EX-99.1

Exhibit 99.1

LOGO

FOR IMMEDIATE RELEASE

MOBILE MINI REPORTS Q4 2019 RESULTS AND ANNOUNCES QUARTERLY DIVIDEND

Phoenix, AZ – January 28, 2020 – 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 December 31, 2019.

The Company realized net income of $29.0 million, or $0.66 per diluted share, in the fourth quarter of 2019. On an adjusted basis, fourth quarter net income was $29.8 million, or $0.67 per diluted share, as compared to adjusted net income of $23.7 million, or $0.53 per diluted share, for the same period last year. Adjusted EBITDA was $68.1 million and adjusted EBITDA margin was 42.7% for the fourth quarter of 2019.

Total revenues were $159.3 million and rental revenues were $152.1 million for the fourth quarter of 2019, as compared to $160.9 million and $152.0 million, respectively, for the same period last year. Rental revenues for the Storage Solutions and Tank & Pump Solutions businesses for the current quarter were $125.5 million and $26.6 million, respectively, compared to $122.2 million and $29.9 million for the same period last year.

Dividend

The Company’s Board of Directors declared a cash dividend of 30.3 cents per share, which will be paid on March 11, 2020 to shareholders of record as of February 26, 2020.

Fourth Quarter 2019 Highlights

•

Drove healthy year-over-year growth of 4.1% in North American Storage Solutions rental revenue.

•

Grew consolidated adjusted EBITDA 7.6%, year-over-year, and expanded adjusted EBITDA margin by 340 basis points to 42.7%, driven by a 460 basis point year-over-year increase for Storage Solutions.

•

Generated cash from operating activities of $60.8 million for the quarter and $212.7 million for the full year, resulting in free cash flow of $51.1 million for the quarter and $143.1 million for the year, nearly double the prior year.

•

Raised North American Storage Solutions core (excluding seasonal) rates 4.5% year-over-year, with rates on newly placed units up 5.4%.

•

Maintained strong average OEC utilization rate of 80.6% for Storage Solutions.

•

Further increased return on capital employed to 10.1% as of December 31, 2019, exceeding our weighted average cost of capital and improving 160 basis points from December 31, 2018.

•

Decreased leverage ratio to 3.6x as of December 31, 2019 compared to 4.2x as of December 31, 2018.

•

Completed three acquisitions in the quarter, thereby strengthening our existing operations in Missouri and New York and expanding our serviceable reach in the Bloomington, Illinois market.

CEO Comments

Kelly Williams, Mobile Mini’s President and Chief Executive Officer, remarked, “Our record free cash flow generation in 2019 reflects the strength of our business model and provides us with considerable flexibility in capital allocation. Our strong fourth quarter 2019 financial performance is highlighted by 7.6% year-over-year growth in consolidated adjusted EBITDA, along with margin expansion of 340 basis points to 42.7%. I am especially pleased with the performance of our North America Storage Solutions business which included rental revenue growth of 4.1% and a very robust adjusted EBITDA margin of 47.3%.”

Mr. Williams continued, “In the twelve months ended December 31, 2019, we executed our strategic plan and delivered on our Evergreen model. We also nearly doubled free cash flow in 2019 relative to the prior year. We enter 2020 from a position of operational and financial strength, with a large and diversified customer base and a sustainable operational cadence. On a consolidated basis, in 2020 we expect to continue to grow rental revenues by GDP plus 2% to 3% while expanding adjusted EBITDA margin and generating strong levels of consolidated free cash flow, exceeding 2019 amounts.”

Conference Call

Mobile Mini will host a conference call tomorrow, January 29th at 9 am ET to review these results. To listen to the call live, dial (201) 493-6739 and ask for the Mobile Mini Conference Call or go to www.mobilemini.com and click on the Investor Relations 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 90 days after the call at Mobile Mini’s website.

About Mobile Mini, Inc.

