Strong Cash Flow and Leasing Revenue Stability
The company delivered strong cash flow and leasing revenues remained stable sequentially from Q2 to Q3 across both modular and storage portfolio. Adjusted free cash flow in the quarter was $122 million, representing a 22% margin.
Operational Improvements and Cost Optimizations
The company is focusing on optimizing its branch network and fleet storage needs, which could reduce leased acreage by more than 20% and avoid $20 million to $30 million of annual real estate and facility cost increases over the next 3 to 5 years.
Interest Rate Savings and Extended Credit Facility
Amended and extended ABL credit facility, reducing estimated annual cash borrowing costs by approximately $5 million and extending maturity to 2030, reflecting the quality of the borrowing base and enhancing financial flexibility.
Positive Traction in New Product Lines
Enterprise accounts revenue in the second half expected to be up approximately 5% year-over-year. Climate-controlled storage units on rent were up 44% year-over-year at the end of October, and FLEX units were up 30% year-over-year.