3 unchanged sentences
MD&A is provided as a supplement to, and should be read in conjunction with, our financial statements and the accompanying notes thereto, contained in Part I, Item 1 of this report.
−Removed: The discussion of results of operations in this MD&A is presented on a historical basis, as of or for the three and six months ended June 30, 2023 or prior periods.
+Added: The discussion of results of operations in this MD&A is presented on a historical basis, as of or for the three and nine months ended September 30, 2023 or prior periods.
On September 30, 2022, the Company completed the sale of its former Tank and Pump Solutions ("Tank and Pump") segment.
7 unchanged sentences
We service diverse end markets across all sectors of the economy throughout the United States ("US"), Canada, and Mexico.
−Removed: As of June 30, 2023, our branch network included approximately 240 branch locations and additional drop lots to service our over 85,000 customers.
+Added: As of September 30, 2023, our branch network included approximately 240 branch locations and additional drop lots to service our over 85,000 customers.
We offer our customers an extensive selection of “Ready to Work” modular space and portable storage solutions with over 156,000 modular space units and over 212,000 portable storage units in our fleet.
7 unchanged sentences
Core to our operating model is the ability to redeploy standardized assets across end markets.
−Removed: We track several market leading indicators to predict demand, including those related to our two largest end markets, the commercial and industrial sector and the construction sector, which collectively accounted for approximately 88% of our revenues in the six months ended June 30, 2023.
+Added: We track several market leading indicators to predict demand, including those related to our two largest end markets, the commercial and industrial sector and the construction sector, which collectively accounted for approximately 86% of our revenues in the nine months ended September 30, 2023.
We remain focused on our core priorities of growing leasing revenues by increasing units on rent, both organically and through our acquisition strategy, delivering “Ready to Work” solutions to our customers with value added products and services ("VAPS"), and on continually improving the overall customer experience.
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For the twelve months ended December 31, 2022, this resulted in approximately $49.8 million of revenue and $28.5 million of gross profit being transferred from the Modular segment to the Storage segment.
+Added: Business Combinations
+Added: During the three months ended September 30, 2023, we acquired a national provider of cold storage solutions and a regional modular space manufacturing and leasing business, which consisted primarily of approximately 2,200 climate-controlled containers and refrigerated storage trailers and 1,300 modular leasing units, respectively, for $332.8 million in cash, net of cash acquired.
Asset Acquisitions
−Removed: During the six months ended June 30, 2023, we acquired certain assets and liabilities of five regional and local storage and modular companies, which consisted primarily of approximately 1,800 storage units and 700 modular units, for $149.4 million in cash, net of cash acquired.
−Removed: The accompanying consolidated financial statements include $147.9 million of rental equipment and $4.5 million of land held for sale as a result of these acquisitions.
+Added: During the nine months ended September 30, 2023, we also acquired certain assets and liabilities of five regional and local storage and modular companies, which consisted primarily of approximately 1,800 storage units and 700 modular units, for $149.4 million in cash, net of cash acquired.
+Added: The accompanying consolidated financial statements include $147.9 million of rental equipment as a result of these acquisitions.
+Added: Financing Activities
+Added: On September 25, 2023, Williams Scotsman, Inc.
+Added: (“WSI”), a subsidiary of the Company, completed a private offering of $500.0 million in aggregate principal amount of 7.375% senior secured notes due 2031 (the "2031 Secur ed Notes") to qualified institutional buyers pursuant to Rule 144A .
+Added: P roceeds were used to repay approximately $494.0 million of outstanding indebtedness under the ABL Facility and certain fees and expenses.
Share Repurchases
−Removed: During the six months ended June 30, 2023 , we repurchased 9,995,319 shares of Common Stock for $454.9 million.
−Removed: As of June 30, 2023, $854.1 million of the approved share repurchase pool remained available.
+Added: During the nine months ended September 30, 2023 , we repurchased 15,037,843 shares of Common Stock for $674.8 million.
+Added: As of September 30, 2023, $634.2 million of the approved share repurchase pool remained available.
Given the predictability of our free cash flow, we believe that repurchases will be a reoccurring capital allocation priority.
−Removed: Inflation and Supply Chain Issues
Similar to many other organizations, we have faced inflationary pressures over the past several years across most of our input costs such as building materials, labor, transportation and fuel.
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However, given our scale and our strong rate performance, we believe we have been able to navigate the inflationary environment well and have consistently driven margin improvements during this period of rising costs.
−Removed: Additionally, because we derive the majority of our revenue from leasing our existing lease fleet units to customers and our material purchases to maintain these units consist primarily of general building materials, we have not experienced significant supply chain issues to date.
−Removed: Second Quarter Highlights
−Removed: For the three months ended June 30, 2023, as compared to the three months ended June 30, 2022 unless otherwise noted, key drivers of our financial performance included:
+Added: Third Quarter Highlights
+Added: For the three months ended September 30, 2023, as compared to the three months ended September 30, 2022, unless otherwise noted, key drivers of our financial performance included:
• Total revenues increased $26.8 million, or 4.6%.
−Removed: Leasing revenue increased $62.9 million, or 16.3%, delivery and installation revenue increased $1.9 million, or 1.7%, rental unit sales decreased $4.7 million, or 29.9%, and new unit sales revenue decreased $0.9 million, or 9.1%.
+Added: Leasing revenue increased $39.0 million, or 9.1%, and new unit sales revenue increased $0.5 million, or 5.7%.
+Added: These increases were partially offset by a delivery and installation revenue decrease of $11.4 million, or 9.0%, and rental unit sales, which decreased $1.2 million, or 9.1%.
Key leasing revenue drivers included:
−Removed: • Average portable storage units on rent decreased 10,301 units, or 6.3%, and average modular space units on rent decreased 3,529 units, or 3.4%.
• Average modular space monthly rental rate increased $149, or 15.9%, to $1,089 driven by strong pricing performance across both segments.
Average modular space monthly rental rates increased by $143, or 14.3%, in the Modular segment and by $135, or 18.8%, in the Storage segment.
−Removed: • Average portable storage monthly rental rate increased $48, or 27.0%, to $226 driven by increased pricing as a result of our price management tools and processes.
+Added: • Average portable storage monthly rental rate increased $49, or 24.9%, to $246 driven by increased pricing as a result of our price management tools and processes as well as due to higher rates on the acquired climate-controlled containers and refrigerated storage units.
+Added: • Average portable storage units on rent decreased 28,328 units, or 16.0%, and average modular space units on rent decreased 5,140 units, or 4.9%.
• Average utilization for portable storage units decreased to 70.0% from 88.7% for the same period in 2022 driven by decreased demand in 2023 as compared to the same period in 2022.
Average utilization for modular space units decreased 450 basis points ("bps") to 64.2%.
−Removed: • Modular segment revenue, which represented 63.7% of consolidated revenue for the three months ended June 30, 2023, increased $35.4 million, or 10.6%, to $370.7 million.
−Removed: The increase was driven by our core leasing revenue, which increased $39.6 million, or 16.4%, due to continued growth of pricing and VAPS, and by delivery and installation revenues, which increased $3.2 million, or 4.4%, driven by increased pricing.
−Removed: Rental unit sales decreased $6.2 million, or 46.3%, and new unit sales decreased $1.3 million, or 15.3%.
−Removed: Modular revenue drivers for the three months ended June 30, 2023 included:
+Added: • Modular segment revenue, which represented 64.1% of consolidated revenue for the three months ended September 30, 2023, increased $25.7 million, or 7.1%, to $387.8 million.
+Added: The increase was driven by our core leasing revenue, which increased $33.5 million, or 12.9%, due to continued growth of pricing and VAPS, partially offset by decreased delivery and installation revenues, which decreased $5.1 million, or 6.2%, driven by decreased activity.
+Added: sales decreased $3.5 million, or 29.7%, and new unit sales increased $0.8 million, or 10.1%.
+Added: Modular revenue drivers for the three months ended September 30, 2023 included:
• Modular space average monthly rental rate of $1,142 increased 14.3% year over year representing a continuation of the long-term price optimization and VAPS penetration opportunities across our portfolio.
• Average modular space units on rent decreased 1,434, or 1.7%, year over year.
−Removed: • Average modular space monthly utilization decreased 190 bps to 65.8% for the three months ended June 30, 2023, as compared to the three months ended June 30, 2022.
−Removed: • Storage segment revenue, which represented 36.3% of consolidated revenue for the three months ended June 30, 2023, increased $23.7 million, or 12.6%, to $211.4 million.
−Removed: The increase was driven by our core leasing revenue, which grew $23.3 million, or 16.1%, due to increased pricing, and was partially offset by lower units on rent volumes
−Removed: and lower delivery and installation revenues, which decreased $1.3 million, or 3.3%.
−Removed: Rental unit sales increased $1.4 million, or 58.3%, and new unit sales increased $0.3 million, or 20.0%.
−Removed: Storage revenue drivers for the three months ended June 30, 2023 included:
−Removed: • Portable storage average monthly rental rate of $226 increased 27.0% year over year as a result of our price management tools and processes and early benefits from increased VAPS penetration opportunities.
+Added: • Average modular space monthly utilization decreased 250 bps to 65.4% for the three months ended September 30, 2023, as compared to the three months ended September 30, 2022.
+Added: • Storage segment revenue, which represented 35.9% of consolidated revenue for the three months ended September 30, 2023, increased $1.2 million, or 0.6%, to $217.1 million.
+Added: The increase was driven by our core leasing revenue, which grew $5.5 million, or 3.3%, due to increased pricing and contributions from the recently acquired climate-controlled containers and refrigerated storage units, offset by lower overall units on rent.
+Added: Delivery and installation revenues decreased $6.3 million, or 14.1%, driven by decreased activity.
