WillScot Mobile Mini (US:WSC)2025-11-06 22:08Financial Performance - Total revenues for Q3 2025 were $566.8 million, a decrease of 5.7% compared to $601.4 million in Q3 2024[8] - Net income for Q3 2025 was $43.3 million, compared to a net loss of $70.5 million in Q3 2024, marking a significant turnaround[12] - Gross profit for the nine months ended September 30, 2025, was $878.1 million, compared to $965.5 million for the same period in 2024, a decline of 9.1%[8] - For the nine months ended September 30, 2025, net income was $134.3 million, a significant increase from a net loss of $61.1 million in the same period of 2024[17] - Adjusted EBITDA for the nine months ended September 30, 2025, was $721.0 million, down 7.4% from $778.4 million in 2024[91] - Total comprehensive income for the three months ended September 30, 2025, was $36,800, compared to a total comprehensive loss of $93,093 in the prior year[12] Revenue and Leasing - Leasing revenue for Q3 2025 was $434.2 million, down from $455.6 million in Q3 2024, reflecting a decrease of 4.9%[8] - Total revenue for the three months ended September 30, 2025, was $566.8 million, a decrease of 5.8% from $601.4 million in the same period of 2024[27] - For the nine months ended September 30, 2025, total revenue was $1.72 billion, down 4.3% from $1.79 billion in 2024[27] - Modular space leasing revenue for the three months ended September 30, 2025, was $250.8 million, a slight decrease from $254.5 million in 2024[29] Assets and Liabilities - Total assets increased to $6.1 billion as of September 30, 2025, up from $6.0 billion at the end of 2024[7] - Total liabilities stood at $5.0 billion as of September 30, 2025, slightly up from $5.0 billion at the end of 2024[7] - The company’s accumulated deficit decreased to $612.6 million as of September 30, 2025, from $747.0 million at the end of 2024[7] - Total shareholders' equity as of September 30, 2025, was $1.06 billion, an increase from $1.05 billion as of September 30, 2024[15] Cash Flow and Dividends - Total cash provided by operating activities for the nine months ended September 30, 2025, was $603.1 million, compared to $382.7 million in 2024, reflecting a 57.6% increase[17] - The company incurred cash dividends declared of $38.4 million for the nine months ended September 30, 2025, compared to no dividends declared in the same period in 2024[17] - Cash and cash equivalents at the end of the period were $14.8 million as of September 30, 2025, compared to $11.0 million at the end of September 2024[17] Debt and Financing - Total debt outstanding as of September 30, 2025, was $3.6 billion, a decrease from $3.7 billion as of December 31, 2024[46] - The ABL Facility had $1.7 billion of available borrowing capacity as of September 30, 2025, including $1.5 billion under the US Facility and $190 million under the Multicurrency Facility[50] - The Company issued $500 million in 6.625% senior secured notes due 2030 on March 26, 2025, with interest payable semi-annually starting October 15, 2025[53] - The company was in compliance with all debt covenants and restrictions associated with its debt instruments as of September 30, 2025[57] Tax and Compliance - The company recorded an income tax expense of $54.9 million for the nine months ended September 30, 2025, compared to an income tax benefit of $17.4 million for the same period in 2024, reflecting a significant change in tax position[63] - The effective tax rate for the nine months ended September 30, 2025, was 29.0%, up from 22.2% for the same period in 2024, primarily due to state and provincial taxes and non-deductible executive compensation[64] Stock and Compensation - Stock-based compensation expense for Restricted Stock Awards (RSAs) was $1.2 million for the nine months ended September 30, 2025, compared to $1.0 million for the same period in 2024[75] - The Company granted 677,853 Time-Based RSUs with a weighted-average grant date fair value of $31.08 during the nine months ended September 30, 2025[76] - Unrecognized compensation cost related to Time-Based RSUs totaled $24.8 million as of September 30, 2025, expected to be recognized over a remaining weighted average vesting period of 2.7 years[76] - The intrinsic value of stock options outstanding at September 30, 2025, was $3.7 million, while the intrinsic value of fully vested and exercisable options was $4.2 million[82] Acquisitions and Investments - The company acquired a regional provider of climate-controlled containers for $115.6 million, with recognized goodwill of $54.5 million and intangible assets valued at $18.7 million[25] - The company made acquisitions totaling $144.4 million during the nine months ended September 30, 2025, compared to $84.5 million in 2024[17] Other Financial Metrics - The company reported depreciation and amortization expenses of $317.8 million for the nine months ended September 30, 2025, up from $285.9 million in 2024[17] - The company recognized a loss of $9.636 million in other comprehensive income (OCI) for the nine months ended September 30, 2025, compared to a gain of $3.947 million for the same period in 2024[69] - The balance of accumulated other comprehensive income (loss) at September 30, 2025, was $(72.783) million, compared to $(69.924) million at September 30, 2024[62]