Slide 1: Quarterly Investor Presentation Third Quarter 2018
Quarterly Investor Presentation Third Quarter 2018 1
Slide 2: Safe Harbor
Safe Harbor Forward Looking Statements This presentation contains forward-looking statements (including the earnings guidance contained herein) within the meaning of the US Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended. The words
Slide 3: Temporary space solutions are our business
Temporary space solutions are our business. Everything about our company, from our expert staff to our turnkey solutions to our network of locations, is designed to make it easier for customers to make one call and get a complete, immediately functional temporary space solution. Our solutions are Re
Slide 4: Compelling Growth Platform And Leader In Modular Solutions
Compelling Growth Platform And Leader In Modular Solutions Established Brand with Strong Legacy of Innovation Key Differentiating Attributes Specialty rental services market leader providing modular space and portable storage solutions to diverse end markets across North 1 America for over 60 years
Slide 5: Accelerated Strong Organic Growth with Accretive M&A
Accelerated Strong Organic Growth with Accretive M&A Recapitalized Revised Company and Q4'17 Q1'18 Q2'18 FY 2018 Q3'18 closed Business Adj. EBITDA' Adj. EBITDA' Adj. EBITDA' Adj. EBITDA' Adj. EBITDA' of Combination up up up (Nasdaq:WSC) Guidance to $64.6 up with Double Eagle 19% YoY 32.5% YoY 45.5%
Slide 6: Our Increased 2018 Guidance Reflects Accelerating Organic And Inorganic Run-Rate
Our Increased 2018 Guidance Reflects Accelerating Organic And Inorganic Run-Rate US $m ▪ WSC standalone Adj. EBITDA (1) will $352 be at the top end of our original $165-175M range $67 ▪ ModSpace LTM Adj. EBITDA $10 increased from $106M in March to $111M in June $40-45 $210-220 $102 ▪ $40-45 million
Slide 7: Over $125 Million of Additional Embedded Revenue Growth From VAPS
Over $125 Million of Additional Embedded Revenue Growth From VAPS and >$70M Annual Cost Savings From Acquisitions VAPS Revenue Opportunity as Average Rates on Acquired Fleet Converge with Current Delivered Rates VAPS Future Revenue Potential Q1 2018 VAPS Monthly Rate • Incremental revenue (in $ mill
Slide 8: Production Consolidated from >200 Locations to ~120
Production Consolidated from >200 Locations to ~120, Marking A Critical Integration Milestone ▪ Data Migration – Fleet and WS + MS + Acton + Tyson > WillScot Consolidated Commercial Systems moved to 200 Branch Locations 1/1/18 Production Footprint 11/9/18 WSC platform ▪ People – Field Sales & Operat
Slide 9: Core Leasing Fundamentals in the US are Driving Growth
Core Leasing Fundamentals in the US are Driving Growth Modular - US Segment Pro-forma(1) Results 549 AMR / UOR (US$) Modular Space (1) ▪ Pro-forma monthly rental rates up 13.4% year over year 484 th • Driven by expanding Ready to Work (VAPS) 450 row YG penetration and WSC Price Optimization Tools Yo
Slide 10: Market Outlook Remains Positive
Market Outlook Remains Positive ARA Rental Industry Diversified End Market AIA Consensus Construction Forecast2 Revenue Forecast1 Exposure(3) Overall Commercial/ ABI >50 nonresidential Institutional Industrial building Architectural Billing index AGR (ABI) remains above 50 C 7% for 23 of last 24 mon
Slide 11: Financial Review
WILLSCOT Financial Review
Slide 12: Strong Q3 Organic and Inorganic Growth in the Modular Segments
Strong Q3 Organic and Inorganic Growth in the Modular Segments Revenue (1) (US$m) Adj. EBITDA (1) (US$m) wth w th YoY Gr o YoY Gro ▪ Revenue of $218.9 million is up 88.1% 88.1% 100.6% 64.6 218.9 year over year driven by a 88.2% 21.3 6.2 increase in our core leasing and service revenue from both orga
Slide 13: Modular - US Segment Fundamentals Remain Strong
Modular - US Segment Fundamentals Remain Strong As Reported Pro-Forma(2) Modular Space(1) Average Units on Rent (in thousands) Modular Space(1) Average Units on Rent (in thousands) 68.0 84.8 86.0 87.0 86.1 86.9 87.0 86.1 87.2 84.2 84.7 86.1 48.7 49.0 72.4% 73.9% 74.9% 68.2% 69.4% 68.9% 70.6% 70.2% 7
Slide 14: Modular – US Segment Quarterly Performance
