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Mobile Mini Reports Q3 2019 Results and Announces Quarterly Dividend

October 31, 2019

PHOENIX--(BUSINESS WIRE)--Oct. 31, 2019-- 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, 2019.

Total revenues were $153.5 million and rental revenues were $145.5 million for the third quarter of 2019, as compared to $149.7 million and $140.9 million, respectively, for the same period last year. Rental revenues for the Storage Solutions and Tank & Pump Solutions businesses for the current quarter were $116.8 million and $28.7 million, respectively, compared to $112.6 million and $28.3 million for the same period last year.

The Company realized net income of $22.6 million, or $0.51 per diluted share, in the third quarter of 2019. On an adjusted basis, third quarter net income was $24.0 million, or $0.54 per diluted share, as compared to adjusted net income of $19.1 million, or $0.42 per diluted share, for the third quarter of 2018. Adjusted EBITDA was $61.7 million and adjusted EBITDA margin was 40.2% for the third quarter of 2019.

Dividend

The Company’s Board of Directors declared a cash dividend of 27.5 cents per share, which will be paid on November 27, 2019 to shareholders of record as of November 13, 2019.

Third Quarter 2019 Highlights

  • Drove healthy year-over-year growth of 6.3% in North American Storage Solutions rental revenue.
  • Grew adjusted EBITDA 11.3%, year-over-year, and expanded adjusted EBITDA margin by 320 basis points to 40.2%, comprised of a 370 basis point year-over-year increase for North American Storage Solutions and a 320 basis point increase for Tank & Pump Solutions.
  • Raised North American Storage Solutions core (excluding seasonal) rates 4.2% year-over-year, with rates on newly placed units up 5.4%.
  • Achieved strong average OEC utilization rate of 77.5% for Storage Solutions.
  • Generated robust cash from operating activities of $51.3 million for the quarter and $151.9 million year-to-date, resulting in free cash flow of $37.1 million for the quarter and $92.0 million year-to-date, an increase of $44.0 million from the prior year-to-date period.
  • Further increased return on capital employed to 9.8% as of September 30, 2019, exceeding our weighted average cost of capital and a 170 basis point improvement from September 30, 2018.
  • Repurchased $18.4 million of shares under our authorized share repurchase program, $28.4 million year-to-date, while maintaining a leverage ratio of 3.8x as of September 30, 2019 compared to 4.2x as of December 31, 2018.
  • Completed one tuck-in acquisition in Tulsa, Oklahoma of a highly-utilized container provider.

CEO Comments

Kelly Williams, Mobile Mini’s President and Chief Executive Officer, remarked, “I am very pleased with the performance of Mobile Mini in the third quarter of 2019. Throughout the company, the processes we have implemented to drive efficiencies, combined with higher rental revenues, drove a $6.2 million, or 11.3%, increase in consolidated adjusted EBITDA, with an adjusted EBITDA margin in excess of our 40% Evergreen target, a notable achievement. The strong increase in profitability reflects top-line growth and margin expansion in both our North American segments. North American Storage Solutions rental revenues were up compared to the prior-year quarter by a healthy 6.3%, driven primarily by increased rates as well as favorable mix. Revenues in our Tank & Pump Solutions downstream business continued to grow year-over-year, despite a difficult comparison to a very strong prior-year quarter. The downstream market is now settling into more normalized activity.”

Mr. Williams continued, “Over the past several years we have transformed Mobile Mini into a significantly more efficient, scalable organization. The transformation includes substantial development of our technology capabilities and enhancements throughout our supply chain, including asset management. We are now better positioned than at any time in our Company’s history to drive profitable growth and generate shareholder value through the highly effective execution of our business strategy and the optimal deployment of capital. During the nine months ended September 30, 2019 we generated $92 million of free cash flow. This robust cash flow enables us to reinvest in the business, reduce our leverage ratio and return capital to our shareholders through dividends and opportunistic stock repurchases. In addition to organic growth in existing locations, we plan to drive multi-year growth for Mobile Mini both through acquisitions in our Storage Solutions business and greenfield expansion into attractive new geographic markets for both business segments. Importantly, we expect to continue to grow adjusted EBITDA and generate very strong free cash flow for the remainder of 2019 and into 2020.”

