General Finance — IPO Roadshow (October 2020)
23 slides from General Finance's IPO roadshow presentation, Oct 20, 2020
Slide 1: Safe Harbor Statement
Safe Harbor Statement 2 Statements in this presentation that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements involv
Slide 2: Offering Summary
Offering Summary 3 Issuer General Finance Corporation (NasdaqGM: “GFN”) Offering Format SEC Registered Securities Offered Senior Unsecured Notes Offering Size $40.0 million, with 15% overallotment option Denominations $25.00 and integral multiples of $25.00 in excess thereof Maturity 2025 Estimated
Slide 3: General Finance at a Glance
General Finance at a Glance Leading provider of specialty rental solutions in the portable (or mobile) storage, liquid containment and modular space industries (portable services) Broad and expanding geographic presence with 105 primary branch locations across North America and Asia-Pacific with 100
Slide 4: Our Specialty Rental Services Fleet Categories
Our Specialty Rental Services Fleet Categories 5 Storage Containers Freight Containers Mobile Offices Modular Buildings Liquid Containment Tanks Office Containers Portable Storage Fleet Units Modular Space Fleet Units Liquid Containment Fleet Units Fleet Units (6/30/20): 68,751 Fleet Units (6/30/20)
Slide 5: Investment Highlights
Investment Highlights 6 Human Capital Expansion Platform Financial Performance Attractive Asset Class Senior management drives disciplined growth strategies, operational guidance and capital markets support Most experienced and industry leading acquisitions team Top five market leader in North Ameri
Slide 6: Experienced Senior and Field Level Management Team
Experienced Senior and Field Level Management Team 7 Name Title Prior Experience Jody Miller President, CEO EVP and COO, Mobile Mini SVP, Mobile Services Group - SVP, RSC Equipment Rental Charles Barrantes EVP, CFO - VP and CFO, Royce Medical Company - CFO, Earl Scheib, Inc. - Arthur Andersen & Co.
Slide 7: Leadership Position in North America with Extensive Branch Network
Leadership Position in North America with Extensive Branch Network 8 Top 4 recognized provider on national, regional and local level 63 primary branches in the United States - presence in 52 of top 100 MSAs 3 primary branches in Western Canada FY 2020 Net Promoter Score (“NPS”) of 85 for Pac-Van Tot
Slide 8: #1 Market Share Leader in Asia-Pacific
#1 Market Share Leader in Asia-Pacific 9 Leadership position with 35% market share(1) in Australia and 50% market share(1) in New Zealand Only container leasing and sales company with a nationally integrated infrastructure/workforce Largest branch network of any storage container company in Australi
Slide 9: Diversified Customer Base
Diversified Customer Base 10 Approximately 50,000 customers in over 20 industries Largest customer in each geographic venue accounted for less than 6% of venue’s respective FY2020 revenue Note: TTM (3/31/19) revenue breakdown for North America, Asia-Pacific and Combined Leasing Operations. Combined
Slide 10: Compelling Unit Economics
Compelling Unit Economics 11 Best Rental Asset Typical Cost: $2,500 - $3,000 Typical Utilization Rate: 80% Minimal Maintenance Expense Typical Rent: ~$100/Month Long Economic Life High Incremental EBITDA Margin Attractive Tax Attributes Avg. Rental Duration over 15 months
Slide 11: Historical Financial Summary
($ in millions) Historical Financial Summary 12 Revenue Free Cash Flow Before Net Fleet Activity and Acquisitions(1) Adjusted EBITDA(1) ($ in millions) ($ in millions) Leasing Revenue ($ in millions) Cumulative Free Cash Flow $354 million Adjusted EBITDA and Free Cash Flow are Non-GAAP financial mea
Slide 12: Disciplined Balance Sheet Management and Capital Allocation
