WillScot (WSC) 1 Aug 242024 Q2 Earnings call transcript

Welcome to the Second Quarter 2024 WillScot Earnings Conference Call. My name is Cherie, 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. Nick, you may begin.

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

our and harbor X Slides safe statements. contain X

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

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

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

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

I'm CEO Brad Good WillScot. Soultz, you Nick. Thanks, everyone, today. and of afternoon, thank us for joining

solid target XX, financial ago. X.X we our expectation years Slide our with were in the a within ranges X-year as delivered team X- line QX both on to that as with that results just Starting established well

continue controlling what we'll We by execution control through and those can by do deliver consistent on to and great we commitments team. then what our say

providing I the context initiative call hand Tim by to cover with in reached Before update. more and start I'll respect over results to [ backdrop current detail, strategic macro to have the additional ]

for energy, demand continued center drive and solutions. strong QX, projects These innovative modular demand manufacturing, more and experience the particularly to our immediately industrial, data Flex In namely infrastructure we for product larger in proprietary scale projects lines, sectors. our

in which our stretch demand in this XXXX, prior line outlook to expect quarters. We is beyond with well

more versus in was square sector non-residency approximately X% on rate sector managing and half our only XXXX, fewer a sensitive which as impact expectation the represents not nonresidential our is below a revenues, sequentially from reminder, storage driven construction our this other construction improvement XX% have projects, versus of hand, product On foot modular smaller and of starts and pronounced This XX% commercial the QX up accordingly. smaller-scale approximately were and second starts are construction more and sector interest are by business and represents XX% our any for QX. year we the prior down we lines. And of forecasting

that QX of up backdrop, modestly prior were Net to mixed activations modular year.

pleased activations continue We activations versus we were storage resilience prior to build than continue although more modular QX be orders storage up with portfolio. see down and our XX% through the sequentially. year, XX% of And to July.

mixed these throughout we storage than are the Importantly, good trends stable modular and while outcomes activation expected. And second in given the on rent sequential slower units quarter. were were growth the market storage backdrop,

dissipate to all substantially, owner certain, by QX duration. continue outlook driven headwinds in the fully rate, our these and and up year storage. lease performance less rate XXXX abated by penetration, continued and whilst of if in modular X% VAPS and second volume the XXXX. half balance and In Our were the enter expect volume throughout headwinds XX% underpinned the value-added to revenues average products than predictably unit simple equation times times mitigated of year-over-year X-year our case of compound strong more X% is not as And be we of we in softer to QX,

implied free and year expected maintaining a are an and XX% we we margin EBITDA cash outlook Unfortunately, flow above margins at the revenue than while half revising entered on accordingly, second trajectory midpoint. full therefore XX% lower our

of recall, live you This closed, we version the focus journey to occurred sales that turnkey which 'XX, instances us structure page locally a X This allows combining shows Now July turning year in by operation entire on merger legacy Mobile to new market leadership is into then SAP merger we into X to our combined QX after shifted a our modular across with customers the XXXX the and than harmonized serve a Slide single Mini. organized of and separate since solutions. of XX. went Less the and offering with geography. a storage our team can In that our go teams XXXX. of single salesforce.com,

upgraded service improving and our consolidated execution, all also communication. We and allow and resources our lines, better which dispatch systems, to safety while across logistics customer utilize field us product

action to each We're and we into make sense. durable improvements we We took those which are in systems these now streamlined that that to implemented beyond. support this half those savings our implement cost safely recently Such continue In operations rules processes. to reduction modernize QX and day, in in and some continue our and margins this, identify believe a to the focus meaningful assess headcount. team to on In we our employee in in will a savings. further early indirect way of XXXX XX% processes are to the result our excellence we guided plan operational Along streamline led and cases, of in that continue second the July, place, by our to model. will of which are service XXXX,

offering under Commercially, brand. WillScot we're announced this our earlier week the we consolidating that entire

for our from to to are deliver company start, We start. bring tagline is line, that time project, also for the commitment which solutions new expertise right space introduced right the the and the from right a execution our right

our with a all a celebrate innovators certainly stakeholders XX I'm will while dating and our value for drive acceleration the the also pioneers underappreciated, more come. history for that industry additional years to years. as particularly moment proud of in bit We creation to roots perhaps back of took innovation recent

time of we an This logical of outlined the line a strategy. in important step culmination the is go-to-market harmonization just and our

