Nasdaq GlobeNewswire

Williams Scotsman Announces Second Quarter 2018 Results and Provides Update on Pending ModSpace Acquisition

Del

BALTIMORE, Aug. 07, 2018 (GLOBE NEWSWIRE) -- WillScot Corporation (Nasdaq: WSC) (“Williams Scotsman” or the "Company") today announced its second quarter 2018 financial results and provided an update on the closing status and timeframe of its pending acquisition of Modular Space Holdings, Inc. ("ModSpace").

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 of Williams 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 net income of $0.4 million, which includes $5.2 million of discrete integration and restructuring costs related to the Acton 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 - Other North 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 - WillScot Corporation (formerly known as Double Eagle Acquisition Corp.) acquired Williams Scotsman International, Inc. (“WSII”) on November 29, 2017 (the "Business Combination"). The Business Combination was accounted for as a reverse acquisition of Double Eagle Acquisition Corp. by WSII. Prior to completing the Business Combination, WSII’s parent company undertook an internal restructuring in which WSII’s remote accommodations business was removed from WSII. Financial results from WSII’s former remote accommodations business are presented as discontinued operations in the financial statements. As a result of the Business Combination, (i) Williams Scotsman’s consolidated financial results for periods prior to November 29, 2017, reflect the financial results of WSII and its consolidated subsidiaries, as the accounting predecessor to Williams Scotsman, and (ii) for periods from and after this date, Williams Scotsman’s financial results reflect those of Williams Scotsman and its consolidated subsidiaries (including WSII and its subsidiaries) as the successor following the Business Combination.

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

Brad Soultz, President and Chief Executive Officer of Williams Scotsman commented, “I am delighted with our second quarter Adjusted EBITDA results of $41.9 million, which is up 45.5% year over year for our modular segments and up 18.0% sequentially over the first quarter of 2018. The sequential growth is especially notable, as it reflects our continued strong organic growth as well as the realization of Acton-related synergies as the integration progresses. Of particular note, pro-forma modular space rates in our Modular - US Segment were up nearly 10% year over year for the third quarter in a row, driven by both continued improvement in base rental rates and expansion of our Ready to Work value proposition.

While delivering these outstanding results in the quarter, we also successfully migrated the Acton business onto the Williams Scotsman operating platform, representing a major integration milestone, and have now secured and announced the transformational acquisition of ModSpace. I am extremely proud of the Williams Scotsman team."

Tim Boswell, Chief Financial Officer, commented, "Since July 9, we’ve raised $628.0 million of gross proceeds in the debt and equity capital markets and announced the expansion of our revolving credit facility to $1.35 billion. Together these transactions will allow us to fund the cash consideration for the ModSpace acquisition and give us the operational and financial flexibility to continue executing our strategy post-closing. We appreciate the strong support we have received from the investment community in meeting those objectives."

Second Quarter 2018 Results

Total consolidated revenues increased 27.4% to $140.3 million, as compared to $110.1 million in the prior year quarter.

  • 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 of Williams 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 - 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 $41.9 million, up 45.5% compared to $28.8 million in the prior year quarter. Modular - US segment Adjusted EBITDA increased 44.9% to $38.1 million, and Modular - Other North America segment Adjusted EBITDA increased $1.3 million to $3.8 million from the prior year quarter. Consolidated Adjusted EBITDA increased 59.9% to $41.9 million, as compared to $26.2 million in the prior year quarter.

Capitalization and Liquidity Update

Capital expenditures for rental equipment from continuing operations increased $5.1 million, or 18.5%, to $32.7 million for the three months ended June 30, 2018, from $27.6 million for the three months ended June 30, 2017. Net capital expenditures for rental equipment also increased $5.9 million, or 25.8%, to $28.8 million for the three months ended June 30, 2018. For the six months ended June 30, 2018, capital expenditures for rental equipment from continuing operations increased $14.5 million, or 28.8% to $64.8 million from $50.3 million for the six months ended June 30, 2017. Net capital expenditures for rental equipment also increased $13.0 million, or 32.7% to $52.7 million for the six months ended June 30, 2018. The increases for both periods were driven by increased spend for refurbishments, new fleet, and value-added products and services ("VAPS") to drive modular space unit on rent and revenue growth, and maintenance of a larger fleet following our Acton and Tyson acquisitions.

