WillScot (WSC) 6 Nov 222022 Q3 Earnings call transcript

Welcome to the third quarter 2022 WillScot Mobile Mini Earnings Conference Call. My name is Michelle, and I will be your operator for this call. [Operator Instructions]. Please note that this conference is being recorded. I will now turn the call over to Nick Girardi, Senior Director of Treasury and Investor Relations. begin. may you Nick,

Chief welcome of Call. WillScot statement. include Participants Officer; Slide the our President Chief and may contains presentation Quarter found X WillScot be Brad Mini Mobile XXXX Executive on and Boswell, Tim Earnings on Relations and harbor Officer. to morning, Today's Mobile material section the Investor Third Soultz, Financial the Good safe today's website. call Mini

will and session. We making our during forward-looking presentation the be statements Q&A

a to of subject of are risks our many operations and business uncertainties, variety which control. and Our beyond are

As a materially result, our today's differ actual results from may comments.

more our and factors that other filings With that, with a in the the could differ please description risks, statement to to the over refer SEC. results For Soultz. of turn to Brad possible safe I'll complete and cause call presentation the harbor actual our

for everyone. Soultz, Good morning, CEO Thanks, WillScot Thank Mobile of Brad Nick. us Mini. you today. I'm joining

colleagues a this First, the quarter. I'd during take of to segment successful like thank second that Tank Pump divestiture supported the & our to

our performance, to from with customers again segments, EBITDA. to Storage reinvestment to the stellar segments team's of capital Pump and our unique and during compounding and Modular within to of including our demonstrates shareholders. delivering debt of the the core framework, together, redeployed, M&A is comfortably allocation QX solutions provider from The value to successful the a range pure-play our scale net X.Xx & our revenue continued commitment Shifting growth we and a The with third to Following Storage our which unparalleled consistent X higher and to in returns leverage capital reduced X.Xx already divestiture our Modular the XXXX quality are of being Tank target divestiture X.Xx and divestiture, mix. was QX quarter, to segment consistent leverage in quarter shareholders. and

XX%, VAPS, increased Modular as the Modular were were To volumes, products on products rate America in pricing units end, segment all Modular value-added monthly and in offer on segment rent commercial and or which continue differentiated average X% XXXX segment and has year-over-year. that XX%. value-added value will America prices America increased up North performance XX%. XX% and prices Our increased the continued so North VAPS up in North inclusive strong were rent up our in and storage and a our performance drive forward. going continued units volume capture of We to do proposition, rate to

EBITDA SG&A, growth basis the XXX generated and and Given $XXX we revenue XX.X%, was in million bps XXX QX. year-over-year points stabilization the EBITDA of operations XX% in in expanded resulting sequential which year-over-year Adjusted adjusted from margin sequentially. continuing

towards relative the prior both tracking the 'XX, aspects robust supports We Index Billing The sentiment, than are our ever and other compound developers, during remained XXX robust were and with convicted softening XXXX. well of Other the and to Canada as deliver growth our our since outsized about has builders broad-based well as our demand in as expansion we're remain such, which into continued February year positive QX to contributors. basis customer Switching of which, Architectural confidence diverse these U.S. mitigating call. of some minor more end As residential of nonresidential our combined discussed margin demand, X which across for effectively portfolio and XXXX in be gears to to markets full continues points ability in year. to returns. continue

With continue also reduction federal a We investment. our and compete inflation even positioned spending the can servicing projects beginning we're are to for will began and Storage mega sophistication, long-duration onshoring reshoring large and require tailwind. to projects, Modular just these correspondingly solutions. already to back projects. scale the see We're major uniquely actively chips are complex These or we activity a complex, which trace project before were that to acts be Infrastructure now passed. which

supporting with break room, wind Coast, wind our projects we're Atlantic space provide they along office, to partnering For the customers operational as turbines. offshore storage example, develop and

are a cross-selling support Storage these into positioned capabilities XXXX. focused projects, volumes And ready-to-work drive internally, to We we'll Modular improving solutions. uniquely geographical which to for our be requirement have typically broader and on

instance single track of XXXX. which be and on rep Our productivity improved completed drive to sales marketing with existing in sharing, data market project X CRM Salesforce.com another which enhanced into lever instances upgrades digital This targeting will and harmonization, step giving of end our and volumes X automated lead us industry-leading a of QX is advantage taking irrespective yet our customer conditions. technology and and further to enable

progress Mobile We branded deployment continued of to the products across value-added our fleet. Mini

just team actively product in our Our and from management to transforming how the workspace delivering is secure portable, to box warehouse commercial a Transition and supplying mindset we storage business. solutions. go market

of point storage current rates want reference, square portable you than you it logistics need when for per or per our equal month average drive a As secure rental best-in-class where North with foot a our workspace capabilities. $X America less warehouse that

