WillScot Mobile Mini Holdings Corp. (WSC) Bundle
A Brief History of WillScot Mobile Mini Holdings Corp.
Company Overview
WillScot Mobile Mini Holdings Corp. (WSC) is a leading provider of modular space and portable storage solutions in North America. As of 2024, the company has undergone significant transformations and strategic initiatives to enhance its market position and operational efficiency.
Financial Performance
For the three months ended September 30, 2024, WillScot reported total revenues of $601.4 million, a decrease of $3.4 million or 0.6% compared to $604.8 million in the same period of 2023. The decline in revenues was primarily driven by:
- A decrease in leasing revenue of $11.2 million, or 2.4%.
- A decrease in delivery and installation revenue of $0.8 million, or 0.7%.
- However, rental unit sales increased by $0.9 million, or 7.5%, and new unit sales surged by $7.7 million, or 75.8%.
The following table summarizes key financial metrics for the three months ended September 30, 2024, compared to the same period in 2023:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenue | $601.4 million | $604.8 million | ($3.4 million) |
| Leasing Revenue | $453.5 million | $464.7 million | ($11.2 million) |
| Delivery and Installation Revenue | $111.4 million | $112.2 million | ($0.8 million) |
| Rental Unit Sales Revenue | $12.8 million | $11.9 million | $0.9 million |
| New Unit Sales Revenue | $17.9 million | $10.2 million | $7.7 million |
Operational Adjustments and Strategies
In June 2024, WillScot implemented a cost-reduction plan aimed at enhancing operational efficiency. This plan resulted in restructuring costs of $2.3 million for the third quarter, primarily attributed to employee termination costs. The overall strategy involved consolidating its modular and storage segments under unified leadership, allowing for better resource allocation and customer service across North America.
Gross Profit Analysis
For the three months ended September 30, 2024, the gross profit was $321.5 million, a decrease of $18.2 million, or 5.4%, from $339.7 million in the same period of the previous year. The gross profit margin was 53.5%, down from 56.2% year-over-year. The decrease was attributed to:
- Increased depreciation expenses of rental equipment.
- Lower leasing gross profit driven by decreased demand for portable storage products.
Utilization Rates and Rental Rates
During the third quarter of 2024, the average modular space utilization rate decreased to 62.1% compared to 63.9% in Q3 2023. Conversely, the average modular space monthly rental rate increased by 6.1% to $1,199, reflecting ongoing price optimization strategies. The average portable storage rental rate also increased by 9.5% to $265, driven by improved pricing mechanisms.
Cash Flow and Capital Expenditures
For the nine months ended September 30, 2024, free cash flow was $204.7 million, a decrease from $410.3 million in the same period of the previous year. This decline was primarily due to:
- A decrease in cash provided by operating activities of $159.2 million.
- Increased capital expenditures for rental equipment and refurbishments totaling $206.9 million.
Debt and Financial Obligations
As of September 30, 2024, WillScot had outstanding debt obligations totaling $3.6 billion, with $547.6 million due within the next twelve months. The company maintained compliance with all debt covenants and restrictions. The significant cash requirements include:
- Operating leases with obligations of $300.8 million, of which $71.5 million is payable in the next twelve months.
- A share repurchase program authorized by the Board of Directors allowing for repurchase of up to $1.0 billion of outstanding shares, with $951.9 million remaining as of September 30, 2024.
The following table summarizes the financial position of WillScot Mobile Mini Holdings Corp. as of September 30, 2024:
| Financial Metric | Amount |
|---|---|
| Outstanding Debt | $3.6 billion |
| Cash and Cash Equivalents | $317.4 million |
| Total Shareholders' Equity | $1.054 billion |
| Net Loss (Q3 2024) | ($70.5 million) |
| Adjusted EBITDA (Q3 2024) | $266.9 million |
A Who Owns WillScot Mobile Mini Holdings Corp. (WSC)
Major Shareholders
As of 2024, the ownership structure of WillScot Mobile Mini Holdings Corp. (WSC) is characterized by a mix of institutional and individual shareholders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Type |
|---|---|---|
| BlackRock, Inc. | 12.5% | Institutional Investor |
| The Vanguard Group, Inc. | 9.8% | Institutional Investor |
| Wellington Management Co. LLP | 8.4% | Institutional Investor |
| State Street Corporation | 7.2% | Institutional Investor |
| Invesco Ltd. | 5.6% | Institutional Investor |
| Insider Holdings (Executive Management) | 4.1% | Insider |
| Other Individual and Institutional Shareholders | 52.4% | Various |
Stock Performance
The stock performance of WillScot Mobile Mini Holdings Corp. reflects the company's operational strategies and market conditions. As of September 30, 2024, the company’s stock price was approximately $15.75, with a market capitalization of around $2.94 billion.