During the six months ended June 30, 2018, the Company’s total debt balance increased by $59.8 million to $686.5 million due to the Tyson acquisition, continued capital investments in our fleet, and borrowing to fund an $11.8 million reduction of accounts payable and accrued liabilities related to the Business Combination and certain aged accounts. As of June 30, 2018, the Company had $219.6 million of availability under its revolving credit facility.

Since June 30, 2018, we obtained the financing required to fund the pending ModSpace acquisition and to pay related fees and expenses.

  • 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 by August 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 Acton and Tyson acquisitions. Management expects to provide updated guidance after completing the ModSpace acquisition. This guidance is subject to the risks and uncertainties described in the "Forward-Looking Statements" below.

Non-GAAP Financial Measures

This press release includes non-GAAP financial measures, including Adjusted EBITDA. Williams Scotsman believes that this non-GAAP measure is useful to investors because it (i) allows investors to compare performance over various reporting periods on a consistent basis by removing from operating results the impact of items that do not reflect core operating performance; (ii) is used by our board of directors and management to assess our performance; (iii) may, subject to the limitations described below, enable investors to compare the performance of Williams Scotsman to its competitors; and (iv) provides an additional tool for investors to use in evaluating ongoing operating results and trends. A metric similar to Adjusted EBITDA is also used to evaluate Williams Scotsman’s ability to service its debt. This non-GAAP measure should not be considered in isolation from, or as an alternative to, financial measures determined in accordance with GAAP. Other companies may calculate Adjusted EBITDA and other non-GAAP financial measures differently, and therefore Williams Scotsman’s non-GAAP financial measures may not be directly comparable to similarly titled measures of other companies. For reconciliation of the non-GAAP measures used in this press release, see “Reconciliation of non-GAAP Financial Measures" included in this press release.

Conference Call Information

Williams Scotsman will host a conference call and webcast to discuss its second quarter results at 10 a.m. Eastern Time on Wednesday, August 8, 2018. The live call can be accessed by dialing (855) 312-9420 (US/Canada toll-free) or (210) 874-7774 (international) and asking to be connected to the Williams Scotsman call. A live webcast will also be accessible via the "Events & Presentations" section of the Company's investor relations website https://investors.willscot.com. Choose "Events" and select the information pertaining to the Q2 WSC Earnings Conference Call. Additionally, there will be slides accompanying the webcast. Please allow at least 15 minutes prior to the call to register, download and install any necessary software. For those unable to listen to the live broadcast, an audio webcast of the call will be available for 60 days on the Company’s investor relations website.

About WillScot Corporation

Headquartered in Baltimore, Maryland, WillScot Corporation is the public holding company for the Williams Scotsman family of companies in the United States, Canada and Mexico. WillScot Corporation trades on the NASDAQ stock exchange under the ticker symbol "WSC." Williams Scotsman is a specialty rental services market leader providing innovative modular space and portable storage solutions across North America. Williams Scotsman is the modular space supplier of choice for the construction, education, health care, government, retail, commercial, transportation, security and energy sectors. With over half a century of innovative history, organic growth and strategic acquisitions, its branch network includes over 100 locations, its fleet comprises nearly 100,000 modular space and portable storage units and its customer base has grown to approximately 35,000.

