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Mobile Mini Reports Q2 2017 Results and Announces Quarterly Dividend

Posted on: 08/22/2017

PHOENIX--(BUSINESS WIRE)--Jul. 21, 2017-- Mobile Mini, Inc. (NASDAQ GS:MINI) (the “Company” or “Mobile Mini”), the world’s leading supplier of portable storage solutions and a leading provider of tank and pump solutions in the United States, today reported actual and adjusted financial results for the quarter ended June 30, 2017. Total revenues were $126.7 million and rental revenues were $117.9 million, as compared to $124.8 million and $116.8 million, respectively, for the same period last year.

Rental revenues for the Storage Solutions and Tank & Pump Solutions businesses for the current quarter were $95.5 million and $22.4 million, respectively.

The Company recorded net income of $8.8 million, or $0.20 per diluted share, in the second quarter of 2017, as compared to net income of $4.1 million, or $0.09 per diluted share, for the second quarter of 2016. On an adjusted basis, second quarter net income was $10.4 million, or $0.24 per diluted share, as compared to adjusted net income of $11.1 million, or $0.25 per diluted share, for the second quarter of 2016. Adjusted EBITDA was $42.0 million and adjusted EBITDA margin was 33.1% for the second quarter of 2017.

Dividend

The Company’s Board of Directors declared a cash dividend of 22.7 cents per share, which will be paid on August 30, 2017 to shareholders of record on August 16, 2017.

Second Quarter 2017 Highlights

  • Delivered a 3.9% increase in Storage Solutions rental revenues on a constant currency basis. Including the impact of unfavorable currency fluctuations, Storage Solutions rental revenues increased 1.5%.
  • Drove a 12.0% year-over-year increase in North America Storage Solutions activations resulting in an all-time high in quarterly core activations.
  • Increased total Storage Solutions average units on rent by 4.3% year-over-year, and 4.7% at June 30, 2017 compared to June 30, 2016.
  • Raised Storage Solutions rental rates by 2.6% year-over-year.
  • Grew rental revenues by 6.8% sequentially in the Tank & Pump Solutions business rental, largely due to increased project work in the diversified business.
  • Achieved adjusted EBITDA of $42.0 million, with an adjusted EBITDA margin of 33.1%.
  • Generated net cash from operating activities of $30.5 million and strong free cash flow of $14.9 million.

CEO Comments

Erik Olsson, Mobile Mini’s President and Chief Executive Officer, remarked, “During the quarter, we drove the highest number of North America Storage Solutions core activations in company history, an increase of 12.0% compared to the same quarter in the prior year. We also achieved total year-over-year rate increases of 2.6% in Storage Solutions, resulting in strong year-over-year growth of 3.9% in rental revenues for that business. Our sales approach and commitment to world-class customer service continue to drive revenue growth.”

Mr. Olsson continued, “Within our Tank & Pump Solutions business, rental revenues were up sequentially in all three customer segments, resulting in an overall increase of 6.8%. The 1.3% year-over-year decrease in Tank & Pump Solutions rental revenue resulted primarily from deferred maintenance activity at certain of our downstream customers, which we expect to be temporary. Diversified rental revenues increased year-over-year, while our upstream business rental revenues were flat. Our outlook for Tank & Pump remains positive for the rest of 2017, although both market fluctuations and the timing of our customers’ projects introduce variability into year-over-year comparisons.”

Conference Call

Mobile Mini will host a conference call today, Friday, July 21 at 12 noon ET to review these results. To listen to the call live, dial (201) 493-6739 and ask for the Mobile Mini Conference Call or go to www.mobilemini.com and click on the Investors section. Additionally, a slide presentation that will accompany the call will be posted at www.mobilemini.com on the Investor Relations section and will be available in advance and after the call. Please go to the website 15 minutes early to download and install any necessary audio software. If you are unable to listen live, a replay of the call can be accessed for approximately 14 days after the call at Mobile Mini’s website.