Mobile Mini, Inc. is the world’s leading provider of portable storage solutions through its total rental fleet of approximately 200,200 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 12,700 units. Mobile Mini’s network is comprised of 156 locations in the U.S., U.K., and Canada. Mobile Mini is included on the Russell 2000^® and 3000^® Indexes and the S&P Small Cap Index.

Forward-Looking Statements

This news release contains forward-looking statements, including, but not limited to, our ability to grow our business with existing and new customers, as well as our ability to grow above GDP, expand adjusted EBITDA margins, and generate strong free cash flow, all of which involve risks and uncertainties that could cause actual results to differ materially from those currently anticipated. Risks and uncertainties that may affect future results include those that are described from time to time in the Company’s filings with the Securities and Exchange Commission (“SEC”). These forward-looking statements represent the judgment of the Company, as of the date of this release, and Mobile Mini disclaims any intent or obligation to update forward-looking statements.


CONTACT:	-OR-	INVESTOR RELATIONS COUNSEL:
Van Welch, Executive VP &		The Equity Group Inc.
Chief Financial Officer		Fred Buonocore (212) 836-9607
Mobile Mini, Inc.		Mike Gaudreau (212) 836-9620
(602) 308-3879

Emily Tadano, Director of Treasury & Investor Relations (602) 845-4005

www.mobilemini.com

(See accompanying tables)

Mobile Mini, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

(in thousands, except percentages and per share data)


	Three Months Ended December 31, 2019									Three Months Ended December 31, 2018
	Actual			Adjustments			Adjusted (1)			Actual			Adjustments			Adjusted (2)
Revenues:
Rental	$	152,060		$	—		$	152,060		$	152,048		$	—		$	152,048
Sales		7,149			—			7,149			8,654			—			8,654
Other		57			—			57			167			—			167

Total revenues		159,266			—			159,266			160,869			—			160,869

Costs and expenses:
Rental, selling and general expenses		90,157			(972	)		89,185			95,090			—			95,090
Cost of sales		4,191			—			4,191			5,512			—			5,512
Restructuring expense		—			—			—			700			(700	)		—
Asset impairment charge and loss on divestiture, net		—			—			—			3,862			(3,862	)		—
Depreciation and amortization		17,623			—			17,623			16,794			—			16,794

Total costs and expenses		111,971			(972	)		110,999			121,958			(4,562	)		117,396

Income from operations		47,295			972			48,267			38,911			4,562			43,473
Other income (expense):
Interest expense		(9,633	)		—			(9,633	)		(10,725	)		—			(10,725	)
Foreign currency exchange		(95	)		—			(95	)		(5	)		—			(5	)

Income before income tax provision		37,567			972			38,539			28,181			4,562			32,743
Income tax provision		8,551			226			8,777			13,933			(4,863	)		9,070

Net income	$	29,016		$	746		$	29,762		$	14,248		$	9,425		$	23,673

EBITDA/Adjusted EBITDA	$	64,823					$	68,082		$	55,700					$	63,263
EBITDA/Adjusted EBITDA as a percentage of total revenues		40.7	%					42.7	%		34.6	%					39.3	%
Earnings per share:
Basic	$	0.66					$	0.68		$	0.32					$	0.53
Diluted		0.66						0.67			0.32						0.53
Weighted average number of common and common share equivalents outstanding:
Basic		43,707						43,707			44,353						44,353
Diluted		44,266						44,266			44,885						44,885

(1)

Adjusted column for the three-month period ended December 31, 2019 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 December 31, 2019 include the following, along with the related tax effects:

•

Reduction of rental, selling and general expenses to exclude $0.5 million of expenses related to actual and potential acquisitions.

•

Reduction of rental, selling and general expenses to exclude $0.5 million of expenses related to a realignment of personnel and resources with our current business model and operational needs.

(2)

Adjusted column for the three-month period ended December 31, 2018 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 December 31, 2018 include the following:

•

Exclusion of costs of $0.7 million related to the restructuring of our business operations, along with the related tax effect.

