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Mobile Mini Reports Q3 2018 Results and Announces Quarterly Dividend

Posted on: 10/19/2018

PHOENIX--(BUSINESS WIRE)--Oct. 19, 2018-- 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, 2018. Highlights discussed below include year-over-year revenue growth of 9.6%, record fleet on rent in the Tank & Pump segment and margin expansion.

Total revenues were $149.7 million and rental revenues were $140.9 million, as compared to $136.6 million and $127.7 million, respectively, for the same period last year. Rental revenues for the Storage Solutions and Tank & Pump Solutions businesses for the current quarter were $112.6 million and $28.3 million, respectively, compared to $104.5 million and $23.2 million, respectively, for the same period last year.

As previously communicated, in July the Company decided to divest of certain underperforming assets. The classification of these assets as held for sale generated a non-cash charge, which was slightly offset by expected proceeds upon disposal. As a result, the Company realized a net loss of $52.2 million, or $1.18 per diluted share, in the third quarter of 2018. The net loss compares to net income of $11.2 million, or $0.25 per diluted share, for the third quarter of 2017. On an adjusted basis, third quarter net income was $19.1 million, or $0.42 per diluted share, as compared to adjusted net income of $11.8 million, or $0.27 per diluted share, for the third quarter of 2017. Adjusted EBITDA was $55.4 million and adjusted EBITDA margin was 37.0% for the third quarter of 2018.

Asset Divestiture

The Company is in the process of divesting the aforementioned underperforming assets. These assets have not generated meaningful revenue over the last several years and therefore this asset disposal should not affect Mobile Mini’s ability to generate revenue or to meet customer demand, nor is this divestiture expected to negatively affect liquidity or free cash flow on a go-forward basis. The $98.3 million loss on divestiture consisted of a non-cash loss of $106.2 million, net of estimated proceeds. Approximately 50% of the assets were divested in the third quarter, and the remaining assets are anticipated to be divested by December 31, 2018. The Company is expecting to generate annual operational savings of $5 million to $7 million over the course of the 12 months following the completion of the divestitures, along with $4 million of reduced depreciation expense.

Dividend

The Company’s Board of Directors declared a cash dividend of 25.0 cents per share, which will be paid on November 28, 2018 to shareholders of record on November 14, 2018.

Third Quarter 2018 Highlights

  • Continued strong rental revenue growth in Tank & Pump Solutions with a 21.9% year-over-year increase.
  • Delivered solid Storage Solutions rental revenue year-over-year growth of 7.8%.
  • Reached all-time high Tank & Pump Solutions’ OEC fleet on rent and drove average OEC utilization to 72.2% for the quarter, up 560 bps compared to the prior-year quarter.
  • Increased total Storage Solutions average units on rent by 2.6% year-over-year, with utilization of 84.3% as of September 30, 2018.
  • Raised Storage Solutions rental rates by 2.4% year-over-year, with rates on new rentals up 2.3%.
  • Expanded adjusted EBITDA margin by 370 basis points to 37.0% and achieved adjusted EBITDA growth of 21.7%, compared to the prior-year quarter.
  • Generated strong net cash from operating activities of $46.3 million and free cash flow of $17.5 million.

CEO Comments

Erik Olsson, Mobile Mini’s President and Chief Executive Officer, remarked, “Third quarter results demonstrate that the processes and infrastructure that we have put in place are producing the operational efficiencies and financial results we expected. Our sales strategies continued to drive solid rental revenue growth of 10.4% during the quarter. We converted this top-line growth into 21.7% year-over-year adjusted EBITDA growth and expanded our adjusted EBITDA margin 370 basis points to 37.0% for the third quarter of 2018. This very strong profitability further resulted in $17.5 million of free cash flow.”

Mr. Olsson continued, “Rental revenues for our North American Storage Solutions segment grew 9.5% compared to the prior-year quarter and we believe that our seasonal business will be at similarly strong levels as last year. In our Tank & Pump Solutions business we have begun to see meaningful revenues generated on contracts that we won in late 2017 and early 2018 and we expect increased turnaround activity in the fourth quarter. The pipeline in North America looks healthy and economic indicators are positive, while activity in the U.K. is stable, with increases in rate offsetting a slight decrease in units on rent. For the full year 2018 we anticipate consolidated double-digit revenue growth as compared to 2017, outpacing our Evergreen model, leading to continued strong increases in adjusted EBITDA and free cash flow generation and a decreased leverage ratio.”

