Williams Scotsman Announces Second Quarter 2018 Results and Provides Update on Pending ModSpace Acquisition
Second Quarter 2018 Financial Highlights1,2
- Revenues of
$140.3 million , representing a 27.4% (or$30.2 million ) year over year increase, driven by growth in core leasing and services revenues of$36.7 million , or 38.2%, as a result of organic rate and volume growth, further accelerated by our Acton Mobile ("Acton") and Tyson Onsite ("Tyson") acquisitions.- Consolidated modular space average monthly rental rate of
$551 or a 3.2% year over year increase. Pro-forma, including results ofWilliams Scotsman ,Acton , and Tyson for all periods presented, monthly rental rates increased 9.8% year over year. - Consolidated modular space units on rent increased 13,841 or a 34.0% year over year increase, including both organic growth and growth from recent acquisitions, and average modular space utilization increased 50 basis points (“bps”) year over year to 70.3%. Pro-forma, including results of
Williams Scotsman ,Acton and Tyson for all periods presented, average modular space units on rent and utilization increased 2.6% and 240 bps year over year, respectively. - The increases in leasing and services revenue were partially offset by decreases of
$6.5 million , or 46.1%, in new unit and rental unit sales as compared to the same period in 2017.
- Consolidated modular space average monthly rental rate of
- Consolidated net income of
$0.4 million , which includes$5.2 million of discrete integration and restructuring costs related to theActon integration, and$4.1 million of transaction costs associated with the pending ModSpace acquisition. - Adjusted EBITDA of
$41.9 million from our Modular - US and Modular - OtherNorth America segments (the “Modular Segments”), representing a 45.5% (or$13.1 million ) year over year increase as compared to the same period in 2017 and an 18.0% increase from the first quarter of 2018.
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
Adjusted EBITDA by Segment (in thousands) | 2018 | 2017 | 2018 | 2017 | |||||||||||||
Modular - US | $ | 38,104 | $ | 26,329 | $ | 70,716 | $ | 50,012 | |||||||||
Modular - Other North America | 3,812 | 2,506 | 6,692 | 5,625 | |||||||||||||
Modular Segments Adjusted EBITDA | 41,916 | 28,835 | 77,408 | 55,637 | |||||||||||||
Corporate and Other | — | (2,588 | ) | — | (7,444 | ) | |||||||||||
Consolidated Adjusted EBITDA | $ | 41,916 | $ | 26,247 | $ | 77,408 | $ | 48,193 | |||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
(in thousands) | 2018 | 2017 | 2018 | 2017 | |||||||||||||
Consolidated net income (loss) | $ | 379 | $ | (5,896 | ) | $ | (6,456 | ) | $ | (16,075 | ) |
1 -
2 - Adjusted EBITDA is a non-GAAP financial measure. A reconciliation of Adjusted EBITDA, as well as segment-level results to net loss, have been provided in the financial statement tables included in this press release. An explanation of these non-GAAP financial measures is included below under the heading “Non-GAAP Financial Measures.” Please see the non-GAAP reconciliation tables included at the end of this press release.
Acquisition Updates
- Executed on
Acton integration plan, with full information technology system cut-over achieved, production consolidated in 90% of overlapping markets, and redundant branch location exit activities completed on schedule. - Announced acquisition of ModSpace, the largest privately held provider of office trailers, portable storage units and modular buildings in the US and
Canada , with over 80 operating locations for an enterprise value of$1.1 billion , at the time of announcement. - Obtained the financing required to fund the pending ModSpace acquisition.
- Secured a debt commitment to fund the acquisition prior to its announcement.
- Upsized our revolving credit agreement to
$1.35 billion (expandable to$1.8 billion through an accordion feature) and obtained the amendments required to finance the acquisition and to give effect to our greater scale thereafter. - Raised
$128.0 million of gross proceeds from an underwritten common stock offering, subject to the underwriters' right to purchase an additional 1.2 million shares (which could raise an additional$19.2 million of gross proceeds). - Completed
$200.0 million private placement of senior unsecured notes due 2023. - Completed
$300.0 million private placement of 6.875% senior secured notes due 2023.