scale see [indiscernible] to an space our customers identity the overall check our diversified include and control backing efficiently, new and WillScot to ability an to digital [indiscernible] the funnel. and digital we're to expanded and us all customer this with with our in We're encourage new investors experience to up initiatives single we best Our I'd practices entire solution. modernize designed enhanced adding out feel direct get launched for storage as willscott.com more we other it of our from our how customer feedback particularly gives other convert customers we marketing sales to response offering the We climate customer we've complementary yourself. capabilities, portal And incorporated that experience. the self-service industries. from

quarter. turn identify prioritize developing recommend in These third-party feeding are leads opportunities, tool and well the sources tune our as One, and last into sales more recommending reps. internally already platform tools One allows leverages project solutions early the to proprietary to to our further wins Project digital bundled in as This optimize our tailored multiple data mentioned time actions results education data appropriate CRM in our Project with generated we prescriptive sectors. which gives sales are center that from us by selling and see type. the and directly investment to a manufacturing be We're project to us conversion starting and

that equally to the in customer proud experience reasons, demand reimagine for these I'm for our processes diligent front-end ensure road initiatives. map to industry. unparalleled our have team we these of their obvious we We've an important tools efforts though launch prioritized back-end drive an deliver to

of And pending Tim, brief McGrath. turning over it to finally, I'll a provide update before acquisition on our

to this both the agreed January You'll transaction, we substantial transaction. through In announced July recall with both certified second parties resoundedly extend you'll McGrath compliance FTC's review WillScot which in request year. and May, the the exciting recently of FTC's XXXX, McGrath for was nature. and XX 'XX, shareholders recall comprehensive period On in information, XX, approved September the

We continue with to FTC. the work collaboratively

As have share will we public further new the needs process to the and via discussed channels. corner, updates last we call provide the last on frequently when review in earnings over we

not benefits provide remain on excited process commenting our We FTC the be customers, otherwise we in teams, will collective continues. review shareholders that which will and our the communities this extremely about for the further operate. We transaction

that, to XXXX over in detail. QX With discuss hand I'll our more Tim results to it

the a Brad, margins, flow free stability we're XX the quarter. important revenue, soft the strategic good XXXX, evening, ROIC, cash quarters, everybody. Across you, and highlighted. metrics, EBITDA despite Page deliver summary the We're the of environment. longer-term reduce and obviously though to Thank grinding disappointed all executing is guidance possible also Brad while that in the to for initiatives result operating team shows a best high-level next seeing X

which year XXXX is the in are our contraction about setting cash business year for company's financially longer-term trough lot XXXX. predictably construction flow a us nonresidential of the yet best to talked last our targets, towards we be up footage, a commercial are nearly is over XX share over per to initiatives a compounding our that history, Brad we have in well the months, free markets $X have X-year square for of With are positioning going starts and unchanged. that after

volume continue million year, up primarily pricing to all X% year, driven forecast up Turning to which the offset versus the lower revenue versus to forecasted bit the of quarter, Page product $XXX XX. was X%, sequential versus prior for prior our although headwinds. across slower we of and due lines, than internally had volumes build leasing a was Revenue value-added by products

right you revenue Delivery quarter, versus X% and chart. still movements. in revenue storage was can due prior sales XX% the was although entirely versus installation year, were of which down prior bottom up year, fewer see the X% And to as only in

build of million margin up trucking flat utilization of modular that to was and $XXX Recall sequentially the be mix revenue on call we the favoring XX.X%. lower sequential EBITDA Adjusted QX order expected to margin a the spend with of X% fleet. activations, our work of due

half found All maintenance went drove as as also and Brad mentioned, of were system into of expected, forecasted. and And XXXX XXXX. branch higher sizable that quarter to heading enhancements efficiencies, the we realize reductions than impacted July that transportation QX, will the in in margins into live factors and IT SG&A support in cost we level of able opportunities in-sourcing those margins operating but second the offsetting following we that

longer-term we in quite as margin expansion the to guidance good about So feel the well as implicit continue the trajectory.

