News Column

Mobile Mini Reports Q4’13 Results

February 14, 2014

TEMPE, Ariz.--(BUSINESS WIRE)-- Mobile Mini, Inc. (NASDAQ GS:MINI), the world’s leading supplier of portable storage solutions, today reported actual and adjusted financial results for the quarter ended December 31, 2013. Total revenues were $106.8 million and leasing revenues were $97.8 million, up from $99.8 million and $91.4 million, respectively, for the same period last year. The Company’s fourth quarter net income was $12.0 million, or $0.26 per diluted share, compared to $11.3 million, or $0.25 per diluted share, respectively, for the fourth quarter of 2012. On an adjusted basis, fourth quarter net income was $12.8 million, or $0.28 per diluted share, compared to $14.8 million, or $0.33 per diluted share, respectively, for the fourth quarter of 2012.

Adjusted EBITDA from continuing operations was $40.5 million and adjusted EBITDA margin was 37.9% for the fourth quarter of 2013.

Sale of Netherlands Operation

During the fourth quarter of 2013, the Company sold its branch in the Netherlands, which was deemed non-core to its operations in Europe. The loss per diluted share of the discontinued operation in the fourth quarter and full year 2013 was $0.02 and $0.03, respectively.

Fourth Quarter 2013 Highlights

  • Grew leasing revenues 7.0% year-over-year.
  • Drove fourth quarter sequential rental rates 2.0% higher than third quarter levels.
  • Increased rental rates by 4.6% year-over-year, with new units delivered at a 9.7% higher rate than the previous year.
  • Improved yield by 4.9% to $624 per unit, an all-time fourth quarter high.
  • Achieved an adjusted EBITDA margin of 37.9%, while continuing to invest in repairs and maintenance associated with increased deliveries and repositioning assets to high utilization markets, resulting in incremental expense of approximately $5 million, or 5% of revenues, compared to the fourth quarter of 2012.
  • Increased average fleet utilization to 72.8%, up from 65.1% in the fourth quarter of 2012.
  • Delivered free cash flow of $31.8 million, the 24th consecutive quarter of positive free cash flow.
  • Reduced net debt by $39.5 million.

    Full Year 2013 Highlights

  • Increased total revenues and leasing revenues by 7.0% and 7.7% to $406.5 million and $366.3 million, respectively.
  • Improved adjusted EBITDA by 8.3% to $157.5 million, for a 38.7% adjusted EBITDA margin.
  • Generated $109.4 million of free cash flow, up from $65.1 million in 2012.
  • Reduced net debt by $123.8 million, resulting in a net debt/TTM adjusted EBITDA leverage ratio of approximately 3.4x.

    Erik Olsson, Mobile Mini’s President and Chief Executive Officer, commented, “I am very pleased with our performance in the fourth quarter, with an underlying adjusted EBITDA margin of almost 43% excluding our incremental investments in fleet repairs and repositioning. Once again, we drove rental rates higher and put more units on rent as a result of our intensified sales and marketing efforts. As planned, we continued to repair and reposition available units to high demand areas and we expect to continue to make these investments throughout 2014 in order to minimize capex as well as maximize cash flow and utilization.”

    Mr. Olsson continued, “We enter 2014 well positioned to build upon the momentum of the past year. Our existing markets hold significant untapped potential, and we have been refining and investing in our sales organization to capitalize on these opportunities. We also plan to expand our footprint in North America with the addition of five to ten new locations in strategically attractive markets. We expect our year-over-year top line growth and profitability in 2014 to exceed that of 2013, which will drive accelerating free cash flow for the year. We have ample fleet capacity to support our growth in 2014, and expect capital expenditures to be in the $25 million to $30 million range, primarily for investments in delivery equipment and IT infrastructure.”

    Dividend

    The Company’s newly instituted regular quarterly cash dividend of $0.17 per share will be paid on March 20, 2014 to shareholders of record on March 6, 2014.