Conference Call

Mobile Mini will host a conference call later today, October 31st at 5 pm 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 Investor Relations 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 199,100 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 12,700 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 ability to grow our business with existing and new customers, as well as our ability to drive growth organically, through acquisitions and greenfield expansion as well as growing adjusted EBITDA and generate very strong free cash flow, 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, 2019

 

Three Months Ended September 30, 2018

 

 

Actual

 

Adjustments

 

Adjusted (1)

 

Actual

 

Adjustments

 

Adjusted (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental

$

145,519

 

$

 

$

145,519

 

$

140,924

 

$

 

$

140,924

 

Sales

 

7,887

 

 

 

 

7,887

 

 

8,716

 

 

 

 

8,716

 

Other

 

111

 

 

 

 

111

 

 

67

 

 

 

 

67

 

Total revenues

 

153,517

 

 

 

 

153,517

 

 

149,707

 

 

 

 

149,707

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental, selling and general expenses

 

91,399

 

 

(1,898

)

 

89,501

 

 

90,764

 

 

 

 

90,764

 

Cost of sales

 

4,838

 

 

 

 

4,838

 

 

5,770

 

 

 

 

5,770

 

Asset impairment charge and

loss on divestiture, net

 

 

 

 

 

 

 

98,278

 

 

(98,278

)

 

 

Depreciation and amortization

 

17,490

 

 

 

 

17,490

 

 

16,191

 

 

 

 

16,191

 

Total costs and expenses

 

113,727

 

 

(1,898

)

 

111,829

 

 

211,003

 

 

(98,278

)

 

112,725

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

39,790

 

 

1,898

 

 

41,688

 

 

(61,296

)

 

98,278

 

 

36,982

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

12

 

 

 

 

12

 

 

 

 

 

 

 

Interest expense

 

(10,393

)

 

 

 

(10,393

)

 

(10,487

)

 

 

 

(10,487

)

Foreign currency exchange

 

(13

)

 

 

 

(13

)

 

24

 

 

 

 

24

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income tax

provision (benefit)

 

29,396

 

 

1,898

 

 

31,294

 

 

(71,759

)

 

98,278

 

 

26,519

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision (benefit)

 

6,821

 

 

476

 

 

7,297

 

 

(19,594

)

 

27,010

 

 

7,416

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

22,575

 

$

1,422

 

$

23,997

 

$

(52,165

)

$

71,268

 

$

19,103

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA/Adjusted EBITDA

$

57,279

 

 

 

 

$

61,674

 

$

(45,081

)

 

 

 

$

55,427

 

EBITDA/Adjusted EBITDA as a percentage of

total revenues

 

37.3

%

 

 

 

 

40.2

%

 

-30.1

%

 

 

 

 

37.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.51

 

 

 

 

$

0.54

 

$

(1.18

)

 

 

 

$

0.43

 

Diluted

 

0.51

 

 

 

 

 

0.54

 

 

(1.18

)

 

 

 

 

0.42

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common and

common share equivalents outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

44,072

 

 

 

 

 

44,072

 

 

44,323

 

 

 

 

 

44,323

 

Diluted

 

44,316

 

 

 

 

 

44,316

 

 

44,323

 

 

 

 

 

45,098

 

(1)

Adjusted column for the three-month period ended September 30, 2019 reduces rental, selling and general expenses to exclude expenses of $1.9 million related to actual and potential acquisitions, along with the related tax effect 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.

 

(2)

Adjusted column for the three-month period 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.

Mobile Mini, Inc.

