PHOENIX--(BUSINESS WIRE)--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 March 31,

2019.

Total revenues were $149.7 million and rental revenues were $142.2

million, as compared to $140.7 million and $132.3 million, respectively,

for the same period last year. Rental revenues for the Storage Solutions

and Tank & Pump Solutions businesses for the current quarter were $112.7

million and $29.4 million, respectively, compared to $106.9 million and

$25.5 million, respectively, for the same period last year.

The Company realized net income of $18.1 million, or $0.40 per diluted

share, in the first quarter of 2019. On an adjusted basis, first quarter

net income was $18.2 million, or $0.41 per diluted share, as compared to

adjusted net income of $14.9 million, or $0.33 per diluted share, for

the first quarter of 2018. Adjusted EBITDA was $56.2 million and

adjusted EBITDA margin was 37.6% for the first 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 May 29, 2019 to shareholders of record

as of May 15, 2019.

First Quarter 2019 Highlights



  • Continued strong rental revenue growth in Tank & Pump Solutions
    (“T&P”) with a 15.6% year-over-year increase.


  • Delivered healthy North American Storage Solutions (“SS”) rental
    revenue year-over-year growth of 8.0%.


  • Delivered year-over-year rate growth of 3.3% in SS and a mid-single
    digit increase for T&P, for new units placed on rent.


  • Achieved strong average OEC utilization rates of 77.1% for SS and
    74.1% for T&P in the first quarter, while investing in fleet for
    anticipated near-term growth.


  • Achieved adjusted EBITDA growth of 15.8%, compared to the prior-year
    quarter, with 16.6% in constant currency, and expanded adjusted EBITDA
    margin by 310 basis points to 37.6%.


  • Generated robust net cash flow from operating activities of $38.8
    million and free cash flow of $16.2 million.


  • Enhanced liquidity position through a $1.0 billion refinancing of our
    ABL Credit Agreement, extending the maturity to March 2024.


  • Increased return on capital employed to 9.0% as of March 31, 2019,
    which exceeds weighted average cost of capital and is a 170 basis
    point improvement from March 31, 2018.


  • Decreased leverage ratio to 4.0x at March 31, 2019 from 4.2x at
    December 31, 2018 and 5.0x at December 31, 2017.

CEO Comments

Erik Olsson, Mobile Mini’s Chief Executive Officer, remarked, “I am very

pleased with our performance and profitability in the first quarter,

including our 15.8% increase in adjusted EBITDA. Our Tank & Pump

division is starting to show its real potential and delivered 35.3%

growth in adjusted EBITDA with an adjusted EBITDA margin of 34.9%, which

was a 520 basis point increase over last year. Our North America Storage

Solutions business is also very healthy, with year-over-year rate

increases of 3.2% on our core business coupled with a 2% increase in

units on rent. In the United Kingdom, where Brexit continues to cause

uncertainty in the general economy, we managed to increase rates and

grow trucking and ancillary revenues to offset a small decrease in units

on rent, resulting in increased rental revenues in local currency.”

Mr. Olsson continued, “Our outlook remains very positive for the

remainder of 2019. In our Tank & Pump business, we have demonstrated to

our customers that we provide outstanding service and product, along

with technology tools that deliver improved customer efficiency. We

believe we are positioned to capitalize on the growth in demand

throughout this industry and gain additional business with existing and

new customers. Pending orders in the North American Storage Solutions

segment remain well above the prior-year at this time and the pipeline

remains solid. Overall, North American economic indicators are positive

and, for 2019 rental revenue growth we expect to exceed our Evergreen

target, while delivering margin expansion, strong free cash flow and

meaningful de-leveraging.”

Conference Call

Mobile Mini will host a conference call tomorrow, April 23rd at 11:00 am

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 196,400

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 12,800 units. Mobile Mini’s network is comprised of 156

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 gain additional business from customers and exceed our

Evergreen target metrics, 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 Income


(Unaudited)


(in thousands, except percentages and per share data)



 

 

 




 

 



 

 

 




 

 




 

 




 

 








Three Months Ended March 31, 2019




Three Months Ended March 31, 2018






Actual




Adjustments




Adjusted (1)




Actual




Adjustments




Adjusted (1)

































 

Revenues:
































Rental




$

142,172




$






$

142,172




$

132,338




$






$

132,338


Sales





7,223











7,223





8,103











8,103


Other




 

266




 






 

266




 

213




 






 

213


Total revenues




 

149,661




 






 

149,661




 

140,654




 






 

140,654

































 

Costs and expenses:
































Rental, selling and general expenses





92,234











92,234





88,998











88,998


Cost of sales





4,602











4,602





5,391











5,391


Restructuring expenses























111





(111

)







Depreciation and amortization




 