Modular – US Segment Quarterly Performance Revenue (1) (US$m) ▪ Modular - US segment revenue increased 274 90.5% to $197.6 million as compared to 241 76 $103.7 million in the prior year quarter 232 233 220 223 219 137 209 198 137 108 ▪ Modular space monthly rental rates 122 119 97 119 111 increased
Slide 15: Modular – Other North America Quarterly Performance
Modular – Other North America Quarterly Performance Revenue (1) (US$m) Modular Space AMR / UOR (1) (US$) 31 30 29 29 16 27 733 26 25 26 16 13 25 13 695 13 14 6 13 12 571 576 573571 587581 562 564 557 555 557 530 534 536 527 541 16 510 21 15 17 13 12 12 13 13 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3
Slide 16: Reconciliation of Non-GAAP Measures – Modular Segments Adjusted EBITDA
Reconciliation of Non-GAAP Measures – Modular Segments Adjusted EBITDA Three Months Ended September Consolidated Adjusted EBITDA (1) Reconciliation 30, 2018 Explanation of Reconciling Adjustments (US$ in thousands) Total Income (loss) from continuing operations (36,729) Income tax benefit (6,507) Lo
Slide 17: Market Conditions Support Reinvestment of Operating Free Cash Flow in Growth
Market Conditions Support Reinvestment of Operating Free Cash Flow in Growth Net Capital Expenditures(1) (US$m) 38 • Gross capex increased to $48 million 18 with planned seasonal increases, the 14 48 addition of Acton and ModSpace, and 26 19 continued VAPS acceleration (5) (8) (10) • Spend is suppor
Slide 18: Implemented Flexible Debt Structure to Finance ModSpace Acquisition And Future Growth
Implemented Flexible Debt Structure to Finance ModSpace Acquisition And Future Growth (1) (1) (in thousands, except rates) Interest rate Year of maturity September 30, 2018 December 31, 2017 2022 Secured Notes 7.875% 2022 $ 291,853 $ 290,687 2023 Secured Notes 6.875% 2023 293,637 — Unsecured Notes 1
Slide 19: Compelling Specialty Rental Growth Platform
Compelling Specialty Rental Growth Platform ü Diverse Product Offering, End-Markets and Customer Base ü ü Proven and Experienced Attractive Returns on Industry Veteran Long-Lived Assets Management Team ü ü Conservative Attractive Organic and Capitalization; Robust Inorganic Growth Cash Generation Po
Slide 20: Appendix
WILLSCOT jp delitelbs
Slide 21: Balanced and Diverse Exposure - Pro-forma including ModSpace
Balanced and Diverse Exposure - Pro-forma including ModSpace1 Specialty Rental Model With Growing Diversified End Market Exposure Contribution From VAPS 2 Q3 2018 Revenue by Customer Industry Q3 2018 Adj. Gross Profit Breakdown 3 Healthcare: 2% Delivery & Installation: 4% Government: 3% New & Used R
Slide 22: Summary P&L, Balance Sheet & Cash Flow Items – Modular Segments
Summary P&L, Balance Sheet & Cash Flow Items – Modular Segments Key Profit & Loss Items Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 (in thousands, except rates) Modular - Other Modular - Other Modular - US North America Modular Segments Modular - US North America Modu
Slide 23: Reconciliation of Non-GAAP Measures – Adjusted EBITDA
Reconciliation of Non-GAAP Measures – Adjusted EBITDA Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 Modular - Modular - Other North Modular Modular - Other North Modular Corporate (in thousands) Modular - US America Segments Total US America Segments & Other Total Loss
Slide 24: Reconciliation of Other Non-GAAP Measures for Modular Segments
Reconciliation of Other Non-GAAP Measures for Modular Segments Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 Modular - Other Modular Modular - Other Modular US$ in thousands Modular - US North America Segments Modular - US North America Segments Gross profit (loss) $ 73
Slide 25: Reconciliation of Non-GAAP Measures – Bank Adjusted EBITDA for the 12 Months Ended September 30, 2018
Reconciliation of Non-GAAP Measures(8) – Bank Adjusted EBITDA for the 12 Months Ended September 30, 2018 2018 WSC as ModSpace Acton (in thousands) Reported Pre-acquisition Pre-acquisition Combined Loss from continuing operations before income tax (168.9) (6.3) (3.9) (179.1) Interest expense, net 99.
Slide 26: Shares and Other Equivalents Outstanding
Shares and Other Equivalents Outstanding Outstanding as of September 30, 2018 Shares by Type Public1 84,151,024 Founders Shares (unregistered)2 6,734,375 TDR Shares (unregistered)3 2,659,375 ModSpace Shares (unregistered)2 6,458,229 Holthaus Shares (unregistered) 300,000 Total Class A Shares 100,303