Daily Archives: March 2, 2020

Dynavax Announces Collaboration with the University of Queensland and the Coalition for Epidemic Preparedness (CEPI) Focused on the Development of a Coronavirus (COVID-19) Vaccine

Dynavax is providing CpG 1018, the adjuvant contained in HEPLISAV-B, to support the rapid development of a COVID-19 vaccine

EMERYVILLE, Calif., March 02, 2020 (GLOBE NEWSWIRE) — Dynavax Technologies Corporation (NASDAQ: DVAX), a biopharmaceutical company focused on developing and commercializing novel vaccines, today announced it is collaborating with the University of Queensland (UQ) as part of a Coalition for Epidemic Preparedness (CEPI) initiative to develop a vaccine to prevent COVID-19.  Dynavax is providing technical expertise and the Company’s proprietary toll-like receptor 9 (TLR9) agonist adjuvant, CpG 1018, to support this initiative.

CpG 1018 is the adjuvant used in HEPLISAV-B® [Hepatitis B Vaccine (Recombinant), Adjuvanted], an adult hepatitis B vaccine approved by the U.S. Food and Drug Administration (FDA). Dynavax developed CpG 1018 to provide an increased vaccine immune response, which has been demonstrated in HEPLISAV-B. CpG 1018 provides a well‑developed technology and a significant safety database, potentially accelerating the development of a COVID-19 vaccine.

CEPI, in conjunction with the World Health Organization, is leading multiple programs/partnerships that seek to improve the scientific understanding of the novel coronavirus, and to develop vaccines against it. UQ and CEPI established a partnership in January 2019 focused on developing a “molecular clamp” vaccine platform, a technology that enables targeted and rapid vaccine production against multiple viral pathogens.  Building on this existing partnership, CEPI requested UQ use its recently developed rapid response technology, which allows for the rapid generation of new vaccines from the knowledge of a virus’s genetic sequence information, to develop a new vaccine against COVID-19.

“The comprehensive humanitarian response to address the risk of COVID-19 by the vaccine development community is a testament to the dedication our industry has to global public health,” commented Ryan Spencer, Chief Executive Officer of Dynavax. “We are proud to contribute to this global effort to develop a vaccine to prevent COVID-19 in collaboration with the exceptional team of researchers at the University of Queensland.”

About Dynavax
Dynavax is a commercial stage biopharmaceutical company developing and commercializing novel vaccines. The Company launched its first commercial product, HEPLISAV-B® [Hepatitis B Vaccine (Recombinant), Adjuvanted], in February 2018, following U.S. FDA approval for prevention of infection caused by all known subtypes of hepatitis B virus in adults age 18 years and older.  For more information, visit www.dynavax.com and follow the company on LinkedIn.

About University of Queensland
The University of Queensland is one of Australia’s leading research and teaching institutions, a global top 50 university, ranked first in Australia and ninth in the world for biotechnology.  www.uq.edu.au.

About Coalition for Epidemic Preparedness Innovations (CEPI)
CEPI is an innovative partnership between public, private, philanthropic, and civil organisations, launched at Davos in 2017, to develop vaccines to stop future epidemics. CEPI has reached over US$750 million of its $1 billion funding target. CEPI’s priority diseases include Ebola virus, Lassa virus, Middle East Respiratory Syndrome coronavirus, Nipah virus, Rift Valley Fever and Chikungunya virus. CEPI also invests in platform technologies that can be used for rapid vaccine and immunoprophylactic development against unknown pathogens (ie, Disease X). To date, CEPI has committed to investing over $475 million in vaccine and platform development.  Learn more at cepi.net. Follow us at @CEPIvaccines.

Forward-Looking Statements
This press release contains “forward-looking” statements, including statements regarding the potential to develop a COVID-19 vaccine and to do so on an accelerated basis.  Actual results may differ materially from those set forth in this press release due to the risks and uncertainties inherent in vaccine research and development, including the timing of completing development, the results of clinical trials, and whether and when the vaccine will be approved for use, as well as other risks detailed in the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2018, as well as discussions of potential risks, uncertainties and other important factors in our other filings with the U.S. Securities and Exchange Commission. We undertake no obligation to revise or update information herein to reflect events or circumstances in the future, even if new information becomes available. Information on Dynavax’s website at www.dynavax.com is not incorporated by reference in our current periodic reports with the SEC.

Contacts:
Nicole Arndt, Senior Manager, Investor Relations
narndt@dynavax.com
510-665-7264

Derek Cole, President
Investor Relations Advisory Solutions
derek.cole@IRadvisory.com

Ascom Myco 3 smartphone gets certification from MEDITECH for the Expanse Point of Care EHR Solution

Ascom announced that EHR provider MEDITECH has certified the Ascom Myco 3 smartphone with its Expanse Point of Care solution. Nurses, therapists, aides, and other clinicians can now complete most tasks on their handheld Ascom Myco 3 device – including receive alerts, document vitals and interventions, review records, and verify and administer medications using the smartphone’s built-in barcode scanner. Patients can also benefit from more quality caregiving time with their clinicians.

