Willscot Holdings Corporation · NASDAQ:WSC
Willscot — Q3 2017 Earnings Presentation
27 slides from Willscot's earnings presentation, 2017
Slide 1: Quarterly Investor Presentation Third Quarter 2017
Quarterly Investor Presentation Third 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: Operating Highlights
Operating Highlights • Storage Solutions activations at all‐time high Rental Business • Tank & Pump Solutions awarded two new contracts and demonstrating strong Rapidly Improving utilization across all geographies • Business drivers remain healthy • Turnaround activity is picking up Favorable End‐Ma
Slide 4: Financial Highlights Q3 Results
Financial Highlights Q3 Results • Total rental revenues up 4.9% from Q3 16 – Storage Solutions +7.0% Rental Revenue Growth – Tank & Pump Solutions ‐3.7%; Up 3.8% sequentially • Storage Solutions rental rates increased 2.9% year‐over‐year; new rates increased 3.9% • Storage Solutions average units on
Slide 5: Diversified Company with Strong Customer Focus
Diversified Company with Strong Customer Focus Geographically Diversified Diversified Customer Base (1) Other Oil & Gas 6% 2% Tank & Pump Retail/ Solutions Gov't & Consumer North America Institutions Services 18% 5% 22% Industrial/ Commericial 23% Storage Solutions Construction North America Storage
Slide 6: 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% 69.4% 70.5% 71.8% 63.5% 64.2% 62.3% 61.9% 64.5% 66.6% Q1 Q2 Q3 Q4 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 2016 2017 Average Rental Fleet in Units (in thou
Slide 7: 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 Q3 16 to Q3 17 $13 $8 $675 7.9% $664 7.5% 7.5% 6.0% 6.0% ($10) 5.1% 4.7% 3.7% 2.6% 2.8% 2.9% 2.6% 2.6% 2.9% 2.3% 2.4% 1.9% 1.8% 1.6% Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 8: Financial Review
Financial Review 8
Slide 9: Revenue Highlights
Revenue Highlights Total Revenues Rental Revenues (in millions) (in millions) $136.6 $127.7 $128.9 $130.4 $121.8 $124.2 $126.7 $117.4 $114.7 $116.8 $117.9 $124.5 $123.5 $124.8 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2017 2016 2017 Total Revenue Bridge Q3 16 to Q3 17 • Third quarter rental revenues increased 4.
Slide 10: Profitability
Profitability Adjusted EBITDA (in millions) • Total adjusted EBITDA of $45.5 million, margin of 33.3%, down 290 bps from prior‐year quarter $54.2 – Excluding the effect of increased variable compensation the $46.2 $46.7 $45.5 margin increased approximately 170 bps over the prior‐year $41.7 $43.4 $42
Slide 11: Efficiency and Performance Update
Efficiency and Performance Update Number of Employees at Period End • Rental SG&A up $7.0 million compared to Q3 16(1) 2,008 2,020 2,032 2,048 2,026 2,044 1,998 – Increased variable compensation expense – Higher transportation and salary costs due to increased activity • As a percentage of total rev
Slide 12: Performance by Segment
Performance by Segment Total Revenues Rental Revenues (in millions) (in millions) $89 $84 $84 $88 $78 $83 $81 $82 $74 $74 $76 $77 $79 $80 $21 /£14 $21 /£15 $20 /£16 $19 /£15 $20 /£16 $21/£17 $23 /£17 $20 /£14 $20 /£15 $20 /£14 $20 /£15 $18 /£14 $18 /£15 $19 /£15 $25 $24 $25 $23 $25 $24 $24 $23 $22 $
Slide 13: 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 $48.4 $14.9 $10.6 $8.9 $25.8 $5.4 $6.7 $15.8 Q1 Q2 Q3 Q4 2012 2013 2014 2015 2016 2017 2016 2017 PP&E NET CAPEX Fleet NET CAPEX • Q3 17 free cash flow of
Slide 14: Debt Profile at September 30, 2017
