Attached files
| file | filename |
|---|---|
| 8-K - 8-K - MOBILE MINI INC | d809296d8k.htm |
Exhibit 99.1
FOR IMMEDIATE RELEASE
MOBILE MINI REPORTS Q3’14 RESULTS
Tempe, AZ – October 23, 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 September 30, 2014. Total revenues were $113.3 million and leasing revenues were $104.8 million, up from $105.0 million and $95.6 million, respectively, for the same period last year. The Company’s third quarter net income was $14.8 million, or $0.32 per diluted share, compared to net income of $14.3 million, or $0.31 per diluted share, respectively, for the third quarter of 2013. On an adjusted basis, third quarter net income was $15.2 million, or $0.33 per diluted share, compared to $13.1 million, or $0.28 per diluted share, respectively, for the third quarter of 2013.
Adjusted EBITDA was $44.4 million and adjusted EBITDA margin was 39.2% for the third quarter of 2014.
Third Quarter 2014 Highlights
| • | Grew leasing revenues 9.7% year-over-year. |
| • | Drove third quarter sequential rental rates 1.5% higher than second quarter 2014 levels. |
| • | Increased rental rates by 8.0% year-over-year, with new units delivered at an 11.5% higher rate than the previous year. |
| • | Improved yield over the previous year by 11.5% to an all-time high of $719 per unit. |
| • | Achieved an adjusted EBITDA margin of 39.2%, 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 $3 million, or 3% of revenues above more normalized levels. |
| • | Adjusted diluted earnings per share was $0.33, up from $0.28 in the third quarter of 2013. |
| • | Average fleet utilization was 67.9%, however, stronger year-over-year rental activations in September increased utilization to 71.0% at September 30, 2014. |
| • | Delivered free cash flow of $31.1 million, the 27th consecutive quarter of positive free cash flow. |
| • | Repurchased $25.0 million of shares during the quarter. |
| • | Acquired three portable storage businesses in the quarter. |
Erik Olsson, Mobile Mini’s President and Chief Executive Officer, commented, “We continued to generate strong results in the third quarter with leasing revenues growing approximately 10% year-over-year. The sales reorganization that was implemented during the second quarter is largely behind us as evidenced by strong and growing activations and improved productivity as we moved through the third quarter. Our underlying adjusted EBITDA margin is already running in the 41-42% range excluding the incremental costs associated with the repair and repositioning of available units to high demand areas. We expect these costs to decline in 2015, and contribute to margin expansion next year.
Mr. Olsson added, “Earlier this year we said that 2014 was a year of change. I’m very pleased to say that our strategic plan is delivering the desired results and has us, in the short term, well along the path to achieving our stated 2014 goals of a year-over-year top-line growth rate and profitability exceeding that of 2013, resulting in higher free cash flow for the year. Longer term, we expect the enhancements we have made over the past year to our fleet and our sales organization to translate into continued strong growth and margin expansion.”