    EBITDA, Adjusted EBITDA, EBITDA margin, adjusted EBITDA margin, adjusted net income, adjusted diluted EPS, and free cash flow are non-GAAP financial measures as defined by Securities and Exchange Commission (“SEC”) rules. Reconciliations of these measurements to the most directly comparable GAAP financial measures can be found later in this release.

    Conference Call

    Mobile Mini will host a conference call today, Friday, February 14, 2014, 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 and the reconciliation of non-GAAP financial measures used in the slide show to the most directly comparable GAAP financial measures will be posted at www.mobilemini.com on the Investors 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.

    Mobile Mini, Inc. is the world’s leading provider of portable storage solutions through its total lease fleet of over 212,000 portable storage containers and office units with 136 locations in the U.S., United Kingdom, and Canada. Mobile Mini is included on the Russell 2000® and 3000® Indexes and the S&P Small Cap Index.

    This news release contains forward-looking statements, including, but not limited to, our expectations regarding our growth and profitability, financial performance, ability to repair and reposition fleet, capex spend and expand our footprint in North America 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 SEC filings. These forward-looking statements represent the judgment of the Company, as of the date of this release, and Mobile Mini disclaims any intent or obligation to update forward-looking statements.

    (See Accompanying Tables)

     

    Mobile Mini, Inc. Condensed Consolidated Statements of Income

    (Unaudited)/(in thousands except per share data)/(includes effects of rounding)

     
        Three Months Ended     Three Months Ended
    December 31, December 31,
    2013     2013 2012     2012
    Revenues: Actual     Adjusted (1) Actual     Adjusted (1)
    Leasing $ 97,820 $ 97,820 $ 91,413 $ 91,413
    Sales 8,246 8,246 7,833 7,833
    Other   733         733     600         600  
    Total revenues   106,799         106,799     99,846         99,846  
    Costs and expenses:
    Cost of sales 5,472 5,472 4,917 4,917
    Leasing, selling and general expenses (2) 64,809 64,805 54,470 54,319
    Merger and restructuring expenses (3) 349 - 5,533 -
    Asset impairment charge, net (4) (784 ) - - -
    Depreciation and amortization   8,993         8,993     9,036         9,036  
    Total costs and expenses   78,839         79,270     73,956         68,272  
    Income from operations 27,960 27,529 25,890 31,574
     
    Other income (expense):
    Interest income 1 1 - -
    Interest expense (7,151 ) (7,151 ) (7,719 ) (7,719 )
    Foreign currency exchange   (1 )       (1 )   -         -  
    Income from continuing operations before provision for income taxes 20,809 20,378 18,171 23,855
    Provision for income taxes   7,717         7,551     6,873         9,061  
    Income from continuing operations 13,092 12,827 11,298 14,794
    Loss from discontinued operation, net of tax (5)   (1,134 )       -     (40 )       -  
    Net income $ 11,958       $ 12,827   $ 11,258       $ 14,794  
     
    Earnings per share:
    Basic:
    Income from continuing operations $ 0.29 $ 0.28 $ 0.25 $ 0.33
    Loss from discontinued operation   (0.03 )       -     -         -  
    Net Income $ 0.26       $ 0.28   $ 0.25       $ 0.33  
    Diluted:
    Income from continuing operations $ 0.28 $ 0.28 $ 0.25 $ 0.33
    Loss from discontinued operation   (0.02 )       -     -         -  
    Net Income $ 0.26       $ 0.28   $ 0.25       $ 0.33  
     
    Weighted average number of common and common
    share equivalents outstanding:
    Basic   45,736         45,736     44,822         44,822  
    Diluted   46,461         46,461     45,349         45,349  
     
    EBITDA $ 36,953       $ 40,455   $ 34,926       $ 42,272  
     
    (1)   This column represents a non-GAAP presentation even though some individual line items presented, such as revenues, are identical under both GAAP and the adjusted presentations.
    (2) Represents acquisition activity costs and, in 2012, excludes estimated damages, net of estimated insurance recoveries, to our assets caused by natural disasters that are excluded in the adjusted presentation.
    (3) Merger and restructuring expenses represent costs relating primarily to the restructuring of our operations that are excluded in the adjusted presentation.
    (4) Represents the net sales in excess of fair value of certain assets that were written down and classified as held for sale and is excluded in the adjusted presentation.
    (5) Represents our Netherlands operation that was sold in December 2013 and reported as discontinued operation. The 2013 amount also includes a $1.2 million after-tax loss on the sale.
     
