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Mobile Mini Reports Q4 2018 Results and Announces Quarterly Dividend

February 1, 2019

PHOENIX--(BUSINESS WIRE)--Feb. 1, 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 December 31, 2018.

Total revenues were $160.9 million and rental revenues were $152.0 million, as compared to $146.7 million and $138.5 million, respectively, for the same period last year. Rental revenues for the Storage Solutions and Tank & Pump Solutions businesses for the current quarter were $122.2 million and $29.9 million, respectively, compared to $112.8 million and $25.7 million, respectively, for the same period last year.

The Company realized net income of $14.2 million, or $0.32 per diluted share, in the fourth quarter of 2018. On an adjusted basis, fourth quarter net income was $23.7 million, or $0.53 per diluted share, as compared to adjusted net income of $18.1 million, or $0.41 per diluted share, for the fourth quarter of 2017. Adjusted EBITDA was $63.3 million and adjusted EBITDA margin was 39.3% for the fourth quarter of 2018.

Dividend

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

Fourth Quarter 2018 Highlights

  • Continued strong rental revenue growth in Tank & Pump Solutions (“T&P”) with a 16.1% year-over-year increase.
  • Delivered solid Storage Solutions (“SS”) rental revenue year-over-year growth of 8.3%, with record high seasonal business.
  • Reached all-time high T&P OEC fleet on rent and drove average OEC utilization to 76.0% for the quarter, up 300 bps compared to the prior-year quarter.
  • Increased total SS average units on rent by 2.7% year-over-year, with average unit utilization of 85.2% during the quarter.
  • Raised SS core (excluding seasonal) rental rates in North America by 3.4%.
  • Achieved adjusted EBITDA growth of 13.7%, compared to the prior-year quarter and expanded adjusted EBITDA margin by 140 basis points to 39.3%.
  • Generated robust net cash from operating activities of $43.9 million and free cash flow of $24.9 million.
  • Decreased our leverage ratio to 4.2x at December 31, 2018 from 5.0x December 31, 2017, as a result of both reduced debt and increased adjusted EBITDA.

CEO Comments

Erik Olsson, Mobile Mini’s Chief Executive Officer, remarked, “Fourth quarter 2018 results are the culmination of an exceptional year for Mobile Mini. Consolidated rental revenues were up 9.8% year-over-year, despite increasingly challenging comparisons. Seasonal rentals in North America exceeded the record-breaking numbers from the prior-year, contributing to rental revenue growth of 8.3% year-over year for consolidated Storage Solutions. Tank & Pump Solutions delivered growth of 16.1% by capitalizing on the wide-spread momentum in our customer end-segments and our exceptional overall service. By leveraging our infrastructure and efficiencies, we converted this robust top-line growth into increased profitability. Our adjusted EBITDA margin grew to 39.3% and we achieved $63.3 million in adjusted EBITDA, an increase of 13.7%, resulting in very strong free cash flow of $24.9 million for the fourth quarter of 2018.”

Mr. Olsson continued, “In 2018, we executed on our strategic plan and delivered outstanding results. Mobile Mini enters 2019 a financially stronger and more efficient company than ever before. We are committed to further differentiating Mobile Mini from our competitors by partnering with our customers to develop innovative solutions to their rental needs and striving to continuously improve processes throughout the Company. In North America, our Storage Solutions pending orders are significantly up compared to a year ago and our Tank & Pump business is positioned to capitalize on the strong demand from its end-markets. In the United Kingdom, where Brexit is causing some uncertainty in the general economy, our business has remained stable. Overall, our pipeline is healthy across all segments and economic indicators are solid. For 2019, we expect continued margin expansion as well as meaningful de-leveraging and we expect to exceed our Evergreen model for rental revenue growth.”

