WillScot (WSC) 2 Nov 232023 Q3 Earnings call transcript

Welcome to the Third Quarter 2023 WillScot Mobile Mini Earnings Conference Call. My name is Tanya, and I will be your operator for today's 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. Mike, you may begin.

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

X statement. safe harbor our contains Slide

We will are and risks the uncertainties, of which statements forward-looking our presentation session. control. Q&A of our be a operations and variety making beyond Business are during and subject to many

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

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

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

company on levels return adjusted cash margins, Slide free XX, starting are Now our delivering capital our revenue, performance. record EBITDA, our history. invested at and financial flow is on in highest

Our and into well consistent as generation by flow idiosyncratic execution profile cash are team by the that portfolio. driven we've our our many levers built as return strong

ways very which macro in win our financial makes performance We any multiple predictable. have to environment,

the We our execution nearly over almost last Over to repurchase deliver And of by over compound X.X% cash represents to last formula believe allocation shareholders using combination share XX reliable the authorization, economic consistent $X our months and we've long-term the years. X continued time. we've last a the XX XX% flow months, by capital our operational over returns generated count share free and of per share. reduced our

to thesis points. [ about my company, X when in investing comes think our Now main ] I down

represents in in consistently we've and very portfolio First, our are harvesting billion XXXX Keep it, reloading still whilst ever-expanding largely this portfolio. portfolio. following our a Among initially growth over CRM VAPS half predictable within of it. $XXX recall Meanwhile, our by and portfolio been we've million. that million to billion grown And strongly highlight about $X billion changes growth is we defined later, lever control. or rates $X we late pleased will delivery it that EBITDA recent modular VAPS inflect our that of most $XXX the implemented this mind levels in other Tim $X and points I was see you'll of idiosyncratic all

And confident with investments Second, coming milestone our execute surpass disciplined free while in returns approach into we given cash of flow, years. free third, we're inorganic shareholders. cash flow visibility which capital to accretive, and $X returning our the can drives allocation our to of next capital organic we'll excess that

business. we October, customers of of flexible we in us provider large to even more allow our leader we that across months. the of leasing clearspan structures, out spaces in cold offering QX, extended in And end storage acquisitions our American will Speaking premium our which and to all investments In the offer solutions almost larger acquired markets. a exciting recent now of in and several platform are with future, North space built the

our chain customers, total While provide solution more only high-value America. customers. even and opportunities our our creating these solutions addressable capabilities provider extensions of spectrum market, businesses are serve of as rapidly North customers and the of are -- growing space that we current Both in segments simply new the customers supply to space total can our expand in our and

will -- our highlights investments forward excited It these few our leveraging additional about saying, in businesses flight. past growth levers, platforms the be both grow significant our without second we levers in years. potential platform, the of platforms beyond of over which core value-added very $X technology operational excited competencies that We I'm meaningful the and products, of given expect these look we're idiosyncratic and pricing addition And above excellence in that capabilities Day. To goes and end, our share by to M&A. that these upcoming billion And are already scalability these XXXX. will talking provide detail our we'll to March to in Investor holding Investor for growth Day the greater of the

accelerating Our the company our of set has outperformed Investor all towards last Day. in we or milestones is

In have high have on metrics. We we of pretty key our growth our trajectory. of milestones March, we'll in next levers. billion aforementioned our describe obvious, upside confidence $X growth It's many in

over which year guidance on suggests return this above For target thought XX% margin. the XX% the example, range. we operating XX% report. of we the well operating this months, range last midpoint our sustainability also our is plan high issuing Coinciding on to in at late XX% reasonable Investor was EBITDA capital XX% XXXX. XX will at that inaugural with Day, invested to adjusted XX.X% is the our of end Similarly,

