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Mobile Mini Reports Q3 2017 Results and Announces Quarterly Dividend

Posted on: 10/20/2017

PHOENIX--(BUSINESS WIRE)--Oct. 20, 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 September 30, 2017. Total revenues were $136.6 million and rental revenues were $127.7 million, as compared to $128.9 million and $121.8 million, respectively, for the same period last year.

Rental revenues for the Storage Solutions and Tank & Pump Solutions businesses for the current quarter were $104.5 million and $23.2 million, respectively.

The Company recorded net income of $11.2 million, or $0.25 per diluted share, in the third quarter of 2017, as compared to net income of $12.7 million, or $0.29 per diluted share, for the third quarter of 2016. On an adjusted basis, third quarter net income was $11.8 million, or $0.27 per diluted share, as compared to adjusted net income of $13.7 million, or $0.31 per diluted share, for the third quarter of 2016. Adjusted EBITDA was $45.5 million and adjusted EBITDA margin was 33.3% for the third 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 November 29, 2017 to shareholders of record on November 15, 2017.

Third Quarter 2017 Highlights

  • Delivered a strong 7.0% year-over-year increase in Storage Solutions rental revenues.
  • Achieved third sequential quarter of Tank & Pump Solutions rental revenue growth.
  • Increased total Storage Solutions average units on rent by 5.3% year-over-year.
  • Raised Storage Solutions rental rates by 2.9% year-over-year, with rates on new rentals up 3.9%.
  • Grew year-to-date seasonal orders through September 30, 2017 by 21% compared to the prior year.
  • Increased average Storage Solutions unit utilization to 71.8% for the quarter and finished the quarter at 74.4%.
  • Improved OEC utilization for Tank & Pump Solutions, averaging 66.6% for the quarter and ending the quarter at 72.8%.
  • Achieved adjusted EBITDA of $45.5 million, with an adjusted EBITDA margin of 33.3%, despite year-over-year headwinds of $6.2 million in increased variable compensation expense.
  • Generated net cash from operating activities of $32.6 million and strong free cash flow of $8.9 million.

CEO Comments

Erik Olsson, Mobile Mini’s President and Chief Executive Officer, remarked, “I am very pleased with the performance of both our business segments this quarter. Within the Storage Solutions segment we drove both higher rate and volume, resulting in a strong 7.0% increase in rental revenue. We also leveraged our broad footprint and fleet capacity to partner with our national account customers to initiate an earlier start to our seasonal holiday business with great results. Within the Tank & Pump segment, demand and performance have stabilized and improved during 2017, with even further increased activity in the second half of the current quarter. We anticipate increased demand in the near-term as certain of our downstream customers are now engaging in turnaround and maintenance activities that had been previously deferred.”

Mr. Olsson continued, “Our business segments are rapidly improving and we are generating great momentum as we head into the fourth quarter. Given the positive trends in performance, the Company has recorded increased variable compensation in the third quarter and throughout the year, mitigating the profit flow through. However, our underlying margins are strong and improving. Excluding the effect of the variable compensation, the adjusted EBITDA margin increased approximately 170 basis points over the third quarter of the prior year. We remain fully committed to driving continuous improvement and efficiencies in our structure and processes.”

Conference Call

Mobile Mini will host a conference call today, Friday, October 20 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 portable storage solutions through its total rental fleet of approximately 214,900 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 155 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, continued increased demand, our ability to increase margins, our outlook remaining positive, and our ability to continue to rapidly improve, 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.

(See accompanying tables)

Mobile Mini, Inc.
Condensed Consolidated Statements of Income
(Unaudited)
(in thousands, except percentages and per share data)
 
        Three Months Ended September 30, 2017       Three Months Ended September 30, 2016  
        Actual       Adjustments       Adjusted (1)       Actual       Adjustments       Adjusted (2)  
                                                               
Revenues:                                                              
Rental       $ 127,695       $       $ 127,695       $ 121,784       $       $ 121,784  
Sales         8,438                 8,438         6,610                 6,610  
Other         503                 503         459                 459  
Total revenues         136,636                 136,636         128,853                 128,853  
                                                               
Costs and expenses:                                                              
Rental, selling and general expenses         87,745         (237 )       87,508         80,457                 80,457  
Cost of sales         5,519                 5,519         3,897                 3,897  
Restructuring expenses         625         (625 )               1,648         (1,648 )        
Depreciation and amortization         15,935                 15,935         16,184                 16,184  
Total costs and expenses         109,824         (862 )       108,962         102,186         (1,648 )       100,538  
                                                               
Income from operations         26,812         862         27,674         26,667         1,648         28,315  
                                                               
Other income (expense):                                                              
Interest income         4                 4                          
Interest expense         (9,203 )               (9,203 )       (8,047 )               (8,047 )
Foreign currency exchange         (2 )               (2 )       (5 )               (5 )
                                                               