     

    Mobile Mini, Inc. Condensed Consolidated Statements of Income

    (Unaudited)/(in thousands except per share data)/(includes effects of rounding)

     
        Twelve Months Ended     Twelve Months Ended
    December 31, December 31,
    2013     2013 2012     2012
    Revenues: Actual     Adjusted (1) Actual     Adjusted (1)
    Leasing $ 366,286 $ 366,286 $ 339,975 $ 339,975
    Sales 38,051 38,051 37,759 37,759
    Other   2,149         2,149     2,162         2,162  
    Total revenues   406,486         406,486     379,896         379,896  
    Costs and expenses:
    Cost of sales 25,413 25,413 23,178 23,178
    Leasing, selling and general expenses (2) 237,567 237,563 218,709 218,419
    Merger and restructuring expenses (3) 2,402 - 7,123 -
    Asset impairment charge, net (4) 38,705 - - -
    Depreciation and amortization   35,432         35,432     35,982         35,982  
    Total costs and expenses   339,519         298,408     284,992         277,579  
    Income from operations 66,967 108,078 94,904 102,317
     
    Other income (expense):
    Interest income 1 1 1 1
    Interest expense (29,467 ) (29,467 ) (37,268 ) (37,268 )
    Debt restructuring expense (5) - - (2,812 ) -
    Deferred financing costs write-off (6) - - (1,889 ) -
    Foreign currency exchange   (2 )       (2 )   (4 )       (4 )
    Income from continuing operations before provision for income taxes 37,499 78,610 52,932 65,046
    Provision for income taxes (7)   12,275         28,704     18,509         24,272  
    Income from continuing operations 25,224 49,906 34,423 40,774
    Loss from discontinued operation, net of tax (8)   (1,302 )       -     (245 )       -  
    Net income $ 23,922       $ 49,906   $ 34,178       $ 40,774  
     
    Earnings per share:
    Basic:
    Income from continuing operations $ 0.55 $ 1.10 $ 0.77 $ 0.91
    Loss from discontinued operation   (0.02 )       -     -         -  
    Net Income $ 0.53       $ 1.10   $ 0.77       $ 0.91  
    Diluted:
    Income from continuing operations $ 0.55 $ 1.08 $ 0.76 $ 0.90
    Loss from discontinued operation   (0.03 )       -     -         -  
    Net Income $ 0.52       $ 1.08   $ 0.76       $ 0.90  
     
    Weighted average number of common and common
    share equivalents outstanding:
    Basic   45,481         45,481     44,657         44,657  
    Diluted   46,096         46,096     45,102         45,102  
     
    EBITDA $ 102,398       $ 157,465   $ 130,883       $ 145,447  
     
    (1)   This column represents a non-GAAP presentation even though some individual line items presented, such as revenues, are identical under both GAAP and the adjusted presentations.
    (2) Represents acquisition activity costs and, in 2012, excludes estimated damages, net of estimated insurance recoveries, to our assets caused by natural disasters that are excluded in the adjusted presentation.
    (3) Merger and restructuring expenses represent costs relating primarily to the restructuring of our operations that are excluded in the adjusted presentation.
    (4) Represents the net impairment charge primarily for the write-down of certain assets to fair value and classified as held for sale and is excluded in the adjusted presentation.
    (5) In 2012, this represents the redemption premiums and the unamortized original issuance discount on the redemption of $150.0 million of 6.875% Notes originally due in 2015. Debt restructuring expense is excluded in the adjusted presentation.
    (6) In 2012, this represents the unamortized deferred financing costs associated with the $150.0 million of 6.875% Notes redeemed in August 2012 and a portion of deferred financing costs associated with our prior $850.0 million credit agreement which was replaced with our new $900.0 million credit agreement in February 2012. Deferred financing costs write-off is excluded in the adjusted presentation.
    (7) Provision for income taxes includes approximately $1.9 million and $1.2 million in 2013 and 2012, respectively, in income tax benefits related to statutory corporate income tax rate reductions in the United Kingdom that are excluded in the adjusted presentation.
    (8) Represents our Netherlands operation that was sold in December 2013 and reported as discontinued operation. The 2013 amount also includes a $1.2 million after-tax loss on the sale.
     
