WillScot Holdings Corp (WSC) 2024 Q1 法說會逐字稿

Welcome to the First Quarter 2024 WillScot Mobile Mini Earnings Conference Call. My name is Cherie, and I will be your operator for today's call. (Operator Instructions) Please note that this conference is being recorded. I will now turn the call over to Nick Girardi, Senior Director of Treasury and Investor Relations. Nick, you may begin.

歡迎參加 2024 年第一季 WillScot 行動迷你收益電話會議。我叫 Cherie，我將擔任今天電話的接線生。 （操作員說明）請注意，本次會議正在錄製中。我現在將把電話轉給財務和投資者關係高級總監尼克·吉拉迪 (Nick Girardi)。尼克，你可以開始了。

Good afternoon, and welcome to the WillScot Mobile Mini First Quarter 2024 Earnings Call. Participants on today's call include Brad Soultz, Chief Executive Officer; and Tim Boswell, President and Chief Financial Officer. Today's presentation material may be found on the Investor Relations section of the WillScot Mobile Mini website. Slides 2 and 3 contain our safe harbor statements. We will be making forward-looking statements during the presentation and our Q&A session.

下午好，歡迎參加 WillScot Mobile Mini 2024 年第一季財報電話會議。今天電話會議的參與者包括執行長 Brad Soultz；蒂姆·博斯韋爾（Tim Boswell），總裁兼財務長。今天的簡報資料可以在 WillScot Mobile Mini 網站的投資者關係部分找到。投影片 2 和 3 包含我們的安全港聲明。我們將在演示和問答環節中做出前瞻性陳述。

Our business and operations are subject to a variety of risks and uncertainties, many of which are beyond our control. As a result, our actual results may differ materially from today's comments. For a more complete description of the factors that could cause actual results to differ and other possible risks, please refer to the safe harbor statements in our presentation and our filings with the SEC. With that, I'll turn the call over to Brad Soultz.

我們的業務和營運面臨各種風險和不確定性，其中許多風險和不確定性超出了我們的控制範圍。因此，我們的實際結果可能與今天的評論有重大差異。有關可能導致實際結果不同的因素以及其他可能風險的更完整描述，請參閱我們的簡報中的安全港聲明以及我們向 SEC 提交的文件。這樣，我會將電話轉給 Brad Soultz。

Thanks, Nick. Good afternoon, everyone, and thank you for joining us today. I'm Brad Soultz, CEO of WillScot Mobile Mini. Starting on Slide 6. Our Q1 results were solid and in line with our expectations and support our 2024 outlook. Tim will cover these in more detail in a few minutes. I'd first like to highlight several significant strategic milestones the team also accomplished in the quarter as well as provide a brief status update regarding the McGrath transaction.

謝謝，尼克。大家下午好，感謝您今天加入我們。我是 Brad Soultz，WillScot Mobile Mini 的執行長。從投影片 6 開始。蒂姆將在幾分鐘內更詳細地介紹這些內容。我首先想強調團隊在本季完成的幾個重要戰略里程碑，並提供有關 McGrath 交易的簡要狀態更新。

First, in January, we combined our legacy WillScot and Mobile Mini sales and operations teams under a single leadership structure organized by geography. This allows us to go to market locally with a single team that can service our customers across our full offering of turnkey space solutions. Our team is now empowered to present our full suite of capabilities to every customer at every opportunity.

首先，一月份，我們將原有的 WillScot 和 Mobile Mini 銷售和營運團隊合併到按地理位置組織的單一領導結構。這使我們能夠透過一個團隊進入本地市場，為我們的客戶提供全面的交鑰匙空間解決方案。我們的團隊現在有能力利用每個機會向每位客戶展示我們的全套功能。

And my colleagues are equally excited for their own career development and growth opportunities inherent in this structure. Next, and to support this field integration, in March, we consolidated and upgraded our field service and dispatch systems, which allow us to better utilize our logistic resources across all product lines, while improving execution, safety and customer communication. As a result, our team can now leverage all available trucks, drivers and service crews across the market.

我的同事們也對這種結構中固有的職涯發展和成長機會感到興奮。接下來，為了支援這項現場整合，我們在三月整合並升級了我們的現場服務和調度系統，這使我們能夠更好地利用所有產品線的物流資源，同時提高執行力、安全性和客戶溝通。因此，我們的團隊現在可以利用市場上所有可用的卡車、司機和服務人員。

As we progress through the remainder of 2024, we'll be deploying the latest available route optimization and logistics management tools. With these tools in place, we can in turn accelerate the insourcing of these crucial services, which further differentiates us from competitors and improves both customer service and profitability. Our drivers and service teams are consistently recognized by our NPS promoters, and we're putting in place the systems to build upon that advantage.

隨著 2024 年剩餘時間的進展，我們將部署最新的可用路線最佳化和物流管理工具。有了這些工具，我們就可以加速這些關鍵服務的內包，這進一步使我們與競爭對手區分開來，並改善客戶服務和獲利能力。我們的司機和服務團隊一直受到 NPS 推廣者的認可，我們正在建立系統來鞏固這一優勢。

This is just one example of how we're advancing our digital road map using customer feedback to enhance nearly every aspect of the customer experience. We're also focusing on improving our external technology interfaces. By Q3, we'll consolidate our 6 websites into 1, supported by the latest technology to promote awareness and drive demand across our full offering of turnkey space solutions. This will include an enhanced customer portal with expanded customer self-service capabilities, which will both simplify key customer touch points and improve our back office efficiency.

這只是我們如何利用客戶回饋來推進數位路線圖以增強客戶體驗的幾乎各個方面的一個例子。我們也致力於改進我們的外部技術介面。到第三季度，我們將在最新技術的支援下將 6 個網站合併為 1 個，以提高人們對我們全套交鑰匙空間解決方案的認知度並推動需求。這將包括增強的客戶入口網站和擴展的客戶自助服務功能，這將簡化關鍵客戶接觸點並提高我們的後台效率。

These enhancements are also in direct response to the feedback we get from our customers. And finally, in support of sales force effectiveness, I'm particularly excited about our recently launched proprietary sales tool we call Project One. Project One leverages multiple third-party and internally generated data sources to identify developing project opportunities well ahead of initial bidding across our largest customer segments. These opportunities are profiled by algorithms informed by our vast transaction history.

這些增強功能也是對我們從客戶那裡獲得的回饋的直接回應。最後，為了支持銷售人員的有效性，我對我們最近推出的專有銷售工具（我們稱之為「專案一」）感到特別興奮。專案一利用多個第三方和內部產生的資料來源，在我們最大的客戶群的初始投標之前就確定開發專案的機會。這些機會是透過我們龐大的交易歷史記錄得出的演算法來描述的。

We then estimate the full turnkey space solution requirements for each project, which are then automatically assigned to the most appropriate local sales expert based upon size and geography. This gives us a platform to optimize selling time, improve cross-sell and conversion and to be more prescriptive and recommended bundled solutions that are tailored by product -- project type.

然後，我們估算每個專案的完整交鑰匙空間解決方案需求，然後根據規模和地理位置自動分配給最合適的當地銷售專家。這為我們提供了一個平台，可以優化銷售時間、改善交叉銷售和轉化，並提供根據產品（項目類型）量身定制的更具規範性和推薦性的捆綁解決方案。

Taking a step back over the past 3 years, our team is diligently and painstakingly worked to harmonize our business processes and underlying systems while dramatically growing the business and expanding profitability. With this foundation in place, we've now harmonized our teams and are in a position to even more seamlessly integrate new businesses and deploy technology more offensively, enhancing every aspect of the customer experience and further differentiating our unrivaled customer value proposition.

回顧過去的三年，我們的團隊勤奮、艱苦地工作，協調我們的業務流程和底層系統，同時大幅成長業務並擴大獲利能力。有了這個基礎，我們現在已經協調了我們的團隊，並且能夠更加無縫地整合新業務並更具進攻性地部署技術，從而增強客戶體驗的各個方面，並進一步使我們無與倫比的客戶價值主張與眾不同。

I'd like to thank the team for their safe and flawless execution during these complex initiatives, which will further accelerate our growth as we continue to execute the $1 billion of idiosyncratic growth levers to the benefit of all stakeholders for years to come.

我要感謝團隊在這些複雜的舉措中安全、完美地執行，這將進一步加速我們的發展，因為我們將在未來幾年繼續執行 10 億美元的特殊成長槓桿，為所有利益相關者帶來利益。

Now turning to Slide 26. Consistent with our history of execution and value creation, we announced a definitive agreement to acquire McGrath in January that we expect to close in the second half of 2024. We see tremendous opportunities to drive incremental value for our collective customers, communities, employees and shareholders. Our assets, our geographical footprints and customer segments are each unique but fit well together, resulting in broader turnkey space solutions, enhanced customer service capability and additional career opportunities for our colleagues.

現在轉向幻燈片26。的巨大機會、社區、員工和股東。我們的資產、地理足跡和客戶群各自獨特，但又很好地結合在一起，從而為我們的同事提供了更廣泛的交鑰匙空間解決方案、增強的客戶服務能力和額外的職業機會。

I'd like to highlight several examples of value drivers associated with combining these two unique platforms. First, we'll cross-sell the comprehensive WillScot VAPS portfolio as we've successfully done in all past acquisitions. McGrath has already begun this journey through their MM plus offering, and we believe we can accelerate this growth while improving overall customer satisfaction. Second, McGrath customers will benefit from access to WillScot's innovative FLEX, clearspan and climate control solution WillScot customers will, in turn, benefit from McGrath's Kitchens-To-Go, Enviroplex and custom modular sales capability.

