WillScot Holdings Corporation · NASDAQ:WSC
WillScot — FY2017 Earnings Presentation
26 slides from WillScot's earnings presentation, 2018
Slide 1: Quarterly Investor Presentation
Quarterly Investor Presentation Fourth Quarter and Full Year 2017
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 U.S. Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended. The word
Slide 3: Compelling Growth Platform And Leader In Modular Solutions
Compelling Growth Platform And Leader In Modular Solutions Established Brand with Strong Legacy of Innovation Key Williams Scotsman Differentiating Attributes Specialty rental services market leader providing modular space and 1 portable storage solutions to diverse end markets across North Customer
Slide 4: Transformational Quarter And Return To Public Markets
Transformational Quarter And Return To Public Markets In Q4 we executed strategic transactions on top of accelerating organic growth Modular segments delivered $36 million of Adjusted EBITDA(1) in Q4, a 19% YOY increase with growth in all geographies, and $124 million of Adjusted EBITDA(1) for ful
Slide 5: Modular Segment Results Accelerated In Q4
Modular Segment Results Accelerated In Q4 Revenue (1) (US$m) Adj. EBITDA (1) (US$m) 36 120 30 4 103 17 13 3 Q4 revenue increased 17% YoY with US up 14% and Other NA up 32% 103 32 Q4 Adj. EBITDA increased 19% YoY, 90 27 driven by 17% growth in the US segment Q4 US Modular Space Average Units on
Slide 6: Underlying Leasing Fundamentals Are Accelerating
Underlying Leasing Fundamentals Are Accelerating Modular Space – US Modular Space – Other North America(2) Average Average # Units # Units Q1 15 Q1 16 Q1 17 Q2 15 Q2 16 Q2 17 Q3 15 Q3 16 Q3 17 Q4 15 Q4 16 Q4 17 on Rent/ on Rent/ 48,277 11,000 80% Utilization % Utilization % 69.5% 67.8% 66.4% 70% 74.
Slide 7: Acton Acquisition Is Highly Complementary
Acton Acquisition Is Highly Complementary Newly Expanded Footprint Key Williams Scotsman Differentiating Attributes Regional modular space and portable storage specialty rental 1 company providing solutions across much of the United States as a “Ready to Work” Acton does not fully leverage VAPs, res
Slide 8: Revenue & Adjusted EBITDA From Modular Segments Is Accelerating into 2018
Revenue & Adjusted EBITDA From Modular Segments Is Accelerating into 2018 14% Organic Adj. EBITDA Growth CAGR Since 2015 in Modular - US Segment offsetting declines in Modular – Other North America and driving consolidated growth into 2018 Revenue (1) (US$m) Adj. EBITDA (1) (US$m) US is contributi
Slide 9: 2018 Guidance Reflects Compounding Benefit of Strong Organic Growth and M&A
2018 Guidance Reflects Compounding Benefit of Strong Organic Growth and M&A US$m ~33-41% Adj. EBITDA(1) growth on revenue growth of ~30% anticipated for 2018 165-175 $16M of Adj. EBITDA growth is (3) organic and in line with prior 34 guidance 0.5 139 $34M contribution in-year from 124 23 (8) 1
Slide 10: Financial Review
WILLIAMS SCOTSMAN Financial Review
Slide 11: Explanation of Financial Statement Presentation
Explanation of Financial Statement Presentation Year Ended December 31, 2017 WSII combined with Double Eagle on 11/29/17 Modular - Other Corporate Segment Results (US$m) Modular - US Total North America & Other Double Eagle subsequently changed its name to WillScot Corporation Revenues Busines
Slide 12: Explanation of Financial Statement Presentation (cont.)
