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8-K - FORM 8-K - MOBILE MINI INCd766865d8k.htm

Exhibit 99.1

 

LOGO

FOR IMMEDIATE RELEASE

MOBILE MINI REPORTS Q2’14 RESULTS

Tempe, AZ – July 30, 2014 — 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, 2014. Total revenues were $106.5 million and leasing revenues were $98.0 million, up from $97.1 million and $88.0 million, respectively, for the same period last year. The Company’s second quarter net income was $9.3 million, or $0.20 per diluted share, compared to a net loss of $14.4 million, or $0.32 per diluted share, respectively, for the second quarter of 2013. Prior year results included a charge of $40.2 million related to the impairment of certain leasing and other assets determined to be either non-core or uneconomic to repair. On an adjusted basis, second quarter net income was $10.8 million, or $0.23 per diluted share, compared to $11.7 million, or $0.25 per diluted share, respectively, for the second quarter of 2013.

Adjusted EBITDA was $36.0 million and adjusted EBITDA margin was 33.8% for the second quarter of 2014.

Second Quarter 2014 Highlights

 

  Grew leasing revenues 11.4% year-over-year.

 

  Drove second quarter sequential rental rates 2.3% higher than first quarter 2014 levels.

 

  Increased rental rates by 7.6% year-over-year, with new units delivered at a 14.0% higher rate than the previous year.

 

  Improved yield over the previous year by 11.5% to an all-time high of $689 per unit.

 

  Achieved an adjusted EBITDA margin of 33.8%, 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 $4 million, or 4% of revenues.

 

  Increased average fleet utilization to 66.6% from 62.0% in the second quarter of 2013.

 

  Delivered free cash flow of $23.2 million compared to $18.3 million for the same period last year, making this quarter the 26th consecutive quarter of positive free cash flow.

 

  Purchased two portable storage businesses effective June 30, 2014 and sold the Belfast, Northern Ireland location.

Erik Olsson, Mobile Mini’s President and Chief Executive Officer, commented, “I am very pleased with our strong double-digit year-over-year increase in leasing revenues, especially considering that we implemented a major reorganization of our sales force during the quarter. In addition, excluding our incremental investments in fleet repairs and repositioning, we produced an adjusted EBITDA margin of approximately 38%, meaning our strategic plan is on track. We also continued to generate strong free cash flow, which we used in part to expand our footprint in North America and plan on entering additional new markets during the second half of the year.”

Mr. Olsson added, “We continue to execute on our strategic plan by refining and enhancing both our sales organization as well as our field operations. With another quarter behind us, we are even more confident on our stated expectations for 2014 of a year-over-year top-line growth rate and profitability exceeding that of 2013, resulting in increased free cash flow generation for the year.”


Mobile Mini, Inc. News Release    Page 2
July 30, 2014   

 

Dividend

The Company’s regular quarterly cash dividend of $0.17 per share will be paid on September 3, 2014 to shareholders of record on August 20, 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, Wednesday, July 30, 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 213,000 portable storage containers and office units with 135 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 ability to execute our strategic plan, growth and profitability, financial performance, ability to enter new markets, and increased free cash flow, 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    Page 3
July 30, 2014   

 

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,
 
     2014
Actual
    2014
Adjusted (1)
    2013
Actual
    2013
Adjusted (1)
 

Revenues:

        

Leasing

   $ 98,041      $ 98,041      $ 88,032      $ 88,032   

Sales

     7,982        7,982        8,660        8,660   

Other

     510        510        443        443   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     106,533        106,533        97,135        97,135   
  

 

 

   

 

 

   

 

 

   

 

 

 

Costs and expenses:

        

Cost of sales

     5,379        5,379        5,518        5,518   

Leasing, selling and general expenses (2)

     68,149        68,116        57,259        57,259   

Restructuring expenses (3)

     1,731        —          343        —     

Asset impairment charge, net (4)

     274        —          40,237        —     

Depreciation and amortization

     9,305        9,305        8,784        8,784   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total costs and expenses

     84,838        82,800        112,141        71,561   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from operations

     21,695        23,733        (15,006     25,574   

Other expense:

        

Interest expense

     (7,097     (7,097     (7,439     (7,439
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations before income tax provision (benefit)

     14,598        16,636        (22,445     18,135   

Income tax provision (benefit)

     5,335        5,856        (8,126     6,460   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations

     9,263        10,780        (14,319     11,675   

Loss from discontinued operation, net of tax (5)

     —          —          (62     —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

   $ 9,263      $ 10,780      $ (14,381   $ 11,675   
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per share:

        

Basic:

        

Income (loss) from continuing operations

   $ 0.20      $ 0.23      $ (0.32   $ 0.26   

Loss from discontinued operation

     —          —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Income (loss)

   $ 0.20      $ 0.23      $ (0.32   $ 0.26   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted:

        

Income (loss) from continuing operations

   $ 0.20      $ 0.23      $ (0.32   $ 0.25   

Loss from discontinued operation

     —          —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Income (loss)

   $ 0.20      $ 0.23      $ (0.32   $ 0.25   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average number of common and common share equivalents outstanding:

        

Basic

     46,235        46,235        45,420        45,420   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

     47,027        47,027        45,420        46,018   
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

   $ 31,000      $ 36,015      $ (6,222   $ 38,101   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(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 2014, represents acquisition activity costs.
(3) Restructuring expenses represent costs relating primarily to the restructuring of our operations that are excluded in the adjusted presentation.
(4) In 2014, represents the additional loss upon completion of sale (offset by gains upon completion of sale) of certain assets that were written down to fair value in the second quarter of 2013 and is excluded in the adjusted presentation.

In 2013, represents the impairment charge primarily for the write down on certain assets 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 a discontinued operation.


Mobile Mini, Inc. News Release    Page 4
July 30, 2014   

 

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,
 
     2014
Actual
    2014
Adjusted (1)
    2013
Actual
    2013
Adjusted (1)
 

Revenues:

        

Leasing

   $ 192,121      $ 192,121      $ 172,907      $ 172,907   

Sales

     15,848        15,848        20,892        20,892   

Other

     968        968        848        848   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     208,937        208,937        194,647        194,647   
  

 

 

   

 

 

   

 

 

   

 

 

 

Costs and expenses:

        

Cost of sales

     10,932        10,932        14,005        14,005   

Leasing, selling and general expenses (2)

     136,505        136,466        110,137        110,137   

Restructuring expenses (3)

     2,316        —          718        —     

Asset impairment charge, net (4)

     557        —          40,237        —     

Depreciation and amortization

     18,450        18,450        17,544        17,544   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total costs and expenses

     168,760        165,848        182,641        141,686   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from operations

     40,177        43,089        12,006        52,961   

Other income (expense):

        

Interest expense

     (14,084     (14,084     (14,974     (14,974

Foreign currency exchange

     (1     (1     (1     (1
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations before income tax provision (benefit)

     26,092        29,004        (2,969     37,986   

Income tax provision (benefit)

     9,389        10,189        (769     13,962   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations

     16,703        18,815        (2,200     24,024   

Loss from discontinued operation, net of tax (5)

     —          —          (139     —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

   $ 16,703      $ 18,815      $ (2,339   $ 24,024   
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per share:

        

Basic:

        

Income (loss) from continuing operations

   $ 0.36      $ 0.41      $ (0.05   $ 0.53   

Loss from discontinued operation

     —          —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Income (loss)

   $ 0.36      $ 0.41      $ (0.05   $ 0.53   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted:

        

Income (loss) from continuing operations

   $ 0.36      $ 0.40      $ (0.05   $ 0.52   

Loss from discontinued operation

     —          —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Income (loss)

   $ 0.36      $ 0.40      $ (0.05   $ 0.52   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average number of common and common share equivalents outstanding:

        

Basic

     46,192        46,192        45,334        45,334   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

     46,932        46,932        45,334        45,876   
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

   $ 58,626      $ 68,679      $ 29,549      $ 75,883   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(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 2014, represents acquisition activity costs.
(3) Restructuring expenses represent costs relating primarily to the restructuring of our operations that are excluded in the adjusted presentation.
(4) In 2014, represents the additional loss upon completion of sale (offset by gains upon completion of sale) of certain assets that were written down to fair value in the second quarter of 2013 and is excluded in the adjusted presentation.

In 2013, represents the impairment charge primarily for the write down on certain assets 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 a discontinued operation.


Mobile Mini, Inc. News Release    Page 5
July 30, 2014   

 

Mobile Mini, Inc.

