Third Quarter 2016 Investor Conference Call · Q3 2016 Investor Call 2 Safe Harbor ... any...
Transcript of Third Quarter 2016 Investor Conference Call · Q3 2016 Investor Call 2 Safe Harbor ... any...
Third Quarter 2016Investor Conference Call
DRAFT 5
November 17, 2016
Q3 2016 Investor Call 2
Safe HarborBasis of PresentationUnless otherwise noted or unless the context otherwise requires, all references to “we,” “us,” “our,” “AS,” the “Group” and the “Company” refer to Algeco Scotsman Global S.à r.l., a limited liability company incorporated under the laws of Luxembourg, together with its subsidiaries. As used in this presentation, “Americas” means the United States, Canada, Mexico, and, where the context requires, Brazil, and “Asia Pacific” means Australia, New Zealand, and China. Unless otherwise noted or unless the context otherwise requires, all amounts are presented in U.S. dollars (“US$”).
Use of Non-GAAP Financial MeasuresThis presentation includes certain financial measures not calculated and presented in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), including, but not limited to, EBITDA, Adjusted EBITDA, Adjusted Gross Profit, and certain ratios and other metrics derived therefrom. These non-GAAP financial measures are not measures of financial performance in accordance with GAAP and may exclude items that are significant in understanding and assessing our financial condition and results. Therefore, these measures should not be considered in isolation or as alternatives to net income, cash flow from operations or other measures of profitability, liquidity or performance under GAAP. These measures may not be comparable to similarly-titled measures used by other companies. A reconciliation of each non-GAAP financial measure to the most comparable GAAP financial measure is included in an appendix to this presentation.
Use of Constant Currency ResultsWe believe that currency exchange rates are an important factor in understanding period-to-period comparisons of our financial results. Accordingly, we present financial results on a constant currency basis in addition to our reported actual currency results. Constant currency information compares results between periods as if exchange rates had remained constant period-over-period. Unless stated otherwise, in this presentation, we calculate constant currency results by calculating current-year results using prior-year currency exchange rates. We generally refer to such amounts as excluding or adjusting for the impact of foreign currency or being on a constant currency basis. These constant currency results should be considered in addition to, as opposed to as a substitute for, our actual currency results. Constant currency results, as we present them, may not be comparable to similarly titled measures used by other companies and are not measures of performance presented in accordance with GAAP.
Q3 2016 Investor Call 3
Safe HarborForward-Looking StatementsThis presentation contains forward-looking statements, which reflect industry outlook, our expectations regarding our future growth, results of operations, operational and financial performance, liquidity and capital resources, capital expenditures and investments, strategic transactions, business prospects and opportunities, challenges and future events. All statements other than statements of historical fact are forward-looking statements. Words such as, but not limited to, “anticipate,” “continue,” “estimate,” “expect,” “may,” “might,” “will,” “project,” “should,” “would,” “believe,” “intend,” “continue,” “could,” “plan,” “predict,” and negatives of these words and similar expressions are intended to identify forward-looking statements. In particular, statements about our expectations, beliefs, plans, objectives, assumptions or future events or performance contained in this presentation are forward-looking statements. Although the forward-looking statements contained in this presentation reflect management’s current beliefs based upon information currently available to management and upon assumptions which management believes to be reasonable, actual results or events may differ materially from those stated in or implied by these forward-looking statements.
A number of factors could cause actual results, performance, events or achievements to differ materially from the results expressed or implied in the forward-looking statements. Readers should not place undue reliance on the forward-looking statements. Forward-looking statements necessarily involve significant known and unknown risks, assumptions and uncertainties that may cause our actual results, performance, events and achievements in the future periods to differ materially from those expressed or implied by such forward-looking statements. There can be no assurance that the results performance, events or achievements contemplated in the forward-looking statements will be realized.
We cannot assure you that forward-looking statements will prove to be accurate, as actual actions, results and future events could differ materially from those anticipated or implied by such statements. All future written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. These forward-looking statements are made only as of the date of this presentation and, except as required by law, we undertake no obligation, and specifically decline any obligation, to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This presentation should be read together with our December 31, 2015 and September 30, 2016 consolidated financial statements and the notes thereto and our managements discussion and analysis of financial condition and results of operations covering our results presented in such financial statements and the risk factors described therein.