Conference Call

Mobile Mini will host a conference call today, Friday, February 1 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 195,600 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 154 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 generate continued margin expansion and growth of revenue, adjusted EBITDA, and free cash flow, as well as our ability to decrease our leverage ratio, 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 December 31, 2018 Three Months Ended December 31, 2017
Actual Adjustments Adjusted (1) Actual Adjustments Adjusted (2)
 
Revenues:
Rental $ 152,048 $ $ 152,048 $ 138,537 $ $ 138,537
Sales 8,654 8,654 7,623 7,623
Other   167     167   536     536
Total revenues   160,869     160,869   146,696     146,696
 
Costs and expenses:
Rental, selling and general expenses 95,090 95,090 87,484 87,484
Cost of sales 5,512 5,512 4,962 4,962
Restructuring expenses 700 (700 ) 824 (824 )
Asset impairment charge and

loss on divestiture, net

3,862 (3,862 )
Depreciation and amortization   16,794     16,794   16,431     16,431
Total costs and expenses   121,958   (4,562 )   117,396   109,701   (824 )   108,877
 
Income from operations 38,911 4,562 43,473 36,995 824 37,819
 
Other income (expense):
Interest income 5 5
Interest expense (10,725 ) (10,725 ) (9,316 ) (9,316 )
Foreign currency exchange   (5 )     (5 )   4     4
 
Income before income tax provision (benefit) 28,181 4,562 32,743 27,688 824 28,512
 
Income tax provision (benefit) 13,933 (4,863 ) 9,070 (64,383 ) 74,827 10,444
                       
Net income $ 14,248 $ 9,425 $ 23,673 $ 92,071 $ (74,003 ) $ 18,068
 
EBITDA/Adjusted EBITDA $ 55,700 $ 63,263 $ 53,435 $ 55,624
EBITDA/Adjusted EBITDA as a percentage of

total revenues

34.6 % 39.3 % 36.4 % 37.9 %
 
Earnings per share:
Basic $ 0.32 $ 0.53 $ 2.09 $ 0.41
Diluted 0.32 0.53 2.07 0.41
 
Weighted average number of common and

common share equivalents outstanding:

Basic 44,353 44,353 44,128 44,128
Diluted 44,885 44,885 44,444 44,444
(1)   Adjusted column for the three months ended December 31, 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 December 31, 2018 include the following:
• Exclusion of costs of $0.7 million related to the restructuring of our business operations, along with the related tax effects.
• Exclusion of an asset impairment charge and loss on divestiture, net of proceeds, of $3.9 million related to assets that the Company placed as held for sale during the quarter, along with the related tax effects.
• Exclusion of $5.8 million in income tax provision resulting from an out-of-period adjustment recorded in the fourth quarter of 2018 to correct deferred tax assets that had been established in previous years.
(2) Adjusted column for the three months ended December 31, 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 December 31, 2017 include the following:
• Exclusion of costs of $0.8 million related to the restructuring of our business operations, along with the related tax effects.
• Exclusion of $74.5 million in income tax benefit resulting from the Tax Cuts and Jobs Act (the “Tax Act”).
 
Mobile Mini, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(in thousands, except percentages and per share data)
                       
Twelve Months Ended December 31, 2018 Twelve Months Ended December 31, 2017
Actual Adjustments Adjusted (1) Actual Adjustments Adjusted (2)
 
Revenues:
Rental $ 558,197 $ $ 558,197 $ 498,825 $ $ 498,825
Sales 34,354 34,354 32,440 32,440
Other   678     678   2,284     2,284
Total revenues   593,229     593,229   533,549     533,549
 
Costs and expenses:
Rental, selling and general expenses 364,123 364,123 336,438 (2,623 ) 333,815
Cost of sales 22,437 22,437 21,001 21,001
Restructuring expenses 2,006 (2,006 ) 2,886 (2,886 )
Asset impairment charge and

loss on divestiture, net

102,140 (102,140 )
Depreciation and amortization   67,000     67,000   63,372     63,372
Total costs and expenses   557,706   (104,146 )   453,560   423,697   (5,509 )   418,188
 