- Received a No Action Letter from the
Canadian Competition Bureau , the receipt of which was a closing condition for the ModSpace acquisition. - Accelerated target closing date of pending ModSpace acquisition to mid-August.
Management Commentary
While delivering these outstanding results in the quarter, we also successfully migrated the
Second Quarter 2018 Results
Total consolidated revenues increased 27.4% to
- Modular - US segment revenue increased 27.1% to
$124.8 million , as compared to$98.2 million in the prior year quarter with core leasing and services revenues up$32.6 million , or 38.0% year over year.- Modular space average monthly rental rate of
$549 , or a 2.6% year over year increase. Pro-forma, including results ofWilliams Scotsman ,Acton , and Tyson for all periods presented, monthly rental rates increased 9.8% year over year. - Average modular space units on rent increased 13,217, or a 36.9% year over year increase, including both organic growth and growth from recent acquisitions. Pro-forma, including results of
Williams Scotsman ,Acton and Tyson for all periods presented, units on rent increased 1.6% year over year. - Average modular space utilization decreased 160 basis points (“bps”) year over year to 72.2% as a result of businesses acquired at lower utilization rates, however utilization increased 40 bps from Q1 2018. Pro-forma, including results of
Williams Scotsman ,Acton and Tyson for all periods presented, utilization increased 170 bps year over year. - The increases in leasing and services revenue were partially offset by decreases of
$6.0 million , or 48.4%, in new unit and rental unit sales.
- Modular space average monthly rental rate of
- Modular - Other
North America segment revenue increased 29.2% to$15.5 million , compared to$12.0 million in the prior year quarter, with modular space average units on rent up 12.7% and average monthly rental rate up 7.3% compared to the prior year quarter.
The Modular Segments delivered Adjusted EBITDA of
Capitalization and Liquidity Update
Capital expenditures for rental equipment from continuing operations increased
During the six months ended
Since
- We amended our revolving credit agreement to, among other things, (i) permit the ModSpace acquisition and our financing thereof, (ii) increase the credit facility limit to
$1.35 billion , and increase its accordion feature to$450.0 million , and (iii) increase certain thresholds, basket sizes and default and notice triggers to account for our increased scale business following the ModSpace acquisition. The amendments will be effective upon closing of the ModSpace acquisition. - We issued 8.0 million shares of our Class A common stock at a public offering price of
$16.00 per share, yielding gross proceeds of$128.0 million . The underwriters have the right to purchase an additional 1.2 million shares byAugust 24 , which would yield an additional$19.2 million of gross proceeds. - We sold
$200.0 million in aggregate principal amount of senior unsecured notes due 2023. - We sold
$300.0 million in aggregate principal amount of 6.875% senior secured notes due 2023.
2018 Outlook
Management reaffirmed the Company's outlook for full year 2018, inclusive of the
Non-GAAP Financial Measures
This press release includes non-GAAP financial measures, including Adjusted EBITDA.