+Added: Rental unit sales increased $2.2 million, or 118.3%, and new unit sales decreased $0.2 million, or 11.8%.
+Added: Storage revenue drivers for the three months ended September 30, 2023 included:
+Added: • Portable storage average monthly rental rate of $246 increased 24.9% year over year as a result of our price management tools, processes and early benefits from increased VAPS penetration opportunities, as well as due to higher rates on the acquired climate-controlled containers and refrigerated storage units.
+Added: Approximately 5% of the 24.9% increase was driven by acquired climate-controlled containers and refrigerated storage units.
Modular space average monthly rental rate of $854 increased 18.8% year over year as a result of price optimization and increased VAPS penetration.
−Removed: • Average portable storage units on rent decreased 10,282, or 6.3%, year over year driven by lower demand during 2023 versus the high growth achieved in 2022.
−Removed: Average modular space units on rent decreased 3,032, or 13.6%, year over year.
−Removed: • Average portable storage monthly utilization decreased 12.9% to 73.2% for the three months ended June 30, 2023, as compared to the three months ended June 30, 2022.
−Removed: Average modular space monthly utilization decreased 10.4% to 62.3% for the three months ended June 30, 2023, as compared to the three months ended June 30, 2022.
−Removed: • Generated income from continuing operations of $87.7 million for the three months ended June 30, 2023.
−Removed: Discrete costs in the period included $2.2 million of integration costs.
−Removed: • Generated Adjusted EBITDA from continuing operations of $261.3 million for the three months ended June 30, 2023, representing an increase of $52.7 million, or 25.3%, as compared to the same period in 2022.
−Removed: This increase was driven primarily by increased leasing and delivery and installation gross profit.
−Removed: • Adjusted EBITDA margin from continuing operations was 44.9% in the second quarter of 2023 and increased 500 bps versus prior year driven by continued expansion of all margin lines.
−Removed: Most significantly, delivery and installation margins increased 230 bps versus prior year and leasing margins increased 90 bps versus prior year both driven primarily by increased pricing.
−Removed: Additionally, selling, general, and administrative expenses included in Adjusted EBITDA decreased as a percentage of revenue by 260 bps versus 2022 driving the majority of the remaining margin expansion.
−Removed: • Net cash provided by operating activities increased $13.8 million to $202.2 million for the three months ended June 30, 2023 despite the divestitures of the Tank and Pump and UK Storage Segments.
+Added: • Average portable storage units on rent decreased 28,252, or 16.1%, year over year driven by lower demand during 2023 versus the high growth achieved in 2022 including the impact of fewer retail remodels and timing of seasonal demand versus the prior year.
+Added: Average modular space units on rent decreased 3,706, or 16.8%, year over year due to lower demand.
+Added: • Average portable storage monthly utilization decreased 18.7% to 70.1% for the three months ended September 30, 2023, as compared to the three months ended September 30, 2022.
+Added: Average modular space monthly utilization decreased 12.6% to 59.4% for the three months ended September 30, 2023, as compared to the three months ended September 30, 2022.
+Added: • Generated income from continuing operations of $91.5 million for the three months ended September 30, 2023.
+Added: Discrete costs in the period included $1.6 million of integration and transaction costs.
+Added: • Generated Adjusted EBITDA from continuing operations of $265.5 million for the three months ended September 30, 2023, representing an increase of $26.2 million, or 10.9%, as compared to the same period in 2022.
+Added: This increase was driven primarily by increased leasing revenue.
+Added: • Adjusted EBITDA margin from continuing operations was 43.9% in the third quarter of 2023 and increased 250 bps versus prior year driven by continued expansion of most margin lines.
+Added: Most significantly, leasing margins increased 280 bps versus prior year and delivery and installation margins increased 120 bps versus prior year, both driven primarily by increased pricing.
+Added: Selling, general, and administrative expenses included in Adjusted EBITDA increased as a percentage of revenue by 110 bps versus 2022, partially offsetting the increased leasing and delivery and installation margins.
+Added: • Net cash provided by operating activities decreased $19.4 million to $191.0 million for the three months ended September 30, 2023 in part due to the divestitures of the Tank and Pump and UK Storage Segments.
Net cash used in investing activities, excluding cash used as part of acquisitions, decreased by $83.8 million as a result of reduced refurbishment spending and decreased purchases of new fleet as a result of lower utilization.
−Removed: • Generated Free Cash Flow of $159.6 million for the three months ended June 30, 2023 representing an increase of $90.2 million as compared to the same period in 2022.
−Removed: This Free Cash Flow along with additional net borrowings under the ABL Facility (defined as receipts from borrowings, less repayment of borrowings from the condensed consolidated statement of cash flows) and proceeds of $404.3 million related to the sale of the former UK Storage Solutions segment, net of the settlement of a contingent foreign currency forward contract to sell £330.0 million upon the closing of the sale, were deployed to:
−Removed: • Acquire three regional and local storage and modular portfolios of approximately 1,500 storage units and 200 modular units for $69.8 million;
−Removed: • Return $239.2 million to shareholders through stock repurchases, reducing outstanding Common Stock by 5,406,011 shares.
+Added: • Generated Free Cash Flow of $147.8 million for the three months ended September 30, 2023 representing an increase of $64.4 million as compared to the same period in 2022.
+Added: This Free Cash Flow along with additional net borrowings under the ABL Facility (defined as receipts from borrowings, less repayment of borrowings from the condensed consolidated statement of cash flows), were deployed to:
+Added: • Acquired national provider of cold storage solutions and a regional modular space manufacturing and leasing business, with portfolios of approximately 2,200 climate-controlled containers and refrigerated storage trailers and 1,300 modular leasing units for $332.8 million, net of cash acquired;
+Added: • Returned $219.9 million to shareholders through stock repurchases, reducing outstanding Common Stock by 5,042,524 shares.
• We believe the predictability of our free cash flow allows us to pursue multiple capital allocation priorities opportunistically, including investing in organic opportunities we see in the market, maintaining leverage in our stated range, opportunistically executing accretive acquisitions, and returning capital to shareholders.
Consolidated Results of Operations
−Removed: Three Months Ended June 30, 2023 Compared to the Three Months Ended June 30, 2022
−Removed: Our condensed consolidated statements of operations for the three months ended June 30, 2023 and 2022 are presented below.
−Removed: Three Months Ended June 30, 2023 vs.
+Added: Three Months Ended September 30, 2023 Compared to the Three Months Ended September 30, 2022
+Added: Our condensed consolidated statements of operations for the three months ended September 30, 2023 and 2022 are presented below.
+Added: Three Months Ended September 30, 2023 vs.
(in thousands)
16 unchanged sentences
Other depreciation and amortization 17,852 15,656 2,196
−Removed: Currency losses (gains), net 14 (173) 187
+Added: Currency losses, net 96 160 (64)
Other income, net (8,336) (2,520) (5,816)
6 unchanged sentences
Income from discontinued operations before income tax — 20,285 (20,285)
+Added: Gain on sale of discontinued operations — 34,049 (34,049)
Income tax expense from discontinued operations — 3,917 (3,917)
1 unchanged sentence
Net income $ 91,516 $ 128,593 $ (37,077)
−Removed: Comparison of Three Months Ended June 30, 2023 and 2022
−Removed: Total revenue increased $59.2 million, or 11.3%, to $582.1 million for the three months ended June 30, 2023 from $522.9 million for the three months ended June 30, 2022.
+Added: Comparison of Three Months Ended September 30, 2023 and 2022
+Added: Total revenue increased $26.8 million, or 4.6%, to $604.8 million for the three months ended September 30, 2023 from $578.0 million for the three months ended September 30, 2022.
Leasing revenue increased $39.0 million, or 9.1%, as compared to the same period in 2022 driven by improved pricing and value added products penetration, partially offset by a decrease of 33,468 average total units on rent.
−Removed: Delivery and installation revenues increased $1.9 million, or 1.7%, due to increased pricing across both of our segments.
−Removed: Rental unit sales decreased $4.7 million, or 29.9%, and new unit sales decreased $0.9 million, or 9.1%.
−Removed: Total average units on rent for the three months ended June 30, 2023 and 2022 were 254,554 and 268,384, respectively, representing a decrease of 13,830, or 5.2%.
−Removed: Portable storage average units on rent decreased by 10,301 units, or 6.3%, for the three months ended June 30, 2023 driven by lower demand in 2023 as compared to strong delivery and unit on rent growth in 2022.
−Removed: The average portable storage unit utilization rate during the three months ended June 30, 2023 was 73.1% as compared to 86.0% during the same period in 2022.
−Removed: Modular space average units on rent decreased 3,529 units, or 3.4%, for the three months ended June 30, 2023 as compared to the three months ended June 30, 2022.
−Removed: The average modular space unit utilization rate during the three months ended June 30, 2023 was 65.1% as compared to 68.7% during the same period in 2022.
−Removed: Modular space average monthly rental rates increased 19.2% to $1,051 for the three months ended June 30, 2023.
+Added: Delivery and installation revenues decreased $11.4 million, or 9.0%, due to decreased deliveries and returns across both of our segments.
+Added: Rental unit sales decreased $1.2 million, or 9.1%, and new unit sales increased $0.5 million, or 5.7%.
+Added: Total average units on rent for the three months ended September 30, 2023 and 2022 were 248,450 and 281,918, respectively, representing a decrease of 33,468, or 11.9%.
+Added: Portable storage average units on rent decreased by 28,328 units, or 16.0%, for the three months ended September 30, 2023 driven by lower demand in 2023 including the impact of fewer retail remodels and timing of seasonal demand as compared to strong delivery and unit on rent growth in 2022.
+Added: The average portable storage unit utilization rate during the three months ended September 30, 2023 was 70.0% as compared to 88.7% during the same period in 2022.