Q3 2016 Investor Call 4
Q3 2016 Overview
� Q3 Adjusted EBITDA of $111.3m at Constant Currency FX and $109.2m at Actual FX
� Adj. EBITDA at CC FX down ($2.1m) from Q3 2015
� Adj. EBITDA at Act FX down ($4.1m) from Q3 2015
� Europe performance continuing to improve
� U.S. Modular Space Leasing business maintaining growth trajectory
� Asia Pacific business stabilizing
� South Texas Family Residential Center lease and services agreement extended through
September 2021
Q3 2016 Investor Call 5
Clear Global LeadershipLeading global business services provider of modular space and secure portable storage solutions
� Market leader in all major markets within our operating
regions:
� Americas - #1 / #2
� Asia Pacific (Aus/NZ) - #1
� Europe - #1 / #2
� Branch / depot locations globally: 238
� Countries with physical presence: 25
� Modular and storage fleet units: ~275,000
� Fully managed remote accommodation ~10,700
rooms:
Q3 2016 Investor Call 6
Diverse Footprint and End Markets
� Broad geographic, end-market and
customer diversity
� The Commercial / Industrial sector
represents our strongest market,
while the contribution from the Oil &
Gas sector continues to decline
� Diverse customer base
- Approximately 64,000 customers
- Top 20 customers ~24% of
Leasing and Services revenue
� Long contract periods
- Average modular lease duration:
~26 months
Europe49%
Asia Pacific14%
Americas37%
21%
20%
10%13%
10%
17%
6% 3%
Commercial/Industrial Services/Other
Oil & Gas Manufacturing
Infrastructure/Residential Government
Education Mining
Q3 2016 Revenue Mix – Geographic Q3 2016 LTM Revenue Mix – Sector
10%
21%
3%
17%
6%
10%
13%
20%
Q3 2016 Investor Call 7
Strategic Priorities
� Manage capital aggressively
� Invest primarily in target markets demonstrating organic growth
� In markets that have weak economies, we are constraining capital investment
Revenue
� Optimize pricing (rental rates) globally and increase the amount and percentage of
revenue contribution from value added products and services (“VAPS”)
� Increase Modular Space Leasing revenue in target markets – U.S., France, U.K., and
Germany
Profitability
Capital Discipline
� Increase utilization globally
� Continue focus on managing costs and operating efficiencies
Q3 2016 Investor Call 8
Agenda
I) Q3 Highlights
II) Financial Results
III) Recent Events
IV) Questions & Answers
Q3 2016 Investor Call 9
Q3 2016 Highlights
� Continued managing capital aggressively
� Q3 Gross CapEx decreased ~$9m from prior year as the company continues to
manage its liquidity conservatively
� Overall Q3 revenue down ~2% driven by lower Remote Accommodations in the
Americas and Asia Pacific, partially offset by increased Modular Space growth in the
U.S. and Europe
� Modular Space pricing globally decreased ~2% from prior year driven by energy sector
related declines in Asia Pacific and Canada
� VAPS revenue grew ~19% to ~$50m and VAPS revenue per unit grew by ~19%
Capital Discipline
� Utilization increased 380bps from prior year to 77.7% driven by increases in Australia,
U.S., France, Germany, and the U.K.
� SG&A increased $1.1m as cost reductions in the Americas and Corporate were offset by
volume related increases in Europe
� Adjusted EBITDA declined $2.1m as increases in U.S. and Europe Modular Space
Leasing were offset by lower Remote Accommodation volume and higher SG&A
Revenue
Profitability
Q3 2016 Investor Call 10
Modular Space – Avg. Rental Rate
$217
$221
$228
$222 $222 $222
$218
$215 $213 $214 $213
$190
$200
$210
$220
$230
Q1 Q2 Q3 Q4
2014 2015 2016
Average Modular Monthly Rental Rate*
$47 $52
$57 $55 $53
$59 $63 $62 $64
$72 $75
$-
$10
$20
$30
$40
$50
$60
$70
$80
Q1 Q2 Q3 Q4
2014 2015 2016
Average Incremental VAPS Impact*
All quarters presented in US$ at Q3 2016 Reported FX Rates
* As of Q1 2016, we have reclassified a portion of Europe revenues originally included in ARR to VAPS. Historical figures have been adjusted to reflect these changes.