Conference Call Information
About
Headquartered in
Forward-Looking Statements
This news release contains forward-looking statements (including affirmation of earnings guidance) 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 words “estimates,” “expects,” “anticipates,” “believes,” “forecasts,” “plans,” “intends,” “may,” “will,” “should,” “shall” and variations of these words and similar expressions identify forward-looking statements, which are generally not historical in nature. Forward-looking statements are subject to a number of risks, uncertainties, assumptions and other important factors, many of which are outside our control, which could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Although
Additional Information and Where to Find It
Additional information about the transaction can be found on the
Consolidated Statements of Operations (Unaudited)
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(in thousands, except share data) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Revenues: | |||||||||||||||
Leasing and services revenue: | |||||||||||||||
Modular leasing | $ | 101,249 | $ | 72,954 | $ | 198,511 | $ | 141,941 | |||||||
Modular delivery and installation | 31,413 | 22,949 | 57,663 | 41,953 | |||||||||||
Sales: | |||||||||||||||
New units | 5,236 | 9,396 | 12,664 | 14,882 | |||||||||||
Rental units | 2,435 | 4,778 | 6,246 | 10,622 | |||||||||||
Total revenues | 140,333 | 110,077 | 275,084 | 209,398 | |||||||||||
Costs: | |||||||||||||||
Costs of leasing and services: | |||||||||||||||
Modular leasing | 27,129 | 21,340 | 54,291 | 40,442 | |||||||||||
Modular delivery and installation | 30,127 | 22,339 | 55,648 | 40,472 | |||||||||||
Costs of sales: | |||||||||||||||
New units | 3,704 | 6,766 | 8,691 | 10,486 | |||||||||||
Rental units | 1,263 | 2,575 | 3,578 | 6,283 | |||||||||||
Depreciation of rental equipment | 23,470 | 17,474 | 47,315 | 34,194 | |||||||||||
Gross profit | 54,640 | 39,583 | 105,561 | 77,521 | |||||||||||
Expenses: | |||||||||||||||
Selling, general and administrative | 47,734 | 31,652 | 92,948 | 64,413 | |||||||||||
Other depreciation and amortization | 1,570 | 1,890 | 4,006 | 3,831 | |||||||||||
Restructuring costs | 449 | 684 | 1,077 | 968 | |||||||||||
Currency losses (gains), net | 572 | (6,497 | ) | 1,596 | (8,499 | ) | |||||||||
Other (income) expense, net | (1,574 | ) | 461 | (4,419 | ) | 591 | |||||||||
Operating income | 5,889 | 11,393 | 10,353 | 16,217 | |||||||||||
Interest expense | 12,155 | 29,907 | 23,874 | 54,568 | |||||||||||
Interest income | — | (3,509 | ) | — | (6,093 | ) | |||||||||
Loss from continuing operations before income tax | (6,266 | ) | (15,005 | ) | (13,521 | ) | (32,258 | ) | |||||||
Income tax benefit | (6,645 | ) | (5,269 | ) | (7,065 | ) | (10,138 | ) | |||||||
Income (loss) from continuing operations | 379 | (9,736 | ) | (6,456 | ) | (22,120 | ) | ||||||||
Income from discontinued operations, net of tax | — | 3,840 | — | 6,045 | |||||||||||
Net income (loss) | 379 | (5,896 | ) | (6,456 | ) | (16,075 | ) | ||||||||
Net income (loss) attributable to non-controlling interest, net of tax | 143 | — | (505 | ) | — | ||||||||||
Total income (loss) attributable to WSC | $ | 236 | $ | (5,896 | ) | $ | (5,951 | ) | $ | (16,075 | ) | ||||
Net income (loss) per share attributable to WSC – basic | |||||||||||||||
Continuing operations - basic | $ | 0.00 | $ | (0.67 | ) | $ | (0.08 | ) | $ | (1.53 | ) | ||||
Discontinued operations - basic | $ | 0.00 | $ | 0.26 | $ | 0.00 | $ | 0.42 | |||||||
Net (loss) income per share - basic | $ | 0.00 | $ | (0.41 | ) | $ | (0.08 | ) | $ | (1.11 | ) | ||||
Net (loss) income per share attributable to WSC – diluted | |||||||||||||||
Continuing operations - diluted | $ | 0.00 | $ | (0.67 | ) | $ | (0.08 | ) | $ | (1.53 | ) | ||||
Discontinued operations - diluted | $ | 0.00 | $ | 0.26 | $ | 0.00 | $ | 0.42 | |||||||
