Attached files
| file | filename |
|---|---|
| 8-K - 8-K - MOBILE MINI INC | d582468d8k.htm |
Exhibit 99.1
FOR IMMEDIATE RELEASE
MOBILE MINI REPORTS Q2’13 RESULTS
Tempe, AZ – August 9, 2013 — 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 June 30, 2013. Total revenues were $97.5 million and leasing revenues were $88.2 million, up from $93.2 million and $81.9 million, respectively, for the same period last year.
The Company recorded a second quarter net loss of $(14.4) million, or $(0.32) per share, due to a charge of $40.3 million, of which $39.7 million was non-cash, related to the impairment of certain leasing and other assets determined to be either non-core or uneconomic to repair. Excluding this charge, adjusted net income was $11.6 million, or $0.25 per adjusted diluted share, compared with $7.5 million, or $0.17 per adjusted diluted share for the second quarter of 2012.
Adjusted EBITDA was $38.1 million for the second quarter of 2013, compared with $33.0 million for the same period last year. Adjusted EBITDA margin was 39.1% for the second quarter of 2013, compared with 35.4% in the second quarter of 2012. The increase in profitability and margin reflects stronger utilization, higher yield including improved pricing, and leveraging of operating expenses.
Second Quarter 2013 Highlights
| • | Grew leasing revenues 7.7% year-over-year to $88.2 million, an all-time second quarter high and the tenth consecutive quarter of comparable period growth in leasing revenues. |
| • | Improved yield by 3.2%, including an average rental rate increase of 2.1% versus the prior year, to an all-time second quarter high of $617. |
| • | Generated a 15.4% year-over-year increase in adjusted EBITDA. |
| • | Increased average fleet utilization to 62.0%, up 430 bps from the second quarter of 2012 on strengthening demand from both non-construction and construction end markets. |
| • | Delivered strong free cash flow of $18.3 million, after $7.1 million of net capex, which was the 22nd consecutive quarter of positive free cash flow. |
| • | Reduced net debt by $22.7 million in the second quarter and $53.6 million year-to-date. |
Erik Olsson, Mobile Mini’s President and Chief Executive Officer, commented, “We generated further improvement in utilization during the second quarter, which resulted in solid comparable period leasing revenue growth and increased profitability. In addition, we saw increased momentum beginning in June and continuing into the third quarter. We expect these favorable trends to continue through the second half of 2013, and into 2014, particularly as we hone our sales efforts and seek to expand our geographic footprint.”
The Company completed a review of its lease fleet and related assets in the second quarter and decided to liquidate units that were deemed to be either non-core or uneconomic to repair. The impairment totaled $40.3 million, of which $14.9 million was related to core storage containers. The net impairment charge related to the lease fleet represents only 3.3% of the total lease fleet’s net book value. However, removing these non-rentable assets had the positive impact of improving utilization by 4.3 percentage points to 67.4% at the end of the second quarter. Excluding the effect of the impairment, utilization at June 30, 2013 improved 4.2 percentage points to 63.1%, compared to 58.9% at the end of the second quarter of 2012. This non-cash charge does not change the Company’s earnings outlook, liquidity position, medium-term capital expenditure needs or free cash flow generation.
| Mobile Mini, Inc. News Release August 9, 2013 |
Page 2 |
Mr. Olsson continued, “With a strategic focus on increasing return on capital and a move towards a rent-ready business model, removing these underperforming assets and investing resources toward improving fleet quality and availability positions us well for future growth. As utilization continues to rise, we expect this streamlining of our fleet to have meaningful benefits in the form of increased yard productivity, a safer work environment, and reduced real estate needs, which should further enhance our financial performance over time.”