我想重點介紹與這兩個獨特平台結合相關的價值驅動因素的幾個範例。首先，我們將交叉銷售全面的 WillScot VAPS 產品組合，就像我們在過去所有收購中成功完成的那樣。 McGrath 已經透過他們的 MM plus 產品開始了這一旅程，我們相信我們可以加速這一成長，同時提高整體客戶滿意度。其次，McGrath 的客戶將受益於 WillScot 的創新 FLEX、clearspan 和氣候控制解決方案。

We'll benefit from McGrath's expertise in serving the education sector, which is the one great example of how we can grow in new industry verticals. McGrath's inventory centers have clear efficiency benefits, which WillScot can pass on to our customers. We'll leverage our in-house WillScot transportation and service crews to better service the McGrath customers. We'll share fleet across the combined network, realizing capital synergies. We'll optimize the combined real estate footprint over time. We'll integrate the best-in-class safety, learning and development, community engagement programs, all building on our great Place to Work certification.

我們將受益於 McGrath 在教育產業服務方面的專業知識，這是我們如何在新的垂直產業中發展的一個很好的例子。 McGrath 的庫存中心具有明顯的效率優勢，WillScot 可以將其傳遞給我們的客戶。我們將利用我們內部的 WillScot 運輸和服務人員來更好地為 McGrath 客戶提供服務。我們將在合併後的網路中共享機隊，實現資本協同效應。隨著時間的推移，我們將優化合併的房地產足跡。我們將整合一流的安全、學習和發展、社區參與計劃，所有這些都建立在我們出色的工作場所認證的基礎上。

And finally, WillScot's technology platform can support all of this with seamless integration, thanks to our prior investments. To the right on this slide, we've highlighted how these drivers check all the boxes with respect to value creation. The list of potential benefits goes on and on with advantages for all stakeholders, which makes us excited about the combined future.

最後，由於我們先前的投資，WillScot 的技術平台可以透過無縫整合支援所有這些。在這張投影片的右側，我們重點介紹了這些驅動因素如何檢查與價值創造相關的所有方框。潛在的好處不勝枚舉，為所有利害關係人帶來了好處，這讓我們對合併後的未來感到興奮。

Most importantly, these are underpinned by 2 outstanding teams. While our interactions are appropriately limited until we close, everyone, we've had the opportunity to collaborate with thus far has been fantastic. We've been particularly impressed by McGrath's team's customer focus, pragmatic approach to problem-solving and strong work ethic. I believe that the McGrath culture is truly complementary to ours with both built on a customer first, common drive to excellence and focus on unlocking value for all stakeholders.

最重要的是，這些都是由兩支出色的團隊支撐的。雖然我們的互動在交易結束之前受到適當限制，但迄今為止我們有機會合作的每個人都很棒。 McGrath 團隊以客戶為中心、解決問題的務實方法以及強烈的職業道德給我們留下了特別深刻的印象。我相信 McGrath 文化與我們的文化真正互補，兩者都建立在客戶至上、共同追求卓越的基礎上，並專注於為所有利益相關者釋放價值。

Finally, I'll touch on the progress supporting the FTC's review of this transaction. I know there's been a lot of noise and speculation around this process as there is with virtually all M&A transactions these days. We don't engage in speculation or hypotheticals. We put our heads down and go to work. We have excellent advisers who are experienced in the process and are intimately familiar with our facts and circumstances.

最後，我將談談支持聯邦貿易委員會 (FTC) 審查此交易的進展。我知道圍繞這個過程有很多噪音和猜測，就像現在幾乎所有的併購交易一樣。我們不參與猜測或假設。我們低下頭去工作。我們擁有優秀的顧問，他們在這過程中經驗豐富，並且非常熟悉我們的事實和情況。

We're engaged in a productive dialogue with the FTC, which has been both collaborative and professional. We expect that we'll have complied with all of the FTC's information request in the second quarter. And based upon our progress working with the FTC, expect that we'll be in a position to close the transaction in the second half of 2024. Further, we anticipate that McGrath will be in a position to hold its shareholder vote in early Q3. And as we progress the year, we'll remain opportunistic as to how and when we replace the bridge financing.

我們正在與聯邦貿易委員會進行富有成效的對話，對話既協作又專業。我們預計我們將在第二季遵守聯邦貿易委員會的所有資訊要求。根據我們與 FTC 合作的進展，預計我們將能夠在 2024 年下半年完成交易。隨著今年的進展，我們將在如何以及何時更換過橋融資方面保持機會主義。

We clearly have a proven formula to drive sustainable growth and value creation. Our acquisition of McGrath has clear benefits for all stakeholders and will both accelerate our growth and proportionately increase the $1 billion of idiosyncratic growth levers fully in our control.

我們顯然有一個行之有效的公式來推動永續成長和價值創造。我們對 McGrath 的收購對所有利害關係人來說都有明顯的好處，不僅會加速我們的成長，還會按比例增加我們完全掌控的 10 億美元的特殊成長槓桿。

We continue to see $700 million of free cash flow and $4 of free cash flow per share is important milestones that will surpass in due course. And I'm incredibly proud of the tireless and expert execution by our teams to deliver the transaction, transform how we do business and execute every day in the field on behalf of our customers. With that, I'll hand it over to Tim to discuss our Q1 results and highlight how these strategic initiatives support our outlook for 2024 and well beyond.

我們繼續看到 7 億美元的自由現金流和每股 4 美元的自由現金流是重要的里程碑，將在適當的時候超越。我對我們的團隊在交付交易、改變我們的業務方式以及代表客戶在現場執行日常工作時所表現出的不懈和專家執行力感到無比自豪。接下來，我將把它交給 Tim 來討論我們的第一季業績，並強調這些策略舉措如何支持我們對 2024 年及以後的前景。

Thank you, Brad, and good afternoon and good evening, everyone. Page 32 shows a high-level summary of the quarter. Our Q1 results were in line with our overall expectations for the year, so we're off to a good start and on track to deliver yet another year of record financial performance.

謝謝布拉德，大家下午好、晚上好。第 32 頁顯示了本季的高級摘要。我們第一季的業績符合我們今年的整體預期，因此我們有了一個良好的開端，並有望再創一年創紀錄的財務表現。

I'll start with some commentary on market conditions to provide some context for the results. Nonresidential square foot starts continued to decline to start the year, but appear to be stabilizing in line with 2019 levels. We still see the mix of nonresidential projects skewing larger and view that as a multiyear tailwind supported both by the various federal spending programs as well as reshoring trends favoring North America.

我將從對市場狀況的一些評論開始，為結果提供一些背景資訊。今年年初，非住宅平方英尺開工量持續下降，但似乎與 2019 年水準持平。我們仍然看到非住宅項目的組合傾斜更大，並認為這是各種聯邦支出計劃以及有利於北美的回流趨勢支持的多年順風。

In the short term, smaller, more transactional and interest rate sensitive projects remain challenged, and we can see this mix shift in the mix of our modular and storage activity. Modular activations are building sequentially and year-over-year with a very strong order backlog heading into Q2. Modular activations were up almost 5% year-over-year in the 13-week period ending in April. So heading into Q2, modular product is performing on track with our original plans for the year.

短期內，規模較小、交易性更強和利率敏感的專案仍然面臨挑戰，我們可以在模組化和儲存活動的組合中看到這種組合轉變。模組化活化正在逐年逐年建立，進入第二季的訂單積壓非常強勁。截至 4 月的 13 週內，模組活化量年增近 5%。因此，進入第二季度，模組化產品的表現符合我們今年的原始計畫。

Storage volumes, on the other hand, continue to lag modular, which we expected. And while monthly activation rates have increased sequentially into April, consistent with normal seasonality, those increases are below our original plans. So we continue to have some risk from storage volumes but also haven't yet seen the benefits of the various organization and system enhancements that Brad referenced and there are plenty of opportunities to improve performance here.

另一方面，儲存量繼續落後於模組化，這是我們所期望的。雖然到 4 月份月度啟動率已連續上升，與正常的季節性一致，但這些增幅低於我們最初的計劃。因此，我們仍然面臨儲存卷帶來的一些風險，但還沒有看到布拉德提到的各種組織和系統增強的好處，並且這裡有很多提高效能的機會。

Pricing remains very strong across all product lines with average monthly rate growth of 11% year-over-year in modular and 22% year-over-year in storage. Value-Added Products are inflecting well across both major product categories and are another area where we have opportunity in the remainder of the year. As you can see on Page 14, Value-Added Products on our modular activations of $393 per unit per month over the last 12 months is 30% over the average of the portfolio and inflected positively year-over-year in Q1 as expected.

所有產品線的定價仍然非常強勁，模組化產品的月平均成長率為 11%，儲存產品的月平均成長率為 22%。增值產品在兩個主要產品類別中都表現良好，是我們在今年剩餘時間裡有機會的另一個領域。正如您在第14 頁上看到的，在過去12 個月中，我們模組化激活的增值產品為每月每單位393 美元，比投資組合的平均水平高出30%，並且在第一季同比出現了積極的變化，正如預期的那樣。

And Value-Added Products on storage activations in the last 12 months of $32 per unit per month are up 62% year-over-year. So we continue to be quite excited about both of these revenue streams. So overall, we had a healthy mix of leasing KPIs that drove 5% lease revenue growth in the quarter, with storage volumes being the obvious red flag and overall macro conditions heading into the second half being the biggest question mark.