Net (loss) income per share - diluted | $ | 0.00 | $ | (0.41 | ) | $ | (0.08 | ) | $ | (1.11 | ) | ||||
Weighted average shares: | |||||||||||||||
Basic | 78,432,274 | 14,545,833 | 77,814,456 | 14,545,833 | |||||||||||
Diluted | 82,180,086 | 14,545,833 | 77,814,456 | 14,545,833 | |||||||||||
Cash dividends declared per share | $ | — | $ | — | $ | — | $ | — |
Unaudited Segment Operating Data
Three Months Ended
Three Months Ended June 30, 2018 | |||||||||||||||
(in thousands, except for units on rent and rates) | Modular - US | Modular - Other North America | Corporate & Other | Total | |||||||||||
Revenue | $ | 124,813 | $ | 15,520 | $ | — | $ | 140,333 | |||||||
Gross profit | $ | 49,741 | $ | 4,899 | $ | — | $ | 54,640 | |||||||
Adjusted EBITDA | $ | 38,104 | $ | 3,812 | $ | — | $ | 41,916 | |||||||
Capital expenditures for rental equipment | $ | 30,931 | $ | 1,748 | $ | — | $ | 32,679 | |||||||
Modular space units on rent (average during the period) | 48,997 | 5,524 | — | 54,521 | |||||||||||
Average modular space utilization rate | 72.2 | % | 57.1 | % | — | % | 70.3 | % | |||||||
Average modular space monthly rental rate | $ | 549 | $ | 573 | $ | — | $ | 551 | |||||||
Portable storage units on rent (average during the period) | 13,127 | 369 | — | 13,496 | |||||||||||
Average portable storage utilization rate | 68.5 | % | 57.4 | % | — | % | 68.1 | % | |||||||
Average portable storage monthly rental rate | $ | 120 | $ | 116 | $ | — | $ | 119 | |||||||
Three Months Ended June 30, 2017 | |||||||||||||||
(in thousands, except for units on rent and rates) | Modular - US | Modular - Other North America | Corporate & Other | Total | |||||||||||
Revenue | $ | 98,209 | $ | 12,010 | $ | (142 | ) | $ | 110,077 | ||||||
Gross profit | $ | 35,954 | $ | 3,769 | $ | (140 | ) | $ | 39,583 | ||||||
Adjusted EBITDA | $ | 26,329 | $ | 2,506 | $ | (2,588 | ) | $ | 26,247 | ||||||
Capital expenditures for rental equipment | $ | 25,909 | $ | 1,716 | $ | — | $ | 27,625 | |||||||
Modular space units on rent (average during the period) | 35,780 | 4,900 | — | 40,680 | |||||||||||
Average modular space utilization rate | 73.8 | % | 50.0 | % | — | % | 69.8 | % | |||||||
Average modular space monthly rental rate | $ | 535 | $ | 534 | $ | — | $ | 534 | |||||||
Portable storage units on rent (average during the period) | 11,988 | 351 | — | 12,339 | |||||||||||
Average portable storage utilization rate | 70.7 | % | 51.8 | % | — | % | 70.0 | % | |||||||
Average portable storage monthly rental rate | $ | 114 | $ | 118 | $ | — | $ | 114 |
Six Months Ended
Six Months Ended June 30, 2018 | |||||||||||
(in thousands, except for units on rent and rates) | Modular - US | Modular - Other North America | Total | ||||||||
Revenue | $ | 246,900 | $ | 28,184 | $ | 275,084 | |||||
Gross profit | $ | 96,549 | $ | 9,012 | $ | 105,561 | |||||
Adjusted EBITDA | $ | 70,716 | $ | 6,692 | $ | 77,408 | |||||
Capital expenditures for rental equipment | $ | 61,455 | $ | 3,308 | $ | 64,763 | |||||
Modular space units on rent (average during the period) | 48,841 | 5,487 | 54,328 | ||||||||
Average modular space utilization rate | 72.2 | % | 57.0 | % | 70.3 | % | |||||
Average modular space monthly rental rate | $ | 541 | $ | 557 | $ | 543 | |||||
Portable storage units on rent (average during the period) | 13,434 | 364 | 13,798 | ||||||||
Average portable storage utilization rate | 69.8 | % | 56.4 | % | 69.4 | % | |||||
Average portable storage monthly rental rate | $ | 118 | $ | 116 | $ | 118 |
Six Months Ended June 30, 2017 | |||||||||||||||
(in thousands, except for units on rent and rates) | Modular - US | Modular - Other North America | Corporate & Other | Total | |||||||||||
Revenue | $ | 185,624 | $ | 24,069 | $ | (295 | ) | $ | 209,398 | ||||||
Gross profit | $ | 69,769 | $ | 8,035 | $ | (283 | ) | $ | 77,521 | ||||||