| Mobile Mini, Inc. News Release | Page 2 | |
| October 23, 2014 |
Dividend
The Company’s regular quarterly cash dividend of $0.17 per share will be paid on December 3, 2014 to shareholders of record on November 12, 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, Thursday, October 23, 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 approximately 214,000 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, margin expansion, 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 | |||
| (602) 308-3879 www.mobilemini.com |
(See Accompanying Tables)
| Mobile Mini, Inc. News Release | Page 3 | |
| October 23, 2014 |
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 | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2014 | 2014 | 2013 | 2013 | |||||||||||||
| Actual | Adjusted (1) | Actual | Adjusted (1) | |||||||||||||
| Revenues: |
||||||||||||||||
| Leasing |
$ | 104,798 | $ | 104,798 | $ | 95,559 | $ | 95,559 | ||||||||
| Sales |
7,913 | 7,913 | 8,913 | 8,913 | ||||||||||||
| Other |
611 | 611 | 568 | 568 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total revenues |
113,322 | 113,322 | 105,040 | 105,040 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Costs and expenses: |
||||||||||||||||
| Cost of sales |
5,199 | 5,199 | 5,936 | 5,936 | ||||||||||||
| Leasing, selling and general expenses (2) |
67,889 | 67,852 | 62,621 | 62,621 | ||||||||||||
| Restructuring expenses (3) |
593 | — | 1,335 | — | ||||||||||||
| Asset impairment recovery, net (4) |
— | — | (748 | ) | — | |||||||||||
| Depreciation and amortization |
9,470 | 9,470 | 8,895 | 8,895 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total costs and expenses |
83,151 | 82,521 | 78,039 | 77,452 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income from operations |
30,171 | 30,801 | 27,001 | 27,588 | ||||||||||||
| Other income (expense): |
||||||||||||||||
| Interest expense |
(7,107 | ) | (7,107 | ) | (7,343 | ) | (7,343 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income from continuing operations before income tax provision |
23,064 | 23,694 | 19,658 | 20,245 | ||||||||||||
| Income tax provision |
8,244 | 8,484 | 5,326 | 7,191 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income from continuing operations |
14,820 | 15,210 | 14,332 | 13,054 | ||||||||||||
| Loss from discontinued operation, net of tax (5) |
— | — | (29 | ) | — | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net income |
$ | 14,820 | $ | 15,210 | $ | 14,303 | $ | 13,054 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Earnings per share: |
||||||||||||||||
| Basic: |
||||||||||||||||
| Income from continuing operations |
$ | 0.32 | $ | 0.33 | $ | 0.31 | $ | 0.29 | ||||||||
| Loss from discontinued operation |
— | — | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net Income |
$ | 0.32 | $ | 0.33 | $ | 0.31 | $ | 0.29 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Diluted: |
||||||||||||||||
| Income from continuing operations |
$ | 0.32 | $ | 0.33 | $ | 0.31 | $ | 0.28 | ||||||||
| Loss from discontinued operation |
— | — | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net Income |
$ | 0.32 | $ | 0.33 | $ | 0.31 | $ | 0.28 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Weighted average number of common and common share equivalents outstanding: |
||||||||||||||||
| Basic |
46,001 | 46,001 | 45,511 | 45,511 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Diluted |
46,675 | 46,675 | 46,162 | 46,162 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| EBITDA |
$ | 39,641 | $ | 44,427 | $ | 35,896 | $ | 41,127 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (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 2013, represents the gain upon completion of sale (offset by losses 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. |
| (5) | Represents our Netherlands operation that was sold in December 2013 and reported as a discontinued operation. |
| Mobile Mini, Inc. News Release | Page 4 | |
| October 23, 2014 |
Mobile Mini, Inc.
Condensed Consolidated Statements of Income
(Unaudited)
(in thousands except per share data)
(includes effects of rounding)
| Nine Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2014 | 2014 | 2013 | 2013 | |||||||||||||
| Actual | Adjusted (1) | Actual | Adjusted (1) | |||||||||||||
| Revenues: |
||||||||||||||||
| Leasing |
$ | 296,919 | $ | 296,919 | $ | 268,466 | $ | 268,466 | ||||||||