MEDITECH joins an increasing roster of prominent EHR companies to certify the healthcare device on its platform to meet the communication needs of medical organizations today and tomorrow.

Pamela Crandall, Senior Marketing Solution Manager at MEDITECH, says: “The Ascom Myco 3 device gives our customers another powerful option for accessing our Expanse Point of Care and wireless phlebotomy solutions through Dryrain’s Enterprise browser. Nurses appreciate the mobility of using smartphone devices and the additional facetime it gives them with patients.”

Phlebotomists can also use the Ascom Myco 3 to access MEDITECH’s phlebotomy handheld solution to access a real-time list of specimens awaiting collection and print labels at the patient’s bedside. In addition, phlebotomists can use the barcode scanner to verify patient identification prior to specimen draw.

Francis Schmeer, Chief Sales Officer of Ascom, underlines: “We are delighted to partner with MEDITECH, a leading vendor and founder of the EHR market. The Ascom Myco 3, sold globally and in trials in many leading hospitals, is showing great results across the care continuum. Our aim with this smartphone designed for healthcare professionals is to provide mobility with confidence and improve clinician workflows at the point of care.”

For more information on the Ascom Myco 3 smartphone visit the website here.

Philips sleep survey shows only half of people worldwide are satisfied with their sleep, but are less likely than before to take action to improve it

March 2, 2020

  • Global survey reveals 36% have slept separately from their bed partner in an attempt to improve sleep
  • 74% admit to using cell phones in bed
  • 60% agree they are interested in new information or strategies to help them get better sleep

Amsterdam, the Netherlands – Royal Philips (NYSE: PHG, AEX: PHIA), a global leader in health technology, today announced the findings from its 5th annual sleep survey in a report, “Wake Up Call: Global Sleep Satisfaction Trends.” Philips surveyed more than 13,000 adults in 13 countries to capture attitudes, perceptions, and behaviors around sleep. This year’s results show global sleep satisfaction remains low with worry/stress, relationships and cell phone use reported as key sleep inhibitors.

Worry and stress continue to affect a good night’s sleep
Only 49% of people are satisfied [1] with their sleep, with worry/stress reported as the most limiting factor to a good night’s sleep (33%). Interestingly, fewer people in 2020 are taking action to improve sleep compared to 2019, with nearly all listed strategies to improve sleep lower or consistent in 2020 when compared to 2019 results. For example, reading before bed was the most popular strategy used to improve sleep in 2019 (39%), but only 28% of people report reading to improve sleep in 2020. Other notable distinctions in sleep-related behavior appeared across age and gender differences.

“The decrease in people taking action to improve sleep is alarming, especially when it is clear people around the world deeply value sleep. Sleep deficit impacts people both mentally and physically, so we need to educate people on available sleep resources and empower them with the confidence that their efforts will pay off,” said Mark Aloia, PhD, Global Lead for Behavior Change, Sleep & Respiratory Care at Philips. “As we head into the next decade, Philips is focused on designing a future where technology leveraged across the entire sleep ecosystem can help people get the most out of their lives.”

Sleep issues coming between bedpartners
Factors putting quality sleep at risk stem from both social and technology distractions. When it comes to relationships, 36% of people with a partner/spouse agree [1] they sometimes sleep separately from their partner/spouse to improve their sleep, and 30% agree [1] their or their partner/spouse’s difficulty sleeping is impacting their relationship. Despite experts’ recommendations to the contrary, almost 4-in-ten report using their phones right before falling asleep (39%) or as soon as they wake up (39%).

While external factors can be altered to improve sleep, some sleep conditions are outside of a person’s control. This year, respondents report lower rates of insomnia, snoring, shift work disorder and chronic pain, but sleep apnea remains consistent (2019: 10% vs. 2020: 9%). Of those reporting to have sleep apnea, 51% said their sleep apnea is impacting their relationship(s). Yet, 48% of people with sleep apnea said they felt getting good sleep was out of their control – even though a variety of solutions exist to treat it.

The desire for help is there, as 60% of people agree [1] they are interested in new information or strategies to help them get better sleep. Watching TV remains the most common strategy people use to improve their sleep (2019: 37% vs. 2020: 33%), and new data this year shows 15% have tried or currently use either marijuana or CBD oil to better their sleep. For more insight from this year or past years’ surveys, please visit Philips.com/WorldSleepDay.

Using 35 years of deep clinical expertise in sleep technology, Philips’ growing portfolio of sleep solutions seek to address 80% of the most common sleep issues [2]. To learn more about the Global Sleep Survey and Philips’ commitment to improving access to sleep technology worldwide, visit Philips.com/WorldSleepDay. To join the conversation about sleep health and Philips’ growing suite of consumer and scripted sleep solutions, follow @Philips@PhilipsSleepWellness or @PhilipsResp.