out sequential coming in not the margins carried as than trends of QX better a both build of these while are guidance remainder for strong the bit forward was in the revenue expected, year. Overall, of we expected, came as the and

worth out. the moving we expenses that some Before on, are had in onetime calling quarter

the Mini reconciliation largest $XX The take WillScot remaining we million on under the Mini in out of time and amortize the X-year from the the $XXX approximates broken trade of marketing trade to experience. Consolidating that initiatives to and over at market clearly our to attributed a million will due a approximately how charge EBITDA storage all really to acquisition. of them rebrand the to this in name and will see excited the rebranding is logical amplify which XXXX customer noncash allows go which it the the was we brands the announced the impairment overall as value the We time fleet appendix. going Monday brand. efforts in churn of simplify simplify this our about. the $XXX After period, to can million time. resulting Mobile You Mobile I'm noncash and forward, name us Again, over write-off, culmination

ongoing We related And the that charges, related both from expect review QX $X.XX. since and primarily of $XX minimal of initiatives. million to which EBITDA will out was share $X $XX reductions. also incurred QX incurred have lastly, of were to restructuring approximately and we our expenses expect largely resulting diluted and adjusted make of costs $XX to million cost in charges further I of earnings adjusted back in I plans acquisition, actions the continuing will adjusted QX. restructuring million, metrics, savings these million financial of $XXX we We severance in those McGrath no of we related taken income have expenses in operations QX of be and million adjusted regulatory our per

in otherwise predictable due as up Page XX% by XX. modular a Cash in by X investments XX% driven were offset on storage CapEx year-over-year, recurring estimated was as costs line payment predictably to than categories. an by operations climate the sales certain investments year-over-year to well rent that fleet less in dropped revenues. units in XX% and driven partly was and approximately a lease our These Moving underutilized continues QX, in to from are with controlled fleet, increase in year. Net where leasing highlight compounding be transaction-related revenues. flow sequentially our refurbishments tax Cash up

demand-driven As our and always, are zero-based investments process. net capital governed our by CapEx budgeting XX-day

free the during $XXX And our over XX%, cash XX last cash range generated flow million which medium-term XX% We XX% of flow of generated in months, at operating we free to cash margin a XX%. is a middle flow free the quarter. margin of the of

this we're cash diluted we getting performing counts expect is it the results environment, in as business where flow XX free $X.XX months. would the over per So last of with and share

XX. XX comfortably months to inside Page leverage QX to sequentially of X.Xx adjusted target last to from to at the maintained which net Turning We leverage is our QX debt range X.Xx. EBITDA, X.Xx

deleverage can so year choose. As by approximately turn I when noted we we per easily previously, X

comfortable are flex to we closing post acquisition our this months upwards So at and intend and XX back target then McGrath closing. level, upon again the range deleverage leverage within into

savings. to current we June, X-year senior a liquidity the note due [indiscernible]. asset-backed $X.X and used issued down revolver in to billion secured at interest We with increasing proceeds In XXXX modest pay our

floating to swaps billion outstanding. $X.XX have We fixed of

fixed average and approximately cost of floating, and is X.X% XXXX. our X% pretax June structure So XX, debt XX% as weighted is our debt of

worth next It senior notes secured of year. the June that mature noting XXXX in is

liquidity our time cost that either optimizes the we'll We the ABL our ABL, our a choosing at with in of I market so have and capital. the refinance ample expect a bond or in way in XXXXs of capacity

of also on acquisition I've our to the McGrath closes. liquidity last and XXX% financing the several of when have as calls, ample transaction committed cash we of consideration Lastly, fund discussed the

is for great and your and to So in our support. investors the bank structure thank continued capital you shape, group

shows Page has and consistent over performance the framework. framework the allocation XX broadly our last months, which XX with capital been our

the range full XXXX our million the of net over XX million, $XXX towards million $XXX $XXX to CapEx year here from trending months. up last are shown We

trend through So CapEx should organic the we the allocation as target to back towards progress year.

of of aside focused during controlled the will We acquisitions acquisitions storage as invested majority LTM our was year, that the on quarter through target over that the setting months. $XX year. line in last were The fall QX XX we million X $XXX XX% last allocation back acquisition spend in the with in million progress acquisitions climate towards McGrath, invested to in

million the Share last approximately capital be X to attractive of Last quarter repurchased count a opportunistically of long-term shares week, the XX X.X% highly the of share months. approximately we we repurchases during our our trajectory use continue over as business. consider and

Last least, not updated XXXX. Page outlook shows but XX the for

in lines. slower our more As we our we discussed KPIs relative has sequential volumes been to forecasted, commercial the the particularly prior growth in than product quarter, transactional

