McGrath RentCorp (MGRC) 2024 Q1 法說會逐字稿

Please standby. We're about to begin. Ladies and gentlemen, thank you for standing by. Welcome to the McGrath RentCorp earnings conference call. (Operator Instructions) This conference call is being recorded today, Thursday, April 25, 2024.

請等待。我們要開始了。女士們先生們，謝謝你們的支持。歡迎參加 McGrath RentCorp 財報電話會議。（操作員說明）本次電話會議於今天（2024 年 4 月 25 日星期四）錄製。

Before we begin, note that the matters the company management will be using today that are not statements of historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the company's expectations, strategies, prospects, or targets. These forward-looking statements are not guarantees of future performance and involve significant risks and uncertainties that could cause our actual results to differ materially from those projected. Important factors that could cause actual results to differ materially from the company's expectations are disclosed under Risk Factors in the Company's Form 10-K and other SEC filings. Forward-looking statements are made only as of the date hereof. Except as otherwise required by law, we assume no obligation to update any forward-looking statements.

在我們開始之前，請注意，公司管理階層今天將使用的非歷史事實陳述的內容是 1995 年《私人證券訴訟改革法案》含義內的前瞻性陳述，包括與公司的預期、策略、前景或目標。這些前瞻性陳述並非對未來績效的保證，並且涉及重大風險和不確定性，可能導致我們的實際結果與預測有重大差異。可能導致實際結果與公司預期產生重大差異的重要因素已在公司 10-K 表格和其他 SEC 文件中的風險因素項下披露。前瞻性陳述僅在本協議發布之日作出。除非法律另有要求，我們不承擔更新任何前瞻性聲明的義務。

In addition to the press release issued today, the company also filed with the SEC the earnings release on Form 8-K and its Form 10-K -- 10-Q, excuse me, for the quarter ended March 31, 2024. Speaking today will be Joe Hanna, Chief Executive Officer; and Keith Pratt, Chief Financial Officer.

除了今天發布的新聞稿外，該公司還向 SEC 提交了截至 2024 年 3 月 31 日的季度的 8-K 表格和 10-K - 10-Q 表格的收益報告。今天發言的是執行長喬漢納 (Joe Hanna)；和財務長基斯普拉特。

I will now turn the call over to Mr. Hanna. Please go ahead, sir.

我現在將把電話轉給漢納先生。請繼續，先生。

Thank you, Boe. Good afternoon, and thank you, everyone, for joining us on today's call. We are pleased to be together today and look forward to providing additional perspective on our results for the first quarter. I will start with some overall comments on our first quarter, and Keith will provide additional detail in his financial review before we open the call up for questions.

謝謝你，鮑。下午好，謝謝大家參加我們今天的電話會議。我們很高興今天能聚在一起，並期待就我們第一季的業績提供更多觀點。我將從對第一季的一些總體評論開始，基思將在我們開始提問之前在他的財務審查中提供更多細節。

On a total company basis, we had a good first quarter. Rental revenue increased 9%, sales revenues increased 48%, and adjusted EBITDA grew by 17%. Mobile Modular was the highlight of our first quarter with a rental revenue increasing 19%. We have been diligently executing our strategy of offering an expanded range of modular solutions to our customers, and it continues to show in the results.

就整個公司而言，我們第一季的表現不錯。租金收入成長 9%，銷售收入成長 48%，調整後 EBITDA 成長 17%。Mobile Modular 是我們第一季的亮點，租金收入成長了 19%。我們一直在努力執行我們的策略，為客戶提供更廣泛的模組化解決方案，這一點將繼續體現在成果中。

Our teams are focused and clear (technical difficulty) delivering on those commitments. We finished the quarter with a rental backlog that is the highest in the company's history. The high backlog was driven by our education segment, which was very active as school districts address both modernization and growth projects in our operating geographies. This is a positive sign as we now have many units under contract that are already scheduled for shipment. Therefore, we have front loaded much of our planned CapEx spend for the year.

我們的團隊專注且明確（技術難度）地履行這些承諾。本季末，我們的租金積壓達到了公司歷史上最高水準。大量積壓是由我們的教育部門推動的，隨著學區在我們營運地區解決現代化和成長項目，該部門非常活躍。這是一個積極的跡象，因為我們現在有許多簽訂合約的設備已計劃發貨。因此，我們提前加載了今年計劃的大部分資本支出。

Modular sales revenues were also up very nicely for the quarter, increasing 49%. With our custom modular solutions initiative, we have positioned ourselves as a provider of modular solutions that range from very small installations to project larger and more complex scope, and the market opportunities are many. Some are rental projects and some are sales. We want both. We've been very pleased by the development of this capability within the business and have a talented team in place to grow this segment.

