The company said it expects to deliver the high end of the range of its prior Adjusted EBITDA guidance for 2018, resulting in $170-175 mln of Adjusted EBITDA before the in-year contribution from the ModSpace acquisition.
Then this will be supplemented by four and a half months of contribution from ModSpace's operations, resulting in its updated Adjusted EBITDA guidance of $210 to $220 mln for the 2018 fiscal year."
Overall, the improvement in guidance isn't only driven by acquisition activity. Willscot is seeing organic growth as well.
The company expects to see an improvement in its guidance driven by its Modular -- U.S. segment as units on rent, pricing and value-added products and service all show positive trends.
Looking at top line sale figures, the company also guided 2018 revenue to be in the range of $740-770 mln, which falls in-line with expectations. However, the mid-point of the range is above current expectations. Separately, net rental capital expenditures after gross rental unit sales between $115 mln and $135 mln.
Following this update, shares of WSC are up 5% at $18.00/share in early trade.
The company leases modular space and portable storage units to customers in the commercial and industrial, construction, education, energy, and natural resources, government and other end-markets.
Revenue by customer industry is as follows: Construction 41%, commercial and industrial 37%, energy and natural resources 12%, education 5%, government 3%, and healthcare 2%.