•

Exclusion of an asset impairment charge and loss on divestiture, net of proceeds of $3.9 million related to assets that the Company placed as held for sale, along with the related tax effect.

•

Exclusion of $5.8 million in income tax provision resulting from an out-of-period adjustment recorded in the fourth quarter of 2018 to correct deferred tax assets that had been established in previous years.

Mobile Mini, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

(in thousands, except percentages and per share data)


	Twelve Months Ended December 31, 2019									Twelve Months Ended December 31, 2018
	Actual			Adjustments			Adjusted (1)			Actual			Adjustments			Adjusted (2)
Revenues:
Rental	$	581,657		$	—		$	581,657		$	558,197		$	—		$	558,197
Sales		30,394			—			30,394			34,354			—			34,354
Other		574			—			574			678			—			678

Total revenues		612,625			—			612,625			593,229			—			593,229

Costs and expenses:
Rental, selling and general expenses		369,525			(7,202	)		362,323			364,123			—			364,123
Cost of sales		18,675			—			18,675			22,437			—			22,437
Restructuring expenses		—			—			—			2,006			(2,006	)		—
Asset impairment charge and loss on divestiture, net		—			—			—			102,140			(102,140	)		—
Depreciation and amortization		70,583			—			70,583			67,000			—			67,000

Total costs and expenses		458,783			(7,202	)		451,581			557,706			(104,146	)		453,560

Income from operations		153,842			7,202			161,044			35,523			104,146			139,669
Other income (expense):
Interest income		12			—			12			6			—			6
Interest expense		(41,378	)		—			(41,378	)		(40,904	)		—			(40,904	)
Deferred financing costs write-off		(123	)		123			—			—			—			—
Foreign currency exchange		(274	)		—			(274	)		64			—			64

Income (loss) before income tax provision		112,079			7,325			119,404			(5,311	)		104,146			98,835
Income tax provision		28,345			919			29,264			2,751			22,475			25,226

Net income (loss)	$	83,734		$	6,406		$	90,140		$	(8,062	)	$	81,671		$	73,609

EBITDA/Adjusted EBITDA	$	224,163					$	242,893		$	102,593					$	217,243
EBITDA/Adjusted EBITDA as a percentage of total revenues		36.6	%					39.6	%		17.3	%					36.6	%
Earnings (loss) per share:
Basic	$	1.90					$	2.04		$	(0.18	)				$	1.66
Diluted		1.88						2.02			(0.18	)					1.64
Weighted average number of common and common share equivalents outstanding:
Basic		44,178						44,178			44,295						44,295
Diluted		44,550						44,550			44,295						44,980

(1)

Adjusted column for the twelve months ended December 31, 2019 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 twelve-month period ended December 31, 2019 include the following, along with the related tax effects:

•

Reduction of rental, selling and general expenses to exclude $3.6 million of non-cash share-based compensation related to transition agreements for our Chief Executive Officer who retired as an employee of the Company and assumed the position of Chairman of the Board.

•

Reduction of rental, selling and general expenses to exclude $3.1 million of expenses related to actual and potential acquisitions.

•

Reduction of rental, selling and general expenses to exclude $0.5 million of expenses related to a realignment of personnel and resources with our current business model and operational needs.

•

Exclusion of $0.1 million of deferred financing costs that were written off in conjunction with the amendment of our lines of credit.

(2)

Adjusted column for the twelve months ended December 31, 2018 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 twelve-month period ended December 31, 2018 include the following:

•

Exclusion of $2.0 million related to the restructuring of our business operations, along with the related tax effect.

•

Exclusion of an asset impairment charge and loss on divestiture, net of proceeds of $102.1 million related to assets that the Company placed as held for sale during the period, along with the related tax effect.

•

Exclusion of $2.6 million in income tax benefit resulting from the reversal in the period of a provisional tax expense related to the repatriation of foreign earnings for the impact of the U.S. federal tax reform enacted in the fourth quarter of 2017.