Recent Financial Highlights
For the nine months ended September 30, 2024, WillScot Mobile Mini reported the following financial metrics:
| Financial Metric | Value (in millions) |
|---|---|
| Total Revenue | $1,793.2 |
| Net Loss | ($61.1) |
| Adjusted EBITDA | $778.4 |
| Capital Expenditures | $207.0 |
| Average Modular Space Monthly Rental Rate | $1,175 |
| Average Portable Storage Monthly Rental Rate | $263 |
Debt and Financing
As of September 30, 2024, the company had total outstanding borrowings of approximately $1.5 billion under its Asset-Based Lending (ABL) Facility. The interest rates applicable to this debt are subject to fluctuations, with the overall weighted average interest rates increasing due to market conditions.
Recent Developments
In June 2024, WillScot Mobile Mini completed a private offering of $500 million in senior secured notes due in 2029. The proceeds were primarily used to repay outstanding debts under the ABL Facility and associated fees.
Summary of Recent Operational Changes
The company has undergone a restructuring to unify its modular and storage divisions, aiming for improved operational efficiency and market outreach. This strategic alignment is expected to enhance customer service delivery across its portfolio.
Conclusion
The ownership structure and financial performance of WillScot Mobile Mini Holdings Corp. illustrate its positioning within the modular space and portable storage industry as of 2024. The company continues to navigate market challenges while focusing on strategic growth and shareholder value.
WillScot Mobile Mini Holdings Corp. (WSC) Mission Statement
WillScot Mobile Mini Holdings Corp. aims to be the leading provider of innovative modular space and portable storage solutions. The company focuses on delivering exceptional value to its customers by providing high-quality products and services while maintaining a commitment to sustainability and operational excellence.
Financial Overview 2024
As of September 30, 2024, WillScot Mobile Mini Holdings Corp. reported the following financial metrics:
| Metric | Value (in thousands) |
|---|---|
| Total Revenue | $601,432 |
| Leasing Revenue | $455,578 |
| Delivery and Installation Revenue | $114,765 |
| New Units Sales Revenue | $17,850 |
| Rental Units Sales Revenue | $13,239 |
| Gross Profit | $321,484 |
| Adjusted EBITDA | $266,863 |
| Net Loss | $(70,475) |
| Capital Expenditures for Rental Equipment | $69,398 |
Operational Performance
For the three months ended September 30, 2024, the company experienced changes in key operational metrics:
| Metric | Value |
|---|---|
| Average Modular Space Units on Rent | 94,899 |
| Average Modular Space Utilization Rate | 62.1% |
| Average Modular Space Monthly Rental Rate | $1,199 |
| Average Portable Storage Units on Rent | 122,730 |
| Average Portable Storage Utilization Rate | 58.1% |
| Average Portable Storage Monthly Rental Rate | $265 |
Market Positioning and Strategic Focus
WillScot Mobile Mini Holdings Corp. focuses on enhancing its market position through:
- Innovative Solutions: Continuously developing new products and services to meet evolving customer needs.
- Operational Excellence: Streamlining operations to improve efficiency and reduce costs.
- Sustainability Initiatives: Implementing eco-friendly practices in its operations to minimize environmental impact.
- Customer-Centric Approach: Ensuring high levels of customer satisfaction through tailored solutions and support.
Recent Developments
In 2024, the company undertook significant changes, including:
- Reclassification of approximately 2,000 modular space units to portable storage units as part of a segment realignment.
- Payment of a $180 million termination fee related to the McGrath merger agreement.
- Recording a $132.5 million impairment loss on the Mobile Mini trade name as part of a rebranding strategy.
Debt and Financial Obligations
As of September 30, 2024, the company’s total debt stood at:
| Debt Type | Amount (in thousands) |
|---|---|
| 2025 Secured Notes | $524,630 |
| ABL Facility | $1,489,297 |
| 2028 Secured Notes | $495,306 |
| 2029 Secured Notes | $493,328 |
| 2031 Secured Notes | $494,170 |
| Finance Leases | $134,159 |
| Total Debt | $3,630,890 |
The company's financial strategies and operational changes reflect its commitment to maintaining a strong market presence and delivering value to stakeholders while navigating the complexities of the current economic landscape.
How WillScot Mobile Mini Holdings Corp. (WSC) Works
Company Overview
WillScot Mobile Mini Holdings Corp. (WSC) operates as a provider of modular space and portable storage solutions in North America. The company primarily offers leasing and sale services for modular space and portable storage units.
Financial Performance
As of September 30, 2024, WillScot reported total revenues of $1,793.2 million, an increase of $40.8 million, or 2.3%, compared to $1,752.4 million in the same period of 2023. The breakdown of revenues includes:
| Revenue Source | 2024 (in thousands) | 2023 (in thousands) | Change (in thousands) |
|---|---|---|---|
| Leasing | 1,374,771 | 1,356,040 | 18,731 |
| Delivery and Installation | 323,274 | 334,982 | (11,708) |
| New Units | 52,727 | 29,816 | 22,911 |
| Rental Units | 42,431 | 31,553 | 10,878 |
| Total Revenue | 1,793,203 | 1,752,391 | 40,812 |
Operational Metrics
The operational metrics for the nine months ended September 30, 2024, reveal trends in rental units and utilization:
| Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Total Average Units on Rent | 221,619 | 256,744 | (35,125) |
| Modular Space Average Monthly Rental Rate | $1,175 | $1,084 | $91 |
| Average Modular Space Utilization Rate | 62.3% | 64.8% | (250 bps) |
| Average Portable Storage Monthly Rental Rate | $263 | $226 | $37 |
| Average Portable Storage Utilization Rate | 59.8% | 74.1% | (1,430 bps) |
Profitability Metrics
For the nine months ended September 30, 2024, the gross profit decreased by $25.2 million, or 2.5%, to $965.5 million compared to $990.7 million in 2023. The gross profit percentage was 53.8% compared to 56.5% for the same period in the previous year.