I think the the time, guidance time perhaps reduced only range the we during ever COVID. was last

the circumstances So [ disappointing, as is expect, this is performing nowhere although fortunately, contraction. business nonres given the are near of this as challenging. would ] The duration we

in our in that drive us commercial trough XXXX be is have operational and year, improvements and will what beyond. We have a likely durable well to best results place help results and we into will ever

levers I'm the for our that So that, is of on And advancing team the control are to our executing team. within the strategic very while priorities. many grateful long-term

see midpoint are attractive to to of expenditure fleet. reflects still the growing million Flex holding we a $X.XXX billion for we growth of although which billion At midpoint, the the expansion, the which well, adding revenue units the guidance range basis and maintaining X% with both invest. reasons and spend $XXX the opportunities the XX $XXX the outlook EBITDA, to to gradually implies adjusted guidance so billion approximately and for of adjusted to EBITDA. maintained reality we of Modular quite discussed. already for capital $X.X that of our we're We share approximately tightened points as for year margin we've confident $X.XXX year, reduced $X.X million. in volumes This refurbishment in to are revenue our We the billion up

revenue organic across products and And is all plans climate categories. tracks. fleet are [indiscernible] for both our on storage Value-added control growing

So meaningful we rates so and any in storage fleet plan. in planned are run CapEx growth never XXXX, with adding that the for into those change no in categories traditional to we those heading fleet XXXX,

some of into of rate margins in to the is should for stronger meaningfully expectations QX, sales increase growth sequentially part implies by This end sequential quarter of variation Delivery expect sequentially run and we will terms seasonal the that installation which each factors. to into to heading potential of I expand through heading XXXX, leasing on be through revenues revenue QX continue cost implemented during into were normal my in and a XXX focus. due of to with project the remainder expect always remainder In year. should QX year, based from the then the mid-single-digit basis the timing. margins year, due July, to low flat XXX initiatives the savings points into

modeling million trade and in million regulatory noncash both For per purposes, Mini $X and related the costs QX expected in to amortization and QX Mobile additional approximately approximately QX, of name. $XX note QX please of quarter

improved resilient growth, the and where long-term flows we cash lease prioritizing our I'll we've X, expansion So operational year back Equally, to view the and long-term experience. shape, weight term, of customer going processes, established. to We're can and continue the another starting X sitting backdrop, should you. iconic the it clear brand. and have here that, take We've to upside and see be August a XXXX against towards the X we market on commercial with are as In softer targets opportunity the With to record revenues of where with yet heading areas for year. Brad, is compound short X our to full it hand and we made company is improvements into durable margin all team headed. macro

for customer thank trust team for and safety our you their shareholders Thanks, their business. you focus capital. and customers you continued for to Thank to satisfaction, our with their our to Thank Tim. their on

concludes Operator, open today remarks. prepared good health. continued you you and This of all for questions? would listening safety our line the wish I please

Instructions] question [Operator the our Mulrooney line with Tim of And first Blair. from William come will

always a great things but a simplify to basis. you really lot bit, simple of color, a just on So give little just

I for think for growth the of year. guide the midpoint your full X% revenue was looking previous

if at just curious looking is midpoint. decrease you're or volumes pricing? Now at your to that X% I'm the in related outlook more

business. related is in growth the sequential is volume this XXX% It the Tim. Tim, to

QX compounds business strong majority you build base the storage compounding It's we model, sequentially the product QX. As that business was just lines. trends to forecasted, as been a QX guidance about into vast reduces really, not and reflects activation which sequential And business on QX a had as talk the nuanced. some know, is the the volume strong side that So had of the right? of volume and improving into the adjustment quite just on trends few this well. can as we by modular We've and for quarters from pretty

So do the in with the feel year we here. confident half the second of outlook

business the And getting -- business not importantly, part next headwind likely we getting Brad And next the year, get that said, where into which is in into about. comps a most is first of and as to have the time outlook the of year, is we're kind volume the of passage the half to in into XXXX. as to the a excited be sequential point to easier just pretty big going change becoming

the sequential QX fleet your products that but question in our to and pieces we moving as doing. of remainder there, are well likely the price there and part QX. of is and of continue other a like through get And a storage. mix the seasonal performing as is is to value-added contribute lot expect naturally growing storage into fleet, across we Temperature-controlled value-added products is The increases how pricing year, of

KPIs across the change So related the is bigger good volume to some just happening still and products, the sequential value-added pricing build. and things

really helpful, Okay. Yes. That's Tim.

on up pricing that following Just question.

the rate think now I further that's and question couple for now changed ground modular how that period, little curious we're recently a that spread mobile asked between reporting you've also in been structure I'm rate inflationary but LTM a in changed with hasn't units this from away that of moving today. is included. what your the Curious your quarters, average

to set level that? wanted So on I

in XX% The XX% is to Yes. Tim. the spread favorable range,

healthy, into or and So insulator close represents continues quite out as the significant be to we head tailwind XXXX. that XXXX and a business for

our the Baird. for question, next Andrew will moment One with come line of that Wittmann from and