portable $XXX feedback early we for lighting of in office VAPS penetration. initiative the value And towards increasing with shelving, sized extremely month see locks, to adoption VAPS already increase segment. basic which beginning respect Modular in with that, level units all ground comparably to units with is third storage with Our our and the average quarter in in customer encouraging delivered were per over

which of extend and confident in approximately portable storage unique Given enhanced our in Modular represents every storage $X value business. we're of rate as to we come for storage we've $X scale is been our expand VAPS upon growth month VAPS revenue. per further proposition, this penetration, value million as continued experiencing years Based incremental annual on units

sources of confident and onshoring as the industrial we reshoring strength objective customer upon see spending. we continue tailwinds in which markets from trajectory by in, ABI manufacturing to XXXX, our first, all we're of given, end So aggressively sentiment in we and enter infrastructure invest the evidenced and

free flow. cash with we rate run Second, our accelerating strongest have the in leasing rapidly history

our undeniable $X demonstrating and pump billion are programming we're methodically across we executing progress idiosyncratic growth compound our further to finally, growth. Third, strategy levers tuck-in acquisition of executing

while discussed during as planning every We during remains the our robust, we environment. Now all outlook days playbook QX Tim and products grow across major an portfolio our resilient Q&A current as that to and zero-based our call, our any process. XX CapEx demand playbook macroeconomic per have effectively operations geographies execute established through

words, the from the guidance adjusted from our former recently & $XXX X our Tank The revised Finally, The Pump year $XXX I'll full touch division. midpoint divested contributions EBITDA Modular is over. takes quarters prior of EBITDA for guidance million, operation of full our expected Tim division. from Tank including guidance of on year Storage million. midpoint in adjusted range before our outperformance Pump offsetting the of segments In & is other and still full earnings continuing year was

and XXXX rate a that Modular operations. with Investor to Tim. Day With QX billion we're implied $XXX mix in set the EBITDA million, I'll run million revenue and the such, superior November $XXX the already the operations on continuing to which, indicates $XXX in from our our with Storage adjusted $X call million at is that, adjusted of laser-like turn team QX we EBITDA focus that along from by continuing over EBITDA As operations a adjusted

everyone. and good Page Thank of you, shows a quarter. Brad, the XX summary morning, high-level

periods. footnoted Before in, and appropriate about goal for be business we're and non-GAAP results I and we're of added the incredibly are our & for our QX excited divested the remind adjustments everyone is where expectations. the in segment Tank that and headed. Pump metrics Where as But jump The operations operations accordingly. & about those from compounding prior all reported I'll discontinued of Pump our possible as continuing of results we purposes rate is comparability, run certain predictably to Tank as back ahead transparent

growth, closed This We is year-over-year. drive across growth revenue up The accelerating -- of cash income basis QX, translating with free XX products points our the X months. supplementing growth And to of sequentially KPIs EPS of accretive tuck-in that XX% supporting economic to at achieving We lease and tuck-in EBITDA the strategy compounding profitability to predictable leasing rapidly by strong with a selling, XX%, rate X.Xx cash and on up our acquisitions reducing of into with are administrative while million stabilization sustainable adjusted margin XXXX. upward EBITDA, over general is last pressure net leasing $XX of flow of during levels. coupled quarter, X.X% year-over-year building our are organic and share value-added revenue our and growth while XXX powerful creating high-volume debt all to programmatic sequential the high-value net up XX% and acquisitions our reinvestment. with volume, our count flow margins we organic expenses in QX, for record balance reducing level leverage from continuing strategy, sheet while of support using pipeline adjusted

X QX working initiatives XX% free over per And the Return last growth flow cash of growth, triple as years. more pathways in to to invested we as drive months. XX% given to levers per invested the see concert strategy, in programmatic our billion flow multiple XX tuck-in are $X cash our basis of undeniable on than to our X over XXX and capital the points and on All return share. progress executing capital well increased next free share

scale, compounding revenue increased points the stage increased points. XX $XXX accelerating the compounder, with I basis XX% EBITDA a EBITDA few of we are quarter. expect QX in operations, are quickly what pace at adjusted margins continuing XX% can our Page we to revenue the term. think adjusted as and sets into From XXX We margin million, lays on and near for the and serial XXXX. for expansion, expanding $XXX out is compounding to million A

administrative value First, strong analytics, and QX we certain costs installation offset up a reporting we full and all in and driven with strong variable real year, seeing modular quarter in costs. front-loaded year ERP to in our a the ability other delivered. under margins sequentially and combined general with where SG&A tuck-in expenses margin year-over-year, a headwind those inflationary SG&A increases by of transportation deliveries level. logistics would said, quarter would. said and very in our were QX expenses results XXXX our are here. for than acquisition lastly, to QX, continuing optimize points support with activity $XXX quarter you At delivery execution third in which which, created logistics in more pass now actually costs, expect the selling, excluding just of pressures a Day, comp declined growth was our with discrete since at leasing million That in through transport and driver, function XXXX, strongest business now by And investments $XXX normal to more and place And activity and I belt, in gross basis the XXXX We talked stabilized time. first our we we stock approximately inflationary in-source have cost about from variable across Investor And XXX as operations, place from million we from the QX. we're our