Debt Profile at September 30, 2017 Scheduled Debt Maturities Total Debt and Leverage Ratio (in millions) (debt in millions) 4.9x 5.0x 5.0x 5.1x 4.9x 4.6x 4.6x 4.7x 4.6x 4.6x 4.8x 4.5x $650.2 $954 $942 $940 $937 $943 3.4x 3.4x 3.4x $930 $928 $906 $915 $946 $9.4 $860 $903 $513 $515 $526 $640.9 $251.8
Slide 15: Market Leader in Leading Storage Market
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 16: Appendix
Appendix 16
Slide 17: 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 18: 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 Q2 Q3 Net income $ 11.0 $ 4.1 $ 12.7 $ 19.5 $ 10.2 $ 8.8 $ 11.2 $ 49.6 Interest expense 8.5 8.0 8.0 8.2 8.4 8.8 9.2 34.6 Income tax provision 6.7 2.0 5.9 7.0 5.3 4.6
Slide 19: Reconciliation of net cash provided by operating activities to EBITDA
Reconciliation of net cash provided by operating activities to EBITDA (in millions and includes effects of rounding) 2016 2017 LTM Q1 Q2 Q3 Q4 Q1 Q2 Q3 Net cash provided by operating activities $ 35.3 $ 29.4 $ 31.3 $ 40.2 $ 32.7 $ 30.5 $ 32.6 $ 136.1 Interest paid 3.9 10.1 3.9 3.7 13.7 4.5 12.2 34.0
Slide 20: 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 Q2 Q3 Net cash provided by operating activities $ 35.3 $ 29.4 $ 31.3 $ 40.2 $ 32.7 $ 30.5 $ 32.6 $ 136.1 ‐ Additions to rental fleet, excluding ac
Slide 21: Reconciliation of net income to adjusted net income, Q3 2017
Reconciliation of net income to adjusted net income (1) For the three months ended September 30, 2017 (in millions, except per share data and includes effects of rounding) Statement of Executive Statement of Operations Severance and Restructuring Operations As Reported Transition (2) Expense (3) Adj
Slide 22: Reconciliation of net income to adjusted net income, Q3 2016
Reconciliation of net income to adjusted net income (1) For the three months ended September 30, 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 $121.8 $121.8 Sa
Slide 23: Reconciliation of net income to adjusted net income, nine months 2017
Reconciliation of net income to adjusted net income (1) For the nine months ended September 30, 2017 (in millions, except per share data and includes effects of rounding) Statement of Acquisition‐ Executive Statement of Operations Related Severance and Restructuring Operations As Reported Expenses (
Slide 24: Reconciliation of net income to adjusted net income, nine months 2016
Reconciliation of net income to adjusted net income (1) For the nine months ended September 30, 2016 (in millions, except per share data and includes effects of rounding) Statement of Statement of Operations Restructuring Costs Related to Operations As Reported Expense (2) Sales‐tax Refund (3) Debt
Slide 25: Constant Currency Calculations
Constant Currency Calculations (in millions and includes effects of rounding) Three Months Ended September 30, 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 Renta
Slide 26: Reconciliation of net income to EBITDA and adjusted EBITDA by Segment
Reconciliation of net income to EBITDA and adjusted EBITDA by Segment (in millions and includes effects of rounding) Storage Solutions North America 2016 2017 LTM Q1 Q2 Q3 Q4 Q1 Q2 Q3 Net income $ 8.2 $ 0.8 $ 7.2 $ 15.4 $ 8.4 $ 6.0 $ 7.8 $ 37.7 Interest expense 5.6 5.1 4.8 5.3 5.6 6.0 6.4 23.3 Incom
Slide 27: Reconciliation of net income to EBITDA and adjusted EBITDA by Segment
Reconciliation of net income to EBITDA and adjusted EBITDA by Segment (in millions and includes effects of rounding) Storage Solutions United Kingdom 2016 2017 LTM Q1 Q2 Q3 Q4 Q1 Q2 Q3 Net income $ 4.6 $ 5.1 $ 5.7 $ 5.1 $ 4.0 $ 4.4 $ 5.0 $ 18.5 Interest expense 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.5 Income