Adjusted EBITDA | $ | 50,012 | $ | 5,625 | $ | (7,444 | ) | $ | 48,193 | ||||||
Capital expenditures for rental equipment | $ | 47,958 | $ | 2,344 | $ | — | $ | 50,302 | |||||||
Modular space units on rent (average during the period) | 35,438 | 4,868 | — | 40,306 | |||||||||||
Average modular space utilization rate | 73.0 | % | 49.6 | % | — | % | 69.1 | % | |||||||
Average modular space monthly rental rate | $ | 524 | $ | 531 | $ | — | $ | 524 | |||||||
Portable storage units on rent (average during the period) | 12,394 | 355 | — | 12,749 | |||||||||||
Average portable storage utilization rate | 72.9 | % | 52.2 | % | — | % | 72.1 | % | |||||||
Average portable storage monthly rental rate | $ | 113 | $ | 114 | $ | — | $ | 113 |
Consolidated Balance Sheets
(in thousands, except share data) | June 30, 2018 (unaudited) | December 31, 2017 | ||||||
Assets | ||||||||
Cash and cash equivalents | $ | 8,181 | $ | 9,185 | ||||
Trade receivables, net of allowances for doubtful accounts at June 30, 2018 and December 31, 2017 of $5,631 and $4,845, respectively | 104,013 | 94,820 | ||||||
Raw materials and consumables | 9,829 | 10,082 | ||||||
Prepaid expenses and other current assets | 14,137 | 13,696 | ||||||
Total current assets | 136,160 | 127,783 | ||||||
Rental equipment, net | 1,075,040 | 1,040,146 | ||||||
Property, plant and equipment, net | 82,361 | 83,666 | ||||||
Goodwill | 33,570 | 28,609 | ||||||
Intangible assets, net | 125,864 | 126,259 | ||||||
Other non-current assets | 4,038 | 4,279 | ||||||
Total long-term assets | 1,320,873 | 1,282,959 | ||||||
Total assets | $ | 1,457,033 | $ | 1,410,742 | ||||
Liabilities | ||||||||
Accounts payable | 58,370 | 57,051 | ||||||
Accrued liabilities | 45,606 | 48,912 | ||||||
Accrued interest | 1,802 | 2,704 | ||||||
Deferred revenue and customer deposits | 50,382 | 45,182 | ||||||
Current portion of long-term debt | 1,883 | 1,881 | ||||||
Total current liabilities | 158,043 | 155,730 | ||||||
Long-term debt | 684,641 | 624,865 | ||||||
Deferred tax liabilities | 111,924 | 120,865 | ||||||
Deferred revenue and customer deposits | 6,696 | 5,377 | ||||||
Other non-current liabilities | 19,109 | 19,355 | ||||||
Long-term liabilities | 822,370 | 770,462 | ||||||
Total liabilities | 980,413 | 926,192 | ||||||
Commitments and contingencies | ||||||||
Class A common stock: $0.0001 par, 400,000,000 shares authorized at June 30, 2018 and December 31, 2017; 84,644,744 shares issued and outstanding at both June 30, 2018 and December 31, 2017 | 8 | 8 | ||||||
Class B common stock: $0.0001 par, 100,000,000 shares authorized at June 30, 2018 and December 31, 2017; 8,024,419 shares issued and outstanding at both June 30, 2018 and December 31, 2017 | 1 | 1 | ||||||
Additional paid-in-capital | 2,123,101 | 2,121,926 | ||||||
Accumulated other comprehensive loss | (54,417 | ) | (49,497 | ) | ||||
Accumulated deficit | (1,640,230 | ) | (1,636,819 | ) | ||||
Total shareholders' equity | 428,463 | 435,619 | ||||||
Non-controlling interest | 48,157 | 48,931 | ||||||
Total equity | 476,620 | 484,550 | ||||||
Total liabilities and equity | $ | 1,457,033 | $ | 1,410,742 |
Reconciliation of non-GAAP Financial Measures
Net Income (Loss) to Adjusted EBITDA non-GAAP Reconciliations
We define EBITDA as net income (loss) plus interest (income) expense, income tax expense (benefit), depreciation and amortization. Our Adjusted EBITDA reflects the following further adjustments to EBITDA to exclude certain non-cash items and the effect of what we consider transactions or events not related to our core business operations:
- Currency (gains) losses, net: on monetary assets and liabilities denominated in foreign currencies other than the subsidiaries’ functional currency. Substantially all such currency gains (losses) are unrealized and attributable to financings due to and from affiliated companies.