X% in on into in stable our plays during strengths picture on largely markets. slower. shift briefly a market to conversion environment Altogether, Storage Modular unchanged activity end rent Now has the larger relative The on segment dropped has mix year-over-year, quoting our a we a is from units competitive touching up scale to And quarter while October. by nonresidential modular project from assumptions, segment worse. activations modular increase bit XXXX. through bit the starts storage X% is The remained expectations. QX paints remained this standpoint. before to a just better the although bit segment favoring the beginning units our performing modular The industrial approximately as added a rent QX. segment is look

strong about beyond. and I our are details creativity XXXX New York reiterate me XX and for a let foundation, job out diligence of Tim. with for when quality, trajectory. in how months those the they even that, are opportunities there I'll forward value look in as March. With We We're XXXX to over closing by so Finally, business a on more our you made generation growth hand last am the and in of it spent horizon team. we the excited to sharing our next fun many That's thinking so

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

financial in of as are our continues to environment. performing perform as this expected business approach record at The we levels KPIs XXXX. All

strong streams performance up EBITDA during points driven was Our discipline. pricing margin discipline, Adjusted growing financial the continued quarter across excellent was revenue penetration, cost basis margin by XXX year-over-year. VAPS all continued performance and

cash trend expansion months. in on cash We QX, XX margin and over . last the and supported flow cost by of management free longer-term million $XXX investments. track our free So $XXX with million technology initiatives our remains generated flow of

leasing on within October at $X.XX per the to up are our free of XX we which rates repurchases X.X%, is Investor longer-term here. Page approximately and than driven the organic, at of pricing lower $XX approximately return more continue XX, pricing includes acquisitions was our driven represents as in by And capital last ways the months, We this with free revenues million months, heading cash the some over that XX importantly, and our and seen down share X% doubled in and on partly XX% believe last lays our value-added of With years. increase to and team invested benchmark. over we space As by looks VAPS almost of growth revenue months. recent we $X leadership representing any capital shareholders, adjusted flow by over revenues. cash the XX that new highly to to transportation And pipeline quarter. was last to the further consistent some economic the $XXX we well offering. And committed. We and EBITDA we we Revenue of Day increased has penetration acquisitions more XX% per frame XX discovering out business, for last remain of and Of into the over last group you've count leasing products, the XX% tuck-in share, shareholders of see tuck-in QX, by XX our million year-over-year, upside X committed share over in Return above for invested our the flow long-term the that from eclipse metric. track accretive the X.X% a offset up reinvest the last in with months. XX sales extensions capital time milestone which offset are volume was closed roughly XXXX. revenues

quite unchanged, with year-over-year. monthly the balanced. Pricing expected. modular remains rates QX rates up So what algorithm And the growth units were year-over-year up average on is quarter. than units better portable in runway XX% slightly storage XX% The we our average in on was

and backdrop, segment So the quite seen disciplined about pricing across demanded we haven't either that. despite any we're being weakness softer

in rate see over will There's we form $XXX portfolio, we mark-to-market in realize across tailwind on Just a convergence spot next spreads focusing the the incremental of pricing. approximately the from years. revenue X unit which the million

So for XX%. between is the remains of excluding average products. powerful our portfolio a the over the into spread delivered this XXXX. for storage XX%, including very spread In and deliveries, units the heading segment, XX us value-added last the Modular months seasonal over lever over units, remains And

portfolio environment and targets. been So the quarter. million Products spot and and in absolute level that another modular growth across there's converge in containers the offices be the the strong tailwind with to $XXX all mark-to-market in increases of in milestones for space the if tailwind and longer-term million rate to established $XXX penetration with comfortable Products powerful to Value-Added -- opportunity those pricing, categories and a continues we're approximately total we for when across both we implications with there change Similar quite ground XXXX. Value-Added storage is storage, no a we

storage. and were rent in expected on slightly than weaker better slightly we for modular Volumes

overall, to far trajectory year. Shifting so end our delivery year we the what So of volumes. expected margins. in revenue strongest is was QX the line to for quarter leasing the with

costs year-over-year million sequentially continue pricing so driving see slight from we That points quarter. increased into our expect to margin up sequential revenue are a as QX supporting margins from So interest streams line. Overall, guidance. basis across points gross increasing And up year-over-year by of costs, income last and input were to basis XXX the favorable compression margin anticipated midpoint our points basis said, XXXX, all EBITDA margins margins which stabilized higher leasing despite to QX, continue XXX we to and the divergence to relative costs. at we increased $X of net were in bottom operations continuing XX.X%, over on up XXX adjusted year-over-year