Income from operations 35,523 104,146 139,669 109,852 5,509 115,361
 
Other income (expense):
Interest income 6 6 25 25
Interest expense (40,904 ) (40,904 ) (35,728 ) (35,728 )
Foreign currency exchange   64     64   (25 )     (25 )
 
(Loss) income before income tax

provision (benefit)

(5,311 ) 104,146 98,835 74,124 5,509 79,633
 
Income tax provision (benefit) 2,751 22,475 25,226 (48,104 ) 76,604 28,500
                       
Net (loss) income $ (8,062 ) $ 81,671 $ 73,609 $ 122,228 $ (71,095 ) $ 51,133
 
EBITDA/Adjusted EBITDA $ 102,593 $ 217,243 $ 173,224 $ 184,803
EBITDA/Adjusted EBITDA as a percentage of

total revenues

17.3 % 36.6 % 32.5 % 34.6 %
 
(Loss) earnings per share:
Basic $ (0.18 ) $ 1.66 $ 2.77 $ 1.16
Diluted (0.18 ) 1.64 2.76 1.16
 
Weighted average number of common and

common share equivalents outstanding:

Basic 44,295 44,295 44,055 44,055
Diluted 44,295 44,980 44,254 44,254
(1)   Adjusted column for the twelve months ended December 31, 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 twelve-month period ended December 31, 2018 include the following:

• Exclusion of costs of $2.0 million related to the restructuring of our business operations, along with the related tax effects.

• Exclusion of an asset impairment charge and loss on divestiture, net of proceeds, of $102.1 million related to assets that the Company placed as held for sale during the period, along with the related tax effects.

• 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.

• Exclusion of $5.8 million in income tax provision resulting from an out-of-period adjustment recorded in the fourth quarter of 2018 to correct deferred tax assets that had been established in previous years.

(2) Adjusted column for the twelve months ended December 31, 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 twelve-month period ended December 31, 2017 include the following:

• Reduction of $0.1 million in rental, selling and general expenses for acquisition-related expenses, along with the related tax effects.

• 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, along with the related tax effects.

• Exclusion of $2.9 million in costs related to the restructuring of our business operations, along with the related tax effects.

• Exclusion of $74.5 million in income tax benefit resulting from the Tax Act.

 
 
Mobile Mini, Inc.
Operating Data
(Unaudited)
         
 
2018   2017
As of December 31:
Stand-alone Storage Solutions locations 117 121
Stand-alone Tank & Pump Solutions locations 20 17
Combined Storage Solutions and Tank & Pump Solutions locations 17 16
Storage Solutions rental fleet units 195,600 215,000
Tank & Pump Solutions rental fleet units 12,600 12,100
 
Average utilization - Three months ended December 31:
Storage Solutions - utilization based on number of units 85.2 % 75.7 %
Tank & Pump Solutions - utilization based on original equipment cost 76.0 % 73.0 %
 
Average utilization - Twelve months ended December 31:
Storage Solutions - utilization based on number of units 75.9 % 71.5 %
Tank & Pump Solutions - utilization based on original equipment cost 74.0 % 66.5 %
 
Mobile Mini, Inc.
Business Segment Information - Adjusted (1)
(Unaudited)
(in thousands, except percentages)
                       
Three Months Ended December 31, 2018 Three Months Ended December 31, 2017

Storage
Solutions

Tank & Pump
Solutions

Total

Storage
Solutions

Tank & Pump
Solutions

Total
 
Revenues:
Rental $ 122,171 $ 29,877 $ 152,048 $ 112,810 $ 25,727 $ 138,537
Sales 7,247 1,407 8,654 6,226 1,397 7,623
Other   129   38   167   457   79   536
Total revenues   129,547   31,322   160,869   119,493   27,203   146,696
 
Costs and expenses:
Rental, selling and general expenses 75,400 19,690 95,090 69,462 18,022 87,484
Cost of sales 4,744 768 5,512 4,122 840 4,962
Depreciation and amortization   10,084   6,710   16,794   10,296   6,135   16,431
Total costs and expenses   90,228   27,168   117,396   83,880   24,997   108,877
 
