EX-99.1 2 d423502dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

FOR IMMEDIATE RELEASE

MOBILE MINI REPORTS Q2 2017 RESULTS AND ANNOUNCES QUARTERLY DIVIDEND

Phoenix, AZ – July 21, 2017 – Mobile Mini, Inc. (NASDAQ GS: MINI) (the “Company” or “Mobile Mini”), the world’s leading supplier of portable storage solutions and a leading provider of tank and pump solutions in the United States, today reported actual and adjusted financial results for the quarter ended June 30, 2017. Total revenues were $126.7 million and rental revenues were $117.9 million, as compared to $124.8 million and $116.8 million, respectively, for the same period last year.

Rental revenues for the Storage Solutions and Tank & Pump Solutions businesses for the current quarter were $95.5 million and $22.4 million, respectively.

The Company recorded net income of $8.8 million, or $0.20 per diluted share, in the second quarter of 2017, as compared to net income of $4.1 million, or $0.09 per diluted share, for the second quarter of 2016. On an adjusted basis, second quarter net income was $10.4 million, or $0.24 per diluted share, as compared to adjusted net income of $11.1 million, or $0.25 per diluted share, for the second quarter of 2016. Adjusted EBITDA was $42.0 million and adjusted EBITDA margin was 33.1% for the second quarter of 2017.

Dividend

The Company’s Board of Directors declared a cash dividend of 22.7 cents per share, which will be paid on August 30, 2017 to shareholders of record on August 16, 2017.

Second Quarter 2017 Highlights

 

  •   Delivered a 3.9% increase in Storage Solutions rental revenues on a constant currency basis. Including the impact of unfavorable currency fluctuations, Storage Solutions rental revenues increased 1.5%.

 

  •   Drove a 12.0% year-over-year increase in North America Storage Solutions activations resulting in an all-time high in quarterly core activations.

 

  •   Increased total Storage Solutions average units on rent by 4.3% year-over-year, and 4.7% at June 30, 2017 compared to June 30, 2016.

 

  •   Raised Storage Solutions rental rates by 2.6% year-over-year.

 

  •   Grew rental revenues by 6.8% sequentially in the Tank & Pump Solutions business rental, largely due to increased project work in the diversified business.

 

  •   Achieved adjusted EBITDA of $42.0 million, with an adjusted EBITDA margin of 33.1%.

 

  •   Generated net cash from operating activities of $30.5 million and strong free cash flow of $14.9 million.

CEO Comments

Erik Olsson, Mobile Mini’s President and Chief Executive Officer, remarked, “During the quarter, we drove the highest number of North America Storage Solutions core activations in company history, an increase of 12.0% compared to the same quarter in the prior year. We also achieved total year-over-year rate increases of 2.6% in Storage Solutions, resulting in strong year-over-year growth of 3.9% in rental revenues for that business. Our sales approach and commitment to world-class customer service continue to drive revenue growth.”

Mr. Olsson continued, “Within our Tank & Pump Solutions business, rental revenues were up sequentially in all three customer segments, resulting in an overall increase of 6.8%. The 1.3% year- over-year decrease in Tank & Pump Solutions rental revenue resulted primarily from deferred maintenance activity at certain of our downstream customers, which we expect to be temporary. Diversified rental revenues increased year-over-year, while our upstream business rental revenues were flat. Our outlook for Tank & Pump remains positive for the rest of 2017, although both market fluctuations and the timing of our customers’ projects introduce variability into year-over-year comparisons.”

Conference Call

Mobile Mini will host a conference call today, Friday, July 21 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 will be posted at www.mobilemini.com on the Investor Relations section and will be available in advance and after the call. Please go to the website 15 minutes early to download and install any necessary audio software. If you are unable to listen live, a replay of the call can be accessed for approximately 14 days after the call at Mobile Mini’s website.

About Mobile Mini, Inc.

