WSC - Earnings call transcript Q1 2024 | WillScot Holdings Corporation

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Operator

Welcome to the First Quarter 2024 WillScot Mobile Mini Earnings Conference Call. My name is Cherie, and I will be your operator for today's call. [Operator Instructions] Please note that this conference is being recorded. I will now turn the call over to Nick Girardi, Senior Director of Treasury and Investor Relations. Nick, you may begin.

Nick Girardi

to Mobile welcome XXXX First and Call. Earnings afternoon, the Mini WillScot Quarter Good call Soultz, include and today's on Participants Brad President Chief Tim Chief and Financial Officer. Boswell, Officer; Executive Investor may found Mobile material website. of presentation Today's Mini on the the Relations be WillScot section X safe statements. contain our X and Slides harbor

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

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

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

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

Bradley Soultz

afternoon, today. and joining WillScot everyone, CEO of for you I'm Mini. Soultz, Good Starting Slide us Mobile thank Thanks, on X. Brad Nick.

line minutes. were our a in quarter results few and in XXXX solid milestones update significant the like provide brief regarding the team Tim as strategic status QX more will outlook. McGrath support also the a Our our these accomplished I'd highlight to cover transaction. in as expectations several well and in first detail with

and space single of This WillScot combined can offering our teams we in a team go with Mini single full us First, leadership customers our turnkey a that to service January, and to Mobile under structure sales allows organized our across geography. legacy operations solutions. by market locally

suite every capabilities opportunity. team empowered Our our every to is now at customer present of to full

in this own and equally their opportunities career inherent colleagues are my And development excited for structure. growth

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in effectiveness, customers. sales tool vast our call finally, These enhancements are opportunities leverages direct also generated support opportunities Project transaction feedback and These by One from I'm response history. we our informed algorithms ahead project get developing about to we excited recently Project to identify of customer of our And sales sources particularly force third-party our in launched segments. proprietary profiled data across initial bidding are multiple by internally largest well One.

type. time, sales estimate a platform each prescriptive then to conversion tailored us the optimize and gives full improve and upon by for project be are automatically then This and requirements solutions expert turnkey are geography. -- assigned appropriate which solution more cross-sell and We product project, bundled most the to size recommended local to that space selling based

every businesses profitability. and harmonized the systems teams foundation and and value while of over dramatically aspect seamlessly customer business new even the the customer years, to Taking our further unrivaled our offensively, integrate proposition. a and expanding step enhancing differentiating position now more With painstakingly and and diligently team experience more back in are our our past deploy business processes X is we've technology worked in harmonize growing this a to place, underlying

further I'd continue complex levers execute of like growth to will these thank the years as our the stakeholders to to team for billion accelerate to of their execution the flawless $X safe we idiosyncratic for all which initiatives, and growth benefit come. during

opportunities Slide incremental with second communities, that to employees a for turning we acquire and Now in our value the to and see collective our XX. agreement history in half we execution XXXX. of We creation, January expect to definitive close announced to Consistent tremendous drive value shareholders. customers, of McGrath

in enhanced unique resulting opportunities assets, Our but service each our broader solutions, our for and segments are well space capability colleagues. career customer fit customer geographical together, turnkey and footprints additional

unique to like two highlight associated with these platforms. combining drivers several I'd examples value of

First, we'll done offering, all portfolio journey as this we the begun through has past plus satisfaction. in can we've McGrath acquisitions. cross-sell WillScot overall improving MM VAPS and while customer believe accelerate comprehensive already this successfully we growth their

customers to WillScot solution in benefit innovative custom and McGrath's clearspan and access capability. sales to WillScot's [indiscernible] customers climate McGrath benefit from Second, FLEX, from will, go Kitchen modular turn, will control

the real we Place development, in-house transportation new integrate and customers. expertise industry capital McGrath's inventory verticals. We'll customers. education the one and grow We'll to is great centers have can pass on on to the network, WillScot We'll our the combined building share learning over great our We'll which sector, leverage synergies. example best-in-class footprint fleet Work community the certification. efficiency can realizing in in better serving engagement programs, service McGrath crews which from safety, WillScot clear benefit all McGrath's our time. benefits, service estate of to combined optimize the across We'll how

thanks future. combined platform on our for drivers to WillScot's the these highlighted with seamless on to on of about investments. makes the this To potential all right list how us with value integration, of all benefits all boxes slide, stakeholders, this The excited with we've support goes And prior and check creation. advantages technology can which respect finally, the

teams. outstanding X by underpinned are these importantly, Most

with had to We've to unlocking been ours built McGrath's we is stakeholders. fantastic. for been by and that far strong interactions excellence impressed approach problem-solving customer customer believe appropriately with pragmatic focus, value limited particularly McGrath all our on the we've drive a complementary thus are both to work I focus team's the While and common ethic. has on close, collaborate everyone, truly first, culture until opportunity