     

    Mobile Mini, Inc.

    Condensed Consolidated Balance Sheets

    (in thousands except par value data)

    (includes effects of rounding)

     
       

    December 31,

    2013

       

    December 31,

    2012

    (unaudited) (audited)
    ASSETS
    Cash $ 1,256 $ 1,780
    Receivables, net 53,104 50,291
    Inventories 18,744 19,375
    Lease fleet, net 979,276 1,028,773
    Property, plant and equipment, net 85,153 80,430
    Assets held for sale 980 -
    Deposits and prepaid expenses 6,116 6,747
    Other assets and intangibles, net 13,523 17,827
    Goodwill 519,222 518,308
    Assets of discontinued operation   -     4,029  
    Total assets $ 1,677,374   $ 1,727,560  
     
     
    LIABILITIES AND STOCKHOLDERS' EQUITY
    Liabilities:
    Accounts payable $ 18,862 $ 18,109
    Accrued liabilities 65,308 58,362
    Lines of credit 319,314 442,391
    Notes payable - 310
    Obligations under capital leases 8,781 642
    Senior Notes 200,000 200,000
    Deferred income taxes 209,565 198,046
    Liabilities of discontinued operation   -     181  
    Total liabilities   821,830     918,041  
     
    Commitments and contingencies
     
    Stockholders' equity:
    Preferred stock: $.01 par value, 20,000 shares authorized, none issued - -

    Common stock: $.01 par value, 95,000 shares authorized, 48,810 issued and 46,626 outstanding at December 31, 2013 and 48,211 issued and 46,036 outstanding at December 31, 2012

     

    488

     

    482

    Additional paid-in capital 550,387 522,372
    Retained earnings 359,778 343,782
    Accumulated other comprehensive loss (15,440 ) (17,817 )

    Treasury stock, at cost, 2,184 and 2,175 shares at December 31, 2013 and 2012, respectively

      (39,669 )   (39,300 )
    Total stockholders' equity   855,544     809,519  
    Total liabilities and stockholders' equity $ 1,677,374   $ 1,727,560  
     
     

    Mobile Mini, Inc. Condensed Consolidated Statements of Cash Flows

    (Unaudited)/(in thousands)/(includes effects of rounding)

     
        Twelve Months Ended December 31,
      2013         2012  
    CASH FLOWS FROM OPERATING ACTIVITIES:
    Net income $ 23,922 $ 34,178
    Adjustments to reconcile net income to net cash

    provided by operating activities:

    Debt restructuring expense - 2,812
    Deferred financing costs write-off - 1,889
    Asset impairment charge, net 38,217 -
    Provision for doubtful accounts 2,160 2,179
    Amortization of deferred financing costs 2,811 3,217
    Amortization of debt issuance discount - 49
    Amortization of long-term liabilities 169 167
    Share-based compensation expense 14,714 9,575
    Depreciation and amortization 35,626 36,187
    Loss on disposal of discontinued operation 1,948 -
    Gain on sale of lease fleet units (9,682 ) (11,781 )
    Loss (gain) on disposal of property, plant and equipment 247 (130 )
    Deferred income taxes 11,012 18,107
    Tax benefit shortfall on equity award transactions (837 ) (3 )
    Foreign currency transaction loss 1 5

    Changes in certain assets and liabilities, net of effect of business acquired:

    Receivables (3,640 ) (5,078 )
    Inventories (393 ) 1,352
    Deposits and prepaid expenses 653 537
    Other assets and intangibles 10 (161 )
    Accounts payable 337 (1,884 )
    Accrued liabilities   (1,164 )   (268 )
    Net cash provided by operating activities   116,111     90,949  
     