About Mobile Mini, Inc.

Mobile Mini, Inc. is the world’s leading provider of storage solutions through its total rental fleet of approximately 211,900 storage solutions containers and office units and a leading provider of tank and pump solutions in the U.S., with a rental fleet of approximately 12,000 units. Mobile Mini’s network is comprised of 156 locations in the U.S., U.K., and Canada. Mobile Mini is included on the Russell 2000® and 3000® Indexes and the S&P Small Cap Index.

Forward-Looking Statements

This news release contains forward-looking statements, including, but not limited to, our approach being able to drive revenue growth, deferred customer maintenance being temporary, our outlook remaining positive, and our ability to continue to be strongly positioned in both the portable storage and specialty containment markets, which involve risks and uncertainties that could cause actual results to differ materially from those currently anticipated. Risks and uncertainties that may affect future results include those that are described from time to time in the Company’s filings with the Securities and Exchange Commission (“SEC”). These forward-looking statements represent the judgment of the Company, as of the date of this release, and Mobile Mini disclaims any intent or obligation to update forward-looking statements.

   
Mobile Mini, Inc.  
Condensed Consolidated Statements of Income  
(Unaudited)  
(in thousands, except percentages and per share data)  
                                                 
    Three Months Ended June 30, 2017     Three Months Ended June 30, 2016  
    Actual     Adjustments     Adjusted (1)     Actual     Adjustments     Adjusted (2)  
                                                 
Revenues:                                                
Rental   $ 117,851     $     $ 117,851     $ 116,773     $     $ 116,773  
Sales     8,401             8,401       6,342             6,342  
Other     438             438       1,734       (1,365 )     369  
Total revenues     126,690             126,690       124,849       (1,365 )     123,484  
                                                 
Costs and expenses:                                                
Rental, selling and general expenses     82,850       (2,056 )     80,794       78,037             78,037  
Cost of sales     5,408             5,408       3,678             3,678  
Restructuring expenses     538       (538 )           1,324       (1,324 )      
Depreciation and amortization     15,742             15,742       16,269             16,269  
Total costs and expenses     104,538       (2,594 )     101,944       99,308       (1,324 )     97,984  
                                                 
Income from operations     22,152       2,594       24,746       25,541       (41 )     25,500  
                                                 
Other income (expense):                                                
Interest income     16             16                    
Interest expense     (8,807 )           (8,807 )     (8,002 )           (8,002 )
Debt extinguishment expense                       (9,192 )     9,192        
Deferred financing costs write-off                       (2,271 )     2,271        
Foreign currency exchange     (18 )           (18 )     (4 )           (4 )
                                                 
Income before income tax provision     13,343       2,594       15,937       6,072       11,422       17,494  
                                                 
Income tax provision     4,566       994       5,560       2,000       4,373       6,373  
                                                 
Net income   $ 8,777     $ 1,600     $ 10,377     $ 4,072     $ 7,049     $ 11,121  
                                                 
EBITDA/Adjusted EBITDA   $ 37,892             $ 41,960     $ 41,806             $ 43,388  
EBITDA/Adjusted EBITDA as a percentage of

total revenues

    29.9 %             33.1 %     33.5 %             35.1 %
                                                 
Earnings per share:                                                
Basic   $ 0.20             $ 0.24     $ 0.09             $ 0.25  
Diluted     0.20               0.24       0.09               0.25  
                                                 
Weighted average number of common and

common share equivalents outstanding:

                                               
Basic     43,944               43,944       44,132               44,132  
Diluted     44,025               44,025       44,505               44,505  

(1) Adjusted column for the three months ended June 30, 2017 excludes certain transactions that management believes are not indicative of our business. Adjusted figures are a non-GAAP (defined herein) presentation. See the non-GAAP reconciliations herein and the additional information regarding non-GAAP financial information following in this earnings release. The adjustments for the three-month period ended June 30, 2017 include the following, along with the related tax effects:

  • Reduction of $2.1 million in rental, selling and general expenses to exclude costs related to severance and transition in conjunction with the departure of an executive.
  • Exclusion of $0.5 million in costs related to the restructuring of our business operations.