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, August 9, 2013, 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 215,000 portable storage containers and office units with 137 locations in the U.S., United Kingdom, Canada and The Netherlands. 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, particularly regarding growth trends, enhanced financial performance, ability to penetrate existing markets and expand our footprint, increases in operating leverage, increases in revenue and profitability, yard productivity, safety and utilization, and decreased real estate needs, 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.
| CONTACT: | -OR- | INVESTOR RELATIONS COUNSEL: | ||
| Mark Funk, Executive VP & | The Equity Group Inc. | |||
| Chief Financial Officer | Fred Buonocore (212) 836-9607 | |||
| Mobile Mini, Inc. | Linda Latman (212) 836-9609 | |||
| (480) 477-0241 www.mobilemini.com |
(See Accompanying Tables)
| Mobile Mini, Inc. News Release August 9, 2013 |
Page 3 |
Mobile Mini, Inc. Condensed Consolidated Statements of Operations
(Unaudited)/(in thousands except per share data)/(includes effects of rounding)
| Three Months Ended June 30, |
Three Months Ended June 30, |
|||||||||||||||
| 2013 Actual |
2013 Adjusted (1) |
2012 Actual |
2012 Adjusted (1) |
|||||||||||||
| Revenues: |
||||||||||||||||
| Leasing |
$ | 88,224 | $ | 88,224 | $ | 81,924 | $ | 81,924 | ||||||||
| Sales |
8,850 | 8,850 | 10,749 | 10,749 | ||||||||||||
| Other |
448 | 448 | 547 | 547 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total revenues |
97,522 | 97,522 | 93,220 | 93,220 | ||||||||||||
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|
|
|
|
|
|
|
|||||||||
| Costs and expenses: |
||||||||||||||||
| Cost of sales |
5,668 | 5,668 | 6,580 | 6,580 | ||||||||||||
| Leasing, selling and general expenses (2) |
57,477 | 57,477 | 55,377 | 55,332 | ||||||||||||
| Merger and restructuring expenses (3) |
343 | — | 267 | — | ||||||||||||
| Asset impairment charge (4) |
40,277 | — | — | — | ||||||||||||
| Depreciation and amortization |
8,833 | 8,833 | 9,131 | 9,131 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total costs and expenses |
112,598 | 71,978 | 71,355 | 71,043 | ||||||||||||
|
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|
|
|
|
|
|
|
|||||||||
| (Loss) income from operations |
(15,076 | ) | 25,544 | 21,865 | 22,177 | |||||||||||
| Other income (expense): |
||||||||||||||||
| Interest income |
— | — | 1 | 1 | ||||||||||||
| Interest expense |
(7,455 | ) | (7,455 | ) | (10,182 | ) | (10,182 | ) | ||||||||
| Foreign currency exchange |
— | — | (2 | ) | (2 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (Loss) income before (benefit from) provision for income taxes |
(22,531 | ) | 18,089 | 11,682 | 11,994 | |||||||||||
| (Benefit from) provision for income taxes |
(8,150 | ) | 6,446 | 4,370 | 4,462 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net (loss) income |
$ | (14,381 | ) | $ | 11,643 | $ | 7,312 | $ | 7,532 | |||||||
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|
|
|
|
|
|
|
|||||||||
| (Loss) earnings per share: |
||||||||||||||||
| Basic |
$ | (0.32 | ) | $ | 0.26 | $ | 0.16 | $ | 0.17 | |||||||
|
|
|
|
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|
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|
|||||||||
| Diluted |
$ | (0.32 | ) | $ | 0.25 | $ | 0.16 | $ | 0.17 | |||||||
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|
|
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|
|||||||||
| Weighted average number of common and common share equivalents outstanding: |
||||||||||||||||
