Events recovery drives growth for WillScot Mobile Mini
By Belinda Smart11 August 2021
US rental company WillScot Mobile Mini Holdings, which specialises in flexible work spaces and portable storage, is in recovery mode following Covid-19 as rentals pick up spurred by the resumption of the events sector.
The Phoenix head-quartered, Nasdaq listed company assumed its current name following the merger on July 1, 2020, of Williams Scotsman with Mobile Mini to become WillScot Mobile Mini Holdings Corp.
For the company’s second quarter 2021 results following the merger, it has expanded its reporting segments from two to four.
The North America Modular segment aligns with the WillScot legacy business prior to the Merger and the North America Storage, UK Storage and Tank and Pump segments align with the Mobile Mini segments prior to the merger.
Highlights of the results included total revenues of $461.1 million up 79.5% on $204.2 million the previous corresponding period, driven by the addition of Mobile Mini’s revenues to the results and by increased core leasing revenues in the NA Modular segment.
Modular space unit deliveries in NA Modular increased by 12%. Portable storage and modular space unit deliveries in NA Storage increased 42%, which is in line with 2019 delivery levels.
The company’s adjusted EBITDA of $175.5 million was up 80.0% or $78.0 million year over year, driven by the addition of Mobile Mini to its results.
The company also generated $82.1 million of free cash flow, an increase of $43.1 million or 110% relative the same period last year.
Brad Soultz, Chief Executive Officer of WillScot Mobile Mini Holdings, said, the company’s diversified offer meant it was “positioned for growth through a powerful combination of internal initiatives and end market strength.”
“In our NA Modular segment, units on rent stabilised sequentially, as deliveries across our end markets ramped. Historical pricing trends accelerated at a record pace, with a 19.7% year over year increase in average monthly rental rate, underpinned by increases in core pricing and VAPS penetration and augmented by the return of shorter duration special events as COVID restrictions relaxed relative to last year.”
Tim Boswell, Chief Financial Officer of WillScot Mobile Mini Holdings, said, “in the second quarter, we saw improvement across virtually every financial and operational metric in our business.
“Cash generation remains robust, with $82.1 million in free cash flow in the quarter and a 20% free cash flow margin in the twelve months since the merger closed, despite cash costs from our integration efforts over that period and the fact that we are only just beginning to realise synergies from the Mobile Mini merger.”
WillScot will host an investor day in New York on November 8, 2021. Further details will be provided at a later date.