該季度模組化銷售收入也大幅成長，成長了 49%。透過我們的客製化模組化解決方案計劃，我們將自己定位為模組化解決方案的供應商，其範圍從非常小的安裝到專案更大、更複雜的範圍，並且市場機會很多。有些是租賃項目，有些是銷售項目。我們兩個都想要。我們對業務中這種能力的發展感到非常高興，並擁有一支才華橫溢的團隊來發展這一領域。

Commenting specifically now on our other growth initiatives, we are expanding contract scope and realized strong growth increases in both Mobile Modular Plus and site-related services of 26% and 31%, respectively. Our customers value the benefit of having their buildings arrive with additional amenities included in their rental contract, as well as the value of services provided on the outside of that building to make it completely ready for use. We are gaining traction as each quarter passes, and customer acceptance has been positive.

現在具體評論我們的其他成長計劃，我們正在擴大合約範圍，並在 Mobile Modular Plus 和網站相關服務方面實現強勁成長，分別達到 26% 和 31%。我們的客戶非常重視建築物抵達時附帶租賃合約中包含的額外便利設施的好處，以及建築物外部提供的服務的價值，以使其完全可供使用。隨著每季的過去，我們的吸引力越來越大，客戶的接受度也很高。

At portable storage, rental revenues increased 8%. Consistent with recent ABI data and other macro indicators of construction-related demand, project activity was slightly muted in the quarter. The returns were higher year over year. Importantly, we executed well, and our close ratios remained steady.

便攜式儲存設備的租金收入增加了 8%。與最近的 ABI 數據和建築相關需求的其他宏觀指標一致，本季專案活動略有放緩。回報率逐年上升。重要的是，我們執行得很好，我們的成交率保持穩定。

At TRS-RenTelco, rental revenues decreased by 13% year over year, reflecting continued industry-wide weakness in the computer and semiconductor portion of the business. We continued adjusting for the softer market conditions. We reduced purchases of new rental equipment and sold fleet, which just collectively reduced our fleet size by $7 million during the quarter. Our team has significant depth of experience, and we are confident on our ability to manage the portfolio effectively through cycles.

TRS-RenTelco 的租金收入年減 13%，反映出全產業電腦和半導體業務部分持續疲軟。我們繼續針對疲軟的市場狀況進行調整。我們減少了新租賃設備的採購並出售了機隊，這使得我們的機隊規模在本季度總共減少了 700 萬美元。我們的團隊擁有豐富的經驗，我們對在整個週期中有效管理投資組合的能力充滿信心。

Since we announced the merger agreement with WillScot Mobile Mini on January 29, and while the transaction is still pending, we continue to operate with a business-as-usual mindset. During this period, our team has remained very focused on delivering exceptional service to our customers and to each other. I could not be more pleased with our performance and commitment. Thank you, everyone, for your dedication and strong execution in the quarter.

自 1 月 29 日我們宣布與 WillScot Mobile Mini 達成合併協議以來，雖然交易仍在進行中，但我們繼續以一切照舊的心態運作。在此期間，我們的團隊仍然非常專注於為我們的客戶和彼此提供卓越的服務。我對我們的表現和承諾感到非常滿意。感謝大家在本季的奉獻和強而有力的執行力。

As always and now during the pending merger, our focus will remain on the execution of our strategic plans and delivering positive financial results. The preliminary Form S-4 has been filed. And we are working with WillScot Mobile Mini on effectiveness of that document, so we can call a special meeting of shareholders to approve the merger. As stated last quarter, we will not be providing any financial guidance or future outlook.

與往常一樣，在即將進行的合併期間，我們的重點仍然是執行我們的策略計劃並實現積極的財務表現。初步表格 S-4 已提交。我們正在與 WillScot Mobile Mini 就該文件的有效性進行合作，以便我們可以召開股東特別會議來批准合併。正如上季所述，我們將不會提供任何財務指導或未來展望。

Now let me turn the call over to Keith.

現在讓我把電話轉給基斯。

Thank you, Joe, and good afternoon, everyone. As Joe highlighted, we delivered strong results in the first quarter, driven by the performance of our mobile modular and portable storage businesses.

謝謝喬，大家下午好。正如喬所強調的那樣，在行動模組化和便攜式儲存業務業績的推動下，我們在第一季取得了強勁的業績。

Looking at the overall corporate results for the first quarter, total revenues from continuing operations increased 15% to $187.8 million and adjusted EBITDA increased 17% to $72.1 million. During the first quarter, the company sold a property, which resulted in a $9.3 million net gain and contributed $0.28 in earnings per diluted share. These types of sales are infrequent and are excluded from adjusted EBITDA.

從第一季的整體公司業績來看，持續經營業務的總收入成長了 15%，達到 1.878 億美元，調整後的 EBITDA 成長了 17%，達到 7,210 萬美元。第一季度，該公司出售了一處房產，淨收益為 930 萬美元，攤薄後每股收益為 0.28 美元。這些類型的銷售並不常見，並且不包括在調整後的 EBITDA 中。

Reviewing mobile modular's operating performance as compared to the first quarter of 2023, mobile modular had an impressive quarter with adjusted EBITDA increasing 34% to $43.3 million. Total revenues increased 23% to $127.6 million. There were increases including 19% higher rental revenue, 49% higher sales revenues, and 12% higher rental-related services revenues.