I'll this touch down the engage put speculation progress supporting is hypotheticals. virtually transactions the our Finally, of on there's We M&A this or days. FTC's as all of and know don't lot in around We and work. to these review with there a been go I speculation heads transaction. noise process

and are process the who in advisers are with circumstances. intimately excellent have and familiar experienced our We facts

has professional. productive a collaborative with and FTC, which been We're both the dialogue in engaged

its the expect we'll in all position that that a we McGrath when the expect complied half be early close we in quarter. upon to progress a transaction FTC's we'll FTC, to in remain We how opportunistic And bridge vote the year, hold have shareholder of the in second anticipate that with And of be QX. information we replace our second to as working with the and as position financing. will Further, XXXX. the request in progress the we'll based

proven growth have formula clearly and creation. a sustainable value drive to We

of our has benefits for in will control. fully growth clear idiosyncratic billion our acquisition all the growth accelerate McGrath $X Our and both levers and proportionately increase of stakeholders

it strategic transform every hand how And proud customers. that results our of continue to cash free the over million incredibly these will the is teams outlook and do see day due free on to tireless milestones course. well discuss With in flow $XXX We our to support that, important execution per expert surpass behalf initiatives I'll I'm and how business of to for our QX highlight of flow and $X by and of share beyond. we deliver our cash execute XXXX field in transaction, the Tim and

Timothy Boswell

good Thank of quarter. Page and and XX high-level shows you, evening, a Brad, good afternoon the everyone. summary

year, Our expectations with QX start we're to on in overall year financial yet good record deliver a the performance. to another line and our track off so results were of for

I'll still be as favoring Nonresidential to programs line stabilizing starts federal of some context see and projects the a skewing results. supported trends to multiyear that square tailwind nonresidential XXXX in North start We year, well the to America. market levels. with spending larger both as but conditions various the for the provide as start reshoring mix commentary view some to appear foot by with continued decline on

In can see backlog in we XX-week the challenged, short mix ending activity. almost term, this QX. Modular smaller, sequentially more in into were heading up remain period transactional strong and the mix in year-over-year order and interest April. sensitive of activations building rate a Modular and the and very shift projects storage X% year-over-year with activations are modular our

plans product So performing is heading our the into on modular for year. original track QX, with

increased expected. those below April, sequentially plans. lag to normal continue hand, monthly other the with on activation original have modular, And increases we while volumes, rates consistent seasonality, which our are Storage into

seen we of benefits risk organization are referenced to volumes from the the to some Brad there yet storage opportunities improve enhancements various plenty continue performance and and that So have of here. system also but haven't

where growth across Pricing another Value-Added remains opportunity Products in modular storage. categories have monthly the XX% of across rate product year-over-year area in of with lines well XX% average are strong in we year. inflecting year-over-year very product and and all both the remainder are major

as and over Page month the per expected. on Value-Added year-over-year the last XX our over see per in Products activations modular can the positively you inflected of XX, QX XX% unit is $XXX portfolio of As on months average

Products storage in of up activations on per unit are XX% $XX Value-Added And month year-over-year. months XX per last the

quite of these to about continue excited be we both streams. So revenue

volumes obvious revenue overall being red we leasing heading growth into of lease drove conditions overall, mark. had question X% flag mix a biggest KPIs half the storage second the quarter, So being and in the the healthy macro with that

slightly million was plan for recent Nonetheless, contracted from of I leasing XX% enhancements. expect of was half margins with EBITDA sequentially and realize the right meaningfully adjusted $XXX expected we revenue margin all the but efficiencies and year for $XXX million in of revenues build better second of and which line $XXX our lease expand will of the the we as we revenue, EBITDA, both quarter, our had generated quarter. million system Adjusted in year-over-year, of and than

Return free flow the of our is XX% a predictably returns cash free was XX our flow million months, Free last in generated the XX over share is flow year-over-year cash of be capital milestones. range. months which we've $X.XX margin. and flow continue And cash at is flow invested towards on middle which the up in to outstanding. $XXX free XX%, XX% of and cash cash represents last also per longer-term the over And compounding operating quarter

in the stock, recent trailing are flows we transaction the metric, cash on macroeconomic undervalued prospectively. largely on significantly with our this Obviously, concerns, think alone pullback and let

the for April across execution by share was the I good Overall, in accordingly. all So Brad's our repurchases and it to a year, we appreciation team echo fronts. our resumed multiple of start