| Basic |
45,420 | 45,420 | 44,627 | 44,627 | ||||||||||||
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|
|
|
|
|||||||||
| Diluted |
45,420 | 46,018 | 44,952 | 44,952 | ||||||||||||
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|
|
|
|
|
|
|
|||||||||
| EBITDA |
$ | (6,243 | ) | $ | 38,120 | $ | 30,995 | $ | 33,037 | |||||||
|
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|
|
|
|
|
|
|||||||||
| (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) | In 2012, the difference relates to acquisition activity costs 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 impairment charge primarily for the write down on certain assets classified as held for sale that is excluded in the adjusted presentation. |
| Mobile Mini, Inc. News Release August 9, 2013 |
Page 4 |
Mobile Mini, Inc. Condensed Consolidated Statements of Operations
(Unaudited)/(in thousands except per share data)/(includes effects of rounding)
| Six Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
| 2013 Actual |
2013 Adjusted (1) |
2012 Actual |
2012 Adjusted (1) |
|||||||||||||
| Revenues: |
||||||||||||||||
| Leasing |
$ | 173,290 | $ | 173,290 | $ | 160,368 | $ | 160,368 | ||||||||
| Sales |
21,312 | 21,312 | 20,554 | 20,554 | ||||||||||||
| Other |
861 | 861 | 1,048 | 1,048 | ||||||||||||
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|
|||||||||
| Total revenues |
195,463 | 195,463 | 181,970 | 181,970 | ||||||||||||
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|
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| Costs and expenses: |
||||||||||||||||
| Cost of sales |
14,352 | 14,352 | 12,478 | 12,478 | ||||||||||||
| Leasing, selling and general expenses (2) |
110,610 | 110,610 | 108,964 | 108,825 | ||||||||||||
| Merger and restructuring expenses (3) |
718 | — | 763 | — | ||||||||||||
| Asset impairment charge (4) |
40,277 | — | — | — | ||||||||||||
| Depreciation and amortization |
17,644 | 17,644 | 18,145 | 18,145 | ||||||||||||
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|
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|
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| Total costs and expenses |
183,601 | 142,606 | 140,350 | 139,448 | ||||||||||||
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|
|||||||||
| Income from operations |
11,862 | 52,857 | 41,620 | 42,522 | ||||||||||||
| Other income (expense): |
||||||||||||||||
| Interest income |
— | — | 1 | 1 | ||||||||||||
| Interest expense |
(15,006 | ) | (15,006 | ) | (20,799 | ) | (20,799 | ) | ||||||||
| Deferred financing costs write-off (5) |
— | — | (692 | ) | — | |||||||||||
| Foreign currency exchange |
(1 | ) | (1 | ) | (3 | ) | (3 | ) | ||||||||
|
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|
|
|
|
|
|||||||||
| (Loss) income before (benefit from) provision for income taxes |
(3,145 | ) | 37,850 | 20,127 | 21,721 | |||||||||||
| (Benefit from) provision for income taxes |
(806 | ) | 13,934 | 7,605 | 8,166 | |||||||||||
|
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|
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| Net (loss) income |
$ | (2,339 | ) | $ | 23,916 | $ | 12,522 | $ | 13,555 | |||||||
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|
|
|
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|
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| (Loss) earnings per share: |
||||||||||||||||
| Basic |
$ | (0.05 | ) | $ | 0.53 | $ | 0.28 | $ | 0.30 | |||||||
|
|
|
|
|
|
|
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|
|||||||||
| Diluted |