與 2023 年第一季相比，行動模組化公司的營運表現令人印象深刻，調整後的 EBITDA 成長了 34%，達到 4,330 萬美元。總營收成長 23%，達到 1.276 億美元。增幅包括租金收入成長 19%、銷售收入成長 49%、租賃相關服務收入成長 12%。

As a reminder, the prior year first quarter included just two months of Vesta Modular from the acquisition date of February 1, 2023. The extra month of Vesta in the first-quarter 2024 contributed approximately $5 million rental revenue and $2 million adjusted EBITDA.

提醒一下，去年第一季度僅包括自 2023 年 2 月 1 日收購之日起兩個月的 Vesta Modular。2024 年第一季灶神星額外的一個月貢獻了約 500 萬美元的租金收入和 200 萬美元的調整後 EBITDA。

The rental revenue growth reflected overall positive business conditions across our commercial and education customer bases. Sales revenues increased $8.4 million to $25.3 million, demonstrating continued execution of our initiatives to grow modular sales projects.

租金收入的成長反映了我們商業和教育客戶群整體積極的業務狀況。銷售收入增加了 840 萬美元，達到 2,530 萬美元，這表明我們繼續執行發展模組化銷售項目的舉措。

We continued our disciplined fleet management on a larger fleet with 18% higher average rental equipment on rent and average fleet utilization of 78.7% compared to 79.4% a year ago. We have achieved this healthy total fleet utilization throughout the integration process of Vesta while concurrently investing in new rental fleet for growth. Rental revenues increased by 19%, while inventory center costs decreased 6% and depreciation expense increased 14%, resulting in rental margins of 57%, up from 49% a year ago.

我們繼續對規模更大的車隊實施嚴格的車隊管理，平均租賃設備租金提高了 18%，平均車隊利用率為 78.7%，而一年前為 79.4%。在 Vesta 的整個整合過程中，我們實現了健康的車隊總利用率，同時投資新的租賃機隊以實現成長。租金收入成長了 19%，而庫存中心成本下降了 6%，折舊費用增加了 14%，導致租金利潤率達到 57%，高於一年前的 49%。

Similar to last quarter, I will share additional data that help illustrate our progress delivering on our modular business strategy. First quarter monthly revenue per unit on rent increased 18% year over year to $772. For new shipments over the last 12 months, the average monthly revenue per unit increased 9% to $1,063. Progress with Mobile Modular Plus is embedded in these data points and as an additional growth driver.

與上季類似，我將分享更多數據，以幫助說明我們在模組化業務策略方面的進展。第一季每單位租金收入年增 18% 至 772 美元。對於過去 12 個月的新出貨量，每台平均每月收入增長了 9%，達到 1,063 美元。Mobile Modular Plus 的進展嵌入在這些數據點中，並作為額外的成長動力。

We continue to make progress with our modular services offerings. For the first quarter 2024, Mobile Modular Plus revenues increased to $7.2 million from $5.7 million a year earlier. And site-related services increased to $3.2 million, up from $2.4 million.

我們的模組化服務產品不斷取得進展。2024 年第一季度，Mobile Modular Plus 營收從去年同期的 570 萬美元增至 720 萬美元。網站相關服務從 240 萬美元增加到 320 萬美元。

Turning to the review of portable storage in the first quarter, adjusted EBITDA for portable storage was $1.5 million, an increase of 15% compared to the prior year. During the quarter, we saw increases in all revenue streams, resulting in a total revenue increase of 9% to $24.8 million.

回顧第一季便攜式存儲，便攜式存儲的調整後 EBITDA 為 150 萬美元，較上年增長 15%。在本季度，我們看到所有收入來源均有所增長，總收入增長了 9%，達到 2,480 萬美元。

Rental revenues for the quarter increased 8% to $15.4 million (sic - see press release, "$18.4 million"), and rental margins were 87%, up from 85% a year earlier. Average equipment on rent increased 2%, while average utilization for the quarter was 69.8% compared to 80.8% a year ago.

該季度的租金收入成長 8%，達到 1,540 萬美元（原文如此，請參閱新聞稿，「1,840 萬美元」），租金利潤率為 87%，高於去年同期的 85%。平均租賃設備成長 2%，本季平均利用率為 69.8%，去年同期為 80.8%。

Turning now to review TRS-RenTelco. Adjusted EBITDA was $18.5 million, a decrease of 10% compared to last year. Total revenues decreased $2.4 million or 7% to $33.8 million. Rental revenues for the quarter decreased 13% as the industry experienced continued softness in semiconductor-related demand.

現在轉向回顧 TRS-RenTelco。調整後 EBITDA 為 1850 萬美元，比去年下降 10%。總收入減少 240 萬美元，即 7%，至 3,380 萬美元。由於半導體相關需求持續疲軟，該行業本季的租金收入下降了 13%。

Average utilization for the quarter was 56.5% compared to 59.2% a year ago, and rental margins were 36% compared to 40% a year ago. Sales revenues increased 33% year over year to $6.8 million, with gross profit increasing $1 million to $3.9 million, a result of higher sales revenues and improved margins.