Page which down decline by up in our out of and for XX what year. partly we of quarter. EBITDA returns. revenue and revenue a was Total Adjusted the driven EBITDA year-over-year, our although in anticipated was X% heading activations sequential transportation reverse leasing and quarter. of X% revenues, we margin and adjusted factors growth This lays with the expected ahead offset was should was by contraction both that storage through XX% driven by lower volumes X%, the revenues, slightly two as sequentially progress into

First, expect the for storage QX. low we their point in at movements unit were year

in-source movements increases to overall transportation. of course we'll more leverage the the trucking of and fleet the of out year, volume as our better opportunities get So through

products activity Secondly, and repair work head activity as is for QX, modular into volumes. increases ramping and delivery order in year-over-year maintenance supporting we

are leasing stabilized as see with our lastly, efficiency building revenue year. lease expect will QX into and gains through the we in to compounds system expenses we maintenance beginning believe reflate enhancements QX, XXXX. And naturally margins We begin in to that and

sustained So albeit this in second weighted margin those drivers. to the of we and anticipate given into XXXX half expansion continue to XXXX, year

shifting per the flow. at continue process. the costs support do want and of and us year. to approximately integration approximately the before $X.XX of and million This Lastly, McGrath to in to $XX quarter, review $XX million for cash transaction share regulatory transaction-related signing the I the the of flag rest quarter related I the expect for per roughly we'll cost in quarter

guidance the get when and our So and overall, original talk we'll and to on the risks about QX were results opportunities year, plans consistent with guidance. we our views for

units as our as organically. Page generated XX% from investments XX. that revenues. we activities increased predictable up storage flow We controlled operating to in by lease strength. in year-over-year, activations a continues Net be work XX% well to to climate Moving $XXX driven QX, million build year-over-year as million Cash new due $XX to offering orders modular CapEx support to recurring out

during XX% flow the of the target to longer-term in, over flow quarter, Free in All and margin $X.XX share continues operating we $XXX last was which per the a generated months, range. which over XX% middle our and up is cash compound at XX milestones. in year-over-year up quarter the XX% was of million of our free year-over-year towards cash

are before cash believe eclipsing $X incorporating cash McGrath in We are and this the predictability flow profile per of years quite and of flow differentiating of features X and next comfortable business. free best-in-class the impact key our share

I've when on by at of leverage year said to deleverage Turning inside choose. leverage trend Xx our EBITDA, so XX Page X.Xx downward maintained sequentially QX. QX per to is net previously, debt last XX. comfortably months a QX we to Leverage as easily can into We adjusted approximately target heading which from we to X.Xx. And is X.X

are flex closing range months leverage into McGrath back then within So the intend upon XX and upwards we closing. acquisition level deleverage to our this and comfortable again post at target

January of a at X-month notional fixed term In value X.X% to XXXX, million $XXX fixed of we SOFR. SOFR rate for a swap executed for floating

or March with deferred X.X% XX, average million fees. weighted cash annualized interest of $XXX pretax cost of approximately As noncash approximately is of of debt financing million our inclusive XXXX, $XXX

structure XX% and Our floating. is fixed debt XX% approximately

ABL refinance we'll as our have notes we consideration, towards commitments financing for and costs. the time opportunistically McGrath refinance we we cash to liquidity to the transaction, those available upon And XXX% progress announcing ample optimize committed have at discussed of We as any XXXX closing. interest capacity and

any invested allocation which norms organic the last demand has XX our XXXX, count. last XX share $XXX we in did resulting lower over QX while historical framework approximately XX our the $XXX acquisitions majority in outstanding which we've XX.X repurchased on cold capital not a shares our We our went end months. fleet the given shares in million the of XX the been over and last We storage X.X% over $XXX million Page XX and towards shows repurchase performance months, the of And platforms. invested the environment. million over new clearspan or months investments, million months, over reduction over last in in

to One the allocate delay that silver it gives McGrath lining near-term in capital. actually is closing from more us flexibility

that opportunistic the continue we in valuations maintain that repurchases April target transaction. the with dropped. post-closing we share resumed opportunistically So repurchases structured as for leverage We'll to McGrath be ensuring while we

which Before shows Page turning it is back to Brad, unchanged. XX our outlook for XXXX,

the that are we with maintaining during XXXX in plans. call, was We the internal that given QX issued outlook line QX our