Q3 2016 Investor Call 11
73.4%
74.7% 74.8%
73.5%
72.1%72.9%
73.9%
75.0%75.1%
77.0%77.7%
68%
70%
72%
74%
76%
78%
Q1 Q2 Q3 Q4
2014 2015 2016
221.7
225.1 225.2
220.4
213.4 213.7 215.4
212.1
208.0
211.7 213.5
200
205
210
215
220
225
230
Q1 Q2 Q3 Q4
2014 2015 2016
Avg. Modular Fleet Utilization % Avg. Modular UoR (# of Units)
Modular Space – Utilization (Units in 000’s)
Q3 2016 Investor Call 12
Remote Accommodations
Average Daily Rate Average Rooms on Rent (1)
(1) (Rooms in 000’s)
5.2 4.9
5.2 5.5
5.3 5.7
6.5
5.8
4.9 4.7 4.7
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
Q1 Q2 Q3 Q4
2014 2015 2016
$93 $93
$98$97
$99
$108 $108
$100
$105
$107$106
$85
$90
$95
$100
$105
$110
Q1 Q2 Q3 Q4
2014 2015 2016
All quarters presented in US$ at Q3 2016 Reported FX Rates
Q3 2016 Investor Call 13
Q3 2016 Financials (in US$ at Constant Currency)
Q3
($ in millions) 2015 2016 Y-o-Y Y-o-Y %
- Modular Space Leasing $189.4 $193.9 $4.5 2.4%
- Modular Space Delivery & Install $69.3 $71.2 $2.0 2.8%
- Remote Accommodations $64.4 $48.1 ($16.4) (25.4%)
Leasing & Services Revenue $323.0 $313.2 ($9.8) (3.0%)
- New Units $87.1 $87.6 $0.5 0.6%
- Rental Units $8.5 $8.4 ($0.0) (0.2%)
Sales Revenue $95.5 $96.0 $0.5 0.5%
Total Revenue $418.6 $409.2 ($9.3) (2.2%)
Adjusted Gross Profit (1) $198.7 $197.7 ($1.0) (0.5%)
Adjusted Gross Profit % (1) 47.5% 48.3% 90bps
SG&A (2) $85.3 $86.4 ($1.1) (1.3%)
Adjusted EBITDA $113.3 $111.3 ($2.1) (1.8%)
Adjusted EBITDA % 27.1% 27.2% 10bps
(1) Excludes depreciation on rental equipment(2) Excludes sponsor fees and other non-recurring items
� Leasing & Services revenue was down
$9.8m due to decreased Remote
Accommodations in the U.S. and Asia-
Pacific, partially offset by higher Modular
Space in Europe and the U.S.
� New Units Sales increase of $0.5m driven
by higher volumes in Asia Pacific and
Europe, partially offset by declines in
Americas; Rental Units Sales flat
� Adjusted Gross Profit % increased 90bps
driven by improved margins in Europe
and Americas
� SG&A increased $1.1m driven by volume
related increases in Europe; partially
offset by savings in the Americas and
Corporate
� Adjusted EBITDA declined $2.1m driven
by decreased Remote Accommodations
volume in the U.S. and Asia-Pacific and
increased SG&A
Q3 2016 Investor Call 14
Americas Overview (at Constant Currency)
Q3 2015 Q3 2016
Average Modular Units on Rent (#) 60,759 54,369
Average Modular Utilization 68% 71%
Avg. Modular Monthly Rental Rate ($) at CC 342 350
Avg. Remote Accom Rooms on Rent (#) 4,751 3,502
Avg. Remote Accom Utilization 59% 47%
Avg. Remote Accom Daily Rate ($) at CC 117 114
U.S. and Mexico Stable, Canada negatively affected by oil & gas
Revenue � Decreased Modular Space revenue ($3.2m) driven
by declines in Canada and less revenue due to the sale of Brazil; lower Remote Accommodations revenue ($12.4m)
� Continued Modular Space growth in the U.S. primarily offset by lower UoR and pricing in Canada (oil & gas driven)
� Remote Accommodations Rooms on Rent (“RoR”) decrease driven by declines in oil and gas related camps; the South Texas Family Residential was at full run-rate as of Q3 2015
Adjusted EBITDA� Decreased $6.9m driven by reduced Remote
Accommodations volume in the U.S. and lower Modular Space volume in Canada; partially offset by SG&A cost reductions
CapEx� Reduced U.S. refurbishment and new fleet
investment off elevated levels in 2015; lower oil and gas related spend
(US$ in millions)
173.9 150.5
$0
$100
$200
Q3 2015 Q3 2016
Revenue
61.2 54.3
$0
$35
$70
Q3 2015 Q3 2016
Adjusted EBITDA
47.5
19.1
$0
$30
$60
