Willscot Holdings Corporation · NASDAQ:WSC
Willscot — Q1 2017 Earnings Presentation
24 slides from Willscot's earnings presentation, 2017
Slide 1: Quarterly Investor Presentation First Quarter 2017
Quarterly Investor Presentation First Quarter 2017
Slide 2: Forward-Looking Statements
Forward‐Looking Statements This presentation contains statements about future events and expectations that constitute forward‐looking statements. These statements can be identified by our use of the words “believes”, “expects”, “projects”, “should” or similar words. The forward‐looking statements he
Slide 3: Financial Highlights Q1 Results
Financial Highlights Q1 Results • Total rental revenues up slightly from Q1 16(1); up 1.3% when adjusting for the extra day in the prior year Achieved Rental – Storage Solutions +3.1%; +4.3% when adjusted for the extra day in the prior year Revenue Growth(1) – Tank & Pump Solutions ‐11.4%; Downstrea
Slide 4: Diversified Company with Strong Customer Focus
Diversified Company with Strong Customer Focus Geographically Diversified Diversified Customer Base (1) Oil & Gas Other 2% 5% Tank & Pump Retail/ Solutions Gov't & Consumer North America Institutions Services 19% 5% 20% Industrial/ Storage Solutions Commericial North America 23% 65% Construction Sto
Slide 5: Active Rental Fleet Management
Active Rental Fleet Management Storage Solutions Tank & Pump Solutions Average Unit Utilization Average OEC Fleet Utilization 75.2% 68.3% 69.0% 68.4% 70.5% 63.5% 64.2% 62.3% 61.9% Q1 Q2 Q3 Q4 Q2 16 Q3 16 Q4 16 Q1 17 2016 2017 Average Rental Fleet in Units (in thousands) Average OEC Fleet Inventory (
Slide 6: Driving Rates With Premium Products and Services
Driving Rates With Premium Products and Services Storage Solutions (excluding divested wood mobile offices) Year Over Year Rate Change Yield Bridge Q1 16 to Q1 17 $12 $657 $637 ($6) ($7) 7.5% 7.9% 7.5% ($19) 6.0% 6.0% 4.7% 5.1% 3.7% 1.9% 1.8% 2.6% 2.8% 2.3% 2.4% 2.9% 2.6% 1.6% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 7: Financial Review
Financial Review 7
Slide 8: Revenue Highlights
Revenue Highlights Total Revenue Rental Revenue (in millions) (in millions) $128.9 $130.4 $121.8 $124.2 $124.5 $123.5 $124.8 $117.4 $114.7 $116.8 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2017 2016 2017 Total Revenue Bridge Q1 16 to Q1 17 (in millions) • First quarter rental revenues increased slightly from Q1 1
Slide 9: Profitability
Profitability Adjusted EBITDA (in millions) • Total adjusted EBITDA of $41.7 million, margin of 33.7% • Storage Solutions adjusted EBITDA of $36.1 million $54.2 – Margin of 35.6%, down 220 bps from prior‐year quarter $46.2 $46.7 $41.7 $43.4 – Storage Solutions adjusted EBITDA down 1.0% when adjusted
Slide 10: Efficiency and Performance Update
Efficiency and Performance Update Number of Employees at Period End • Rental SG&A up $1.7 million, up $3.6 million in constant 2,008 2,020 2,032 2,026 1,998 currency, compared to Q1 16(1) – Increased compensation expense – Higher transportation costs and repairs & maintenance due to increased activi
Slide 11: Performance by Segment
Performance by Segment Total Revenue Rental Revenue (in millions) (in millions) $84 $88 $78 $80 $83 $81 $74 $74 $76 $79 $21 /£14 $21 /£15 $20 /£16 $19 /£15 $20 /£16 $20 /£14 $20 /£14 $20 /£15 $18 /£14 $18 /£15 $25 $24 $25 $23 $24 $24 $23 $22 $23 $21 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q1 16 Q2 16 Q3 16 Q4
Slide 12: Free Cash Flow Generation and Shareholder Value
Free Cash Flow Generation and Shareholder Value Free Cash Flow Capital Expenditures (1) (in millions) (in millions) $27.7 $79.2 $23.7 $71.6 $20.9 $10.6 $25.8 $5.4 $6.7 $15.8 $9.1 Q1 Q2 Q3 Q4 2012 2013 2014 2015 2016 2017 2016 2017 PP&E NET CAPEX Fleet NET CAPEX • Q1 17 free cash flow of $23.7 millio
Slide 13: Debt Profile at March 31, 2017
Debt Profile at March 31, 2017 Scheduled Debt Maturities Total Debt and Leverage Ratio (in millions) (debt in millions) 4.9x 4.9x 5.0x 4.7x 4.6x 4.6x 4.8x 4.6x 4.5x 4.6x $647.6 $954.1 $941.9 $939.7 3.4x 3.4x 3.4x $930.4 $927.7 $906.0 $915.2 $946.4 $8.8 $860.3 $903.0 $513.4 $515.4 $526.3 $638.8 $250.