•

Mobile Mini, Inc.

Operating Data

(Unaudited)


	2019			2018
As of December 31:
Stand-alone Storage Solutions locations		120			117
Stand-alone Tank & Pump Solutions locations		20			20
Combined Storage Solutions and Tank & Pump Solutions locations		16			17
Storage Solutions rental fleet units		200,200			195,600
Tank & Pump Solutions rental fleet units		12,700			12,600
Average utilization based on original equipment cost
Three months ended December 31:
Storage Solutions		80.6	%		82.9	%
Tank & Pump Solutions		68.6	%		76.0	%
Twelve months ended December 31:
Storage Solutions		77.9	%		74.2	%
Tank & Pump Solutions		71.1	%		74.0	%

Mobile Mini, Inc.

Business Segment Information - Adjusted (1)

(Unaudited)

(in thousands, except percentages)


	Three Months Ended December 31, 2019
	Storage Solutions
	North America			United Kingdom			Total			Tank & Pump Solutions			Consolidated
Revenues:
Rental	$	106,668		$	18,814		$	125,482		$	26,578		$	152,060
Sales		4,515			1,364			5,879			1,270			7,149
Other		36			—			36			21			57

Total revenues		111,219			20,178			131,397			27,869			159,266

Costs and expenses:
Rental, selling and general expenses		58,106			12,482			70,588			18,597			89,185
Cost of sales		2,578			1,114			3,692			499			4,191
Depreciation and amortization		9,129			1,807			10,936			6,687			17,623

Total costs and expenses		69,813			15,403			85,216			25,783			110,999

Income from operations	$	41,406		$	4,775		$	46,181		$	2,086		$	48,267

Adjusted EBITDA	$	52,579		$	6,588		$	59,167		$	8,915		$	68,082
Adjusted EBITDA Margin		47.3	%		32.6	%		45.0	%		32.0	%		42.7	%

	Three Months Ended December 31, 2018
	Storage Solutions
	North America			United Kingdom			Total			Tank & Pump Solutions			Consolidated
Revenues:
Rental	$	102,486		$	19,685		$	122,171		$	29,877		$	152,048
Sales		4,797			2,450			7,247			1,407			8,654
Other		66			63			129			38			167

Total revenues		107,349			22,198			129,547			31,322			160,869

Costs and expenses:
Rental, selling and general expenses		62,582			12,818			75,400			19,690			95,090
Cost of sales		2,862			1,882			4,744			768			5,512
Depreciation and amortization		8,242			1,842			10,084			6,710			16,794

Total costs and expenses		73,686			16,542			90,228			27,168			117,396

Income from operations	$	33,663		$	5,656		$	39,319		$	4,154		$	43,473

Adjusted EBITDA	$	44,720		$	7,571		$	52,291		$	10,972		$	63,263
Adjusted EBITDA Margin		41.7	%		34.1	%		40.4	%		35.0	%		39.3	%

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

Mobile Mini, Inc.

Business Segment Information - Adjusted (1)

(Unaudited)

(in thousands, except percentages)


	Twelve Months Ended December 31, 2019
	Storage Solutions
	North America			United Kingdom			Total			Tank & Pump Solutions			Consolidated
Revenues:
Rental	$	389,674		$	75,738		$	465,412		$	116,245		$	581,657
Sales		18,047			6,819			24,866			5,528			30,394
Other		399			—			399			175			574

Total revenues		408,120			82,557			490,677			121,948			612,625

Costs and expenses:
Rental, selling and general expenses		232,731			51,663			284,394			77,929			362,323
Cost of sales		10,441			5,385			15,826			2,849			18,675
Depreciation and amortization		36,103			7,070			43,173			27,410			70,583

