WillScot Corporation (WSC) Reports Q1 Revenues Beat; Raises FY21 Revenues Guidance

WillScot Corporation (NASDAQ: WSC) reported Q1 revenue for the quarter came in at $425.3 million versus the consensus estimate of $420.65 million.

Brad Soultz, Chief Executive Officer of WillScot Mobile Mini Holdings, commented, "our first quarter results surpassed my expectations, with solid performance across our segments. Leasing revenue and Adjusted EBITDA increased year over year on a pro forma basis, driven by strength across all of our key leasing metrics and end markets. Our NA Modular segment saw average monthly rental rate growth of 12.9% year over year, the 14th consecutive quarter of double-digit rate growth. VAPS penetration continued to progress, producing an average monthly rate per unit delivered over the last twelve months of $337, a 22.1% year over year increase and a 8.4% sequential increase. Our pricing strategy drove improvement in our other segments as well, with increases of 5.0% and 25.5% year over year in average monthly rental rate for NA Storage and UK Storage, respectively. And we saw modest unit on rent growth sequentially from December to March, which is consistent with a normal seasonal acceleration heading into Q2. In our NA Storage segment, portable storage units on rent were stable year over year, modular space units on rent increased 6.0% year over year. I’d like to thank our team for their significant progress towards key milestones that will unlock the full potential of the merger with Mobile Mini, driving shareholder value for years to come. Due to our strong performance in the first quarter and strengthening commercial KPIs, we are raising our 2021 guidance for Adjusted EBITDA to a midpoint of $705 million, our revenue midpoint to $1.79 billion, and our net capex midpoint to $210 million."

Tim Boswell, Chief Financial Officer of WillScot Mobile Mini Holdings, commented "we are seeing consistent high execution by our team both in our operating results, as well as in the progress towards our ERP migration in the second quarter of 2021. We generated $91.2 million of Free Cash Flow and a 21% Free Cash Flow Margin this quarter, which allows us to pursue multiple capital allocation priorities. We raised our capex guidance to fund the organic growth opportunities that we see in the market, which will benefit our run-rate heading into 2022. We de-levered to 3.7x, progressing towards our target of 3.0x to 3.5x by the end of the year, while refinancing $65 million of our 2025 notes and reducing our weighted average cost of debt to 4.0%. And we repurchased $82 million of common stock and warrants opportunistically. With our end markets and organic growth drivers strengthening, we are incredibly excited to progress towards our $500 million run-rate free cash flow milestone next year and continue pulling these value creation levers."

GUIDANCE:

WillScot Corporation sees FY2021 revenue of $1.75-1.83 billion, versus the consensus of $1.77 billion.

For earnings history and earnings-related data on WillScot Corporation (WSC) click here.

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