- Goodwill and other impairment charges related to non-cash costs associated with impairment charges to goodwill, other intangibles, rental fleet and property, plant and equipment.
- Restructuring costs associated with restructuring plans designed to streamline operations and reduce costs.
- Costs to integrate acquired companies.
- Non-cash charges for stock compensation plans.
- Other expense includes consulting expenses related to certain one-time projects, financing costs not classified as interest expense and gains and losses on disposals of property, plant, and equipment.
Adjusted EBITDA has limitations as an analytical tool, and you should not consider the measure in isolation or as a substitute for net income (loss), cash flow from operations or other methods of analyzing WSC’s results as reported under GAAP. Some of these limitations are:
- Adjusted EBITDA does not reflect changes in, or cash requirements, for our working capital needs;
- Adjusted EBITDA does not reflect our interest expense, or the cash requirements necessary to service interest or principal payments, on our indebtedness;
- Adjusted EBITDA does not reflect our tax expense or the cash requirements to pay our taxes;
- Adjusted EBITDA does not reflect historical cash expenditures or future requirements for capital expenditures or contractual commitments;
- Adjusted EBITDA does not reflect the impact on earnings or changes resulting from matters that we consider not to be indicative of our future operations;
- although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future and Adjusted EBITDA does not reflect any cash requirements for such replacements; and
- other companies in our industry may calculate Adjusted EBITDA differently, limiting its usefulness as a comparative measure.
Because of these limitations, Adjusted EBITDA should not be considered as discretionary cash available to reinvest in the growth of our business or as measures of cash that will be available to meet our obligations.
The table below presents the unaudited reconciliation of net loss calculated in accordance with GAAP to Adjusted EBITDA. See “Non-GAAP Financial Measures” above for further information regarding the Company’s use of non-GAAP financial measures.