該季度的平均利用率為 56.5%，而去年同期為 59.2%；租金利潤率為 36%，而去年同期為 40%。由於銷售收入增加和利潤率提高，銷售收入年增 33%，達到 680 萬美元，毛利增加 100 萬美元，達到 390 萬美元。

To address the software business conditions with TRS, we continued to maintain our return on capital discipline. We reduced new equipment capital spending, focused on sales of used equipment and reduced fleet size based on original cost of equipment from $378 million at the end of December to $371 million at the end of March. We continued to make progress with reducing fleet size to better align with current demand conditions.

為了解決 TRS 的軟體業務狀況，我們繼續保持資本回報紀律。我們減少了新設備資本支出，專注於二手設備的銷售，並根據設備原始成本將機隊規模從 12 月底的 3.78 億美元減少到 3 月底的 3.71 億美元。我們在縮小機隊規模方面繼續取得進展，以更好地適應當前的需求狀況。

The remainder of my comments will be on a total company basis from continuing operations. First quarter selling and administrative increased $2.3 million to $59.8 million. The increase was primarily the result of higher employee salaries and benefit costs, partly offset by reduced marketing and administrative costs. 2024 costs included $9.4 million of transaction expenses from the pending WillScot merger.

我其餘的評論將基於整個公司的持續運作。第一季銷售和管理費用增加 230 萬美元，達到 5,980 萬美元。這一增長主要是由於員工工資和福利成本增加，但行銷和管理成本減少部分抵消了這一增長。 2024 年成本包括懸而未決的 WillScot 合併帶來的 940 萬美元交易費用。

2023 costs included $14.1 million investment acquisition and Adler divestiture related transaction costs. Interest expense was $12.7 million, an increase of $5.2 million as a result of higher average interest rates and $215 million higher average backlog levels during the quarter, which was primarily the result of funding of last year's acquisitions. The first quarter provision for income taxes was based on an effective tax rate of 23.6% compared to 23.8% a year earlier. The decrease was primarily due to changes in business mix by state.

2023 年成本包括 1,410 萬美元的投資收購和 Adler 剝離相關交易成本。利息支出為 1,270 萬美元，增加了 520 萬美元，原因是本季平均利率上升以及平均積壓水準增加了 2.15 億美元，這主要是去年收購融資的結果。第一季所得稅撥備基於 23.6% 的有效稅率，而去年同期為 23.8%。減少的主要原因是各州業務結構的變化。

Turning to our year-to-date cash flow highlights. Net cash provided by operating activities was $59 million compared to $36 million in the prior year. Rental equipment purchases were $79 million compared to $78 million in the prior year.

轉向我們今年迄今的現金流亮點。經營活動提供的淨現金為 5,900 萬美元，而前一年為 3,600 萬美元。租賃設備採購額為 7,900 萬美元，而前一年為 7,800 萬美元。

In addition to continued investments in new fleet, healthy cash generation allowed us to pay $12 million in shareholder dividends. Proceeds from sales of property, plant and equipment were $12 million. At quarter end, we had net borrowings of $799 million, comprised of $175 million notes outstanding and $624 million under our credit facility.

除了對新機隊的持續投資之外，健康的現金產生使我們能夠支付 1,200 萬美元的股東股息。出售不動產、廠房和設備的收益為 1,200 萬美元。截至季末，我們的淨借款為 7.99 億美元，其中包括 1.75 億美元的未償票據和 6.24 億美元的信貸額度。

On April 23, the company entered into an incremental borrowing facility amendment, which provided for a $75 million term loan. This loan was used to pay down our existing bank lines of credit and creates additional borrowing capacity for general corporate purposes and working capital needs, including the front loading of our 2024 modular capital spending to support positive demand conditions and for incremental transaction expenses. The ratio of funded debt to the last 12 months actual adjusted EBITDA was 2.43 to 1.

4 月 23 日，該公司簽訂了增量借款安排修正案，提供 7,500 萬美元的定期貸款。這筆貸款用於償還我們現有的銀行信貸額度，並為一般企業用途和營運資金需求創造額外的借貸能力，包括提前加載我們的2024 年模組化資本支出，以支持積極的需求條件和增量交易費用。融資債務與過去 12 個月實際調整後 EBITDA 的比率為 2.43 比 1。

We are very proud of the graphs strong first quarter performance, and we are fully focused on solid execution for the remainder of 2024. That concludes our prepared remarks. Boe, you may now open the lines for questions.

我們對第一季的強勁表現感到非常自豪，我們完全專注於 2024 年剩餘時間的穩健執行。我們準備好的演講到此結束。Boe，您現在可以開始提問了。

(Operator Instructions) Scott Schneeberger, Oppenheimer.

（操作員說明）Scott Schneeberger，Oppenheimer。

Thanks very much. Good afternoon, guys. Hey, for the first question, and I have a bunch, I think you said it about in dollar terms and I have another chance to go back and reconcile, what was the organic growth in modular versus the Vesta distribution since we were dealing with a partial quarter? Thanks.