XX% think It's of I to last I that guess XX% it of But wanted like kind guess, the the thinking of X last said, I given year-over-year decelerating starting Tim on to XX% you build question are to with the single-digit couple high the being years And modular just got amount been know out? in that's that rate of, rates obviously XX%, like on the if of I you're this we a of right it? about that, the is kind spread, about get to these want AMR kind quarters. about way to you outlook. spread AMR there. should level forecast to that spot implication

bigger products So last of a I in think the zeroing the spread to inference in is you range at value-added that of the year year. going narrowing fleet. through that tapering ground relative is terms incorporated the on were XX%-plus level in the we AMR course once Remember, really office pretty of into we of driver made good the terms upper first next growth single-digit

very to see we're earlier in neutral to in year one trends deck, level the market. like-for-like slides have the unit in of pricing of in we where products back see kind continue value-added we as the a point So gotten to modular good we you the were where ago. And in

that course products last that the So of point contributor narrowing the the I'd the to XX really bigger value-added is months of spread. to inflection through

it. Got

to what those like. have little know better in, probably I I come come starting of the business. haven't you're business what starting to Okay. about And you in, then are just orders fully for side talk portable sense to guess, although could that's want a ask know a begin I on seasonal with. just outlook probably your but bit I'm I question looking if they I is that guess specifically, of storage to the the guessing

mention, in When storage So AMR in positive the rates And be of could storage you I then last portable couple quarters. the base looks could of earlier that pretty that on enough you about can comment if how you been think that unfold? response like heard has terms your VAPS you think that. for in Tim, for consistent It that you?

was know didn't your what I expectation on one? that So

Yes.

So let's start today the is on serve. seasonal with relationships. order QX in speak it unit broadly seasonal support broader and some across just the more I'll business retail expectations because rent storage of unit is business. But rates our in on sequential and some we going it that's into of the sequential end within middle that growth all QX, markets of rent about

point, did retail certainly last know QX QX the than demand. conversations here volume having go QX But, we are on likely pickup exhausted pickup year, based We the come And we into look of we units you encouraging that's kind sequentially. in a we to the from that this seeing at certainly we pickup what see I'd as of the QX order QX your we'll business. from we're a upwards expect the see stronger sequential year. into charts right big to I last year specific probably side from XX,XXX really if of expect haven't sitting KPI didn't though, now, very retailers to a of

charts level you is the getting bit -- delivered There storage around fleet. The $XX some per was nuance unit related the month. than coming per rate and see to again, storage value-added LTM from question revenue services. second part there higher climate that is value-added a is your storage the controlled KPI on we're where of products And

contribution the spread to a products there's $XX this it's and The standard say, AMR to containers per fleet X storage offset the in that healthy We grow on, push increasing that, that's I got And that variable XX. continue of have to on control is going as of the continue we're rate Page to into mentioned into build continue combined storage to seasonal well. through mix that across pressure target going and the of as year going is then So value-added fleet. ways some Tim's of going going a And temperature storage QX the to question, longer-term as to XXXX. you've AMR. still and pretty still course unit to

in in remainder the through But growth So our is the lots business of of moving forecast year. for there. pieces storage sequential AMR the

of Instructions] that the come with line [Operator Patnaik will Barclays. Manav from and

strong think I were Ronan to for Manav. in to indicated And building sequentially. the modular on and elaborate a XX% you X%. that that activations This being commentary the first to into relation the QX What year-over-year changed the with the materials for in Tim, happy up modular activations activation up response order sequentially is backlog XX% X%. modular up those with rates activation Kennedy Brad down QX you were on I had spoke question year-over-year, to strong activations storage Tim, know indicated trends. on

I of some think of outlook remainder shed being Can the inflection what's transpired there the you light mid-single-digit activation. and for that kind on on the and activations predicated year? the the

was from kind a of it Yes, mixed Ronan, modular activation standpoint. a quarter

in of is out were pretty And modular QX. well with, heard coming was up move it aligns can't I extrapolate the and in, then June activations I was last doesn't encouraging, those think, -- for if pretty I year. isolate which year-over-year, in can't although commentary you the to X% April May, this obviously you quickly. X light going into of modular pretty July because in strongest X% month August year-over-year . were up And business off our example, So about month And just relative backlog that XXXX. just that in activations, ever

very and strong like June you kind X in a July. So in little a bounced following May, back had we've in looks of and bit dip of it April months

out being you purposes up all X X but for pretty So together X% were of months of that that's ends the -- when encouraging. of a QX, it net the change,

it Okay. X-year positive unit that that growth What What a [indiscernible] And when takes rent quarters the to given inflection? we does on that you have look inflection? can activation modular and expect like? Or it are year-over-year that cause lease duration several implications?