Conference Call

Mobile Mini will host a conference call today, Friday, October 19 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 194,300 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 12,600 units. Mobile Mini’s network is comprised of 157 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, expected operational savings from the asset disposal, our ability to generate revenue or to meet customer demand despite the disposal, the continued growth of revenue, adjusted EBITDA, and free cash flow, our ability to decrease our leverage ratio, expected levels of seasonal business from our North American Storage Solutions business, and the level of turn around activity of our Tank & Pump Solutions business, all of 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 Operations  
(Unaudited)  
(in thousands, except percentages and per share data)  
                                                 
    Three Months Ended September 30, 2018     Three Months Ended September 30, 2017  
    Actual     Adjustments     Adjusted (1)     Actual     Adjustments     Adjusted (2)  
                                                 
Revenues:                                                
Rental   $ 140,924     $     $ 140,924     $ 127,695     $     $ 127,695  
Sales     8,716             8,716       8,438             8,438  
Other     67             67       503             503  
Total revenues     149,707             149,707       136,636             136,636  
                                                 
Costs and expenses:                                                
Rental, selling and general expenses     90,764             90,764       87,745       (237 )     87,508  
Cost of sales     5,770             5,770       5,519             5,519  
Restructuring expenses                       625       (625 )      
Asset impairment charge and

loss on divestiture, net

    98,278       (98,278 )                        
Depreciation and amortization     16,191             16,191       15,935             15,935  
Total costs and expenses     211,003       (98,278 )     112,725       109,824       (862 )     108,962  
                                                 
(Loss) income from operations     (61,296 )     98,278       36,982       26,812       862       27,674  
                                                 
Other income (expense):                                                
Interest income                       4             4  
Interest expense     (10,487 )           (10,487 )     (9,203 )           (9,203 )
Foreign currency exchange     24             24       (2 )           (2 )
                                                 
(Loss) income before income tax provision     (71,759 )     98,278       26,519       17,611       862       18,473  
                                                 
Income tax (benefit) provision     (19,594 )     27,010       7,416       6,383       327       6,710  
                                                 
Net (loss) income   $ (52,165 )   $ 71,268     $ 19,103     $ 11,228     $ 535     $ 11,763  
                                                 
EBITDA/Adjusted EBITDA   $ (45,081 )           $ 55,427     $ 42,749             $ 45,531  
EBITDA/Adjusted EBITDA as a percentage of

total revenues

    -30.1 %             37.0 %     31.3 %             33.3 %
                                                 
Earnings per share:                                                
Basic   $ (1.18 )           $ 0.43     $ 0.25             $ 0.27  
Diluted     (1.18 )             0.42       0.25               0.27  
                                                 
Weighted average number of common and

common share equivalents outstanding:

                                               
Basic     44,323               44,323       44,039               44,039  
Diluted     44,323               45,098       44,206               44,206  
(1)   Adjusted column for the three months ended September 30, 2018 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, 2018 include the following, along with the related tax effects:
   

 • Exclusion of an asset impairment charge and loss on divestiture, net of proceeds of $98.3 million related to assets that the Company placed as held for sale during the quarter.

   

 • Exclusion of $2.6 million in income tax benefit resulting from the reversal in the quarter of a provisional tax expense related to the repatriation of foreign earnings for the impact of the U.S. federal tax reform enacted in the fourth quarter of 2017.

(2)   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 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 in conjunction with the departure of an executive.

   

 • Exclusion of costs of $0.6 million related to the restructuring of our business operations.

   
Mobile Mini, Inc.  
Condensed Consolidated Statements of Operations  
(Unaudited)  
(in thousands, except percentages and per share data)  
                                                 
    Nine Months Ended September 30, 2018     Nine Months Ended September 30, 2017  
    Actual     Adjustments     Adjusted (1)     Actual     Adjustments     Adjusted (2)  
                                                 
Revenues:                                                
Rental   $ 406,149     $     $ 406,149     $ 360,288     $     $ 360,288  
Sales     25,700             25,700       24,817             24,817  
Other     511             511       1,748             1,748  
Total revenues     432,360             432,360       386,853             386,853  
                                                 