17,335




 






 

17,335




 

16,823




 






 

16,823


Total costs and expenses




 

114,171




 






 

114,171




 

111,323




 

(111

)



 

111,212

































 

Income from operations





35,490











35,490





29,331





111





29,442

































 

Other income (expense):
































Interest income























6











6


Interest expense





(10,760

)










(10,760

)




(9,599

)










(9,599

)

Deferred financing costs write-off





(123

)




123


























Foreign currency exchange




 

1




 






 

1




 

66




 






 

66

































 

Income before income tax provision





24,608





123





24,731





19,804





111





19,915

































 

Income tax provision





6,523





32





6,555





4,949





28





4,977






 

 




 

 




 

 




 

 




 

 




 

 


Net income




$

18,085




$

91




$

18,176




$

14,855




$

83




$

14,938

































 

EBITDA/Adjusted EBITDA




$

52,826









$

56,230




$

46,226









$

48,566


EBITDA/Adjusted EBITDA as a percentage of


total revenues







35.3

%









37.6

%




32.9

%









34.5

%
































 

Earnings per share:
































Basic




$

0.41









$

0.41




$

0.34









$

0.34


Diluted





0.40










0.41





0.33










0.33

































 

Weighted average number of common and


common share equivalents outstanding:


































Basic





44,448










44,448





44,214










44,214


Diluted





44,877










44,877





44,842










44,842



(1) Adjusted columns for the three months ended March 31, 2019 and
2018 exclude 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.




 

Mobile Mini, Inc.


Operating Data


(Unaudited)



 

 

 

 



 

 

 








 





2019




2018


As of March 31:












Stand-alone Storage Solutions locations





119





119


Stand-alone Tank & Pump Solutions locations





20





17


Combined Storage Solutions and Tank & Pump Solutions locations





17





17


Storage Solutions rental fleet units





196,400





214,900


Tank & Pump Solutions rental fleet units





12,800





12,300













 

Average utilization based on original equipment cost












Three months ended March 31:












Storage Solutions





77.1

%




68.6

%

Tank & Pump Solutions





74.1

%




73.6

%












 



 

Mobile Mini, Inc.


Business Segment Information - Adjusted (1)


(Unaudited)


(in thousands, except percentages)



 

 

 




 

 




 

 




 

 




 

 




 

 








Three Months Ended March 31, 2019




Three Months Ended March 31, 2018







Storage
Solutions







Tank & Pump
Solutions






Total





Storage
Solutions







Tank & Pump
Solutions






Total

































 

Revenues:
































Rental




$

112,725




$

29,447




$

142,172




$

106,864




$

25,474




$

132,338


Sales





5,777





1,446





7,223





6,739





1,364





8,103


Other




 

225




 

41




 

266




 

169




 

44




 

213


Total revenues




 

118,727




 

30,934




 

149,661




 

113,772




 

26,882




 

140,654

































 

Costs and expenses:
































Rental, selling and general expenses





72,626





19,608





92,234





70,824





18,174





88,998


Cost of sales





3,816





786





4,602





4,569





822





5,391


Depreciation and amortization




 

10,723




 

6,612




 

17,335




 

10,732




 

6,091




 

16,823


Total costs and expenses




 

87,165




 

27,006




 

114,171




 

86,125




 

25,087




 

111,212

































 

Income from operations




$

31,562




$

3,928




$

35,490




$

27,647




$

1,795




$

29,442

































 

Adjusted EBITDA




$

45,428




$

10,802




$

56,230




$

40,581




$

7,985




$

48,566


Adjusted EBITDA Margin





38.3

%




34.9

%




37.6

%




35.7

%




29.7

%




34.5

%



(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)



 

 

 




 

 















 





March 31,




December 31,






2019




2018






(unaudited)




(audited)


ASSETS


Cash and cash equivalents




$

4,296




$

5,605


Receivables, net





113,201





130,233


Inventories





11,702





11,725


Rental fleet, net





943,937





929,090


Property, plant and equipment, net





150,649





154,254


Operating lease assets





90,084








Other assets





15,945





13,398


Intangibles, net





53,967





55,542


Goodwill




 

706,639




 

705,217


Total assets




$

2,090,420




$

2,005,064













 

LIABILITIES AND STOCKHOLDERS' EQUITY


Liabilities:












Accounts payable




$

28,746




$

33,177


Accrued liabilities





66,245





88,136


Operating lease liabilities





91,863








Lines of credit





593,700





593,495


Obligations under finance leases





62,380





63,359


Senior notes, net





246,648





246,489


Deferred income taxes




 

175,681




 

170,139


Total liabilities




 

1,265,263




 

1,194,795













 

Stockholders' equity:












Common stock





503





500


Additional paid-in capital





624,941





619,850


Retained earnings





416,387





410,641


Accumulated other comprehensive loss





(67,756

)




(72,861

)

Treasury stock




 

(148,918

)



 

(147,861

)

Total stockholders' equity




 

825,157




 

810,269


Total liabilities and stockholders' equity




$

2,090,420




$

2,005,064













 



 

Mobile Mini, Inc.