(2) Adjusted column for the three months ended June 30, 2016 excludes certain transactions that management believes are not indicative of our business. Adjusted figures are a non-GAAP presentation. See the non-GAAP reconciliations herein and the additional information regarding non-GAAP financial information following in this earnings release. The adjustments for the three-month period ended June 30, 2016 include the following, along with the related tax effects.

  • Reduction of other revenue by $1.4 million to exclude revenue associated with a sales tax refund.
  • Exclusion of costs of $1.3 million related to the restructuring of our business operations.
  • Exclusion of $9.2 million of debt extinguishment costs to redeem the Company’s $200 million 7.785% senior notes due December 2020 (the “2020 Notes”).
  • Exclusion of $2.3 million of deferred financing costs that were written off in conjunction with the redemption of the 2020 Notes.
   
Mobile Mini, Inc.  
Condensed Consolidated Statements of Operations  
(Unaudited)  
(in thousands, except percentages and per share data)  
                                                 
    Six Months Ended June 30, 2017     Six Months Ended June 30, 2016  
    Actual     Adjustments     Adjusted (1)     Actual     Adjustments     Adjusted (2)  
                                                 
Revenues:                                                
Rental   $ 232,593     $     $ 232,593     $ 234,129     $     $ 234,129  
Sales     16,379             16,379       13,233             13,233  
Other     1,245             1,245       2,020       (1,365 )     655  
Total revenues     250,217             250,217       249,382       (1,365 )     248,017  
                                                 
Costs and expenses:                                                
Rental, selling and general expenses     161,209       (2,386 )     158,823       154,339             154,339  
Cost of sales     10,520             10,520       8,289             8,289  
Restructuring expenses     1,437       (1,437 )           3,572       (3,572 )      
Depreciation and amortization     31,006             31,006       31,446             31,446  
Total costs and expenses     204,172       (3,823 )     200,349       197,646       (3,572 )     194,074  
                                                 
Income from operations     46,045       3,823       49,868       51,736       2,207       53,943  
                                                 
Other income (expense):                                                
Interest income     16             16                    
Interest expense     (17,209 )           (17,209 )     (16,486 )           (16,486 )
Debt extinguishment expense                       (9,192 )     9,192        
Deferred financing costs write-off                       (2,271 )     2,271        
Foreign currency exchange     (27 )           (27 )     (4 )           (4 )
                                                 
Income before income tax provision     28,825       3,823       32,648       23,783       13,670       37,453  
                                                 
Income tax provision     9,896       1,450       11,346       8,713       5,260       13,973  
                                                 
Net income   $ 18,929     $ 2,373     $ 21,302     $ 15,070     $ 8,410     $ 23,480  
                                                 
EBITDA/Adjusted EBITDA   $ 77,040             $ 83,648     $ 83,178             $ 89,572  
EBITDA/Adjusted EBITDA as a percentage of

total revenues

    30.8 %             33.4 %     33.4 %             36.1 %
                                                 
Earnings per share:                                                
Basic   $ 0.43             $ 0.48     $ 0.34             $ 0.53  
Diluted     0.43               0.48       0.34               0.53  
                                                 
Weighted average number of common and

common share equivalents outstanding:

                                               
Basic     44,026               44,026       44,175               44,175  
Diluted     44,183               44,183       44,420               44,420  

(1) Adjusted column for the six months ended June 30, 2017 excludes certain transactions that management believes are not indicative of our business. Adjusted figures are a non-GAAP presentation. See the non-GAAP reconciliations herein and the additional information regarding non-GAAP financial information following in this earnings release. The adjustments for the six-month period ended June 30, 2017 include the following, along with the related tax effects:

  • Reduction of $0.1 million in rental, selling and general expenses for acquisition-related expenses.
  • Reduction of $2.3 million in rental, selling and general expenses to exclude costs related to severance and transition in conjunction with the departure of executives.
  • Exclusion of $1.4 million in costs related to the restructuring of our business operations.