Income before income tax provision         17,611         862         18,473         18,615         1,648         20,263  
                                                               
Income tax provision         6,383         327         6,710         5,906         632         6,538  
                                                               
Net income       $ 11,228       $ 535       $ 11,763       $ 12,709       $ 1,016       $ 13,725  
                                                               
EBITDA/Adjusted EBITDA       $ 42,749                 $ 45,531       $ 42,846                 $ 46,650  

EBITDA/Adjusted EBITDA as a percentage of
total revenues

        31.3 %                 33.3 %       33.3 %                 36.2 %
                                                               
Earnings per share:                                                              
Basic       $ 0.25                 $ 0.27       $ 0.29                 $ 0.31  
Diluted         0.25                   0.27         0.29                   0.31  
                                                               

Weighted average number of common and
common share equivalents outstanding:

                                                             
Basic         44,039                   44,039         44,159                   44,159  
Diluted         44,206                   44,206         44,453                   44,453  
 

(1) Adjusted column for the three months ended September 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 September 30, 2017 include the following, along with the related tax effects:

  • Reduction of $0.2 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 $0.6 million in costs related to the restructuring of our business operations.

(2) Adjusted column for the three months ended September 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 September 30, 2016 exclude costs of $1.6 million related to the restructuring of our business operations, along with the related tax effects.

 
Mobile Mini, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(in thousands, except percentages and per share data)

 

        Nine Months Ended September 30, 2017       Nine Months Ended September 30, 2016  
        Actual       Adjustments       Adjusted (1)       Actual       Adjustments       Adjusted (2)  
                                                               
Revenues:                                                              
Rental       $ 360,288       $       $ 360,288       $ 355,913       $       $ 355,913  
Sales         24,817                 24,817         19,843                 19,843  
Other         1,748                 1,748         2,479         (1,365 )       1,114  
Total revenues         386,853                 386,853         378,235         (1,365 )       376,870  
                                                               
Costs and expenses:                                                              
Rental, selling and general expenses         248,954         (2,623 )       246,331         234,796                 234,796  
Cost of sales         16,039                 16,039         12,186                 12,186  
Restructuring expenses         2,062         (2,062 )               5,220         (5,220 )        
Depreciation and amortization         46,941                 46,941         47,630                 47,630  
Total costs and expenses         313,996         (4,685 )       309,311         299,832         (5,220 )       294,612  
                                                               
Income from operations         72,857         4,685         77,542         78,403         3,855         82,258  
                                                               
Other income (expense):                                                              
Interest income         20                 20                          
Interest expense         (26,412 )               (26,412 )       (24,533 )               (24,533 )
Debt extinguishment expense                                 (9,192 )       9,192          
Deferred financing costs write-off                                 (2,271 )       2,271          
Foreign currency exchange         (29 )               (29 )       (9 )               (9 )
                                                               
Income before income tax provision         46,436         4,685         51,121         42,398         15,318         57,716  
                                                               
Income tax provision         16,279         1,777         18,056         14,619         5,892         20,511  
                                                               
Net income       $ 30,157       $ 2,908       $ 33,065       $ 27,779       $ 9,426       $ 37,205  
                                                               
EBITDA/Adjusted EBITDA       $ 119,789                 $ 129,179       $ 126,024                 $ 136,222  

EBITDA/Adjusted EBITDA as a percentage of
total revenues

        31.0 %                 33.4 %       33.3 %                 36.1 %
                                                               
Earnings per share:                                                              
Basic       $ 0.68                 $ 0.75       $ 0.63                 $ 0.84  
Diluted         0.68                   0.75         0.63                   0.84  
                                                               

Weighted average number of common and
common share equivalents outstanding:

                                                             
Basic         44,030                   44,030         44,170                   44,170  
Diluted         44,190                   44,190         44,431                   44,431  
 

(1) Adjusted column for the nine months ended September 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 nine-month period ended September 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 $2.5 million in rental, selling and general expenses to exclude costs related to severance and transition in conjunction with the departure of executives.
  • Exclusion of $2.1 million in costs related to the restructuring of our business operations.