We an products volumes of macro discussed. Relative offsetting modular guidance, we we've value-added headwind the take upside products, our continue for cautious and a original are some see our as view obvious and storage margins. to potential to

consistent year, In outlook. mid-single-digit few through a of we which continue terms for as sequential growth each is quarter next progress steady the the to our with see the sequential cadence quarters, we original revenue

the I QX expansion sequentially more more volume movements revenue from impacting QX, could be into growth and expect storage in margins with with of that materializing modular with coming and trucking, lower QX. the of of margin However, flat

So that identifying. slightly original perfectly the that mix margin cost as our as we activity than efficiencies cadence logical are well outlook, different is though of the given

are unchanged. Capital expenditure year the plans for

units storage flex Value-Added for Given refurbishments, fleet. and and and in investing Products, the are of performance volumes both we modular the modular the Products Value-Added

business where were Our And organic fleet so track, plans for entering the based storage are cold storage on never we CapEx the any utilization there planned on levels we are for year. dry adding organically.

where right change now. no plan based that sit So on we obviously, to

of flow. impact I and which forward the expenses to modeling going for $XX million processes, cash purposes, integration the and roughly per regulatory will related EPS McGrath will quarter flag Lastly,

flows. a predictability company of So for Anywhere differently inherent another that implies like financial any the will XXXX. lot into different the rate we the our playing on growing every range run of than to business cash metric across bit results almost a year, year guidance originally XXXX which is levers record beauty planned, a of of out the we is drive but have top represent our within and with

by begin and we and team Brad together, McGrath our powerfully compound that to And we the will value articulated expect have predictably of unlocking over will levers year, platform end the And of all the which across board. those time. on

challenge. team So in we that, have year to the you. some here, up work to do to of to outlook stage, the for energizing I'll the we're set our it hand that remainder that extremely Brad, is With but and back

Bradley Soultz

continued thank you their for listening shareholders would you their line all to and our of concludes please for for your and capital. remarks. customer Tim. your good focus questions. to customers safety to for team This Thank on health. Thanks, our I safety business, our open with and you trust thank Operator, our prepared today you continued wish satisfaction you the

Operator

[Operator Instructions] from question And Oppenheimer. come the first line of Scott with our Schneeberger will

Scott Schneeberger

with originally closing anywhere mentioned Tim, of reading trends? But year, work again, within takes right elaborate year be, you just just nice as are range expected kind where and of changes another different that with will And than do the could are your remarks, you guidance XXXX, are range in puts top now? X X specifically, growth. the the and if some far the between or unlike to to this the as you you lines, it what expected the regard

Timothy Boswell

the Yes, much guidance not Scott, And is really range unchanged. has hence, changed.

for the we right you middle is internal puts we good. probably would If the the right rest on that where commented which on expected. good and to in landed place QX, you our of year, about quarter-to-quarter in sequential right a be center I guidance where our revenue was think it plans, which range just top growth mid-single-digit of of

revenue we to and we what no the heading change into see there's based So on outlook finished really QX. where QX

the that is relative versus storage only outset incur And building that is that going stream, means of we creates it continue we've we thing that to activations at maintenance activity trade-off. changed which that what margins, would mix on but to to X-year we're wonderful The lease that and does has a means pressure things. a modular lease, It originally you're modular the of budgeted. two stronger incur a got short-term that a have

I total leverage of the And operating less our are as me And begin trucking activations then cost and those what causing expected. are sequentially refer and QX in the you're over units, That EBITDA we likely to lower both QX. flat to means getting fleet. to because those factors storage returns from are to QX fixed expand are than two margins think then QX and in movements, that really

exit If I XXXX, original a the the would run contrast expected the year going a have even guidance. of more for EBITDA that good the guidance, as I time. we margins with original this rate, in over very and expansion both guidance our spot in implication But puts us into in

change in outlook. change kind of mix no business, to nuanced the the around activity real a overall, it's the but So of

Scott Schneeberger

others a closing let April. all of up the get in follow share the I'm looks mention in I'll decision on to like later on go right. McGrath the we'll All year. going And that. it now to of I appreciate that. repurchase

So little you it's with in to bit the apply given cash flexibility interim. more how a

are so in you on the that sharing whether open just capital applying just not, far? you in repurchased your to much or So April answer interim? thoughts what your you've here are how And one