(2) Adjusted column for the six months ended June 30, 2016 excludes certain transactions that management believes are not indicative of our business. Adjusted figures are a non-GAAP presentation. See the non-GAAP reconciliations herein and the additional information regarding non-GAAP financial information following in this earnings release. The adjustments for the six-month period ended June 30, 2016 include the following, along with the related tax effects.

  • Reduction of other revenue by $1.4 million to exclude revenue associated with a sales tax refund.
  • Exclusion of costs of $3.6 million related to the restructuring of our business operations.
  • Exclusion of $9.2 million of debt extinguishment costs to redeem the 2020 Notes.
  • Exclusion of $2.3 million of deferred financing costs that were written off in conjunction with the redemption of the 2020 Notes.
   
Mobile Mini, Inc.  
Operating Data  
(Unaudited)  
                 
       
    2017     2016  
As of June 30:                
Stand-alone Storage Solutions locations     123       127  
Stand-alone Tank & Pump Solutions locations     18       19  
Combined Storage Solutions and Tank & Pump Solutions locations     15       13  
Storage Solutions rental fleet units     211,900       206,700  
Tank & Pump Solutions rental fleet units     12,000       12,000  
                 
Average utilization - Three months ended June 30:                
Storage Solutions - utilization based on number of units     69.4 %     68.4 %
Tank & Pump Solutions - utilization based on original equipment cost     64.5 %     63.5 %
                 
Average utilization - Six months ended June 30:                
Storage Solutions - utilization based on number of units     69.2 %     68.4 %
Tank & Pump Solutions - utilization based on original equipment cost (1)     63.2 %        
                 

(1) Utilization for Tank & Pump Solutions is calculated as the average original cost of equipment on rent, excluding re-rented equipment, divided by the average original cost of equipment in the fleet. This statistic has been calculated since the three-month period ending June 30, 2016; no comparable statistic is available for the prior-year period.

   
Mobile Mini, Inc.  
Business Segment Information - Adjusted (1)  
(Unaudited)  
(in thousands, except percentages)  
                                                 
    Three Months Ended June 30, 2017     Three Months Ended June 30, 2016  
   

Storage
Solutions

   

Tank & Pump
Solutions

    Total    

Storage
Solutions

   

Tank & Pump
Solutions

    Total  
                                                 
Revenues:                                                
Rental   $ 95,486     $ 22,365     $ 117,851     $ 94,102     $ 22,671     $ 116,773  
Sales     7,156       1,245       8,401       5,123       1,219       6,342  
Other     344       94       438       246       123       369  
Total revenues     102,986       23,704       126,690       99,471       24,013       123,484  
                                                 
Costs and expenses:                                                
Rental, selling and general expenses     64,075       16,719       80,794       62,854       15,183       78,037  
Cost of sales     4,730       678       5,408       3,056       622       3,678  
Depreciation and amortization     9,477       6,265       15,742       8,978       7,291       16,269  
Total costs and expenses     78,282       23,662       101,944       74,888       23,096       97,984  
                                                 
Income from operations   $ 24,704     $ 42     $ 24,746     $ 24,583     $ 917     $ 25,500  
                                                 
Adjusted EBITDA   $ 35,589     $ 6,371     $ 41,960     $ 35,106     $ 8,282     $ 43,388  
Adjusted EBITDA Margin     34.6 %     26.9 %     33.1 %     35.3 %     34.5 %     35.1 %
                                                 
                                                 
                                                 
    Six Months Ended June 30, 2017     Six Months Ended June 30, 2016  
   

Storage
Solutions

   