Costs and expenses:                                                
Rental, selling and general expenses     269,033             269,033       248,954       (2,623 )     246,331  
Cost of sales     16,925             16,925       16,039             16,039  
Restructuring expenses     1,306       (1,306 )           2,062       (2,062 )      
Asset impairment charge and

loss on divestiture, net

    98,278       (98,278 )                        
Depreciation and amortization     50,206             50,206       46,941             46,941  
Total costs and expenses     435,748       (99,584 )     336,164       313,996       (4,685 )     309,311  
                                                 
(Loss) income from operations     (3,388 )     99,584       96,196       72,857       4,685       77,542  
                                                 
Other income (expense):                                                
Interest income     6             6       20             20  
Interest expense     (30,179 )           (30,179 )     (26,412 )           (26,412 )
Foreign currency exchange     69             69       (29 )           (29 )
                                                 
(Loss) income before income tax provision     (33,492 )     99,584       66,092       46,436       4,685       51,121  
                                                 
Income tax (benefit) provision     (11,182 )     27,338       16,156       16,279       1,777       18,056  
                                                 
Net (loss) income   $ (22,310 )   $ 72,246     $ 49,936     $ 30,157     $ 2,908     $ 33,065  
                                                 
EBITDA/Adjusted EBITDA   $ 46,893             $ 153,980     $ 119,789             $ 129,179  
EBITDA/Adjusted EBITDA as a percentage of

total revenues

    10.8 %             35.6 %     31.0 %             33.4 %
                                                 
Earnings per share:                                                
Basic   $ (0.50 )           $ 1.13     $ 0.68             $ 0.75  
Diluted     (0.50 )             1.11       0.68               0.75  
                                                 
Weighted average number of common and

common share equivalents outstanding:

                                               
Basic     44,275               44,275       44,030               44,030  
Diluted     44,275               45,011       44,190               44,190  
(1)   Adjusted column for the nine months ended September 30, 2018 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, 2018 include the following, along with the related tax effects:

 

 

 • Exclusion of costs of $1.3 million related to the restructuring of our business operations.

 

 

 • Exclusion of an asset impairment charge and loss on divestiture, net of proceeds of $98.3 million related to assets that the Company placed as held for sale during the period.

 

 

 • Exclusion of $2.6 million in income tax benefit resulting from the reversal in the period of a provisional tax expense related to the repatriation of foreign earnings for the impact of the U.S. federal tax reform enacted in the fourth quarter of 2017.

(2)   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 to exclude 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 costs of $2.1 million related to the restructuring of our business operations.

   
Mobile Mini, Inc.  
Operating Data  
(Unaudited)  
                 
       
    2018     2017  
As of September 30:                
Stand-alone Storage Solutions locations     119       122  
Stand-alone Tank & Pump Solutions locations     21       17  
Combined Storage Solutions and Tank & Pump Solutions locations     17       16  
Storage Solutions rental fleet units     194,300       214,900  
Tank & Pump Solutions rental fleet units     12,600       12,000  
                 
Average utilization - Three months ended September 30:                
Storage Solutions - utilization based on number of units     77.9 %     71.8 %
Tank & Pump Solutions - utilization based on original equipment cost     72.2 %     66.6 %
                 
Average utilization - Nine months ended September 30:                
Storage Solutions - utilization based on number of units     73.0 %     70.1 %
Tank & Pump Solutions - utilization based on original equipment cost     73.3 %     64.3 %
                 
Mobile Mini, Inc.  
Business Segment Information - Adjusted (1)  
(Unaudited)  
(in thousands, except percentages)  
                                                 
    Three Months Ended September 30, 2018     Three Months Ended September 30, 2017  
   

Storage
Solutions

   

Tank & Pump
Solutions

    Total    

Storage
Solutions

   

Tank & Pump
Solutions

    Total  
                                                 
Revenues:                                                
Rental   $ 112,639     $ 28,285     $ 140,924     $ 104,488     $ 23,207     $ 127,695  
Sales     7,696       1,020       8,716       6,743       1,695       8,438  
Other     40       27       67       401       102       503  
Total revenues     120,375       29,332       149,707       111,632       25,004       136,636  
                                                 