非常感謝。下午好，夥計們。嘿，對於第一個問題，我有很多問題，我想你是以美元計算的，我還有另一個機會回去調和，模組化與 Vesta 發行版的有機增長是多少，因為我們正在處理一個部分季度？謝謝。

Yeah. On the rental revenue side, approximately 12% organic.

是的。在租金收入方面，有機收入約為 12%。

Thanks. Appreciate that. With regard to pricing, and this is a question relating to slide 24, and I have the feeling Vesta played into this answer here. But your units shipped over the last 12 months, modular grew 9% year over year in the first quarter. The total portfolio -- plus 18% year over year.

謝謝。感謝。關於定價，這是一個與幻燈片 24 相關的問題，我感覺維斯塔在這裡的答案中發揮了作用。但在過去 12 個月中，第一季模組化設備的出貨量年增了 9%。總投資組合較去年同期成長 18%。

I'm little confused. I mean, both nice numbers, but I'm a little bit confused by the magnitude of each, and I suspect it has to do it. I read the footnote you started including Vesta in November of '23. Is that the main difference there? And could you take us through that a little bit, please, Keith?

我有點困惑。我的意思是，這兩個數字都不錯，但我對每個數字的大小感到有點困惑，我懷疑它必須做到這一點。我讀過你在 23 年 11 月開始的腳註，包括灶神星。這是主要的區別嗎？基思，可以幫我們簡單介紹一下嗎？

Yeah, I think that is the main difference, Scott. Again, that is the data, the footnotes are important as you understand the data. As you'd lean from the footnotes, we're reflecting the data we have available from our systems. And Vesta, we've incorporated into the data capture on the 1st of November.

是的，我認為這是主要的區別，斯科特。再說一次，這就是數據，腳註對於您理解數據很重要。正如您從腳註中了解到的那樣，我們正在反映從我們的系統中獲得的數據。至於灶神星，我們已將 11 月 1 日的資料納入其中。

And I think the trends are still positive across the business. We are getting more revenue per unit on rent. I think that reflects a couple of things. One is units are more expensive, both the purchase and maintain. So we have to charge accordingly. And importantly, we're adding more services into the business. So with some of our contract, capturing more of the Mobile Modular Plus services to further enhances the revenue per units.

我認為整個行業的趨勢仍然是正面的。我們透過租金獲得了更多的單位收入。我認為這反映了一些事情。一是設備的購買和維護成本都更高。所以我們必須相應地收費。重要的是，我們正在為業務中添加更多服務。因此，透過我們的一些合同，獲得更多的 Mobile Modular Plus 服務，以進一步提高單位收入。

All right. Thanks. Some volume questions. I think Joe may have referenced that ABI's been bouncing around on recently. I think he addressed it when he was speaking to portable storage containers. But just curious what are you seeing in the demand environment for both of the two major asset classes in mobile modular, both portable and modulars since we last spoke in mid-February? Thanks.

好的。謝謝。一些體積問題。我認為 Joe 可能提到 ABI 最近一直在流行。我認為他在談到便攜式儲存容器時談到了這個問題。但只是好奇，自從我們上次在二月中旬發言以來，您在行動模組化（便攜式和模組化）這兩個主要資產類別的需求環境中看到了什麼？謝謝。

Yeah. Scott, actually, as I referenced in the comments, our rental backlog right now is very strong, and that's mostly supported by really good orders that we've received so far for our education. So that's been a highlight, I think, of the quarter. Actually, not only in bookings that we made, but the actual billings too. So that part of the business is strong.

是的。斯科特，實際上，正如我在評論中提到的，我們現在的租賃積壓非常強勁，這主要是由我們迄今為止收到的教育訂單所支持的。我認為這是本季的一個亮點。事實上，不僅是我們的預訂，還有實際的帳單。所以這部分業務很強。

I would say, a little bit more muted in the commercial construction market, just not quite the activity level that we've seen in prior years, but still hanging in there, still pretty steady. And so I would say that would be the two major differences.

我想說，商業建築市場有點安靜，只是不像我們前幾年看到的那樣活躍，但仍然保持在那裡，仍然相當穩定。所以我想說這是兩個主要區別。

Thanks. And Joe, you mentioned that you pull forward CapEx, and this brings Keith into conversation. Pulled forward Capex is -- I know that moving away from the annual guidance here. But is this pull forward CapEx, are you looking to do more? Or is it just we'd do it earlier? And it sounds like it's predominantly on education, classroom modulars. Is this access for anything else? Or would you be doing actually [left] if not for the educational? Thanks.

謝謝。喬，你提到你提前了資本支出，這讓基斯進入了對話。我知道，資本支出的提前是偏離年度指導的。但這是否會拉動資本支出，您是否希望採取更多行動？或者只是我們應該早點做？聽起來主要是在教育、課堂模組方面。這個存取權限還有其他用途嗎？或者如果不是為了教育目的，你實際上會做[左]嗎？謝謝。

Yeah, Scott, here's the way I'd frame it. It's really driven by the education market. As Joe commented, education market conditions have been good for the first part of the year. I think you'll recall the education market is seasonal. Most of the activations will be in the summer months. So we really have to front-load the CapEx to meet demand in that part of the market.