[1] indicates net “somewhat” or “complete” agreement with the statement
[2] Snoring, Short Sleep, Insomnia, and Obstructive Sleep Apnea

For further information, please contact:

Kathy O’Reilly
Philips Global Press Office
Tel.: +1 978-221-8919
E-mail: kathy.oreilly@philips.com
Twitter: kathyoreilly

Meredith Amoroso
Philips Sleep and Respiratory Care
Mobile: +1 724-584-8991
E-mail: meredith.amoroso@philips.com

About Royal Philips
Royal Philips (NYSE: PHG, AEX: PHIA) is a leading health technology company focused on improving people’s health and enabling better outcomes across the health continuum from healthy living and prevention, to diagnosis, treatment and home care. Philips leverages advanced technology and deep clinical and consumer insights to deliver integrated solutions. Headquartered in the Netherlands, the company is a leader in diagnostic imaging, image-guided therapy, patient monitoring and health informatics, as well as in consumer health and home care. Philips generated 2019 sales of EUR 19.5 billion and employs approximately 80,000 employees with sales and services in more than 100 countries. News about Philips can be found at https://www.philips.com/newscenter.

About the Survey
This survey was conducted online by KJT Group, Inc. on behalf of Philips from November 12 – December 5, 2019 among 13,004 adults ages 18 and older in 13 countries (Australia: n=1,000; Brazil: n=1,000; China: n=1,001; France: n=1,000; Germany: n=1,000; India: n=1,000; Italy: n=1,000; Japan: n=1,001; Netherlands: n=1,001; Singapore: n=1,000; South Korea: n=1,000; United Kingdom: n=1,000; and the U.S.: n=1,001). The survey was web-based and self-administered in the primary language(s) of each country. These were non-probability samples and thus a margin of error cannot be accurately estimated. For complete survey methodology, including weighting variables, please contact Meredith Amoroso at meredith.amoroso@philips.com.

Attachments

The International Coalition of National Security Advisors’ (ICNSA) launches series of workshops worldwide and creates a Legal Defense Fund to fight slander

Seneviratne Den Haag ICNSA Interview
Seneviratne Den Haag ICNSA Interview
ICNSA National Security, Sovereignty and Preservation of Heritage Conference Panel
ICNSA National Security, Sovereignty and Preservation of Heritage Conference Panel.Prof. Dr. David Pinto, Jean Labrique, Harm Groenendojk, Toine Manders, and Saman Seneviratne, the Keynote Speaker. Peter van der Velden of the Netherland’s Popular Party was the host. Daniël Gerritsen, Chairman, Committee on Activism of ICNSA and an inspiring politician moderated the event.
ICNSA February 2020 Den Haag Conference
Peter van der Velden of the Netherland’s Popular Party was the host

DEN HAAG, The Netherlands, March 02, 2020 (GLOBE NEWSWIRE) — The International Coalition of National Security Advisors’ (ICNSA) inaugural 3 day conference kicked off on February 20, 2020 at the Wandelganger Nieuwspoort, newsroom for the Parliament and where the Prime Minister of the Netherlands does his weekly address. Session was on National Security, Sovereignty, and Preservation of Heritage with speakers Prof. Dr. David Pinto, Jean Labrique, Harm Groenendojk, Toine Manders, and Saman Seneviratne, the Keynote Speaker. Peter van der Velden of the Netherland’s Popular Party was the host. Daniël Gerritsen, Chairman, Committee on Activism of ICNSA and an inspiring politician moderated the event. See event program.

Second session held in Hoofddorp, was dedicated to maritime security joined by Oliver Vehmeier, President of Royal Marina Yacht Group (RMYG). RMYG provides a total experience from the vessel to entertainment to personal security said Vehmeier who was a guest contributor on the session on Compliance with International Maritime laws, Coast Guard, navigating international waters, privacy, pirates and maritime threats to national security.

Third session in Rotterdam led by the Endowment for the Preservation of Judeo Christian Values (EPJCV), represented by Seneviratne, promotes preservation through policy changes and changes to laws protecting the unborn through to end-of-life treatments. EPJCV promoting Judeo Christian events; “From Holocaust to Resurrection of Israel,” led by Chabad Flevland and Emanuël Kerk in collaboration with Christian churches said Gerritsen.

Following the sessions in the Netherlands, a special session was held in Los Angeles, United States where Cybersecurity Expert Kenneth Davis was the subject matter expert who is involved at civilian, military and government levels was the key analyst. Davis used Gerritsen’s son being removed by Youth Protection Rotterdam as case study one. Davis, also a former Deputy Sherriff has several years of working knowledge where there’s current litigation: “Saman Seneviratne’s Integrity was attacked through anonymous internet postings and slander to destroy his business and personal reputation,” said Davis citing litigation.

Melvin Avanzado, Attorney and Social Justice Advocate. Attorney Avanzado has been selected to proctor the Legal Defense Fund for ICNSA.

The ICNSA is a collaborative coalition of National Security Advisors, politicians, researchers, and policy advisors who research, educate, analyze and disseminate vital information that effects national sovereignty, constitutions, and national heritage. Next ICNSA event is scheduled for April of 2020. Please contact InvitationRequest@ICNSA.org.