So have XXXX, support build efficiencies, our efficient at we the in confident. opportunities all sustain been the expenditures. costs more opportunity see expansion into variable SG&A seeing driven are and see we least merger, largely free and top our quite margin function while and since our with cash in XXXX to and will which to gains or upon of results flow our We which logistics in heading capital be line are we

activities remained compounding by that Turning landed to and and additional Net grew by operating rented QX. capital and QX are elevated, storage XX% driven by year-over-year, grew in Organic modular units sequentially Page portable XX. expenditures provided primarily XX% from by cash refurbishments we predictably.

is than head storage seasonal spending in volume a into these our all that nearly of base by utilization our nearly as seasonally are demand-driven, time customer QX, XXXX slower we and strongest this since year higher That is product are immediately operating delivery capital deliveries. While being been the supporting XX,XXX this majority we're and class. delivered, modular rapidly forecasted, tapering absorbed vast we has for and that investments said, new XX% modular volumes the units storage

or capital a markets expenditures I for XXXX our cash will environment expect into isn't have into quarter at it's since million that ramp-up year. metrics commentary next and margin months This assess towards flow will the we this net normalize free we of the expenditures and we operate for the simply increased Rather, need it despite on $XXX inflect seasonal elevated the so. premature flow demand demand remain we XXXX. our reassess our each we in lower rate give to X levels I meaningfully as these of until capital the as construction fleet outlook steadily entering reflects year. QX QX to nonresidential expectation flow XXXX. drop next So cash then And fact Free free the run cash guidance, demand And have expect will enter while XXXX. QX

in base Our capital in meaningful of XX% longer-term would likely closer will that to back XXXX, case the revert year suggest of which months our XX% capital terms. dollar target approximately next last expenditures is XX for from of available reduction purposes a

cash $XXX position reduce proceeds from adjusted revolver, the business. million ABL execute strength acquisitions X.Xx which to operated an our leverage can will leverage million our X.Xx. wherever into are our of our we predictability In Tank ever reoccurring invested Turning repurchases comfortably from EBITDA, opportunities net and in stock. capacity $XXX compelling note, in to continued of CapEx, aggressively forward we in $XXX our exceptional flows compounding X of we company, available debt to to target Pump QX, The range strategy to combined and $X our within common of million I invest our is see have of to with billion the and and Page we we in over visibility of operating our and net this divestiture the & flows XX. the with lowest cash

XX, capital, priorities they business. headwind And Page obviously the through September of $XXX weighted and will have of XXXX, manageable. view capital annual XX rates approximately X.XX% course our of relative average rate though and our lays be while given proceeds. that weighted allocate over those and XX the the our out capital our over leverage-neutral running generated on achieve interest interest and capital higher rate framework strong run the at the Interest was changed demand the expenditures As our are basis our are XXXX of of cost XX% a was of with chart, allocation we rates can higher, consistent of return Investor year. target of our divestiture cash this performance laid In And than hurdle the costs a inclusive priorities capital not months $X.X capital last deploy months. at we we Day. XX are the right-hand total to out We organic that so billion last to given environment continue million. in

earlier, XXXX, target As course, I go target if of we reverting easy see to it's to that in moderates. can, demand than CapEx and mentioned back lower

we the in storage We tuck-in that from received and have Pump on modular divestiture. proceeds invested Tank million and is target $XXX which neatly the acquisitions, line aligns with regional million with & in $XXX

comparable $X economics, authorization sustainable the our compound exactly remaining months. over $XXX our our of release North Modular multiple growth. a divestiture X.X% count drive at returns better effectively billion over which opportunities industry deploy superior more greater to proceeds million back time. blended and reinvested we the share formula repurchase surplus utilized exposures is Storage growth reduced capital durations, segments America where for and last lastly, those by right the have economic This And we unit and of XX to So we diversified all into

to Turning XX. Page

midpoint. million would operations our is a adjusted of X% be second have continuing in $XXX million guidance prior guidance a & represents million the million EBITDA revenue to raised the billion our our just guidance to of hadn't of $XX to increase which to approximately full Pump $X.XX we million, This and $XXX raise If at and year. $XX to to half outperformance $X.XX continuing adjusted billion $XXX to operations our attributable million it adjusted would XXXX the segment, Tank EBITDA $XXX divested to be the We our EBITDA. for year for

by EBITDA to implying would $XXX obviously midpoints the for rate. Storage it's of and that & range suggests a So accelerated our is in North approximately and our Pump for our in seasonal which which year, the has increase divested driven really which XX% have and adjusted is of be market. XXX year, end EBITDA the activity an makes compounding fourth expected America full the Modular and offsets Tank of significantly. The this increase the margin of margin seasonal This up normal the than basis points work in million pace run more of in what normal consistent order is the And we with since storage quarter, slowdown February. sense retail demand of modular implies said a excess XX%