Tank & Pump
Solutions

    Total    

Storage
Solutions

   

Tank & Pump
Solutions

    Total  
                                                 
Revenues:                                                
Rental   $ 189,292     $ 43,301     $ 232,593     $ 187,830     $ 46,299     $ 234,129  
Sales     14,020       2,359       16,379       10,415       2,818       13,233  
Other     1,017       228       1,245       513       142       655  
Total revenues     204,329       45,888       250,217       198,758       49,259       248,017  
                                                 
Costs and expenses:                                                
Rental, selling and general expenses     125,970       32,853       158,823       123,708       30,631       154,339  
Cost of sales     9,331       1,189       10,520       6,455       1,834       8,289  
Depreciation and amortization     18,660       12,346       31,006       17,116       14,330       31,446  
Total costs and expenses     153,961       46,388       200,349       147,279       46,795       194,074  
                                                 
Income (loss) from operations   $ 50,368     $ (500 )   $ 49,868     $ 51,479     $ 2,464     $ 53,943  
                                                 
Adjusted EBITDA   $ 71,681     $ 11,967     $ 83,648     $ 72,630     $ 16,942     $ 89,572  
Adjusted EBITDA Margin     35.1 %     26.1 %     33.4 %     36.5 %     34.4 %     36.1 %
                                                 

(1) These tables present results by major business segment adjusted to exclude certain transactions that management believes are not indicative of our business. See additional information regarding non-GAAP financial information following in this earnings release.

   
Mobile Mini, Inc.  
Condensed Consolidated Balance Sheets  
(in thousands)  
                 
                 
    June 30,     December 31,  
    2017     2016  
    (unaudited)     (audited)  
ASSETS  
Cash and cash equivalents   $ 9,274     $ 4,137  
Receivables, net     92,390       99,175  
Inventories     16,399       15,412  
Rental fleet, net     964,141       950,065  
Property, plant and equipment, net     150,636       149,197  
Other assets     17,128       14,930  
Intangibles, net     65,204       68,420  
Goodwill     706,602       703,558  
Total assets   $ 2,021,774     $ 2,004,894  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY  
Liabilities:                
Accounts payable   $ 30,708     $ 27,388  
Accrued liabilities     64,956       64,126  
Lines of credit     637,651       641,160  
Obligations under capital leases     49,302       50,704  
Senior notes, net     245,531       245,212  
Deferred income taxes     231,579       240,690  
Total liabilities     1,259,727       1,269,280  
                 
Stockholders' equity:                
Common stock     495       493  
Additional paid-in capital     597,658       592,071  
Retained earnings     380,125       362,896  
Accumulated other comprehensive loss     (69,448 )     (81,047 )
Treasury stock     (146,783 )     (138,799 )
Total stockholders' equity     762,047       735,614  
Total liabilities and stockholders' equity   $ 2,021,774     $ 2,004,894  
   
Mobile Mini, Inc.  
Condensed Consolidated Statements of Cash Flows  
(Unaudited)  
(in thousands)  
    Six Months Ended  
    June 30,  
    2017     2016  
Cash flows from operating activities:                
Net income   $ 18,929     $ 15,070  
Adjustments to reconcile net income to net cash

provided by operating activities:

               
Debt extinguishment expense           9,192  
Deferred financing costs write-off           2,271  
Provision for doubtful accounts     2,202       2,646  
Amortization of deferred financing costs     1,030       948  
Amortization of long-term liabilities     65       58  
Share-based compensation expense     3,820       4,245  
Depreciation and amortization     31,006       31,446  
Gain on sale of rental fleet     (2,826 )     (2,782 )
Loss on disposal of property, plant and equipment     282       689  
Deferred income taxes     9,151       8,542  

Foreign currency exchange

    27       4  
Changes in certain assets and liabilities, net of

effect of businesses acquired

    (465 )     (7,619 )
Net cash provided by operating activities     63,221       64,710  
                 