Income from operations $ 39,319 $ 4,154 $ 43,473 $ 35,613 $ 2,206 $ 37,819
 
Adjusted EBITDA $ 52,291 $ 10,972 $ 63,263 $ 47,227 $ 8,397 $ 55,624
Adjusted EBITDA Margin 40.4 % 35.0 % 39.3 % 39.5 % 30.9 % 37.9 %
 
 
 
Twelve Months Ended December 31, 2018 Twelve Months Ended December 31, 2017

Storage
Solutions

Tank & Pump
Solutions

Total

Storage
Solutions

Tank & Pump
Solutions

Total
 
Revenues:
Rental $ 447,464 $ 110,733 $ 558,197 $ 406,590 $ 92,235 $ 498,825
Sales 29,032 5,322 34,354 26,989 5,451 32,440
Other   528   150   678   1,875   409   2,284
Total revenues   477,024   116,205   593,229   435,454   98,095   533,549
 
Costs and expenses:
Rental, selling and general expenses 287,648 76,475 364,123 265,390 68,425 333,815
Cost of sales 19,439 2,998 22,437 17,930 3,071 21,001
Depreciation and amortization   41,482   25,518   67,000   38,792   24,580   63,372
Total costs and expenses   348,569   104,991   453,560   322,112   96,076   418,188
 
Income from operations $ 128,455 $ 11,214 $ 139,669 $ 113,342 $ 2,019 $ 115,361
 
Adjusted EBITDA $ 180,089 $ 37,154 $ 217,243 $ 157,960 $ 26,843 $ 184,803
Adjusted EBITDA Margin 37.8 % 32.0 % 36.6 % 36.3 % 27.4 % 34.6 %
  (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)
       
 
December 31, December 31,
2018 2017
(unaudited) (audited)
ASSETS
Cash and cash equivalents $ 5,605 $ 13,451
Receivables, net 130,233 111,562
Inventories 11,725 15,671
Rental fleet, net 929,090 989,154
Property, plant and equipment, net 154,254 157,304
Other assets 13,398 15,334
Intangibles, net 55,542 62,024
Goodwill   705,217   708,907
Total assets $ 2,005,064 $ 2,073,407
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Accounts payable $ 33,177 $ 26,955
Accrued liabilities 88,136 78,084
Lines of credit 593,495 634,285
Obligations under capital leases 63,359 52,791
Senior notes, net 246,489 245,850
Deferred income taxes   170,139   173,754
Total liabilities   1,194,795   1,211,719
 
Stockholders' equity:
Common stock 500 497
Additional paid-in capital 619,850 605,369
Retained earnings 410,641 463,322
Accumulated other comprehensive loss (72,861 ) (60,334 )
Treasury stock   (147,861 )   (147,166 )
Total stockholders' equity   810,269   861,688
Total liabilities and stockholders' equity $ 2,005,064 $ 2,073,407
 
Mobile Mini, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(in thousands)
    Twelve Months Ended
December 31,
2018       2017  
Cash flows from operating activities:
Net (loss) income $ (8,062 ) $ 122,228
Adjustments to reconcile net (loss) income to net cash

provided by operating activities:

Asset impairment charge and loss on divestiture, net 102,140
Provision for doubtful accounts 2,412 5,037
Amortization of deferred financing costs 2,060 2,060
Amortization of long-term liabilities 145 130
Share-based compensation expense 10,867 7,373
Depreciation and amortization 67,000 63,372
Gain on sale of rental fleet (6,055 ) (5,657 )
Loss on disposal of property, plant and equipment 600 517
Deferred income taxes (2,523 ) (49,980 )
Foreign currency exchange (64 ) 25
Changes in certain assets and liabilities, net of

effect of businesses acquired

  (8,422 )   (9,459 )
Net cash provided by operating activities   160,098     135,646  
 