過去 12 個月，儲存啟動加值產品的價格為每月每單位 32 美元，年增 62%。因此，我們仍然對這兩種收入來源感到非常興奮。因此，總體而言，我們擁有健康的租賃 KPI 組合，推動本季租賃收入成長 5%，其中儲存量是明顯的危險訊號，下半年的整體宏觀狀況是最大的問號。

Nonetheless, we generated $587 million of revenue, $461 million of leasing revenue and $248 million of adjusted EBITDA, all of which was right in line with our plan for the quarter. Adjusted EBITDA margin of 42% contracted both sequentially and year-over-year, but was slightly better than we had expected for the quarter, and I expect margins will expand meaningfully in the second half of the year as lease revenues build and we realize efficiencies from our recent system enhancements.

儘管如此，我們還是創造了 5.87 億美元的收入、4.61 億美元的租賃收入和 2.48 億美元的調整後 EBITDA，所有這些都符合我們本季的計劃。調整後 EBITDA 利潤率為 42%，環比和同比均有所收縮，但略好於我們對本季度的預期，我預計隨著租賃收入的增加和我們實現效率的提高，下半年利潤率將大幅增長來自我們最近的系統增強。

And cash flow and returns continue to be outstanding. Free cash flow was up 40% year-over-year in the quarter at a 25% free cash flow margin. Return on invested capital over the last 12 months is 17%, which is also in the middle of our operating range. And we've generated $618 million of free cash flow over the last 12 months, which represents $3.24 of free cash flow per share and is compounding predictably towards our longer-term milestones.

現金流和回報繼續表現出色。本季自由現金流年增 40%，自由現金流利潤率為 25%。過去 12 個月的投資資本報酬率為 17%，這也處於我們經營範圍的中間位置。在過去 12 個月裡，我們產生了 6.18 億美元的自由現金流，相當於每股 3.24 美元的自由現金流，並且可以預見地，我們的複合年增長率將達到我們的長期里程碑。

Obviously, with the recent pullback in the stock, largely on transaction and macroeconomic concerns, we think our cash flows are significantly undervalued on this trailing metric, let alone prospectively. So we resumed our share repurchases in April accordingly. Overall, it was a good start to the year, and I echo all of Brad's appreciation for the execution by our team across multiple fronts.

顯然，隨著最近股票的回調（主要是由於交易和宏觀經濟擔憂），我們認為我們的現金流在這一跟踪指標上被嚴重低估，更不用說前瞻性了。因此我們在四月相應地恢復了股票回購。總的來說，這是今年的良好開端，我同意布拉德對我們團隊在多個方面的執行力的讚賞。

Page 33 lays out revenue and adjusted EBITDA for the quarter. Total revenue was up 4%, with 5% growth in our leasing revenues, partly offset by a 6% decline in our transportation revenues, which was driven by lower volumes of storage activations and returns. Adjusted EBITDA margin of 42% was down both sequentially and year-over-year, although slightly ahead of what we anticipated heading into the quarter. This sequential contraction was expected and driven by two factors that should reverse as we progress through the year.

第 33 頁列出了本季的收入和調整後的 EBITDA。總收入增長了 4%，其中租賃收入增長了 5%，但運輸收入因存儲激活和退貨量減少而下降 6%，部分抵消了這一下降。調整後 EBITDA 利潤率為 42%，環比和年比均有所下降，但略高於我們對本季的預期。這種連續收縮是可以預期的，並由兩個因素驅動，隨著今年的進展，這兩個因素應該會逆轉。

First, storage unit movements we expect were at their low point for the year in Q1. So as the overall volume of movements increases through the course of the year, we'll get better leverage out of our trucking fleet and more opportunities to in-source transportation. Secondly, repair and maintenance activity for modular products is ramping as we head into Q2, supporting year-over-year increases in work order activity and delivery volumes.

首先，我們預計第一季的儲存單位移動量將達到今年的最低點。因此，隨著全年運輸總量的增加，我們將更好地利用我們的卡車車隊，並獲得更多的內源運輸機會。其次，隨著進入第二季度，模組化產品的維修和維護活動正在增加，支持工單活動和交付量的年增長。

We expect leasing margins to reflate naturally as lease revenue compounds and maintenance expenses stabilized through the year. And lastly, with our system enhancements in Q1, we are beginning to see efficiency gains that we believe will begin building in Q3 and into 2025. So we continue to anticipate margin expansion in 2024, albeit weighted to the second half of this year and sustained into 2025 given those drivers.

我們預計，隨著全年租賃收入的複合和維護費用的穩定，租賃利潤率將自然回升。最後，隨著我們在第一季的系統增強，我們開始看到效率的提高，我們相信這將在第三季開始並持續到2025 年。加權到今年下半年並持續考慮這些驅動因素，到 2025 年。

Lastly, before shifting to cash flow. I do want to flag approximately $15 million of integration and transaction-related costs in the quarter related to the signing of the McGrath transaction and support for the regulatory review process. This cost us approximately $0.06 per share in the quarter, and I expect we'll continue at roughly $10 million per quarter for the rest of the year. So overall, Q1 results were consistent with our original plans and guidance for the year, and we'll talk about our views on risks and opportunities when we get to the guidance.

最後，在轉向現金流之前。我確實想指出本季與 McGrath 交易簽署和監管審查流程支援相關的約 1500 萬美元的整合和交易相關成本。本季我們的每股成本約為 0.06 美元，我預計今年剩餘時間我們將繼續保持每季約 1000 萬美元的成本。因此，總體而言，第一季的結果與我們最初的計劃和今年的指導是一致的，當我們到達指導時，我們將討論我們對風險和機會的看法。

Moving to Page 34. Cash flow continues to be a strength. We generated $209 million from operating activities in Q1, up 40% year-over-year, driven by our predictable recurring lease revenues. Net CapEx increased 41% year-over-year to $65 million due to investments in work orders to support modular activations as well as new climate controlled storage units as we build out that offering organically.

翻至第 34 頁。在我們可預測的經常性租賃收入的推動下，我們第一季的營運活動創造了 2.09 億美元的收入，年增 40%。淨資本支出年增 41%，達到 6500 萬美元，這是由於我們在有機構建該產品時對支持模組化激活的工作訂單以及新的氣候控制存儲單元進行了投資。

All in, we generated $144 million of free cash flow during the quarter, which was up 40% year-over-year and at a 26% margin over the last 12 months, which is in the middle of our target operating range. Free cash flow per share of $0.75 in the quarter was up over 80% year-over-year and continues to compound towards our longer-term milestones. We are quite comfortable eclipsing $4 of free cash flow per share in the next 2 years and before incorporating the impact of McGrath and believe this predictability and best-in-class cash flow profile are key differentiating features of our business.

總而言之，我們在本季產生了 1.44 億美元的自由現金流，年增 40%，過去 12 個月的利潤率為 26%，處於我們目標營運範圍的中間。本季每股自由現金流為 0.75 美元，年成長超過 80%，並繼續向我們的長期里程碑複合。在考慮麥格拉斯的影響之前，我們對未來兩年每股自由現金流超過 4 美元感到非常滿意，並相信這種可預測性和一流的現金流狀況是我們業務的關鍵差異化特徵。

Turning to Page 35. We maintained leverage sequentially from Q4 to Q1 at 3.3x net debt to last 12 months adjusted EBITDA, which is comfortably inside our leverage target of 3.0 to 3.5x. Leverage is on a downward trend heading into Q2. And as I've said previously, we can easily deleverage by approximately 1x per year when we so choose. So we are comfortable at this level and intend to flex leverage upwards upon closing the McGrath acquisition and then deleverage again back into our target range within 12 months post closing.

轉向第 35 頁。進入第二季度，槓桿率呈下降趨勢。正如我之前所說，如果我們願意的話，我們可以輕鬆地每年去槓桿化約 1 倍。因此，我們對這個水平感到滿意，並打算在完成 McGrath 收購後向上調整槓桿率，然後在完成後 12 個月內再次去槓桿化回到我們的目標範圍。

In January 2024, we executed a floating to fixed SOFR swap for $500 million of notional value at a fixed rate of 3.7% for 1-month term SOFR. As of March 31, 2024, our weighted average pretax cost of debt is approximately 5.9% with annualized cash interest of approximately $207 million or $220 million inclusive of noncash deferred financing fees. Our debt structure is approximately 80% fixed and 20% floating. We have ample liquidity to refinance our 2025 notes at any time to optimize interest costs. And as we discussed upon announcing the McGrath transaction, we have committed financing and ABL capacity available for 100% of the cash consideration, and we'll refinance those commitments opportunistically as we progress towards closing.

2024 年 1 月，我們執行了名目價值 5 億美元的浮動 SOFR 互換，固定利率為 3.7%，期限為 1 個月 SOFR。截至 2024 年 3 月 31 日，我們的加權平均稅前債務成本約為 5.9%，年化現金利息約為 2.07 億美元或 2.2 億美元，包括非現金遞延融資費用。我們的債務結構約 80% 是固定債務，20% 是浮動債務。我們擁有充足的流動性，可以隨時為 2025 年票據進行再融資，以優化利息成本。正如我們在宣布 McGrath 交易時所討論的那樣，我們已承諾提供 100% 現金對價的融資和 ABL 能力，並且隨著交易的進展，我們將適時為這些承諾再融資。

Page 36 shows our capital allocation framework and our performance over the last 12 months. We invested approximately $200 million over the last 12 months in organic fleet investments, which has been on the lower end of historical norms given the demand environment. We invested over $500 million in acquisitions over the last 12 months, the majority of which went towards our new cold storage and clearspan platforms. And while we did not repurchase any shares in Q1 2024, we've repurchased over $600 million or 13.9 million shares over the last 12 months, resulting in a 6.4% reduction in our outstanding share count.