XXXX, in to run Heading Finally, revenue rate a we XX. Page turning mix is and superior streamlined portfolio. have a our into accelerating,

purposes likely as on QX, compounding transportation steady modestly is rental is revenues. of offset a revenue of slower revenues For seasonally total by up just sequential basis

As deliveries, costs moderate points and sequential approximately expansion $XXX the seasonal basis we up run result in which rate will slowing a the margins with margin of modular net year, XXXX. will achieving for EBITDA million variable cash enter flow free I mentioned, CapEx in XXX as with

return business. that, returns have we will the discussed you. to of I record upside of growing margins we given our by on All driving capital, With back drive of of time. Investor invested our all the hand across all over execution is deploying ago are consistent consistent track productively, key We're Day. a with which compounding at And it year and believe I'll and this the We're drivers. capital what that team, value we Brad,

Tim. Thanks,

focus This open please would strong remarks. safety our all on today XXXX of footing continued prepared Michelle, listening good XXXX. finish to you for health. concludes excited and the shift dedicated as line our wish questions. you and is I team to Our we

[Operator Instructions].

Our question come Wittmann from will Baird. with first Andrew

your are seeing Great. end what quarter in It's markets, real the not out order I the is the we either information sense intel seeing of October, book. could guys cyclical maybe spring the more better the was would of at there what you're terms some having is, get just order latest but time book where of on you're of you if or recognizing the end about wondering of helpful. some that end of season be kind kind of that having just the at

Yes, Andy, we're this is Brad. sold out. effectively I'm start Storage to that. happy

running into the that we're XX% hot in segment mentioned, season. utilization running Tim As

we got And constraint there So -- we've is all the orders handle. possibly could our the really fleet.

the the side, again, what's is today demand a with I saw think XXXX. reminder, been order On book line of in actually as very into is Modular year, prior a we -- last year, that which, heading productive strong

to So is see But that going line kind of seasonal a from is it's noted, normal which to that last grow order began to year, as book in with we by of Modular year. begin February when you next really practice. be

will Schneeberger question next come from with Our Scott Oppenheimer.

I with this the year you've and very the seasonal fuel been to demand. regard to CapEx, slowdown understand Guys, active

particularly year you forward? play about that have you we you active that yard. we How is Or bad the level, being and containers portable sounds get by might as it in to you've going here because China? many of capacity XXXX Is up high how something storage sourcing viewing February, hey, just, excess added this you curious, ports? the to But here It's as is in you as on mentioned just -- can. not on are lot how containers having get or sits if a approach just really become curious a out. capacity it sourcing just we'll again? even are from Is like thing Just container year. pick are you this you seasonal Brad, a and had sold XXXX, And it

those can XX%. don't demand month to back after this It's is the We'll Yes. heading and where higher we This for start certainly been come time We're just it and that place storage expectation Tim see and new year year. into in. at short right fleet than push duration, in okay, is in be to years. we'll We little the a historically of the is X. XXX% accordingly. Brad will do We're or next seasonal right? jump we ourselves robust utilization continue, we've the will units have peak, next My are expanding towards a in

As fleet has levels which that the the containers a all acquisitions year been through reminder, WillScot we've fleet, record all on of have the expanded significant Scott. then China, rolled from and at primarily legacy over, purchases this

quite that. in follow-up, margin the quarter. And the as a Great. D&I just impressive was Appreciate

Day, million your Just journey? you're a $XX harkening talked the optimization long-term are And Where earlier, lot to about along back you mentioned you I seeing million a, you to of opportunity. think, EBITDA as Investor logistics just objectives. $XX I upside think to that

on X could if address you you specifically, Just where are. that

right? X is things delivery across Yes, team the businesses, stable we're our and to margins of most move I'm Modular that's XX%, almost in environment, and cost across up installation Scott, think as it relates is it's cost the the Storage this and those. both Tim. per consistent And mean of I both it's the not proud about I a like

So we're side. on cost a things of the doing couple

of as are is whom can already a the of with of XX% transportation of side. gradually more in also business. Modular couple We're we and still our activity of we significant down crews We are that amount trucks third more north a acquisitions and coming did setup definitely in-source on executed but of drivers. We've moves it Modular in-sourcing party, different

which that we activity. in So is in-sourcing are another manner

side we is equation. week the than every expansion are is week We by But you margin costs approach have the out religiously, network. consolidated in something can across up. the the branch the a tell That much standardized installation at equation this up delivering that of through And pricing. cost And looking that the passing revenue of of and that by cards more coming we're clearly side obviously, that more nature general up fuel are merger. to of fuel in are costs said, and things

just So that say And would multifaceted more stream. we've I effort. it's got that really attention revenue a on

comes question with Barclays. Manav next Patnaik Our from

at Manav. what Kennedy expectations some visibility function we drivers may And context exceeded for you out of today. What ago that? have was $X laid you're of the of million half on Obviously, a book an be when a everything, the strong into year typically in results or remainder the that year year. the the at it have conservation element having and not of the order is

to from drivers. If you on can comment Investor targets just the And the other any those changes Day.