 

Condensed Consolidated Statements of Operations

 

(Unaudited)

 

(in thousands, except percentages and per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2019

 

 

Nine Months Ended September 30, 2018

 

 

 

Actual

 

 

Adjustments

 

 

Adjusted (1)

 

 

Actual

 

 

Adjustments

 

 

Adjusted (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental

 

$

429,597

 

 

$

 

 

$

429,597

 

 

$

406,149

 

 

$

 

 

$

406,149

 

Sales

 

 

23,245

 

 

 

 

 

 

23,245

 

 

 

25,700

 

 

 

 

 

 

25,700

 

Other

 

 

517

 

 

 

 

 

 

517

 

 

 

511

 

 

 

 

 

 

511

 

Total revenues

 

 

453,359

 

 

 

 

 

 

453,359

 

 

 

432,360

 

 

 

 

 

 

432,360

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental, selling and general expenses

 

 

279,368

 

 

 

(6,230

)

 

 

273,138

 

 

 

269,033

 

 

 

 

 

 

269,033

 

Cost of sales

 

 

14,484

 

 

 

 

 

 

14,484

 

 

 

16,925

 

 

 

 

 

 

16,925

 

Restructuring expenses

 

 

 

 

 

 

 

 

 

 

 

1,306

 

 

 

(1,306

)

 

 

 

Asset impairment charge and

loss on divestiture, net

 

 

 

 

 

 

 

 

 

 

 

98,278

 

 

 

(98,278

)

 

 

 

Depreciation and amortization

 

 

52,960

 

 

 

 

 

 

52,960

 

 

 

50,206

 

 

 

 

 

 

50,206

 

Total costs and expenses

 

 

346,812

 

 

 

(6,230

)

 

 

340,582

 

 

 

435,748

 

 

 

(99,584

)

 

 

336,164

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

 

106,547

 

 

 

6,230

 

 

 

112,777

 

 

 

(3,388

)

 

 

99,584

 

 

 

96,196

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

12

 

 

 

 

 

 

12

 

 

 

6

 

 

 

 

 

 

6

 

Interest expense

 

 

(31,745

)

 

 

 

 

 

(31,745

)

 

 

(30,179

)

 

 

 

 

 

(30,179

)

Deferred financing costs write-off

 

 

(123

)

 

 

123

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency exchange

 

 

(179

)

 

 

 

 

 

(179

)

 

 

69

 

 

 

 

 

 

69

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income tax

provision (benefit)

 

 

74,512

 

 

 

6,353

 

 

 

80,865

 

 

 

(33,492

)

 

 

99,584

 

 

 

66,092

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision (benefit)

 

 

19,794

 

 

 

693

 

 

 

20,487

 

 

 

(11,182

)

 

 

27,338

 

 

 

16,156

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

54,718

 

 

$

5,660

 

 

$

60,378

 

 

$

(22,310

)

 

$

72,246

 

 

$

49,936

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA/Adjusted EBITDA

 

$

159,340

 

 

 

 

 

 

$

174,811

 

 

$

46,893

 

 

 

 

 

 

$

153,980

 

EBITDA/Adjusted EBITDA as a percentage of

total revenues

 

 

35.1

%

 

 

 

 

 

 

38.6

%

 

 

10.8

%

 

 

 

 

 

 

35.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.23

 

 

 

 

 

 

$

1.36

 

 

$

(0.50

)

 

 

 

 

 

$

1.13

 

Diluted

 

 

1.23

 

 

 

 

 

 

 

1.35

 

 

 

(0.50

)

 

 

 

 

 

 

1.11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common and

common share equivalents outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

44,337

 

 

 

 

 

 

 

44,337

 

 

 

44,275

 

 

 

 

 

 

 

44,275

 

Diluted

 

 

44,646

 

 

 

 

 

 

 

44,646

 

 

 

44,275

 

 

 

 

 

 

 

45,011

(1)

Adjusted column for the nine-month period ended September 30, 2019 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, 2019 include the following, along with the related tax effects:

  • Reduction of rental, selling and general expenses to exclude $3.6 million of non-cash share-based compensation related to transition agreements for our Chief Executive Officer who retired as an employee of the Company and assumed the position of Chairman of the Board.
  • Reduction of rental, selling and general expenses to exclude $2.6 million of expenses related to actual and potential acquisitions, along with the related tax effect.
  • Exclusion of $0.1 million of deferred financing costs that were written off in conjunction with the amendment of our lines of credit.