Cash flows from investing activities:
Proceeds from sale of assets held for sale 10,153
Additions to rental fleet, excluding acquisitions (85,961 ) (63,688 )
Proceeds from sale of rental fleet 14,993 12,953
Additions to property, plant and equipment, excluding acquisitions (16,931 ) (20,122 )
Proceeds from sale of property, plant and equipment   683     851  
Net cash used in investing activities   (77,063 )   (70,006 )
 
Cash flows from financing activities:
Net repayments under lines of credit (40,790 ) (6,875 )
Deferred financing costs (12 )
Principal payments on capital lease obligations (9,746 ) (7,418 )
Issuance of common stock 3,617 5,800
Dividend payments (44,530 ) (40,171 )
Purchase of treasury stock   (695 )   (8,367 )
Net cash used in financing activities   (92,144 )   (57,043 )
 
Effect of exchange rate changes on cash   1,263     717  
 
Net change in cash (7,846 ) 9,314
 
Cash and cash equivalents at beginning of period   13,451     4,137  
Cash and cash equivalents at end of period $ 5,605   $ 13,451  
 
Equipment and other acquired through capital lease obligations $ 20,314 $ 9,501
Capital expenditures accrued or payable 10,752 7,270
 

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

December 31,

Twelve Months Ended

December 31,

2018   2017   2018   2017  
Net income (loss) $ 14,248 $ 92,071 $ (8,062 ) $ 122,228
Interest expense 10,725 9,316 40,904 35,728
Income tax provision (benefit) 13,933 (64,383 ) 2,751 (48,104 )
Depreciation and amortization   16,794     16,431     67,000     63,372  
EBITDA 55,700 53,435 102,593 173,224
 
Share-based compensation expense 3,001 1,365 10,504 6,070
Restructuring expenses 700 824 2,006 2,886
Asset impairment charge and loss on divestiture, net 3,862 102,140
Acquisition-related expenses 123
Other               2,500  
Adjusted EBITDA $ 63,263   $ 55,624   $ 217,243   $ 184,803  
 
 
Three Months Ended

December 31,

Twelve Months Ended

December 31,

2018   2017   2018   2017  
Net cash provided by operating activities $ 43,878 $ 39,814 $ 160,098 $ 135,646
Interest paid 6,226 4,650 37,979 35,029
Income and franchise taxes paid 1,666 1,294 4,012 2,607
Share-based compensation expense,

including restructuring expense

(3,001 ) (1,483 ) (10,867 ) (7,373 )
Asset impairment charge and loss on divestiture, net (3,862 ) (102,140 )
Gain on sale of rental fleet 1,532 1,384 6,055 5,657
Loss on disposal of property, plant and

equipment

(52 ) (45 ) (600 ) (517 )
Changes in certain assets and liabilities, net of

effect of businesses acquired

  9,313     7,821     8,056     2,175  
EBITDA $ 55,700   $ 53,435   $ 102,593   $ 173,224  
 
 
Mobile Mini, Inc.
Free Cash Flow GAAP Reconciliation
(Unaudited)
(in thousands)
       
Three Months Ended

December 31,

Twelve Months Ended

December 31,

2018 2017 2018 2017
Net cash provided by operating activities $ 43,878 $ 39,814 $ 160,098 $ 135,646
 
Additions to rental fleet, excluding acquisitions (20,341) (17,743) (85,961) (63,688)
Proceeds from sale of rental fleet 3,546 3,351 14,993 12,953
Additions to property, plant and equipment,

excluding acquisitions

(2,296) (7,306) (16,931) (20,122)
Proceeds from sale of property, plant and

equipment

  80   71   683   851
Net capital expenditures, excluding acquisitions (19,011) (21,627) (87,216) (70,006)
               
Free cash flow $ 24,867 $ 18,187 $ 72,882 $ 65,640
 

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.

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

INVESTOR RELATIONS COUNSEL:
The Equity Group Inc.
Fred Buonocore (212) 836-9607
Kevin Towle (212) 836-9620