    CASH FLOWS FROM INVESTING ACTIVITIES:
    Proceeds from sale of discontinued operation 677 -
    Cash paid for business acquired - (3,563 )
    Additions to lease fleet (28,826 ) (43,934 )
    Proceeds from sale of lease fleet units 35,951 29,358
    Additions to property, plant and equipment (15,792 ) (12,741 )
    Proceeds from sale of property, plant, and equipment   1,970     1,497  
    Net cash used in investing activities   (6,020 )   (29,383 )
     
    CASH FLOWS FROM FINANCING ACTIVITIES:
    Net (repayments) borrowings under lines of credit (123,076 ) 97,242
    Redemption of 6.875% senior notes due 2015 - (150,000 )
    Redemption premiums of 6.875% senior notes due 2015 - (2,579 )
    Deferred financing costs - (8,075 )
    Proceeds from issuance of notes payable - 398
    Principal payments on notes payable (310 ) (403 )
    Principal payments on capital lease obligations (408 ) (947 )
    Issuance of common stock 13,818 3,645
    Purchase of treasury stock   (369 )   -  
    Net cash used in financing activities   (110,345 )   (60,719 )
    Effect of exchange rate changes on cash   (427 )   (1,770 )
    NET DECREASE IN CASH (681 ) (923 )
    CASH AT BEGINNING OF PERIOD   1,937     2,860  
    CASH AT END OF PERIOD $ 1,256   $ 1,937  
     
    Supplemental Disclosure of Cash Flow Information:
    Cash paid during the year for interest $ 25,947   $ 35,145  
    Cash paid during the year for income and franchise taxes $ 1,114   $ 831  

    Equipment acquired through capital lease and financing obligations

    $ 8,547   $ 300  
     
     

    Mobile Mini, Inc.

    Non-GAAP Reconciliations

    (in thousands)

    (includes effects of rounding)

     
        Three Months Ended December 31,     Twelve Months Ended December 31,
      2013         2012     2013         2012  
    Reconciliation of EBITDA to net cash provided        
    by operating activities:
    EBITDA $ 36,953 $ 34,926 $ 102,398 $ 130,883
    Discontinued operation (712 ) 23 (732 ) (11 )
    Interest paid (10,174 ) (10,814 ) (25,947 ) 35,145 )
    Income and franchise taxes paid (152 ) (109 ) (1,114 ) (831 )
    Share-based compensation expense 3,945 3,899 14,714 9,575
    Asset impairment (recovery) charge, net (736 ) - 38,217 -
    Loss on disposal of discontinued operation 1,948 - 1,948 -
    Gain on sale of lease fleet units (1,984 ) (2,330 ) (9,682 ) (11,781 )
    Loss (gain) on disposal of property, plant and equipment 303 133 247 (130 )
    Changes in certain assets and liabilities,
    net of effect of business acquired:
    Receivables 2,529 3,827 (1,480 ) (2,899 )
    Inventories 2,004 2,315 (393 ) 1,352
    Deposits and prepaid expenses 634 (387 ) 653 537
    Other assets and intangibles (2 ) 103 10 (161 )
    Accounts payable and accrued liabilities   (3,919 )       999     (2,728 )       (440 )
    Net cash provided by operating activities $ 30,637       $ 32,585   $ 116,111       $ 90,949  
     
    Reconciliation of net income to EBITDA and
    adjusted EBITDA:
    Net income $ 11,958 $ 11,258 $ 23,922 $ 34,178
    Loss from discontinued operation, net of tax 1,134 40 1,302 245
    Interest expense 7,151 7,719 29,467 37,268
    Provision for income taxes 7,717 6,873 12,275 18,509
    Depreciation and amortization 8,993 9,036 35,432 35,982
    Debt restructuring expense - - - 2,812
    Deferred financing costs write-off   -         -     -         1,889  
    EBITDA 36,953 34,926 102,398 130,883
    Share-based compensation expense 3,933 1,662 13,956 7,151
    Merger and restructuring expenses 349 5,533 2,402 7,123
    Acquisition and other expenses 4 151 4 290
    Asset impairment (recovery) charge, net   (784 )       -     38,705         -  
    Adjusted EBITDA $ 40,455       $ 42,272   $ 157,465       $ 145,447  
     