| Sales |
23,761 | 23,761 | 29,805 | 29,805 | ||||||||||||
| Other |
1,579 | 1,579 | 1,416 | 1,416 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total revenues |
322,259 | 322,259 | 299,687 | 299,687 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Costs and expenses: |
||||||||||||||||
| Cost of sales |
16,131 | 16,131 | 19,941 | 19,941 | ||||||||||||
| Leasing, selling and general expenses (2) |
204,394 | 204,318 | 172,758 | 172,758 | ||||||||||||
| Restructuring expenses (3) |
2,909 | — | 2,053 | — | ||||||||||||
| Asset impairment charge, net (4) |
557 | — | 39,489 | — | ||||||||||||
| Depreciation and amortization |
27,920 | 27,920 | 26,439 | 26,439 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total costs and expenses |
251,911 | 248,369 | 260,680 | 219,138 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income from operations |
70,348 | 73,890 | 39,007 | 80,549 | ||||||||||||
| Other income (expense): |
||||||||||||||||
| Interest expense |
(21,191 | ) | (21,191 | ) | (22,317 | ) | (22,317 | ) | ||||||||
| Foreign currency exchange |
(1 | ) | (1 | ) | (1 | ) | (1 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income from continuing operations before income tax provision |
49,156 | 52,698 | 16,689 | 58,231 | ||||||||||||
| Income tax provision |
17,633 | 18,673 | 4,557 | 21,153 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income from continuing operations |
31,523 | 34,025 | 12,132 | 37,078 | ||||||||||||
| Loss from discontinued operation, net of tax (5) |
— | — | (168 | ) | — | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net income |
$ | 31,523 | $ | 34,025 | $ | 11,964 | $ | 37,078 | ||||||||
|
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|
|
|
|
|
|
|||||||||
| Earnings per share: |
||||||||||||||||
| Basic: |
||||||||||||||||
| Income from continuing operations |
$ | 0.68 | $ | 0.74 | $ | 0.26 | $ | 0.82 | ||||||||
| Loss from discontinued operation |
— | — | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net Income |
$ | 0.68 | $ | 0.74 | $ | 0.26 | $ | 0.82 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Diluted: |
||||||||||||||||
| Income from continuing operations |
$ | 0.67 | $ | 0.73 | $ | 0.26 | $ | 0.81 | ||||||||
| Loss from discontinued operation |
— | — | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net Income |
$ | 0.67 | $ | 0.73 | $ | 0.26 | $ | 0.81 | ||||||||
|
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|
|
|
|
|
|
|
|||||||||
| Weighted average number of common and common share equivalents outstanding: |
||||||||||||||||
| Basic |
46,128 | 46,128 | 45,394 | 45,394 | ||||||||||||
|
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|
|
|
|
|
|
|
|||||||||
| Diluted |
46,846 | 46,846 | 45,972 | 45,972 | ||||||||||||
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|
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|
|||||||||
| EBITDA |
$ | 98,267 | $ | 113,106 | $ | 65,445 | $ | 117,010 | ||||||||
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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 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 (offset by gains upon completion of sale) 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 | |
| October 23, 2014 |
Mobile Mini, Inc.
Condensed Consolidated Balance Sheets
(in thousands except par value data)
(includes effects of rounding)
| September 30, 2014 |
December 31, 2013 |
|||||||
| (unaudited) | (audited) | |||||||
| ASSETS | ||||||||
| Cash |
$ | 1,612 | $ | 1,256 | ||||
| Receivables, net |
60,951 | 53,104 | ||||||
| Inventories |
17,584 | 18,744 | ||||||
| Lease fleet, net |
974,035 | 979,276 | ||||||
| Property, plant and equipment, net |
95,322 | 85,153 | ||||||
| Assets held for sale |
— | 980 | ||||||
| Deposits and prepaid expenses |
7,108 | 6,116 | ||||||
| Other assets and intangibles, net |
11,900 | 13,523 | ||||||
| Goodwill |
525,623 | 519,222 | ||||||
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|
|||||
| Total assets |
$ | 1,694,135 | $ | 1,677,374 | ||||
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|||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Liabilities: |
||||||||
| Accounts payable |
$ | 23,841 | $ | 18,862 | ||||
| Accrued liabilities |
61,936 | 65,308 | ||||||
| Lines of credit |
307,388 | 319,314 | ||||||
| Obligations under capital leases |
18,926 | 8,781 | ||||||
| Senior Notes |