Condensed Consolidated Statements of Cash Flows


(Unaudited)


(in thousands)



 

 

 

Three Months Ended






March 31,






2019


 

 

2018


Cash flows from operating activities:












Net income




$

18,085




$

14,855


Adjustments to reconcile net income to net cash


provided by operating activities:














Deferred financing costs write-off





123








Provision for doubtful accounts





1,212





961


Amortization of deferred financing costs





505





515


Amortization of long-term liabilities





13





36


Share-based compensation expense





3,404





2,229


Depreciation and amortization





17,335





16,823


Gain on sale of rental fleet





(1,425

)




(1,533

)

Loss on disposal of property, plant and equipment





18





334


Deferred income taxes





5,058





4,397


Foreign currency exchange





(1

)




(66

)

Changes in certain assets and liabilities, net of


effect of businesses acquired






 

(5,544

)



 

(3,620

)

Net cash provided by operating activities




 

38,783




 

34,931













 

Cash flows from investing activities:












Additions to rental fleet, excluding acquisitions





(23,016

)




(15,389

)

Proceeds from sale of rental fleet





3,338





3,844


Additions to property, plant and equipment, excluding acquisitions





(2,919

)




(4,752

)

Proceeds from sale of property, plant and equipment




 

49




 

179


Net cash used in investing activities




 

(22,548

)



 

(16,118

)












 

Cash flows from financing activities:












Net borrowings (repayments) under lines of credit





203





(12,443

)

Deferred financing costs





(3,254

)







Principal payments on finance lease obligations





(2,586

)




(1,990

)

Issuance of common stock





1,690





1,525


Dividend payments





(12,426

)




(11,054

)

Purchase of treasury stock




 

(1,057

)



 

(533

)

Net cash used in financing activities




 

(17,430

)



 

(24,495

)












 

Effect of exchange rate changes on cash




 

(114

)



 

(6

)












 

Net change in cash





(1,309

)




(5,688

)












 

Cash and cash equivalents at beginning of period




 

5,605




 

13,451


Cash and cash equivalents at end of period




$

4,296




$

7,763













 

Equipment and other acquired through finance lease obligations




$

1,609




$

2,897


Capital expenditures accrued or payable





8,012





6,613













 

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 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


March 31,








2019




2018


Net income




$

18,085




$

14,855


Interest expense





10,760





9,599


Income tax provision





6,523





4,949


Depreciation and amortization





17,335





16,823


Deferred financing costs write-off




 

123




 




EBITDA





52,826





46,226













 

Share-based compensation expense





3,404





2,229


Restructuring expenses




 






 

111


Adjusted EBITDA




$

56,230




$

48,566













 












 





Three Months Ended


March 31,








2019




2018


Net cash provided by operating activities




$

38,783




$

34,931


Interest paid





14,276





12,348


Income and franchise taxes paid





2,020





120


Share-based compensation expense,


including restructuring expense







(3,404

)




(2,229

)

Gain on sale of rental fleet





1,425





1,533


Loss on disposal of property, plant and


equipment







(18

)




(334

)

Changes in certain assets and liabilities, net of


effect of businesses acquired






 

(256

)



 

(143

)

EBITDA




$

52,826




$

46,226













 



 

Mobile Mini, Inc.


Free Cash Flow GAAP Reconciliation


(Unaudited)


(in thousands)



 

 

 




 

 








Three Months Ended


March 31,








2019




2018


Net cash provided by operating activities




$

38,783




$

34,931













 

Additions to rental fleet, excluding acquisitions





(23,016

)




(15,389

)

Proceeds from sale of rental fleet





3,338





3,844


Additions to property, plant and equipment,


excluding acquisitions







(2,919

)




(4,752

)

Proceeds from sale of property, plant and


equipment






 

49




 

179


Net capital expenditures, excluding acquisitions





(22,548

)




(16,118

)





 

 




 

 


Free cash flow




$

16,235




$

18,813













 

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 March 31, 2019 were $1.3

million and $0.4 million higher than when calculated in accordance with

GAAP.

Contacts

Van Welch, Executive VP &

Chief Financial Officer

Mobile

Mini, Inc.

(602) 308-3879

-OR-

INVESTOR RELATIONS COUNSEL:

The Equity Group Inc.

Fred

Buonocore (212) 836-9607

Kevin Towle (212) 836-9620