Media Relations
Social Phenomenon Thinktank
www.sptfellows.com
4243175595

Photo accompanying this announcement is available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/23bee822-5d35-4be3-9993-d6c2a8a74ed1https://www.globenewswire.com/NewsRoom/AttachmentNg/726fbd4d-600f-4d3d-a488-3b69737c3ddbhttps://www.globenewswire.com/NewsRoom/AttachmentNg/3ea97b9e-e442-4402-b893-0d6680f31682

WILLSCOT CORPORATION ANNOUNCES FOURTH QUARTER AND FULL YEAR 2019 RESULTS AND PROVIDES 2020 OUTLOOK

Transformational 2019 Highlighted By Fourth Quarter 2019 Consolidated Net Income of $8.9 million, Adjusted EBITDA1 of $98.2 million, and Free Cash Flow1 of $43.7 Million

Announces Combination with Mobile Mini, Creating the North American Leader in Modular Space and Portable Storage Solutions

BALTIMORE, March 02, 2020 (GLOBE NEWSWIRE) — WillScot Corporation (“WillScot” or the “Company”) (Nasdaq: WSC) today announced its fourth quarter and full year 2019 financial results and provided its 2020 outlook.

Fourth Quarter 2019 Financial Highlights1,2

  • Revenues of $278.0 million, representing an 8.0% (or $20.6 million) year over year increase, driven by growth in core leasing and services revenues of $17.5 million, or 7.7%.
    • Modular space average monthly rental rate increased to $641, a 14.1% increase year over year.
  • Adjusted EBITDA of $98.2 million represents a 33.6% (or $24.7 million) year over year increase.
    • Adjusted EBITDA margin of 35.3% increased 670 basis points (“bps”) year over year.
    • Approximately 80% of the expected $70.0 million annualized cost synergies related to the ModSpace and Acton acquisitions were in our fourth quarter 2019 results on a run rate basis.
  • Consolidated net income of $8.9 million (including $7.9 million of discrete costs from acquisition and integration-related activities) increased by $19.3 million, and Free Cash Flow of $43.7 million increased by $63.8 million, year over year, consistent with our planned transition to net profitability and cash generation.

2019 Full Year Financial Highlights1,2

  • Revenues of $1,063.7 million, representing a 41.6% (or $312.3 million) year over year increase, driven by growth in core leasing and services revenues of $291.5 million, or 43.3%.
    • Consolidated modular space average monthly rental rate increased to $614 representing an 11.2% increase year over year. Pro forma modular space average monthly rental rates increased 13.7% year over year, driven primarily by a 14.9% year over year increase in our core Modular – US segment, marking the 9th consecutive quarter of double-digit rate growth in the segment. Growth of 14.9% was driven approximately 60.0% from unit rate growth, with the remaining 40.0% driven by growth in value added products and services (“VAPS”).
    • Modular leasing revenue increased 7.7% on a pro forma basis, reflecting continued strong organic growth.
  • Adjusted EBITDA of $356.5 million, including $4.4 million of costs reclassified as operating leases upon adoption of ASC 842(5), represents a 65.4% (or $141.0 million) year over year increase.
    • Adjusted EBITDA margin increased 480 bps year over year and 680 bps on a pro forma basis to 33.5%.
  • Consolidated net loss of $11.5 million (including $46.0 million of discrete costs from acquisition and integration-related activities) decreased by $42.1 million, and Free Cash Flow of $20.0 million increased by $116.9 million year over year, consistent with our planned transition to net profitability and cash generation.

Announced Combination with Mobile Mini
Today, in a separate press release, WillScot announced that it has entered into a definitive merger agreement with Mobile Mini. The combination will create an industry-leading specialty leasing platform with unrivaled scale and product breadth, a broad and strategic footprint, and substantial free cash flow and liquidity with which to pursue multiple organic and inorganic growth opportunities. The combined company will operate a fleet consisting of over 360 thousand units with predictable recurring revenue supported by average useful asset lives of over 20 years and average lease durations greater than 30 months. The approximately $6.6 billion enterprise value combination will take form in an all-stock merger in which Mobile Mini shareholders will receive 2.4050 WillScot shares for every one share of Mobile Mini owned. The combination is expected to close in the third quarter of 2020.

 Three Months Ended
December 31,
 Year Ended
December 31,
(in thousands)2019 2018 2019 2018
Revenue$278,045  $257,404  $1,063,665  $751,412 
Consolidated net income (loss)$8,928  $(10,387) $(11,543) $(53,572)
Net cash provided by operating activities$73,490  $21,569  $172,566  $37,149 
Free Cash Flow1$43,682  $(20,165) $19,984  $(96,907)
 Three Months Ended
December 31,
 Year Ended
December 31,
Adjusted EBITDA1 by Segment (in thousands)2019 2018 2019 2018
Modular – US$88,800  $67,240  $325,068  $196,410 
Modular – Other North America9,417  6,267  31,480  19,123 
Consolidated Adjusted EBITDA$98,217  $73,507  $356,548  $215,533 
                

Management Commentary1,2,3

Brad Soultz, President and Chief Executive Officer of WillScot, commented, “WillScot delivered another quarter of substantial Adjusted EBITDA growth completing a truly transformational year for WillScot. Revenue and Adjusted EBITDA for the fourth quarter were up 8.0% and 33.6% organically over the prior year, and our Adjusted EBITDA margin of 35.3% increased 670 bps versus the fourth quarter of 2018. We’ve achieved this through our increased scale, solid synergy realization, and our rate and VAPS growth. We remain committed to de-leveraging organically, and our free cash flow generation of $43.7 million in the fourth quarter heading into 2020 gives us confidence that we will de-lever well below 4x during the course of 2020 based on our guidance.”