    Reconciliation of net cash provided by operating
    activities to free cash flow:
    Net cash provided by operating activities $ 30,637 $ 32,585 $ 116,111 $ 90,949
     
    Additions to lease fleet (5,215 ) (11,151 ) (28,826 ) (43,934 )
    Proceeds from sale of lease fleet units 10,540 5,959 35,951 29,358
    Additions to property, plant and equipment (5,141 ) (1,570 ) (15,792 ) (12,741 )
    Proceeds from sale of property, plant and equipment   957         69     1,970         1,497  

    Net capital expenditures, excluding acquisitions

      1,141         (6,693 )   (6,697 )       (25,820 )
                   
    Free cash flow $ 31,778       $ 25,892   $ 109,414       $ 65,129  
     
     

    Mobile Mini, Inc. Non-GAAP Reconciliations

    (in thousands except per share data)/(includes effects of rounding)

     
        Reconciliation of Adjusted Measurements to Actuals
    Three Months Ended December 31, 2013
        Share-based     Merger         Asset     Loss from    
    compensation and restructuring Acquisition impairment discontinued
    As Adjusted (1)     expense (2)     expenses (3)     expenses (4)     charge, net (5)     operation, net (6)     Actual
    Revenues $ 106,799 $ - $ - $ - $ - $ - $ 106,799
    EBITDA $ 40,455 $ 3,933 ) $ (349 ) $ (4 ) $ 784 $ - $ 36,953
    EBITDA margin 37.9 % (3.7 )% (0.3 )% - -(0.7 )% - 34.6 %
    Operating income $ 27,529 $ - $ (349 ) $ (4 ) $ 784 $ - $ 27,960
    Operating income margin 25.8 % - (0.3 )% - -(0.7 )% - 26.2 %
    Pre tax income $ 20,378 $ - $ (349 ) $ (4 ) $ 784 $ - $ 20,809
    Net income $ 12,827 $ - $ (236 ) $ (3 ) $ 503 $ (1,134 ) $ 11,958
    Diluted earnings per share $ 0.28 $ - $ (0.01 ) $ - $ 0.01 $ (0.02 ) $ 0.26
     
     
        Reconciliation of Adjusted Measurements to Actuals
    Three Months Ended December 31, 2012
        Share-based     Leasing, selling     Merger     Loss from    
    compensation and general and restructuring discontinued
    As Adjusted (1)     expense (2)     expenses (7)     expenses (3)     operation, net (6)     Actual
    Revenues $ 99,846 $ - $ - $ - $ - $ 99,846
    EBITDA $ 42,272 $ (1,662 ) $ (151 ) $ (5,533 ) $ - $ 34,926
    EBITDA margin 42.3 % (1.7 )% (0.2 )% (5.5 )% - 35.0 %
    Operating income $ 31,574 $ - $ (151 ) $ (5,533 ) $ - $ 25,890
    Operating income margin 31.6 % - (0.2 )% (5.5 )% - 25.9 %
    Pre tax income $ 23,855 $ - $ (151 ) $ (5,533 ) $ - $ 18,171
    Net income $ 14,794 $ - $ (93 ) $ (3,403 ) $ (40 ) $ 11,258
    Diluted earnings per share $ 0.33 $ - $ - $ (0.08 ) $ - $ 0.25
     
    (1)   This column represents a non-GAAP presentation even though some individual line items presented, such as revenues, are identical under both GAAP and the adjusted presentations.
    (2) Represents non-cash share-based expense associated with the granting of equity instruments and is excluded in the adjusted presentation.
    (3) Merger and restructuring expenses represent costs relating primarily to the restructuring of our operations. Merger and restructuring expenses are excluded in the adjusted presentation.
    (4) Represents acquisition activity costs that are excluded in the adjusted presentation.
    (5) Represents the net sales in excess of fair value of certain assets that were written down and classified as held for sale and is excluded in the adjusted presentation.
    (6) Represents our Netherlands operation that was sold in December 2013 and reported as discontinued operation. The 2013 amount also includes a $1.2 million after-tax loss on the sale.
    (7) Represents the net estimated damages to our assets caused by natural disasters and is excluded in the adjusted presentation.
     