第 36 頁顯示了我們的資本配置架構以及過去 12 個月的表現。過去 12 個月，我們在有機機隊投資上投資了約 2 億美元，考慮到需求環境，這項投資處於歷史水平的較低水平。在過去 12 個月裡，我們投資了超過 5 億美元進行收購，其中大部分用於我們的新冷儲存和 Clearspan 平台。雖然我們在 2024 年第一季沒有回購任何股票，但在過去 12 個月裡我們回購了超過 6 億美元或 1,390 萬股股票，導致我們的流通股數量減少了 6.4%。

One silver lining from the delay in closing McGrath is that it actually gives us more near-term flexibility to allocate capital. So we resumed share repurchases opportunistically in April as valuations dropped. We'll continue to be opportunistic with repurchases while ensuring that we maintain the target post-closing leverage that we structured for the McGrath transaction.

延遲關閉 McGrath 帶來的一線希望是，它實際上為我們提供了更多的短期靈活性來分配資本。因此，隨著估值下降，我們在四月伺機恢復了股票回購。我們將繼續伺機回購，同時確保維持為 McGrath 交易設定的目標交割後槓桿率。

Before turning it back to Brad, Page 37 shows our outlook for 2024, which is unchanged. We are maintaining the outlook that we issued during the Q4 2023 call, given that Q1 was in line with our internal plans. We continue to take a cautious view of the macro and our storage volumes are an obvious headwind as we've discussed. Relative to our original guidance, we see some potential offsetting upside for modular products, value-added products and margins.

在回到 Brad 之前，第 37 頁顯示了我們對 2024 年的展望，而這項展望沒有改變。鑑於第一季符合我們的內部計劃，我們維持 2023 年第四季電話會議期間發布的展望。我們繼續對宏觀形勢持謹慎態度，正如我們所討論的，我們的儲存量是一個明顯的阻力。相對於我們最初的指導，我們看到模組化產品、加值產品和利潤率存在一些潛在的抵銷性上行空間。

In terms of the sequential cadence for the next few quarters, we continue to see a steady mid-single-digit sequential revenue growth each quarter as we progress through the year, which is consistent with our original outlook. However, with more of that revenue growth coming from modular and with the lower volume of storage movements impacting trucking, I expect margins could be sequentially flat into Q2, with more of the margin expansion materializing in Q3 and Q4. So that margin cadence is slightly different than our original outlook, though perfectly logical given the mix of activity as well as the cost efficiencies that we are identifying.

就未來幾季的環比節奏而言，隨著全年的進展，我們將繼續看到每個季度的穩定中個位數環比收入成長，這與我們最初的預期一致。然而，由於更多的收入成長來自模組化，並且影響卡車運輸的儲存量減少，我預計第二季的利潤率可能會持平，更多的利潤率擴張將在第三季和第四季實現。因此，利潤節奏與我們最初的預期略有不同，儘管考慮到我們正在確定的活動組合以及成本效率，這是完全合乎邏輯的。

Capital expenditure plans for the year are unchanged. Given the performance of modular volumes and Value-Added Products, we are investing in refurbishments, flex units and Value-Added Products for both the modular and the storage fleet. Our organic plans for cold storage are on track, so we are adding fleet there organically. And we never planned any CapEx for the dry storage business based on where utilization levels were entering the year. So obviously, no change to that plan based on where we sit right now.

本年度資本支出計畫不變。鑑於模組化捲和增值產品的性能，我們正在為模組化和儲存車隊投資翻新、靈活單元和增值產品。我們的冷藏有機計劃正在按計劃進行，因此我們正在有機地增加冷藏車隊。我們從未根據進入當年的利用率水準來規劃幹儲存業務的任何資本支出。顯然，根據我們現在的情況，該計劃不會發生變化。

Lastly, for modeling purposes, I will flag the roughly $10 million per quarter of expenses going forward related to the McGrath regulatory and integration processes, which will impact EPS and cash flow. So like any year, 2024 is playing out a bit differently than we originally planned, but the beauty of our business is that we have a lot of different levers with which to drive results on top of the inherent predictability of our cash flows. Anywhere within the guidance range will represent another record year for the company across almost every financial metric and implies a growing run rate into 2025.

最後，出於建模目的，我將標記與 McGrath 監管和整合流程相關的每季約 1000 萬美元的支出，這將影響每股收益和現金流。因此，與任何一年一樣，2024 年的情況與我們最初的計劃略有不同，但我們業務的美妙之處在於，除了現金流固有的可預測性之外，我們還擁有許多不同的槓桿來推動業績。在指導範圍內的任何地方都將代表該公司在幾乎所有財務指標上再創紀錄的一年，並意​​味著到 2025 年運行率將持續增長。

And by the end of the year, we expect to have the McGrath team on board. And together, we will begin unlocking all of those value levers that Brad articulated and which will compound powerfully across our platform and predictably over time. So we have some work to do in the remainder of the year to set that stage, but that outlook is extremely energizing for our team here, and we're up to the challenge. With that, Brad, I'll hand it back to you.

到今年年底，我們預計 McGrath 團隊將會加入。我們將共同開始釋放布拉德所闡述的所有這些價值槓桿，這些槓桿將在我們的平台上產生強大的複合作用，並且隨著時間的推移，可以預見的是。因此，我們在今年剩餘時間內需要做一些工作來奠定基礎，但這種前景對我們的團隊來說非常充滿活力，我們已經準備好迎接挑戰。這樣，布拉德，我會把它還給你。

Thanks, Tim. Thank you to our customers for their continued business, thank you to our team for their focus on safety and customer satisfaction and thank you to our shareholders for your trust with your capital. I wish all of you listening today continued safety and good health. This concludes our prepared remarks. Operator, would you please open the line for questions.

謝謝，蒂姆。感謝我們的客戶持續開展業務，感謝我們的團隊對安全和客戶滿意度的關注，並感謝我們的股東對資本的信任。我祝福今天聆聽的所有人繼續安全和身體健康。我們準備好的演講到此結束。接線員，請開通提問線路。

(Operator Instructions) And our first question will come from the line of Scott Schneeberger with Oppenheimer.

（操作員說明）我們的第一個問題將來自斯科特·施內伯格（Scott Schneeberger）和奧本海默（Oppenheimer）的線路。

Tim, could you elaborate kind of in closing your remarks, you mentioned 2024, unlike originally expected and some work to do anywhere within the range will be, again, another nice year of growth. But just reading between the lines, where are you with regard to the guidance range right now? And what are the puts and takes the changes this year, specifically, if you just with the top 3 or 4 that are different than expected as far as it trends?

提姆，您能否在結束語時詳細說明一下，您提到 2024 年，與最初的預期不同，在該範圍內的任何地方要做的一些工作將再次成為另一個增長的好年份。但從字裡行間看，你現在的指導範圍在哪裡？今年的看跌期權和看跌期權有哪些變化，具體來說，如果您只列出前 3 或 4 名與預期趨勢不同的股票？

Yes, Scott, really not much has changed. And hence, the guidance range is unchanged. If you just think about where we landed in Q1, it was right on top of our internal plans, which is good. I commented that a good place to center would be on mid-single-digit sequential revenue growth quarter-to-quarter for the rest of the year, which probably puts you right in the middle of our guidance range and right where we expected. So there's really no change to the revenue outlook based on where we finished Q1 and what we see heading into Q2.

是的，斯科特，確實沒有太大改變。因此，指導範圍不變。如果你只考慮我們在第一季的目標，它就在我們內部計劃的頂部，這很好。我評論說，今年剩餘時間裡，一個好的中心位置是季度環比中個位數的收入成長，這可能會讓你處於我們的指導範圍的中間和我們預期的位置。因此，根據我們第一季的結束情況和第二季的情況，收入前景實際上沒有變化。

The only thing that has changed is that we've got a stronger mix of modular activations relative to storage versus what we would have originally budgeted. And that does two things. It means that the maintenance activity that we incur at the outset of a modular lease, we're going to continue to incur and that creates a short-term pressure on margins, but it means you're building that 3-year lease stream, which is a wonderful trade-off.

唯一改變的是，與我們最初的預算相比，我們在儲存方面有了更強大的模組化啟動組合。這有兩件事。這意味著我們在模組化租賃開始時進行的維護活動將繼續進行，這會對利潤率造成短期壓力，但這意味著您正在建立為期 3 年的租賃流，這是一個很好的權衡。

And then because the both activations and returns of storage units, I refer to those as total movements, are lower than we expected. That means you're getting less operating leverage over the fixed cost in our trucking fleet. And those two factors are what are causing me to think that EBITDA margins are likely sequentially flat from Q1 to Q2 and then really begin to expand in Q3 and Q4.

然後，因為儲存單元的啟動和返回（我稱之為總移動）都低於我們的預期。這意味著您在我們的貨運車隊的固定成本中獲得的營運槓桿更少。這兩個因素使我認為 EBITDA 利潤率可能從第一季到第二季連續持平，然後在第三季和第四季真正開始擴張。

If I contrast that with our original guidance, I would have expected a more even expansion of EBITDA margins over time. But the implication for the run rate, as we exit the year going into 2025, puts us in a very good spot both in the original guidance and in this guidance. So it's kind of a nuanced change around the mix of activity in the business, but overall, no real change to the outlook.