will business head margins the that a expect for I bright into So XXXX. spot remain as we

on Moving XX. Page to

moderating healthy CapEx net of which standpoint in net remain to at expenditures to cash product see maintenance seasonality our expect cash build steadily that atypical operating to flow We QX, in support cash embedded will inflation as continue XX% based increased and levels, XXXX bit I detail million to with and over with Net last recent more a from increasing flows will year-over-year we from into I order QX, to a capital is XX% flow discussed XX% from XX growth to on and XX%. continue in margin expect we months increase Free demand operating some that cash and call. investments QX down expansions. note, to year-over-year investments sequentially our balance of drivers. related very activities $XXX efficiencies free the range benefit the approximately target work growth XX% flow to on inside fleet our

operating when while by at is higher deleverage to Turning QX last easily cadence finished to Leverage a to tuck-in sequentially for choose. to comfortably of X.Xx approximately leverage range debt lower X advantage so which EBITDA of months X.Xx increased maintaining level X.Xx. fund Page year to XX We net We we valuations. repurchase turn our share adjusted inside a of steady per can acquisitions take XX.

see deleverage the on as whether So the environment. operating we'll we set as that not decide here or from we opportunity well based

the During to we of acquisitions. million revolver ] $XXX which notes X.XXX% a and [ we completed secured pay tuck-in quarter, down finance the senior offering asset-backed used at our

and relationships, an our return. of strength getting and customers outstanding group We our your incredibly the support that our bond risk-adjusted repeat you are know the market. We grateful in appreciate for value are bank

As pretax of average interest our approximately September X.X%. rate XX, weighted is

XX% fixed Our cash approximately interest floating, is XX% is $XXX annualized million target which approximates our our approximately and and mix. debt structure

of We ample regardless to ABL $X.X of our our gives allocation fund have us priorities which liquidity in approximately flexibility capital conditions. revolver, macroeconomic billion

inclusive choosing, in any capacity a The and costs last capital have performance on months, over XXXX last refinance allocation XX the will so depending over interest notes flexible and to divestitures. months. balance XX our shows the the abundant framework in ABL leverage-neutral at do sheet capital position, strong, billion XX of the and our We and of great with our to We optimize our time capital on $X.X requirements. of is we liquidity. Page a basis generated

These excited economics our XXX base their adding QX, last allocated in alluded global well in portfolio, manufacturing million great quarter, in business And scale our to and our more as capital which I and them are scratching work to about. another with businesses Northwest. we existing with storage that in can partners with categories. As these platform we're the a for transaction closed clearspan modular cold are searching acquisitions heads $XXX super compelling invested as customer in we at October, leasing Pacific

excellence value pricing, solutions WillScot them better. our We are family. This network our are is and will financial support team that Scale of the our and Mini and we welcome well capital. course, create team name how bolt-on exponentially the specifics for across M&A of these partner, operations make excited to our to with and products, to and competencies these these we'll, to Day. And Investor is profitably scale defer new Mobile new scale apply members we're our the our even core expect our shareholders quite to we value-added human and and and new as customers excited platforms I the as the upcoming game, members. and of

QX, for shows year. tightened that to we account and ranges are Page Lastly, increased to of in X the Brad, adjusted before that the EBITDA adjusted our we current the turning guidance. revenue EBITDA acquisitions midpoint We the it quarters closed for and through XX our given range XXXX

QX. Our slightly EBITDA in business is midpoint stronger we prior performing to the with mentioned margins as

of bit unchanged operating call, Our a expected, effectively our the modular a KPIs from margin within free all process. levels Together, storage normal better, quarterly storage heading are profitability for QX XXXX, pricing weaker, than for of though would expansion assumptions approximately XXXX. year error slightly million $XXX XXX margin around suggests volumes slightly the forecasting midpoint volumes the are and points record flow in basis which of approximately of into both cash reflect better

to sequential storage the perhaps sequentially us leasing and continue in expanding I levels, increases increase also plus offset EBITDA and progression to As in steady timing core and with revenue expect rentals sequential progress that we QX sequential year gets elongated will from in partly total installation delivery midpoint year, its not with margins last the by to although business revenues, Adjusted the declines guidance. sequential QX, prior normal recent given growth just contribution of of seasonal acquisition to the revenues. EBITDA