Q3 2015 Q3 2016
CapEx
Q3 2016 Investor Call 15
U.S. - Modular Space Leasing Revenue(US$ in millions)
Y-o-Y ChangePer Quarter: +$3.1m +$1.6m +$2.7m +$3.7m
$53.4$55.6
$57.3$59.1$58.9
$61.0 $61.2$62.8$62.0 $62.6 $63.9
$0
$10
$20
$30
$40
$50
$60
$70
Q1 Q2 Q3 Q4
2014 2015 2016
Q3 2016 Investor Call 16
Europe Overview (at Constant Currency)
Q3 2015 Q3 2016
Average Modular Units on Rent (#) 143,425 146,863
Average Modular Utilization 78% 81%
Avg. Modular Monthly Rental Rate ($) at CC 163 164
(US$ in millions)Economic conditions stable
Revenue� Leasing & Services revenue increased
$4.6m driven by asylum seeker related UoRand rate growth in Germany, and higher VAPS volume across Europe
� Sales revenue increased $0.7m due to higher New Unit Sales volume in Germany
Adjusted EBITDA� Adjusted EBITDA up $7.0m driven by higher
Leasing & Services volume and margins, and increased New Unit Sales; partially offset by volume related SG&A increases
CapEx� Increased investment driven by asylum and
commercial related spend in Germany, and continued investment in France and the U.K.; reduced levels of spend in the remaining countries
25.1
43.3
$0
$25
$50
Q3 2015 Q3 2016
CapEx
194.6 199.9
$0
$110
$220
Q3 2015 Q3 2016
Revenue
49.7 56.7
$0
$35
$70
Q3 2015 Q3 2016
Adjusted EBITDA
Q3 2016 Investor Call 17
Europe Asylum Seeker Housing
� Public support and appropriations for open borders are
declining, and as a result, demand for asylum seeker
housing is declining as well.
� Future demand is expected to be mostly for infrastructure
� Current asylum seeker housing activity:
2016
YE 2015H1
Growth6-30
Q3Growth
9-30Expected
Q4
Units on Rent
~3,200 +1,300 ~4,500 +250 ~4,750 +150
Units Sold ~900 +1,400 ~2,300 +100 ~2,400 +800
Q3 2016 Investor Call 18
Asia Pacific Overview (at Constant Currency)
Q3 2015 Q3 2016
Average Modular Units on Rent (#) 11,194 12,280
Average Modular Utilization 62% 69%
Avg. Modular Monthly Rental Rate ($) at CC 357 278
Avg. Remote Accom Rooms on Rent (#) 1,738 1,175
Avg. Remote Accom Utilization 57% 39%
Avg. Remote Accom Daily Rate ($) at CC 79 80
Energy and natural resources sector remains slow, but diversification in other sectors helping to stabilize business
Revenue� Leasing & Services revenue increased $1.2m
driven by higher Modular Space Delivery and Installation Revenue ($6.2m); partially offset by lower Modular Space Leasing ($1.0) and Remote Accommodations ($4.0m)
� Sales revenue increased $6.9m driven by higher New Units Sales volume ($6.7m) in Australia, New Zealand, and China
Adjusted EBITDA � Declined ($4.0m) primarily driven by lower
Leasing & Services (decreased Remote Accommodations volume and Modular Space Leasing rental rates) and higher SG&A; partially offset by increased New Sales volume
CapEx� Continued reduced levels of CapEx in Asia
Pacific due to weak market conditions
50.6 59.0
$0
$40
$80
Q3 2015 Q3 2016
Revenue
9.5
5.5
$0
$10
$20
Q3 2015 Q3 2016
Adjusted EBITDA
1.63.6
$0
$5
$10
Q3 2015 Q3 2016
CapEx
(US$ in millions)
Q3 2016 Investor Call 19
Disciplined Capital Management – Q3
Capital Expenditure by Region
(8.5) (8.4)
25.1
43.3
47.519.1
1.6
3.6
1.0
0.0Corporate
Asia Pacific
Americas
Europe
Global proceedsfrom Used UnitSales
Net CapEx: $ 66.7m
Gross CapEx: $ 75.2m Net CapEx: $ 57.6m
Gross CapEx: $ 66.0m
� Gross CapEx down ~$9m or ~12%, driven by
the following;
� Reduced oil and gas related investment
� Lower U.S. refurbishment and new fleet investment off elevated levels in 2015
� Increased asylum and commercial related investment in Germany, and continued investment in France and the U.K.