200,000 | 200,000 | ||||||
| Deferred income taxes |
226,500 | 209,565 | ||||||
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|
|
|||||
| Total liabilities |
838,591 | 821,830 | ||||||
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|
|||||
| 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, 48,926 issued and 46,081 outstanding at September 30, 2014 and 48,810 issued and 46,626 outstanding at December 31, 2013 |
489 | 488 | ||||||
| Additional paid-in capital |
564,531 | 550,387 | ||||||
| Retained earnings |
375,421 | 359,778 | ||||||
| Accumulated other comprehensive loss |
(19,761 | ) | (15,440 | ) | ||||
| Treasury stock, at cost, 2,845 and 2,184 shares at September 30, 2014 and December 31, 2013, respectively |
(65,136 | ) | (39,669 | ) | ||||
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|
|
|
|||||
| Total stockholders’ equity |
855,544 | 855,544 | ||||||
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|
|
|
|||||
| Total liabilities and stockholders’ equity |
$ | 1,694,135 | $ | 1,677,374 | ||||
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|
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| Mobile Mini, Inc. News Release | Page 6 | |
| October 23, 2014 |
Mobile Mini, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(in thousands)
(includes effects of rounding)
| Nine Months Ended September 30, |
||||||||
| 2014 | 2013 | |||||||
| Cash Flows From Operating Activities: |
||||||||
| Net income |
$ | 31,523 | $ | 11,964 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
| Asset impairment charge, net |
557 | 38,953 | ||||||
| Provision for doubtful accounts |
2,057 | 1,288 | ||||||
| Amortization of deferred financing costs |
2,108 | 2,108 | ||||||
| Amortization of long-term liabilities |
124 | 128 | ||||||
| Share-based compensation expense |
11,573 | 10,769 | ||||||
| Depreciation and amortization |
27,920 | 26,586 | ||||||
| Gain on sale of lease fleet units |
(4,496 | ) | (7,698 | ) | ||||
| Gain on disposal of property, plant and equipment |
(181 | ) | (56 | ) | ||||
| Deferred income taxes |
17,333 | 4,249 | ||||||
| Foreign currency transaction loss |
1 | 1 | ||||||
| Changes in certain assets and liabilities, net of effect of businesses acquired: |
||||||||
| Receivables |
(9,883 | ) | (5,297 | ) | ||||
| Inventories |
1,125 | (2,397 | ) | |||||
| Deposits and prepaid expenses |
(920 | ) | 19 | |||||
| Other assets and intangibles |
28 | 12 | ||||||
| Accounts payable |
5,106 | 2,768 | ||||||
| Accrued liabilities |
3,783 | 2,077 | ||||||
|
|
|
|
|
|||||
| Net cash provided by operating activities |
87,758 | 85,474 | ||||||
|
|
|
|
|
|||||
| Cash Flows From Investing Activities: |
||||||||
| Cash paid for businesses acquired |
(20,014 | ) | — | |||||
| Additions to lease fleet, excluding acquisitions |
(16,310 | ) | (23,611 | ) | ||||
| Proceeds from sale of lease fleet units |
17,813 | 25,411 | ||||||
| Additions to property, plant and equipment |
(11,677 | ) | (10,651 | ) | ||||
| Proceeds from sale of property, plant, and equipment |
3,374 | 1,013 | ||||||
|
|
|
|
|
|||||
| Net cash used in investing activities |
(26,814 | ) | (7,838 | ) | ||||
|
|
|
|
|
|||||
| Cash Flows From Financing Activities: |
||||||||
| Net repayments under lines of credit |
(11,926 | ) | (83,733 | ) | ||||
| Principal payments on notes payable |
— | (310 | ) | |||||
| Principal payments on capital lease obligations |
(1,346 | ) | (289 | ) | ||||
| Issuance of common stock |
2,572 | 6,467 | ||||||
| Dividend payments |
(23,583 | ) | — | |||||
| Purchase of treasury stock |
(25,467 | ) | — | |||||
|
|
|
|
|
|||||
| Net cash used in financing activities |
(59,750 | ) | (77,865 | ) | ||||
|
|
|
|
|
|||||
| Effect of exchange rate changes on cash |
(838 | ) | 360 | |||||
|
|
|
|
|
|||||
| Net increase in cash |
356 | 131 | ||||||
| Cash at beginning of period |
1,256 | 1,937 | ||||||
|
|
|
|
|
|||||
| Cash at end of period |
$ | 1,612 | $ | 2,068 | ||||
|
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|
|
|
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| Supplemental Disclosure of Cash Flow Information: |
||||||||
| Equipment acquired through capital lease obligations |
$ | 11,491 | $ | 1,492 | ||||
|
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|
|
|
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| Mobile Mini, Inc. News Release | Page 7 | |
| October 23, 2014 |
Mobile Mini, Inc.