Non-GAAP Reconciliations

(in thousands)

(includes effects of rounding)

 

    Reconciliation of Adjusted Measurements to Actuals
Three Months Ended June 30, 2014
 
    As
Adjusted (1)
    Share-based
compensation
expense (2)
    Restructuring
expenses (3)
    Acquisition
expenses (4)
    Asset
impairment
charge, net (5)
    Actual  

Revenues

  $ 106,533      $ —        $ —        $ —        $ —        $ 106,533   

EBITDA

  $ 36,015      $ (2,977   $ (1,731   $ (33   $ (274   $ 31,000   

EBITDA margin

    33.8     (2.8 )%      (1.6 )%      —          (0.3 )%      29.1

Operating income

  $ 23,733      $ —        $ (1,731   $ (33   $ (274   $ 21,695   

Operating income margin

    22.3     —          (1.6 )%      —          (0.3 )%      20.4

Pre tax income from continuing operations

  $ 16,636      $ —        $ (1,731   $ (33   $ (274   $ 14,598   

Net income

  $ 10,780      $ —        $ (1,328   $ (20   $ (169   $ 9,263   

Diluted earnings per share

  $ 0.23      $ —        $ (0.03   $ —        $ —        $ 0.20   

 

    Reconciliation of Adjusted Measurements to Actuals
Three Months Ended June 30, 2013
 
    As
Adjusted (1)
    Share-based
compensation
expense (2)
    Restructuring
expenses (3)
    Asset
impairment
charge (5)
    Loss from
discontinued
operation,
net (6)
    Actual  

Revenues

  $ 97,135      $ —        $ —        $ —        $ —        $ 97,135   

EBITDA

  $ 38,101      $ (3,743   $ (343   $ (40,237   $ —        $ (6,222

EBITDA margin

    39.2     (3.9 )%      (0.4 )%      (41.4 )%      —          (6.4 )% 

Operating income (loss)

  $ 25,574      $ —        $ (343   $ (40,237   $ —        $ (15,006

Operating income (loss) margin

    26.3     —          (0.4 )%      (41.4 )%      —          (15.4 )% 

Pre tax income (loss) from continuing operations

  $ 18,135      $ —        $ (343   $ (40,237   $ —        $ (22,445

Net income (loss)

  $ 11,675      $ —        $ (212   $ (25,782   $ (62   $ (14,381

Diluted earnings (loss) per share

  $ 0.25      $ —        $ (0.01   $ (0.56   $ —        $ (0.32

 

(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) Restructuring expenses represent costs relating primarily to the restructuring of our operations that are excluded in the adjusted presentation.
(4) In 2014, represents acquisition activity costs.
(5) In 2014, represents the additional loss upon completion of sale (offset by gains upon completion of sale) of certain assets that were written down to fair value in the second quarter of 2013 and is excluded in the adjusted presentation.

In 2013, represents the impairment charge primarily for the write down on certain assets classified as held for sale and is excluded in the adjusted presentation.

(6) In 2013, represents our Netherlands operation that was sold in December 2013 and reported as a discontinued operation.


Mobile Mini, Inc. News Release    Page 6
July 30, 2014   

 

Mobile Mini, Inc.

Non-GAAP Reconciliations

(in thousands)

(includes effects of rounding)

 

    Reconciliation of Adjusted Measurements to Actuals
Six Months Ended June 30, 2014
 
    As
Adjusted (1)
    Share-based
compensation
expense (2)
    Restructuring
expenses (3)
    Acquisition
expenses (4)
    Asset
impairment
charge, net (5)
    Actual  

Revenues

  $ 208,937      $ —        $ —        $ —        $ —        $ 208,937   

EBITDA

  $ 68,679      $ (7,141   $ (2,316   $ (39   $ (557   $ 58,626   

EBITDA margin

    32.9     (3.4 )%      (1.1 )%      —          (0.3 )%      28.1

Operating income

  $ 43,089      $ —        $ (2,316   $ (39   $ (557   $ 40,177   

Operating income margin

    20.6     —          (1.1 )%      —          (0.3 )%      19.2

Pre tax income from continuing operations

  $ 29,004      $ —        $ (2,316   $ (39   $ (557   $ 26,092   

Net income

  $ 18,815      $ —        $ (1,723   $ (23   $ (366   $ 16,703   

Diluted earnings per share

  $ 0.40      $ —        $ (0.04   $ —        $ —        $ 0.36   
    Reconciliation of Adjusted Measurements to Actuals
Six Months Ended June 30, 2013
 
    As
Adjusted (1)
    Share-based
compensation
expense (2)
    Restructuring
expenses (3)
    Asset
impairment
charge (5)
    Loss from
discontinued
operation, net (6)
    Actual  

Revenues

  $ 194,647      $ —        $ —        $ —        $ —        $ 194,647   

EBITDA

  $ 75,883      $ (5,379   $ (718   $ (40,237   $ —        $ 29,549   

EBITDA margin

    39.0     (2.8 )%      (0.4 )%      (20.7 )%      —          15.2

Operating income

  $ 52,961      $ —        $ (718   $ (40,237   $ —        $ 12,006   

Operating income margin

    27.2     —          (0.4 )%      (20.7 )%      —          6.2

Pre tax income (loss) from continuing operations

  $ 37,986      $ —        $ (718   $ (40,237   $ —        $ (2,969

Net income (loss)