Mobile Mini, Inc. is the world’s leading provider of storage solutions through its total rental fleet of approximately 211,900 storage solutions containers and office units and a leading provider of tank and pump solutions in the U.S., with a rental fleet of approximately 12,000 units. Mobile Mini’s network is comprised of 156 locations in the U.S., U.K., and Canada. Mobile Mini is included on the Russell 2000® and 3000® Indexes and the S&P Small Cap Index.

Forward-Looking Statements

This news release contains forward-looking statements, including, but not limited to, our approach being able to drive revenue growth, deferred customer maintenance being temporary, our outlook remaining positive, and our ability to continue to be strongly positioned in both the portable storage and specialty containment markets, which involve risks and uncertainties that could cause actual results to differ materially from those currently anticipated. Risks and uncertainties that may affect future results include those that are described from time to time in the Company’s filings with the Securities and Exchange Commission (“SEC”). These forward-looking statements represent the judgment of the Company, as of the date of this release, and Mobile Mini disclaims any intent or obligation to update forward-looking statements.

 

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)

 

2

Mobile Mini, Inc.

Condensed Consolidated Statements of Income

(Unaudited)

(in thousands, except percentages and per share data)

 

     Three Months Ended June 30, 2017     Three Months Ended June 30, 2016  
     Actual     Adjustments     Adjusted (1)     Actual     Adjustments     Adjusted (2)  

Revenues:

             

Rental

    $ 117,851     $ —       $ 117,851     $ 116,773     $ —       $ 116,773  

Sales

      8,401       —         8,401       6,342       —         6,342  

Other

      438       —         438       1,734       (1,365 )      369  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total revenues

      126,690       —         126,690       124,849       (1,365 )      123,484  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Costs and expenses:

             

Rental, selling and general expenses

      82,850       (2,056 )      80,794       78,037       —         78,037  

Cost of sales

      5,408       —         5,408       3,678       —         3,678  

Restructuring expenses

      538       (538 )      —         1,324       (1,324 )      —    

Depreciation and amortization

      15,742       —         15,742       16,269       —         16,269  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total costs and expenses

      104,538       (2,594 )      101,944       99,308       (1,324 )      97,984  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income from operations

      22,152       2,594       24,746       25,541       (41 )      25,500  

Other income (expense):

             

Interest income

      16       —         16       —         —         —    

Interest expense

      (8,807 )      —         (8,807 )      (8,002 )      —         (8,002 ) 

Debt extinguishment expense

      —         —         —         (9,192 )      9,192       —    

Deferred financing costs write-off

      —         —         —         (2,271 )      2,271       —    

Foreign currency exchange

      (18 )      —         (18 )      (4 )      —         (4 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income before income tax provision

      13,343       2,594       15,937       6,072       11,422       17,494  

Income tax provision

      4,566       994       5,560       2,000       4,373       6,373  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income

    $ 8,777     $ 1,600     $ 10,377     $ 4,072     $ 7,049     $ 11,121  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

EBITDA/Adjusted EBITDA

    $ 37,892       $ 41,960     $ 41,806       $ 43,388  

EBITDA/Adjusted EBITDA as a percentage of total revenues

      29.9 %        33.1 %      33.5 %        35.1 % 

Earnings per share:

             

Basic

    $ 0.20       $ 0.24     $ 0.09       $ 0.25  

Diluted

      0.20         0.24       0.09         0.25  

Weighted average number of common and common share equivalents outstanding:

             

Basic

      43,944         43,944       44,132         44,132  

Diluted

      44,025         44,025       44,505         44,505  

 

(1) Adjusted column for the three months ended June 30, 2017 excludes certain transactions that management believes are not indicative of our business. Adjusted figures are a non-GAAP (defined herein) presentation. See the non-GAAP reconciliations herein and the additional information regarding non-GAAP financial information following in this earnings release. The adjustments for the three-month period ended June 30, 2017 include the following, along with the related tax effects:

 

  •   Reduction of $2.1 million in rental, selling and general expenses to exclude costs related to severance and transition in conjunction with the departure of an executive.

