W.SCOTSMAN INTL 
By Williams Scotsman International, Inc. (NASDAQ:WLSC), a leading provider of modular space solutions, reported today its financial results for the second quarter of 2007.
Second Quarter Results
Total revenue for the 2007 second quarter was $203.7 million, compared to $159.1 million a year ago. Leasing revenues increased 18.1% to $82.9 million from $70.2 million in the prior year quarter, driven primarily by a 2.1% increase in average units on rent in North America, and an increase in the average rental rate of $22 to $309 from $287. North American utilization showed a decline to 80% from 82% a year ago due to idle classroom capacity and storage fleet growth.
The increase in units on rent and average rental rates is attributable to continued strong performance throughout the Company's U.S. regions and Canada. The remaining increase in leasing revenue was driven by the Company's European subsidiary, Wiron, which was acquired in the third quarter of 2006 and accounted for $5.3 million of the increase. Sales of new units and rental equipment increased 54.8% compared to the prior year quarter primarily as a result of increased sales activities including a large classroom project in Louisiana and a military project in Hawaii. Delivery and installation revenues increased 23.6% compared to the prior year quarter as a result of the above mentioned items.
Gross profit increased by $13.9 million, or 20.5%, to $81.8 million, while the gross profit margin percentage decreased 2.5 percentage points to 40.2% as compared to the prior year second quarter due to a higher mix of sales related business. The Company reported net income for the quarter ended June 30, 2007 of $14.6 million, or $0.33 per diluted share, an increase of 26.4% or $0.05 per diluted share as compared to net income of $11.6 million or $0.27 per diluted share for the quarter ended June 30, 2006.
Gerry Holthaus, Chairman, President and CEO, commented, ?We are very pleased with the results of our second quarter financial performance. Our results for the period reflect continued growth in our U.S regions as well as our focus on our international markets including the benefit of our European acquisition and continued growth from our Canadian operations. As a result of these activities, the Company reported record net income for its second quarter.?
?We also announced on July 19, 2007, that the Company agreed to be acquired by the parent company of Algeco Group, the European space rental company, in an all-cash transaction for $2.2 billion, which includes the refinancing of outstanding debt. Under the terms of the agreement, Williams Scotsman International, Inc. shareholders will receive $28.25 in cash for each share of Williams Scotsman International, Inc. common stock they own.?
Six Months ended June 30, 2007 Results
Revenues for the six months ended June 30, 2007 were $365.7 million, a 12.8% increase from $324.1 million in the comparable period of 2006. Gross profit was $155.8 million, a 16.9% increase as compared to $133.3 million for the prior year period. The Company reported net income for the six months ended June 30, 2007 of $25.1 million or $0.57 per share as compared to net income of $22.0 million or $0.53 per share for the six months ended June 30, 2006.
Williams Scotsman International, Inc. has scheduled a conference call for August 3, 2007 at 10:00 AM Eastern Time to discuss its second quarter results. To participate in the conference call, dial 888-633-8284 for domestic (212-231-6012 for international) and ask to be placed into the Williams Scotsman call. To listen to a live webcast of the call, go to www.willscot.com and click on the Investor Relations section. Please go to the website 15 minutes early to download and install any necessary audio software. A replay of the call will be available approximately two hours after the live broadcast ends and will be accessible until 11:59 PM on September 2, 2007. To access the replay, domestic callers can dial 800-633-8284 and enter access code 21345015 (international callers can dial 402-977-9140).
About Williams Scotsman International, Inc.
Williams Scotsman International, Inc., through its subsidiaries, is a leading provider of mobile and modular space solutions for multiple industry sectors, including the Construction, Education, Commercial, Healthcare and Government markets. The company serves over 30,000 customers, operating a fleet of over 121,000 modular space and storage units that are leased through a network of over 100 locations throughout North America and Spain. Williams Scotsman provides delivery, installation, and other services, and sells new and used mobile office products. Williams Scotsman also manages large modular building projects from concept to completion. Williams Scotsman is a publicly traded company (NASDAQ: WLSC - News) headquartered in Baltimore, Maryland with operations in the United States, Canada, Mexico, and Spain. For additional information, visit the company's web site at www.willscot.com, call (410) 931-6066, or email to Michele.Cunningham@willscot.com.
All statements other than statements of historical fact included in this press release are forward-looking statements and involve expectations, beliefs, plans, intentions or strategies regarding the future. Although the company believes that the expectations reflected in these forward-looking statements are reasonable, it assumes no responsibility for the accuracy and completeness of these forward-looking statements and gives no assurance that these expectations will prove to have been correct. Important factors that could cause actual results to differ materially from the company's expectations are disclosed under "Risk Factors" and elsewhere in the company's 10-K, 10-Q and other SEC filings, including, but not limited to, substantial leverage and its ability to service debt, changing market trends in its industry, general economic and business conditions including a prolonged or substantial recession, its ability to finance fleet and branch expansion and to locate and finance acquisitions, its ability to implement its business and growth strategy and maintain and enhance its competitive strengths, intense industry competition, availability of key personnel and changes in, or the failure to comply with, government regulations. The company assumes no obligation to update any forward-looking statement.