Explanation of Financial Statement Presentation (cont.) US$m Consolidated Adjusted EBITDA(1) 2017 4Q 2017 Explanation of Reconciling Adjustments Reconciliation Loss from continuing operations before (165.4) (112.1) income taxes Interest expense, net 107.1 32.2 Interest expense incurred primarily und
Slide 13: Modular – US Quarterly Performance
Modular – US(2) Quarterly Performance Revenue (1) (US$m) Average Monthly Rate (AMR) 104 104 560 98 Pro Forma 94 95 incl. Acton 90 87 542 full Quarter 86 535 527 513 508 502 497 490 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q4 17 Adj. EBITDA (1) (
Slide 14: Modular – Other North America Quarterly Performance
Modular – Other North America(2) Quarterly Performance Revenue (1) (US$m) Average Monthly Rate (AMR) 740 734 733 17 17 17 15 530 534 536 527 510 13 13 12 12 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Adj. EBITDA (1) (US$m) Modular Space Average UO
Slide 15: Strong Cash Generation in the Modular Segments While Reinvesting in Growth
Strong Cash Generation in the Modular Segments While Reinvesting in Growth Net Capital Expenditures (1) (US$m) 104 80 2017 capital investments drove organic growth of 1.9% to Q4 average modular space UOR YOY in 39 the Modular – US 119 106 66 Approximately $8M of capex in Q3 and Q4 to replace fle
Slide 16: Business Model Benefits From Attractive Tax Attributes
Business Model Benefits From Attractive Tax Attributes U.S. Tax Cuts and Jobs Act Enacted on December 22, 2017 Reduces the federal income tax rate from 35% to 21% effective January 1, 2018 Mandatory deemed repatriation (“transition tax”) of foreign earnings Limitation on business interest
Slide 17: New ABL Facility and Senior Secured Notes
New ABL Facility and Senior Secured Notes US$m WillScot Corporation Debt Structure Available Interest Year of Net Carrying Value Borrowing Rate maturity at 12/31/2017(1) Capacity(2) Senior secured notes, net of discount 7.875% 2022 $ 290.7 $ 0.0 US ABL Facility LIBOR+2.50% 2022 297.3 211.1 Canadian
Slide 18: Analysis of Shares Outstanding
Analysis of Shares Outstanding Total Potential Class A Common Stock Other Shares and Equivalents Outstanding Outstanding Class A Shares (Fully Dilluted) Outstanding as of Securities Outstanding as Exercise of November 29, 2017 Release Escrowed Exchangeable of January 19, Outstanding & December 31, F
Slide 19: Compelling Specialty Rental Growth Platform
Compelling Specialty Rental Growth Platform Diverse Product Offering, End-Markets and Customer Base Proven and Experienced Attractive Returns on Industry Veteran Long-Lived Assets Management Team Conservative Attractive Organic and Capitalization; Robust Inorganic Growth Cash Generation Po
Slide 20: Appendix
WILLIAMS SCOTSMAN Appendix
Slide 21: Summary P&L, Balance Sheet & Cash Flow Items – Modular Segments
Summary P&L, Balance Sheet & Cash Flow Items – Modular Segments Key Profit & Loss Items (US$m) (1) 2015 2016 2017 4Q 2016 4Q 2017 Leasing and Services Modular Leasing 302 285 299 69 81 Modular Delivery and Installation 83 82 90 18 23 Sales New Units 54 39 36 10 11 Rental Units 15 22 22 6 5 Total Rev
Slide 22: Summary P&L & Cash Flow Items: Modular – US
Summary P&L & Cash Flow Items: Modular – US Key Profit & Loss Items (US$m) (1) 2015 2016 2017 4Q 2016 4Q 2017 Leasing and Services Modular Leasing 226 239 265 61 72 Modular Delivery and Installation 72 74 81 16 20 Sales New Units 43 35 29 8 7 Rental Units 12 18 18 5 4 Total Revenues 353 366 393 90 1
Slide 23: Summary P&L & Cash Flow Items: Modular – Other North America
Summary P&L & Cash Flow Items: Modular – Other North America Key Profit & Loss Items (US$m) (1) 2015 2016 2017 4Q 2016 4Q 2017 Leasing and Services Modular Leasing 76 46 34 8 9 Modular Delivery and Installation 11 8 9 2 3 Sales New Units 11 4 7 2 4 Rental Units 3 4 4 1 1 Total Revenues 101 62 54 13
Slide 24: Reconciliation of Adjusted EBITDA by Segment
Reconciliation of Adjusted EBITDA by Segment Three Months Ended Year Ended December 31, December 31, Adjusted EBITDA by Segment (US$m) 2017 2016 2017 2016 Modular - US 110.8 103.8 31.6 27.0 Modular - Other North America 13.1 24.4 4.5 3.3 Modular Segments 123.9 128.2 36.1 30.3 Corporate & Other (15.1
Slide 25: Reconciliation of Non-GAAP Measures – Adjusted EBITDA
Reconciliation of Non-GAAP Measures – Adjusted EBITDA 2015A 2016A 2017A Modular - Modular - Modular - Modular - Other Modular Corp & Modular - Other Modular Corp & Modular - Other Modular Corp & Consolidated Consolidated Consolidated US North Segments other US North Segments other US North Segments
Slide 26: Reconciliation of Non-GAAP Measures for Modular Segments
Reconciliation of Non-GAAP Measures for Modular Segments 2015A 2016A 2017A 4Q 2016A 4Q 2017A Modular - Modular - Modular - Modular - Modular - Modular - Other Modular Modular - Other Modular Modular - Other Modular Modular - Other Modular Modular - Other Modular US North Segments US North Segments U