如果我將其與我們最初的指導進行對比，我預計 EBITDA 利潤率會隨著時間的推移而更加均勻地擴張。但隨著我們進入 2025 年，運行率的影響使我們在最初的指導和本指導中都處於非常好的位置。因此，這是圍繞業務活動組合的微妙變化，但總體而言，前景沒有真正的變化。

All right. I'll let others follow up on that. I appreciate all that. I'm going to go now to the mention of share repurchase in April. And it looks like we'll get a decision on the closing of McGrath later in the year. So it's given you a little bit more flexibility with how to apply cash in the interim. So are you open to sharing how much you've repurchased in April so far? And just whether you answer that one or not, just what are your thoughts on applying your capital here in the interim?

好的。我會讓其他人跟進此事。我很感激這一切。我現在要談談四月的股票回購。看起來我們將在今年晚些時候做出關閉 McGrath 的決定。因此，它為您提供了在此期間如何使用現金的更多靈活性。那麼您是否願意分享您在 4 月到目前為止回購了多少商品？不管你是否回答這個問題，你對在此期間運用你的資金有何想法？

Look, we're not going to share the exact amounts, Scott. But if you think back to our capital allocation framework for the last couple of years, repurchases have been a consistent mechanism to return capital to shareholders and amplify and compound returns. And we are still very enthusiastic about that lever. We had paused repurchases back in Q4 and for the duration of Q1 as we were working on the McGrath transaction.

聽著，我們不會分享確切的金額，史考特。但如果你回想一下我們過去幾年的資本配置框架，回購一直是向股東返還資本並放大和複合回報的一致機制。我們仍然對這個槓桿充滿熱情。由於我們正在處理 McGrath 交易，我們在第四季度和第一季暫停了回購。

But to your point, the silver lining of the delay in the FTC process is that we have internally generated cash flow and balance sheet capacity that we need to deploy as responsible stewards of shareholder capital. So the repurchase is absolutely a wonderful use of capital at these valuations, and we intend to continue that deployment here as we progress through Q2.

但就您的觀點而言，聯邦貿易委員會程序延遲的一線希望是，我們擁有內部產生的現金流和資產負債表能力，我們需要將其部署為負責任的股東資本管理者。因此，在這些估值下，回購絕對是一種很好的資本利用，我們打算在第二季繼續進行這種部署。

I also said in my remarks that we are going to flex leverage up to close the McGrath transaction, and we're very cognizant of that. So we will not do anything from a capital allocation standpoint between now and closing that would increase that post-closing leverage beyond that, which we talked about when we announced the transaction, and that was about 4.25x leverage. And as we said at the time and reiterated today, we'll reduce that by a full turn within 12 months post closing.

我還在演講中說過，我們將提高槓桿率來完成麥格拉斯交易，我們非常清楚這一點。因此，從現在到交割期間，從資本配置的角度來看，我們不會做任何會增加交割後槓桿率的事情，我們在宣布交易時談到了這一點，即槓桿率約為 4.25 倍。正如我們當時所說和今天重申的那樣，我們將在交易結束後 12 個月內將其減少一整週。

One moment for our next question. And that will come from the line of Manav Patnaik with Barclays.

請稍等一下我們的下一個問題。這將來自馬納夫·帕特奈克 (Manav Patnaik) 與巴克萊銀行 (Barclays) 的血統。

This is Ronan Kennedy on for Manav. Can I just confirm the driver of the last 12 months delivered VAPS down 2%? And then what last 12 months VAPS modular units and modular segment was given the switch that was made last year? And then what you're quoting now?

我是馬納夫的羅南肯尼迪。我能否確認過去 12 個月交付的 VAPS 下降 2% 的駕駛者？那麼過去 12 個月的 VAPS 模組化單元和模組化部分被賦予了去年製造的開關？那你現在引用的是什麼呢？

Ronan. So on Page 14, you'll see that we had about $393 per unit per month of Value-Added Products all modular activations over the last 12 months. That number includes some third-party managed services from the legacy storage segment. So it's a little higher than the number that you would have seen last quarter. And we included that as a function of the segment consolidation this quarter. In Q1, if we just isolate the last 3 months, that metric is up year-over-year.

羅南。因此，在第 14 頁上，您將看到我們在過去 12 個月中所有模組化啟動的增值產品每月每單位約 393 美元。該數字包括來自傳統儲存領域的一些第三方託管服務。因此，這個數字略高於上個季度的數字。我們將其作為本季細分市場合併的函數。在第一季度，如果我們只關注過去 3 個月，該指標同比有所上升。

So we've been waiting to see this inflection in the modular VAPS delivered rates, which we have indeed seen and we see that continuing into Q2. And yes, you can infer that the leading edge on that metric is higher than that, which we've reported here. So very pleased actually with the turnaround in that metric and the penetration levels we're seeing across the team. And I do want to highlight the storage Value-Added Products as well, right? It doesn't look like much, but $32 per unit per month, up over 60% year-over-year with a leading edge that's well above that $32 number, that's exactly what we said we were going to do and we introduced Value-Added Products for this asset class, and it's starting to really get some traction.

因此，我們一直在等待看到模組化 VAPS 交付率的這種變化，我們確實已經看到了這種情況，我們看到這種情況會持續到第二季​​。是的，您可以推斷該指標的領先優勢高於我們在此報告的值。實際上，我們對該指標的轉變以及我們在整個團隊中看到的滲透程度感到非常滿意。我確實想強調儲存增值產品，對吧？看起來不多，但每月每單位 32 美元，同比增長超過 60%，領先優勢遠高於 32 美元的數字，這正是我們所說的我們要做的，我們引入了價值 -為該資產類別添加了產品，並且它開始真正受到一些關注。

And then as a follow-up, some modular activations, I think, are up 5% on track with original plans, which I would assume the implications for units on rent inflection are the same and total units on rent for the year to be flat to down low single digits. What are the implications of what you're seeing on the monthly activation rates and storage being below plans, the risk storage volumes, the ultimate implication for UOR for the year?

然後，作為後續行動，我認為一些模組化激活與原始計劃相比增長了 5%，我認為這對租金變化的單位的影響是相同的，並且今年的租金總單位數持平下降到低個位數。您所看到的情況對月度啟動率和低於計劃的存儲、風險存儲量以及今年 UOR 的最終影響有何影響？

Yes. I think you're right on, actually in terms of your assessment of the modular business. So on track with our original expectations with unit on rent inflecting sometime in the second half, assuming those activation rates are sustained. Activation rates for storage are a bit below our original expectations for the year. And I expect that unit on rent or averaging that on rent is down slightly sequentially into Q2.

是的。我認為您對模組化業務的評估實際上是正確的。因此，假設這些啟動率持續下去，租金單位將在下半年某個時候發生變化，符合我們最初的預期。今年儲存的激活率略低於我們最初的預期。我預計第二季的租金單位或平均租金會略有下降。

And then it really kind of -- Q4 is probably the earliest we'd see a year-over-year unit on rent inflection in the storage business. But again, a few of our enterprise accounts here or there can really move the needle, and I'm encouraged by some of the discussions we're having there.

然後，第四季可能是我們最早看到儲存業務租金出現同比變化的情況。但同樣，我們這裡或那裡的一些企業帳戶確實可以起到推動作用，我們在那裡進行的一些討論讓我感到鼓舞。

One moment for our next question. And that will come from the line of Tim Mulrooney with William Blair.

請稍等一下我們的下一個問題。這將來自蒂姆·馬爾魯尼和威廉·布萊爾的血統。

Just a couple of quick questions here on demand. You highlighted the demand across customer segments supports a unit on rent inflection in the second half of 2024. So that was really interesting. Can you just dig into that a little bit more for us? Is that because you're expecting an improvement in nonresidential construction or retail remodel or some other facet of end market demand in the second half? Just curious what you're seeing that gives you confidence to make that statement.

這裡只是按需提出幾個簡單問題。您強調了跨客戶群的需求支援 2024 年下半年租金拐點的單位。您能為我們深入研究一下嗎？這是因為您預計下半年非住宅建築或零售改造或終端市場需求的其他方面會有所改善嗎？只是好奇你所看到的是什麼讓你有信心做出這樣的聲明。

Tim, this is Tim. So this was our -- we're talking about the modular product, specifically when we say that. And this was always the expectation for the year. It was predicated on mid-single-digit year-over-year activation growth sustained through the course of the year. And because we have 3-year lease duration underpinning the unit on rent portfolio, it takes several consecutive quarters of year-over-year activation growth to cause unit on rent to inflect positively on a year-over-year basis.

提姆，這是提姆。這就是我們的——我們正在談論模組化產品，特別是當我們這麼說的時候。這一直是人們對這一年的期望。這是基於全年持續中個位數的活化量成長而得出的。由於我們的租金組合的租賃期為 3 年，因此需要連續幾個季度的同比激活增長才能導致租金單位同比出現積極變化。

So that is indeed what we've seen now through April. And it's what we see as we look at the backlog into the next 2 months. We don't have perfect visibility, of course, into the second half of the year. But in terms of how we've started the year and what we see going into Q2, it's in line with our original plans. And if it is sustained, it would cause you to on rent to inflect some time in the second half for the modular products.