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 Williams Scotsman believes that these forward-looking statements are based on reasonable assumptions, it can give no assurance that any such forward-looking statement will materialize. Important factors that may affect actual results or outcomes include, among others, our ability to acquire and integrate new assets and operations (including the pending ModSpace acquisition); our ability to manage growth and execute our business plan; our estimates of the size of the markets for our products; the rate and degree of market acceptance of our products; the success of other competing modular space and portable storage solutions that exist or may become available; rising costs adversely affecting our profitability; potential litigation involving our Company; general economic and market conditions impacting demand for our products and services; implementation of tax reform; our ability to implement and maintain an effective system of internal controls; and such other risks and uncertainties described in the periodic reports we file with the Securities and Exchange Commission (“SEC”) from time to time (including our Form 10-K for the year ending December 31, 2017), which are available through the SEC’s EDGAR system at www.sec.gov and on our website. Any forward-looking statement speaks only at the date which it is made, and Williams Scotsman disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Additional Information and Where to Find It

Additional information about the transaction can be found on the Williams Scotsman investor relations website at https://investors.willscot.com.


WillScot Corporation
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 June 30, 2018 and 2017

  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 June 30, 2018 and 2017

  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  


WillScot Corporation
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 June 30, 2018 and 2017, respectively:

  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 November 29, 2017.

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
 

Om Nasdaq GlobeNewswire

Nasdaq GlobeNewswire
Nasdaq GlobeNewswire
One Liberty Plaza - 165 Broadway
NY 10006 New York

+1 212 401 8700http://www.nasdaqomx.com

NASDAQ (NASDAQ: NDAQ) is a leading provider of trading, exchange technology, information and public company services across six continents.

Følg saker fra Nasdaq GlobeNewswire

Registrer deg med din epostadresse under for å få de nyeste sakene fra Nasdaq GlobeNewswire på epost fortløpende. Du kan melde deg av når som helst.

Siste saker fra Nasdaq GlobeNewswire

SoftServe’s Research Team Takes Prize at Samsung AI Challenge16.10.2018 21:16Pressemelding

Artificial intelligence leveraged to deblur and dehaze photos and videos with exceptional quality AUSTIN, Texas, Oct. 16, 2018 (GLOBE NEWSWIRE) -- SoftServe, a leading digital authority and consulting company, announced its researchers won second place at the Samsung AI Challenge 2018 with innovative neural image restoration enhancement for mobile and embedded devices. “Artificial intelligence is at the center of future-proofing technologies for many businesses today,” said Serge Haziyev, senior vice president for Advanced Technology at SoftServe. “The opportunities for AI are endless and we are proud of our team and their commitment to creating an innovative AI algorithm that pushed the boundaries of existing deblurring and dehazing technologies as part of Samsung’s AI Hackathon.” The winning team, made up of SoftServe research engineers, Volodymyr Budzan and Orest Kupyn, participated in the worldwide event developing a solution that uses state-of-the-art deep learning and computer vi

IRYStec Selected as CIX Top 20 Innovator for 2018!16.10.2018 17:52Pressemelding

MONTREAL, Oct. 16, 2018 (GLOBE NEWSWIRE) -- IRYStec Software Inc., today announced it was selected as one of the CIX Top 20 most innovative companies of 2018 in Canada. Chosen from hundreds of profiles by industry experts and investors, the winner will represent Canada at the Start-up World Cup Grand Finale In 2019! The CIX Top 20 program is Canada’s largest national showcase of the 20 hottest and most innovative tech companies. Hundreds of applications are submitted each year from across Canada and the CIX Selection Committee evaluates and selects 20 based on 5 criteria: Business Model, Quality of Product and Service Offering, Innovation, Market Opportunity and Depth of Management. CTO and Co-founder, Tara Akhavan, will be presenting at CIX 2018 on Oct 23 at 1 PM. Both Tara and Simon Morris, CEO, will be attending both days demonstrating why all displays in the near future will be perceptual displays driven by IRYStec’s Perceptual Display Platform technology. A crowd of over 800 inves

Strategic Tax Leaders are Preparing Now for Tax Reform 2.016.10.2018 15:15Pressemelding