$ | (0.05 | ) | $ | 0.52 | $ | 0.28 | $ | 0.30 | |||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Weighted average number of common and common share equivalents outstanding: |
||||||||||||||||
| Basic |
45,334 | 45,334 | 44,558 | 44,558 | ||||||||||||
|
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|
|
|
|
|
|
|
|||||||||
| Diluted |
45,334 | 45,876 | 45,006 | 45,006 | ||||||||||||
|
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|
|
|
|
|
|
|
|||||||||
| EBITDA |
$ | 29,505 | $ | 75,879 | $ | 59,763 | $ | 64,064 | ||||||||
|
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|
|
|
|
|
|
|||||||||
| (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) | In 2012, the difference relates to acquisition activity costs 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 impairment charge primarily for the write down on certain assets classified as held for sale that is excluded in the adjusted presentation. |
| (5) | In 2012, this represents a portion of deferred financing costs associated with our prior $850.0 million credit agreement which was replaced with our $900.0 million credit agreement in February 2012. Deferred financing costs write-off is excluded in the adjusted presentation. |
| Mobile Mini, Inc. News Release August 9, 2013 |
Page 5 |
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 June 30, 2013 |
Reconciliation of Adjusted Measurements to Actuals Three Months Ended June 30, 2012 |
|||||||||||||||||||||||||||||||||||||||
| As Adjusted (1) |
Share-based compensation expense (2) |
Merger and restructuring expenses (3) |
Asset impairment charge (5) |
Actual | As Adjusted (1) |
Share-based compensation expense (2) |
Merger and restructuring expenses (3) |
Acquisition expenses (4) |
Actual | |||||||||||||||||||||||||||||||
| Revenues |
$ | 97,522 | $ | — | $ | — | $ | — | $ | 97,522 | $ | 93,220 | $ | — | $ | — | $ | — | $ | 93,220 | ||||||||||||||||||||
| EBITDA |
$ | 38,120 | $ | (3,743 | ) | $ | (343 | ) | $ | (40,277 | ) | $ | (6,243 | ) | $ | 33,037 | $ | (1,730 | ) | (267 | ) | $ | (45 | ) | $ | 30,995 | ||||||||||||||
| EBITDA margin |
39.1 | % | (3.8 | )% | (0.4 | )% | (43.2 | )% | (6.4 | )% | 35.4 | % | (1.9 | )% | (0.3 | )% | $ | — | 33.2 | % | ||||||||||||||||||||
| Operating income (loss) |
$ | 25,544 | $ | — | $ | (343 | ) | $ | (40,277 | ) | $ | (15,076 | ) | $ | 22,177 | $ | — | $ | (267 | ) | $ | (45 | ) | $ | 21,865 | |||||||||||||||
| Operating income (loss) margin |
26.2 | % | — | (0.4 | )% | (43.2 | )% | (15.5 | )% | 23.8 | % | — | (0.3 | )% | $ | — | 23.5 | % | ||||||||||||||||||||||
| Pre tax income (loss) |
$ | 18,089 | $ | — | $ | (343 | ) | $ | (40,277 | ) | $ | (22,531 | ) | $ | 11,994 | $ | — | $ | (267 | ) | $ | (45 | ) | $ | 11,682 | |||||||||||||||
| Net income (loss) |
$ | 11,643 | $ | — | $ | (210 | ) | $ | (25,814 | ) | $ | (14,381 | ) | $ | 7,532 | $ | — | $ | (192 | ) | $ | (28 | ) | $ | 7,312 | |||||||||||||||
| Diluted earnings (loss) per share |
$ | 0.25 | $ | — | $ | (0.01 | ) | $ | (0.56 | ) | $ | (0.32 | ) | $ | 0.17 | $ | — | $ | (0.01 | ) | $ | — | $ | 0.16 | ||||||||||||||||
| Reconciliation of Adjusted Measurements to Actuals Six Months Ended June 30, 2013 |
Reconciliation of Adjusted Measurements to Actuals Six Months Ended June 30, 2012 |
|||||||||||||||||||||||||||||||||||||||||||
| As Adjusted (1) |
Share-based compensation expense (2) |
Merger and restructuring expenses (3) |
Asset impairment charge (5) |
Actual | As Adjusted (1) |
Share-based compensation expense (2) |
Merger and restructuring expenses (3) |
Acquisition expenses (4) |
Deferred Financing costs write- off (6) |
Actual | ||||||||||||||||||||||||||||||||||
| Revenues |