     

    Mobile Mini, Inc. Non-GAAP Reconciliations

    (in thousands except per share data)/(includes effects of rounding)

     
        Reconciliation of Adjusted Measurements to Actuals
    Twelve Months Ended December 31, 2013
        Share-based     Merger         Asset         Loss from    
    compensation and restructuring Acquisition impairment Income tax Discontinued
    As Adjusted (1)     expense (2)     expenses (3)     expenses (4)     charge, net (5)     benefit (6)     operation, net (7)     Actual
    Revenues $ 406,486 $ - $ - $ - $ - $ - $ - $ 406,486
    EBITDA $ 157,465 $ (13,956 ) $ (2,402 ) $ (4 ) $ (38,705 ) $ - $ - $ 102,398
    EBITDA margin 38.7 % (3.4 )% (0.6 )% - (9.5 )% - - 25.2 %
    Operating income $ 108,078 $ - $ (2,402 ) $ (4 ) $ (38,705 ) $ - $ - $ 66,967
    Operating income margin 26.6 % - (0.6 )% - (9.5 )% - - 16.5 %
    Pre tax income $ 78,610 $ - $ (2,402 ) $ (4 ) $ (38,705 ) $ - $ - $ 37,499
    Net income $ 49,906 $ - $ (1,525 ) $ (3 ) $ (25,015 ) $ 1,861 $ (1,302 ) $ 23,922
    Diluted earnings per share $ 1.08 $ - $ (0.03 ) $ - $ (0.54 ) $ 0.04 $ (0.03 ) $ 0.52
     
     
        Reconciliation of Adjusted Measurements to Actuals
    Twelve Months Ended December 31, 2012
        Share-based     Leasing, selling     Merger         Debt     Deferred         Loss from    
    compensation and general and restructuring Acquisition restructuring financing costs Income tax discontinued
    As Adjusted (1)     expense (2)     expenses (8)     expenses (3)     expenses (4)     expense (9)     write-off (10)     benefit (6)     operation, net (7)     Actual
    Revenues $ 379,896 $ - $ - $ - $ - $ - $ - $ - $ - $ 379,896
    EBITDA $ 145,447 $ (7,151 ) $ (151 ) $ (7,123 ) $ (139 ) $ - $ - $ - $ - $ 130,883
    EBITDA margin 38.3 % (1.9 )% - (1.9 )% - - - - - 34.5 %
    Operating income $ 102,317 $ - $ (151 ) $ (7,123 ) $ (139 ) $ - $ - $ - $ - $ 94,904
    Operating income margin 26.9 % - - (1.9 )% - - - - - 25.0 %
    Pre tax income $ 65,046 $ - $ (151 ) $ (7,123 ) $ (139 ) $ (2,812 ) $ (1,889 ) $ - $ - $ 52,932
    Net income $ 40,774 $ - $ (93 ) $ (4,438 ) $ (85 ) $ (1,729 ) $ (1,162 ) $ 1,156 $ (245 ) $ 34,178
    Diluted earnings per share $ 0.90 $ - $ - $ (0.10 ) $ - $ (0.04 ) $ (0.03 ) $ 0.03 $ - $ 0.76
     