(2) Adjusted column for the nine months ended September 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 nine-month period ended September 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 $5.2 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.
Operating Data
(Unaudited)
 
        2017       2016  
As of September 30:                      
Stand-alone Storage Solutions locations         122         125  
Stand-alone Tank & Pump Solutions locations         17         19  
Combined Storage Solutions and Tank & Pump Solutions locations         16         13  
Storage Solutions rental fleet units         214,900         208,000  
Tank & Pump Solutions rental fleet units         12,000         12,100  
                       
Average utilization - Three months ended September 30:                      
Storage Solutions - utilization based on number of units         71.8 %       70.5 %
Tank & Pump Solutions - utilization based on original equipment cost         66.6 %          
                       
Average utilization - Nine months ended September 30:                      
Storage Solutions - utilization based on number of units         70.1 %       69.1 %
Tank & Pump Solutions - utilization based on original equipment cost (1)         64.3 %          
 

(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 September 30, 2017       Three Months Ended September 30, 2016  
       

Storage
Solutions

     

Tank & Pump
Solutions

      Total      

Storage
Solutions

     

Tank & Pump
Solutions

      Total  
                                                               
Revenues:                                                              
Rental       $ 104,488       $ 23,207       $ 127,695       $ 97,678       $ 24,106       $ 121,784  
Sales         6,743         1,695         8,438         5,319         1,291         6,610  
Other         401         102         503         371         88         459  
Total revenues         111,632         25,004         136,636         103,368         25,485         128,853  
                                                               
Costs and expenses:                                                              
Rental, selling and general expenses         69,958         17,550         87,508         64,084         16,373         80,457  
Cost of sales         4,477         1,042         5,519         3,113         784         3,897  
Depreciation and amortization         9,836         6,099         15,935         9,100         7,084         16,184  
Total costs and expenses         84,271         24,691         108,962         76,297         24,241         100,538  
                                                               
Income from operations       $ 27,361       $ 313       $ 27,674       $ 27,071       $ 1,244       $ 28,315  
                                                               
Adjusted EBITDA       $ 39,052       $ 6,479       $ 45,531       $ 38,270       $ 8,380       $ 46,650  
Adjusted EBITDA Margin         35.0 %       25.9 %       33.3 %       37.0 %       32.9 %       36.2 %
 
 
 
        Nine Months Ended September 30, 2017       Nine Months Ended September 30, 2016  
       

Storage
Solutions

     

Tank & Pump
Solutions

      Total      

Storage
Solutions

     

Tank & Pump
Solutions

      Total  
                                                               
Revenues:                                                              
Rental       $ 293,780       $ 66,508       $ 360,288       $ 285,508       $ 70,405       $ 355,913  
Sales         20,763         4,054         24,817         15,734         4,109         19,843  
Other         1,418         330         1,748         884         230         1,114  
Total revenues         315,961         70,892         386,853         302,126         74,744         376,870  
                                                               
Costs and expenses:                                                              
Rental, selling and general expenses         195,928         50,403         246,331         187,792         47,004         234,796  
Cost of sales         13,808         2,231         16,039         9,568         2,618         12,186  
Depreciation and amortization         28,496         18,445         46,941         26,216         21,414         47,630  
Total costs and expenses         238,232         71,079         309,311         223,576         71,036         294,612  
                                                               
Income (loss) from operations       $ 77,729       $ (187 )     $ 77,542       $ 78,550       $ 3,708       $ 82,258  
                                                               
Adjusted EBITDA       $ 110,733       $ 18,446       $ 129,179       $ 110,900       $ 25,322       $ 136,222  
Adjusted EBITDA Margin         35.0 %       26.0 %       33.4 %       36.7 %       33.9 %       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)
 
        September 30,       December 31,  
        2017       2016  
        (unaudited)       (audited)  
ASSETS  
Cash and cash equivalents       $ 12,609       $ 4,137  
Receivables, net         100,810         99,175  
Inventories         17,013         15,412  
Rental fleet, net         983,288         950,065  
Property, plant and equipment, net         152,649         149,197  
Other assets         15,384         14,930  
Intangibles, net         63,624         68,420  
Goodwill         708,541         703,558  
Total assets       $ 2,053,918       $ 2,004,894  
                       
LIABILITIES AND STOCKHOLDERS' EQUITY  
Liabilities:                      
Accounts payable       $ 30,430       $ 27,388  
Accrued liabilities         71,541         64,126  
Lines of credit         640,879         641,160  
Obligations under capital leases         51,789         50,704  
Senior notes, net         245,691         245,212  
Deferred income taxes         238,067         240,690  
Total liabilities         1,278,397         1,269,280  
                       
Stockholders' equity:                      
Common stock         496         493  
Additional paid-in capital         602,772         592,071  
Retained earnings         381,294         362,896  
Accumulated other comprehensive loss         (61,882 )       (81,047 )
Treasury stock         (147,159 )       (138,799 )
Total stockholders' equity         775,521         735,614  
Total liabilities and stockholders' equity       $ 2,053,918       $ 2,004,894  
 
 
Mobile Mini, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(in thousands)
        Nine Months Ended  
        September 30,  
        2017       2016  
Cash flows from operating activities:                      
Net income       $ 30,157       $ 27,779  
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         3,176         4,290  
Amortization of deferred financing costs         1,545         1,457  
Amortization of long-term liabilities         98         87  
Share-based compensation expense         5,890         6,521  
Depreciation and amortization         46,941         47,630  
Gain on sale of rental fleet         (4,273 )       (4,228 )
Loss on disposal of property, plant and equipment         472         1,089  
Deferred income taxes         15,167         14,448  
Foreign currency exchange         29         9  