XXXX, of convergence XXXX strong run together XX year. to another provide supportive rate close will out again growth obvious leasing ahead profitability year, rate levels as to we we next points are growth market record Looking percentage that XXXX. of as in is of support VAPS And we're we head and revenue headed which into tailwinds, approximately conditions. longer-term in irrespective results and suggest margin our for have our

growth and confidence high idiosyncratic the cold and have we XXXX. incremental as our billion value at $X excited to opportunities as storage in levers we're in March discuss in long-term creation and see for our Day We our that Investor outlook next well opportunities these clearspan, of

So with to you. it that, hand I'll Brad, back

the you our continued for work of to Operator, would and thank health. This commitments. as to you listening and continued wish continued prepared please for you And our remarks. Tim. you, on good with for hard questions. to team's deliver customers their their our I trust capital, always, open line today our safety concludes all our our Thank for to your thank employees support. you Thank shareholders you

question again, Our Baird. from will Wittmann And Instructions] our question from first Wittmann Andy first come of Baird. Andy come of will [Operator

question, we if don't Andy, just can't we hear And go you you're next on why on. the to please.

our from come of next will Seth And question Wells. Weber

quarter would like give Tim, just Can margin. wanted It quarter on expansion of more a reaccelerate margin why why down basis. back the about on fourth go next year? -- sounds flattish, comments a that your for And year-over-year to again to your I maybe little there? flat on one of then just detail there -- kind going you to would bit last what's

only difference also the that. retail storage plays volumes flowing are seasonal think into on year-over-year, Seth, QX would X,XXX have last transportation that Yes, transportation the be of I year. seasonal storage volumes versus And timing the significant XXXX been and would and down circa the into and rent units

We're would that. sequential to nice year. primary the more the last had really seeing volumes you same QX nothing as it's build a not That's QX, contributor from degree in into there. expect, So than we storage

just retail hearing that talk in how just about gotten you about 'XX the should of you your Can Or maybe year? happen XXXX particular? segment year then this for that? next pushed that that Are angle. just have the be about And some anything in that sticking they'll on confidence versus projects we thinking

it The how is get quite can that a XXXX, going I it any could as And into business it worse that the of starting was see than year. quickly. saying don't don't just see type I not risk recover it I'm and flippantly. this Yes. is point

for the in larger timing some contractors year. standpoint. direct retailers of exactly And seen little with some work into very business us a opportunity local soft direct cases, going remodel in cases, on with This be recurring a then retailers, and with other who announcements was have that know It's kind kind a next will from next basis. the of Seth, positive view soon and You and as going the to us. of year. magnitude a that But into demand CapEx implications an I store from

for kind get a picture clear the to of where up to across aggregate channels have both demand that of shapes we XXXX. of So those

of Scott question Co. & next come Schneeberger Oppenheimer from our will And

I'll think LTM my on I the delivered rate. question focus first VAPS

in If since What of we to sense you the you switch how we and ala-carte recap trend seen forward seemingly the of back want back. quarter? you trends can that just to bundled number a bundled August, expect the made get then to have for since were should kind I August. just saw going you

Yes. we positively on inflected post in mentioned changes in and about spoke that we really prepared call. implemented I mid-August or strongly remarks, last that pretty my it's alluded our to Scott, those as

math roll on the LTM inflect it to with can quite but And LTM next you're the early that. you an pleased year into probably encouraging. So before see signs do you as for basis, looking are through,

sizable, For certainly how my since forward new back them and in that XXXX, seen to hearing interesting addressable at grow. sound follow-up, your acquisitions, big what they can these the about the Investor Day and largest look target for market we've do and merger they those

