Willscot Holdings Corporation · NASDAQ:WSC
Willscot — Investor Presentation (May 2019)
19 slides from Willscot's investor presentation, May 2019
Slide 1: Investor Presentation May 2019
Investor Presentation May 2019
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: Investment Highlights
Investment Highlights ❑ The world’s leading provider of portable storage solutions ❑ A leader in the Tank + Pump business with improved outlook and performance Our Investment Strengths: ❑ Compelling asset economics with a steel-centric fleet generating recurring revenue ❑ Premium product and service
Slide 4: Product Timeline
Product Timeline Divestiture of Wood Mobile 52 acquisitions Offices 1983-2012 May 2015 December 2014 2015-2018 Acquisition of Evergreen Tank Steel-Centric Rental Fleet Solutions Ground Level Office Expansion 4
Slide 5: Steel-Centric Fleet Yields Strong Returns
Steel-Centric Fleet Yields Strong Returns Fleet composition in units Fleet Characteristics Ground level offices & other ✓ Long-lived assets storage Steel storage 14% ✓ No model year containers ✓ Minimal maintenance capex requirements 80% Tank and pump ✓ Rapid payback period solutions 6% Excludes pum
Slide 6: Differentiation through National Footprint
Differentiation through National Footprint US, Canada and UK ❑ Diversified by geography, customer and product type – Footprint covers major metropolitan areas in the U.S., Canada and the U.K. – Largest provider of storage solutions in the U.S. and U.K. – Largest provider of tank and pump solutions i
Slide 7: Premium Product and Services Lead to Customer Loyalty and Rate Increases
Premium Product and Services Lead to Customer Loyalty and Rate Increases ❑ Provide industry-leading products and service for premium pricing – High quality: premium doors, patented locking system – Service: communication, response time, problem resolution – Availability: rent-ready fleet, 24/7 respo
Slide 8: Focused Growth Strategy Leads to Diversified End Markets
Focused Growth Strategy Leads to Diversified End Markets ❑ Drive growth in our two core business lines – Extensive market coverage Attractive End Markets(1) – Sophisticated sales technology and strategies to penetrate existing markets Retail/ Other, 7% Consumer – Cross-sell portable storage and spec
Slide 9: Expand National Accounts Given Our National Footprint
Expand National Accounts Given Our National Footprint ❑ Further develop national accounts – National accounts contributed approximately 36% of MMI’s 2018 North America Storage Solutions rental revenue, up from 27% in 2016 – Our footprint provides strategic advantages over local and regional players
Slide 10: Disciplined Capital Allocation
Disciplined Capital Allocation STABILITY PROFITABILITY GROWTH • Knowing the business • Setting and reaching profit • Allocate capital to organic and return requirements in growth, new locations and • Processes, procedures and the Evergreen model M&A standards in place • Cost and Capital efficiency •
Slide 11: Long-Term Track Record of Profitable Growth
Long-Term Track Record of Profitable Growth ($ in millions, except per share amounts) Total Revenue Adjusted EBITDA $217 $225 $593 $602 $201 $190 $531 $534 $185 $509 $162 $445 $499 $558 $568 $495 $480 38.1% 37.4% 36.6% 37.3% $410 36.4% 34.6% 2014 2015 2016 2017 2018 LTM Q1 2014 2015 2016 2017 2018 L
Slide 12: Appendix
Appendix 12
Slide 13: Non-GAAP Financial Information
Non-GAAP Financial Information In addition to disclosing financial results that are determined in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company also discloses in this press release and accompanying presentation certain non-GAAP financial information. These finan
Slide 14: Evergreen Financial Targets
Evergreen Financial Targets Performance Metric Long-term Targets ❑ Rental Revenue Growth ➢ GDP plus 2 to 3% ❑ Adj. EBITDA Growth ➢ > 60% Flow-Through ❑ Adj. EBITDA Margin ➢ > 40% ❑ ROCE ➢ > WACC ❑ Dividends ➢ Grow at 10% per annum ❑ Net Debt/Adjusted EBITDA ➢ < 4.0x Targets reflect our goals over a
Slide 15: Full Year 2019 Outlook
Full Year 2019 Outlook ❑ Rental Revenue expected to exceed Evergreen Target ➢ Robust pipeline in Storage Solutions, with pending orders up at March 31, 2019 compared to March 2018 ➢ Demand in Tank + Pump Solutions remains strong ❑ Flow-through anticipated to exceed 60%, leading to improved adjusted
Slide 16: Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Appendix Reconciliation of Net Income to EBITDA and Adjusted EBITDA ($ in millions and includes effects of rounding) LTM 2014 2015 2016 2017 2018 Q1 2019 Net income $ 44.4 $ 5.6 $ 47.2 $ 122.2 $ (8.1) $ (4.8) Loss from discontinued operation, net of tax - - - - - Interest expense 28.7 35.9 32.7 35.7
Slide 17: Reconciliation of Net Cash from Operating Activities to EBITDA
Appendix Reconciliation of Net Cash Provided by Operating Activities to EBITDA ($ in millions and includes effects of rounding) LTM 2014 2015 2016 2017 2018 Q1 2019 Net cash provided by operating activities $ 120.6 $ 152.8 $ 136.2 $ 135.6 $ 160.1 $ 164.0 Discontinued operation - - - - - - Interest p
Slide 18: Reconciliation of Operating Cash Flow to Free Cash Flow
Appendix Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow ($ in millions and includes effects of rounding) LTM 2014 2015 2016 2017 2018 Q1 2019 Net cash provided by operating activities $ 120.6 $ 152.8 $ 136.2 $ 135.6 $ 160.1 $ 164.0 Additions to rental fleet, excluding
Slide 19: Reconciliation of Net Income to Adjusted Net Income
Appendix Reconciliation of Net Income to Adjusted Net Income ($ in millions and includes effects of rounding) 2014 2015 2016 2017 2018 Net Income $ 44,386 $ 5,574 $ 47,248 $ 122,228 $ (8,062) Adjustments Other Revenue 4,173 219 Rental, Selling and general expenses (5,070) (7,879) (807) (2,623) Restr