+Added: Modular space average units on rent decreased 5,140 units, or 4.9%, for the three months ended September 30, 2023 as compared to the three months ended September 30, 2022.
+Added: The average modular space unit utilization rate during the three months ended September 30, 2023 was 64.2% as compared to 68.7% during the same period in 2022.
+Added: Modular space average monthly rental rates increased 15.9% to $1,089 for the three months ended September 30, 2023.
Average modular space monthly rental rates increased by $143, or 14.3%, to $1,142 in the Modular segment and by $135, or 18.8%, in the Storage segment.
Increases were driven by a continuation of the long-term price optimization and VAPS penetration opportunities across our Modular segment as well as by application of these same price management tools and processes across the Storage segment.
−Removed: Average portable storage monthly rental rates increased 27.0% to $226 for the three months ended June 30, 2023 driven by our price management tools and processes and early benefits from increased VAPS penetration opportunities on our basic VAPS offerings in the Storage segment, which began in the second quarter of 2022.
+Added: Average portable storage monthly rental rates increased 24.9% to $246 for the three months ended September 30, 2023 as a result of our price management tools, processes and early benefits from increased VAPS penetration opportunities, as well as due to higher rates on the acquired climate-controlled containers and refrigerated storage units.
+Added: Approximately 5% of the 24.9% increase was driven by acquired climate-controlled containers and refrigerated storage units.
Gross Profit:
−Removed: Gross profit increased $52.7 million, or 19.1%, to $327.9 million for the three months ended June 30, 2023 from $275.2 million for the three months ended June 30, 2022.
−Removed: The increase in gross profit was a result of a $52.4 million increase in leasing gross profit and increased delivery and installation gross profit of $3.1 million, partially offset by decreased new and rental unit sales gross profit of $1.7 million.
−Removed: Increases were primarily a result of increased revenues due to favorable average monthly rental rates and delivery and installation pricing across both portable storage and modular space units, which offset lower unit on rent volumes.
−Removed: Cost of leasing and services increased by $9.3 million, or 5.4%, for the three months ended June 30, 2023 versus the three months ended June 30, 2022, driven by a $7.6 million, or 13.4%, increase in labor costs, a $2.8 million, or 11.6%, increase in material costs, and a $1.4 million, or 6.0%, increase in vehicle, equipment and other costs, partially offset by a $2.6 million, or 3.9%, decrease in subcontractor costs.
−Removed: Cost of sales decreased by $3.9 million, or 28.5%, which is in line with decreased sales revenues of 22.9% for the three months ended June 30, 2023, resulting in improved sales gross profit margins.
−Removed: The year over year changes in each of these cost components was consistent with historical trends and management's expectations given the respective change in sales volume and inflationary pressures impacting our business.
−Removed: Increases in gross profit were offset partially by increased depreciation of $1.2 million, or 1.9%, as a result of capital investments made over the past twelve months in rental equipment including acquired fleet.
−Removed: Our resulting gross profit percentage was 56.3% and 52.6% for the three months ended June 30, 2023 and 2022, respectively.
−Removed: Our gross profit percentage, excluding the effects of depreciation, was 67.4% and 64.7% for the three months ended June 30, 2023 and 2022, respectively.
−Removed: These increases were driven primarily by continued price optimization within leasing, delivery, and installation revenues and execution of VAPS penetration opportunities that have outpaced increases in cost of leasing and services.
−Removed: Selling, general and administrative expense ("SG&A") decreased $3.3 million, or 2.2%, to $146.8 million for the three months ended June 30, 2023, compared to $150.1 million for the three months ended June 30, 2022.
−Removed: Integration expenses declined $3.0 million, or 56.8%, during the period and service agreements and professional fees decreased $1.5 million, or 6.8%.
−Removed: Employee SG&A excluding stock compensation decreased $5.9 million, or 8.6%, primarily as a result of reduced variable compensation.
−Removed: Real estate costs increased $2.1 million, or 11.6%, and non-income business taxes increased $1.0 million, or 53.0%, partially offsetting these declines.
+Added: Gross profit increased $41.8 million, or 14.0%, to $339.7 million for the three months ended September 30, 2023 from $297.9 million for the three months ended September 30, 2022.
+Added: The increase in gross profit was a result of a $42.4 million increase in leasing gross profit and was partially offset by decreased delivery and installation gross profit of $1.8 million.
+Added: Increases in leasing gross profits were primarily a result of increased revenues due to favorable average monthly rental rates including VAPS across both portable storage and modular space units, which more than offset lower unit on rent volumes.
+Added: Cost of leasing and services decreased by $13.1 million, or 6.6%, for the three months ended September 30, 2023 versus the three months ended September 30, 2022, driven by a decrease in subcontractors costs of $14.0 million, or 17.4%, and materials of $4.1 million, or 12.6%.
+Added: These decreased costs were partially offset by a $4.8 million, or 7.9%, increase in labor costs.
+Added: Cost of sales decreased by $0.9 million, or 6.9%, which is in line with decreased sales revenues of 3.0% for the three months ended September 30, 2023, resulting in improved sales gross profit margins.
+Added: The year over year changes in each of these cost components was consistent with historical trends and management's expectations given the respective changes in sales volume and inflationary pressures impacting our business.
+Added: Increases in gross profit were also driven by decreased depreciation of $1.1 million, or 1.6%, as a result of lower capital investments made in refurbishments over the past twelve months in rental equipment, partially offset by increases driven by acquired fleet.
+Added: Our resulting gross profit percentage was 56.2% and 51.5% for the three months ended September 30, 2023 and 2022, respectively.
+Added: Our gross profit percentage, excluding the effects of depreciation, was 67.2% and 63.3% for the three months ended September 30, 2023 and 2022, respectively.
+Added: These increases were driven primarily by continued price optimization within leasing and execution of VAPS penetration opportunities that have outpaced increases in cost of leasing and services.
+Added: Selling, general and administrative expense ("SG&A") increased $11.9 million, or 8.5%, to $152.0 million for the three months ended September 30, 2023, compared to $140.1 million for the three months ended September 30, 2022.
+Added: Service agreements and professional fees increased $6.2 million, or 37.3%, driven by increased professional fees and licensing subscription costs, as well as due to higher legal costs.
+Added: Real estate and occupancy costs increased $3.0 million, or 16.2%.
+Added: Stock based compensation increased $1.7 million, or 24.4%.
+Added: Our provision for credit losses increased $7.2 million, or 222.9%.
+Added: Employee SG&A excluding stock compensation decreased $5.7 million, or 8.3%, primarily as a result of reduced variable compensation, and integration expenses declined $3.1 million, or 80.0%, during the period, partially offsetting these increases.
Other Depreciation and Amortization:
−Removed: Other depreciation and amortization increased $2.3 million to $17.3 million for the three months ended June 30, 2023 compared to $15.0 million for the three months ended June 30, 2022.
+Added: Other depreciation and amortization increased $2.2 million to $17.9 million for the three months ended September 30, 2023 compared to $15.7 million for the three months ended September 30, 2022.
The increase was driven by increased depreciation as a result of our recent investments in our CRM system and other infrastructure improvements across our branch network.
−Removed: Currency Losses (Gains), net:
−Removed: Currency losses, net increased by $0.2 million for the three months ended June 30, 2023.
−Removed: This change was primarily attributable to the impact of foreign currency exchanges rate changes on intercompany receivables and payables denominated in a currency other than the subsidiary's functional currency.
+Added: Currency Losses, net:
+Added: Currency losses, net decreased by $0.1 million for the three months ended September 30, 2023 as compared to the three months ended September 30, 2022.
Other Income, Net:
−Removed: Other income, net was $2.8 million for the three months ended June 30, 2023 compared to $3.8 million for the three months ended June 30, 2022.
−Removed: The decrease in other income, net was related to a decrease in insurance recoveries during 2023 as compared to 2022 related to hurricanes in the Gulf Coast and Florida areas of the United States.
+Added: Other income, net was $8.3 million for the three months ended September 30, 2023 compared to $2.5 million for the three months ended September 30, 2022.
+Added: The increase in other income, net was related to an increase in the gain on sale of fixed assets related to a real estate sale transaction during the three months ended September 30, 2023.
Interest Expense:
−Removed: Interest expense increased $14.0 million, or 42.2%, to $47.2 million for the three months ended June 30, 2023 from $33.2 million for the three months ended June 30, 2022.
−Removed: The increase in interest expense was a result of higher overall weighted average interest rates as a result of increased benchmark rates and higher outstanding debt balances.
+Added: Interest expense increased $15.8 million, or 41.6%, to $53.8 million for the three months ended September 30, 2023 from $38.0 million for the three months ended September 30, 2022.
+Added: The increase in interest expense was
+Added: a result of higher overall weighted average interest rates as a result of increased benchmark rates and higher outstanding debt balances.
See Note 9 to the condensed consolidated financial statements for further discussion of our debt.
Income Tax Expense:
−Removed: Income tax expense increased $10.8 million to $31.6 million for the three months ended June 30, 2023 compared to $20.8 million for the three months ended June 30, 2022.
−Removed: The increase in expense was driven by an
−Removed: increase in income from continuing operations before income tax for the three months ended June 30, 2023 as compared to the three months ended June 30, 2022.
+Added: Income tax expense increased $4.5 million to $32.8 million for the three months ended September 30, 2023 compared to $28.3 million for the three months ended September 30, 2022.
+Added: The increase in expense was driven by an increase in income from continuing operations before income tax for the three months ended September 30, 2023 as compared to the three months ended September 30, 2022.
Income from Discontinued Operations:
Income from discontinued operations was related to the former UK Storage Solutions and Tank and Pump segments, which were sold in prior periods.