Ronan, I may this with is Tim, are and where you're we expectations of where had generally year at be kind but in start ahead. a that bit your quite muffled getting we clearly in the question, of were versus our you terms think line to we

So the I'll KPIs volume, value-added leasing just start products. price and of with fundamental

organic for line, So tuck-in acquisitions but supplemented going with the volume, in into single-digit much with low a growth Modular, very year. comparable order in year, some next

organization am value-added XXXX, expectations, So not on just have services. by we excited products pricing box. phasing today and that there. XXXX. the for value-added of products at product we of pipeline management I kind opportunity introductions product we into of in see we and expectation Ahead We're check but certainly that extremely are the the and

Brad -- still is growth in modular ahead where figure across of expectations And trying out that storage. could a volume we So there results in seeing thought and in And into expectations unit expectations, acquisition-based and forward Certainly, the for our think to there as storage starting ahead delivering we're products of needle as we're ahead move organic line VAPS have offices. we per in the and in we rollout double are say, and XXXX. with $XXX are roll board kind per well. of of month very storage VAPS value-added would we're XXXX ceiling mentioned, the I we of be. those level in Pricing, the storage to ground is where container storage in segment. I I'd think, encouraging units north already bit

free be range cash into operating we XX as net CAGR get we cash of together, the flow run well down, as put you at flow of about. cash We're And end X- into within year that most go growing as X-year year, recent this margin revenue return ranges if the Slide the investor heavy We're really, at but that range, pathways capital We've free talked eclipsed multiple to you of the we'll comfortably forth QX, million flow range my on time. EBITDA ahead into our the deck, the in look over of margin least investment we're the just range. about And rate, concerns prepared said share to I getting a we So that years. $XXX to remarks, the a no X flow free that leverage the back free X is that upper function we right? triple cash all at that's per in quarter. on range in running invested to

this board, where means well. a is than ago good. run ahead value the well on as about XXXX that is X quite driver. of and across We're And way our the a compounding thought say talked thought our eclipsing I to means faster that I'd feeling logistics already So of we're would the into rate going pace we be. at that's business year we we all

bad That's very helpful for and apologies connection the here.

what in terms downturn pricing other a from of weakness remind seeing would But just or in what not key the and metrics downturn of and you builders materialize varying and us can weakness. articulation very really levers look It strong you're much recession? softening Canada, resi that playbook. they happens form the sounds like in articulated previously and a U.S. like You've a the recession clear set

now have here And our portfolio rates spread spot public. first was VAPS in that we are XX% XXXX for -- to XX% I over QX have as believe average. it maintained higher inclusive today I disclosed with sitting that a business XXXX, of we we're the than the Look, over of that Modular we when since year, think

spot spread, a XX% our we're means we have rate to rental absolute from which If Modular maintain average and do plus So that statements, the reporting the portfolio rental average grown that maintain standpoint is rates that in those already maintained rates, in pricing financial to we just have XX% we've a achieved. all converge we've in XX% that roughly will year we the the rate level.

similar terms the a Storage in have business. We in of pricing dynamic

its our most the Storage. So know, CapEx if at lease that were down as -- today. still just you duration the and million I demand, virtue not guidance. in cash-generative XX-month coming And COVID posture, XXXX, of $XXX to does was of gives to $XXX million, think and given do $XXX an of certainly insulation. volume you a at were relatively move the a growth in quickly to the investing softening get it move extent we business And back not mode, out in doesn't -- in conservative just say that's at lot the So versus right, portfolio pushing XX-month you of really awful when by of right? million we is that current the if level and quickly up that either not side Modular business duration

repurchase stock, capital spending from significant revisit lot delever, capacity days. every is to a that we allocation capital up in acquisitions, alternatives That So this demand-driven XX and to capital start to aggressive very it's entirely more there the process quarterly. and be those allocation X and moderate flexibility frees with a with of to we business

with Alwy Faiza Bank. from comes question Deutsche next Our

Great. to sort the that to commercial I approach talked you storage about wanted about. new of talk

cross-selling what's new to are of that? early how approach? sort your part result And into the of And playing initiatives that maybe

Yes.

performance the rate in the I think volume and evident it's most both in segment. storage the