Tim Boswell, Chief Financial Officer commented, “In Q4 we delivered solid year over year modular leasing revenue growth of $14.5 million or 8.1% organically, which is the best indicator of our trajectory heading into 2020. Modular space average rental rates in our Modular – US segment increased 15.1% year over year, due to the continued churn of our acquired portfolios and increased VAPS penetration and pricing on rental contracts. Organic lease revenue growth and cost synergy realization drove 670 bps of year over year Adjusted EBITDA margin expansion with approximately 80.0% of Acton and ModSpace synergies realized in Q4. All of this drove positive net income in the fourth quarter of $8.9 million and free cash flow of $43.7 million realizing our planned transition to net profitability and cash generation. We deployed the free cash flow to reduce debt and completed our transition to Large Accelerated Filer status, accomplishing all of the fundamental objectives we set for the year. Together these achievements represent a strong foundation from which to embark on WillScot’s next chapter of transformation.”

“Finally, today we announced a strategic combination with Mobile Mini, the world’s leading provider of portable storage solutions serving customers in the U.S., U.K., and Canada. We are very excited to join together our two leading companies with complementary capabilities and cultures, best-in-class teams, and proven track records of driving profitable growth and shareholder value creation,” Brad Soultz, continued.

Fourth Quarter 2019 Results1,2

Total revenues increased 8.0% to $278.0 million, as compared to $257.4 million in the prior year quarter driven by a 7.7% increase in leasing and services revenue due to improved pricing and growth of VAPS.

  • Modular – US segment revenue increased 7.8% to $251.3 million, as compared to $233.1 million in the prior year quarter, with core leasing and services revenues up $16.6 million, or 8.0%, year over year.
    • Modular space average monthly rental rate of $648 increased 15.1% year over year including the dilutive impacts of acquisitions. Improved pricing was driven by a combination of our price optimization tools and processes, as well as by continued growth in our “Ready to Work” solutions and increased VAPS penetration across our customer base.
    • Average modular space units on rent decreased 5,309, or 6.1%, year over year
  • Modular – Other North America segment revenue increased 9.9% to $26.7 million compared to $24.3 million in the prior year quarter.
    • Modular space average monthly rental rates were up 5.7% compared to the prior year quarter. Modular space units on rent decreased 2.5% to 8,953, and utilization for our modular space units decreased to 55.9%, down 70 bps from 56.6%.

Adjusted EBITDA of $98.2 million was up 33.6% compared to $73.5 million in the prior year quarter, and Adjusted EBITDA margins improved 670 bps year over year to 35.3%.

  • Modular – US segment Adjusted EBITDA increased 32.1% to $88.8 million, and Modular – Other North America segment Adjusted EBITDA increased $3.1 million to $9.4 million from the prior year quarter.
  • Adjusted EBITDA margins improved by 670 bps year over year driven by a 70 bps improvement in leasing and services gross profit margin, as well as a 600 bps reduction in selling, general and administrative expenses. We estimate that incremental cost synergies of approximately $11.2 million related to the Acton and ModSpace acquisitions were realized in the fourth quarter bringing total estimated synergies realized from the dates of the acquisitions to approximately $42.4 million. Approximately 80.0% of the annualized forecasted cost synergies of over $70 million were in our run rate as of December 31, 2019.

Net income of $8.9 million for the three months ended December 31, 2019 includes $7.9 million of discrete costs expensed in the period related to our integration and acquisition-related activities, including $2.7 million of integration costs, $2.7 million of restructuring costs, lease impairment expense and other related charges, $0.2 million of other impairments and $2.3 million of other expense. Net income of $8.9 million was up $19.3 million from a consolidated net loss of $10.4 million for the same period in 2018, which included $5.3 million of transaction costs, $8.3 million of restructuring costs, and $15.1 million of integration costs related to the Acton and ModSpace acquisitions.

Full Year 2019 Results1,2

Total revenues increased 41.6% to $1,063.7 million, as compared to $751.4 million in the prior year driven by a 43.3% increase in leasing and services revenue due to increased volumes from acquisitions, improved pricing, and growth of VAPS. Pro forma revenues decreased $0.4 million, or 0.0%, driven by reduced sales revenues, which declined $46.9 million, or 32.1%, driven primarily by one large new sale recognized in 2018 in the amount of $29.0 million in our Modular – US segment. The impact of the decline in non-recurring sales versus the prior year was nearly offset by continued strong organic growth in our core modular leasing revenues, which increased $53.4 million on a pro forma basis, or 7.7%, driven primarily by a 13.7% increase in pro forma average modular space monthly rental rates. The adoption of ASC 842 included a reclassification of amounts previously accounted for as bad debt expense from selling, general and administrative expenses, resulting in a $10.0 million reduction to revenue for the year and no change to net income, upon adoption in Q4 retroactive to January 1, 2019.