� Capital investments are supported by long term
customer contracts
Gross CapEx:
Net
Net
Q3 2015 Q3 2016
(US$ in millions at Constant Currency)
Q3 2016 Investor Call 20
Net Debt Structure
Net LeverageRatio
Cash and Cash Equivalents $ (82)
Asset Based Loan Revolver (ABL) (L+250) 873
Other Debt, including Capital Leases 111
Senior Secured Notes (8.5/9.0%) 1,384
Total Net Senior Secured Debt 2,286 5.4x
Senior Unsecured Notes (10.75%) 745 1.7x
Total Net Debt $ 3,031 7.1x
LTM 9/30/16 Adjusted EBITDA $ 427
Adjusted EBITDA / Interest Expense 1.8x
• ABL availability as of September 30, 2016 was approximately $74m after consideration of the 90% covenant threshold, but would have been approximately $194m without consideration of the 90% covenant threshold
• Annual cash interest expense of approximately $240m
As of September 30, 2016(US$ in millions at Reported Currency)
Q3 2016 Investor Call 21
ABL Borrowing Base(US$ in millions at Reported Currency)
59% 62% 63%
59% 62% 63%
� ABL borrowing base contains certain
assets of the U.S., Canada, U.K.,
Australia, and New Zealand
� ABL advance rates are assessed semi-
annually; remain relatively stable in key
jurisdictions
� Decline from December 2015 to
September 2016 primarily driven by FX
� Continued investment in the U.S.
offsetting reduced investment in
Australia and Canada
65%66% 66% 68% 67%
$1,123 $1,112 $1,089 $1,091
$0
$200
$400
$600
$800
$1,000
$1,200
Dec 31 2015 Mar 31 2016 Jun 30 2016 Sep 30 2016
U.S. Non-U.S.
Q3 2016 Investor Call 22
South Texas Family Residential Center
� Algeco Scotsman previously announced that it has agreed to modify its Lease and Services Agreement with
Corrections Corporation of America (“CCA”) regarding the South Texas Family Residential Center (“STFRC”)
� Algeco Scotsman will continue to sublease and provide services at the STFRC to CCA in Dilley, Texas, as it has
since 2014. The modification provides for a lower monthly payment with a new term extending five more years
through September 2021
� The STFRC is a one-of-a-kind project developed and built specifically to fit customer needs. The facility is
comprised of 423,000 sq. ft. of housing space, 6 other structures and 2,400 beds. Also on site are classrooms, a
library, chapels, an infirmary with full medical, dental, pharmaceutical and x-ray capabilities, a dining hall, offices
and an industrial laundry center
Q3 2016 Investor Call 23
STFRC Extension – Financial Impact � The modified contract provides for a lower monthly payment with a new term extending five additional years
through September 2021
� We anticipate an impact to cash-flow as the contract was extended at a lower monthly rate; as a result, the impact
to operating cash-flow as compared to 2016 will be a reduction of ~$20m
� As of Nov 1, 2016, we expect the Deferred Revenue associated with STFRC to be ~$60 million:
� Under the original contract, the remaining ~$60m was to be amortized over 2yrs (~$30m/yr)