這確實是我們從四月到現在所看到的情況。這就是我們在查看未來兩個月的積壓訂單時所看到的情況。當然，我們對今年下半年的情況還沒有完美的預見。但就我們今年的開局以及我們對第二季的看法而言，這與我們最初的計劃是一致的。而如果這種情況持續下去，就會導致你在下半年的一段時間裡對模組化產品進行租金調整。

Got it. And so this isn't built on hope. I mean, this is just extrapolating current trends. That's helpful. And I asked this other question last quarter, but I'm going to ask it again, this is on pricing for your portable storage. I'm curious if you could provide what the core portable storage average rental rate growth was in the first quarter, excluding the cold storage acquisition?

知道了。所以這並不是建立在希望之上的。我的意思是，這只是推斷當前的趨勢。這很有幫助。上個季度我問了另一個問題，但我要再問一次，這是關於便攜式儲存的定價。我很好奇您能否提供第一季核心便攜式儲存平均租金成長率是多少（不包括冷藏收購）？

I think last quarter, you said about half of that increase was driven by the cold storage acquisition, but there was some noise, I think, from seasonal retail pricing. So was it about half again this quarter as well and that core portable storage rental rates were up maybe, I don't know, like 10% year-over-year or something like that?

我認為上個季度，您說過大約一半的成長是由冷庫收購推動的，但我認為季節性零售定價帶來了一些噪音。那麼，本季是否也再次上漲了一半左右，而核心便攜式儲存租金率可能（我不知道）比去年同期上漲了 10% 或類似的價格？

I think saying that about half is attributable to cold is a fine way to think about it, Tim. The bigger point here is that we do use product differentiation, broadly speaking, as a way to drive rate and higher value per unit. So even within the traditional storage fleet, you've got standard shipping containers, you've got Mobile Mini branded containers with doors and other specialty features. And we've got differentiated pricing across all of those different products. Cold is just another one that happens to be at a higher price point.

提姆，我認為說大約一半歸因於寒冷是一個很好的思考方式。這裡更重要的一點是，從廣義上講，我們確實利用產品差異化來提高生產力和單位價值。因此，即使在傳統的儲存車隊中，您也有標準的運輸貨櫃、帶有門和其他特殊功能的 Mobile Mini 品牌貨櫃。我們對所有這些不同的產品實行差異化定價。冷飲只是另一種價格較高的產品。

So yes, I do expect we'll continue to have a mix benefit within the storage product class. Part of which is being driven by cold, but part of which is also being driven by those other traditional specialty mobile menu products.

所以，是的，我確實希望我們將繼續在儲存產品類別中獲得混合優勢。其中一部分是由寒冷推動的，但也有一部分是由其他傳統特色行動菜單產品推動的。

One moment for our next question. And that will come from the line of Steven Ramsey with TRG.

請稍等一下我們的下一個問題。這將來自史蒂文·拉姆齊 (Steven Ramsey) 和 TRG 的血統。

This is Kathryn Thompson calling in for Steven today. Looking forward, as you are focused on the McGrath acquisition, you've had a great track record of free cash flow generation and managing CapEx. As you look forward to McGrath, how does that -- what changes are there from your capital expenditure, CapEx profile and free cash as we look forward?

我是凱瑟琳湯普森今天打電話給史蒂文。展望未來，當您專注於收購 McGrath 時，您在自由現金流產生和管理資本支出方面擁有良好的記錄。當您期待麥格拉思時，我們期待您的資本支出、資本支出狀況和自由現金有何變化？

Kathryn, this is Tim, and I'm sure Brad will have some comments to add here. So when we announced the McGrath transaction, we did say that it would be accretive -- modestly accretive to earnings and free cash flow per share in the first full year post closing, and we continue to believe that's the case. I think it gets a lot more interesting as you kind of roll the model forward and let it compound, and we always take that kind of long view as a management team.

凱瑟琳，我是蒂姆，我相信布拉德會在這裡添加一些評論。因此，當我們宣布麥格拉斯交易時，我們確實說過，這將是增值的——在交易完成後的第一個全年中，每股收益和自由現金流將適度增值，而且我們仍然相信情況確實如此。我認為，當你推動模型並讓它復合時，它會變得更有趣，而且我們作為管理團隊總是採取這種長遠的眼光。

There are a host of synergy and value creation opportunities inherent in the transaction. And Brad ticked through 10 of them on Page 26. When we announced the transaction, we highlighted $50 million of very straightforward cost synergies, which are representative of efficiencies we've realized in all of our past transactions. But Page 26 really gives you a view of all of the optionality that's inherent in the transaction to create value for customers, for employees and for shareholders.

交易中存在大量協同效應和價值創造機會。 Brad 在第 26 頁上勾選了其中的 10 個。但第 26 頁確實讓您了解了交易中固有的所有可選性，可以為客戶、員工和股東創造價值。

And you can see in the right-hand column, return on invested capital has a lot of checkmarks in it, right? That's because there are cross-selling opportunities across both companies', complementary product offerings, their diversification opportunities as we go bigger into the education segment, there are a host of operational efficiencies as we think about scale advantages, using inventory centers, sharing fleet across the combined branch network and sales force.

您可以在右側欄中看到，投資資本回報率中有很多複選標記，對吧？這是因為，隨著我們深入教育領域，兩家公司都存在交叉銷售機會、互補的產品供應和多元化機會，當我們考慮規模優勢、使用庫存中心、共享車隊時，會帶來許多營運效率。合併的分公司網絡和銷售隊伍。

So the list literally goes on and on. And the beauty in a transaction like this is you don't have to execute and being successful across all 30 of these nodes, if you can want to think about it that way. You can win some, you can lose some, but we're highly confident that this is going to be a home run over time.

所以這個列表確實可以一直列下去。像這樣的交易的美妙之處在於，如果您願意這樣考慮的話，您不必在所有 30 個節點上執行並取得成功。你可能會贏得一些，也可能會失去一些，但我們非常有信心，隨著時間的推移，這將是一次全壘打。

Okay. Great. And then just I appreciate your color in terms of the EBITDA margin flow sequentially just with modular versus storage impact on margins. If you step back and look at the bigger picture in terms of the overall mix, not only just what you're seeing near term in the quarter, but what you see in the pipeline over the next 12 months or so, what is that telling you in terms of just the overall macro view? And then, I guess, that backdrop, what are you seeing that give you insights on just how WillScot wins and the reindustrialization of the U.S. ?

好的。偉大的。然後，我很欣賞您在 EBITDA 利潤流方面的表現，以及模組化與儲存對利潤的影響。如果您退後一步，從整體組合的角度審視更大的情況，不僅是您在本季度看到的近期情況，而且是您在未來 12 個月左右的時間裡看到的情況，這說明了什麼您只是從整體宏觀角度來看？然後，我想，在這個背景下，您看到的是什麼讓您對威爾·斯科特如何獲勝以及美國的再工業化有深入的了解？

Yes. Kathryn, this is Brad. I'll touch on it first. I think as we've mentioned a few times on the call, the modular activation rates being up 5% on a rolling 3-month basis. We think this outstanding outcome given the continued nonresi headwinds. And we're clearly seeing continued wins and benefits on these larger mega projects onshoring, reshoring, reindustrialization and the such. So this is one we've discussed a number of times. Medium and long term, I'm quite bullish with respect to the opportunities associated with nonresi construction, mainly on those fronts.

是的。凱瑟琳，這是布拉德。我先談談它。我認為正如我們在電話會議中多次提到的那樣，模組化激活率在 3 個月滾動的基礎上增長了 5%。考慮到持續的非樹脂逆風，我們認為這項成果非常出色。我們清楚地看到這些大型大型專案在岸、回流、再工業化等方面持續取得勝利和收益。所以這是我們已經討論過很多次的問題。從中長期來看，我非常看好與非再生建築相關的機會，主要是在這些方面。

But we're certainly seeing, I think, outperformance in modular. We don't need any heroics as far as recovery to accomplish everything that Tim's outlined with respect to modular volumes this year. And I just think we're extremely well positioned to continue to take advantage of what I think several years of a great setup here.

但我認為，我們確實看到了模組化的卓越表現。就恢復而言，我們不需要任何英雄壯舉來完成蒂姆今年概述的有關模組化卷的一切。我只是認為我們處於非常有利的位置，可以繼續利用我認為這裡多年來的良好設置。

One moment for our next question. And that will come from the line of Andrew Wittmann with Baird.

請稍等一下我們的下一個問題。這將來自安德魯·魏特曼 (Andrew Wittmann) 和貝爾德 (Baird) 的血統。

I was wondering if you could talk a little bit about the conversion rates from your quotations to your orders and how that is informing, maybe your opinion on the customers' price sensitivity or their view of the health of their end markets? Maybe talk about how the timing is changing, if at all, between -- the time between quotation and order and delivery? I know maybe last year this time, you were saying that, that was extending a little bit. I was wondering if that's still extended or if it's extending further contracting? I guess just some detail around the consumer behavior as you're seeing it on your leading indicators.

我想知道您是否可以談談從報價到訂單的轉換率，以及它是如何提供資訊的，也許您對客戶的價格敏感性或他們對終端市場健康狀況的看法有何看法？也許可以談談報價、訂單和交貨之間的時間是如何變化的（如果有的話）？我知道也許去年這個時候，你說過，那是延長了一點。我想知道是否仍然延長或是否會進一步延長合約期限？我想只是有關消費者行為的一些細節，正如您在領先指標上看到的那樣。

Yes. Andy, this is Brad to start with. So you're right. We've talked about this phenomenon last year, but it was specific to the modular portfolio. And I think effectively, we're seeing something very similar, right? We said storage will lag modular. So our rolling 4-month quote activity in the storage business is up year-over-year. As Tim mentioned, we are seeing conversion rates slow, but that's not necessarily because we're losing business, right? I think this is maybe a timing phenomenon a bit like we saw in modular.