−Removed: Six Months Ended June 30, 2023 Compared to the Six Months Ended June 30, 2022
−Removed: Our condensed consolidated statements of operations for the six months ended June 30, 2023 and 2022 are presented below.
−Removed: Six Months Ended June 30, 2023 vs.
+Added: Nine Months Ended September 30, 2023 Compared to the Nine Months Ended September 30, 2022
+Added: Our condensed consolidated statements of operations for the nine months ended September 30, 2023 and 2022 are presented below.
+Added: Nine Months Ended September 30, 2023 vs.
2022 $ Change
17 unchanged sentences
Other depreciation and amortization 52,371 45,969 6,402
−Removed: Currency losses (gains), net 6,789 (36) 6,825
+Added: Currency losses, net 6,885 124 6,761
Other income, net (14,533) (7,597) (6,936)
10 unchanged sentences
Net income $ 390,129 $ 253,140 $ 136,989
−Removed: Comparison of Six Months Ended June 30, 2023 and 2022
−Removed: Total revenue increased $173.5 million, or 17.8%, to $1,147.6 million for the six months ended June 30, 2023 from $974.1 million for the six months ended June 30, 2022.
+Added: Comparison of Nine Months Ended September 30, 2023 and 2022
+Added: Total revenue increased $200.3 million, or 12.9%, to $1,752.4 million for the nine months ended September 30, 2023 from $1,552.1 million for the nine months ended September 30, 2022.
Leasing revenue increased $190.3 million, or 16.3%, as compared to the same period in 2022 driven by improved pricing and value added products penetration, partially offset by a decrease of 12,141 average modular space and portable storage units on rent.
1 unchanged sentence
Rental unit sales decreased $6.0 million, or 16.0%, and new unit sales increased $4.5 million, or 17.7%.
−Removed: Total average units on rent for the six months ended June 30, 2023 and 2022 were 260,891 and 262,369, respectively.
−Removed: Modular space average units on rent decreased 2,480 units, or 2.4%, and portable storage average units on rent increased by 1,002 units, or 0.6%, for the six months ended June 30, 2023.
−Removed: The average modular space unit utilization rate during the six months ended June 30, 2023 was 65.6% as compared to 68.6% during the same period in 2022.
−Removed: The average portable storage unit utilization rate during the six months ended June 30, 2023 was 75.9%, as compared to 84.5% during the same period in 2022.
−Removed: Modular space average monthly rental rates increased 19.4% to $1,020 for the six months ended June 30, 2023.
−Removed: Average portable storage monthly rental rates increased 27.7% to $221 for the six months ended June 30, 2023.
+Added: Total average units on rent for the nine months ended September 30, 2023 and 2022 were 256,745 and 268,886, respectively.
+Added: Modular space average units on rent decreased 3,366 units, or 3.2%, and portable storage average units on rent decreased by 8,775 units, or 5.3%, for the nine months ended September 30, 2023.
+Added: The average modular space unit utilization rate during the nine months ended September 30, 2023 was 65.1% as compared to 68.6% during the same period in 2022.
+Added: The average portable storage unit utilization rate during the nine months ended September 30, 2023 was 73.9%, as compared to 86.0% during the same period in 2022.
+Added: Modular space average monthly rental rates increased 18.1% to $1,043 for the nine months ended September 30, 2023.
+Added: Average portable storage monthly rental rates increased 25.8% to $229 for the nine months ended September 30, 2023.
Increases were driven by a continuation of the long-term price optimization and VAPS penetration opportunities across our Modular segment as well as by application of these same price management tools and processes across the Storage segment and from early benefits from increased VAPS penetration opportunities on our basic VAPS offerings in the Storage segment, which began in the second quarter of 2022.
Gross Profit:
−Removed: Gross profit increased $141.7 million, or 27.8%, to $651.0 million for the six months ended June 30, 2023 from $509.3 million for the six months ended June 30, 2022.
+Added: Gross profit increased $183.5 million, or 22.7%, to $990.7 million for the nine months ended September 30, 2023 from $807.2 million for the nine months ended September 30, 2022.
The increase in gross profit is a result of a $166.0 million increase in leasing gross profit, increased delivery and installation gross profit of $18.0 million, and increased new and rental unit sale margins of $1.3 million.
Increases were primarily a result of increased revenues due to favorable average monthly rental rates and delivery and installation pricing across both portable storage and modular space units, which offset lower unit on rent volumes.
−Removed: Cost of leasing and services increased by $30.9 million, or 9.6%, for the six months ended June 30, 2023 versus the six months ended June 30, 2022, driven by a $15.0 million, or 13.6%, increase in labor costs, an $8.5 million, or 19.1%, increase in material costs, a $4.0 million, or 3.3%, increase in subcontractor costs, and a $3.4 million, or 7.5%, increase in vehicle, equipment and other costs.
−Removed: Cost of sales decreased by $1.9 million, or 8.6%, which is in line with decreased sales revenues of 2.3% for the six months ended June 30, 2023, resulting in improved sales gross profit margins.
−Removed: The year over year changes in each of these cost components was consistent with historical trends and management's expectations given the respective change in sales volume and inflationary pressures impacting our business.
−Removed: Depreciation increased to $123.6 million as a result of capital investments made over the past twelve months in rental equipment including acquired fleet.
−Removed: Our gross profit percentage was 56.7% and 52.3% for the six months ended June 30, 2023 and 2022, respectively.
−Removed: Our gross profit percentage, excluding the effects of depreciation, was 67.5% and 64.7% for the six months ended June 30, 2023 and 2022, respectively.
−Removed: These increases were driven primarily by continued price optimization within leasing, delivery, and installation revenues and execution of VAPS penetration opportunities that have outpaced increases in cost of leasing and services.
−Removed: Selling, general and administrative expense ("SG&A") increased $9.4 million, or 3.3%, to $297.7 million for the six months ended June 30, 2023, compared to $288.3 million for the six months ended June 30, 2022.
−Removed: Real estate costs increased $4.2 million, or 11.4%, travel expenses increased $4.2 million, or 42.4%, due to increased travel and training, non-income business taxes increased $2.2 million, or 53.2%, and our provision for credit losses increased $3.2 million, or 48.8%.
−Removed: Stock compensation expense increased $2.1 million to $17.5 million for the six months ended June 30, 2023, compared to $15.4 million for the six months ended June 30, 2022.
−Removed: Partially offsetting these increases, integration expenses declined $3.2 million, or 34.1%, during the period and service agreements and professional fees decreased $2.7 million, or 6.7%.
−Removed: Employee SG&A excluding stock compensation decreased $2.0 million, or 1.5%, primarily as a result of reduced variable compensation.
+Added: Cost of leasing and services increased by $17.8 million, or 3.4%, for the nine months ended September 30, 2023 versus the nine months ended September 30, 2022, driven by a $19.8 million, or 11.6%, increase in labor costs, a $4.4 million, or 5.7%, increase in material costs, and a $3.6 million, or 5.1%, increase in vehicle, equipment and other costs partially offset by a $10.0 million, or 4.9%, decrease in subcontractor costs.
+Added: Cost of sales decreased by $2.8 million, or 7.9%, which is in line with decreased sales revenues of 2.4% for the nine months ended September 30, 2023, resulting in improved sales gross profit margins.
+Added: The year over year changes in each of these cost components was consistent with historical trends and management's expectations given the change in sales volume and inflationary pressures impacting our business.
+Added: Increases in gross profit were offset partially by increased depreciation of $1.8 million, or 0.9%, as a result of capital investments made over the past twelve months in rental equipment including acquired fleet.
+Added: Our gross profit percentage was 56.5% and 52.0% for the nine months ended September 30, 2023 and 2022, respectively.
+Added: Our gross profit percentage, excluding the effects of depreciation, was 67.4% and 64.2% for the nine months ended September 30, 2023 and 2022, respectively.
+Added: These increases were driven primarily by continued price optimization within leasing and execution of VAPS penetration opportunities that have outpaced increases in cost of leasing and services.
+Added: Selling, general and administrative expense ("SG&A") increased $21.3 million, or 5.0%, to $449.7 million for the nine months ended September 30, 2023, compared to $428.4 million for the nine months ended September 30, 2022.
+Added: Real estate and occupancy costs increased $7.3 million, or 13.0%, travel expenses increased $4.2 million, or 29.9%, due to increased travel and training, service agreements and professional fees increased $3.5 million, or 6.3%, and non-income business taxes increased $3.0 million, or 50.5%.
+Added: Our provision for credit losses increased $10.3 million, or 106.0%.
+Added: Stock compensation expense increased $3.6 million to $26.1 million for the nine months ended September 30, 2023, compared to $22.5 million for the nine months ended September 30, 2022.
+Added: Partially offsetting these increases, integration expenses declined $6.3 million, or 47.7%, during the period and.employee SG&A excluding stock compensation decreased $8.6 million, or 4.2%, primarily as a result of reduced variable compensation.
Other Depreciation and Amortization:
−Removed: Other depreciation and amortization increased $4.2 million to $34.5 million for the six months ended June 30, 2023 compared to $30.3 million for the six months ended June 30, 2022.
+Added: Other depreciation and amortization increased $6.4 million to $52.4 million for the nine months ended September 30, 2023 compared to $46.0 million for the nine months ended September 30, 2022.
The increase was driven by increased depreciation as a result of our recent investments in our CRM system and other infrastructure improvements across our branch network.
−Removed: Currency (Gains) Losses, Net:
−Removed: Currency losses, net increased by $6.8 million to a $6.8 million loss for the six months ended June 30, 2023.
+Added: Currency Losses, Net:
+Added: Currency losses, net increased by $6.8 million to $6.9 million for the nine months ended September 30, 2023.
This change was primarily attributable to a loss on the settlement of the contingent foreign currency forward contract relating to the sale of the former UK Storage Solutions segment.
