WillScot Mobile Mini (WSC) - 2024 Q4 - Annual Results

Financial Performance - Generated revenue of $603 million in Q4 2024, with a gross profit margin of 55.8% and diluted earnings per share of $0.48[5] - Full year 2024 revenue reached $2,396 million, with Adjusted EBITDA of $1,063 million and an Adjusted EBITDA margin of 44.4%[5] - Total revenues for Q4 2024 were $602.5 million, a decrease of 1.4% compared to $612.4 million in Q4 2023[20] - Gross profit for the year ended December 31, 2024, was $1.3 billion, down 2.4% from $1.33 billion in 2023[20] - Operating income for Q4 2024 was $174.4 million, slightly down from $177.2 million in Q4 2023[20] - Net income for the year ended December 31, 2024, was $28.1 million, a significant decrease from $476.5 million in 2023[20] - Adjusted EBITDA for the year ended December 31, 2024, was $1,063,160, slightly up from $1,061,465 in 2023[42] - Adjusted EBITDA from continuing operations for Q4 2024 was $284,712 thousand, slightly down from $287,802 thousand in Q4 2023, resulting in an Adjusted EBITDA Margin of 47.3% compared to 47.0% in the previous year[32] Cash Flow and Dividends - Adjusted Free Cash Flow for Q4 2024 was $137 million, representing a margin of 22.7%[5] - The company initiated a quarterly cash dividend program of $0.07 per share, with a long-term focus on increasing the dividend payment[5] - Adjusted Free Cash Flow is calculated as net cash from operating activities minus capital expenditures, indicating cash generation performance[12] - Adjusted Free Cash Flow for Q4 2024 was $136,830 thousand, down from $166,280 thousand in Q4 2023, resulting in an Adjusted Free Cash Flow Margin of 22.7% compared to 27.2%[37] Debt and Capital Expenditures - Total debt as of December 31, 2024, was $3,708 million, with a leverage ratio of 3.5x based on last 12 months Adjusted EBITDA[5] - Long-term debt increased to $3.68 billion in 2024 from $3.54 billion in 2023[22] - Net CAPEX for Q4 2024 was $(55,359) thousand, compared to $(53,042) thousand in Q4 2023, indicating increased capital expenditures[39] - The company reported a total debt of $3,708,100 thousand as of December 31, 2024[33] Operational Efficiency - The company achieved a Return on Invested Capital (ROIC) of 16.7% over the last 12 months[5] - WillScot's Adjusted EBITDA from continuing operations is a key non-GAAP financial measure that reflects net income adjusted for interest, taxes, depreciation, and non-cash items[12] - The company defines Adjusted EBITDA Margin from continuing operations as Adjusted EBITDA divided by revenue, providing insight into operational efficiency[12] - The company emphasizes the importance of Adjusted Free Cash Flow Margin as a measure of cash generation relative to revenue[12] - WillScot's ability to acquire and integrate new assets is a critical factor for achieving planned synergies and growth[16] - The company is focused on expanding its Adjusted EBITDA margin, which is essential for long-term profitability[16] Market Presence and Future Outlook - The company operates approximately 260 branch locations across the United States, Canada, and Mexico, highlighting its extensive market presence[15] - WillScot's forward-looking statements include expectations for growth in cash flow and higher returns on invested capital, indicating a positive outlook[16] - For FY 2025, the company projects revenue between $2,275 million and $2,475 million, and Adjusted EBITDA between $1,000 million and $1,090 million[5] - The company plans to host a conference call on February 20, 2025, to discuss its fourth quarter 2024 results and 2025 outlook, providing an opportunity for investor engagement[14] Asset Management - Total assets decreased to $6.03 billion in 2024 from $6.14 billion in 2023[22] - Total Assets as of December 31, 2024, were $6,034,911, a decrease from $6,137,915 in 2023[42] - Net Assets increased to $3,249,578 in 2024 from $3,203,422 in 2023[42] - Average Invested Capital for the year ended December 31, 2024, was $3,217,513, an increase from $3,124,064 in 2023[42] Taxation and Expenses - Estimated taxes for the year ended December 31, 2024, were $179,173, down from $194,645 in 2023[42] - The statutory tax rate applied was 25% for both 2024 and 2023[42] - Depreciation expenses for the year ended December 31, 2024, were $346,467, up from $312,830 in 2023[42] - The company reported a termination fee of $180 million and an impairment loss of $132.5 million for the year ended December 31, 2024[20] - Cash paid for transaction costs from terminated acquisitions amounted to $13,270 thousand in Q4 2024[37]