Disciplined Balance Sheet Management and Capital Allocation 13 13 Leverage(2) and Net Debt Net Fleet Capital Expenditures, Acquisitions and Fleet Count Proven track record of organic and acquisition growth Fleet capital investment is discretionary and has been a significant component of our total in
Slide 13: Capital Structure as of 6/30/20
Capital Structure as of 6/30/20 14 Corporate Asia-Pacific Leasing Operations North America Leasing and Manufacturing Operations Consolidated cash $17.5 million Debt $76.8 million 8.125% Senior Notes1 $124.0 million outstanding on $149.2 million (A$217.0 million) Senior Credit Facility2,3 $171.0 mill
Slide 14: Capital Structure as of 6/30/20
14 Capital Structure as of 6/30/20 Asia-Pacific Lea North America Leasing Corporate a and Manufacturing Operations 3 Operations Consolidated cash + $17.5 million Debt + $76.8 million 8.125% Senior + $124.0 million + $171.0 million outstanding on Notes outstanding on $149.2, $285.0 million Senior Cre
Slide 15: General Finance Organizational Structure
General Finance Organizational Structure (1) (2) Summary organization chart is illustrative and does not reflect the legal operating structure of General Finance. Reflects consolidated revenues for FY 2020. A-1 Pac-Van, Inc. Lone Star Tank Rental Inc. Southern Frac, LLC General Finance Corporation L
Slide 16: Reconciliation of non-GAAP Measures
Reconciliation of non-GAAP Measures A-2 Adjusted EBITDA is a non-U.S. GAAP measure. We calculate adjusted EBITDA to eliminate the impact of certain items we do not consider to be indicative of the performance of our ongoing operations. In addition, in evaluating adjusted EBITDA, you should be aware
Slide 17: Reconciliation of Consolidated Adjusted EBITDA
Reconciliation of Consolidated Adjusted EBITDA A-3 * FY 2014 includes approximately $7.0 million of adjusted EBITDA from Lone Star Tank Rental Inc., which was acquired on April 7, 2014. (in thousands) Year Ended June 30, 2011 2012 2013 2014* 2015 2016 2017 2018 2019 2020 Net income (loss) ($8,858) $
Slide 18: Reconciliation of Operating Unit Adjusted EBITDA – Pac-Van
Reconciliation of Operating Unit Adjusted EBITDA – Pac-Van A-4 (in thousands) Year Ended June 30, 2013 2014 2015 2016 2017 2018 2019 2020 Operating income $8,403 $13,323 $18,425 $17,984 $19,551 $28,689 $39,497 $45,430 Add -- Depreciation and amortization 6,154 7,928 11,306 13,154 13,663 14,233 15,52
Slide 19: Reconciliation of Operating Unit Adjusted EBITDA – Lone Star Tank Rental
(in thousands) Year Ended Year Ended June 30, December 31, 2013 2014 2015 2016 2017 2018 2019 2020 Operating income (loss) $15,033 $16,372 $8,233 ($1,541) ($3,916) $8,798 $14,236 ($11,284) Add -- Depreciation and amortization 5,356 8,013 11,345 10,529 9,666 9,161 8,936 6,373 Share-based compensation
Slide 20: Reconciliation of Operating Unit Adjusted EBITDA – Royal Wolf
Reconciliation of Operating Unit Adjusted EBITDA – Royal Wolf A-6 (in thousands) Year Ended June 30, Year Ended June 30, 2013 2014 2015 2016 2017 2018 2019 2020 2020 Operating income A$26,397 A$29,977 A$25,672 A$17,637 A$14,340 A$17,207 A$18,998 A$25,586 US$17,209 Add (Deduct) -- Depreciation and Am
Slide 21: Reconciliation of Consolidated Free Cash Flow
Reconciliation of Consolidated Free Cash Flow FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Cash From Operations $18.5 $15.2 $34.9 $51.5 $38.2 $48.8 $35.3 $58.8 $52.1 $76.6 Add-back Changes in Fleet Inventory (1.6) 10.4 (4.8) (12.4) 3.2 (3.0) (4.0) (3.6) 5.3 (7.2) Adjusted Cash From Operations $
Slide 22: Reconciliation of Consolidated Free Cash Flow
AT Reconciliation of Consolidated Free Cash Flow (sinmilions) Cash From Operations ‘Add-back Changes in Fleet Inventory ‘Adjusted Cash From Operations Cash From (Used In) Investing ‘Add-back Business and Real Estate Transactions ‘Add-back Net Fleet Purchases ‘Adjusted Cash Used In Investing Free Cas
Slide 23: aL ETL
I aL ETL NASDAQ: GFN