 

  •   Exclusion of $0.5 million in costs related to the restructuring of our business operations.

 

(2) Adjusted column for the three months ended June 30, 2016 excludes certain transactions that management believes are not indicative of our business. Adjusted figures are a non-GAAP presentation. See the non-GAAP reconciliations herein and the additional information regarding non-GAAP financial information following in this earnings release. The adjustments for the three-month period ended June 30, 2016 include the following, along with the related tax effects.

 

  •   Reduction of other revenue by $1.4 million to exclude revenue associated with a sales tax refund.

 

  •   Exclusion of costs of $1.3 million related to the restructuring of our business operations.

 

  •   Exclusion of $9.2 million of debt extinguishment costs to redeem the Company’s $200 million 7.785% senior notes due December 2020 (the “2020 Notes”).

 

  •   Exclusion of $2.3 million of deferred financing costs that were written off in conjunction with the redemption of the 2020 Notes.

 

3

Mobile Mini, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

(in thousands, except percentages and per share data)

 

     Six Months Ended June 30, 2017     Six Months Ended June 30, 2016  
     Actual     Adjustments     Adjusted (1)     Actual     Adjustments     Adjusted (2)  

Revenues:

             

Rental

    $ 232,593     $ —       $ 232,593     $ 234,129     $ —       $ 234,129  

Sales

      16,379       —         16,379       13,233       —         13,233  

Other

      1,245       —         1,245       2,020       (1,365 )      655  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total revenues

      250,217       —         250,217       249,382       (1,365 )      248,017  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Costs and expenses:

             

Rental, selling and general expenses

      161,209       (2,386 )      158,823       154,339       —         154,339  

Cost of sales

      10,520       —         10,520       8,289       —         8,289  

Restructuring expenses

      1,437       (1,437 )      —         3,572       (3,572 )      —    

Depreciation and amortization

      31,006       —         31,006       31,446       —         31,446  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total costs and expenses

      204,172       (3,823 )      200,349       197,646       (3,572 )      194,074  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income from operations

      46,045       3,823       49,868       51,736       2,207       53,943  

Other income (expense):

             

Interest income

      16       —         16       —         —         —    

Interest expense

      (17,209 )      —         (17,209 )      (16,486 )      —         (16,486 ) 

Debt extinguishment expense

      —         —         —         (9,192 )      9,192       —    

Deferred financing costs write-off

      —         —         —         (2,271 )      2,271       —    

Foreign currency exchange

      (27 )      —         (27 )      (4 )      —         (4 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income before income tax provision

      28,825       3,823       32,648       23,783       13,670       37,453  

Income tax provision

      9,896       1,450       11,346       8,713       5,260       13,973  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income

    $ 18,929     $ 2,373     $ 21,302     $ 15,070     $ 8,410     $ 23,480  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

EBITDA/Adjusted EBITDA

    $ 77,040       $ 83,648     $ 83,178       $ 89,572  

EBITDA/Adjusted EBITDA as a percentage of total revenues

      30.8 %        33.4 %      33.4 %        36.1 % 

Earnings per share:

             

Basic

    $ 0.43       $ 0.48     $ 0.34       $ 0.53  

Diluted

      0.43         0.48       0.34         0.53  

Weighted average number of common and common share equivalents outstanding:

             

Basic

      44,026         44,026       44,175         44,175  

Diluted

      44,183         44,183       44,420         44,420  

 

(1) Adjusted column for the six months ended June 30, 2017 excludes certain transactions that management believes are not indicative of our business. Adjusted figures are a non-GAAP presentation. See the non-GAAP reconciliations herein and the additional information regarding non-GAAP financial information following in this earnings release. The adjustments for the six-month period ended June 30, 2017 include the following, along with the related tax effects:

 

  •   Reduction of $0.1 million in rental, selling and general expenses for acquisition-related expenses.

 

  •   Reduction of $2.3 million in rental, selling and general expenses to exclude costs related to severance and transition in conjunction with the departure of executives.

