Williams Scotsman International, Inc. Reports Results for the Quarter Ended March 31, 2007.- First Quarter Earnings Per Share of $0.24 Exceeds Company's Expectations - - Company Increases Outlook for Fiscal 2007 - BALTIMORE -- Williams Scotsman International, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : WLSC WLSC West Liberty State College (West Virginia) WLSC Windows Live Safety Center ), a leading provider of modular space solutions, reported today its financial results for the first quarter of 2007. First Quarter Results Total revenue for the 2007 first quarter was $161.9 million, compared to $165.0 million a year ago. As previously announced, the Company's results for the 2006 first quarter included a single large U.S. military sale as well as unusually high business activity related to the early-stage recovery efforts in the hurricane-affected region of the country. These items contributed $23.7 million of revenue. On a comparable basis excluding the impact of these items from the Company's 2006 first quarter results, total revenue increased by 15% or $20.7 million. Leasing revenues increased 16% to $80.2 million from $68.9 million in the prior year quarter, driven primarily by a 1.8% increase in average units on rent in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , and an increase in the average rental rate of $24 to $306 from $282. North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. 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. Sales of new units and rental equipment and delivery and installation revenues decreased 22.8% and 10.2%, respectively compared to the prior year quarter as a result of the above mentioned items. Gross profit margins Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. increased by $8.6 million, or 13%, to $74.0 million, while the gross profit margin percentage increased 6.1 percentage points to 45.7% as compared to the prior year first quarter. The Company reported net income for the quarter ended March 31, 2007 of $10.4 million, or $0.24 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, as compared to net income of $10.4 million or $0.26 per diluted share for the quarter ended March 31, 2006. The 2006 first quarter results included a net income and earnings per share benefit of $2.8 million and $0.07, respectively, from the U.S. military and hurricane related sales as discussed above. Gerry Holthaus, Chairman, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , commented, "We are very pleased with the better than expected results of our first quarter financial performance, particularly in light of the challenging comparison to an unusually strong 2006 first quarter. Our performance demonstrates the benefits of our diversified diversified (di·verˑ·s growth strategy along with continued solid demand from the U.S. non-residential market. Our results for the period also reflect continued growth in our Canadian operations, including the oil and gas sectors, and the benefit of our European operations. The overall result was impressive performance within our leasing business, with an increase in leasing revenues and gross margin percentage of 16% and 3.9 percentage points, respectively, over the prior year quarter. "During the quarter we continued to execute on our growth and diversification strategies, expanding our operational footprint with the previously announced acquisition of Honolulu-based Hawaii Modular Space and its sister company, Alaska Modular Space, on March 8, 2007. The integration process is going well, and we are continuing with a number of operational initiatives to complete the assimilation Assimilation The absorption of stock by the public from a new issue. Notes: Underwriters hope to sell all of a new issue to the public. See also: Issuer, Underwriting Assimilation of this acquisition into the Company." Business Outlook The following statements of anticipated results are based on current expectations. These statements are forward-looking, and actual results may differ materially. The Company estimates the following performance measures for the second quarter ending June 30, 2007 and year ending December 31, 2007: [TABLE OMITTED] Mr. Holthaus concluded, "Looking ahead, we believe Williams Scotsman remains positioned well for solid growth. Indications are that demand within our targeted vertical markets remains positive, while conditions within our non-U.S. markets also continue to be strong. We are making excellent progress in achieving our goals for 2007 and look forward to additional success in the future." The Business Outlook published in this press release reflects only the Company's current best estimate and the Company assumes no obligation to update the information contained in this press release, including the Business Outlook, at any time prior to its next earnings release. Williams Scotsman International, Inc. has scheduled a conference call for May 2, 2007 at 10:00 AM Eastern Time to discuss its first quarter results. To participate in the conference call, dial 888-433-1674 for domestic (212-748-2817 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 Investor relations The process by which the corporation communicates with its investors. 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 June 1, 2007. To access the replay, domestic callers can dial 800-633-8284 and enter access code 21336707 (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 118,000 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 Modular buildings are sectional prefabricated buildings that are manufactured in a plant, and delivered to the customer in one or more complete modular sections. Modular buildings are considerably different from mobile homes. projects from concept to completion. Williams Scotsman is a publicly traded company publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. (NASDAQ: WLSC) headquartered in Baltimore, Maryland "Baltimore" redirects here. For the surrounding county, see Baltimore County, Maryland. For other uses, see Baltimore (disambiguation). Baltimore is an independent city located in the state of Maryland in the United States. with operations in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , 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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 pro·long tr.v. pro·longed, pro·long·ing, pro·longs 1. To lengthen in duration; protract. 2. To lengthen in extent. 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. [TABLE OMITTED] [TABLE OMITTED] (1) Includes non-cash stock compensation expense of $0.8 million and $0.5 million for the three months ended March 31, 2007 and 2006, respectively. [TABLE OMITTED] [TABLE OMITTED] At March 31, 2007, our European rental fleet totaled approximately 15,400 units, at a utilization rate of 89% and an average rental rate of $131. [TABLE OMITTED] [TABLE OMITTED] (a) Capital expenditures are shown net of used units sold (b) Calculated as total debt divided by Consolidated EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become , see (f) below (c) Calculated as total debt divided by net income, the most comparable GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). measure (d) Under the Company's Amended and Restated Credit Agreement, the Company is not subject to financial covenants as long as its excess availability under the revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility remains above $75 million. As of March 31, 2007, the Company's excess availability under the revolver revolver: see small arms. revolver Pistol with a revolving cylinder that provides multishot action. Some early versions, known as pepperboxes, had several barrels, but as early as the 17th century pistols were being made with a revolving chamber to was $196.1 million or $121.1 million in excess of the $75 million requirement Reconciliation of EBITDA for the quarter ended March 31, 2007 and 2006 to net income - the most comparable GAAP measure: [TABLE OMITTED] (e) The Company defines EBITDA as earnings before deducting interest, loss on extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of debt, income taxes, depreciation and amortization Reconciliation of Consolidated EBITDA, as defined below, to net income - the most comparable GAAP measure for the twelve months ended March 31, 2007 (in thousands): [TABLE OMITTED] (f) Consolidated EBITDA is defined as the Company's net income plus interest, loss on extinguishment of debt, taxes, depreciation and amortization expenses, and excludes (gains) losses on sales of fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → and any other non-cash items, and non-cash stock compensation charges. Consolidated EBITDA also includes an adjustment to reflect the estimated full year EBITDA contribution of acquisitions completed during the period. Consolidated EBITDA should not be considered in isolation or as a substitute to cash flow from operating activities, net income or other measures of performance prepared in accordance with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting or as a measure of the Company's profitability or liquidity. The Company is providing Consolidated EBITDA as supplemental information so that investors can evaluate the Company's performance and debt position. Consolidated EBITDA of the Company's wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , Williams Scotsman, Inc., is also separately calculated and utilized to assess its compliance with the financial covenants under the Amended and Restated Credit Agreement. |
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