Total costs and expenses		279,275			64,118			343,393			108,188			451,581

Income from operations	$	128,845		$	18,439		$	147,284		$	13,760		$	161,044

Adjusted EBITDA	$	175,295		$	25,759			201,054		$	41,839		$	242,893
Adjusted EBITDA Margin		43.0	%		31.2	%		41.0	%		34.3	%		39.6	%

	Twelve Months Ended December 31, 2018
	Storage Solutions
	North America			United Kingdom			Total			Tank & Pump Solutions			Consolidated
Revenues:
Rental	$	366,713		$	80,751		$	447,464		$	110,733		$	558,197
Sales		20,008			9,024			29,032			5,322			34,354
Other		304			224			528			150			678

Total revenues		387,025			89,999			477,024			116,205			593,229

Costs and expenses:
Rental, selling and general expenses		233,764			53,884			287,648			76,475			364,123
Cost of sales		12,263			7,176			19,439			2,998			22,437
Depreciation and amortization		33,591			7,891			41,482			25,518			67,000

Total costs and expenses		279,618			68,951			348,569			104,991			453,560

Income from operations	$	107,407		$	21,048		$	128,455		$	11,214		$	139,669

Adjusted EBITDA	$	150,871		$	29,218		$	180,089		$	37,154		$	217,243
Adjusted EBITDA Margin		39.0	%		32.5	%		37.8	%		32.0	%		36.6	%

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

Mobile Mini, Inc.

Condensed Consolidated Balance Sheets

(in thousands)


	December 31,			December 31,
	2019			2018
	(unaudited)			(audited)
ASSETS
Cash and cash equivalents	$	8,053		$	5,605
Receivables, net		104,390			130,233
Inventories		9,517			11,725
Rental fleet, net		966,223			929,090
Property, plant and equipment, net		157,183			154,254
Operating lease assets		93,116			—
Other assets		13,806			13,398
Intangibles, net		51,185			55,542
Goodwill		713,404			705,217

Total assets	$	2,116,877		$	2,005,064

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Accounts payable	$	31,554		$	33,177
Accrued liabilities		77,069			88,136
Operating lease liabilities		94,932			—
Lines of credit		555,400			593,495
Obligations under finance leases		74,399			63,359
Senior notes, net		247,127			246,489
Deferred income taxes		195,034			170,139

Total liabilities		1,275,515			1,194,795

Stockholders’ equity:
Common stock		504			500
Additional paid-in capital		638,083			619,850
Retained earnings		445,285			410,641
Accumulated other comprehensive loss		(65,093	)		(72,861	)
Treasury stock		(177,417	)		(147,861	)

Total stockholders’ equity		841,362			810,269

Total liabilities and stockholders’ equity	$	2,116,877		$	2,005,064

Mobile Mini, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(in thousands)


	Twelve Months Ended
	December 31,
	2019			2018
Cash flows from operating activities:
Net income (loss)	$	83,734		$	(8,062	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Deferred financing costs write-off		123			—
Asset impairment charge and loss on divestiture, net		—			102,140
Provision for doubtful accounts		5,879			2,412
Amortization of deferred financing costs		1,837			2,060
Amortization of long-term liabilities		13			145
Share-based compensation expense		15,121			10,867
Depreciation and amortization		70,583			67,000
Gain on sale of rental fleet		(5,923	)		(6,055	)
Loss on disposal of property, plant and equipment		100			600
Deferred income taxes		23,305			(2,523	)
Foreign currency exchange		274			(64	)
Changes in certain assets and liabilities, net of effect of businesses acquired		17,672			(8,422	)

Net cash provided by operating activities		212,718			160,098

Cash flows from investing activities:
Cash paid for business acquired, net of cash acquired		(13,048	)		—
Proceeds from sale of assets held for sale		—			10,153
Additions to rental fleet, excluding acquisitions		(70,851	)		(85,961	)
Proceeds from sale of rental fleet		13,726			14,993
Additions to property, plant and equipment, excluding acquisitions		(13,274	)		(16,931	)
Proceeds from sale of property, plant and equipment		740			683

