NASDAQ$WSC

WillScot Mobile Mini Holdings Corp. · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

WillScot Mobile Mini's Q1 2023 performance was driven by strong revenue growth, Adjusted EBITDA increase, and free cash flow generation, leading to an improved 2023 outlook.

WillScot Mobile Mini reported a strong first quarter in 2023, with a 25% increase in revenue to $565 million and a 47% increase in Adjusted EBITDA to $247 million. The company's free cash flow reached $103 million, representing an 18% margin. These results have led to an improved outlook for 2023.

  • Revenue increased by 25% to $565 million, and income from continuing operations increased by 96% to $76 million year-over-year.
  • Adjusted EBITDA Margin from continuing operations expanded by 650 basis points year-over-year to 43.7%.
  • Free Cash Flow increased by 88% year-over-year to $103 million, representing a Free Cash Flow Margin of 18%.
  • The company divested its UK Storage Solutions segment for $418 million and de-levered to 3.0x Net Debt to Adjusted EBITDA.

Headline financials

Total Revenue

$565M

Previous: $509M+11.1%
EPS (adj)

$0.36

Previous: $0.22+63.6%
Capital Expenditures

-$6.74M

Previous: -$10.5M+35.7%
Free Cash Flow

$204M

Previous: $40.7M+401.7%
Net Income

$211M

Previous: $51.2M+312.1%
Operating Income

$152M

Previous: $97.9M+54.9%
Gross Profit

$323M

Previous: $267M+21.1%
Cash & Equivalents

$15.9M

Previous: $11.3M+40.6%
Total Assets

$5.61B

Previous: $5.86B-4.2%
Stock-Based Comp

$8.15M

Previous: $6.4M+27.4%

Revenue & EPS history

WillScot Mobile Mini · Revenue · Quarterly

$565M

Q1 2023+11.1%vs Q1 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

WillScot Mobile Mini · $565M total across 4 segments · Q1 2023

  • Modular space leasing
    $440M+11.9%
  • Delivery and installation
    $107M+6.3%
  • New unit sales
    $10.7M+61.5%
  • Rental unit sales
    $8.23M-6.2%

Forward guidance

WillScot Mobile Mini increased its Adjusted EBITDA guidance range to $1,025 - $1,075 million and reduced its Net Capex range to $250 - $300 million for 2023.

Tailwinds

  • Leasing revenue run-rate will be up approximately 10 to 15% year-over-year as we head into 2024.
  • Adjusted EBITDA margins have expanded.
  • Free Cash Flow margins have expanded.
  • ROIC have expanded.
  • Expect to maintain or exceed $80 million rate of inorganic reinvestment through the remainder of the year.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.3%

Avg return

Earnings day

-0.9%

Avg return

5 days after

-0.6%

Avg return

30 days after

43%

17 / 40 earnings

Positive

+10.4%

Q2 2020

Best reaction

-15.4%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.2%+11.2%+12.5%
Q4 2025+3.0%-1.1%-23.0%
Q3 2025-1.4%-5.6%-10.9%
Q1 2025+6.5%+3.4%+5.2%
Q4 2024-8.8%-12.1%-23.1%
Q3 2024-15.4%-5.9%-2.4%
Q2 2024-13.4%-15.4%-6.0%
Q1 2024+2.0%+7.0%+7.7%
Q4 2023-2.9%-3.7%-6.9%
Q3 2023-10.0%-9.7%+8.0%
Q2 2023-12.1%-11.8%-15.1%
Q1 2023+4.7%+4.8%+3.8%
Q4 2022-5.1%-3.1%-13.0%
Q3 2022+5.2%+6.9%+12.6%
Q2 2022+5.9%+7.0%+3.8%
Q1 2022+2.2%-0.3%+3.9%
Q4 2021+4.0%-4.1%+10.5%
Q3 2021+4.1%+8.7%+13.4%
Q2 2021+1.2%-0.7%+3.7%
Q1 2021-2.7%-5.2%-3.6%
Q4 2020+0.4%-1.5%-0.9%
Q3 2020+9.5%+14.3%+17.0%
Q2 2020+10.4%+10.7%+7.8%
Q1 2020-5.7%-7.5%+14.5%
Q4 2019-5.9%-16.5%-45.3%
Q3 2019-0.2%+1.3%+8.4%
Q2 2019-2.9%-11.7%-12.4%
Q1 2019+6.5%+1.5%+0.1%
Q4 2018+7.0%+5.3%+14.7%
Q3 2018+6.4%+1.2%-21.5%
Q2 2018-2.7%-1.5%+4.9%
Q1 2018-1.2%-0.8%-5.9%
Q2 2017-1.5%-1.1%-1.1%
Q3 2017+0.0%-1.0%+14.4%
Q1 2017+0.0%+0.5%+0.2%
Q2 2016+0.0%+0.5%+0.5%
Q4 2016+0.0%+0.5%+0.5%
Q3 2016-0.5%+0.0%+0.0%
Q4 2015+0.0%
Q3 2015-0.3%

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