 

(2)

Adjusted column for the nine-month period 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 $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.
 

Mobile Mini, Inc.

 

Operating Data

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

 

2018

 

As of September 30:

 

 

 

 

 

 

 

 

Stand-alone Storage Solutions locations

 

 

118

 

 

 

119

 

Stand-alone Tank & Pump Solutions locations

 

 

20

 

 

 

21

 

Combined Storage Solutions and Tank & Pump Solutions locations

 

 

17

 

 

 

17

 

Storage Solutions rental fleet units

 

 

199,100

 

 

 

194,300

 

Tank & Pump Solutions rental fleet units

 

 

12,700

 

 

 

12,600

 

 

 

 

 

 

 

 

 

 

Average utilization based on original equipment cost

 

 

 

 

 

 

 

 

Three months ended September 30:

 

 

 

 

 

 

 

 

Storage Solutions

 

 

77.5

%

 

 

76.9

%

Tank & Pump Solutions

 

 

68.3

%

 

 

72.2

%

Nine months ended September 30:

 

 

 

 

 

 

 

 

Storage Solutions

 

 

77.0

%

 

 

71.5

%

Tank & Pump Solutions

 

 

71.9

%

 

 

73.3

%

Mobile Mini, Inc.

 

Business Segment Information - Adjusted (1)

 

(Unaudited)

 

(in thousands, except percentages)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2019

 

 

Three Months Ended September 30, 2018

 

 

 

Storage
Solutions

 

 

Tank & Pump
Solutions

 

 

Total

 

 

Storage
Solutions

 

 

Tank & Pump
Solutions

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental

 

$

116,820

 

 

$

28,699

 

 

$

145,519

 

 

$

112,639

 

 

$

28,285

 

 

$

140,924

 

Sales

 

 

6,439

 

 

 

1,448

 

 

 

7,887

 

 

 

7,696

 

 

 

1,020

 

 

 

8,716

 

Other

 

 

75

 

 

 

36

 

 

 

111

 

 

 

40

 

 

 

27

 

 

 

67

 

Total revenues

 

 

123,334

 

 

 

30,183

 

 

 

153,517

 

 

 

120,375

 

 

 

29,332

 

 

 

149,707

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental, selling and general expenses

 

 

70,455

 

 

 

19,046

 

 

 

89,501

 

 

 

71,121

 

 

 

19,643

 

 

 

90,764

 

Cost of sales

 

 

4,048

 

 

 

790

 

 

 

4,838

 

 

 

5,226

 

 

 

544

 

 

 

5,770

 

Depreciation and amortization

 

 

10,576

 

 

 

6,914

 

 

 

17,490

 

 

 

9,758

 

 

 

6,433

 

 

 

16,191

 

Total costs and expenses

 

 

85,079

 

 

 

26,750

 

 

 

111,829

 

 

 

86,105

 

 

 

26,620

 

 

 

112,725

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

$

38,255

 

 

$

3,433

 

 

$

41,688

 

 

$

34,270

 

 

$

2,712

 

 

$

36,982

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

51,190

 

 

$

10,484

 

 

$

61,674

 

 

$

46,174

 

 

$

9,253

 

 

$

55,427

 

Adjusted EBITDA Margin

 

 

41.5

%

 

 

34.7

%

 

 

40.2

%

 

 