point QX but going certainly perspective no I in is And significant the think kind only storage of volume this from kind is headwind, what bigger year-over-year that where in not It's possible in a also year. enter you thinking. longer matter XXXX to place current you're in just my our no modular, of have

going growth significant that growth confidence the In business, the year. us And to the to of very is variables terms relative we that that's started of a sequential how record one XXXX. XXXX of that's be improvement gives another

that question, moment will next Ramsey with and for line come of from our Steven One TRG. the

To follow on Is for elaborate year. get is the year. end is record that to you activity prepared of time? do feel are now prepared how as that can fleet the Can the like closer the you happening? you you -- XXXX you already Or refurbishment to and a well on that that expectation get through growth

we are we X-week the dial business So or is business beauties have the of the of a maintenance comment lead controlling back is Steven, the And that's time, around fleet up modular greater. flexibility of that can roughly refurbishment to dollars that where the those activity timing on dial expenses. right? X specific

upwards points the of very worth business, On XX revenue. side million lease associated That's or little you've will have with that the $XXX idle it. storage refurbishment maintenance of got capacity of of

that As on the when turns. storage back rent gets capacity cycle put

see. XX-day or demand We network, zero-based those in we modular the the plan not maintenance budgeting on capital the outlook branch every that about this on the for have process and side run CapEx on that allocate the So to based dollars outlook maintenance worried based we we business. needing

those So all processes we change to XXXX. do at into not heading need

rent modular currently thinking units just of X-year X-year Helpful. Okay. stack about on gap the below stack. And between the [indiscernible] then

back get a that ], these is [ activity XXX,XXX So outcome? need that guess, closer Or potential local to first, secondly, above I And way internal get do you to in back then to initiatives closing gap? the you to come there? bigger a get XXXX can market

churning our I slow of I Brad. Steven, calls commentary would of from it's kind the it's mean, prior. back a many fleet. to fall

outcome. a is fantastic X% unit growth X% a So on rent a of in to pretty year

to XXX,XXX back probably [ ], get So pushing model XXXX. you're that out beyond here to

Oppenheimer. line and One from moment come for our that of Scott with the next will Schneeberger question,

With said of affect all. what's it for at you end? or are Because other the or question, going retail put What had this range visibility, to Tim's to won't Tim, X balance X good are but new then the -- after end low you guidance the things. specifically high year, EBITDA drivers? What the other the or you the and up X came

So you affect most going you watching are that are on low or that end? pieces to the moving what to keen end high the are --

that trajectory QX out that maintain margin half important of the coming the second seen certainly, year. the we of we've into Well, It's that.

as full confidence You get that go into And gave will very normal that very QX know basis from in into us Scott, a from to expansion taken some expansion point you QX. actions, concrete margin QX well, XXX-plus it's we've the QX.

So that's there. a driver big

kind modular flat I'd is end the of year. through volumes we've say sequentially And forecasted the of

has portfolio that's and churning how year-to-date. heroics been no frankly So the

in in activity improvements in second with order knowledge the the at confidence look retail and meaningful can we of high of QX, business got demand business And a QX there. today through progressing volume change year. storage from the the of storage real we've into degree half going no So

pretty I key in think the we're So the those midpoint. variables, at and are dialed

a Is definitively. appreciate you you I'm on follow-up. is wording use, multiyear if projects that And is to forward? versus the going on you'd large pretty -- visibility? the activity or that. persistence infrastructure to word noticed pertinent infrastructure and small step-up the second elaborate Slide strategic of the going there XX, can with Are continued written seeing demand is that And large this see? good half question. The then from I beginning the in a a onshore it's demand 'XX, project I for project

moving of in this And rate it's multiple just then small and part it's again? the is, the wrong get to the September going a a hike, need to and question second enough side? it Or of direction do Is lot things you fueled that what's it be need will more? on looking take like really you those

continues just the upside were really in States, through forecasting in those opportunities the phenomenon. Yes. We to projects, be across process the larger the larger internally source went United project all question forecast. To the that around of our a regions and

don't our larger and and way to change they be markets think coming a provide volume demand the the a or demand no, of we material in the to about how X continue So level see in terms foundational from -- we other And of it. the projects.