M&A, than look half expanded. at but more growth, volume is If certainly, about supported other significant growth. organic from And markets the certainly that's have year-over-year that's half you the

gaining been wins share we've than modular So before. to the no certainly. storage rate the storage through effectively We've I cross-selling, performance yet right, over seen other in global mentioned with VAPS progress

which good, very, logistics product we've Modular. got an prop. always where of the aspect in upon It's certainly you've leveraging positioning value and practices based applied And very shifted from pricing, we've So better capability there's and unique is a strong our applying best. associated

and with extend And side further this just a when customer. to realize on in a from, place going if effectively the turnkey is turnkey will. we solution above, container Modular that's lights, the to or storage for a that ready-to-work what Looking the lock, solution really we've is of a hey, box -- you delivered forward, all have we're you shelving

So maybe the well journey. we're along

see can with expansion You as which VAPS. has exclusively ahead, and DSR. it further seeing in that Storage, is excited by about X what And we X in of years we're to compounded the rate look driven really addition core

how percentage look it's improved just quite -- the that of those Great. as impressive. terms And what's SG&A curious there improvement we we XXXX, you -- -- is. think should level ahead and on dollars, Tim, had just and also to significantly that this sales a like sustainable in sequential I'm about as SG&A, of how been

Right.

QX and of starting future. I year in more step the point. had think and don't SG&A impacting a in there's significant what changes types those to last XXXX. additions of think always QX particular, I'd obviously today's And in call assumption base expect level SG&A. probably that's going We the of be a QX normal I QX inflation as using I best of

from to a So in reductions The or I largely at sequential gains right think runoff QX expenses. of now. the kind of third-party expected we're QX SG&A were good base

we do sequential both drove go of SG&A of We've opportunities, naturally coming in XXXX. duplicative we've as the As leasing change naturally also And I some as had cost And business, contractors. shed. as -- the you that's in had integration, additional time, really we can well had variable business have imagine, over side into third-party think consultants. of in what which, the out in the spend cost we've the QX. we

some were into think intentionally for we are inflationary do mitigate there substantial to place But given that opportunities there in the just business go expect put don't start pressures near we as had positioning XXXX. than XXXX, the much I to increase that we previously. So I trajectory a growth more anywhere we

Ramsey Research. Steven from Our with next comes Thompson question

think there. rent on of not with prepared to about ready are and those year? America North and on are go done units Maybe value-enhancing features from utilization are the to many on CapEx that previously How this project units projects rent

that service immediate that the way fast the based of meet that's and where capital idle general of using to roughly find nature to try We, fleet Steven, on roughly rentable days, process in rule, as in process, supply to XX% most is keep a demand. demand, forward branches' a think go our as demand rule, capital modular through allocation We isn't at our to hard we buffer that this XX-day right? try cash-efficient condition. the that the we we look This the allocation through XX-day XX Tim. we the base. over but need we next go

kind investing to buffer. that's So in -- until fine. the perfectly no just we're capital in general, been into the organically the refurbishment point allocating every to is through in because utilization it, where in gone point growing this spend It's dig The And fleet days. that capital it what up. to process need that modular that that maintain gets we that's rest that's of right? of the there's And year, you exactly so XX% XX drives the we've has refurbishment business go And business. the

buybacks still And CapEx excess follow CapEx midst year rate Helpful. cash million the the sizable the expect $XXX in clarify commentary do for Can you thought cash hitting year. enough free elevated next line with pipeline of CapEx run their you maybe and Okay. the the dollar of moderating the flow or flow, this both? with more then on free

million guidance for below Okay. so terms the year, was million this in $XXX million dollar terms, $XXX -- right? level. In I down of XXXX is So mentioned $XXX dollar kind to

year the you growth kind One of there terms in of that The X think very coming a of guideposts XXXX growth a I in moderate out of year kind can are number. XXXX was is mind. heavy So have COVID.

So those are have. guess, recent that X goalposts, we I

Now going slower periods in business. the into seasonally time these modular of are QX and QX,

get to half about order period. when backlog the QX When activity of allocating second and QX. into as business So start in stronger is going comment to capital less we outlook refurbishment see February, and refurbishment first for of back the the QX need and January seasonally that's that in modular half there we we'll XX-day the invest QX in process, the and the demand

go much cash free $XXX So very with run million in kind into that's next the line to rate year. of flow

rate EBITDA as XXXX, very Brad You've as I of of about. CapEx that talked ZIP likely kind quarters code. much already you're moderate billion taper eclipsed and the $X X And you run in for think into the next purposes

from question Jefferies. Ng next comes Our Philip with

the to given standpoint, really have of when made pitch, think, Part and get to been storage. cross-sell constrained gain you're M&A. volumes to just from there how in the opportunity merger with I kind a capacity strong really guess, you I share was do you of had there Brad, Mini, an of kind and

us how you're progress to going give forward? on that Just making the an about the opportunity on front think update and

kind friend certainly Yes, supported Phil. that's question, you growth the half M&A, as mentioned by about by the of dimensions. to what phone Thanks, on cross-selling. in been manual That's storage, is is I've all Yes. on prior if volume underpinned other And as I at the just look of organic. year-over-year half a which referred smart

be And that. What automate largest into with all is only effective, we'll the collaborating certainly WillScot instances territory next literally they projects. it's CRM look customers effective rep largest each X and but operate. been Mobile within into X, to we rep year harmonize Salesforce.com about the that we're Mini excited it's that's the So most again, of and able as and we'll storage