$ | 195,463 | $ | — | $ | — | $ | — | $ | 195,463 | $ | 181,970 | $ | — | $ | — | $ | — | $ | — | $ | 181,970 | ||||||||||||||||||||||
| EBITDA |
$ | 75,879 | $ | (5,379 | ) | $ | (718 | ) | $ | (40,277 | ) | $ | 29,505 | $ | 64,064 | $ | (3,399 | ) | (763 | ) | $ | (139 | ) | $ | — | $ | 59,763 | |||||||||||||||||
| EBITDA margin |
38.8 | % | (2.8 | )% | (0.4 | )% | (22.1 | )% | 15.1 | % | 35.2 | % | (1.9 | )% | (0.4 | )% | (0.1 | )% | $ | — | 32.8 | % | ||||||||||||||||||||||
| Operating income |
$ | 52,857 | $ | — | $ | (718 | ) | $ | (40,277 | ) | $ | 11,862 | $ | 42,522 | $ | — | $ | (763 | ) | $ | (139 | ) | $ | — | $ | 41,620 | ||||||||||||||||||
| Operating income margin |
27.0 | % | — | (0.4 | )% | (22.1 | )% | 6.1 | % | 23.4 | % | — | (0.4 | )% | (0.1 | )% | $ | — | 22.9 | % | ||||||||||||||||||||||||
| Pre tax income (loss) |
$ | 37,850 | $ | — | $ | (718 | ) | $ | (40,277 | ) | $ | (3,145 | ) | $ | 21,721 | $ | — | $ | (763 | ) | $ | (139 | ) | $ | (692 | ) | $ | 20,127 | ||||||||||||||||
| Net income (loss) |
$ | 23,916 | $ | — | $ | (441 | ) | $ | (25,814 | ) | $ | (2,339 | ) | $ | 13,555 | $ | — | $ | (522 | ) | $ | (85 | ) | $ | (426 | ) | $ | 12,522 | ||||||||||||||||
| Diluted earnings (loss) per share |
$ | 0.52 | $ | — | $ | (0.01 | ) | $ | (0.56 | ) | $ | (0.05 | ) | $ | 0.30 | $ | — | $ | (0.01 | ) | $ | — | $ | (0.01 | ) | $ | 0.28 | |||||||||||||||||
| (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 that are excluded in the adjusted presentation. |
| (4) | Represents acquisition activity costs that are excluded in the adjusted presentation. |
| (5) | Represents the impairment charge primarily for the write down on certain assets classified as held for sale that is excluded in the adjusted presentation. |
| (6) | Represents a portion of deferred financing costs associated with our prior $850.0 million credit agreement which was replaced with our $900.0 million credit agreement in February 2012. Deferred financing costs write-off is excluded in the adjusted presentation. |
| Mobile Mini, Inc. News Release August 9, 2013 |
Page 6 |
Mobile Mini, Inc. Non-GAAP Reconciliations
(in thousands)/(includes effects of rounding)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Reconciliation of EBITDA to net cash provided by operating activities: |
||||||||||||||||
| EBITDA |
$ | (6,243 | ) | $ | 30,995 | $ | 29,505 | $ | 59,763 | |||||||
| Interest paid |
(10,829 | ) | (15,581 | ) | (13,221 | ) | (18,628 | ) | ||||||||
| Income and franchise taxes paid |
(698 | ) | (548 | ) | (785 | ) | (589 | ) | ||||||||
| Share-based compensation expense |
3,743 | 1,730 | 5,379 | 3,586 | ||||||||||||
| Asset impairment charge |
39,704 | — | 39,704 | — | ||||||||||||
| Gain on sale of lease fleet units |
(2,381 | ) | (3,442 | ) | (5,448 | ) | (6,556 | ) | ||||||||
| Loss (gain) on disposal of property, plant and equipment |
90 | (31 | ) | 62 | (44 | ) | ||||||||||
| Changes in certain assets and liabilities, net of effect of business acquired: |
||||||||||||||||
| Receivables |
(1,712 | ) | (2,568 | ) | (822 | ) | 395 | |||||||||
| Inventories |
(848 | ) | 365 | (1,602 | ) | (937 | ) | |||||||||
| Deposits and prepaid expenses |
254 | (303 | ) | (417 | ) | (109 | ) | |||||||||
| Other assets and intangibles |
(103 | ) | 132 | (7 | ) | (105 | ) | |||||||||
| Accounts payable and accrued liabilities |
4,440 | 3,977 | (334 | ) | (3,203 | ) | ||||||||||
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| Net cash provided by operating activities |
$ | 25,417 | $ | 14,726 | $ | 52,014 | $ | 33,573 | ||||||||
