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First quarter earnings per share of $0.24 exceeds Company's expectations
Company Increases Outlook for Fiscal 2007
Baltimore, MD - May 2, 2007 - Williams Scotsman International, Inc. (NASDAQ: WLSC), 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, and an increase in the average rental rate of $24 to $306 from $282. 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. 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 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 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, 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 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 of this acquisition into the Company."
About Williams Scotsman International, Inc.
Full Release (pdf) with complete details on First Quarter Results
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