X probably kind X units there's around if storage ratio products to if it. inbound transactional are storage, has we our So respect And that general Day, our immediate we assumption somehow unit for or both modular a is in of at level, X X whatever an needed, right? with initiated modular to Investor that that request lead receive use mentioned unit we a it there's

So XXXX, you to we'll us, behind get we quarter, that generation, automate of be all able we'll tool to combination and in the in power really if then lead the the look of through first really leverage will.

really dividends XXXX share of grow you lever, beyond think will as to that I it's environment I in end would looking find that irrespective and us pay later market mentioned if So XXXX. begin in. my another will, ourselves that into we in let And commentary, further

chain enough if to you're supply able units need where And meet loosen to of you to? that get demand have kind

got acquire on idle had Tim for adequate this issues been side money containers Yes, fleet certainly, little several to with source and to coming. them, we've years no Sure. we've them us grow cost move able we've the bit that. more to a throughout but And as Modular mentioned,

balance a But actually cash then little And flow mean, a you. today, is deployment standpoint, a the Got it's are here. getting the through. from spot backdrop in great I coming capital great sheet murkier macro

in debt to thinking capital Tim, backdrop, how thinking comfort Brad, Any are you're more shareholders? I level your how mean you in down So be guys about cash helpful. deployment? about deals doing would versus returning this paying color

the it's Yes. cash really above. With either/or, right? this an flow, all It's not of

of think the XX:XX. it at started of you you kind dial of I clock framework, as If think a

fund all the markets is thing CapEx, we'll first do The organic the needs present. the business and

storage where are, to you're levels businesses around. immediate at spread got acquiring When on the move we trade. you've we're and tuck-in these You modular an

that. out beyond synergies then significant synergies you've commercial a turn got cost take You and or a of X

robust. balance then -- pipeline You'll do over, back the shareholders. looks done to in cut kind the that that XX ERP since We've the of long. half keep day all we'll other doing to And deals That XX that. goes

outlook. So no that in certainly, no respect with change And again, our regard. to change

Our Brent Thielman Davidson. next with question comes from D.A.

you're today? Great. is reported Brad or dilutive over wondering months the the on you've the rate increases just rental done Tim, showing how activity here XX last acquisition all

portfolio, the Tim. is I aren't It's X contributing of estimate. this in acquisitions scheme mean, the to a lot. a Brent, grand the And hard

rest core the M&A the increase maybe $X think the million If from our businesses. recent organic that just is about guidance of increase QX, you and of coming compounding is EBITDA since just

point wouldn't embedded increase a acquisition. to I So tuck-in significant from the

we the today resources have of to we no attributable by of from that's think M&A it embedded year our forward. place business margin eclipsed have going I that, now, of the been QX, You some in support virtue And the expansion margin XXXX kind rates spot to and of resulting an margin supports are a that, we've thinking powerful pressure the dilution for put in M&A some at and tailwind kind thesis increase entire have portfolio. really so beyond. back but just across where the we've that That's and and to And in And business QX today. right? you such going certainly did into

particular, take place take Okay. to look, that if away are And just the specific terms quarter of initiatives on from sort demand dynamics, in I anything comment side on asset second mean, you're the business side I wondering to want you've And putting the sort the I'm you or don't question returns in that class been here? achieve storage. of KPIs to this any levels. just in the back new you just supply in But can extraordinary. then And to of amplify able

has historically see aspect it's the in point Brent, seasonal Probably late I'd and X were that container so. really the no pricing of to, dilutive longer the the to you is quarter, starting effect which been

quarters In ago. a of fact, or shifting continuation of that X the almost ledger. started what other it's Other than it's side to the X

with question Elliott comes Stanley from next Stifel. Our

still you're I on be the seasonally storage. we're some inventory after down of period. seeing a of it of in and off seasonal to some is think different dynamic as slowing the 'XX retailers. you could not as heading Do that holiday challenges the really question a strong given seeing you utilization mentioned kind drop quick A mean where the into at

is Yes. Tim. Stanley, this

conversations I absolutely a customer would such the be historically huge they -- start the scenario Seasonal year this in long. a team those way But stayed right? store to We our needs than we're having about. orders port business not year exactly customers those a core right? is retail the of annual and sitting good necessarily middle all requirement much of And with that's So relationship the look, hits can a And the be space think would than if of larger accounts how those think a retailers side QX rather in would business getting for years. we see all to really shouldn't earlier that is longer. of the on deeper the thinking expect recurring There started with the that's conversations having rent of is okay, interesting I going seasonal. need seasonal go over typical. sector have renovation national and and transition where couple that consumer, have nonmall-based that from into a be moment they business. an the It about, that store and be seeing shock seasonal types deliveries us, we're we this kind situation be the down end our the and next