� Given the new contract is now 5 years, the ~$60m will be amortized over 5yrs (~$12m/yr)
� The result is ~$18m non-cash reduction to 2017 EBITDA as compared to expected FY 2016 reported results
� In summary, ~$20m cash impact and the ~$18m non-cash impact combined are expected to reduce 2017 EBITDA
by approximately ~$38m
Q3 2016 Investor Call 24
Other Recent Events
� The Company continues to manage its working capital aggressively along with finding new sources of liquidity to
capitalize on current growth opportunities
� Europe Sale & Leaseback Agreements
� AS entered into sale and leaseback agreements with affiliates of our majority shareholder, TDR Capital
� €50m facility funded through TDR equity and an independent bank loan
� As of Sept 30th, ~€30m of the €50m facility is being utilized with ~€20m still available
� European Receivables Financing
� Closed November 2016 and replaced our previous receivables financing
� $20 million Capital Raise
� AS entered into a senior unsecured loan agreement with an affiliate of our majority shareholder, TDR Capital
� The Agreement provides for borrowings in an aggregate amount of up to $20m; all of which was drawn on October 11, 2016
� This loan was refinanced on November 16, 2016 with the issuance of $20m of SSNs to the TDR Capital affiliate; as a result, there were $1,095m and €275m of SSNs outstanding
Q3 2016 Investor Call 25
Questions & Answers
Appendix
Q3 2016 Investor Call 26
Q3 2016 Investor Call 27
Foreign Exchange Exposure
Local to US$ Q3 2015 Q3 2016 % Chg
GBP 1.55 1.31 (15%)
CAD 0.76 0.77 0%
EUR 1.11 1.12 0%
AUD 0.73 0.76 4%
US$ millions EBITDA
Gross
Capex Net
GBP (2.3) 1.7 (0.6)
CAD (0.0) (0.0) (0.0)
EUR 0.1 (0.1) (0.0)
AUD 0.2 (0.1) 0.1
Other (0.1) 0.2 0.1
Total (2.1)$ 1.7$ (0.4)$
Avg. Reported FX Rates
Q3 FX Impact by Currency
Q3 2016 Investor Call 28
Q3 Financials (in US$ at Reported Currency FX)
Q3
($ in millions) 2015 2016 Y-o-Y Y-o-Y %
- Modular Space Leasing $189.4 $188.9 ($0.5) (0.3%)
- Modular Space Delivery & Install $69.3 $69.8 $0.5 0.8%
- Remote Accommodations $64.4 $48.4 ($16.0) (24.8%)
Leasing & Services Revenue $323.0 $307.1 ($16.0) (4.9%)
- New Units $87.1 $85.5 ($1.5) (1.8%)
- Rental Units $8.5 $8.2 ($0.2) (2.7%)
Sales Revenue $95.5 $93.8 ($1.8) (1.8%)
Total Revenue $418.6 $400.9 ($17.7) (4.2%)
Adjusted Gross Profit (1) $198.7 $193.7 ($5.0) (2.5%)
Adjusted Gross Profit % (1) 47.5% 48.3% 90bps
SG&A (2) $85.3 $84.5 $0.8 1.0%
Adjusted EBITDA $113.3 $109.2 ($4.1) (3.6%)
Adjusted EBITDA % 27.1% 27.2% 10bps
(1) Excludes depreciation on rental equipment(2) Excludes sponsor fees and other non-recurring items
Q3 2016 Investor Call 29
Quarterly Highlights (in US$ at Reported Currency FX)
($ in millions)
Revenue 1Q15 2Q15 3Q15 4Q15 FY 2015 1Q16 2Q16 3Q16
Europe 158.5 172.9 194.6 181.6 707.6 158.9 195.6 189.2
Americas 150.3 163.6 173.9 152.8 640.7 143.6 151.6 150.0