Cash flows from investing activities:                
Cash paid for businesses acquired, net of cash acquired           (9,206 )
Additions to rental fleet, excluding acquisitions     (23,027 )     (28,158 )
Proceeds from sale of rental fleet     6,283       7,409  
Additions to property, plant and equipment, excluding acquisitions     (8,707 )     (19,263 )
Proceeds from sale of property, plant and equipment     768       1,615  
Net cash used in investing activities     (24,683 )     (47,603 )
                 
Cash flows from financing activities:                
Net repayments under lines of credit     (3,509 )     (20,961 )
Proceeds from issuance of 5.875% senior notes due 2024           250,000  
Redemption of 7.875% senior notes due 2020           (200,000 )
Debt extinguishment expense           (9,192 )
Deferred financing costs     (12 )     (4,916 )
Principal payments on capital lease obligations     (3,736 )     (2,920 )
Issuance of common stock     1,640       92  
Dividend payments     (20,119 )     (18,236 )
Purchase of treasury stock     (7,984 )     (7,096 )
Net cash used in financing activities     (33,720 )     (13,229 )
                 
Effect of exchange rate changes on cash     319       (152 )
                 
Net change in cash     5,137       3,726  
                 
Cash and cash equivalents at beginning of period     4,137       1,613  
Cash and cash equivalents at end of period   $ 9,274     $ 5,339  
                 
Equipment and other acquired through capital lease obligations   $ 2,333     $ 14,258  
Capital expenditures accrued or payable     8,268       5,507  
                 

Non-GAAP Financial Information

In addition to disclosing financial results that are determined in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company also discloses in this press release certain non-GAAP financial information. These financial measures are not recognized measures under GAAP and they are not intended to be and should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Adjusted net income, adjusted diluted earnings per share, EBITDA, adjusted EBITDA, EBITDA margin, adjusted EBITDA margin, free cash flow and constant currency financial information are non-GAAP financial measures as defined by SEC rules. This non-GAAP financial information may be determined or calculated differently by other companies. Reconciliations of these non-GAAP measurements to the most directly comparable GAAP financial measurements are furnished earlier in this release and as follows:

   
Mobile Mini, Inc.  
Adjusted EBITDA GAAP Reconciliations  
(Unaudited)  
(in thousands)  
                                 
    Three Months Ended

June 30,

    Six Months Ended

June 30,

 
   

2017

    2016     2017     2016  
Net income   $ 8,777     $ 4,072     $ 18,929     $ 15,070  
Interest expense     8,807       8,002       17,209       16,486  
Income tax provision     4,566       2,000       9,896       8,713  
Depreciation and amortization     15,742       16,269       31,006       31,446  
Debt extinguishment expense           9,192             9,192  
Deferred financing costs write-off           2,271             2,271  
EBITDA     37,892       41,806       77,040       83,178  
                                 
Share-based compensation expense     1,474       1,623       2,785       4,187  
Restructuring expenses     538       1,324       1,437       3,572  
Acquisition-related expenses     9             97        
Sales tax refund           (1,365 )           (1,365 )
Other     2,047             2,289        
Adjusted EBITDA   $ 41,960     $ 43,388     $ 83,648     $ 89,572  
                                 
                                 
    Three Months Ended

June 30,

    Six Months Ended

June 30,

 
    2017     2016     2017     2016  
Net cash provided by operating activities   $ 30,498     $ 29,429     $ 63,221     $ 64,710  
Interest paid     4,516       10,113       18,187       13,991  
Income and franchise taxes paid     1,100       1,083       1,100       1,151  
Share-based compensation expense     (2,509 )     (1,681 )     (3,820 )     (4,245 )
Gain on sale of rental fleet     1,123       1,404       2,826       2,782  
Loss on disposal of property, plant and

equipment

    (264 )     (351 )     (282 )     (689 )
Changes in certain assets and liabilities, net of

effect of businesses acquired

    3,428       1,809       (4,192 )     5,478  
EBITDA   $ 37,892     $ 41,806     $ 77,040     $ 83,178  
   
Mobile Mini, Inc.  
Free Cash Flow GAAP Reconciliation  
(Unaudited)  
(in thousands)  
                                 