Net cash used in investing activities		(82,707	)		(77,063	)

Cash flows from financing activities:
Net repayments under lines of credit		(38,096	)		(40,790	)
Deferred financing costs		(3,521	)		—
Principal payments on finance lease obligations		(10,690	)		(9,746	)
Issuance of common stock		3,116			3,617
Dividend payments		(48,882	)		(44,530	)
Purchase of treasury stock		(29,556	)		(695	)

Net cash used in financing activities		(127,629	)		(92,144	)

Effect of exchange rate changes on cash and cash equivalents		66			1,263

Net change in cash and cash equivalents		2,448			(7,846	)
Cash and cash equivalents at beginning of period		5,605			13,451

Cash and cash equivalents at end of period	$	8,053		$	5,605

Equipment and other acquired through finance lease obligations	$	21,730		$	20,314
Capital expenditures accrued or payable		5,591			10,752

Non-GAAP Financial Information

In addition to disclosing financial results that are determined in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company also discloses in this press release certain non-GAAP financial information. These financial measures are not recognized measures under GAAP and they are not intended to be and should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Adjusted net income, adjusted diluted earnings per share, EBITDA, adjusted EBITDA, EBITDA margin, adjusted EBITDA margin and free cash flow 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 December 31,						Twelve Months Ended December 31,
	2019			2018			2019			2018
Net income (loss)	$	29,016		$	14,248		$	83,734		$	(8,062	)
Interest expense		9,633			10,725			41,378			40,904
Income tax provision		8,551			13,933			28,345			2,751
Depreciation and amortization		17,623			16,794			70,583			67,000
Deferred financing costs write-off		—			—			123			—

EBITDA		64,823			55,700			224,163			102,593
Share-based compensation expense		2,287			3,001			11,528			10,504
Restructuring expenses		—			700			—			2,006
Asset impairment charge and loss on divestiture, net		—			3,862			—			102,140
Chief Executive Officer transition		—			—			3,593			—
Acquisition-related expenses		491			—			3,128			—
Other		481			—			481			—

Adjusted EBITDA	$	68,082		$	63,263		$	242,893		$	217,243


	Three Months Ended December 31,						Twelve Months Ended December 31,
	2019			2018			2019			2018
Net cash provided by operating activities	$	60,819		$	43,878		$	212,718		$	160,098
Interest paid		5,994			6,226			40,150			37,979
Income and franchise taxes paid		1,481			1,666			6,600			4,012
Share-based compensation expense, including restructuring expense		(2,287	)		(3,001	)		(15,121	)		(10,867	)
Asset impairment charge and loss on divestiture, net		—			(3,862	)		—			(102,140	)
Gain on sale of rental fleet		1,313			1,532			5,923			6,055
Loss on disposal of property, plant and equipment		(54	)		(52	)		(100	)		(600	)
Changes in certain assets and liabilities, net of effect of businesses acquired		(2,443	)		9,313			(26,007	)		8,056

EBITDA	$	64,823		$	55,700		$	224,163		$	102,593

Mobile Mini, Inc.

Free Cash Flow GAAP Reconciliation

(Unaudited)

(in thousands)


	Three Months Ended December 31,						Twelve Months Ended December 31,
	2019			2018			2019			2018
Net cash provided by operating activities	$	60,819		$	43,878		$	212,718		$	160,098

Additions to rental fleet, excluding acquisitions		(9,604	)		(20,341	)		(70,851	)		(85,961	)
Proceeds from sale of rental fleet		2,944			3,546			13,726			14,993
Additions to property, plant and equipment, excluding acquisitions		(3,357	)		(2,296	)		(13,274	)		(16,931	)
Proceeds from sale of property, plant and equipment		292			80			740			683

Net capital expenditures, excluding acquisitions		(9,725	)		(19,011	)		(69,659	)		(87,216	)

Free cash flow	$	51,094		$	24,867		$	143,059		$	72,882

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.