38.4

%

 

 

31.5

%

 

 

37.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2019

 

 

Nine Months Ended September 30, 2018

 

 

 

Storage
Solutions

 

 

Tank & Pump
Solutions

 

 

Total

 

 

Storage
Solutions

 

 

Tank & Pump
Solutions

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental

 

$

339,930

 

 

$

89,667

 

 

$

429,597

 

 

$

325,293

 

 

$

80,856

 

 

$

406,149

 

Sales

 

 

18,987

 

 

 

4,258

 

 

 

23,245

 

 

 

21,785

 

 

 

3,915

 

 

 

25,700

 

Other

 

 

363

 

 

 

154

 

 

 

517

 

 

 

399

 

 

 

112

 

 

 

511

 

Total revenues

 

 

359,280

 

 

 

94,079

 

 

 

453,359

 

 

 

347,477

 

 

 

84,883

 

 

 

432,360

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental, selling and general expenses

 

 

213,806

 

 

 

59,332

 

 

 

273,138

 

 

 

212,248

 

 

 

56,785

 

 

 

269,033

 

Cost of sales

 

 

12,134

 

 

 

2,350

 

 

 

14,484

 

 

 

14,695

 

 

 

2,230

 

 

 

16,925

 

Depreciation and amortization

 

 

32,237

 

 

 

20,723

 

 

 

52,960

 

 

 

31,398

 

 

 

18,808

 

 

 

50,206

 

Total costs and expenses

 

 

258,177

 

 

 

82,405

 

 

 

340,582

 

 

 

258,341

 

 

 

77,823

 

 

 

336,164

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

$

101,103

 

 

$

11,674

 

 

$

112,777

 

 

$

89,136

 

 

$

7,060

 

 

$

96,196

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

141,887

 

 

$

32,924

 

 

$

174,811

 

 

$

127,798

 

 

$

26,182

 

 

$

153,980

 

Adjusted EBITDA Margin

 

 

39.5

%

 

 

35.0

%

 

 

38.6

%

 

 

36.8

%

 

 

30.8

%

 

 

35.6

%

(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,
2019

 

 

December 31,
2018

 

 

 

 

 

 

 

 

(unaudited)

 

 

(audited)

 

ASSETS

 

Cash and cash equivalents

 

$

7,295

 

 

$

5,605

 

Receivables, net

 

 

106,847

 

 

 

130,233

 

Inventories

 

 

9,835

 

 

 

11,725

 

Rental fleet, net

 

 

953,331

 

 

 

929,090

 

Property, plant and equipment, net

 

 

150,479

 

 

 

154,254

 

Operating lease assets

 

 

95,489

 

 

 

 

Other assets

 

 

12,809

 

 

 

13,398

 

Intangibles, net

 

 

51,333

 

 

 

55,542

 

Goodwill

 

 

705,769

 

 

 

705,217

 

Total assets

 

$

2,093,187

 

 

$

2,005,064

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

Liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

30,167

 

 

$

33,177

 

Accrued liabilities

 

 

74,331

 

 

 

88,136

 

Operating lease liabilities

 

 

97,283

 

 

 

 

Lines of credit

 

 

584,000

 

 

 

593,495

 

Obligations under finance leases

 

 

67,648

 

 

 

63,359

 

Senior notes, net

 

 

246,967

 

 

 

246,489

 

Deferred income taxes

 

 

186,116

 

 

 

170,139

 

Total liabilities

 

 

1,286,512

 

 

 

1,194,795

 

 

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

 

 

Common stock

 

 

503

 

 

 

500

 

Additional paid-in capital

 

 

634,994

 

 

 

619,850

 

Retained earnings

 

 

428,398

 

 

 

410,641

 

Accumulated other comprehensive loss

 

 

(79,814

)

 

 

(72,861

)

Treasury stock

 

 

(177,406

)

 

 

(147,861

)

Total stockholders' equity

 

 

806,675

 

 

 

810,269

 

Total liabilities and stockholders' equity

$

2,093,187

$

2,005,064

 

Mobile Mini, Inc.