Slide 14: Market Leader in Storage and Tank & Pump Solutions
Market Leader in Leading StorageMarket Solutions and aPosition LeadinginProvider of Tank & Pump Solutions Deep and Strong Brand with Strong Brand Experienced Superior Products with Premier Management and Premier Service Service Offering Team Offerings Significant Significant Asset Asset Coverage Div
Slide 15: Appendix
Appendix 15
Slide 16: Non-GAAP Financial Information
Non‐GAAP Financial Information In addition to disclosing financial results that are determined in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company also discloses in this press release and accompanying presentation certain non‐GAAP financial information. These finan
Slide 17: Reconciliation of net income to EBITDA and adjusted EBITDA
Reconciliation of net income to EBITDA and adjusted EBITDA (in millions and includes effects of rounding) 2016 2017 LTM Q1 Q2 Q3 Q4 Q1 Net income $ 11.0 $ 4.1 $ 12.7 $ 19.5 $ 10.2 $ 46.4 Interest expense 8.5 8.0 8.0 8.2 8.4 32.6 Income tax provision 6.7 2.0 5.9 7.0 5.3 20.3 Depreciation and amortiza
Slide 18: Reconciliation of EBITDA to net cash provided by operating activities
Reconciliation of EBITDA to net cash provided by operating activities (in millions and includes effects of rounding) 2016 2017 LTM Q1 Q2 Q3 Q4 Q1 Net cash provided by operating activities $ 35.3 $ 29.4 $ 31.3 $ 40.2 $ 32.7 $ 133.7 Interest paid 3.9 10.1 3.9 3.7 13.7 31.3 Income and franchise taxes p
Slide 19: Reconciliation of net cash provided by operating activities to free cash flow
Reconciliation of net cash provided by operating activities to free cash flow (in millions and includes effects of rounding) 2016 2017 LTM Q1 Q2 Q3 Q4 Q1 Net cash provided by operating activities $ 35.3 $ 29.4 $ 31.3 $ 40.2 $ 32.7 $ 133.7 ‐ Additions to rental fleet, excluding acquisitions (10.9) (1
Slide 20: Reconciliation of net income to adjusted net income Q1 2017
Reconciliation of net income to adjusted net income (1) For the three months ended March 31, 2017 (in millions, except per share data and includes effects of rounding) Statement of Acquisition‐ Statement of Operations Related Executive Restructuring Operations As Reported Expenses (2) Severance (3)
Slide 21: Reconciliation of net income to adjusted net income Q1 2016
Reconciliation of net income to adjusted net income (1) For the three months ended March 31, 2016 (in millions, except per share data and includes effects of rounding) Statement of Statement of Operations Restructuring Operations As Reported Expense (2) Adjusted Revenues: Rental $117.4 $117.4 Sales
Slide 22: Constant Currency Calculations
Constant Currency Calculations (in millions and includes effects of rounding) Three Months Ended March 31, 2017 (1) (2) As Reported Calculated in Constant Currency Difference Portable Storage Tank & Pump Portable Storage Tank & Pump Solutions Solutions Total Solutions Solutions Total Total Rental re
Slide 23: Reconciliation of net income to EBITDA and adjusted EBITDA
Reconciliation of net income to EBITDA and adjusted EBITDA (in millions and includes effects of rounding) Storage Solutions North America 2016 2017 LTM Q1 Q2 Q3 Q4 Q1 Net income $ 8.2 $ 0.8 $ 7.2 $ 15.4 $ 8.4 $ 31.9 Interest expense 5.6 5.1 4.8 5.3 5.6 20.8 Income tax provision 5.1 1.2 7.8 8.6 5.6 2
Slide 24: Reconciliation of net income to EBITDA and adjusted EBITDA
Reconciliation of net income to EBITDA and adjusted EBITDA (in millions and includes effects of rounding) Storage Solutions United Kingdom 2016 2017 LTM Q1 Q2 Q3 Q4 Q1 Net income $ 4.6 $ 5.1 $ 5.7 $ 5.1 $ 4.0 $ 19.9 Interest expense 0.1 0.1 0.1 0.1 0.1 0.5 Income tax provision (benefit) 1.1 1.1 0.1