Timothy Boswell

that for for as we paused back are not consistent have you shareholders repurchases the compound of had last to very allocation our in repurchases still capital think the couple return been and framework years, Look, going on were to to QX and of and enthusiastic working if But Scott. share capital to We about mechanism the we exact McGrath amounts, amplify QX the a duration And lever. back transaction. returns. we're

point, the that we of generated internally capital. lining we the capacity deploy FTC as is process But balance that to sheet shareholder have responsible silver need in your of cash delay and flow to the stewards

use to we through as a progress absolutely continue these the that wonderful at here we intend repurchase is deployment valuations, capital of QX. So and

remarks that. leverage cognizant I up and are my also we're McGrath close to said in transaction, of flex we very that going the to

a increase anything at announced which months post reduce we about So we as And do X.XXx leverage within not and standpoint reiterated full transaction, closing. the today, closing the that XX post-closing and now leverage. between talked capital that would said that, we we'll was from we will that time beyond turn by about a and allocation when that

Operator

One moment of question. that will next line Barclays. the And Patnaik with for from Manav come our

John Ronan Kennedy

units for quoting then was of last driver given X%? And Kennedy Can made Manav. delivered just modular last down Ronan is year? the I confirm what the switch then VAPS This what XX modular on months segment XX months the now? you're that last VAPS and was And

Timothy Boswell

Ronan.

on Value-Added some XX, we modular activations segment. see legacy had that $XXX you'll So unit all from Products XX number third-party months. managed storage of per about That services per Page month last the includes over the

you would QX, that higher the that quarter. as it's So a included isolate consolidation number of X is last In the that seen months, the function than a just year-over-year. last this And up quarter. if metric we have we segment little

VAPS indeed infer that seen that we've waiting leading we yes, we've in can rates, to metric we been higher QX. which continuing edge inflection have the here. see you this and than So that delivered into modular that, reported the is which see on And

seeing traction. going were per with right? So I get very really across asset this year-over-year introduced doesn't XX% look some we're much, do team. leading exactly to starting for over up Products unit the the that's Value-Added It we edge storage pleased number, actually $XX Products highlight said penetration class, and a what well we Value-Added but with per to $XX and metric it's in levels want the the well, that and do above turnaround like that's month, we And that as to

John Ronan Kennedy

the flat be would below down the inflection which seeing to year on track on and implications and assume implication for for the with for units being monthly the the total the volumes, some I you're follow-up, are up single rates a plans, activations, risk And what same I on the are rent of X% rent ultimate are then low for digits. to original UOR plans, on storage What modular year? units the storage activation as implications think,

Timothy Boswell

Yes.

right terms think of in actually modular assessment on, I the your of you're business.

on below original slightly sustained. expectations or with QX. for second track inflecting So storage with on rates averaging our that our expectations rent bit the is assuming half, unit activation in are I down sometime original are expect rent unit those sequentially rates that a Activation rent on for the into year. And on

business. it by really And again, can rent probably we're -- discussions some then unit move the and few really inflection here see of the encouraged QX kind year-over-year we'd storage earliest there accounts of of enterprise our a a or needle, in is the there. on the I'm But having

Operator

Blair. of One Mulrooney with And William from will moment line for our come the that next Tim question.

Timothy Mulrooney

questions a of demand. quick on Just here couple

across the demand a half segments supports XXXX. rent the in highlighted of You on second inflection customer unit

make that that So confidence demand that facet to was in expecting seeing what end improvement construction gives retail really remodel of just little more the Is us? dig Can curious you a an half? or second into statement. or you because that you're Just some in other for market nonresidential that bit you're interesting.

Timothy Boswell

this Tim. Tim, is

unit portfolio, have year-over-year we lease on year-over-year basis. year-over-year the quarters duration the X-year because inflect And growth for about year. through It rent expectation consecutive the was specifically positively cause of year. was takes on product, the several the -- So mid-single-digit predicated course a it on this sustained this was on the we're say to of when modular activation activation growth rent underpinning that. always our talking unit we And to

seen year. what as X it the plans. how sustained, perfect is visibility, what months. we've backlog the inflect it our look it's in half But we of into don't modular for cause and if And of half the We course, rent you see have to we with the into at And into on in now time we is original started products. second some terms what would So we've see to through next the April. that line indeed it's the year in QX, the going second of

Timothy Mulrooney

Got it.

this extrapolating this this helpful. so mean, built on question That's to And other quarter, just trends. I isn't asked I'm going current I but I'm provide And again, this is what ask on growth hope. last first you quarter, for is cold acquisition? your could was portable rental portable the average excluding storage rate in pricing storage. core if curious the the it storage

think half quarter, of I that noise, said you storage was cold last the pricing. seasonal retail driven from there was think, by I but acquisition, some about increase

half something that? So as like storage again know, was quarter up don't it that about this and I well XX% maybe, or rates core were portable rental year-over-year like