是的，斯科特，這就是我的框架方式。這確實是由教育市場所驅動的。正如喬所言，今年上半年教育市場狀況良好。我想您會記得教育市場是季節性的。大多數激活將在夏季進行。因此，我們確實必須提前投入資本支出，以滿足該市場部分的需求。

We're certainly adding some fleet selectively. But I would say the new CapEx focus is much more in the education side of the business, and it needs to happen early in the year to be effective.

我們當然會選擇性地增加一些機隊。但我想說，新的資本支出重點更集中在業務的教育方面，並且需要在今年年初進行才能有效。

Thanks, Keith. There's a question on portable storage utilization. You've only been reporting that segment separately the last two quarters. But it's been down about 1,000 basis points, give or take year over year, and we don't have the historical context prior. But what is the big difference there year over year if you could just elaborate a little bit? Thanks.

謝謝，基斯。有一個關於便攜式儲存利用率的問題。您僅在過去兩個季度單獨報告該細分市場。但每年都下降了約 1,000 個基點，我們之前沒有歷史背景。但如果您能稍微詳細說明一下，那麼每年的巨大差異是什麼？謝謝。

Yeah. Scott, I would say we have a bigger fleet. So units on rent have actually hung in there pretty well. Utilization has dropped. And we've gotten more returns than we had planned, and bookings were quite as strong as we had planned in the quarter. So I think that's really what you're seeing in the numbers there.

是的。史考特，我想說我們有一支更大的艦隊。因此，出租單位實際上一直保持得很好。利用率下降了。我們獲得的回報比我們計劃的要多，而且本季的預訂量也與我們計劃的一樣強勁。所以我認為這確實是你在數字中看到的。

And first quarter, Joe, is a seasonally soft this quarter, right?

第一季度，喬，本季季節性疲軟，對吧？

Correct. Absolutely.

正確的。絕對地。

All right. Thanks. I'm going to pivot over. I'm getting toward the end here. Thanks.

好的。謝謝。我要轉過去了我已經快要結束了。謝謝。

TRS-RenTelco still semiconductor softness. Are you seeing any sign to return, any visibility there? Is it's still tough to call?

TRS-RenTelco 半導體依然疲軟。你看到任何返回的跡象嗎？打電話還是那麼困難嗎？

Yes, it's still pretty tough to call. And as you know, in that business, our rental terms are shorter, hard to see, out far over the hood there. And so we take it on a month by month by month basis. So a little bit tough to predict right now, but we're pulling all the right levers in the business to adjust for the current market conditions. So I'm pleased that the team is taking the steps that they are to keep the business healthy.

是的，打電話還是很難。如您所知，在該行業中，我們的租賃期限較短，很難看到，而且遠遠超出了那裡的範圍。所以我們逐月進行。所以現在有點難以預測，但我們正在採取所有正確的商業手段來適應當前的市場狀況。因此，我很高興團隊正在採取措施維持業務健康發展。

Any quick comments 4G to 5G? Just any progress report on that? Thanks.

4G 到 5G 有什麼快速評論嗎？有相關進度報告嗎？謝謝。

Not really. No big developments there on to speak of.

並不真地。沒有什麼大的進展可言。

Okay, thanks. And then I'll wrap it up. Recently, a proxy out having to do with your pending transaction with WillScot Mobile Mini. It was provided revenue, EBITDA, and EBIT, unlevered free cash flow for the business through 2028. Just curious kind of high -- I mean, obviously, that's out there publicly for all the [C]. What was behind kind of some of the major assumptions that you're applying, particularly to the revenue line as that was put together? Thanks.

好的謝謝。然後我會把它包起來。最近，一名代理商與您與 WillScot Mobile Mini 的待處理交易有關。它提供了截至 2028 年業務的收入、EBITDA 和 EBIT、無槓桿自由現金流。只是一種好奇的興奮——我的意思是，顯然，這是公開的，適合所有的人[C]。您所應用的一些主要假設（尤其是收入線）背後的原因是什麼？謝謝。

(multiple speakers) Yeah, go ahead. I'm going to make a quick comment and Keith can give you more color. I would say that what we really wanted to do there as we put those projections together were to filter in the initiatives that we have that are going in the business too.

（多個發言者）是的，繼續。我將快速發表評論，基斯可以為您提供更多資訊。我想說，當我們將這些預測放在一起時，我們真正想做的是過濾我們在業務中也正在實施的舉措。

And so we tried to predict further penetration of those initiatives into all the work that we're doing on a current basis. And so we rolled all that forward. Keith, I don't know if you want to add anything to that.