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(in thousands) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Net income (loss) | $ | 379 | $ | (5,896 | ) | $ | (6,456 | ) | $ | (16,075 | ) | ||||
Income from discontinued operations, net of tax | — | 3,840 | — | 6,045 | |||||||||||
Income (loss) from continuing operations | 379 | (9,736 | ) | (6,456 | ) | (22,120 | ) | ||||||||
Income tax benefit | (6,645 | ) | (5,269 | ) | (7,065 | ) | (10,138 | ) | |||||||
Loss from continuing operations before income tax | (6,266 | ) | (15,005 | ) | (13,521 | ) | (32,258 | ) | |||||||
Interest expense, net | 12,155 | 26,398 | 23,874 | 48,475 | |||||||||||
Depreciation and amortization | 25,040 | 19,364 | 51,321 | 38,025 | |||||||||||
Currency losses (gains), net | 572 | (6,497 | ) | 1,596 | (8,499 | ) | |||||||||
Restructuring costs | 449 | 684 | 1,077 | 968 | |||||||||||
Transaction fees | 4,118 | 776 | 4,118 | 862 | |||||||||||
Integration costs | 4,785 | — | 7,415 | — | |||||||||||
Stock compensation expense | 1,054 | — | 1,175 | — | |||||||||||
Other expense | 9 | 527 | 353 | 620 | |||||||||||
Adjusted EBITDA | $ | 41,916 | $ | 26,247 | $ | 77,408 | $ | 48,193 |
Net (Loss) Income to Adjusted EBITDA non-GAAP Reconciliations
The following tables present unaudited reconciliations of the Company’s loss from continuing operations before income tax to Adjusted EBITDA by segment for the three and six months ended
Three Months Ended June 30, 2018 | |||||||||||||||
(in thousands) | Modular - US | Modular - Other North America | Corporate & Other | Consolidated | |||||||||||
Net (loss) income | $ | (5,533 | ) | $ | (733 | ) | $ | 6,645 | $ | 379 | |||||
Income from discontinued operations, net of tax | — | — | — | — | |||||||||||
Loss (income) from continuing operations | (5,533 | ) | (733 | ) | 6,645 | 379 | |||||||||
Income tax benefit(a) | — | — | (6,645 | ) | (6,645 | ) | |||||||||
Loss from continuing operations before income tax | (5,533 | ) | (733 | ) | — | (6,266 | ) | ||||||||
Interest expense, net | 11,663 | 492 | — | 12,155 | |||||||||||
Depreciation and amortization | 21,571 | 3,469 | — | 25,040 | |||||||||||
Currency losses, net | 114 | 458 | — | 572 | |||||||||||
Restructuring costs | 449 | — | — | 449 | |||||||||||
Transaction Fees | 4,049 | 69 | — | 4,118 | |||||||||||
Integration costs | 4,785 | — | — | 4,785 | |||||||||||
Stock compensation expense | 1,054 | — | — | 1,054 | |||||||||||
Other expense | (48 | ) | 57 | — | 9 | ||||||||||
Adjusted EBITDA | $ | 38,104 | $ | 3,812 | $ | — | $ | 41,916 |
Three Months Ended June 30, 2017 | |||||||||||||||
(in thousands) | Modular - US | Modular - Other North America | Corporate & Other | Consolidated | |||||||||||
Net income (loss) | $ | 320 | $ | (1,442 | ) | $ | (4,774 | ) | $ | (5,896 | ) | ||||
Income from discontinued operations, net of tax(b) | — | — | 3,840 | 3,840 | |||||||||||
Income (loss) from continuing operations | 320 | (1,442 | ) | (8,614 | ) | (9,736 | ) | ||||||||
Income tax benefit(a) | — | — | (5,269 | ) | (5,269 | ) | |||||||||
Income (loss) from continuing operations before income tax | 320 | (1,442 | ) | (13,883 | ) | (15,005 | ) | ||||||||
Interest expense, net | 15,953 | 1,038 | 9,407 | 26,398 | |||||||||||
Depreciation and amortization | 15,830 | 3,189 | 345 | 19,364 | |||||||||||
Currency gains, net | (5,800 | ) | (294 | ) | (403 | ) | (6,497 | ) | |||||||
Restructuring costs | — | — | 684 | 684 | |||||||||||
Transaction fees | 46 | — | 730 | 776 | |||||||||||
Other expense | (20 | ) | 15 | 532 | 527 | ||||||||||
Adjusted EBITDA | $ | 26,329 | $ | 2,506 | $ | (2,588 | ) | $ | 26,247 |