Other Income, Net:
−Removed: Other income, net was $6.2 million for the six months ended June 30, 2023 compared to $5.1 million for the six months ended June 30, 2022.
−Removed: The increase in other income, net was related to an increase in insurance recoveries during the six months ended 2023 as compared to the six months ended 2022 related to hurricanes in the Gulf Coast and Florida areas of the United States.
+Added: Other income, net was $14.5 million for the nine months ended September 30, 2023 compared to $7.6 million for the nine months ended September 30, 2022.
+Added: The increase in other income, net was related to an increase in the gain on sale of fixed assets related to a real estate sale transaction during the nine months ended September 30, 2023 as compared to the nine months ended September 30, 2022.
Interest Expense:
−Removed: Interest expense increased $28.4 million to $92.1 million for the six months ended June 30, 2023 from $63.7 million for the six months ended June 30, 2022.
+Added: Interest expense increased $44.2 million to $145.9 million for the nine months ended September 30, 2023 from $101.7 million for the nine months ended September 30, 2022.
The increase in interest expense was a result of higher overall weighted average interest rates as a result of increased benchmark rates and higher outstanding debt balances.
1 unchanged sentence
Income Tax Expense:
−Removed: Income tax expense increased $29.1 million to expense of $62.1 million for the six months ended June 30, 2023 compared to $32.9 million for the six months ended June 30, 2022.
−Removed: The increase in expense was driven by an increase in income from continuing operations before income tax for the six months ended June 30, 2023 as compared to the six months ended June 30, 2022.
+Added: Income tax expense increased $33.6 million to $94.9 million for the nine months ended September 30, 2023 compared to $61.2 million for the nine months ended September 30, 2022.
+Added: The increase in expense was driven by an increase in income from continuing operations before income tax for the nine months ended September 30, 2023 as compared to the nine months ended September 30, 2022.
Income from Discontinued Operations:
−Removed: Income from discontinued operations increased $109.2 million to $134.6 million for the six months ended June 30, 2023 compared to $25.4 million for the six months ended June 30, 2022.
+Added: Income from discontinued operations increased $58.8 million to $134.6 million for the nine months ended September 30, 2023 compared to $75.8 million for the nine months ended September 30, 2022.
The increase in income from discontinued operations was driven by the gain on sale of the former UK Storage Solutions segment of $176.1 million, partially offset by an increase in income tax expense from discontinued operations as well as having no contribution from the former Tank and Pump segment in 2023.
5 unchanged sentences
As part of the transfer of the ground level offices to Storage, we also adjusted the average modular space monthly rental rate in the Storage segment to only include VAPS specifically applicable to ground level offices, which has also been reflected in the total average modular space monthly rental rate.
−Removed: The following tables and discussion summarize our reportable segment financial information for the six months ended June 30, 2023 and 2022.
−Removed: Comparison of Three Months Ended June 30, 2023 and 2022
−Removed: Three Months Ended June 30, 2023
+Added: The following tables and discussion summarize our reportable segment financial information for the three and nine months ended September 30, 2023 and 2022.
+Added: Comparison of Three Months Ended September 30, 2023 and 2022
+Added: Three Months Ended September 30, 2023
(in thousands, except for units on rent and rates)
10 unchanged sentences
Average portable storage monthly rental rate $ 258 $ 246 $ 246
−Removed: Three Months Ended June 30, 2022
+Added: Three Months Ended September 30, 2022
(in thousands, except for units on rent and rates) Modular Storage Total
9 unchanged sentences
Average portable storage monthly rental rate $ 227 $ 197 $ 197
−Removed: Total revenue increased $35.4 million, or 10.6%, to $370.7 million for the three months ended June 30, 2023 from $335.3 million for the three months ended June 30, 2022.
−Removed: The increase was primarily the result of a $39.6 million, or 16.4%, increase in leasing revenue and a $3.2 million, or 4.4%, increase in delivery and installation revenue driven by improved pricing, partially offset by a decrease of $6.2 million, or 46.3%, in rental unit sales revenue and a $1.3 million, or 15.3%, decrease in new unit sales.
−Removed: Average modular space monthly rental rates increased 17.4% for the three months ended June 30, 2023 to $1,102 driven by the continuation of the long-term price optimization and VAPS penetration opportunities across our portfolio.
+Added: Total revenue increased $25.7 million, or 7.1%, to $387.8 million for the three months ended September 30, 2023 from $362.1 million for the three months ended September 30, 2022.
+Added: The increase was primarily the result of a $33.5 million, or 12.9%, increase in leasing revenue, a $0.8 million, or 10.1%, increase in new unit sales.
+Added: These increases were partially offset by a $5.1 million, or 6.2%, decrease in delivery and installation revenue driven by reduced activity, and a decrease of $3.5 million, or 29.7%, in rental unit sales revenue.
+Added: Average modular space monthly rental rates increased 14.3% for the three months ended September 30, 2023 to $1,142 driven by the continuation of the long-term price optimization and VAPS penetration opportunities across our portfolio.
Average modular space units on rent decreased by 1,434 units, or 1.7%, year over year.
Gross Profit:
−Removed: Gross profit increased $26.1 million, or 17.8%, to $172.7 million for the three months ended June 30, 2023 from $146.6 million for the three months ended June 30, 2022.
+Added: Gross profit increased $31.7 million, or 21.2%, to $181.2 million for the three months ended September 30, 2023 from $149.5 million for the three months ended September 30, 2022.
The increase in gross profit was driven by higher leasing gross profit, which increased $28.0 million, or 15.4%, driven by improved pricing including VAPS.
−Removed: The increase in gross profit from leasing for the three months ended June 30, 2023 was further complemented by a $2.3 million increase in delivery and installation gross profit driven by increased pricing ahead of inflationary cost increases, and partially offset by a $2.4 million decrease in rental unit sales gross profit and a $1.0 million decrease in new unit sales gross profit.
−Removed: Cost of leasing and services increased by $12.8 million, or 10.4%, for the three months ended June 30, 2023 versus the three months ended June 30, 2022, driven by a $4.4 million, or 25.2%, increase in material costs, a $5.9 million, or 14.9%, increase in labor costs, a $1.6 million, or 3.1%, increase in subcontractor costs, and a $0.9 million, or 6.6%, increase in vehicle, equipment and other costs.
−Removed: Cost of sales decreased by $4.0 million, or 36.5%, which is in line with expected costs to deliver decreased sales revenues of 34.2% for three months ended June 30, 2023, resulting in improved sales gross profit margins.
−Removed: The year over year changes in each of these cost components was consistent with historical trends and management's expectations given the respective change in sales volume and inflationary pressures impacting our business.
−Removed: Increases in gross profit were offset partially by increased depreciation of $0.5 million, or 0.9%, as a result of capital investments made over the past twelve months in rental equipment including acquired fleet.
+Added: The increase in gross profit from leasing for the three months ended September 30, 2023 was further complemented by a $0.7 million increase in delivery and installation gross profit driven by increased pricing, and a $1.1 million increase in new unit sales gross profit partially offset by a $2.2 million decrease in rental unit sales gross profit.
+Added: In addition, cost of leasing and services decreased by $0.3 million, or 0.2%, for the three months ended September 30, 2023 versus the three months ended September 30, 2022, driven by a $3.5 million, or 5.7%, decrease in subcontractor costs, and a $0.6 million, or 2.7%, decrease in material costs, partially offset by a $3.4 million, or 7.8%, increase in labor costs, and a $0.6 million, or 4.1%, increase in vehicle, equipment and other costs.
+Added: Cost of sales decreased by $1.5 million, or 14.7%, which is in line with the decreased sales revenues of 13.7% for three months ended September 30, 2023.
+Added: The year over year changes in each of these cost components was consistent with historical trends and management's expectations given the change in sales volume and inflationary pressures impacting our business.
+Added: The increase in gross profit was also partially driven by decreased depreciation of $4.1 million, or 7.0%, as a result of lower capital investments made in refurbishments over the past twelve months in rental equipment, partially offset by increases driven by acquired fleet.
Adjusted EBITDA:
−Removed: Adjusted EBITDA increased $28.6 million, or 23.3%, to $151.4 million for the three months ended June 30, 2023 from $122.8 million for the three months ended June 30, 2022.
−Removed: The increase was primarily driven by higher leasing and delivery and installation gross profit discussed above.
−Removed: SG&A, excluding discrete items, decreased $3.0 million, or 3.6%, for the three months ended June 30, 2023, as compared to the three months ended June 30, 2022 driven primarily by decreased variable compensation costs.
+Added: Adjusted EBITDA increased $13.2 million, or 9.8%, to $148.4 million for the three months ended September 30, 2023 from $135.2 million for the three months ended September 30, 2022.
+Added: The increase was primarily driven by higher gross profit discussed above.
+Added: SG&A, excluding discrete items, increased $11.3 million, or 14.8%, for the three months ended September 30, 2023, as compared to the three months ended September 30, 2022.
Capital Expenditures for Rental Equipment:
−Removed: Purchases of rental equipment and refurbishments decreased $32.1 million, or 38.9%, to $50.4 million for the three months ended June 30, 2023 from $82.5 million for the three months ended June 30, 2022 driven by successful efforts to reduce our refurbishment costs through better unit selection and work scope during 2023.
−Removed: Total revenue increased $23.8 million, or 12.7%, to $211.4 million for the three months ended June 30, 2023 from $187.6 million for the three months ended June 30, 2022.
+Added: Purchases of rental equipment and refurbishments decreased $29.7 million, or 36.6%, to $51.4 million for the three months ended September 30, 2023 from $81.1 million for the three months ended September 30, 2022 driven by successful efforts to reduce our refurbishment costs through better unit selection and work scope during 2023.