Williams Scotsman International, Inc. Consolidated Balance Sheets (dollars in thousands) | ||||||||
| June 30, 2007 |
December 31, 2006 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Cash | $ | 1,995 | $ | 6,495 | ||||
| Trade accounts receivable, net | 125,816 | 120,586 | ||||||
| Prepaid expenses and other current assets | 69,285 | 52,938 | ||||||
| Rental equipment, net | 1,147,523 | 1,066,469 | ||||||
| Property and equipment, net | 97,432 | 92,992 | ||||||
| Deferred financing costs, net | 17,671 | 19,277 | ||||||
| Goodwill and other intangible assets | 225,111 | 199,788 | ||||||
| Other assets, net | 36,080 | 29,374 | ||||||
| Total assets | $ | 1,720,913 | $ | 1,587,919 | ||||
| Liabilities and stockholders' equity | ||||||||
| Accounts payable | $ | 72,455 | $ | 58,964 | ||||
| Accrued expenses and other current liabilities | 53,553 | 50,834 | ||||||
| Accrued interest | 11,324 | 12,887 | ||||||
| Rents billed in advance | 24,598 | 25,031 | ||||||
| Revolving credit facility | 357,111 | 296,892 | ||||||
| Long-term debt, net | 617,902 | 619,464 | ||||||
| Deferred income taxes | 170,701 | 155,706 | ||||||
| Total liabilities | 1,307,644 | 1,219,778 | ||||||
| Stockholders' equity: | ||||||||
| Common stock | 562 | 557 | ||||||
| Additional paid-in capital | 552,255 | 545,124 | ||||||
| Retained earnings | 126,036 | 100,962 | ||||||
| Accumulated other comprehensive income | 30,354 | 17,436 | ||||||
| 709,207 | 664,079 | |||||||
| Less treasury stock | (295,938 | ) | (295,938 | ) | ||||
| Total stockholders' equity | 413,269 | 368,141 | ||||||
| Total liabilities and stockholders' equity | $ | 1,720,913 | $ | 1,587,919 | ||||
Williams Scotsman International, Inc. Consolidated Statements of Operations (unaudited) (dollars in thousands, except per share data) | ||||||||||||
Quarter ended | Six months ended June 30, | |||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||
| (In thousands except share and per share amounts) | ||||||||||||
| Revenues | ||||||||||||
| Leasing | $ | 82,859 | $ | 70,174 | $ | 163,043 | $ | 139,057 | ||||
| Sales: | ||||||||||||
| New units | 49,401 | 26,796 | 78,025 | 66,742 | ||||||||
| Rental equipment | 14,614 | 14,564 | 24,929 | 25,075 | ||||||||
| Delivery and installation | 43,162 | 34,914 | 73,725 | 68,940 | ||||||||
| Other | 13,690 | 12,661 | 25,953 | 24,268 | ||||||||
| Total revenues | 203,726 | 159,109 | 365,675 | 324,082 | ||||||||
| Costs of sales and services | ||||||||||||
| Leasing: | ||||||||||||
| Depreciation and amortization | 16,426 | 14,036 | 32,150 | 28,226 | ||||||||
| Other direct leasing costs | 17,367 | 16,078 | 32,575 | 31,128 | ||||||||
| Sales: | ||||||||||||
| New units | 40,449 | 20,333 | 62,630 | 52,641 | ||||||||
| Rental equipment | 10,190 | 10,391 | 17,739 | 18,065 | ||||||||
| Delivery and installation | 34,534 | 27,990 | 59,311 | 56,088 | ||||||||
| Other | 2,937 | 2,390 | 5,492 | 4,662 | ||||||||
| Total costs of sales and services | 121,903 | 91,218 | 209,897 | 190,810 | ||||||||
| Gross profit | 81,823 | 67,891 | 155,778 | 133,272 | ||||||||
| Selling, general and administrative expenses (1) | 32,956 | 26,856 | 65,676 | 53,506 | ||||||||
| Other depreciation and amortization | 5,774 | 4,372 | 11,176 | 8,618 | ||||||||
| Operating income | 43,093 | 36,663 | 78,926 | 71,148 | ||||||||
| Interest, including amortization of deferred financing costs | 19,001 | 17,824 | 38,007 | 35,345 | ||||||||
| Income before income taxes | 24,092 | 18,839 | 40,919 | 35,803 | ||||||||
| Income tax expense | 9,451 | 7,257 | 15,845 | 13,788 | ||||||||
| Net income | $ | 14,641 | $ | 11,582 | $ | 25,074 | $ | 22,015 | ||||
| Earnings per common share | $ | 0.34 | $ | 0.28 | $ | 0.58 | $ | 0.54 | ||||
| Earnings per common share, assuming dilution | $ | 0.33 | $ | 0.27 | $ | 0.57 | $ | 0.53 | ||||
| Weighted average common shares outstanding ? basic | 43,514,463 | 41,487,015 | Share
© Business Wire - 2007
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