Timothy Boswell

speaking, that as rate way unit. value to think that use differentiation, cold we I think a product a way is saying is per attributable to drive Tim. fine broadly half is about here to and about it, The higher do point bigger

the Mini of that pricing specialty got at doors higher different just Cold one storage happens features. So you've And and is products. even standard point. you've a all differentiated another fleet, got those be traditional other branded containers Mobile within to with got price containers, shipping we've across

So the we'll storage within menu by mix class. products. do product have which a specialty also but traditional cold, yes, of expect being is I benefit continue is those which Part mobile to part by being other of driven driven

Operator

One question. our come of And Steven moment will line next the for Ramsey TRG. with from that

Kathryn Thompson

is today. Steven Thompson calling in This Kathryn for

had of cash generation track flow a McGrath you the Looking and forward, record great acquisition, on are free as CapEx. focused managing you've

cash profile forward we look and does expenditure, McGrath, look -- what free you that CapEx as to As from how changes forward? capital are your there

Timothy Boswell

add to Brad have comments some Kathryn, this will I'm is Tim, and sure here.

would closing, that's believe cash post accretive share the So to when we modestly did earnings say case. year accretive in we first free and -- the continue to full flow announced transaction, and be the per it we that McGrath

as I think long as more it of a view that you lot let management we a it team. roll interesting and take and compound, of forward always kind gets kind the model

realized opportunities the we creation which of of past of When But in Brad $XX for There of ticked that's create representative are million transaction employees inherent straightforward our really on the value the all to we transactions. XX. Page the for XX in optionality a them synergy are announced value efficiencies customers, host you in Page a XX and highlighted for inherent through all of shareholders. cost synergies, transaction, we've view and transaction. gives And of of very

as opportunities complementary it, opportunities about both segment, of companies', fleet can on bigger are lot sharing force. right-hand the we in host product branch diversification a network using column, return scale go offerings, centers, inventory operational you cross-selling sales as their the has combined capital think And the right? checkmarks education in of across advantages, we into see That's invested efficiencies across are there and a because there

list nodes, literally to have and a across to in the being you the transaction And goes about way. execute So if on. don't and successful all these beauty this XX want that you it on like of is think can

going highly that this lose some, win be is some, we're a home can run you to time. confident You but can over

Kathryn Thompson

impact EBITDA I just just appreciate margin color versus flow then modular storage terms sequentially And in your margins. Great. on Okay. of with the

backdrop, quarter, picture and in in just not the XX the If pipeline of look what bigger the just guess, reindustrialization you next terms only or you seeing near the I you you give are view? so, and wins the on macro mix, overall that telling at you what terms in in WillScot how seeing months the what And then, step that ? just back of is insights term the overall the that over you're U.S. of what but see

Bradley Soultz

on this Kathryn, Yes. it touch Brad. is first. I'll

modular the we've being on rolling as given outcome a the this We projects onshoring, And seeing on think X-month nonresi benefits larger such. continued on rates outstanding basis. headwinds. call, think and activation up continued a X% times mentioned we're few reindustrialization these wins I the and reshoring, clearly mega the

discussed a associated with this on I'm one bullish number respect to and mainly long quite So those times. term, is with fronts. nonresi opportunities of Medium the we've construction,

respect to to think great in accomplish modular years a We don't Tim's any what that think, positioned volumes far several we're certainly just I take I heroics to year. extremely with this think well I advantage to outperformance And as here. seeing, But everything continue setup modular. outlined of we're need as recovery of

Operator

next question. with come that of Wittmann moment the will our for from One Baird. And Andrew line

Andrew J. Wittmann

you your last just if the conversion little between to Maybe is view their you from was time, how informing, on their talk of it the bit contracting? your maybe and opinion about and is the delivery? or how orders on a could I the behavior if wondering the of seeing quotations time was you're a guess extending that changing, price around it's all, that, end I saying sensitivity extending customers' if about some bit. timing this your markets? your if at year health still the talk -- rates that know I little were detail I indicators. between quotation extended leading wondering was as further order and that's or consumer maybe

Bradley Soultz

start Yes. is with. Brad Andy, this to

specific I will was it last think this we're phenomenon about you're effectively, seeing but We've right. similar, year, modular said And very So portfolio. right? modular. lag the We storage something to talked

in the business up year-over-year. X-month storage So activity quote is our rolling

mentioned, we're timing Tim is right? bit seeing this saw necessarily in maybe we are modular. I we a phenomenon conversion business, rates a because like As think not that's but slow, losing

and that elasticity, test to do as there Tim the every price, always course, like to on we side we is both will with as see the logistics well right, as prop. mentioned, core right, the value validate normal if -- And as product product in market every price it of volume itself position

too So I recoveries setup. similar lagging think into storage the we're I lot modular. don't personally other read a And seeing than the to that much see of anything