  • Modular – US segment revenue increased 41.9% to $961.7 million, as compared to $677.6 million in the prior year, with core leasing and services revenues up $271.4 million, or 44.7%, year over year.
    • Modular space average monthly rental rate of $617 increased 12.0% year over year including the dilutive impacts of acquisitions. Pro forma modular space monthly rental rates increased 14.9% year over year. Improved pricing was driven by a combination of our price optimization tools and processes, as well as by continued growth in our “Ready to Work” solutions and increased VAPS penetration across our customer base.
    • Average modular space units on rent increased 19,373, or a 30.6% year over year increase, due to an additional 8.5 months of contribution from the ModSpace acquisition. Pro forma units on rent decreased 4.5% year over year, and pro forma utilization increased by 40 bps year over year.
  • Modular – Other North America segment revenue increased 38.1% to $101.9 million, compared to $73.8 million in the prior year, with modular space average units on rent up 29.6% and average monthly rental rate up 5.5% compared to the prior year.
    • On a pro forma basis, Modular – Other North America segment modular space rental rate increased 4.4% compared to the prior year. Pro forma modular space units on rent decreased 2.5% to 8,973, and pro forma utilization for our modular space units decreased to 56.1%, down 30 bps from 56.4%.

Adjusted EBITDA of $356.5 million, including $4.4 million of costs related to finance leases reclassified as operating leases upon adoption of ASC 842, was up 65.4% compared to $215.5 million in the prior year, and Adjusted EBITDA margins improved 480 bps year over year to 33.5%.

  • Modular – US segment Adjusted EBITDA increased 65.5% to $325.0 million, and Modular – Other North America segment Adjusted EBITDA increased $12.4 million to $31.5 million from the prior year.
  • Adjusted EBITDA margins improved by 480 bps year over year driven by a 30 bps improvement in leasing and services gross profit margin as a result of improved delivery and installation rates, as well as a 470 bps reduction in selling, general and administrative expenses, offset slightly by decreased sale margins. We estimate that incremental cost synergies of approximately $36.0 million related to the Acton and ModSpace acquisitions were realized in the year bringing total estimated synergies realized from the dates of the acquisitions to approximately $42.4 million. Approximately 80% of the annualized forecasted cost synergies of over $70.0 million were in our run rate as of December 31, 2019.

Net loss of $11.5 million for the year ended December 31, 2019 includes $46.0 million of discrete costs expensed in the period related to integration and acquisition-related activities, including $26.6 million of integration costs, $11.5 million of impairment of long-lived assets and lease impairment expense and other related charges, $3.8 million of restructuring cost, and $4.1 of other expense. This is down $42.1 million from a consolidated net loss of $53.6 million in 2018, which included $20.1 million of transaction costs, $15.5 million of restructuring costs, and $30.0 million of integration costs related to the Acton and ModSpace acquisitions.

Capitalization and Liquidity Update

Capital expenditures decreased $4.9 million, or 9.6%, to $46.0 million for the three months ended December 31, 2019, from $50.9 million for the three months ended December 31, 2018. Net CAPEX4 decreased $11.9 million, or 28.5%, to $29.8 million for the three months ended December 31, 2019. The decrease was driven primarily by completion of the ModSpace integration in 2019, which allowed for more precise capital allocation decisions in Q4 2019 relative to Q4 2018. Capital expenditures increased $47.9, or 28.9%, to $213.4 million for the year ended December 31, 2019, from $165.5 million for the year ended December 31, 2018. Net CAPEXincreased $18.5, or 13.8%, to $152.6 million for the year ended December 31, 2019.  The increase was driven primarily by increased investments to support our larger fleet subsequent to the ModSpace acquisition in August 2018.

During the three months ended December 31, 2019, we generated $43.7 million of Free Cash Flow1, representing an increase of $63.9 million as compared to the three months ended December 31, 2018. Free Cash Flow1 increased $116.9 million to $20.0 for the year ended December 31, 2019. Total long-term debt as of December 31, 2019 was $1,632.6 million.  Net cash provided by operating activities of $172.6 million offset net cash used in investing activities of $152.6 million. As of December 31, 2019, we had $509.1 million of available borrowing capacity under our ABL Facility.

2020 Outlook

This guidance is subject to risks and uncertainties, including those described in “Forward-Looking Statements” below. The 2020 guidance includes:

 Current Outlook
Total revenue$1.1 billion – $1.2 billion
Adjusted EBITDA1,3$410 million – $430 million
Net CAPEX4$160 million – $180 million
  

1 – Adjusted EBITDA, Adjusted EBITDA Margin, and Free Cash Flow are non-GAAP financial measures. Further information and reconciliations for these Non-GAAP measures to the most directly comparable financial measure under generally accepted accounting principles in the US (“GAAP”) is included at the end of this press release.