And then kind of gears. switching

about It's more You much But this of conditions talked and expectations about differently how the Pump think side? market successful even operations for forward about Europe too holding maybe any going divestiture to hear haven't Has thinking just the business. really so there. about and do of you're over up hear within it continue & you the portfolio? kind concerns asset made U.K. on quite Tank the well. we the it -- Or

and currency is local Tim. well. extremely in Yes. at look KPIs, terms business performing is Operationally, the This stated you the

opportunities So fleet in macroeconomic is happy backdrop got into pretty tougher year. we've both accommodations in very product up here. with XXXX, been have recognizing units are has activity this the going the on business, Europe the we think delivery vision I've in and growth container been the on Pricing in consistent mid-single and I certainly storage digits. rent meaningful And that

mind far it's from competitor a #X in too grow. our an CapEx and with in room over to over not fundamentally, keeping But getting there business, business incredible we're of Storage skis in that standpoint. terms So the

Our next Bank. Sean with from comes question Deutsche Wondrack

to see quarter that down net leverage in step this to Nice you X.Xx.

packet, housekeeping pro what items. of and EBITDA sorry Just and Can QX start -- in with if forma a I'm revenue 'XX? for it's us the is couple tell you

pro am forma, $XXX going of million if $XXX.X and & revenue was see that up approximately revenue. you. for of we million pull excluding that Tank XXXX let's I say Pump Sean, for was to can EBITDA

what And the forma of appreciate divestiture the us is then now pro & maintenance segment? you remind again, that. Pump Tank just can I CapEx

I Well, To we've remember, in extent business. Pump we has $XXX that stick the the replaced reinvested the & still Modular divested, and related in range. million those to proceeds Storage that Tank certainly been CapEx core the fleet. to maintenance

Right.

to You're certainly returns that. getting the support

Just bill Inflation my position doing the is to spending? also has kind what do to infrastructure itself. on infrastructure question capitalize to commercially company itself next But recent the Reduction best rolls of It with Act. into the the

a that to of unique mentioned manufacturing I that I'd both my prepared we're as supporting just example well commentary, the Sean, engineering of will, you which to chip -- with facility been and itself. to team, years respect kind to you the take as the same apply X if can we've capability, X data chips where in early specific example centers, it manufacturer chip with from servicing the very the plant point in construction a for And row.

cetera. et power, turbine, wind Solar,

those were Bill, really Reduction demand So way it about stimulus I the The Act, any mean robust further think all extend materializing. will is CHIPS Inflationary projects I already seeing. the already we're the do

at benefit to Sean, our in you from are the types going doing if So those that XX, we're industry Page with customers already mind, business all exposures, of bill. of look spending keep

project solar general in get the Manufacturing, we're the going an do We talked have from seeing and wind of the We're working they and into behalf into owner get already customer. country. is So Samsung into natural farm last utility project, those project pulled differently. who's we're about When to projects the on America customer. general projects, either the the being for a the resources, owner. anything project already of contractor any contractor energy U.S. in in or pulled that we've country like on already a directly of several types project. a about North don't quarters, the Canada, pulled across that to infrastructure Think like or any

spending pulled sectors then education, government, well. And as are in So there. that side, the we're care, certainly, institutional could benefiting from getting those anything the health on be

be than do don't in other customers, constant differently with our largest which contact really already anything we're to we have doing. So

add. helpful. actually point -- it's to it's That's to And funny then Great.

you be comment that and It on exposure about could slide, term. I of what and I homebuilders a has to Just just going there? that segment of same it your how if been developers kind kind broad is curious was and multifamily. sort on shows could at X%. that's single-family of know outlook

down Yes, moderately. it's

large already small do. there multifamily it's into acceleration track our we It's a is of what to exposure Our baked need Again, more it. homebuilders. soon outlook recovery very we and expecting not percentage and and nor do any

you much. a very I your Right. of That Thank lot makes help. sense. appreciate

We have the turn the over today's end now call. call back I reached will of Nick. to now

you, your all WillScot interest Mobile Thank you Michelle. Mini. for in Thank

additional call, you please after If questions have you. contact today's me. Thank

and gentlemen. ladies This you, conference. concludes today's Thank

now may You disconnect.