+Added: Total revenue increased $1.1 million, or 0.5%, to $217.0 million for the three months ended September 30, 2023 from $215.9 million for the three months ended September 30, 2022.
The increase was primarily the result of a $5.5 million, or 3.3%, increase in leasing revenue.
1 unchanged sentence
These increases were partially offset by a $6.3 million, or 14.1%, decrease in delivery and installation revenue driven by lower volumes during the period.
−Removed: Average portable storage monthly rental rates increased 27.0% for the three months ended June 30, 2023 to $226 driven by our price management tools and processes and early benefits from increased VAPS penetration opportunities on our basic VAPS offerings, which began in the second quarter of 2022.
−Removed: Average portable storage units on rent decreased by 10,282 units, or 6.3%, year over year driven by lower demand in 2023 versus very strong demand in 2022.
+Added: Average portable storage monthly rental rates increased 24.9% for the three months ended September 30, 2023 to $246 as a result of our price management tools, processes and early benefits from increased VAPS penetration opportunities, as well as due to higher rates on the acquired climate-controlled containers and refrigerated storage units.
+Added: Approximately 5% of the 24.9% increase was driven by acquired climate-controlled containers and refrigerated storage units.
+Added: Average portable storage units on rent decreased by 28,252 units, or 16.1%, year over year driven by lower demand in 2023 including the impact of fewer retail remodels and timing of seasonal demand as compared to strong delivery and unit on rent growth in 2022.
Average modular space monthly rental rates increased 18.8% year-over-year driven primarily by increased pricing on new deliveries;
1 unchanged sentence
Gross Profit:
−Removed: Gross profit increased by $26.5 million, or 20.6%, to $155.1 million for the three months ended June 30, 2023 compared to $128.6 million for the three months ended June 30, 2022.
+Added: Gross profit increased by $10.2 million, or 6.8%, to $158.5 million for the three months ended September 30, 2023 compared to $148.4 million for the three months ended September 30, 2022.
Gross profit on leasing activity increased by $14.4 million year over year driven by increased pricing as described above.
−Removed: Delivery and installation gross profit increased $0.8 million, or 6.1%, driven by increased pricing ahead of inflationary cost increases.
+Added: Delivery and installation gross profit decreased $2.5 million, or 13.8%, due to lower activity levels.
Sales gross profit increased by $1.3 million to $2.6 million.
−Removed: Cost of leasing and services decreased by $3.6 million, or 7.5%, for the three months ended June 30, 2023 versus the three months ended June 30, 2022, driven by a $4.2 million, or 30.9%, decrease in subcontractor costs and a $1.6 million, or 25.2%, decrease in material costs, partially offset by a $1.7 million, or 9.9%, increase in labor costs and a $0.5 million, or 5.3%, increase in vehicle, equipment and other costs.
+Added: Cost of leasing and services decreased by $12.8 million, or 22.6%, for the three months ended September 30, 2023 versus the three months ended September 30, 2022, driven by a $10.5 million, or 56.1%, decrease in subcontractor costs, a $3.5 million, or 41.2%, decrease in material costs, and a $0.3 million, or 2.9%, decrease in vehicle, equipment and other costs, partially offset by a $1.5 million, or 8.0%, increase in labor costs.
Net reductions were largely driven by lower volumes during the period.
−Removed: Cost of sales increased by $0.1 million, or 3.8%, driven by improved sales gross profit margins on increased sales revenues of 43.6% for three months ended June 30, 2023.
−Removed: The year over year changes in each of these cost components was consistent with historical trends and management's expectations given the respective changes in sales volume and inflationary pressures impacting our business.
+Added: Cost of sales increased by $0.7 million, or 29.1%, driven by increased sales revenues of 57.1% for three months ended September 30, 2023.
+Added: The year over year changes in each of these cost components was consistent with historical
+Added: trends and management's expectations given the respective changes in sales volume and inflationary pressures impacting our business.
These increases were offset partially by increased depreciation of $3.1 million, or 35.5%, as a result of capital investments made over the past twelve months in rental equipment including acquired fleet.
Adjusted EBITDA:
−Removed: Adjusted EBITDA increased $24.1 million, or 28.1%, to $109.9 million for the three months ended June 30, 2023 from $85.8 million for the three months ended June 30, 2022 and the margin expanded to 52.0% from 45.7% as a result of favorable pricing on units and on delivery and installation, and increased VAPS penetration.
−Removed: The increase in
−Removed: Adjusted EBITDA was driven primarily by increased leasing gross profit as described above, partially offset by increased SG&A.
−Removed: SG&A, excluding discrete items, increased $2.2 million, or 4.2%, for the three months ended June 30, 2023, as compared to the three months ended June 30, 2022 driven primarily by an increase to the provision for credit losses and higher real estate costs.
+Added: Adjusted EBITDA increased $13.0 million, or 12.5%, to $117.1 million for the three months ended September 30, 2023 from $104.1 million for the three months ended September 30, 2022 and the margin expanded to 53.9% from 48.2% as a result of favorable pricing on units and increased VAPS penetration.
+Added: The increase in Adjusted EBITDA was driven primarily by increased leasing gross profit as described above, partially offset by increased SG&A.
+Added: SG&A, excluding discrete items, increased $0.3 million, or 0.5%, for the three months ended September 30, 2023, as compared to the three months ended September 30, 2022.
Capital Expenditures for Rental Equipment:
−Removed: Purchases of rental equipment and refurbishments of $5.2 million for the three months ended June 30, 2023 were $29.1 million lower than the prior-year quarter driven by a reduction in new container purchases during 2023 given current utilization and the significant investments made in 2022.
−Removed: Comparison of the Six Months Ended June 30, 2023 and 2022
−Removed: Six Months Ended June 30, 2023
+Added: Purchases of rental equipment and refurbishments of $12.0 million for the three months ended September 30, 2023 were $29.2 million lower than the prior-year quarter driven by a reduction in new container purchases during 2023 given current utilization and the significant investments made in 2022.
+Added: Comparison of the Nine Months Ended September 30, 2023 and 2022
+Added: Nine Months Ended September 30, 2023
(in thousands, except for units on rent and rates)
10 unchanged sentences
Average portable storage monthly rental rate $ 232 $ 229 $ 229
−Removed: Six Months Ended June 30, 2022
+Added: Nine Months Ended September 30, 2022
(in thousands, except for units on rent and rates) Modular Storage Total
9 unchanged sentences
Average portable storage monthly rental rate $ 201 $ 182 $ 182
−Removed: Total revenue increased $96.6 million, or 15.5%, to $720.4 million for the six months ended June 30, 2023 from $623.8 million for the six months ended June 30, 2022.
+Added: Total revenue increased $122.3 million, or 12.4%, to $1,108.2 million for the nine months ended September 30, 2023 from $985.9 million for the nine months ended September 30, 2022.
The increase was primarily the result of a $119.0 million, or 16.4%, increase in leasing revenue and a $8.6 million, or 4.1%, increase in delivery and installation revenue.
−Removed: Average portable storage monthly rental rates increased 22.0% for the six months ended June 30, 2023 to $227 driven by our price management tools and processes and early benefits from increased VAPS penetration opportunities on our basic VAPS offerings, which began in the second quarter of 2022.
Average modular space monthly rental rates increased 16.0% year-over-year to $1,096 driven primarily by increased pricing on new deliveries.
−Removed: Average units on rent also increased 361 units, or 0.4%.
+Added: Average modular space units on rent decreased 237 units, or 0.3%.
+Added: Average portable storage monthly rental rates increased 15.4% for the nine months ended September 30, 2023 to $232 driven by our price management tools, processes and early benefits from increased VAPS penetration opportunities on our basic VAPS offerings, which began in the second quarter of 2022.
+Added: Average portable storage units on rent decreased 19 units, or 3.8%
Gross Profit:
−Removed: Gross profit increased $68.9 million, or 25.6%, to $338.1 million for the six months ended June 30, 2023 from $269.2 million for the six months ended June 30, 2022.
−Removed: The increase in gross profit was driven by higher leasing gross profit, which increased $61.5 million, or 18.2%, driven by improved pricing including VAPS, and a $9.2 million increase in delivery and installation gross profit.
−Removed: These increases in gross profit from leasing for the six months ended June 30, 2023 were further complemented by a $0.8 million increase in new unit sales gross profit, and slightly offset by a $1.8 million decrease in rental unit sales gross profit.
−Removed: Cost of leasing and services increased by $28.7 million, or 12.3%, for the six months ended June 30, 2023 versus the six months ended June 30, 2022, driven by a $9.9 million, or 29.9%, increase in material costs, a $11.1 million, or 14.7%, increase in labor costs, a $5.7 million, or 5.8%, increase in subcontractor costs, and a $1.9 million, or 7.4%,
−Removed: increase in vehicle, equipment and other costs.
−Removed: Cost of sales decreased by $1.7 million, or 9.6%, which is in line with expected costs to deliver decreased sales revenues of 8.3% for six months ended June 30, 2023, resulting in improved sales gross profit margins.
−Removed: The year over year changes in each of these cost components was consistent with historical trends and management's expectations given the respective change in sales volume and inflationary pressures impacting our business.
−Removed: Increases in gross profit were offset partially by a $0.7 million increase in depreciation of rental equipment related to capital investments made in our existing rental equipment including acquired fleet.
+Added: Gross profit increased $100.6 million, or 24.0%, to $519.3 million for the nine months ended September 30, 2023 from $418.7 million for the nine months ended September 30, 2022.
+Added: The increase in gross profit was driven by higher leasing gross profit, which increased $89.3 million, or 17.2%, driven by improved pricing including VAPS, and by a $9.9 million increase in delivery and installation gross profit.