Andrew J. Wittmann

guess talking was expected. moves different rate. I would same little what something the what read total about were obvious at have, I macro I Is the there I Tim, the and to you saying that I is about at down, being thought I from thing. about it. into think a guess, all? storage activations Got that's that's not fact units being the returned are curious, But that

Timothy Boswell

of So in to I based -- the expect you that units don't rent, on way think wouldn't base. unusual got in fewer to Andy. the as returns so, volume you being about just right? the see returns some I can think don't proportional anything on installed you've that fact

bit units that's self kind gets lower, every of period. base one mitigating a the both elements the a of of as quantity So installed And lower will portfolios. of return

overall It works of in the do kind through a based unit expected a of on actually see we where rent I as year, storage trended. in benefit storage does on the it than look rest But has but little modular. bit differently return in rent unit on to from out lower volumes

Andrew J. Wittmann

is the if was about of average guess for that factor, lease like storage time units I storage isn't the those wondering sounds that the time and on is the was was duration average changing. I corollary but the average same. that elongating the Okay. to rent a it lease

Timothy Boswell

right, think I that's Andy.

Operator

for moment that will our from Faiza Deutsche Alwy line of question. come One next Bank. the with And

Faiza Alwy

and some of in Or of mix are has storage. wanted we've talk it of function activation as whether in you before. better wonder projects? again this differences there's you modular competition? your changed differences what talked to and why I the terms I is a trending small gone factors think assessment large So than know supply, versus about But in time is just about I customer on, if and

color of give us of sort leading just storage to if think modular in rate more improvement any and you indicator hope that sort environment does. the we that recover macro isn't So is there And it the a there's an that. some at modular risk that of on doesn't the extent

Timothy Boswell

whereas of to this end, churn because always beginning the Faiza, the Tim, storage bizarre is concept goes at you're out and business. a -- that comes very almost some Yes. modular type in concept leading going off intra-project more a get the is at This storage is of the project indicator

retail water. have The business only that which storage, we that modular. the in one One don't versus really ones. storage, any we we hold doesn't So modular in they're big two drivers difference exposure that the is between see really have the of

quarters. to think beat one we've that And I death over of the last couple

those right? to us terms that towards modular disproportionate a nonresidential The that projects sophisticated activity in to mix is second an a of more projects, construction has business currently. disproportionate in That's obvious do nonresidential larger, mix so of benefit the the as have mega the in we more And the activity well-documented of skews construction modular phenomenon larger business. exposure

it not programs federal course the foreseeable business persists tailwind, for I drawn coming of especially out future over to view as the for And stimulus be. the modular expect likely based do are I months. on, years, frankly, a the that these how

Faiza Alwy

I deal all then you confident And believe. that. stark investors of think lot I of done. the wanted you And contrast your on -- very But sound that's in don't to appreciate about hypotheticals to I just comments to Brad, Understood. touch -- the comments, deal. And how absolutely getting in your you want around I what engage a in and

I peek questions the us space? So what if what of in consolidation you're wonder you type defenses the give of of a regulators happening the sort can discussions, in getting and from into your terms

Bradley Soultz

Look, we've said it's great transaction. a

other was going think into We prepared will in further the closing. in already the made filing. get what The details I've a complying transaction than the confidence We're with We said I speculation selected require We we're here. a shared comments, And filing. review. my not to high filing have review. for on

Operator

for One line next Angel question. will with Morgan that And from come the our of Castillo moment Stanley.

Angel Castillo Malpica

moves or to of comment about market kind or because being driven pricing. any impact of share some go earlier I volume, just an the in not pricing necessarily to loss by back wanted of

Just the color that showed unit macro kind of of growth could some more of being related in rather than if anything pricing and related some little the on a the around of comfort what dynamic? you of recall project or McGrath moves reported to gives kind us on some of more a kind rent. think correctly, bit I you I numbers from give

on wanted the side? to comfortable you understand And what again, some just So differences. gives of pricing the

Timothy Boswell

Tim. This is

In report, terms decline, pretty meaningful reported McGrath the of and right, a utilization one. they a

was via on unit the rent So growth acquisitions.

just So piece. maybe was retail of exposure I can that a We within think identify the storage the that portfolio. misinterpretation

months, footage down square year-over-year, we're nonres the look over have at square footage if right? past XX% starts of XX QX, you As nonresidential starts, it been down year-over-year. for And

least So you market, know activity, volume in that contracted, right? the construction overall at has of

can look on I in meaningfully since line that units Nonres back versus and footage square they today and. in are where also where rent with XXXX. were up time volume were XXXX are go at and start

time period COVID, into are to the period So from meaningful we XXXX a of go you been where hasn't then that tells pretty over there that has me a been share trade today. and rebound volatile as then