Asia Pacific 57.4 52.2 50.6 44.4 204.6 42.2 51.2 61.7
AS Total 364.8$ 386.1$ 418.6$ 378.8$ 1,548.3$ 344.3$ 398.3$ 400.9$
Adj. EBITDA 1Q15 2Q15 3Q15 4Q15 FY 2015 1Q16 2Q16 3Q16
Europe 37.3 43.0 49.7 46.4 176.4 37.2 55.9 54.5
Americas 44.9 54.3 61.2 63.9 224.2 53.1 62.8 54.2
Asia Pacific 11.3 10.2 9.5 7.3 38.3 5.0 5.5 5.7
Corporate Exp (8.1) (6.3) (7.0) (7.4) (28.8) (6.4) (5.8) (5.2)
AS Total 85.4$ 101.2$ 113.3$ 110.0$ 410.0$ 88.9$ 118.4$ 109.2$
CAPEX 1Q15 2Q15 3Q15 4Q15 FY 2015 1Q16 2Q16 3Q16
Europe 12.8 20.8 25.1 27.0 85.8 15.2 20.9 41.7
Americas 53.7 47.0 47.5 34.2 182.4 13.2 16.9 19.0
Asia Pacific 2.1 2.6 1.6 1.9 8.2 2.5 2.8 3.6
Corporate Exp 0.1 0.7 1.0 0.4 2.1 0.1 0.0 0.0
AS Total 68.7$ 71.1$ 75.2$ 63.5$ 278.6$ 30.9$ 40.7$ 64.3$
Q3 2016 Investor Call 30
Modular Space – Avg. Rental Rate*All quarters presented in US$ at Reported FX Rates
* As of Q1 2016, we have reclassified a portion of Europe revenues originally included in ARR to VAPS, and the
resulting impact lowers ARR and increases VAPS; as a result, we have retroactively adjusted the historical
figures to reflect these changes as well – only the Europe and AS Total calculations are effected
1Q14 2Q14 3Q14 4Q14 FY 2014 1Q15 2Q15 3Q15 4Q15 FY 2015 1Q16 2Q16 3Q16
Europe 185 192 196 176 188 159 162 163 157 160 155 161 156
Americas 358 369 368 360 364 361 358 342 348 353 348 352 349
Asia Pacific 450 479 505 447 471 402 392 357 313 367 293 301 294
AS Total $252 $260 $264 $245 $256 $230 $230 $223 $217 $226 $214 $218 $213
Q3 2016 Investor Call 31
Q3 Fleet Statistics (in US$ at Reported Currency FX)
Region 3Q15 3Q16 3Q15 3Q16
Europe 163$ 156$ N/A N/A
Americas 342$ 349$ 117$ 114$
Asia Pacific 357$ 294$ 79$ 84$
AS Total 223$ 213$ 107$ 106$
Modular Avg Monthly
Rental Rate
Remote Accom Avg
Daily Rental Rate
Q3 2016 Investor Call 32
Reconciliation of Adjusted EBITDA(US$ in millions at Reported Currency FX)
Q3 2015 Q3 2016 FY 2015 LTM Q3 2016
Net income (loss) before taxes (169.0)$ 2.6$ (412.8)$ (196.6)$
Interest expense, net 50.1 50.7 197.8 200.4
Depreciation and amortization 69.4 60.7 263.4 236.3
EBITDA (49.5) 114.0 48.4 240.2
Currency (gains) losses, net 63.1 (2.9) 140.5 43.1
Change in fair value of contingent considerations (12.4) (4.6) (50.5) (15.9)
Loss on disposal of business 19.0 0.9 33.3 15.2
Goodwill and other impairment charges 90.2 - 211.4 121.2
Restructuring costs 2.5 0.5 11.4 5.7
Sponsor management fees 1.2 1.9 9.7 7.5
Other expense (0.7) (0.5) 5.7 9.4
Adjusted EBITDA 113.3$ 109.2$ 410.0$ 426.6$
Algeco Scotsman Adjusted EBITDA
Q3 2016 Investor Call 33
Reconciliation of Adjusted Gross Profit(US$ in millions at Reported Currency FX)
Q3 2015 Q3 2016
Gross Profit 141.9$ 140.2$
Depreciation of Rental Equipment 56.8 53.5
Adjusted Gross Profit 198.7$ 193.7$
Algeco Scotsman Adjusted Gross Profit
DRAFT 5
Algeco Scotsman901 S. Bond Street, Suite 600, Baltimore MD 21231
www.algecoscotsman.com