    (1)   This column represents a non-GAAP presentation even though some individual line items presented, such as revenues, are identical under both GAAP and the adjusted presentations.
    (2) Represents non-cash share-based expense associated with the granting of equity instruments and is excluded in the adjusted presentation.
    (3) Merger and restructuring expenses represent costs relating primarily to the restructuring of our operations including the severance related to our Chief Accounting Officer in 2013 and our Chief Executive Officer in 2012. Merger and restructuring expenses are excluded in the adjusted presentation.
    (4) Represents acquisition activity costs that are excluded in the adjusted presentation.
    (5) Represents the net impairment charge primarily for the write-down of certain assets to fair value and classified as held for sale and is excluded in the adjusted presentation.
    (6) Represents income tax benefits related to the statutory corporate income tax rate reductions in the United Kingdom that are excluded in the adjusted presentation.
    (7) Represents our Netherlands operation that was sold in December 2013 and reported as discontinued operation. The 2013 amount also includes a $1.2 million after-tax loss on the sale.
    (8) Represents the net estimated damages to our assets caused by natural disasters and acquisition activity costs that are excluded in the adjusted presentation.
    (9) Represents the redemption premiums and the unamortized original issuance discount on the redemption of $150.0 million of 6.875% Notes originally due in 2015. Debt restructuring expense is excluded in the adjusted presentation.
    (10) Represents the unamortized deferred financing costs associated with the $150.0 million of 6.875% Notes redeemed in August 2012 and a portion of deferred financing costs associated with our prior $850.0 million credit agreement, which was replaced with our new $900.0 million credit agreement in February 2012. Deferred financing costs write-off is excluded in the adjusted presentation.
     


    The sale of our Netherlands operation is reflected in the financial data herein as a discontinued operation for all periods presented and all prior period amounts have been recast to reflect this transaction.

    This news release includes the financial measures “EBITDA”, “adjusted EBITDA”, “EBITDA margin”, “adjusted EBITDA margin”, “adjusted SG&A”, “adjusted net income”, “adjusted diluted earnings per share” and “free cash flow.” These measurements are deemed “non-GAAP financial measures” under rules of the SEC, including Regulation G. This non-GAAP financial information may be determined or calculated differently by other companies.

    EBITDA is defined as net income before discontinued operation, net of taxes, interest expense, income taxes, depreciation and amortization, and if applicable, debt restructuring or extinguishment costs, including any write-off of deferred financing costs. We further adjust EBITDA to exclude non-cash share-based compensation expense and to ignore the effect of what we consider transactions or events not related to our core business to arrive at adjusted EBITDA. The GAAP financial measure that is most directly comparable to EBITDA is net cash provided by operating activities. EBITDA and adjusted EBITDA margins are calculated by dividing consolidated EBITDA and adjusted EBITDA by total revenues. The GAAP financial measure that is most directly comparable to EBITDA margin is operating margin, which represents operating income divided by revenues. We present adjusted EBITDA and adjusted EBITDA margin because we believe they provide useful information regarding our ability to meet our future debt payment requirements, capital expenditures and working capital requirements and they provide an overall evaluation of our financial condition. We include adjusted EBITDA in this earnings announcement to provide transparency to investors. Adjusted EBITDA has certain limitations as an analytical tool and should not be used as a substitute for net income, cash flows, or other consolidated income or cash flow data prepared in accordance with GAAP or as a measure of our profitability or our liquidity. EBITDA margin is presented along with the operating margin so as not to imply that more emphasis should be placed on it than the corresponding GAAP measure.

    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 GAAP financial measure. 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 the Company’s existing businesses, debt service obligations, pay authorized quarterly dividends and strategic acquisitions.

    Adjusted SG&A, adjusted net income and adjusted diluted earnings per share permit a comparative assessment of our SG&A expenses, net income and diluted earnings per share by excluding certain one-time expenses, and merger and restructuring expenses to make a more meaningful comparison of our operating performance.

    Earlier in this release we provided a reconciliation of these adjusted measurements to actual results along with a reconciliation of EBITDA to net cash provided by operating activities, net income to EBITDA and adjusted EBITDA and net cash provided by operating activities to free cash flow.




    Mobile Mini, Inc.

    Mark Funk, 480-477-0241

    Executive VP & Chief Financial Officer

    www.mobilemini.com

    or

    INVESTOR RELATIONS COUNSEL:

    The Equity Group Inc.

    Fred Buonocore, 212-836-9607

    Linda Latman, 212-836-9609

    Source: Mobile Mini, Inc.


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