Changes in certain assets and liabilities, net of
effect of businesses acquired

        (3,370 )       (14,524 )
Net cash provided by operating activities         95,832         96,021  
                       
Cash flows from investing activities:                      
Cash paid for businesses acquired, net of cash acquired                 (9,206 )
Additions to rental fleet, excluding acquisitions         (45,945 )       (46,480 )
Proceeds from sale of rental fleet         9,602         10,770  
Additions to property, plant and equipment, excluding acquisitions         (12,816 )       (25,750 )
Proceeds from sale of property, plant and equipment         780         2,369  
Net cash used in investing activities         (48,379 )       (68,297 )
                       
Cash flows from financing activities:                      
Net repayments under lines of credit         (281 )       (16,171 )
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 )       (5,352 )
Principal payments on capital lease obligations         (5,526 )       (4,693 )
Issuance of common stock         4,685         356  
Dividend payments         (30,120 )       (27,327 )
Purchase of treasury stock         (8,359 )       (7,135 )
Net cash used in financing activities         (39,613 )       (19,514 )
                       
Effect of exchange rate changes on cash         632         (301 )
                       
Net change in cash         8,472         7,909  
                       
Cash and cash equivalents at beginning of period         4,137         1,613  
Cash and cash equivalents at end of period       $ 12,609       $ 9,522  
                       
Equipment and other acquired through capital lease obligations       $ 6,610       $ 18,951  
Capital expenditures accrued or payable         8,931         5,053  
   

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 and free cash flow 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

September 30,

     

Nine Months Ended

September 30,

 
        2017       2016       2017       2016  
Net income       $ 11,228       $ 12,709       $ 30,157       $ 27,779  
Interest expense         9,203        

8,047

        26,412         24,533  
Income tax provision         6,383         5,906         16,279         14,619  
Depreciation and amortization         15,935         16,184         46,941         47,630  
Debt extinguishment expense                                 9,192  
Deferred financing costs write-off                                 2,271  
EBITDA         42,749         42,846         119,789         126,024  
                                           
Share-based compensation expense         1,920         2,156         4,705         6,343  
Restructuring expenses         625         1,648         2,062         5,220  
Acquisition-related expenses         26                 123          
Sales tax refund                                 (1,365 )
Other         211                 2,500          
Adjusted EBITDA       $ 45,531       $ 46,650       $ 129,179       $ 136,222  
 
 
       

Three Months Ended

September 30,

     

Nine Months Ended

September 30,

 
        2017       2016       2017       2016  
Net cash provided by operating activities       $ 32,611       $ 31,311       $ 95,832       $ 96,021  
Interest paid         12,192         3,889         30,379         17,880  
Income and franchise taxes paid         213         229         1,313         1,380  
Share-based compensation expense         (2,070 )       (2,276 )       (5,890 )       (6,521 )
Gain on sale of rental fleet         1,447         1,446         4,273         4,228  

Loss on disposal of property, plant and
equipment

        (190 )       (400 )       (472 )       (1,089 )

Changes in certain assets and liabilities, net of
effect of businesses acquired

        (1,454 )       8,647         (5,646 )       14,125  
EBITDA       $ 42,749       $ 42,846       $ 119,789       $ 126,024  
 
 
Mobile Mini, Inc.
Free Cash Flow GAAP Reconciliation
(Unaudited)
(in thousands)
 
        Three Months Ended

September 30,

      Nine Months Ended

September 30,

 
        2017       2016       2017       2016  
Net cash provided by operating activities       $ 32,611       $ 31,311       $ 95,832       $ 96,021  
                                           
Additions to rental fleet, excluding acquisitions         (22,918 )       (18,322 )       (45,945 )       (46,480 )
Proceeds from sale of rental fleet         3,319         3,361         9,602         10,770  

Additions to property, plant and equipment,
excluding acquisitions

        (4,109 )       (6,487 )       (12,816 )       (25,750 )

Proceeds from sale of property, plant and
equipment

        12         754         780         2,369  
Net capital expenditures, excluding acquisitions         (23,696 )       (20,694 )       (48,379 )       (59,091 )
                                           
Free cash flow       $ 8,915       $ 10,617       $ 47,453       $ 36,930  
 

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.

Source: Mobile Mini, Inc.

Mobile Mini, Inc.
Van Welch, 602-308-3879
Executive VP & Chief Financial Officer
www.mobilemini.com
or
Investor Relations Counsel
The Equity Group Inc.
Fred Buonocore, 212-836-9607
Linda Latman, 212-836-9609