are the growth you're sounds how was it versus the well. speak and growth a organic? ] there it like you're delivering closet could [ looks be a the just hey, about to still And certainly, business is But reason their concern increased sense, want growth, bit, thinking a in get bit So if to but great. you beyond? that there acquisitions wondering here I mean, I Just I EBITDA acquisitive think organic the out running might some and solid because organic of

my fluctuate and in revenue, delivery focused and then back larger, right? the contribution at acquiring QX just got is increase X.Xx period-to-period businesses, loss. And XX% strip lease then by Tim. into by those the contribution volume based out multiple about that transportation drivers. is other lease of acquisitions, of when while of million no driven If that month those mentioned we're this this to pricing offset on remarks. Scott, dissect you that Because $XX Value-Added if like Products, primarily lease maybe QX. lease and approximately will out kind revenue, prepared we sales, line increase of leading installation to from and surprise, a typically assume That's kind But some revenue on year-over-year strip Yes, right? And if lease inorganic we a we're got organic on up you to is. revenue, think organic. I you the we that's and in start in revenue look made acquisitions I and And we in think can QX what the

stay on I'm that So mix magnitude in if the in mix terms deployed, with organic, very actually range And inorganic shouldn't happy enterprise that this acquisitions of the quarter. organic based really much. in of we're really tuck-in the value the inorganic doing, we change

of will William And our next Blair. be question coming Tim Mulrooney from

that acquisitions quarter? in Tim, directly. and that revenue helpful. just a you on much more question completed want the build to in months How I the do bit to ask XX was little EBITDA expect fourth last it to last and contribute

see, the XX the quarter, in In fourth last let's months Tim.

Just was trying hold can contribute think out, to due figure curious is M&A? to raise in how that guidance organic? much how much much to we okay, How so M&A of was you Just numbers? to due going just those that on

to an I that's an business of the performing the one, If about we the standpoint, midpoint easy it just EBITDA is billion. remarks, from prior Well said $X.XX prepared do Tim. core in

that the QX. of is And increase guidance at midpoint the by in entire so $X.X the acquisitions would about say driven million I

Perfect.

And quarter. the XX% Okay. rates, Modular, in third to the we from bit it XX% decelerate a saw second in the rental quarter average the little then

in much due other how that of slowdown like a due to rate or curious is to much VAPs of Just and spot factors might other that things. how be increases

at of that on And roughly contribution terms been least It's value-added the trajectory, in between the mix Tim. products the flat metric. pricing unit

frankly, that don't a here So or meaningful. to I magnitude percentage of be consider changes of there, that point really

Our coming Research of next Group. be Steven Thompson question Ramsey will from

on for Brian actually It's Steven. Biros

much investment full your potential on with First time these acquired seem just on any par that? just needed up to attractive in and for is Can their to and core the adjacencies. get recently maybe companies line to how touch be you reach

is at a precisely magnitude this I'm the answer it intents. going of one That to the going quantify answer, I'm Day. timing more to differently, we bit investments is can of the Tim. Investor little and and

right? better as And the as You or fleet to these the M&A both of other can we that as And behind than more can through organically inorganic unit happy that. use than any portfolio. in are opportunities we're supplement bolt-on are invest category well there to good such, economics assume categories.

some in won't expenditure right well have these broad they're attractive. that a as invest in at $XXX of million has certainly first expectations around with March you assume we the think that next quite now, is And relatively overall office here think probably more as organic are refurbishments. good to terms and can recovers. We'll the we in least point that Sitting there. think as meaningful modular into of together. the still behind believe ground that's CapEx place capital number And get as next to large such, as as we right? storage utilization each I quite we'll as categories be range of I to get coming investing half on plans into of year, that going still a year these fleet centering But growth we'll the be again, precise categories as out in of year, as be a investing potential Value-Added level these our Products. category just center, data I And

plans behind and teams to the intend putting growth we we them. are as those So invest together fully speak,

on thinking XX% stuff how all? a pricing around guess, I ago? some think on versus you storage. just mid-XXs up the utilization you second, if at Understood. earlier entering And -- shaping the maybe call, retail that how Can season I mentioned conversations, the the does change you expand here, but -- just year is on