Non-GAAP Reconciliations
(in thousands)
(includes effects of rounding)
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| Reconciliation of EBITDA to net cash provided by operating activities: |
||||||||||||||||
| EBITDA |
$ | 39,641 | $ | 35,896 | $ | 98,267 | $ | 65,445 | ||||||||
| Discontinued operation |
— | 24 | — | (20 | ) | |||||||||||
| Interest paid |
(2,203 | ) | (2,552 | ) | (14,494 | ) | (15,773 | ) | ||||||||
| Income and franchise taxes paid |
(167 | ) | (177 | ) | (945 | ) | (962 | ) | ||||||||
| Share-based compensation expense |
4,432 | 5,390 | 11,573 | 10,769 | ||||||||||||
| Asset impairment (recovery) charge, net |
— | (751 | ) | 557 | 38,953 | |||||||||||
| Gain on sale of lease fleet units |
(2,001 | ) | (2,250 | ) | (4,496 | ) | (7,698 | ) | ||||||||
| Gain on disposal of property, plant and equipment |
(540 | ) | (118 | ) | (181 | ) | (56 | ) | ||||||||
| Changes in certain assets and liabilities, net of effect of businesses acquired: |
||||||||||||||||
| Receivables |
(6,566 | ) | (3,187 | ) | (7,826 | ) | (4,009 | ) | ||||||||
| Inventories |
1,070 | (795 | ) | 1,125 | (2,397 | ) | ||||||||||
| Deposits and prepaid expenses |
936 | 436 | (920 | ) | 19 | |||||||||||
| Other assets and intangibles |
39 | 19 | 28 | 12 | ||||||||||||
| Accounts payable and accrued liabilities |
3,832 | 1,525 | 5,070 | 1,191 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net cash provided by operating activities |
$ | 38,473 | $ | 33,460 | $ | 87,758 | $ | 85,474 | ||||||||
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|
|||||||||
| Reconciliation of net income to EBITDA and adjusted EBITDA: |
||||||||||||||||
| Net income |
$ | 14,820 | $ | 14,303 | $ | 31,523 | $ | 11,964 | ||||||||
| Loss from discontinued operation, net of tax |
— | 29 | — | 168 | ||||||||||||
| Interest expense |
7,107 | 7,343 | 21,191 | 22,317 | ||||||||||||
| Income tax provision |
8,244 | 5,326 | 17,633 | 4,557 | ||||||||||||
| Depreciation and amortization |
9,470 | 8,895 | 27,920 | 26,439 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| EBITDA |
39,641 | 35,896 | 98,267 | 65,445 | ||||||||||||
| Share-based compensation expense |
4,156 | 4,644 | 11,297 | 10,023 | ||||||||||||
| Restructuring expenses |
593 | 1,335 | 2,909 | 2,053 | ||||||||||||
| Acquisition expenses |
37 | — | 76 | — | ||||||||||||
| Asset impairment (recovery) charge, net |
— | (748 | ) | 557 | 39,489 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Adjusted EBITDA |
$ | 44,427 | $ | 41,127 | $ | 113,106 | $ | 117,010 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Reconciliation of net cash provided by operating activities to free cash flow: |
||||||||||||||||
| Net cash provided by operating activities |
$ | 38,473 | $ | 33,460 | $ | 87,758 | $ | 85,474 | ||||||||
| Additions to lease fleet, excluding acquisitions |
(8,160 | ) | (9,314 | ) | (16,310 | ) | (23,611 | ) | ||||||||
| Proceeds from sale of lease fleet units |
5,794 | 9,482 | 17,813 | 25,411 | ||||||||||||
| Additions to property, plant and equipment |
(6,936 | ) | (997 | ) | (11,677 | ) | (10,651 | ) | ||||||||
| Proceeds from sale of property, plant and equipment |