point. go after The full does more And half it or not to transactional need it this began. track cut, the too be XXXX, you enough the interest can rate of But rate market, right? cycle points can and tell is in the long started. starts footage XX can't nonresidential square side sensitive a And hike only in from was back of rate when benefit construction I basis contraction we second a

marginal going crystal So some think there. a merrier benefit ball of to I I have side I give the provide the our only transactional base. And more to you can customer cutting assume is think But we a don't precise to correlation. the

that Faiza our will come for from with of One Deutsche next Alwy moment and question, the Bank. line

transactional first you these might to are there's the more scale overall disadvantaged? a mean, are interest if that rates competitors? in these or or to the pressures -- cost how market finding sort curious what than Just there? have out -- sort -- wanted ask going about you are you of are some market you seeing are advantaged folks better more I'm advantage of curious maybe think lower-priced competitively because you projects you're be doing with I I projects,

Brad. in. it's Tim I'll Yes. start, and Faiza, jump can

that projects, constraints the when really we space. think cuts we I cuts modular game when probably a that that but mentioned pretty up well alleviate rate our as activations to a down these begin in starts will that we're quite see commentary, as to we lag, faring think our as a are is This modestly fact there's to no in with respect provide indication in the my really are good change outlook despite to further a is that rate the right? mean, prepared there's right, And simple large begin, as other go upside bit ahead. think earlier the of . I I fact commentary, well I as nonresi

to last Faiza, this over about be I'd targeting bit fair that got to or there's way transactions customer some the making of And We're is There we've side time transactional we there. targeting fair those we technology X of customer portal. now. channels, for only right market converting Ultimately, And e-commerce the in transactions, reason the quarters we're is a area a of the simpler add we've no amount use is we're thing the using capabilities experience. a what that container service single-wide that customers add digital them. exactly of enhancements talked can't digital modest can't those to efficiently market. no reason to a vision our as end spending

to in the Great. mentioned headcount. And then indirect up I reduction result you follow would on cost-cutting plan wanted a XX% that in

is So some realize -- to expect you there savings there are year. that this

and -- so, those? be the what might next if quantify for So can then you impact year? And

we last second One result talked reductions Brad of head that platform was volume. I'd And And categories. would processes. we've course the based the to technology the all few be into that Yes, in time direct a on put Tim. underlying population the look indirect years Faiza, count then X normal And this that is business the over the made enhancements the about. be would the at

million June, run We taking million. in to is I'd XXXX. the about recognized the benefit we in full annualized the $X So that in full severance go heading July, benefit we of benefit we're think expect starts QX with into and those $XX in those QX being you of build get year QX. as into to rate actions actions about realized

is done, realized but that's business. sitting synergy meaningful plans other here no So been the today. a in it That's and X

for that line Jefferies. the moment will Ng of next question, and our Philip come with from One

and Tim, that's year? I a again a how the units the suspect a given starts on for a give churns in you next being of us been comment. few level I years. think every because on possibility years, is, last unless I X give being your word starts, it's to down there trough on down units use XXXX just rent tough on to pretty flat rent few some average have unit predict? year My And heard to nonres take a on are expect is going you [indiscernible] just times. a you Isn't inflect why confidence on or portfolio rent color that question

footage a nonres in square Yes, to Phil, contraction square where it is peak. about peak right, footage the has. trough XX% been off relative We've X-year also to

the where of start right? And year, So the that, in prior we've the The is has continues the has portfolio modular versus the do scenarios we that. kind performed And to up year vastly that storage end portfolio with outperformed see through activity right? line seen of frankly, year. that activation

the improvement inflect. the returning a return return The you've as improvement portfolio which, the And right? other meaningful contracts, caused the a to more volume, portfolio equipment equation a piece side to of period the got rent activation given of volume slightly on of right? is in they So the the unit contracts of and to favorable persist, equation, if side the equation,

year. progress outlook that's update the towards giving XXXX. the that as the through So the we'll what's us And we end of

you seasonal is gives Tim, in Okay. heard correctly, side things us That's meaningful if half units little or helpful. perspective some I expecting for that? little inflection more the just maybe that then a on How give in second a uptick much that of And on storage. you're what's a of more confidence, driving you retail