stop rent seasonal last also And Pricing conversation which quite a of early recall from quarter out in full is year, have earlier last went you Brad. than number is we is normal. a mentioned starting on storage down units changed hasn't This for lot. they year. the full Tim June, like

as up certainly that in behind call, terms X mentioned timing ago -- but as X,XXX on below normal kind we the quarter's prior in units it's were year of we're and last out, perspective, a sit in about more from it -- And of it's So in shaped we I rent line rate here today, year. roughly with where category. started

next Faiza Alwy. come will from Our question

of Modular ask seems in that's to because relative how think in about wanted really not some to business Storage. Storage to a feels slowdown the versus I you're Modular seeing seeing be impacting that you picking macro activity it like the you're and up trends

So of dynamics there. understand the us some just help

Faiza, start, color. I this more like additional market is businesses. provide different. the I'll They're just exposures the any think X Tim. about Brad, mean, to end than

retail I difference volume #X think point X we the And segment. the between of to death at that the Storage in performance is beat the this the exposure segments.

are now, look strong think it you was correlate as new business the modular net If year storage it, if roughly up I effectively actually about evenly to for the activity business X new you orders, year-over-year the caveat, And outlast right the mean, measured about seeing be the at if is business this improvements at generate you at net the well, down footage, the is footage segments. Sitting sold on with business, business, storage which volume order that we orders. look us. distributed of mean equipment double-digits was I that actually as are pretty required. the increases look net quite year-over-year although see nonresidential way they'll quoting here exciting new impact storage starts, modular year-over-year. the harder year, square all square so to across we in closely right, And will most and

have still being Confidence most different very you pretty business interesting Survey. in indicators year, quoting of level, months. the north it end now right the Contractors indicators going are at leading That's look market going the end actually are a of business activity into year. in and Builders our into Associated the So next probably backlogs contractor that our encouraging you healthy like And X as

and growth over employment growth months. projecting contractors the got next X You've

get no the any there is to indicators then next objective So comment outlook have us to are there not And end worse. concerned year. my the going retail that about going market kind earlier into Seth, of

So in it can only really XXXX. better get

our on of that us is year going base upside next a stable some -- is all volumes. outlook into case this So pretty storage with has the

starts only against is double-digits, extremely The But while these this on XXXX. non-resi are a I tough is platform absolute great are mentioned, leading working Yes, historical to So extremely down still metric, the that robust robust, to are it's any Brad. levels would and still by build thing comps in right? we XXXX. absolute add are as levels Tim into

allocation. wanted to follow I And on capital up Great.

interesting devoted more of size it have relates of more deals. acquisitions again your what of some sort allocation priorities acquisitions anticipate you Should this we So lay to capital capital of as to these done and the at point? just some out

enterprise Cold everything The priorities So course pinpoint exactly X the A&M change terms per we've done the cadence tuck-in that years, was Storage last we've pipeline. of in doing right very pretty the the and else composition of which on targets X any mix X X magnitude the last of our think that transaction. September, that's as right? difficult, are about those for platform the has pipeline, not much over have the in between to mix August the And I don't in And years. transacting as we timing to real range, only did any the million Yes. larger in expect. and value the Really, that of we that's of that It's if we're magnitude quarter, been the sub-$XXX transaction been tuck-in know, or and in we've the is you just changed. XXX-plus been see in X where

can think organic long of and shareholders I capital to reduction be refurbishments. CapEx why the The add it. will we're the fleet months. here over surplus seen XX% is term, just need our allocation. And leverage-neutral into deploy Page capital and and which add XX our the as X% target XX%. see will we superb sitting be to count That accretive about use refer still is in framework, the a tuck-ins, would we I overall ample capital of have to back in last the another do going described. period-to-period in fluctuate we VAPS those and of the on that's XX today, capital to terms And highly a a continue In based demand-driven. share about It deck. will just

Our question open. from your Baird. Andy, line is Again, Wittmann comes Andy next of

muted. be may You

Okay.

Moving forward, One moment.