1,923 | 555 | 3,374 | 1,013 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net capital expenditures, excluding acquisitions |
(7,379 | ) | (274 | ) | (6,800 | ) | (7,838 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Free cash flow |
$ | 31,094 | $ | 33,186 | $ | 80,958 | $ | 77,636 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Mobile Mini, Inc. News Release | Page 8 | |
| October 23, 2014 |
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 September 30, 2014 | ||||||||||||||||||||
| Share-based | ||||||||||||||||||||
| compensation | Restructuring | Acquisition | ||||||||||||||||||
| As Adjusted (1) | expense (2) | expenses (3) | expenses (4) | Actual | ||||||||||||||||
| Revenues |
$ | 113,322 | $ | — | $ | — | $ | — | $ | 113,322 | ||||||||||
| EBITDA |
$ | 44,427 | $ | (4,156 | ) | $ | (593 | ) | $ | (37 | ) | $ | 39,641 | |||||||
| EBITDA margin |
39.2 | % | (3.7 | )% | (0.5 | )% | — | 35.0 | % | |||||||||||
| Operating income |
$ | 30,801 | $ | — | $ | (593 | ) | $ | (37 | ) | $ | 30,171 | ||||||||
| Operating income margin |
27.2 | % | — | (0.5 | )% | — | 26.6 | % | ||||||||||||
| Pre tax income |
$ | 23,694 | $ | — | $ | (593 | ) | $ | (37 | ) | $ | 23,064 | ||||||||
| Net income |
$ | 15,210 | $ | — | $ | (367 | ) | $ | (23 | ) | $ | 14,820 | ||||||||
| Diluted earnings per share |
$ | 0.33 | $ | — | $ | (0.01 | ) | $ | — | $ | 0.32 | |||||||||
| Reconciliation of Adjusted Measurements to Actuals | ||||||||||||||||||||||||||||
| Three Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
| Share-based | Asset | Loss from | ||||||||||||||||||||||||||
| compensation | Restructuring | impairment | Income tax | discontinued | ||||||||||||||||||||||||
| As Adjusted (1) | expense (2) | expenses (3) | recovery, net (5) | benefit (6) | operation, net (7) | Actual | ||||||||||||||||||||||
| Revenues |
$ | 105,040 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 105,040 | ||||||||||||||
| EBITDA |
$ | 41,127 | $ | (4,644 | ) | $ | (1,335 | ) | $ | 748 | $ | — | $ | — | $ | 35,896 | ||||||||||||
| EBITDA margin |
39.2 | % | (4.4 | )% | (1.3 | )% | 0.7 | % | — | — | 34.2 | % | ||||||||||||||||
| Operating income |
$ | 27,588 | $ | — | $ | (1,335 | ) | $ | 748 | $ | — | $ | — | $ | 27,001 | |||||||||||||
| Operating income margin |
26.3 | % | — | (1.3 | )% | 0.7 | % | — | — | 25.7 | % | |||||||||||||||||
| Pre tax income from continuing operations |
$ | 20,245 | $ | — | $ | (1,335 | ) | $ | 748 | $ | — | $ | — | $ | 19,658 | |||||||||||||
| Net income |
$ | 13,054 | $ | — | $ | (848 | ) | $ | 465 | $ | 1,661 | $ | (29 | ) | $ | 14,303 | ||||||||||||
| Diluted earnings per share |
$ | 0.28 | $ | — | $ | (0.02 | ) | $ | 0.01 | $ | 0.04 | $ | — | $ | 0.31 | |||||||||||||
| (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) | Represents acquisition activity costs that are excluded in the adjusted presentation. |
| (5) | Represents the impairment charge (offset by gains upon completion of sale) primarily for the write down on certain assets 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 a discontinued operation. |
| Mobile Mini, Inc. News Release | Page 9 | |
| October 23, 2014 |
Mobile Mini, Inc.