  $ 24,024      $ —        $ (442   $ (25,782   $ (139   $ (2,339

Diluted earnings (loss) per share

  $ 0.52      $ —        $ (0.01   $ (0.56   $ —        $ (0.05

 

(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) Restructuring expenses represent costs relating primarily to the restructuring of our operations that are excluded in the adjusted presentation.
(4) In 2014, represents acquisition activity costs.
(5) In 2014, represents the additional loss upon completion of sale (offset by gains upon completion of sale) of certain assets that were written down to fair value in the second quarter of 2013 and is excluded in the adjusted presentation.

In 2013, represents the impairment charge primarily for the write down on certain assets classified as held for sale and is excluded in the adjusted presentation.

(6) In 2013, represents our Netherlands operation that was sold in December 2013 and reported as a discontinued operation.


Mobile Mini, Inc. News Release    Page 7
July 30, 2014   

 

Mobile Mini, Inc.

Non-GAAP Reconciliations

(in thousands)/(includes effects of rounding)

 

    Three Months Ended June 30,     Six Months Ended June 30,  
    2014     2013     2014     2013  

Reconciliation of EBITDA to net cash provided by operating activities:

       

EBITDA

  $ 31,000      $ (6,222   $ 58,626      $ 29,549   

Discontinued operation

    —          (22     —          (44

Interest paid

    (10,131     (10,829     (12,291     (13,221

Income and franchise taxes paid

    (689     (698     (778     (785

Share-based compensation expense

    2,977        3,743        7,141        5,379   

Asset impairment charge, net

    274        39,704        557        39,704   

Gain on sale of lease fleet units

    (784     (2,381     (2,495     (5,448

Loss on disposal of property, plant and equipment

    287        90        359        62   

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

       

Receivables

    (2,585     (1,712     (1,260     (822

Inventories

    (173     (848     55        (1,602

Deposits and prepaid expenses

    (580     254        (1,856     (417

Other assets and intangibles

    (6     (103     (11     (7

Accounts payable and accrued liabilities

    2,883        4,441        1,238        (334
 

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

  $ 22,473      $ 25,417      $ 49,285      $ 52,014   
 

 

 

   

 

 

   

 

 

   

 

 

 

Reconciliation of net income (loss) to EBITDA and adjusted EBITDA:

       

Net income (loss)

  $ 9,263      $ (14,381   $ 16,703      $ (2,339

Loss from discontinued operation, net of tax

    —          62        —          139   

Interest expense

    7,097        7,439        14,084        14,974   

Income tax provision (benefit)

    5,335        (8,126     9,389        (769

Depreciation and amortization

    9,305        8,784        18,450        17,544   
 

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

    31,000        (6,222     58,626        29,549   

Share-based compensation expense

    2,977        3,743        7,141        5,379   

Restructuring expenses

    1,731        343        2,316        718   

Acquisition expenses

    33        —          39        —     

Asset impairment charge, net

    274        40,237        557        40,237   
 

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

  $ 36,015      $ 38,101      $ 68,679      $ 75,883   
 

 

 

   

 

 

   

 

 

   

 

 

 

Reconciliation of net cash provided by operating activities to free cash flow:

       

Net cash provided by operating activities

  $ 22,473      $ 25,417      $ 49,285      $ 52,014   

Additions to lease fleet, excluding acquisitions

    (4,072     (7,970     (8,150     (14,297

Proceeds from sale of lease fleet units

    6,392        6,049        12,019        15,929   

Additions to property, plant and equipment

    (2,113     (5,374     (4,741     (9,654

Proceeds from sale of property, plant and equipment

    543        237        1,451        458   
 

 

 

   

 

 

   

 

 

   

 

 

 

Net capital proceeds (expenditures), excluding acquisitions

    750        (7,058     579        (7,564
 

 

 

   

 

 

   

 

 

   

 

 

 

Free cash flow

  $ 23,223      $ 18,359      $ 49,864      $ 44,450   
 

 

 

   

 

 

   

 

 

   

 

 

 


Mobile Mini, Inc. News Release    Page 8
July 30, 2014   

 

Mobile Mini, Inc.