Philip question Ng will of coming be next Jefferies. from Our

you Maggie conversions expect in I the kind Phil. that to out, about I flow that what's a the just Brad, year-over-year, through still remarks, but a is on out greater customer? was wanted driving just little think you Can X% what's have you and decision by about there? range. up softer. going Is that? Can been Is prepared This to you start pricing for quoting talk talk lag. of activity modular mentioned for of that timing that on in

labor the Yes. primarily I it's have think driven general slower, Conversions been by constraints, and backlogs just at contractors.

digging Okay. a to this storage more And then category. in little cold solutions

there's is a storage? deals going this end still curious there or the see there? and existing category in base space that kind Modular range tuck-in in be is to you size or where with is M&A How strategy markets. much And that overlap on of this what Just chunkier-sized your customer

is Tim. those and think quite the we've actually that the the other this in categories. modular similar bolt-ons And I'll of question. been Maggie, to executing with second storage are start your I nature

So our fits this kind within of strategy. squarely

equipment off and Storage dropping operationally operationally. I'll America, we no are We it, up category commercially complementary segment. both both build -- different in inorganically. North best in there in and of of different, terms the interesting Modular and really organically opportunities both start the the to have have than a capabilities very picking no the delivering, nature is because and and already the It's platform requires in maintaining, this

were of then construction base. it we as I'll And you the for is existing our us and think equipment because largely relevant outside customer just easy end this we that to network can to the execute, this rerenting renting branch point very that market. some existing customer the time, have. leveraging A&M's actually one we note were So at largest in sectors about being

a customers chain. cosmetics can categories. many certain or we've within manufacturing chain category think base. distribution of and need that just be go in lot for to temperature. that a are materials that those different that foodservice we supply over any into have. at food, about about There Any a been We're things talking manufacturing and supply kept retail in certain releasing of current the processes It's our customer not You the like historically customers Certainly, applications the pharmaceutical years. nodes within

Although not with the full force of our sales resources behind it.

complements opportunity. opportunity. the really time, a and platform, has opportunities. inorganic pricing excited we're value-added and together this incredibly There products a definitely pleased be come team about will far. over multiple with how so how organic existing There's So the

Manave Barclays. will our of And next from come Patnaik question

an over This Manave. guidance reshoring, a there of the in whole how starting guys, as are infrastructure fiscal for demand if volume? seeing Can I update on assumptions and the the for you're as the please potentially or what investment, demand you you're from trends was of is megaprojects, program new programs from infrastructure. seeing in contemplated Ronan there the in what then and terms terms on renewable to manufacturing such starts latest and on that Kennedy comp of your you that for ask kind

complex shift obviously more office between implies non-resi next alluded a we're is that are for about Tim. is don't lot And out the the commercial kind a non-resi generally [ into down. warehousing footage We embedded you And square forecasts this smaller they're speaking. prevailing flattish. in that ] for at outlook of think year, if I'd seeing meaningful of construction nonresidential situations you Ronan, there. credence a and say of mix mix activity, forecast kind our that But towards pretty look put projects, shift being larger, it's to.

based track opportunities ultimate probably competitive in really say standpoint, where square best prevalence sweet can't can And single see magnitude the on and source, spot we that's that, every but opportunities the we're that of footage area funding our we and project that Here, shift happening. a from positioned. of larger the absolutely we is mix

activity tailwinds we And XXXX. into year-over-year. if penetration if Products about Brad about as up $XX very terms sit tailwinds. going mentioned, right of The to XXXX how not combined the environment. increase non-res we XXXX, be But XX%, talked up give we going I XX% just square construction we major now. very, is healthy is in versus -- million this of we're footage calibration a levels. where pricing in and that Products That's year, you assuming type over nonresidential in about Storage of should Value-Added recovering. a that overall, So up in starts stay some stable revenue 'XX are have mean, briefly the segment to backdrop that Value-Added right, Value-Added just Products XXXX, exceed outstanding. with and Modular at

pocket. in traction products. space So value-added seeing performing always Margins pipeline we're and the all well. across back have tuck-in And we categories good are our very M&A