Six Months Ended June 30, 2018 | |||||||||||||||
(in thousands) | Modular - US | Modular - Other North America | Corporate & Other | Consolidated | |||||||||||
Net (loss) income | $ | (10,841 | ) | $ | (2,680 | ) | $ | 7,065 | $ | (6,456 | ) | ||||
Income from discontinued operations, net of tax | — | — | — | — | |||||||||||
(Loss) income from continuing operations | (10,841 | ) | (2,680 | ) | 7,065 | (6,456 | ) | ||||||||
Income tax benefit(a) | — | — | (7,065 | ) | (7,065 | ) | |||||||||
Loss from continuing operations before income tax | (10,841 | ) | (2,680 | ) | — | (13,521 | ) | ||||||||
Interest expense, net | 22,823 | 1,051 | — | 23,874 | |||||||||||
Depreciation and amortization | 44,463 | 6,858 | — | 51,321 | |||||||||||
Currency losses, net | 271 | 1,325 | — | 1,596 | |||||||||||
Restructuring costs | 1,067 | 10 | — | 1,077 | |||||||||||
Transaction Fees | 4,049 | 69 | — | 4,118 | |||||||||||
Integration costs | 7,415 | — | — | 7,415 | |||||||||||
Stock compensation expense | 1,175 | — | — | 1,175 | |||||||||||
Other expense | 294 | 59 | — | 353 | |||||||||||
Adjusted EBITDA | $ | 70,716 | $ | 6,692 | $ | — | $ | 77,408 |
Six Months Ended June 30, 2017 | |||||||||||||||
(in thousands) | Modular - US | Modular - Other North America | Corporate & Other | Consolidated | |||||||||||
Net loss | $ | (5,210 | ) | $ | (2,458 | ) | $ | (8,407 | ) | $ | (16,075 | ) | |||
Income from discontinued operations, net of tax(b) | — | — | 6,045 | 6,045 | |||||||||||
Loss from continuing operations | (5,210 | ) | (2,458 | ) | (14,452 | ) | (22,120 | ) | |||||||
Income tax benefit(a) | — | — | (10,138 | ) | (10,138 | ) | |||||||||
Loss from continuing operations before income tax | (5,210 | ) | (2,458 | ) | (24,590 | ) | (32,258 | ) | |||||||
Interest expense, net | 31,512 | 2,216 | 14,747 | 48,475 | |||||||||||
Depreciation and amortization | 30,993 | 6,331 | 701 | 38,025 | |||||||||||
Currency gains, net | (7,399 | ) | (481 | ) | (619 | ) | (8,499 | ) | |||||||
Restructuring costs | — | — | 968 | 968 | |||||||||||
Transaction fees | 46 | — | 816 | 862 | |||||||||||
Other expense | 70 | 17 | 533 | 620 | |||||||||||
Adjusted EBITDA | $ | 50,012 | $ | 5,625 | $ | (7,444 | ) | $ | 48,193 |
(a) The Company does not allocate expenses on a segment level. As such, we have included tax income benefit in Corporate and other for the purpose of this reconciliation.
(b) For the purpose of this reconciliation, the Company has included income related to discontinued operations in Corporate and other as it all pertained to the Remote Accommodations segment which was discontinued as of
Net Capital Expenditures for Rental Equipment non-GAAP Reconciliation
The following table provides an unaudited reconciliation of purchase of rental equipment to Net Capital Expenditures for Rental Equipment:
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(in thousands) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Total purchase of rental equipment | $ | (32,679 | ) | $ | (29,326 | ) | $ | (64,763 | ) | $ | (54,223 | ) | |||
Total purchases of rental equipment from discontinued operations | — | (1,701 | ) | — | (3,921 | ) | |||||||||
Total purchases of rental equipment from continuing operations | (32,679 | ) | (27,625 | ) | (64,763 | ) | (50,302 | ) | |||||||
Proceeds from sale of rental equipment | 3,905 | 4,778 | 12,033 | 10,622 | |||||||||||
Net Capital Expenditures for Rental Equipment | $ | (28,774 | ) | $ | (22,847 | ) | $ | (52,730 | ) | $ | (39,680 | ) |
Contact Information
Investor Inquiries: Mark Barbalato investors@willscot.com |
|
Media Inquiries: Scott Junk scott.junk@willscot.com |
Source: Williams Scotsman