是的。安迪，我是布萊德。所以你是對的。我們去年討論過這種現象，但它是針對模組化產品組合的。我認為實際上，我們看到了非常相似的東西，對嗎？我們說過儲存將落後於模組化。因此，我們儲存業務的 4 個月滾動報價活動年增。正如蒂姆所提到的，我們看到轉換率緩慢，但這並不一定是因為我們失去了業務，對吧？我認為這可能是一種計時現象，有點像我們在模組化中看到的那樣。

And as we do as normal course, right, in every market and every like product position that Tim mentioned, we will always test price, right, to see -- to validate it if there is price volume elasticity, both on the core product itself as well as with the logistics side of the value prop. So I don't personally see anything too much to read into that other than the storage recoveries lagging modular. And I think we're seeing a lot of the similar setup.

正如我們按照正常路線所做的那樣，對，在每個市場和蒂姆提到的每一個類似的產品定位中，我們總是會測試價格，對，看看- 驗證它是否存在價格彈性，無論是在核心產品本身以及價值支柱的物流方面。因此，除了儲存恢復滯後模組化之外，我個人認為沒有太多值得解讀的內容。我認為我們看到了很多類似的設定。

Got it. I thought I was curious, Tim, you were talking about total moves being down, and I think activations is the obvious thing. But the fact that storage units are not being returned at the same rate. I guess that's a little different from what I would have, I guess, expected. Is there something to read into that about what that's saying about the macro at all?

知道了。我想我很好奇，蒂姆，你在談論總步數下降，我認為激活是顯而易見的事情。但事實是儲存單元沒有以相同的速率返回。我想這與我的預期有點不同。關於宏的說法是否有什麼值得解讀的？

I don't think so, Andy. I don't see anything unusual in the volume of returns that you wouldn't expect just based on the fact that you've got fewer units on rent, right? So you can think about returns as being proportional to -- in some way to the installed base. So as the installed base gets a bit lower, a lower quantity of units will return every period. And that's one of the kind of self mitigating elements of both portfolios.

我不這麼認為，安迪。我沒有發現回報量有任何異常，因為你的租金單位較少，所以你不會想到，對吧？因此，您可以將回報視為與安裝基數成正比。因此，隨著安裝基數的降低，每個時期返回的設備數量也會減少。這是這兩個投資組合的自我緩解因素之一。

It works a little bit differently in storage than it does in modular. But I do actually see a benefit to unit on rent in storage from lower return volumes as we look out through the rest of the year, but kind of expected based on where overall unit on rent has trended.

它在儲存中的工作方式與在模組化中的工作方式略有不同。但實際上，當我們展望今年剩餘時間時，我確實看到了較低的回報量對儲存單位租金的好處，但這是基於單位租金整體趨勢的預期。

Okay. I guess the corollary to that is that the average lease time for those storage units isn't changing. I was wondering if the average time on rent was elongating and that was a factor, but it sounds like the average duration of the storage lease is about the same.

好的。我想推論是這些儲存單元的平均租用時間沒有改變。我想知道平均租金時間是否延長，這是一個因素，但聽起來儲存租賃的平均期限大致相同。

I think that's right, Andy.

我認為這是對的，安迪。

One moment for our next question. And that will come from the line of Faiza Alwy with Deutsche Bank.

請稍等一下我們的下一個問題。這將來自 Faiza Alwy 與德意志銀行的關係。

So I wanted to talk again about why modular activation is trending better than storage. I know we've talked about this before. But I wonder as time has gone on, if you changed in terms of your assessment and what some of the factors are and whether you think there's differences in supply, differences in competition? Or is it just a function of customer mix and large versus small projects?

所以我想再次談談為什麼模組化啟動的趨勢比儲存更好。我知道我們之前已經討論過這個問題。但我想知道，隨著時間的推移，您的評估是否發生了變化，其中一些因素是什麼？或者它只是客戶組合以及大型專案與小型專案的函數？

So just give us some color on that. And if you think there's any risk that storage is more of a leading indicator and modular to the extent that there isn't an improvement in the macro environment sort of modular sort of doesn't recover at the rate that we hope it does.

所以請給我們一些顏色。如果您認為存在儲存更多是領先指標和模組化的風險，以至於宏觀環境沒有改善，那麼模組化類型就不會以我們希望的速度恢復。

Yes. This concept -- Faiza, this is Tim, that storage is some type of leading indicator is a bizarre concept because the modular almost always goes out at the very beginning of a project and comes off at the end, whereas you're going to get more intra-project churn in the storage business. So that one doesn't hold any water. The only difference really that we see between the drivers of the modular business versus storage, they're really two big ones. One is the retail exposure that we have in storage, which we don't have in modular.

是的。這個概念——Faiza，這是蒂姆，儲存是某種類型的領先指標，這是一個奇怪的概念，因為模組化幾乎總是在專案的一開始就出現並在專案結束時消失，而你會得到儲存業務的項目內流失更多。所以那個東西不能盛水。我們所看到的模組化業務驅動因素與儲存驅動因素之間的唯一區別實際上是兩個大因素。一是我們在儲存方面擁有的零售曝光度，而我們在模組化方面沒有。

And I think we've beat that one to death over the last couple of quarters. The second is that we do have a disproportionate exposure in the modular business to larger mega projects, right? And so as the mix of nonresidential construction activity skews more towards those larger, more sophisticated projects that has a disproportionate benefit to us in the modular business. That's an obvious well-documented phenomenon in terms of the mix of nonresidential construction activity currently.

我認為我們在過去的幾個季度裡已經擊敗了那個人。第二個問題是，我們在模組化業務中確實對大型專案的投資不成比例，對嗎？因此，非住宅建築活動的組合更傾向於那些更大、更複雜的項目，這些項目對我們的模組化業務具有不成比例的好處。就目前的非住宅建築活動組合而言，這是一個明顯且有據可查的現象。

I expect it persists for the foreseeable future based on, frankly, how drawn out these federal stimulus programs are likely to be. And I do view that as a tailwind, especially for the modular business over the course of the coming years, not months.

坦白說，我預計這種情況在可預見的未來會持續存在，因為這些聯邦刺激計劃可能會持續很長時間。我確實認為這是一種順風，特別是對於未來幾年而不是幾個月的模組化業務。

Understood. And then I just -- I wanted to touch on the deal. And Brad, I absolutely appreciate your comments around how you don't want to engage in hypotheticals and all of that. But you -- in your comments, you sound very confident about the deal getting done. And I think that's in stark contrast to what a lot of investors believe. So I wonder if you can give us a peek into what type of discussions, questions you're getting from the regulators and sort of what your defenses in terms of the consolidation happening in the space?

明白了。然後我只是想談談這筆交易。布拉德，我非常感謝你關於你不想參與假設之類的評論。但你——在你的評論中，你聽起來對交易的完成非常有信心。我認為這與許多投資者的看法形成鮮明對比。因此，我想知道您是否可以讓我們了解您從監管機構那裡得到的討論類型和問題，以及您對該領域發生的整合有何防禦措施？

Look, we've said it's a great transaction. We have high confidence in closing. We said the transaction will require a filing. We made the filing. The filing was selected for a review. We're complying with the review. And I think other than what I've already shared in my prepared comments, we're not going to get into further details on speculation here.

看，我們說過這是一筆很棒的交易。我們對成交充滿信心。我們說過交易需要備案。我們做了備案。該文件被選中進行審查。我們正在遵守審查。我認為除了我在準備好的評論中已經分享的內容之外，我們不會在這裡進一步討論猜測的細節。

One moment for our next question. And that will come from the line of Angel Castillo with Morgan Stanley.

請稍等一下我們的下一個問題。這將來自安吉爾·卡斯蒂略 (Angel Castillo) 與摩根士丹利 (Morgan Stanley) 的血統。

I just wanted to go back to an earlier comment about pricing or some of the moves in volume, not necessarily being driven by kind of market share loss or any impact because of pricing. Just could you give us a little bit more color on that and what gives you comfort around some of the moves being more kind of macro or project related rather than anything related to kind of a pricing dynamic? I think if I recall correctly, some of the reported numbers from McGrath showed kind of growth in some of the unit on rent. So just wanted to understand some of the differences. And again, what gives you comfortable on the pricing side?

我只是想回到之前關於定價或銷售變化的評論，不一定是由市場份額損失或定價造成的任何影響驅動的。您能為我們提供更多資訊嗎？我想，如果我沒記錯的話，麥格拉斯報告的一些數據顯示某些單位的租金有成長。所以只是想了解一些差異。再說一次，有什麼讓您在定價方面感到放心？

This is Tim. In terms of the McGrath report, they reported a utilization decline, right, and a pretty meaningful one. So the unit on rent growth was via acquisitions. So I think that was maybe just a misinterpretation of that piece. We can identify the retail exposure within the storage portfolio. As of Q1, nonresidential square footage starts, we're down 13% year-over-year, right? And nonres square footage starts have been down for over the past 12 months, if you look at it year-over-year. So you know that overall volume of activity, at least in the construction market, has contracted, right?