因此，我們試圖預測這些舉措將進一步滲透到我們目前正在進行的所有工作中。所以我們將這一切向前推進。基思，我不知道你是否想補充什麼。

That was going to be exactly my point, Joe, and really emphasizing that was our organic outlook for the business we own and operate. We see a lot of opportunities with it. A lot of those opportunities are based around the modular growth strategy that we've articulated over the last few years. And I think you see in today's report card that we continue to make progress in those areas.

喬，這正是我的觀點，並且真正強調這是我們對我們擁有和經營的業務的有機展望。我們看到了很多機會。其中許多機會都是基於我們過去幾年制定的模組化成長策略。我認為您在今天的成績單中看到我們繼續在這些領域取得進展。

Thanks. And for both uses such as with regard to initiative is, what you're doing with regard to add on inside and outside the assets? And then just maybe, Keith, maybe some consideration for what type of economic outlook is. I mean, it's a five year on outlook. So are you -- what type of K or GDP are you anticipating there? And anything else, just kind of -- as you know, acquisitions are in that number, but just wanted to clarify. Thanks.

謝謝。對於這兩種用途，例如關於主動性，您在添加資產內部和外部方面正在做什麼？然後，基思，也許需要考慮經濟前景的類型。我的意思是，這是五年的展望。那麼您預期 K 或 GDP 類型是什麼？還有其他任何事情，正如你所知，收購就是這個數字，但我只是想澄清一下。謝謝。

Yeah, all organic, no acquisitions. When we put together any forecast, we really begin by looking at the overall economic backdrop. We review published studies that are out there. And then when we look at specific studies that are related to important end markets that we serve.

是的，都是有機的，沒有收購。當我們進行任何預測時，我們實際上是從整體經濟背景開始的。我們回顧了已發表的研究。然後，當我們查看與我們服務的重要終端市場相關的特定研究時。

So things like ADI, construction spending and the like, outlook for school spending, school enrollment. All those kinds of things we'll take a look at as we formulate our forecast. So that's all in the normal course of business. And what is done is we develop the forecast with the information that is most current at the time they're put together.

例如 ADI、建築支出等、學校支出前景、入學率。在製定預測時，我們會考慮所有這些事情。這就是正常業務過程中的一切。我們所做的就是利用匯總時的最新資訊來制定預測。

Great. Thanks. I appreciate that. That's helpful.

偉大的。謝謝。我很感激。這很有幫助。

One more and I'm going to sneak in, it's the real estate sale. Can you share a little bit more color on tha, and I'll turn it over. Thanks, guys.

還有一件事，我要偷偷溜進去，是房地​​產銷售。你能分享更多一點顏色嗎，我會把它翻過來。多謝你們。

Yeah, Scott, as you know, for certain key operating locations, we may own our property across our businesses. And in this particular instance, this is a property which Adler Tank Rentals was the division that used the property, and obviously, we divested that business last year. We had an opportunity to sell the property and can use that capital to redeploy it into the modular side of the business.

是的，斯科特，正如你所知，對於某些關鍵營運地點，我們可能在我們的業務中擁有我們的財產。在這個特殊的例子中，這是阿德勒坦克租賃公司使用該財產的部門的財產，顯然，我們去年剝離了該業務。我們有機會出售該財產，並可以利用該資金將其重新部署到業務的模組化方面。

Sounds good. Thanks, guys.

聽起來不錯。多謝你們。

Thank you.

謝謝。

Thank you.

謝謝。

Marc Riddick, Sidoti.

馬克·里迪克，西多蒂。

Hi, good evening.

嗨，晚上好。

Hi, Marc.

嗨，馬克。

So I was wondering if you could take us back to the strength of education for a moment because I think it's interesting, the commentary there. It seems as though things we're looking pretty good already as we got to the end of last year in that space. So can you maybe just take us through maybe a couple of puts and takes as to what was stronger than what you expected, whether it was a mix issue, pricing? Was it really a bumped-up education, maybe a little faster than what maybe you were expecting at the end of the year?

所以我想知道你是否可以讓我們回到教育的力量上來，因為我認為那裡的評論很有趣。截至去年年底，我們在這個領域的情況似乎已經相當不錯了。那麼，您能否帶我們了解看跌期權和看跌期權，看看哪些因素比您預期的要強，是否是混合問題、定價問題？這真的是一次提升的教育嗎？

Sure. I would say that's really the main driver of our education business. It's the amount of money that's out on local bond measures and state bond measures. Primarily, what we're seeing now is more local bonds. And so those go out on the ballot for election, they passed via a nice majority usually. And those are significant bonds that pass in these municipalities for modernization and for growth projects.

當然。我想說這確實是我們教育業務的主要驅動力。這是用於地方債券措施和國家債券措施的資金數量。首先，我們現在看到的是更多的地方債券。因此，這些人參加選舉投票時，通常會以多數票通過。這些是這些城市實現現代化和成長項目的重要紐帶。

And over the past year or so, a lot of those have passed, and that money is now being deployed in the market right now. And we're positioned very nicely to take advantage of it. And it's really solid execution, our relationships with our education clients. That really bring those projects to fruition. So we're very pleased with how that market has developed.