+Added: These increases in gross profit from leasing for the nine months ended September 30, 2023 were further complemented by a $1.9 million increase in new unit sales gross profit, and slightly offset by a $3.9 million decrease in rental unit sales gross profit.
+Added: Cost of leasing and services increased by $28.4 million, or 7.6%, for the nine months ended September 30, 2023 versus the nine months ended September 30, 2022, driven by a $9.3 million, or 16.2%, increase in material costs, a $14.5 million, or 12.2%, increase in labor costs, a $2.1 million, or 1.3%, increase in subcontractor costs, and a $2.5 million, or 6.2%, increase in vehicle, equipment and other costs.
+Added: Cost of sales decreased by $3.3 million, or 11.6%, which is in line with decreased sales revenues of 10.1% for the nine months ended September 30, 2023, resulting in improved sales gross profit margins.
+Added: The year over year changes in each of these cost components was consistent with historical trends and management's expectations given the respective changes in sales volume and inflationary pressures impacting our business.
+Added: The increase in gross profit was also partially driven by a $3.4 million decrease in depreciation of rental equipment as a result of lower capital investments made in refurbishments of rental equipment over the past twelve months, partially offset by increases driven by acquired fleet.
Adjusted EBITDA:
−Removed: Adjusted EBITDA increased $66.0 million, or 29.7%, to $288.4 million for the six months ended June 30, 2023 from $222.4 million for the six months ended June 30, 2022.
+Added: Adjusted EBITDA increased $79.1 million, or 22.1%, to $436.8 million for the nine months ended September 30, 2023 from $357.7 million for the nine months ended September 30, 2022.
The increase was driven by higher leasing gross profit discussed above.
−Removed: SG&A, excluding discrete items, increased $4.2 million, or 2.7%, for the six months ended June 30, 2023, as compared to the six months ended June 30, 2022 driven primarily by increased travel and training costs, higher real estate costs, and increased salaries, partially offset by lower variable compensation.
+Added: SG&A, excluding discrete items, increased $15.5 million, or 6.6%, for the nine months ended September 30, 2023, as compared to the nine months ended September 30, 2022 driven primarily by a $3.8 million or 37.9% increase in travel costs, a $3.4 million or 8.8% increase in real estate costs, a $4.9 million or 8.0% increase in salaries, and a $4.9 million or 58.7% increase to the provision for credit losses, partially offset by a $5.6 million or 12.6% decrease in variable compensation.
Capital Expenditures for Rental Equipment:
−Removed: Purchases of rental equipment and refurbishments decreased $50.3 million, or 35.9%, to $89.8 million for the six months ended June 30, 2023 from $140.1 million for the six months ended June 30, 2022.
−Removed: Total revenue increased $76.9 million, or 22.0%, to $427.2 million for the six months ended June 30, 2023 from $350.3 million for the six months ended June 30, 2022.
+Added: Purchases of rental equipment and refurbishments decreased $79.9 million, or 36.1%, to $141.2 million for the nine months ended September 30, 2023 from $221.1 million for the nine months ended September 30, 2022 driven by successful efforts to reduce our refurbishment costs through better unit selection and work scope during 2023.
+Added: Total revenue increased $78.2 million, or 13.8%, to $644.3 million for the nine months ended September 30, 2023 from $566.1 million for the nine months ended September 30, 2022.
The increase was primarily the result of a $71.3 million, or 16.2%, increase in leasing revenue and a $3.1 million, or 2.7%, increase in delivery and installation revenue.
Sales revenues increased $3.8 million, or 35.8%.
−Removed: Average portable storage monthly rental rates increased 27.7% year-over-year for the six months ended June 30, 2023 to $221 driven by our price management tools and processes and early benefits from increased VAPS penetration opportunities on our basic VAPS offerings, which began in the second quarter of 2022.
−Removed: Average portable storage units on rent increased by 992 units, or 0.6%, year over year driven by unit growth in 2022.
−Removed: Average modular space monthly rental rates increased 27.2% year-over-year for the six months ended June 30, 2023 to $796 driven primarily by increased pricing on new deliveries;
+Added: Average portable storage monthly rental rates increased 25.8% year-over-year for the nine months ended September 30, 2023 to $229 driven by our price management tools and processes and early benefits from increased VAPS penetration opportunities on our basic VAPS offerings, which began in the second quarter of 2022.
+Added: Average portable storage units on rent decreased by 8,756 units, or 5.3%, year over year driven by reduced activity in 2023 compared to 2022.
+Added: Average modular space monthly rental rates increased 24.0% year-over-year for the nine months ended September 30, 2023 to $815 driven primarily by increased pricing on new deliveries;
however, average units on rent decreased 14.0% driven by lower demand.
Gross Profit:
−Removed: Gross profit increased by $72.8 million, or 30.3%, to $312.9 million for the six months ended June 30, 2023 compared to $240.1 million for the six months ended June 30, 2022.
+Added: Gross profit increased by $83.0 million, or 21.4%, to $471.4 million for the nine months ended September 30, 2023 compared to $388.4 million for the nine months ended September 30, 2022.
Gross profit on leasing activity increased by $76.7 million year over year, or 20.8%, driven by increased pricing as described above.
−Removed: Delivery and installation gross profit increased $10.6 million, or 47.1%, driven by increased pricing ahead of inflationary cost increases.
−Removed: Sales gross profit decreased by $0.4 million to $2.1 million.
−Removed: Cost of leasing and services increased by $2.2 million, or 2.5%, for the six months ended June 30, 2023 versus the six months ended June 30, 2022, driven by a $3.8 million, or 11.3%, increase in labor costs and a $1.5 million, or 7.6%, increase in vehicle, equipment and other costs, partially offset by a $1.4 million, or 12.5%, decrease in material costs and a $1.7 million, or 6.7%, decrease in subcontractor costs.
−Removed: Cost of sales decreased by $0.2 million, or 4.6%, even as sales revenues increased $1.8 million, or 25.9%, driven by improved sales gross profit margins for six months ended June 30, 2023.
−Removed: These increases were offset partially by increased depreciation of $2.1 million, or 12.9%, as a result of capital investments made over the past twelve months in rental equipment including acquired fleet.
+Added: Delivery and installation gross profit increased $8.3 million, or 20.6%, driven by increased pricing.
+Added: Sales gross profit increased by $3.3 million to $7.0 million.
+Added: Cost of leasing and services decreased by $10.6 million, or 7.3%, for the nine months ended September 30, 2023 as compared to the nine months ended September 30, 2022, driven by a $4.9 million, or 24.7%, decrease in material costs and a $12.2 million, or 28.0%, decrease in subcontractor costs, partially offset by a $5.3 million, or 10.1%, increase in labor costs and a $1.1 million, or 3.8%, increase in vehicle, equipment and other costs.
+Added: Cost of sales increased only moderately by $0.4 million, or 6.5%, as sales revenues increased $3.8 million, or 35.5%, driving improved sales gross profit margins for the nine months ended September 30, 2023.
+Added: The year over year changes in each of these cost components was consistent with historical trends and management's expectations given the respective changes in sales volume and inflationary pressures impacting our business.
+Added: These increases were partially offset by increased depreciation of $5.2 million, or 20.8%, as a result of capital investments made over the past twelve months in rental equipment including acquired fleet.
Adjusted EBITDA:
−Removed: Adjusted EBITDA increased $65.8 million, or 42.7%, to $219.8 million for the six months ended June 30, 2023 from $154.0 million for the six months ended June 30, 2022.
+Added: Adjusted EBITDA increased $78.8 million, or 30.5%, to $336.9 million for the nine months ended September 30, 2023 from $258.1 million for the nine months ended September 30, 2022.
The increase in Adjusted EBITDA was driven primarily by increased leasing gross profit as described above, partially offset by increased SG&A.
−Removed: SG&A, excluding discrete items, increased $8.0 million, or 7.7%, for the six months ended June 30, 2023, as compared to the six months ended June 30, 2022 driven primarily by increased travel and training costs, higher real estate costs, increased salaries, and an increase to the provision for credit losses, partially offset by lower variable compensation.
+Added: SG&A, excluding discrete items, increased $8.3 million, or 5.3%, for the nine months ended September 30, 2023, as compared to the nine months ended September 30, 2022 driven primarily by a $3.8 million, or 22.9% increase in real estate costs, $3.1 million,
+Added: or 6.8%, increase in salaries, and a $5.4 million, or 397.5%, increase to the provision for credit losses, partially offset by a $11.7 million or 35.0% decrease in variable compensation.
Capital Expenditures for Rental Equipment:
−Removed: Purchases of rental equipment and refurbishments of $12.6 million for the six months ended June 30, 2023 were $41.9 million lower than the prior-year quarter driven by a reduction in new container purchases during 2023 given current utilization and the significant investments made in 2022.
+Added: Purchases of rental equipment and refurbishments of $24.5 million for the nine months ended September 30, 2023 were $71.2 million lower than the prior-year period driven by a reduction in new container purchases during 2023 given current utilization and the significant investments made in 2022.
Other Non-GAAP Financial Data and Reconciliations
28 unchanged sentences
Three Months Ended
−Removed: June 30, Six Months Ended
+Added: September 30, Nine Months Ended
+Added: September 30,
(in thousands) 2023 2022 2023 2022
3 unchanged sentences
Depreciation and amortization 84,802 83,671 242,927 234,762
−Removed: Currency losses (gains), net 14 (173) 6,789 (36)
−Removed: Restructuring costs, lease impairment expense and other related charges (income) — (95) 22 168
+Added: Currency losses, net 96 160 6,885 124
+Added: Restructuring costs, lease impairment expense and other related charges — — 22 168
Transaction costs 787 — 787 35
8 unchanged sentences
Three Months Ended
−Removed: June 30, Six Months Ended
+Added: September 30, Nine Months Ended
+Added: September 30,
(in thousands) 2023 2022 2023 2022
12 unchanged sentences
Three Months Ended
−Removed: June 30, Six Months Ended
+Added: September 30, Nine Months Ended
+Added: September 30,
(in thousands) 2023 2022 2023 2022
10 unchanged sentences
Three Months Ended
−Removed: June 30, Six Months Ended
+Added: September 30, Nine Months Ended
+Added: September 30,
(in thousands) 2023 2022 2023 2022
22 unchanged sentences
The borrowing bases are a function of, among other things, the value of the assets in the relevant collateral pool, of which our rental equipment represents the largest component.