 

  •   Exclusion of $1.4 million in costs related to the restructuring of our business operations.

 

(2) Adjusted column for the six months ended June 30, 2016 excludes certain transactions that management believes are not indicative of our business. Adjusted figures are a non-GAAP presentation. See the non-GAAP reconciliations herein and the additional information regarding non-GAAP financial information following in this earnings release. The adjustments for the six-month period ended June 30, 2016 include the following, along with the related tax effects.

 

  •   Reduction of other revenue by $1.4 million to exclude revenue associated with a sales tax refund.

 

  •   Exclusion of costs of $3.6 million related to the restructuring of our business operations.

 

  •   Exclusion of $9.2 million of debt extinguishment costs to redeem the 2020 Notes.

 

  •   Exclusion of $2.3 million of deferred financing costs that were written off in conjunction with the redemption of the 2020 Notes.

 

4

Mobile Mini, Inc.

Operating Data

(Unaudited)

 

     2017     2016  

As of June 30:

     

Stand-alone Storage Solutions locations

      123       127  

Stand-alone Tank & Pump Solutions locations

      18       19  

Combined Storage Solutions and Tank & Pump Solutions locations

      15       13  

Storage Solutions rental fleet units

      211,900       206,700  

Tank & Pump Solutions rental fleet units

      12,000       12,000  

Average utilization - Three months ended June 30:

     

Storage Solutions - utilization based on number of units

      69.4 %      68.4 % 

Tank & Pump Solutions - utilization based on original equipment cost

      64.5 %      63.5 % 

Average utilization - Six months ended June 30:

     

Storage Solutions - utilization based on number of units

      69.2 %      68.4 % 

Tank & Pump Solutions - utilization based on original equipment cost (1)

      63.2 %   

 

(1) Utilization for Tank & Pump Solutions is calculated as the average original cost of equipment on rent, excluding re-rented equipment, divided by the average original cost of equipment in the fleet. This statistic has been calculated since the three-month period ending June 30, 2016; no comparable statistic is available for the prior-year period.

 

5

Mobile Mini, Inc.

Business Segment Information - Adjusted (1)

(Unaudited)

(in thousands, except percentages)

 

     Three Months Ended June 30, 2017     Three Months Ended June 30, 2016  
     Storage
Solutions		     Tank & Pump
Solutions		     Total     Storage
Solutions		     Tank & Pump
Solutions		     Total  

Revenues:

             

Rental

    $ 95,486     $ 22,365     $ 117,851     $ 94,102     $ 22,671     $ 116,773  

Sales

      7,156       1,245       8,401       5,123       1,219       6,342  

Other

      344       94       438       246       123       369  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total revenues

      102,986       23,704       126,690       99,471       24,013       123,484  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Costs and expenses:

             

Rental, selling and general expenses

      64,075       16,719       80,794       62,854       15,183       78,037  

Cost of sales

      4,730       678       5,408       3,056       622       3,678  

Depreciation and amortization

      9,477       6,265       15,742       8,978       7,291       16,269  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total costs and expenses

      78,282       23,662       101,944       74,888       23,096       97,984  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income from operations

    $ 24,704     $ 42     $ 24,746     $ 24,583     $ 917     $ 25,500  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted EBITDA

    $ 35,589     $ 6,371     $ 41,960     $ 35,106     $ 8,282     $ 43,388  

Adjusted EBITDA Margin

      34.6 %      26.9 %      33.1 %      35.3 %      34.5 %      35.1 % 
     Six Months Ended June 30, 2017     Six Months Ended June 30, 2016  
     Storage
Solutions		     Tank & Pump
Solutions		     Total     Storage
Solutions		     Tank & Pump
Solutions		     Total  

Revenues:

             

Rental

    $ 189,292     $ 43,301     $ 232,593     $ 187,830     $ 46,299     $ 234,129  

Sales

      14,020       2,359       16,379       10,415       2,818       13,233  

Other

      1,017       228       1,245       513       142       655  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total revenues

