WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) Q4 2022 Earnings Call Transcript

Ronan Kennedy: It’s Ronan again on for Manav. If I may, please confirm for the 13 acquisitions completed, the $220 million ABI, I think it was. Could you please recap the units acquired by segment? And if there’s any further insight you can offer on, say, financial contributions or impact for ’22 and then anticipated for ’23? And then also on the topic of M&A, and it was discussed, competitive behavior in relation to Andy’s question. But given recent acquisition in the space by comps, just your high-level thoughts on broader industry dynamics and your outlook for further consolidation, please?

Timothy Boswell: Ronan, this is Tim. I’m not going to try to add up the acquired units during the course of last year. But we have said in the past that we’re acquiring at or below kind of roughly 8x valuation multiples, and that’s absolutely been consistent. And we haven’t really seen much change in that department. And when we’re acquiring at that level, it’s with confidence that we’re going to be able to exploit other types of synergies over time, whether it’s cost or commercial upside. Nobody else has a value-added products revenue stream, for example, like we do, and that creates visibility into predictable growth as those acquired portfolios churn. And we really haven’t seen anything materially different in terms of the competitive landscape and the deals that we’re looking at.

I think it’s safe to say that we know everybody and all the industry participants, and we take care in developing those relationships. So we’ll stick to the programmatic strategy that we’ve had for the last 18 months now. And like I said, the pipeline supports continued reinvestment at these levels.

Bradley Soultz: Yes. The only thing I would add to that is we often say, inside, when things go well, it looks easy. It’s not, but we’re damn good at this, right? Since the ERP cutover, we’ve done over 20 acquisitions. And we quickly and seamlessly integrate them. So as Tim said, we’re buying them at a great value, arbitrage where we are. We’ll take cost and commercial synergies out, and the pipeline looking forward looks the same. So it’s a great play, and it’s a big thanks to the team that’s able to pull this off. So I think it’s a pretty unique aspect of the portfolio.

Operator: We have now reached the end of today’s call. I will now turn the call back over to Nick.

Nick Girardi: Thank you, Michelle. Thank you all for your interest in WillScot Mobile Mini. If you have additional questions after today’s call, please contact me.

Operator: Thank you, ladies and gentlemen. This concludes today’s conference. You may now disconnect.