ATLANTA, Oct. 16, 2018 (GLOBE NEWSWIRE) -- This year organizations adjusted their tax approach due to the passing of the Tax Cuts and Jobs Act. Strategic tax teams are continuing to prepare for another round of amendments with the potential for Tax Reform 2.0. “Change is inevitable, so organizations can’t get complacent with their tax strategy,” said Nick Alexander, Senior Product Manager at PowerPlan. “Tax teams should maximize their use of technology to help them stay ahead of future modifications of tax code to minimize disruption to their financials, processes and compliance.” PowerPlan has published a new article, Get Ready: Reform Isn’t Over, which further covers the potential impacts of Tax Reform 2.0 and shares how tax teams can prepare. To access the article, please visit: http://bit.ly/2NE8ZDO. About PowerPlan PowerPlan software provides financial insight into how complex rules and regulations impact your organization – empowering you to make credible decisions that improve o

€1.6bn investment project kickstarts Lithium Werks’ battery gigafactories vision16.10.2018 14:38Pressemelding

THE HAGUE, Netherlands, Oct. 16, 2018 (GLOBE NEWSWIRE) -- Dutch energy storage and battery company Lithium Werks B.V. (www.lithiumwerks.com) and Chinese Zhejiang Jiashan Economic and Technological Development Zone Industry Corporation have signed a framework agreement with the intention to construct a 60 hectares battery gigafactory in the Yangtze river Delta. Total investments required are estimated at €1.6 billion. The Lithium Werks factory and related facilities will produce battery cells for lithium-ion batteries, enabling the energy transition from fossil fuels to clean energy in order to reduce CO2 emissions. Lithium Werks expects to have installed production capacity of 500 GWh per annum by 2030 as it continues to contribute to the shift to a carbon neutral world. “With our Chinese partners’ help, and as we continue to grow both organically and through acquisitions, we will deliver the energy storage solutions that our customers increasingly ask for as the world transitions to c

Global Beverage and Food Launches With Stevia Are Up Sharply In 201816.10.2018 14:00Pressemelding

New Products Launched Globally with Stevia Post a +27% Increase in the First Half of 2018 vs the Same Period in 2017 CHICAGO, Oct. 16, 2018 (GLOBE NEWSWIRE) -- PureCircle (LSE: PURE), the world's leading producer and innovator of great-tasting stevia sweeteners, reports launches of new food and beverage products containing stevia leaf sweeteners increased significantly in the first six months of 2018 vs the comparable period in 2017. The data used in this release was provided by Mintel Global New Products Database (GNPD)*. Specifically, new product launches with stevia rose +27% globally. About one-third of foods and beverages launched using high-intensity sweeteners** contained stevia this year, nearly double the rate when compared to the first six months in 2012. Looking at results separately for global beverages and foods, launches of beverage products containing stevia grew 33% in the first half of 2018. Launches of food products with stevia grew 23%. As evidenced by this growth da

Checkpoint Therapeutics Appoints Christian Béchon to its Board of Directors16.10.2018 14:00Pressemelding

NEW YORK, Oct. 16, 2018 (GLOBE NEWSWIRE) -- Checkpoint Therapeutics, Inc. (“Checkpoint”) (NASDAQ: CKPT), a clinical-stage immuno-oncology biopharmaceutical company focused on the acquisition, development and commercialization of novel treatments for patients with solid tumor cancers, today announced that it has appointed Christian Béchon to its Board of Directors. James F. Oliviero, President and Chief Executive Officer of Checkpoint, said, “I am very pleased to welcome Christian to Checkpoint’s Board of Directors. His experience as Chairman and CEO of LFB S.A., a major European biopharmaceutical company with global operations, will make him a valuable addition to our Board. We look forward to leveraging Christian’s expertise as we continue to advance toward pivotal Phase 3 clinical trials next year.” Mr. Béchon brings more than two decades of business experience to Checkpoint. He is currently Chairman and Chief Executive Officer of ChB Consultants, a privately held life science consul

I vårt presserom finner du alle våre siste saker, kontaktpersoner, bilder, dokumenter og annen relevant informasjon om oss.

Besøk vårt presserom