Release Date: April 25, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you clarify the organic growth in modular versus the Vesta distribution since we were dealing with a partial quarter?
A: Keith Pratt, Executive Vice President, Chief Financial Officer: On the rental revenue side, approximately 12% was organic growth.
Q: With regard to pricing, particularly the units shipped over the last 12 months, can you explain the significant growth figures?
A: Keith Pratt: The main difference is the inclusion of Vesta data from November. The increase in revenue per unit reflects higher costs and the addition of more services, enhancing revenue per unit.
Q: What are you seeing in the demand environment for mobile modular and portable storage since mid-February?
A: Joseph Hanna, President, Chief Executive Officer: The rental backlog is strong, supported by good orders in education. The commercial construction market is more muted, but steady.
Q: Regarding the pulled forward CapEx, is it predominantly for education, or are there other areas as well?
A: Keith Pratt: The pull forward of CapEx is driven by the education market, which requires early year investment to meet demand. It's mostly focused on education.
Q: Can you provide more details on the real estate sale mentioned in the earnings report?
A: Keith Pratt: The property sold was previously used by Adler Tank Rentals. The capital from the sale will be redeployed into the modular side of the business.
Q: Could you discuss the strength in the education sector and the factors contributing to its performance?
A: Joseph Hanna: The main driver is the availability of local and state bond measures funding education projects. Our strong positioning and execution in this sector have allowed us to capitalize on these opportunities.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