Non-GAAP Reconciliations
(in thousands except per share data)
(includes effects of rounding)
| Reconciliation of Adjusted Measurements to Actuals | ||||||||||||||||||||||||
| Nine Months Ended September 30, 2014 | ||||||||||||||||||||||||
| Share-based | Asset | |||||||||||||||||||||||
| compensation | Restructuring | Acquisition | impairment | |||||||||||||||||||||
| As Adjusted (1) | expense (2) | expenses (3) | expenses (4) | charge, net (5) | Actual | |||||||||||||||||||
| Revenues |
$ | 322,259 | $ | — | $ | — | $ | — | $ | — | $ | 322,259 | ||||||||||||
| EBITDA |
$ | 113,106 | $ | (11,297 | ) | $ | (2,909 | ) | $ | (76 | ) | $ | (557 | ) | $ | 98,267 | ||||||||
| EBITDA margin |
35.1 | % | (3.5 | )% | (0.9 | )% | — | (0.2 | )% | 30.5 | % | |||||||||||||
| Operating income |
$ | 73,890 | $ | — | $ | (2,909 | ) | $ | (76 | ) | $ | (557 | ) | $ | 70,348 | |||||||||
| Operating income margin |
22.9 | % | — | (0.9 | )% | — | (0.2 | )% | 21.8 | % | ||||||||||||||
| Pre tax income |
$ | 52,698 | $ | — | $ | (2,909 | ) | $ | (76 | ) | $ | (557 | ) | $ | 49,156 | |||||||||
| Net income |
$ | 34,025 | $ | — | $ | (2,089 | ) | $ | (47 | ) | $ | (366 | ) | $ | 31,523 | |||||||||
| Diluted earnings per share |
$ | 0.73 | $ | — | $ | (0.05 | ) | $ | — | $ | (0.01 | ) | $ | 0.67 | ||||||||||
| Reconciliation of Adjusted Measurements to Actuals | ||||||||||||||||||||||||||||
| Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
| Share-based | Asset | Loss from | ||||||||||||||||||||||||||
| compensation | Restructuring | impairment | Income tax | discontinued | ||||||||||||||||||||||||
| As Adjusted (1) | expense (2) | expenses (3) | charge, net (5) | benefit (6) | operation, net (7) | Actual | ||||||||||||||||||||||
| Revenues |
$ | 299,687 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 299,687 | ||||||||||||||
| EBITDA |
$ | 117,010 | $ | (10,023 | ) | $ | (2,053 | ) | $ | (39,489 | ) | $ | — | $ | — | $ | 65,445 | |||||||||||
| EBITDA margin |
39.0 | % | (3.3 | )% | (0.7 | )% | (13.2 | )% | — | — | 21.8 | % | ||||||||||||||||
| Operating income |
$ | 80,549 | $ | — | $ | (2,053 | ) | $ | (39,489 | ) | $ | — | $ | — | $ | 39,007 | ||||||||||||
| Operating income margin |
26.9 | % | — | (0.7 | )% | (13.2 | )% | — | — | 13.0 | % | |||||||||||||||||
| Pre tax income from continuing operations |
$ | 58,231 | $ | — | $ | (2,053 | ) | $ | (39,489 | ) | $ | — | $ | — | $ | 16,689 | ||||||||||||
| Net income |
$ | 37,078 | $ | — | $ | (1,289 | ) | $ | (25,518 | ) | $ | 1,861 | $ | (168 | ) | $ | 11,964 | |||||||||||
| Diluted earnings per share |
$ | 0.81 | $ | — | $ | (0.03 | ) | $ | (0.56 | ) | $ | 0.04 | $ | — | $ | 0.26 | ||||||||||||
| (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) | Represents acquisition activity costs that are excluded in the adjusted presentation. |
| (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 (offset by gains upon completion of sale) primarily for the write down on certain assets 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 a discontinued operation. |
| Mobile Mini, Inc. News Release | Page 10 | |
| October 23, 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.