2 – The pro forma financial information and performance metrics contained in this press release include the results of WillScot and ModSpace on a pro forma basis for all periods presented. The ModSpace acquisition closed August 15, 2018.

3 – Information reconciling forward-looking Adjusted EBITDA and Net CAPEX to GAAP financial measures is unavailable to the Company without unreasonable effort and therefore no reconciliation to the most comparable GAAP measures is provided.

4 – Net CAPEX is a non-GAAP financial measure. Please see the non-GAAP reconciliation tables included at the end of this press release.

5 – Quarterly amounts were adjusted for the adoption of Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) (“ASC 842”), effective retroactively to January 1, 2019, of and therefore do not agree to the Quarterly Reports filed on Form 10-Q for the respective periods of 2019.  See reconciliation of the impact of adopting ASC 842 included at the end of this press release.

Non-GAAP Financial Measures

This press release includes non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA margin, Free Cash Flow, pro forma revenue, and Net CAPEX. Adjusted EBITDA is defined as net income (loss) before income tax expense, net interest expense, depreciation and amortization adjusted for non-cash items considered non-core to business operations including net currency gains and losses, goodwill and other impairment charges, restructuring costs, costs to integrate acquired companies, costs incurred related to transactions, non-cash charges for stock compensation plans, and other discrete expenses. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by revenue. Free Cash Flow is defined as net cash provided by operating activities, less purchases of, and proceeds from, rental equipment and property, plant and equipment, which are all included in cash flows from investing activities. Net CAPEX is defined as as purchases of rental equipment and refurbishments and purchases of property, plant and equipment (collectively, “Total Capital Expenditures”), less proceeds from sale of rental equipment and proceeds from the sale of property, plant and equipment (collectively, “Total Proceeds”), which are all included in cash flows from investing activities. Our management believes that the presentation of Net CAPEX provides useful information to investors regarding the net capital invested into our rental fleet and plant, property and equipment each year to assist in analyzing the performance of our business. Pro forma revenue is defined the same as revenue, but includes pre-acquisition results from ModSpace for all periods presented. WillScot believes that Adjusted EBITDA and Adjusted EBITDA margin are useful to investors because they (i) allow investors to compare performance over various reporting periods on a consistent basis by removing from operating results the impact of items that do not reflect core operating performance; (ii) are used by our board of directors and management to assess our performance; (iii) may, subject to the limitations described below, enable investors to compare the performance of WillScot to its competitors; and (iv) provide additional tools for investors to use in evaluating ongoing operating results and trends. WillScot believes that pro forma revenue is useful to investors because they allow investors to compare performance of the combined Company over various reporting periods on a consistent basis WillScot believes that Net CAPEX provide useful additional information concerning cash flow available to meet future debt service obligations. However, Adjusted EBITDA is not a measure of financial performance or liquidity under GAAP and, accordingly, should not be considered as an alternative to net income or cash flow from operating activities as an indicator of operating performance or liquidity. These non-GAAP measures should not be considered in isolation from, or as an alternative to, financial measures determined in accordance with GAAP. Other companies may calculate Adjusted EBITDA and other non-GAAP financial measures differently, and therefore WillScot’s non-GAAP financial measures may not be directly comparable to similarly-titled measures of other companies. For reconciliation of the non-GAAP measures used in this press release (except as explained below), see “Reconciliation of non-GAAP Financial Measures” included in this press release.

Information reconciling forward-looking Adjusted EBITDA to GAAP financial measures is unavailable to WillScot without unreasonable effort. We cannot provide reconciliations of forward looking Adjusted EBITDA to GAAP financial measures because certain items required for such reconciliations are outside of our control and/or cannot be reasonably predicted, such as the provision for income taxes. Preparation of such reconciliations would require a forward-looking balance sheet, statement of income and statement of cash flow, prepared in accordance with GAAP, and such forward-looking financial statements are unavailable to WillScot without unreasonable effort. Although we provide a range of Adjusted EBITDA that we believe will be achieved, we cannot accurately predict all the components of the Adjusted EBITDA calculation. WillScot provides Adjusted EBITDA guidance because we believe that Adjusted EBITDA, when viewed with our results under GAAP, provides useful information for the reasons noted above.

Conference Call Information

WillScot will host a conference call and webcast to discuss its fourth quarter 2019 results and outlook at 8 a.m. Eastern Time on Monday, March 2, 2020. The live call can be accessed by dialing (855) 312-9420 (US/Canada toll-free) or (210) 874-7774 (international) and asking to be connected to the WillScot call. A live webcast will also be accessible via the “Events & Presentations” section of the Company’s investor relations website https://investors.willscot.com. Choose “Events” and select the information pertaining to the WillScot Fourth Quarter 2019 Conference Call. Additionally, there will be slides accompanying the webcast. Please allow at least 15 minutes prior to the call to register, download and install any necessary software. For those unable to listen to the live broadcast, an audio webcast of the call will be available for 60 days on the Company’s investor relations website.