−Removed: At June 30, 2023, we had $1.0 billion of available borrowing capacity under the ABL Facility.
−Removed: Cash Flow Comparison of the Six Months Ended June 30, 2023 and 2022
+Added: At September 30, 2023, we had $1.3 billion of available borrowing capacity under the ABL Facility.
+Added: On September 25, 2023, Williams Scotsman, Inc.
+Added: (“WSI”), a subsidiary of the Company, completed a private offering of $500.0 million in aggregate principal amount of the 2031 Secured N otes .
+Added: P roceeds were used to repay approximately $494.0 million of outstanding indebtedness under the ABL Facility and certain fees and expenses.
+Added: T he 2031 Secured N otes mature on October 1, 2031 and bear interest at a rate of 7.375% per annum.
+Added: Cash Flow Comparison of the Nine Months Ended September 30, 2023 and 2022
Significant factors driving our liquidity include cash flows generated from operating activities and capital expenditures.
3 unchanged sentences
The following summarizes our change in cash and cash equivalents for the periods presented:
−Removed: Six Months Ended
+Added: Nine Months Ended
+Added: September 30,
(in thousands)
Net cash provided by operating activities $ 541,918 $ 544,238
−Removed: Net cash provided by (used in) investing activities 158,477 (313,738)
+Added: Net cash used in investing activities (217,522) (225,930)
Net cash used in financing activities (337,082) (313,723)
3 unchanged sentences
Cash Flows from Operating Activities
−Removed: Cash provided by operating activities for the six months ended June 30, 2023 was $350.9 million as compared to $333.9 million for the six months ended June 30, 2022, an increase of $17.1 million.
−Removed: The increase was due to an increase of $60.9 million of net income, adjusted for non-cash items, partially offset by a decrease of $43.8 million in the net movements of the operating assets and liabilities.
+Added: Cash provided by operating activities for the nine months ended September 30, 2023 was $541.9 million as compared to $544.2 million for the nine months ended September 30, 2022, a decrease of $2.3 million.
+Added: The decrease was due to a change of $60.9 million in the net movements of the operating assets and liabilities, partially offset by an increase of $58.6 million of net income, adjusted for non-cash items.
Cash Flows from Investing Activities
−Removed: Cash provided by investing activities for the six months ended June 30, 2023 was $158.5 million as compared to cash used in investing activities of $313.7 million for the six months ended June 30, 2022, an increase of $472.2 million in cash provided by investing activities.
−Removed: The increase in cash provided by investing activities was driven by proceeds of $404.0 million from the sale of discontinued operations, a $122.7 million decrease in cash used for the purchase of rental equipment and refurbishments, and a $9.1 million decrease in cash used for the purchase of property, plant and equipment.
−Removed: The increase was partially offset by a $45.5 million increase in cash used in acquisitions, net of cash acquired, a cash payment of $7.7 million for the settlement of the contingent foreign currency forward contract, and a $9.8 million decrease in proceeds from the sale of rental equipment.
+Added: Cash used in investing activities for the nine months ended September 30, 2023 was $217.5 million as compared to $225.9 million for the nine months ended September 30, 2022, a decrease of $8.4 million.
+Added: The decrease in cash used in investing activities was driven by an increase in proceeds from the sale of discontinued operations as cash received for the sale of the former UK Storage Solutions segment in January 2023 of $403.9 million was $84.4 million more than the cash received for the sale of the former Tank and Pump segment of $319.5 million in September 2022.
+Added: The decrease in cash used in investing activities also resulted from a $194.4 million decrease in cash used for the purchase of rental equipment and refurbishments, a $13.5 million decrease in cash used for the purchase of property, plant and equipment, and a $11.6 million increase in proceeds from the sale of property, plant, and equipment.
+Added: The decrease was partially offset by a $273.5 million increase in cash used in acquisitions, net of cash acquired, a $14.3 million decrease in proceeds from the sale of rental equipment, and a cash payment of $7.7 million for the settlement of a contingent foreign currency forward contract upon the closing of the sale of the former UK Storage Solutions segment.
Cash Flows from Financing Activities
−Removed: Cash used in financing activities for the six months ended June 30, 2023 was $520.3 million as compared to $20.8 million for the six months ended June 30, 2022, a change of $499.5 million.
−Removed: The change was primarily due to a $547.1 million increase in repayments of borrowings and a $137.1 million increase in the repurchase of common stock partially offset by a $174.2 million increase in receipts from borrowings.
+Added: Cash used in financing activities for the nine months ended September 30, 2023 was $337.1 million as compared to $313.7 million for the nine months ended September 30, 2022, an increase of $23.4 million.
+Added: The increase was primarily due to a $162.5 million increase in the repurchase of common stock, partially offset by a $121.2 million increase in receipts from borrowings, net of repayment of borrowings.
Free Cash Flow
4 unchanged sentences
Three Months Ended
−Removed: June 30, Six Months Ended
+Added: September 30, Nine Months Ended
+Added: September 30,
(in thousands) 2023 2022 2023 2022
5 unchanged sentences
Free Cash Flow $ 147,768 $ 83,386 $ 410,309 $ 207,428
−Removed: Free Cash Flow for the six months ended June 30, 2023 was $262.5 million as compared to $124.0 million for the six months ended June 30, 2022, an increase of $138.5 million.
−Removed: Free Cash Flow increased year over year principally as a result of the $17.1 million increase in cash provided by operating activities and the $122.7 million decrease in cash used in the purchase of rental equipment and refurbishments, partially offset by the $9.8 million decrease in proceeds from the sale of rental equipment.
−Removed: The $350.9 million in cash provided by operating activities for the three months ended June 30, 2023 was returned to shareholders through repurchases and cancellations of $456.3 million of stock and reinvested into the business to support the purchase of rental equipment, including VAPS, and refurbishments.
+Added: Free Cash Flow for the nine months ended September 30, 2023 was $410.3 million as compared to $207.4 million for the nine months ended September 30, 2022, an increase of $202.9 million.
+Added: Free Cash Flow increased principally as a result of the $194.4 million decrease in cash used in the purchase of rental equipment and refurbishments and the $13.5 million decrease in cash used in the purchase of property, plant and equipment, partially offset by a $14.3 million decrease in proceeds from the sale of rental equipment.
+Added: The $541.9 million in cash provided by operating activities for the nine months ended September 30, 2023 was returned to shareholders through repurchases and cancellations of common stock of $678.2 million and reinvested into the business to support the purchase of rental equipment, including VAPS, and refurbishments.
Material cash requirements
The Company’s material cash requirements include the following contractual and other obligations:
−Removed: The Company has outstanding debt related to its ABL Facility, 2025 Secured Notes, 2028 Secured Notes and finance leases, including interest, totaling $3.0 billion as of June 30, 2023, $14.0 million of which is obligated to be repaid within the next twelve months.
+Added: The Company has outstanding debt related to its ABL Facility, 2025 Secured Notes, 2028 Secured Notes, 2031 Secured Notes and finance leases totaling $3.5 billion as of September 30, 2023, $16.0 million of which is obligated to be repaid within the next twelve months.
Refer to Note 9 for further information regarding outstanding debt.
Operating leases
−Removed: The Company has commitments for future minimum rental payments relating to operating leases, which are primarily for equipment and office space.
−Removed: As of June 30, 2023, the Company had lease obligations of $276.4 million, with $63.7 million payable within the next twelve months.
+Added: The Company has commitments for future minimum rental payments relating to operating leases, which are primarily for office space.
+Added: As of September 30, 2023, the Company had lease obligations of $295.7 million, with $66.7 million payable within the next twelve months.
In addition to the cash requirements described above, the Company has a share repurchase program authorized by the Board of Directors, which allows the Company to repurchase up to $1.0 billion of outstanding shares of Common Stock and equivalents.
This program does not obligate the Company to repurchase any specific amount of shares.
−Removed: As of June 30, 2023, $854.1 million of the approved share repurchase pool remained available.
+Added: As of September 30, 2023, $634.2 million of the approved share repurchase pool remained available.
The Company believes its cash, cash flows generated from ongoing operations, and continued access to its revolving credit facility as well as access to debt markets are sufficient to satisfy its currently anticipated cash requirements over the next twelve months.
−Removed: Critical Accounting Policies and Estimates
+Added: Critical Accounting Estimates
Our discussion and analysis of our financial condition, results of operations, liquidity and capital resources is based on our condensed consolidated financial statements, which have been prepared in accordance with GAAP.
2 unchanged sentences
The actual results experienced by us may differ materially and adversely from our estimates.
−Removed: For a complete discussion of our significant critical accounting policies, see the “Critical Accounting Policies and Estimates” section in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2022 (the "2022 Annual Report on Form 10-K").
−Removed: There were no significant changes to our critical accounting policies during the six months ended June 30, 2023.
+Added: For a complete
+Added: discussion of our significant critical accounting estimates, see the “Critical Accounting Policies and Estimates” section in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2022 (the "2022 Annual Report on Form 10-K").
+Added: There were no significant changes to our critical accounting estimates during the nine months ended September 30, 2023.
Recently Issued Accounting Standards
43 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.