WILLSCOT CORPORATION ANNOUNCES SECOND QUARTER 2019 RESULTS AND UPDATES 2019 OUTLOOK
EXECUTION OF INTEGRATION AND GROWTH INITIATIVES REMAINS ON TRACK
BALTIMORE (August 1, 2019) - WillScot Corporation (“WillScot” or the "Company") (Nasdaq: WSC) today announced its second quarter 2019 financial results.
Second Quarter 2019 Financial Highlights1,2
•Revenues of $266.1 million, representing an 89.7% (or $125.8 million) year over year increase, driven by growth in core leasing and services revenues of $111.4 million, or 84.0%.
•Consolidated modular space average monthly rental rate increased to $611 representing a 10.9% increase year over year. Pro forma modular space average monthly rental rates increased 15.1% year over year, driven primarily by a 16.1% year over year increase in our core Modular - US segment.
•Consolidated modular space units on rent increased 37,779 or 69.3% year over year, driven by the ModSpace acquisition, and average modular space utilization increased 160 basis points (“bps”) year over year to 71.9%. Pro forma utilization increased 20 bps year over year in the Modular - US segment and was flat on a consolidated basis.
•Redeemed $200.0 million of 10% 2023 senior unsecured notes and executed a $190.0 million add-on to the existing 6.875% 2023 senior secured notes, resulting in approximately $6.0 million of net expected annual interest expense savings, beginning June 19, 2019 and with no change to total debt outstanding in the quarter.
•Consolidated net loss of $11.8 million includes $19.4 million of discrete costs expensed in the period related to the ModSpace integration and loss on extinguishment of debt related to the redemption of our 10% 2023 senior unsecured notes.
•Consolidated Adjusted EBITDA of $88.7 million represents a 111.7% (or $46.8 million) year over year increase.
•Consolidated Adjusted EBITDA margin of 33.3% increased 340 bps year over year.
|Three Months Ended|
|Six Months Ended|
|(in thousands) ||2019 ||2018 ||2019 ||2018 |
|Revenue ||$||266,125 ||$||140,333 ||$||521,133 ||$||275,084 |
|Consolidated net (loss) income ||$||(11,775)||$||379 ||$||(22,936)||$||(6,456)|
|Three Months Ended|
|Six Months Ended|
Adjusted EBITDA1 by Segment (in thousands)
|2019 ||2018 ||2019 ||2018 |
|Modular - US ||$||81,380 ||$||38,104 ||$||158,148 ||$||70,716 |
|Modular - Other North America ||7,347 ||3,812 ||15,087 ||6,692 |
|Consolidated Adjusted EBITDA ||$||88,727 ||$||41,916 ||$||173,235 ||$||77,408 |
Brad Soultz, President and Chief Executive Officer of WillScot, commented, "WillScot delivered another outstanding quarter, as we continued to execute our strategy which is resulting in a complete transformation of the company. The result of this focus is evident in our second quarter results as revenue and Adjusted EBITDA for the second quarter were up 89.7% and 111.7%, respectively, over the prior year, and our Adjusted EBITDA margin of 33.3% increased 340 basis points versus the second quarter of 2018 as a result of our increasing scale, solid synergy realization, and growing our core leasing revenue
1 - Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial measures. Further information and reconciliations for these Non-GAAP measures to the most directly comparable financial measure under generally accepted accounting principles in the US ("GAAP") is included at the end of this press release.
2 - The pro forma financial information and performance metrics contained in this press release include the results of WillScot and ModSpace on a pro forma basis for all periods presented. The ModSpace acquisition closed August 15, 2018.
3 - Information reconciling forward-looking Adjusted EBITDA to GAAP financial measures is unavailable to the Company without unreasonable effort and therefore no reconciliation to the most comparable GAAP measures is provided.
4 - Net capital expenditures is a non-GAAP financial measure. Please see the non-GAAP reconciliation tables included at the end of this press release.
The following information was filed by Willscot Corp (WSC) on Friday, August 2, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.