      204,329       45,888       250,217       198,758       49,259       248,017  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Costs and expenses:

             

Rental, selling and general expenses

      125,970       32,853       158,823       123,708       30,631       154,339  

Cost of sales

      9,331       1,189       10,520       6,455       1,834       8,289  

Depreciation and amortization

      18,660       12,346       31,006       17,116       14,330       31,446  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total costs and expenses

      153,961       46,388       200,349       147,279       46,795       194,074  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income (loss) from operations

    $ 50,368     $ (500 )    $ 49,868     $ 51,479     $ 2,464     $ 53,943  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted EBITDA

    $ 71,681     $ 11,967     $ 83,648     $ 72,630     $ 16,942     $ 89,572  

Adjusted EBITDA Margin

      35.1 %      26.1 %      33.4 %      36.5 %      34.4 %      36.1 % 

 

(1) These tables present results by major business segment adjusted to exclude certain transactions that management believes are not indicative of our business. See additional information regarding non-GAAP financial information following in this earnings release.

 

6

Mobile Mini, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

 

     June 30,     December 31,  
     2017     2016  
     (unaudited)     (audited)  
ASSETS     

Cash and cash equivalents

    $ 9,274     $ 4,137  

Receivables, net

      92,390       99,175  

Inventories

      16,399       15,412  

Rental fleet, net

      964,141       950,065  

Property, plant and equipment, net

      150,636       149,197  

Other assets

      17,128       14,930  

Intangibles, net

      65,204       68,420  

Goodwill

      706,602       703,558  
  

 

 

    

 

 

  

Total assets

    $ 2,021,774     $ 2,004,894  
  

 

 

    

 

 

  
LIABILITIES AND STOCKHOLDERS’ EQUITY     

Liabilities:

     

Accounts payable

    $ 30,708     $ 27,388  

Accrued liabilities

      64,956       64,126  

Lines of credit

      637,651       641,160  

Obligations under capital leases

      49,302       50,704  

Senior notes, net

      245,531       245,212  

Deferred income taxes

      231,579       240,690  
  

 

 

    

 

 

  

Total liabilities

      1,259,727       1,269,280  
  

 

 

    

 

 

  

Stockholders’ equity:

     

Common stock

      495       493  

Additional paid-in capital

      597,658       592,071  

Retained earnings

      380,125       362,896  

Accumulated other comprehensive loss

      (69,448 )      (81,047 ) 

Treasury stock

      (146,783 )      (138,799 ) 
  

 

 

    

 

 

  

Total stockholders’ equity

      762,047       735,614  
  

 

 

    

 

 

  

Total liabilities and stockholders’ equity

    $ 2,021,774     $ 2,004,894  
  

 

 

    

 

 

  

 

7

Mobile Mini, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(in thousands)

     Six Months Ended  
     June 30,  
     2017     2016  

Cash flows from operating activities:

     

Net income

    $ 18,929     $ 15,070  

Adjustments to reconcile net income to net cash provided by operating activities:

     

Debt extinguishment expense

      —         9,192  

Deferred financing costs write-off

      —         2,271  

Provision for doubtful accounts

      2,202       2,646  

Amortization of deferred financing costs

      1,030       948  

Amortization of long-term liabilities

      65       58  

Share-based compensation expense

      3,820       4,245  

Depreciation and amortization

      31,006       31,446  

Gain on sale of rental fleet

      (2,826 )      (2,782 ) 

Loss on disposal of property, plant and equipment

      282       689  

Deferred income taxes

      9,151       8,542  

Foreign currency exchange

      27       4  

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

      (465 )      (7,619 ) 
  

 

 

    

 

 

  

Net cash provided by operating activities

      63,221       64,710  
  

 

 

    

 

 

  

Cash flows from investing activities:

     

Cash paid for businesses acquired, net of cash acquired

      —         (9,206 ) 

Additions to rental fleet, excluding acquisitions

      (23,027 )      (28,158 ) 