Angel Castillo Malpica

I how what and how kind it in terms sequential versus of of just much more guide. rate you year on just to VAPS is the a kind of implication great. mix to is for And bit sequential of unit here? kind then back of rent go little That's us pickup just within rental wanted sense mid-single-digit Can full is the of a that much for improvement give kind

Timothy Boswell

Yes.

sequentially those that right? predictable, our So storage changing don't indicators I volumes that's the and that a we we would modular think volumes right? improving, sequential frankly, see are suggest into continue trends, So stable the expect going QX, expect roll QX QX. model have that And I And then Sequentially, to headwind improve and I very leading continues. rate been I in right and now have in anything forward. as

than different year, we here with leasing volume the expectations today similar compare being one KPIs our So the as sitting change. original the frankly, more storage been versus for

Operator

our One next come Philip moment line from that question, Jefferies. the will for Ng and of with

Philip Ng

basis And full year, Tim, to points. XQ. you're margins and XQ, stepped kind you in up if about heard it of the I flat expecting it's up sequentially correctly, XX be

it step-up has storage, higher think, versus think a it, math points? XXX I you're call my And if me is sizable is And I first So storage. correct, telling stronger half, half, second pretty implies margins. modular basis

of outsized the versus seems up pretty step which margins So confidence that gives of seasonality? nice in back half, you what kind in the

Timothy Boswell

build the same that of the sequentially year. the revenue expected lease course through we It's

more storage we movements of get anticipate off better year, of trucking get As we the the that fleet. you leverage through remainder the

benefit. business, impact the margin that the D&I do margins will and so profile a And be of overall [indiscernible]

service delivery does our the crews single any really return platform, is that or implementation or allows which drivers, any lever of this we're to -- third across dispatcher through And the the in this more modular resulting is activities in from a then us, return of our any trucks, service delivery dispatch furniture customer leverage our up a it's storage and in And given a QX. or this of or executed whether setting we our field market equipment. our what servicing,

redundancy basically So of to integration all across locally, had the we the teams two date functions. before those of

market, Now fleet we technician got I an that by service technician in HVAC reduction use much well, cost HVAC as third-party means. local maybe given the use as initiative don't But across a and now can at transportation. branch, resided modular any we've huge a that any third-party if view this entire and not

year, now that but over on we're we're XXXX as been ERP the synergies single field service And realization then years office of I virtue front-end, efficiency past initiatives be think few the more Mini of of well. our on much having not our some in company into the by the Phil, unlocking Obviously, there value cost few the a expected back a to through the years. we efficiencies also some almost entire going second expect platform, CRM implications created And in for can ago. here, one of are as you commercial Mobile from the has this, backbone going system. just acquisition that But of half

Philip Ng

through And margin Tim, storage on dispatch this D&I initiative Or going it modular you're side to that's and talking actually the well? through on the to flow flow going as about the is largely side?

Timothy Boswell

see margin. I leasing on can think the you it

in it see can think in you think and SG&A. see it I D&I, we'll I

to it's of us a in ways. think I touch lot So going

Philip Ng

the on of give little in how half, of pull-through more less perhaps at heard some TBD to gave any think Any you there's side? units unchanged. helpful weaker, the then still terms stronger to point Have color just more It on a kind context back would just, us progression about And half frankly, of visibility. in you retail or this little side the a the great modular because largely retail update in rent, sequentially. flat Storage, Okay. on back things? be on

Timothy Boswell

activation I it ago, with QX. to to share as rates a and But are No think, go was. you building referenced specific it worse see The order it being quarter as sequentially as volumes much than in we said, hard so that or order into storage I to information Brad relates QX.

flatten a and that Now unit expected a seasonality to seeing are be we it, normal that standpoint, expect sequentially. reason us is but give from to to right? So rent on does

on And you quarter would highest QX the frankly, then always, normally into for rent in see a build unit and storage. from QX QX is

a So seasonal based today. progression our expectations there, of where are kind I modest think, on from normal and we are pretty

Operator

at closing no further showing for I'm this in over queue Nick like questions time. the I Girardi to would turn Mr. to remarks. any back call the

Nick Girardi

Mobile all you for WillScot in Thank you, interest your Thank Mini.

additional If after questions call, today's me. contact please have you

Operator

concludes this and today's gentlemen, conference. Thank Ladies you.

You now disconnect. may

WillScot (WSC) 2 May 242024 Q1 Earnings call transcript