Condensed Consolidated Balance Sheets

(in thousands except par value data)/(Includes effects of rounding)

 

    June 30, 2014     December 31, 2013  
    (unaudited)     (audited)  
ASSETS    

Cash

  $ 568      $ 1,256   

Receivables, net

    55,291        53,104   

Inventories

    18,760        18,744   

Lease fleet, net

    980,356        979,276   

Property, plant and equipment, net

    90,155        85,153   

Assets held for sale

    —          980   

Deposits and prepaid expenses

    8,025        6,116   

Other assets and intangibles, net

    12,659        13,523   

Goodwill

    527,660        519,222   
 

 

 

   

 

 

 

Total assets

  $ 1,693,474      $ 1,677,374   
 

 

 

   

 

 

 
LIABILITIES AND STOCKHOLDERS’ EQUITY    

Liabilities:

   

Accounts payable

  $ 21,688      $ 18,862   

Accrued liabilities

    56,783        65,308   

Lines of credit

    300,125        319,314   

Obligations under capital leases

    15,302        8,781   

Senior Notes

    200,000        200,000   

Deferred income taxes

    219,267        209,565   
 

 

 

   

 

 

 

Total liabilities

    813,165        821,830   
 

 

 

   

 

 

 

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, 48,881 issued and 46,685 outstanding at June 30, 2014 and 48,810 issued and 46,626 outstanding at December 31, 2013

    489        488   

Additional paid-in capital

    559,590        550,387   

Retained earnings

    368,536        359,778   

Accumulated other comprehensive loss

    (8,174     (15,440

Treasury stock, at cost, 2,196 and 2,184 shares at June 30, 2014 and December 31, 2013, respectively

    (40,132     (39,669
 

 

 

   

 

 

 

Total stockholders’ equity

    880,309        855,544   
 

 

 

   

 

 

 

Total liabilities and stockholders’ equity

  $ 1,693,474      $ 1,677,374   
 

 

 

   

 

 

 


Mobile Mini, Inc. News Release    Page 9
July 30, 2014   

 

Mobile Mini, Inc.

Condensed Consolidated Statements of Cash Flows

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

 

    Six Months Ended June 30,  
    2014     2013  

Cash Flows From Operating Activities:

   

Net income (loss)

  $ 16,703      $ (2,339

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

   

Asset impairment charge, net

    557        39,704   

Provision for doubtful accounts

    1,349        715   

Amortization of deferred financing costs

    1,405        1,405   

Amortization of long-term liabilities

    83        86   

Share-based compensation expense

    7,141        5,379   

Depreciation and amortization

    18,450        17,644   

Gain on sale of lease fleet units

    (2,495     (5,448

Loss on disposal of property, plant and equipment

    359        62   

Deferred income taxes

    9,189        (980

Foreign currency transaction loss

    1        1   

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

   

Receivables

    (2,609     (1,537

Inventories

    55        (1,602

Deposits and prepaid expenses

    (1,856     (417

Other assets and intangibles

    (11     (7

Accounts payable

    2,431        1,433   

Accrued liabilities

    (1,467     (2,085
 

 

 

   

 

 

 

Net cash provided by operating activities

    49,285        52,014   
 

 

 

   

 

 

 

Cash Flows From Investing Activities:

   

Cash paid for businesses acquired

    (16,260     —     

Additions to lease fleet

    (8,150     (14,297

Proceeds from sale of lease fleet units

    12,019        15,929   

Additions to property, plant and equipment

    (4,741     (9,654

Proceeds from sale of property, plant, and equipment

    1,451        458   
 

 

 

   

 

 

 

Net cash used in investing activities

    (15,681     (7,564
 

 

 

   

 

 

 

Cash Flows From Financing Activities:

   

Net repayments under lines of credit

    (19,189     (53,128

Principal payments on notes payable

    —          (265

Principal payments on capital lease obligations

    (766     (191

Issuance of common stock

    2,062        6,395   

Dividend payments

    (15,719     —     

Purchase of treasury stock

    (463     —     
 

 

 

   

 

 

 

Net cash used in financing activities

    (34,075     (47,189
 

 

 

   

 

 

 

Effect of exchange rate changes on cash

    (217     1,436   
 

 

 

   

 

 

 

Net decrease in cash

    (688     (1,303

Cash at beginning of period

    1,256        1,937   
 

 

 

   

 

 

 

Cash at end of period

  $ 568      $ 634   
 

 

 

   

 

 

 

Supplemental Disclosure of Cash Flow Information:

   

Equipment acquired through capital lease and financing obligations

  $ 7,286      $ —     
 

 

 

   

 

 

 


Mobile Mini, Inc. News Release    Page 10
July 30, 2014   

 

The sale of our Netherlands operation in 2013 is reflected in the financial data herein as a discontinued operation.

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 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.