Costs and expenses:                                                
Rental, selling and general expenses     71,121       19,643       90,764       69,958       17,550       87,508  
Cost of sales     5,226       544       5,770       4,477       1,042       5,519  
Depreciation and amortization     9,758       6,433       16,191       9,836       6,099       15,935  
Total costs and expenses     86,105       26,620       112,725       84,271       24,691       108,962  
                                                 
Income from operations   $ 34,270     $ 2,712     $ 36,982     $ 27,361     $ 313     $ 27,674  
                                                 
Adjusted EBITDA   $ 46,174     $ 9,253     $ 55,427     $ 39,052     $ 6,479     $ 45,531  
Adjusted EBITDA Margin     38.4 %     31.5 %     37.0 %     35.0 %     25.9 %     33.3 %
                                                 
                                                 
                                                 
    Nine Months Ended September 30, 2018     Nine Months Ended September 30, 2017  
   

Storage
Solutions

   

Tank & Pump
Solutions

    Total    

Storage
Solutions

   

Tank & Pump
Solutions

    Total  
                                                 
Revenues:                                                
Rental   $ 325,293     $ 80,856     $ 406,149     $ 293,780     $ 66,508     $ 360,288  
Sales     21,785       3,915       25,700       20,763       4,054       24,817  
Other     399       112       511       1,418       330       1,748  
Total revenues     347,477       84,883       432,360       315,961       70,892       386,853  
                                                 
Costs and expenses:                                                
Rental, selling and general expenses     212,248       56,785       269,033       195,928       50,403       246,331  
Cost of sales     14,695       2,230       16,925       13,808       2,231       16,039  
Depreciation and amortization     31,398       18,808       50,206       28,496       18,445       46,941  
Total costs and expenses     258,341       77,823       336,164       238,232       71,079       309,311  
                                                 
Income (loss) from operations   $ 89,136     $ 7,060     $ 96,196     $ 77,729     $ (187 )   $ 77,542  
                                                 
Adjusted EBITDA   $ 127,798     $ 26,182     $ 153,980     $ 110,733     $ 18,446     $ 129,179  
Adjusted EBITDA Margin     36.8 %     30.8 %     35.6 %     35.0 %     26.0 %     33.4 %
                                                 
(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,  
    2018     2017  
    (unaudited)     (audited)  
ASSETS  
Cash and cash equivalents   $ 4,935     $ 13,451  
Receivables, net     118,101       111,562  
Inventories     13,444       15,671  
Rental fleet, net     925,956       989,154  
Property, plant and equipment, net     155,621       157,304  
Other assets     17,586       15,334  
Intangibles, net     57,164       62,024  
Goodwill     706,768       708,907  
Total assets   $ 1,999,575     $ 2,073,407  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY  
Liabilities:                
Accounts payable   $ 32,610     $ 26,955  
Accrued liabilities     80,114       78,084  
Lines of credit     610,223       634,285  
Obligations under capital leases     61,853       52,791  
Senior notes, net     246,329       245,850  
Deferred income taxes     158,758       173,754  
Total liabilities     1,189,887       1,211,719  
                 
Stockholders' equity:                
Common stock     500       497  
Additional paid-in capital     616,850       605,369  
Retained earnings     407,559       463,322  
Accumulated other comprehensive loss     (67,387 )     (60,334 )
Treasury stock     (147,834 )     (147,166 )
Total stockholders' equity     809,688       861,688  
Total liabilities and stockholders' equity   $ 1,999,575     $ 2,073,407  
                 
   
Mobile Mini, Inc.  
Condensed Consolidated Statements of Cash Flows  
(Unaudited)  
(in thousands)  
      Nine Months Ended  
      September 30,  
      2018       2017  
Cash flows from operating activities:                    
Net (loss) income     $ (22,310 )     $ 30,157  
Adjustments to reconcile net (loss) income to net cash

provided by operating activities:

                   
Asset impairment charge and loss on divestiture, net       98,278          
Provision for doubtful accounts       1,980         3,176  
Amortization of deferred financing costs       1,545         1,545  
Amortization of long-term liabilities       109         98  
Share-based compensation expense       7,866         5,890  
Depreciation and amortization       50,206         46,941  
Gain on sale of rental fleet       (4,523 )       (4,273 )
Loss on disposal of property, plant and equipment       548         472  
Deferred income taxes       (12,891 )       15,167  
Foreign currency exchange       (69 )       29  
Changes in certain assets and liabilities, net of

effect of businesses acquired

      (4,519 )       (3,370 )
Net cash provided by operating activities       116,220         95,832  
                     
