hey, about I to accomplishments WillScot again, a tremendous for QX. today. to just folks of team, big set Alright. want forward thank XX And to in you talking in to us joining everyone thanks

Tim Boswell

WillScot you Thank your Mini. Mobile for in all interest

after may questions me. Operator, today's call. the additional you contact you. Thank any call, have you please If end now

Operator

and Thank today's you gentlemen. ladies concludes conference. This

disconnect. now You may

WillScot (WSC) 2 May 212021 Q1 Earnings call transcript