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| Reconciliation of net (loss) income to EBITDA and adjusted EBITDA: |
||||||||||||||||
| Net (loss) income |
$ | (14,381 | ) | $ | 7,312 | $ | (2,339 | ) | $ | 12,522 | ||||||
| Interest expense |
7,455 | 10,182 | 15,006 | 20,799 | ||||||||||||
| (Benefit) provision for income taxes |
(8,150 | ) | 4,370 | (806 | ) | 7,605 | ||||||||||
| Depreciation and amortization |
8,833 | 9,131 | 17,644 | 18,145 | ||||||||||||
| Deferred financing costs write-off |
— | — | — | 692 | ||||||||||||
|
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|
|||||||||
| EBITDA |
(6,243 | ) | 30,995 | 29,505 | 59,763 | |||||||||||
| Share-based compensation expense |
3,743 | 1,730 | 5,379 | 3,399 | ||||||||||||
| Merger and restructuring expenses |
343 | 267 | 718 | 763 | ||||||||||||
| Acquisition expenses |
— | 45 | — | 139 | ||||||||||||
| Asset impairment charge |
40,277 | — | 40,277 | — | ||||||||||||
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|
|||||||||
| Adjusted EBITDA |
$ | 38,120 | $ | 33,037 | $ | 75,879 | $ | 64,064 | ||||||||
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| Reconciliation of net cash provided by operating activities to free cash flow: |
||||||||||||||||
| Net cash provided by operating activities |
$ | 25,417 | $ | 14,726 | $ | 52,014 | $ | 33,573 | ||||||||
| Additions to lease fleet |
(7,970 | ) | (9,506 | ) | (14,297 | ) | (19,326 | ) | ||||||||
| Proceeds from sale of lease fleet units |
6,049 | 8,464 | 15,929 | 16,117 | ||||||||||||
| Additions to property, plant and equipment |
(5,374 | ) | (5,596 | ) | (9,654 | ) | (8,555 | ) | ||||||||
| Proceeds from sale of property, plant and equipment |
237 | 151 | 458 | 315 | ||||||||||||
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|
|||||||||
| Net capital expenditures, excluding acquisitions |
(7,058 | ) | (6,487 | ) | (7,564 | ) | (11,449 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Free cash flow |
$ | 18,359 | $ | 8,239 | $ | 44,450 | $ | 22,124 | ||||||||
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|
|
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| Mobile Mini, Inc. News Release August 9, 2013 |
Page 7 |
Mobile Mini, Inc.
Condensed Consolidated Balance Sheets
(in thousands except par value data)
(includes effects of rounding)
| June 30, 2013 |
December 31, 2012 |
|||||||
| (unaudited) | (audited) | |||||||
| ASSETS | ||||||||
| Cash |
$ | 634 | $ | 1,937 | ||||
| Receivables, net |
50,431 | 50,644 | ||||||
| Inventories |
19,634 | 19,534 | ||||||
| Lease fleet, net |
974,486 | 1,031,589 | ||||||
| Property, plant and equipment, net |
77,403 | 80,822 | ||||||
| Assets held for sale |
8,312 | — | ||||||
| Deposits and prepaid expenses |
7,193 | 6,858 | ||||||
| Other assets and intangibles, net |
15,502 | 17,868 | ||||||
| Goodwill |
514,034 | 518,308 | ||||||
|
|
|
|
|
|||||
| Total assets |
$ | 1,667,629 | $ | 1,727,560 | ||||
|
|
|
|
|
|||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Liabilities: |
||||||||
| Accounts payable |
$ | 19,493 | $ | 18,287 | ||||
| Accrued liabilities |
56,086 | 58,485 | ||||||
| Lines of credit |
389,263 | 442,391 | ||||||
| Notes payable |
45 | 310 | ||||||
| Obligations under capital leases |
451 | 642 | ||||||
| Senior Notes |
200,000 | 200,000 | ||||||
| Deferred income taxes |
195,959 | 197,926 | ||||||
|
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|
|
|
|||||
| Total liabilities |
861,297 | 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, 48,475 issued and 46,300 outstanding at June 30, 2013 and 48,211 issued and 46,036 outstanding at December 31, 2012 |
485 | 482 | ||||||