Cash flows from investing activities:                    
Proceeds from sale of assets held for sale       3,508          
Additions to rental fleet, excluding acquisitions       (65,620 )       (45,945 )
Proceeds from sale of rental fleet       11,447         9,602  
Additions to property, plant and equipment, excluding acquisitions       (14,635 )       (12,816 )
Proceeds from sale of property, plant and equipment       603         780  
Net cash used in investing activities       (64,697 )       (48,379 )
                     
Cash flows from financing activities:                    
Net repayments under lines of credit       (24,062 )       (281 )
Deferred financing costs               (12 )
Principal payments on capital lease obligations       (6,683 )       (5,526 )
Issuance of common stock       3,617         4,685  
Dividend payments       (33,312 )       (30,120 )
Purchase of treasury stock       (668 )       (8,359 )
Net cash used in financing activities       (61,108 )       (39,613 )
                     
Effect of exchange rate changes on cash       1,069         632  
                     
Net change in cash       (8,516 )       8,472  
                     
Cash and cash equivalents at beginning of period       13,451         4,137  
Cash and cash equivalents at end of period     $ 4,935       $ 12,609  
                     
Equipment and other acquired through capital lease obligations     $ 15,746       $ 6,610  
Capital expenditures accrued or payable       9,774         8,931  
                     

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,

 
      2018       2017       2018       2017  
Net (loss) income     $ (52,165 )     $ 11,228       $ (22,310 )     $ 30,157  
Interest expense       10,487         9,203         30,179         26,412  
Income tax (benefit) provision       (19,594 )       6,383         (11,182 )       16,279  
Depreciation and amortization       16,191         15,935         50,206         46,941  
EBITDA       (45,081 )       42,749         46,893         119,789  
                                         
Share-based compensation expense       2,230         1,920         7,503         4,705  
Restructuring expenses               625         1,306         2,062  
Asset impairment charge and loss on divestiture, net       98,278                 98,278          
Acquisition-related expenses               26                 123  
Other               211                 2,500  
Adjusted EBITDA     $ 55,427       $ 45,531       $ 153,980       $ 129,179  
                                         
                                         
      Three Months Ended

September 30,

      Nine Months Ended

September 30,

 
      2018       2017       2018       2017  
Net cash provided by operating activities     $ 46,268       $ 32,611       $ 116,220       $ 95,832  
Interest paid       13,576         12,192         31,753         30,379  
Income and franchise taxes paid       939         213         2,346         1,313  
Share-based compensation expense,

including restructuring expense

      (2,230 )       (2,070 )       (7,866 )       (5,890 )
Asset impairment charge and loss on divestiture, net       (98,278 )               (98,278 )        
Gain on sale of rental fleet       1,263         1,447         4,523         4,273  
Loss on disposal of property, plant and

equipment

      (71 )       (190 )       (548 )       (472 )
Changes in certain assets and liabilities, net of

effect of businesses acquired

      (6,548 )       (1,454 )       (1,257 )       (5,646 )
EBITDA     $ (45,081 )     $ 42,749       $ 46,893       $ 119,789  
                                         
   
Mobile Mini, Inc.  
Free Cash Flow GAAP Reconciliation  
(Unaudited)  
(in thousands)  
                                         
      Three Months Ended

September 30,

      Nine Months Ended

September 30,

 
      2018       2017       2018       2017  
Net cash provided by operating activities     $ 46,268       $ 32,611       $ 116,220       $ 95,832  
                                         
Additions to rental fleet, excluding acquisitions       (27,144 )       (22,918 )       (65,620 )       (45,945 )
Proceeds from sale of rental fleet       3,770         3,319         11,447         9,602  
Additions to property, plant and equipment,

excluding acquisitions

      (5,554 )       (4,109 )       (14,635 )       (12,816 )
Proceeds from sale of property, plant and

equipment

      136         12         603         780  
Net capital expenditures, excluding acquisitions       (28,792 )       (23,696 )       (68,205 )       (48,379 )
                                         
Free cash flow     $ 17,476       $ 8,915       $ 48,015       $ 47,453  
                                         

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
Kevin Towle, 212-836-9620

 

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