Proceeds from sale of rental fleet

      6,283       7,409  

Additions to property, plant and equipment, excluding acquisitions

      (8,707 )      (19,263 ) 

Proceeds from sale of property, plant and equipment

      768       1,615  
  

 

 

    

 

 

  

Net cash used in investing activities

      (24,683 )      (47,603 ) 
  

 

 

    

 

 

  

Cash flows from financing activities:

     

Net repayments under lines of credit

      (3,509 )      (20,961 ) 

Proceeds from issuance of 5.875% senior notes due 2024

      —         250,000  

Redemption of 7.875% senior notes due 2020

      —         (200,000 ) 

Debt extinguishment expense

      —         (9,192 ) 

Deferred financing costs

      (12 )      (4,916 ) 

Principal payments on capital lease obligations

      (3,736 )      (2,920 ) 

Issuance of common stock

      1,640       92  

Dividend payments

      (20,119 )      (18,236 ) 

Purchase of treasury stock

      (7,984 )      (7,096 ) 
  

 

 

    

 

 

  

Net cash used in financing activities

      (33,720 )      (13,229 ) 
  

 

 

    

 

 

  

Effect of exchange rate changes on cash

      319       (152 ) 
  

 

 

    

 

 

  

Net change in cash

      5,137       3,726  

Cash and cash equivalents at beginning of period

      4,137       1,613  
  

 

 

    

 

 

  

Cash and cash equivalents at end of period

    $ 9,274     $ 5,339  
  

 

 

    

 

 

  

Equipment and other acquired through capital lease obligations

    $ 2,333     $ 14,258  

Capital expenditures accrued or payable

      8,268       5,507  

 

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Non-GAAP Financial Information

In addition to disclosing financial results that are determined in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company also discloses in this press release certain non-GAAP financial information. These financial measures are not recognized measures under GAAP and they are not intended to be and should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Adjusted net income, adjusted diluted earnings per share, EBITDA, adjusted EBITDA, EBITDA margin, adjusted EBITDA margin, free cash flow and constant currency financial information are non-GAAP financial measures as defined by SEC rules. This non-GAAP financial information may be determined or calculated differently by other companies. Reconciliations of these non-GAAP measurements to the most directly comparable GAAP financial measurements are furnished earlier in this release and as follows:

 

Mobile Mini, Inc.

Adjusted EBITDA GAAP Reconciliations

(Unaudited)

(in thousands)

 

     Three Months Ended
June 30,		      Six Months Ended
June 30,		  
     2017      2016      2017      2016  

Net income

    $ 8,777      $ 4,072      $ 18,929      $ 15,070  

Interest expense

      8,807        8,002        17,209        16,486  

Income tax provision

      4,566        2,000        9,896        8,713  

Depreciation and amortization

      15,742        16,269        31,006        31,446  

Debt extinguishment expense

      —          9,192        —          9,192  

Deferred financing costs write-off

      —          2,271        —          2,271  
  

 

 

     

 

 

     

 

 

     

 

 

  

EBITDA

      37,892        41,806        77,040        83,178  

Share-based compensation expense

      1,474        1,623        2,785        4,187  

Restructuring expenses

      538        1,324        1,437        3,572  

Acquisition-related expenses

      9        —          97        —    

Sales tax refund

      —          (1,365 )       —          (1,365 ) 

Other

      2,047        —          2,289        —    
  

 

 

     

 

 

     

 

 

     

 

 

  

Adjusted EBITDA

    $ 41,960      $ 43,388      $ 83,648      $ 89,572  
  

 

 

     

 

 

     

 

 

     

 

 

  
     Three Months Ended
June 30,		      Six Months Ended
June 30,		  
     2017      2016      2017      2016  

Net cash provided by operating activities

    $ 30,498      $ 29,429      $ 63,221      $ 64,710  

Interest paid

      4,516        10,113        18,187        13,991  

Income and franchise taxes paid

      1,100        1,083        1,100        1,151  

Share-based compensation expense

      (2,509 )       (1,681 )       (3,820 )       (4,245 ) 

Gain on sale of rental fleet

      1,123        1,404        2,826        2,782  

Loss on disposal of property, plant and equipment

      (264 )       (351 )       (282 )       (689 ) 

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

      3,428        1,809        (4,192 )       5,478  
  

 

 

     

 

 

     

 

 

     

 

 

  

EBITDA

    $ 37,892      $ 41,806      $ 77,040      $ 83,178  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

 

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Mobile Mini, Inc.