That's very that to But helpful. to had question talk -- a et SG&A kind of it's And of XQ. kind Can a was looking think workflow, can I you drivers, forward, about follow-up cetera? I fourth the there, leverage the of margins and to then quarter puts new margins. alluded ability improve think a whether more you logistic and on previously about a you specifics level takes back-office talk the -- margins,

organic start all if we're really from, is the lease the growth coming where side, And pricing The of Value-Added it's above. it's Products. you on is revenue the thing here great and

going be to naturally margins. to accretive you're So

coming If variables. from your growth revenue organic X those is

levers, margins the convergence of comes cost couple those that just even reductions of size from in products days, portfolios As as these, given not the a but and the are churn value-added you price time, over tuck-ins over know, also time. so these different much accretive to

input year go a we If divergence we're rental our that of XX enjoying favorable and said track stabilization refurbishments and rates about gross growth you costs goods that flat modular rental a that shoot of into now basket for been obvious that's at has I've just a almost margin, a look now for, months. on basket pricing material of

So that's of margins. to going be supportive

single there optimization that CRM, any transportation in is that now XXXX the which as a I the on allows of single X for embed think ultimately They've really all margins. some last Field quoting Service highlight but been year not route out storage back-office for products assuming we're in those even we single assumption to lead and of this platform capabilities, invoicing I'm and for a do further things next this opportunity years. roll improvement my and point. processes. consolidation I Lightning time there subsequently quote, can like at in the wouldn't And modular over

to line margin cost line So I the argument Ronan can -- margin and P&L, in almost an expansion. any for go or to find

Our Deutsche from be will next Sean Wondrack Bank. question coming of

at traditional a look these When percentage your maybe fungible of a sort of on rental portion fleet what both is I aggregate sort projects? basis, mega of and fleet across take that

it. all It's Sean. Shoot, of

It's all of it.

project when taking and the into over complex really of Mega these in opportunities. scale projects -- that large they But could could and projects, for project projects the you're the is subcontractors contractor core the to that mega be many have multiple taking core talking year fungibility single-wides. containers, thing other to no the often and the of you cases, fleet general going for nice likely no about subcontractors course those project. modular will opportunities, trades the off limit a be and to on is that's primary leading large complexes the of or modular get there's the years. types we're of larger X-plus of multiple be And be those There's the

at percentage fleet interesting. that flex you that time? point? what migrated say That's over would And of is Has your offering this

migrating. time, our where the we're that category expect modular the buying I on fleet in the there. right? recent units quarter, do think only mix Flex I XX% direction does were is for stock of over we're the over very fleet. deliveries is I just the off ballpark, most top more of It units And the of think circa just it And my X,XXX And total fleet in know head, migrate fleet slowly side. accounting I

and growing a is to it projects. of larger So fleet modular the very mix those conducive

expect been that that on you helpful. very more in there infrastructure of we've another only [indiscernible], just sort that Also bit to out of That's ramp Great. marginal Do kind your markets? Is the funds of year? released. up been a what seeing you're a note, amount next really hearing have

it's we've seen and CHIPS stimulus. to Yes. without And year. our uniquely regard Act, capitalize outlook throughout these to happening good with infrastructure we're the mega mean, to those. business, projects federal that's without It's then regard because on consistent I positioned

XXXX starts That's stimulus So event, likely. a really to when flow. federal

think longer-term further to megaproject. with those respect I it's just tailwinds

then at When step to. go And refi Or current bonds to have great. them? the would Would to this them I would That's answer or you ] to notes? willing to par? down question before X and prior you repaying expect [ free waiting these you Tim, for these be maturity you to degree be let for want you, XXXX the repay feel last

a we've Right. Like the got ABL. higher said remarks, And prepared ABL $X.X billion in I actually now, is the priced my in bit right than of capacity the XXXXs.

I just into optimization from XXXXs standpoint, ] a cost lean we pure any -- the leading them the outstanding, [ So refinance leaving interest can time. towards at and

But as is that capital are of urgency above have, themselves. we do where X%. long my uses they other as what is absolutely variable other rates present as the no we Now stay and benchmark reassess mind, there opportunities in

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

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

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

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

may disconnect. now You