About WillScot Corporation

Headquartered in Baltimore, Maryland, WillScot Corporation is the public holding company for the Williams Scotsman family of companies in the United States, Canada and Mexico. WillScot Corporation trades on the Nasdaq stock exchange under the ticker symbol “WSC” and is the specialty rental services market leader providing innovative modular space and portable storage solutions across North America. It is the modular space supplier of choice for the construction, education, health care, government, retail, commercial, transportation, security and energy sectors. With over half a century of innovative history, organic growth and strategic acquisitions, its fleet comprises approximately 150,000 modular space and portable storage units managed through its network of approximately 120 locations.

Forward-Looking Statements

This news release contains forward-looking statements (including the earnings guidance/outlook contained herein) within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended. The words “estimates,” “expects,” “anticipates,” “believes,” “forecasts,” “plans,” “intends,” “may,” “will,” “should,” “shall,” “outlook” and variations of these words and similar expressions identify forward-looking statements, which are generally not historical in nature. Forward-looking statements are subject to a number of risks, uncertainties, assumptions and other important factors, many of which are outside our control, which could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Although WillScot believes that these forward-looking statements are based on reasonable assumptions, it can give no assurance that any such forward-looking statement will materialize. Important factors that may affect actual results or outcomes include, among others, our ability to acquire and integrate new assets and operations; our ability to achieve planned synergies related to acquisitions; our ability to manage growth and execute our business plan; our estimates of the size of the markets for our products; the rate and degree of market acceptance of our products; the success of other competing modular space and portable storage solutions that exist or may become available; rising costs adversely affecting our profitability (including cost increases resulting from tariffs); potential litigation involving our Company; general economic and market conditions impacting demand for our products and services; implementation of tax reform; our ability to implement and maintain an effective system of internal controls; and such other risks and uncertainties described in the periodic reports we file with the SEC from time to time (including our Form 10-K for the year ending December 31, 2019), which are available through the SEC’s EDGAR system at www.sec.gov and on our website. Any forward-looking statement speaks only at the date which it is made, and WillScot disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Additional Information and Where to Find It

Additional information can be found on our investor relations website at http://investors.willscot.com.

Contact Information  
   
Investor Inquiries: Media Inquiries:
Mark Barbalato Scott Junk
investors@willscot.com
 scott.junk@willscot.com
   

WillScot Corporation
Consolidated Statements of Operations
(Unaudited; in thousands, except share and per share data)

 Years Ended December 31,
 2019 2018 2017
Revenues:     
Leasing and services revenue:     
Modular leasing$744,185  $518,235  $297,821 
Modular delivery and installation220,057  154,557  89,850 
Sales revenue:     
New units59,085  53,603  36,371 
Rental units40,338  25,017  21,900 
Total revenues1,063,665  751,412  445,942 
Costs:     
Costs of leasing and services:     
Modular leasing213,151  143,120  83,588 
Modular delivery and installation194,107  143,950  85,477 
Costs of sales:     
New units42,160  36,863  26,025 
Rental units26,255  16,659  12,643 
Depreciation of rental equipment174,679  121,436  72,639 
Gross profit413,313  289,384  165,570 
Expenses:     
Selling, general and administrative271,004  254,871  162,351 
Other depreciation and amortization12,395  13,304  8,653 
Impairment losses on goodwill    60,743 
Impairment losses on long-lived assets2,848  1,600   
Lease impairment expense and other related charges8,674     
Restructuring costs3,755  15,468  2,196 
Currency (gains) losses, net(688) 2,454  (12,878)
Other (income) expense, net(2,200) (4,574) 2,827 
Operating income (loss)117,525  6,261  (58,322)
Interest expense122,504  98,433  119,308 
Interest income    (12,232)
Loss on extinguishment of debt8,755     
Loss from continuing operations before income tax(13,734) (92,172) (165,398)
Income tax benefit(2,191) (38,600) (936)
Loss from continuing operations(11,543) (53,572) (164,462)
Income from discontinued operations, net of tax    14,650 
Net loss(11,543) (53,572) (149,812)
Net loss attributable to non-controlling interest, net of tax(421) (4,532) (2,110)
Net loss attributable to WillScot(11,122) (49,040) (147,702)
Non-cash deemed dividend related to warrant exchange  (2,135)  
Net loss attributable to WillScot common shareholders$(11,122) $(51,175) $(147,702)
(Loss) income per share attributable to WillScot common shareholders – basic and diluted     
Net loss per share attributable to WillScot common shareholders$(0.10) $(0.59) $(8.21)
Income per share attributable to discontinued operations$0.00  $0.00  $0.74 
Net loss per share attributable to WillScot common shareholders$(0.10) $(0.59) $(7.47)
      
Weighted average shares: basic & diluted 108,683,820   87,209,605   19,760,189 
            

Unaudited Quarterly Consolidated Operating Data

Quarterly Consolidated Results for the Year Ended December 31, 2019

(in thousands, except for units on rent and monthly rental rate)Q1 Q2 Q3 Q4 Full Year
Revenue(a)$253,685  $263,713  $268,222  $278,045  $1,063,665 
Gross profit(a)$103,331  $101,484  $99,307  $109,191  $413,313 
Adjusted EBITDA(a)$83,354  $