| Additional paid-in capital |
534,293 | 522,372 | ||||||
| Retained earnings |
341,443 | 343,782 | ||||||
| Accumulated other comprehensive loss |
(30,589 | ) | (17,817 | ) | ||||
| Treasury stock, at cost, 2,175 shares |
(39,300 | ) | (39,300 | ) | ||||
|
|
|
|
|
|||||
| Total stockholders’ equity Total liabilities and stockholders’ equity |
806,332 | 809,519 | ||||||
|
|
|
|
|
|||||
| $ | 1,667,629 | $ | 1,727,560 | |||||
|
|
|
|
|
|||||
| Mobile Mini, Inc. News Release August 9, 2013 |
Page 8 |
Mobile Mini, Inc. Condensed Consolidated Statements of Cash Flows
(Unaudited)/(in thousands)/(includes effects of rounding)
| Six Months Ended June 30, | ||||||||
| 2013 | 2012 | |||||||
| Cash Flows From Operating Activities: |
||||||||
| Net (loss) income |
$ | (2,339 | ) | $ | 12,522 | |||
| Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
| Deferred financing costs write-off |
— | 692 | ||||||
| Asset impairment charge |
39,704 | — | ||||||
| Provision for doubtful accounts |
715 | 562 | ||||||
| Amortization of deferred financing costs |
1,405 | 1,779 | ||||||
| Amortization of debt issuance discount |
— | 42 | ||||||
| Amortization of long-term liabilities |
86 | 84 | ||||||
| Share-based compensation expense |
5,379 | 3,586 | ||||||
| Depreciation and amortization |
17,644 | 18,145 | ||||||
| Gain on sale of lease fleet units |
(5,448 | ) | (6,556 | ) | ||||
| Loss (gain) on disposal of property, plant and equipment |
62 | (44 | ) | |||||
| Deferred income taxes |
(980 | ) | 7,605 | |||||
| Foreign currency transaction loss |
1 | 3 | ||||||
| Changes in certain assets and liabilities, net of effect of business acquired: |
||||||||
| Receivables |
(1,537 | ) | (167 | ) | ||||
| Inventories |
(1,602 | ) | (937 | ) | ||||
| Deposits and prepaid expenses |
(417 | ) | (109 | ) | ||||
| Other assets and intangibles |
(7 | ) | (105 | ) | ||||
| Accounts payable |
1,433 | 1,813 | ||||||
| Accrued liabilities |
(2,085 | ) | (5,342 | ) | ||||
|
|
|
|
|
|||||
| Net cash provided by operating activities |
52,014 | 33,573 | ||||||
|
|
|
|
|
|||||
| Cash Flows From Investing Activities: |
||||||||
| Cash paid for business acquired |
— | (3,563 | ) | |||||
| Additions to lease fleet |
(14,297 | ) | (19,326 | ) | ||||
| Proceeds from sale of lease fleet units |
15,929 | 16,117 | ||||||
| Additions to property, plant and equipment |
(9,654 | ) | (8,555 | ) | ||||
| Proceeds from sale of property, plant, and equipment |
458 | 315 | ||||||
|
|
|
|
|
|||||
| Net cash used in investing activities |
(7,564 | ) | (15,012 | ) | ||||
|
|
|
|
|
|||||
| Cash Flows From Financing Activities: |
||||||||
| Net repayments under lines of credit |
(53,128 | ) | (11,614 | ) | ||||
| Deferred financing costs |
— | (7,507 | ) | |||||
| Principal payments on notes payable |
(265 | ) | (238 | ) | ||||
| Principal payments on capital lease obligations |
(191 | ) | (547 | ) | ||||
| Issuance of common stock |
6,395 | 1,846 | ||||||
|
|
|
|
|
|||||
| Net cash used in financing activities |
(47,189 | ) | (18,060 | ) | ||||
|
|
|
|
|
|||||
| Effect of exchange rate changes on cash |
1,436 | (414 | ) | |||||
|
|
|
|
|
|||||
| Net (decrease) increase in cash |
(1,303 | ) | 87 | |||||
| Cash at beginning of period |
1,937 | 2,860 | ||||||
|
|
|
|
|
|||||
| Cash at end of period |
$ | 634 | $ | 2,947 | ||||
|
|
|
|
|
|||||
| Mobile Mini, Inc. News Release August 9, 2013 |
Page 9 |
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 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. 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 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.