Free Cash Flow GAAP Reconciliation

(Unaudited)

(in thousands)

 

     Three Months Ended
June 30,		      Six Months Ended
June 30,		  
     2017      2016      2017      2016  

Net cash provided by operating activities

    $ 30,498      $ 29,429      $ 63,221      $ 64,710  
  

 

 

     

 

 

     

 

 

     

 

 

  

Additions to rental fleet, excluding acquisitions

      (13,021 )       (17,274 )       (23,027 )       (28,158 ) 

Proceeds from sale of rental fleet

      1,661        3,439        6,283        7,409  

Additions to property, plant and equipment, excluding acquisitions

      (4,959 )       (10,953 )       (8,707 )       (19,263 ) 

Proceeds from sale of property, plant and equipment

      700        775        768        1,615  
  

 

 

     

 

 

     

 

 

     

 

 

  

Net capital expenditures, excluding acquisitions

      (15,619 )       (24,013 )       (24,683 )       (38,397 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Free cash flow

    $ 14,879      $ 5,416      $ 38,538      $ 26,313  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

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Adjusted net income and adjusted diluted earnings per share. Adjusted net income and related earnings per share information exclude certain transactions that management believes are not indicative of our business. We believe that the inclusion of this non-GAAP presentation makes it easier to compare our financial performance across reporting periods on a consistent basis.

EBITDA and adjusted EBITDA. EBITDA is defined as net income before discontinued operations, net of tax (if applicable), interest expense, income taxes, depreciation and amortization, and debt restructuring or extinguishment expense (if applicable), including any write-off of deferred financing costs. Adjusted EBITDA further excludes certain non-cash expenses, including share-based compensation, as well as transactions that management believes are not indicative of our business. Because EBITDA and adjusted EBITDA, as defined, exclude some but not all items that affect our cash flow from operating activities, they may not be comparable to similarly titled performance measures presented by other companies.

We present EBITDA and adjusted EBITDA because we believe they provide useful information regarding our ability to meet our future debt payment requirements, capital expenditures and working capital requirements and an overall evaluation of our financial condition. EBITDA and adjusted EBITDA have certain limitations as analytical tools and should not be used as substitutes for net income, cash flows from operations, or other consolidated income or cash flow data prepared in accordance with GAAP.

EBITDA and adjusted EBITDA margins are calculated as EBITDA and adjusted EBITDA, respectively, divided by total revenues expressed as a percentage.

Free Cash Flow. Free cash flow is defined as net cash provided by operating activities, minus or plus, net cash used in or provided by investing activities, excluding acquisitions and certain transactions. Free cash flow is a non-GAAP financial measure and is not intended to replace net cash provided by operating activities, the most directly comparable financial measure prepared in accordance with GAAP. We present free cash flow because we believe it provides useful information regarding our liquidity and ability to meet our short-term obligations. In particular, free cash flow indicates the amount of cash available after capital expenditures for, among other things, investments in our existing business, debt service obligations, payment of authorized quarterly dividends, repurchase of our common stock and strategic small acquisitions.

Constant Currency. We calculate the effect of currency fluctuations on current periods by translating the results for our business in the U.K. during the current period using the average exchange rates from the comparative period. We present constant currency information to provide useful information to assess our underlying business excluding the effect of material foreign currency rate fluctuations. Calculated in constant currency, our rental revenues for the three months ended June 30, 2017 were $2.3 million higher than when calculated in accordance with GAAP.

 

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