 

Condensed Consolidated Statements of Cash Flows

 

(Unaudited)

 

(in thousands)

 

 

 

Nine Months Ended
September 30,

 

 

 

 

 

 

2019

 

 

2018

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income (loss)

 

$

54,718

 

 

$

(22,310

)

Adjustments to reconcile net income (loss) to net cash

provided by operating activities:

 

 

 

 

 

 

 

 

Deferred financing costs write-off

 

 

123

 

 

 

 

Asset impairment charge and loss on divestiture, net

 

 

 

 

 

98,278

 

Provision for doubtful accounts

 

 

4,235

 

 

 

1,980

 

Amortization of deferred financing costs

 

 

1,383

 

 

 

1,545

 

Amortization of long-term liabilities

 

 

13

 

 

 

109

 

Share-based compensation expense

 

 

12,834

 

 

 

7,866

 

Depreciation and amortization

 

 

52,960

 

 

 

50,206

 

Gain on sale of rental fleet

 

 

(4,610

)

 

 

(4,523

)

Loss on disposal of property, plant and equipment

 

 

46

 

 

 

548

 

Deferred income taxes

 

 

15,855

 

 

 

(12,891

)

Foreign currency exchange

 

 

179

 

 

 

(69

)

Changes in certain assets and liabilities, net of

effect of businesses acquired

 

 

14,163

 

 

 

(4,519

)

Net cash provided by operating activities

 

 

151,899

 

 

 

116,220

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Cash paid for business acquired, net of cash acquired

 

 

(4,878

)

 

 

 

Proceeds from sale of assets held for sale

 

 

 

 

 

3,508

 

Additions to rental fleet, excluding acquisitions

 

 

(61,247

)

 

 

(65,620

)

Proceeds from sale of rental fleet

 

 

10,782

 

 

 

11,447

 

Additions to property, plant and equipment, excluding acquisitions

 

 

(9,917

)

 

 

(14,635

)

Proceeds from sale of property, plant and equipment

 

 

448

 

 

 

603

 

Net cash used in investing activities

 

 

(64,812

)

 

 

(64,697

)

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Net repayments under lines of credit

 

 

(9,494

)

 

 

(24,062

)

Deferred financing costs

 

 

(3,491

)

 

 

 

Principal payments on finance lease obligations

 

 

(8,167

)

 

 

(6,683

)

Issuance of common stock

 

 

2,314

 

 

 

3,617

 

Dividend payments

 

 

(36,864

)

 

 

(33,312

)

Purchase of treasury stock

 

 

(29,545

)

 

 

(668

)

Net cash used in financing activities

 

 

(85,247

)

 

 

(61,108

)

 

 

 

 

 

 

 

 

 

Effect of exchange rate changes on cash

 

 

(150

)

 

 

1,069

 

 

 

 

 

 

 

 

 

 

Net change in cash

 

 

1,690

 

 

 

(8,516

)

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at beginning of period

 

 

5,605

 

 

 

13,451

 

Cash and cash equivalents at end of period

 

$

7,295

 

 

$

4,935

 

 

 

 

 

 

 

 

 

 

Equipment and other acquired through finance lease obligations

 

$

12,455

 

 

$

15,746

 

Capital expenditures accrued or payable

 

 

5,110

 

 

 

9,774

 

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
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Net income (loss)

 

$

22,575

 

 

$

(52,165

)

 

$

54,718

 

 

$

(22,310

)

Interest expense

 

 

10,393

 

 

 

10,487

 

 

 

31,745

 

 

 

30,179

 

Income tax provision (benefit)

 

 

6,821

 

 

 

(19,594

)

 

 

19,794

 

 

 

(11,182

)

Depreciation and amortization

 

 

17,490

 