    Three Months Ended

June 30,

    Six Months Ended

June 30,

 
    2017     2016     2017     2016  
Net cash provided by operating activities   $ 30,498     $ 29,429     $ 63,221     $ 64,710  
                                 
Additions to rental fleet, excluding acquisitions     (13,021 )     (17,274 )     (23,027 )     (28,158 )
Proceeds from sale of rental fleet     1,661       3,439       6,283       7,409  
Additions to property, plant and equipment,                                
excluding acquisitions     (4,959 )     (10,953 )     (8,707 )     (19,263 )
Proceeds from sale of property, plant and                                
equipment     700       775       768       1,615  
Net capital expenditures, excluding acquisitions     (15,619 )     (24,013 )     (24,683 )     (38,397 )
                                 
Free cash flow   $ 14,879     $ 5,416     $ 38,538     $ 26,313  
                                 

Adjusted net income and adjusted diluted earnings per share. Adjusted net income and related earnings per share information exclude certain transactions that management believes are not indicative of our business. We believe that the inclusion of this non-GAAP presentation makes it easier to compare our financial performance across reporting periods on a consistent basis.

EBITDA and adjusted EBITDA. EBITDA is defined as net income before discontinued operations, net of tax (if applicable), interest expense, income taxes, depreciation and amortization, and debt restructuring or extinguishment expense (if applicable), including any write-off of deferred financing costs. Adjusted EBITDA further excludes certain non-cash expenses, including share-based compensation, as well as transactions that management believes are not indicative of our business. Because EBITDA and adjusted EBITDA, as defined, exclude some but not all items that affect our cash flow from operating activities, they may not be comparable to similarly titled performance measures presented by other companies.

We present EBITDA and adjusted EBITDA because we believe they provide useful information regarding our ability to meet our future debt payment requirements, capital expenditures and working capital requirements and an overall evaluation of our financial condition. EBITDA and adjusted EBITDA have certain limitations as analytical tools and should not be used as substitutes for net income, cash flows from operations, or other consolidated income or cash flow data prepared in accordance with GAAP.

EBITDA and adjusted EBITDA margins are calculated as EBITDA and adjusted EBITDA, respectively, divided by total revenues expressed as a percentage.

Free Cash Flow. Free cash flow is defined as net cash provided by operating activities, minus or plus, net cash used in or provided by investing activities, excluding acquisitions and certain transactions. Free cash flow is a non-GAAP financial measure and is not intended to replace net cash provided by operating activities, the most directly comparable financial measure prepared in accordance with GAAP. We present free cash flow because we believe it provides useful information regarding our liquidity and ability to meet our short-term obligations. In particular, free cash flow indicates the amount of cash available after capital expenditures for, among other things, investments in our existing business, debt service obligations, payment of authorized quarterly dividends, repurchase of our common stock and strategic small acquisitions.

Constant Currency. We calculate the effect of currency fluctuations on current periods by translating the results for our business in the U.K. during the current period using the average exchange rates from the comparative period. We present constant currency information to provide useful information to assess our underlying business excluding the effect of material foreign currency rate fluctuations. Calculated in constant currency, our rental revenues for the three months ended June 30, 2017 were $2.3 million higher than when calculated in accordance with GAAP.

View source version on businesswire.com: http://www.businesswire.com/news/home/20170721005148/en/

Source: Mobile Mini, Inc.

Mobile Mini, Inc.
Mark Funk, 602-308-3879
Executive VP & Chief Financial Officer
or
Investor Relations Counsel:
The Equity Group Inc.
Fred Buonocore, 212-836-9607
Linda Latman, 212-836-9609