這是蒂姆。就 McGrath 報告而言，他們報告了利用率下降，對吧，這是一個非常有意義的下降。因此，租金成長的單位是透過收購實現的。所以我認為這可能只是對那篇文章的誤解。我們可以確定儲存組合中的零售風險。截至第一季度，非住宅建築面積年減了 13%，對嗎？如果你逐年觀察的話，在過去 12 個月裡，非住宅區的開工面積一直在下降。所以您知道，至少在建築市場的整體活動量已經收縮，對嗎？

I can also go back and look at where units on rent are today versus where they were in 2019 and were up meaningfully since that time and. Nonres square footage start volume are in line with 2019. So that tells me there hasn't been a meaningful share trade over that period of time has been a pretty volatile period as you go from 2019 into COVID, then the rebound and then to where we are today.

我還可以回顧現在的出租單位與 2019 年相比，以及自那時以來的大幅上漲。非住宅建築面積起始交易量與2019 年一致。穩定的時期。

That's great. And then I just wanted to go back to the mid-single-digit sequential kind of implication for the full year guide. Can you just give us a little bit more of a sense for what kind of mix is it within that in terms of how much is kind of unit on rent improvement versus how much is just rental rate and VAPS kind of sequential pickup here?

那太棒了。然後我只想回到全年指南的中個位數連續類型的含義。您能否讓我們更了解一下，其中租金改善單位的數量與租金率和 VAPS 類型連續上漲的比例是多少？

Yes. So we continue to have a storage sequential headwind going into Q2, right? And I expect that sequentially those volumes then improve in Q3 and Q4. Sequentially, modular volumes are improving, right? So I expect that continues. And I think the rate trends, frankly, have been very stable and predictable, and I don't see anything in our leading indicators right now that would suggest that's changing as we roll the model forward.

是的。因此，進入第二季度我們繼續面臨存儲順序逆風，對吧？我預計這些銷量將在第三季和第四季繼續改善。接下來，模組化體積正在改進，對嗎？所以我預計這種情況會持續下去。坦白說，我認為利率趨勢非常穩定且可預測，而且我目前在我們的領先指標中沒有看到任何跡象表明隨著我們推進模型，這種情況正在改變。

So frankly, more similar than been different as we compare our leasing KPIs sitting here today versus the original expectations for the year, with storage volume being the one change.

坦白說，當我們將今天在這裡的租賃 KPI 與今年最初的預期進行比較時，相似之處多於不同之處，其中存儲量是一個變化。

One moment for our next question, and that will come from the line of Philip Ng with Jefferies.

現在我們的下一個問題將由 Philip Ng 和 Jefferies 提出。

Tim, if I heard you correctly, you're expecting margins to be flat sequentially and it kind of stepped up in 3Q, 4Q. And the full year, it's up about 50 basis points. So if my math is correct, I think it implies a pretty sizable step-up first half, second half, call it, 600 basis points? And you're telling me modular is stronger versus storage. And storage, I think, has higher margins. So what kind of gives you the confidence of that nice step up in margins in the back half, which seems pretty outsized versus seasonality?

提姆，如果我沒聽錯的話，您預計利潤率將連續持平，並且在第三季、第四季有所上升。全年上漲約 50 個基點。因此，如果我的數學是正確的，我認為這意味著上半場、下半場將有相當大的提升，稱為 600 個基點？你告訴我模組化比儲存更強大。我認為存儲的利潤率更高。那麼，是什麼讓您對後半段利潤率的大幅提升充滿信心，而與季節性相比，這似乎相當過大？

It's the same lease revenue build sequentially that we expected through the course of the year. As we get more storage movements that we anticipate through the remainder of the year, you get better leverage off of the trucking fleet. And so D&I margins, Phil, actually do impact the overall margin profile of the business, and that will be a benefit.

這與我們全年預期的租賃收入連續成長相同。隨著我們預計在今年剩餘時間內獲得更多的儲存運輸，您可以更好地利用卡車運輸車隊。因此，菲爾，D＆I 利潤率實際上確實影響了業務的整體利潤率，這將是一個好處。

And then the third lever is really resulting more from the implementation of our field service and dispatch platform, which we executed in Q1. And this -- what this does is this allows us, in any given market through a single dispatcher to leverage our trucks, our drivers, our service crews across any of the customer activities that we're servicing, whether it's a storage delivery or return or a modular delivery or return or setting up furniture in any of our equipment.

第三個槓桿實際上更多來自於我們在第一季執行的現場服務和調度平台的實施。這使得我們能夠在任何特定市場中透過單一調度員在我們所服務的任何客戶活動中利用我們的卡車、我們的司機、我們的服務人員，無論是倉儲交付還是退貨或在我們的任何設備中進行模組化交付或退貨或安裝家具。

So to date before the integration of the two teams locally, we basically had redundancy across all of those functions. Now I don't view this as a huge cost reduction initiative by any means. But in any given local market, if we've got an HVAC technician that resided at a modular branch, well, we can use that HVAC technician across the entire fleet now and maybe not use as much third-party service and third-party transportation.

因此，迄今為止，在本地整合兩個團隊之前，我們基本上在所有這些職能上都存在冗餘。現在我無論如何都不認為這是一項巨大的成本削減措施。但在任何特定的當地市場，如果我們有一名HVAC 技術人員駐留在模組化分支機構，那麼我們現在可以在整個車隊中使用該HVAC 技術人員，並且可能不會使用太多的第三方服務和第三方運輸。

And then there are also some efficiency implications for our back office by virtue of having the entire company on one system. And you can almost think of this, Phil, as the realization of some of the cost synergies that we expected from the Mobile Mini acquisition a few years ago. Obviously, much more value has been created through our commercial initiatives over the past few years. But now that we're on a single CRM front-end, ERP backbone in field service platform, I expect we're going to be unlocking efficiencies here, not just in the second half of the year, but going into 2025 as well.

此外，由於整個公司都在一個系統上，因此對我們的後台辦公室也會產生一些效率影響。 Phil，您幾乎可以將其視為我們幾年前收購 Mobile Mini 時所預期的一些成本協同效應的實現。顯然，過去幾年我們的商業措施創造了更多的價值。但現在我們在現場服務平台上採用單一 CRM 前端、ERP 主幹，我預計我們將在這裡釋放效率，不僅在今年下半年，而且到 2025 年也是如此。

And Tim, on this initiative you're talking about the dispatch that's largely going to flow through the D&I side on the margin side? Or is it actually going to flow through modular and storage as well?

提姆，在這項舉措中，您談論的是大部分將流經保證金方面的 D&I 方面的調度？或者它實際上也會流經模組化和儲存？

I think you can see it on the leasing margin. I think you can see it in D&I, and I think we'll see it in SG&A. So I think it's going to touch us in a lot of ways.

我想你可以從租賃利潤率看到這一點。我想你可以在 D&I 中看到它，我想我們也會在 SG&A 中看到它。所以我認為它會在很多方面觸動我們。

Okay. And then you gave some great color on modular in terms of units on rent, largely unchanged. Storage, a little weaker, more flat sequentially. It would be helpful to kind of give us a little more context in the back half, how to think about progression just because just, frankly, there's less visibility. Any update on the retail side of things? Have you heard any stronger pull-through perhaps in the back half or still TBD at this point on the retail side?

好的。然後，您在租金單位方面對模組化進行了一些精彩的闡述，基本上沒有變化。儲存方面，稍弱一些，依序比較平淡。在後半部分為我們提供更多背景知識會很有幫助，讓我們如何思考進展，只是因為坦白說，可見性較低。零售方面有什麼更新嗎？您是否聽說過下半年有更強勁的拉動，或者零售方面目前仍待確定？

No specific order information to share with you as it relates to Q4. But as I said, I think, a quarter or so ago, hard to see it being much worse than it was. The activation volumes and order rates that Brad referenced in storage are building sequentially as we go into Q2. Now that is normal and to be expected from a seasonality standpoint, but we are seeing it, right? So that does give us a reason to expect unit on rent to flatten sequentially.

沒有與第四季度相關的具體訂單資訊可與您分享。但正如我所說，我認為，大約四分之一年前，很難看到情況比以前更糟。當我們進入第二季時，布拉德在存儲中提到的激活量和訂單率正在依次增加。現在這是正常的，從季節性的角度來看也是可以預料的，但我們正在看到它，對吧？因此，這確實讓我們有理由預期租金單位將依次趨於平穩。

And you would normally see a build from Q2 into Q3 and then Q4 is always, frankly, the highest quarter for unit on rent in storage. So our expectations there, I think, are pretty modest and based on kind of a normal seasonal progression from where we are today.

通常，您會看到從第二季度到第三季度的建設，然後坦率地說，第四季度始終是儲存單位租金最高的季度。因此，我認為，我們的期望相當溫和，並且基於從我們今天的情況來看的正常季節性進展。

I'm showing no further questions in the queue at this time. I would like to turn the call back over to Mr. Nick Girardi for any closing remarks.

目前我在隊列中沒有顯示任何其他問題。我想將電話轉回給尼克·吉拉迪先生，讓他發表結束語。

Thank you, Thank you all for your interest in WillScot Mobile Mini. If you have additional questions after today's call, please contact me.

謝謝，感謝大家對 WillScot Mobile Mini 的興趣。如果您在今天的通話後還有其他問題，請與我聯絡。

Thank you. Ladies and gentlemen, this concludes today's conference. You may now disconnect.

謝謝。女士們、先生們，今天的會議到此結束。您現在可以斷開連線。