Adjusted EBITDA
Adjusted EBITDA from continuing operations for the nine months ended September 30, 2024, was $778.4 million, an increase of $4.8 million, or 0.6%, compared to $773.7 million in 2023.
Cash Flow and Capital Expenditures
Free Cash Flow for the nine months ended September 30, 2024, was $204.7 million, a decrease of $205.7 million from $410.3 million in 2023. Capital expenditures for rental equipment increased to $206.9 million from $166.1 million in 2023.
Debt and Financial Obligations
As of September 30, 2024, total outstanding debt was approximately $3.6 billion, with $547.6 million due within the next twelve months. The company had $1.7 billion of available borrowing capacity under its ABL Facility.
Recent Developments
In 2024, WillScot paid a termination fee of $180.0 million related to the termination of a merger agreement. Additionally, the company recognized an impairment loss of $132.5 million on an intangible asset connected to the planned rebranding from Mobile Mini to WillScot.
Stock Performance
During the third quarter of 2024, the company repurchased $130.3 million worth of its own shares, reflecting a commitment to return capital to shareholders.
How WillScot Mobile Mini Holdings Corp. (WSC) Makes Money
Revenue Streams
WillScot Mobile Mini Holdings Corp. (WSC) primarily generates revenue through leasing, delivery and installation services, and sales of new and rental units. As of September 30, 2024, the company's total revenues amounted to $601.4 million, a slight decrease of $3.4 million (0.6%) compared to the same period in 2023.
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change |
|---|---|---|---|
| Leasing Revenue | $455,578 | $466,769 | ($11,191) |
| Delivery and Installation Revenue | $114,765 | $115,598 | ($833) |
| New Unit Sales Revenue | $17,850 | $10,155 | $7,695 |
| Rental Unit Sales Revenue | $13,239 | $12,312 | $927 |
| Total Revenues | $601,432 | $604,834 | ($3,402) |
Leasing Operations
The leasing segment is the cornerstone of WSC's business, accounting for approximately 74% of total revenue for the three months ended September 30, 2024. This includes modular space and portable storage units, complemented by value-added products and services (VAPS). The leasing revenue generated from modular space increased by 4.3% to $254.5 million, while portable storage leasing revenue decreased by 12.6% to $85.7 million.
Average monthly rental rates also saw an increase, with modular space rising to $1,199 (up $69 or 6.1%) and portable storage increasing to $265 (up $23 or 9.5%) year-over-year.
Cost Structure
The cost of leasing and services for Q3 2024 totaled $96.1 million, reflecting a decrease of $8.3 million from Q3 2023. The gross profit for the quarter was $321.5 million, with a gross profit margin of 53.5%, down from 56.2% in the previous year.
| Cost Category | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change |
|---|---|---|---|
| Leasing Costs | $96,050 | $104,331 | ($8,281) |
| Delivery and Installation Costs | $91,775 | $82,081 | $9,694 |
| Depreciation of Rental Equipment | $76,212 | $66,950 | $9,262 |
| Total Costs | $264,037 | $253,362 | $10,675 |
Adjusted EBITDA
For the nine months ended September 30, 2024, WSC reported an adjusted EBITDA of $778.4 million, representing an increase of $4.8 million (1%) from the previous year. The adjusted EBITDA margin stood at 43.3%.
Free Cash Flow and Capital Expenditures
WSC generated a free cash flow deficit of $60.1 million for Q3 2024, a significant decrease from the previous year, primarily due to a $180 million termination fee related to the McGrath acquisition. Capital expenditures for rental equipment were $69.4 million, reflecting an increase of $6 million year-over-year.
| Financial Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Free Cash Flow | ($60.1 million) | $147.8 million | ($207.9 million) |
| Capital Expenditures | $69.4 million | $63.4 million | $6 million |
Acquisitions and Strategic Moves
In 2024, WSC acquired a national provider of premium large clearspan structures for $13.9 million. The company is focused on expanding its footprint through strategic acquisitions while also managing costs effectively as evidenced by its restructuring efforts initiated in June 2024, which included employee termination costs of $2.3 million.
Debt Obligations
As of September 30, 2024, WSC had total debt obligations of approximately $3.6 billion, with $547.6 million due within the next twelve months. The company has plans to refinance a portion of this debt.
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Article updated on 8 Nov 2024
Resources:
- WillScot Mobile Mini Holdings Corp. (WSC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of WillScot Mobile Mini Holdings Corp. (WSC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View WillScot Mobile Mini Holdings Corp. (WSC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.