在過去一年左右的時間裡，其中許多都已經過去了，這些資金現在正在市場上部署。我們處於非常有利的位置來利用它。我們與教育客戶的關係確實是可靠的執行力。這確實使這些項目取得了成果。因此，我們對該市場的發展感到非常滿意。

So it's the funding availability that had been building the last couple of years. Folks are now more comfortable in releasing those and putting that work. Is that particularly in California and/or Texas? Or are there any particular areas that you're seeing, or is it across the board?

因此，這是過去幾年一直在建立的資金可用性。人們現在更願意發布這些內容並投入使用。尤其是在加州和/或德州嗎？或者您看到了哪些特定領域，或是全面的？

It's across the board. You're absolutely right. That money is being deployed, and it's across the board.

這是全面的。你是絕對正確的。這筆錢正在全面部署。

Excellent. Excellent. And then so you talked about bringing forward some of the CapEx to address that. And obviously, there's the seasonal nature and the timing of when those will be delivered. Do you get any sense of any supply chain concerns as to what you'll need, or how should we think about?

出色的。出色的。然後您談到提出一些資本支出來解決這個問題。顯然，有季節性和交貨時間。您是否了解您需要什麼供應鏈問題，或者我們應該如何考慮？

Yeah. So I would say supply chain issues, we manage that very carefully. We have excellent relationships with our suppliers. We work with them to reserve line time, and we're not seeing that being a hindrance to us at all for this year.

是的。所以我想說的是供應鏈問題，我們非常謹慎地管理。我們與供應商有著良好的關係。我們與他們合作預留線路時間，我們認為這根本不會成為我們今年的障礙。

It's been tied in prior years, not quite as tight this year. But like I said, we manage it very carefully, and I think we're in very good shape there with our suppliers.

前幾年一直很緊，今年沒那麼緊了。但就像我說的，我們管理得非常謹慎，而且我認為我們與供應商的關係非常好。

Okay, excellent. And finally, it seems as though with the pricing dynamic that you guys have been working on for quite some time continues to generally move in the right direction. I was wondering if you could talk a little bit about those efforts and if there any pieces that we should be aware of that maybe we have another chance to talk about as much lately?

好的，非常好。最後，你們長期以來致力於的定價動態似乎繼續朝著正確的方向發展。我想知道你是否可以談談這些努力，是否有任何我們應該注意的事情，也許我們最近還有機會談論同樣的事情？

Marc, as we commented earlier, the goal here is deliver more value to the customer. We're achieving better revenue per unit deployed. That's partly because of the services emphasis. It also reflects higher cost of new equipment and a higher cost of maintaining equipment and getting it went already.

馬克，正如我們之前評論的，這裡的目標是為客戶提供更多價值。我們正在實現更好的每單位部署收入。這部分是因為對服務的重視。它也反映出新設備的成本較高，以及設備維護和使用的成本較高。

So this is all about protecting our economics. We've talked about that over the last few years. And I think our teams have done really good work addressing these issues, and that's reflected in the numbers.

所以這都是為了保護我們的經濟。過去幾年我們一直在討論這個問題。我認為我們的團隊在解決這些問題方面做得非常出色，這也反映在數字中。

And then I guess the last one for me with given what's taking place, I was wondering if you could talk a little bit about how you see the labor market and development. I think the entire time I've covered you, I have always worried about not being able to get enough drivers. And I would imagine that could be something that could be undertaken as well. But maybe you could talk a little bit about the labor market and what your experience in that.

然後我想，考慮到正在發生的事情，我想知道您是否可以談談您如何看待勞動力市場和發展。我想在我報道你的整個過程中，我一直擔心無法找到足夠的驅動程式。我想這也是可以採取的事情。但也許你可以談談勞動市場以及你在這方面的經驗。

Yeah. Actually, this year, we've been able to fill open positions pretty effectively. You're right, the driver market typically is one. That's very, very tight. And we have -- we're not experiencing any specific issues right now in filling those roles. So I feel very good that we have the right labor at the right places in the company to get the job done that we need to right now. So I think we're in pretty good shape.

是的。事實上，今年我們已經能夠非常有效地填補空缺職位。你是對的，司機市場通常就是其中之一。這非常非常緊。我們現在在填補這些職位方面沒有遇到任何具體問題。因此，我感覺非常好，我們在公司的正確位置擁有正確的勞動力來完成我們現在需要的工作。所以我認為我們的狀態非常好。

Excellent. Thank you very much.

出色的。非常感謝。

Thank you, Marc.

謝謝你，馬克。

Thank you.

謝謝。

Ladies and gentlemen, that appears to be the last question. Let me now turn the call back over to Mr. Hanna for any closing comments.

女士們先生們，這似乎是最後一個問題。現在讓我將電話轉回漢納先生以徵求結束意見。

I'd like to thank everyone for joining us on the call today and for your continuing interest in our company.

我要感謝大家今天參加我們的電話會議以及對我們公司的持續關注。

Ladies and gentlemen, this concludes today's conference call. Thank you all for your participation. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝大家的參與。您現在可以斷開連線。