But a turn because longer a characterize causing a QX retail uptick I QX rentals larger retail is the QX. it's sequential primarily how into shy from QX seasonal into anticipate I'd away is us bit conversations it. those pickup those Say are term. lot of from into that from generally to seasonal

modular. kind you for a rates, on little things been for AMR how Just it's of of the what's about on give perspective things? were AMR? quarters? side storage are spread spot last flat that? kind few the on And you of the side think for versus of about us to your thinking if I some Because insights delivery XXXX And at just How you look of growth, lastly, Okay. share storage

side the business, Yes, pieces within although spread you're are of a moving mid-single-digit at of kind the of on a storage lot there. there

and the XXXX. mix improvements services a through AMR progress that gave few there we heading are year I'm expecting the for guy through as a QX. is of takes temperature-controlled sequentially into and going portfolio we that through significant there we a what guidance to the progress there. good to growing progress the sequential year to AMR, of we should we QX in And question add think purposes The growth guy Value-added with storage expect year products a as is puts is I quite storage rate So XXXX. prior we into as into as and from that's progress and good run XXXX,

So we're that and continues to spot be something behind in meaningful a bright way. investing a

standard have lower It out rates testing competitive is with We there. containers. a highly been market

U.S. to ] So on side. targeted C [ we that are doing tests

into that's got as a guy the So the And then bad go you've QX. we contribution probably progress through as you year. seasonal

net expansion is causing mix go expect the QX it's of sequential those as which So we to all of things, QX. us to from

XXXX, positive AMR into do the year here guys good on side? be then to you And have

temperature-controlled more in to products and are powerful in tailwinds tailwinds absolutely going value-added at be XXXX. storage think least I those X of

moment the question, that Morgan next come Angel from will and line of for our Castillo One with Stanley.

conversation the to on around Just more maybe follow wanted up little bit a pricing.

regular you into markets. pretty well you your tend pretty kind in Just be of on do a and customers to your checking

terms So you're of sensitivity. seeing in what price curious just

from sensitivity on markets? spot for the You just talked right of -- the in customers sensitivity of interest rate across your more you of general, price about end are But products. kind rate, now different transactional the what terms in hearing

in can for across of Tim rate, Brad, that, doing been and we've line except testing to volume steady aggressive continuing more with in more is broad elasticity where products, see spot take the good we with across portfolio in jump and sense a frequent again balance the being This improvement which and rates but in mentioned, the portfolio, in. expectations. volume the performing all price say, Yes. broadly conventional I'd for can storage, we're Tim we're

think guess understand just I like maybe value of volume. us focused versus your And typically bit, I on a help strategy -- little being more

is versus volume the the Just of kind pricing? how much focused what's of magnitude kind might be any storage incremental that be So that would helpful. side? just more you And the on of entirely testing

for with value, in I but sell we discounting to last environment not always right? Yes. we're on we've obviously think the more frequently. mentioned rate So approach is VAPS all pleased storage for ton the Tim of there's benefit start mentioned, very as And you layer really will. call, I alongside rates return. standard the if container, here We're a that testing wider the this is trade volume, kind doing we're to a of a upside provide great still our achieving, And mean here allowed bit for financial we that. as

with Our next line question will Wondrack come of Bank. Sean Deutsche from the

maybe than do would And the you was maybe competitors than the this and to curious, been M&A last as scale guys there than that, tuck-in does you, think years given more your within your that lot a few be at it's sort whether they bit multiples, or you larger are of the protection under that attractive I any ability that? markets able maybe over sort to being helpful. that seeing? you've of smaller or regions of to increase a build about the when little Very enter follow-up business, you are a may something pressure what

And generally the solutions. of in been quarters I'd What over new to our expanding activity the markets M&A has portfolio point in. we're last geographically we be notice to space you'll more need biased that into to that

those great we storage outcomes as and Tim for great just can -- mentioned, because customers, and than more service growth opportunities providing So our and modular. are,

is then a To geographies. expanded greenfield the of that color already. into couple with then capability of we've metropolitan most acquisition years, great lines, a a provide where acquired another a blast-resistant couple over those new The new on in number via those [ of span QX product our and major via last more storage ]. Clear we've last in the and same we of majority platform and little added Temperature-controlled vast really areas year, one

over as with next X platforms X those potential are lot upside very to look into we a nascent still So the of years.

to that's over last nuance in change and strategy, the -- the probably happened the that's tuck-in So only years. X-plus

I'm any back Mr. over I queue further like now showing the to for remarks. Girardi to at Nick no this turn in would time. closing questions call the

Thank interest for you WillScot. your Cherie. in Thanks, all

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

program. for today's concludes participating. Thank you This all

You may now disconnect.