 

 

16,191

 

 

 

52,960

 

 

 

50,206

 

Deferred financing costs write-off

 

 

 

 

 

 

 

 

123

 

 

 

 

EBITDA

 

 

57,279

 

 

 

(45,081

)

 

 

159,340

 

 

 

46,893

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation expense

 

 

2,497

 

 

 

2,230

 

 

 

9,241

 

 

 

7,503

 

Restructuring expenses

 

 

 

 

 

 

 

 

 

 

 

1,306

 

Asset impairment charge and

loss on divestiture, net

 

 

 

 

 

98,278

 

 

 

 

 

 

98,278

 

Chief Executive Officer transition

 

 

 

 

 

 

 

 

3,593

 

 

 

 

Acquisition-related expenses

 

 

1,898

 

 

 

 

 

 

2,637

 

 

 

 

Adjusted EBITDA

 

$

61,674

 

 

$

55,427

 

 

$

174,811

 

 

$

153,980

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Net cash provided by operating activities

 

$

51,347

 

 

$

46,268

 

 

$

151,899

 

 

$

116,220

 

Interest paid

 

 

13,961

 

 

 

13,576

 

 

 

34,156

 

 

 

31,753

 

Income and franchise taxes paid

 

 

1,357

 

 

 

939

 

 

 

5,119

 

 

 

2,346

 

Share-based compensation expense,

including restructuring expense

 

 

(2,497

)

 

 

(2,230

)

 

 

(12,834

)

 

 

(7,866

)

Asset impairment charge and

loss on divestiture, net

 

 

 

 

 

(98,278

)

 

 

 

 

 

(98,278

)

Gain on sale of rental fleet

 

 

1,569

 

 

 

1,263

 

 

 

4,610

 

 

 

4,523

 

Gain (loss) on disposal of property, plant and

equipment

 

 

56

 

 

 

(71

)

 

 

(46

)

 

 

(548

)

Changes in certain assets and liabilities, net of

effect of businesses acquired

 

 

(8,514

)

 

 

(6,548

)

 

 

(23,564

)

 

 

(1,257

)

EBITDA

 

$

57,279

 

 

$

(45,081

)

 

$

159,340

 

 

$

46,893

 

Mobile Mini, Inc.

 

Free Cash Flow GAAP Reconciliation

 

(Unaudited)

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Net cash provided by operating activities

 

$

51,347

 

 

$

46,268

 

 

$

151,899

 

 

$

116,220

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additions to rental fleet, excluding acquisitions

 

 

(14,850

)

 

 

(27,144

)

 

 

(61,247

)

 

 

(65,620

)

Proceeds from sale of rental fleet

 

 

3,728

 

 

 

3,770

 

 

 

10,782

 

 

 

11,447

 

Additions to property, plant and equipment,

excluding acquisitions

 

 

(3,482

)

 

 

(5,554

)

 

 

(9,917

)

 

 

(14,635

)

Proceeds from sale of property, plant and

equipment

 

 

315

 

 

 

136

 

 

 

448

 

 

 

603

 

Net capital expenditures, excluding acquisitions

 

 

(14,289

)

 

 

(28,792

)

 

 

(59,934

)

 

 

(68,205

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Free cash flow

 

$

37,058

 

 

$

17,476

 

 

$

91,965

 

 

$

48,015

 

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 and adjusted EBITDA for the three months ended September 30, 2019 were $1.1 million and $0.4 million higher than when calculated in accordance with GAAP.

Source: Mobile Mini, Inc.

Van Welch, Executive VP &
Chief Financial Officer
Mobile Mini, Inc.
(602) 308-3879

Emily Tadano, Director of
Treasury & Investor Relations
(602) 845-4005
www.mobilemini.com
-or-
Investor Relations Counsel:
The Equity Group Inc.
Fred Buonocore (212) 836-9607
Mike Gaudreau (212) 836-9620