MINI Mobile Mini Inc

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 March 31, 2020.

The Company realized net income of $8.3 million, or $0.19 per diluted share, in the first quarter of 2020. On an adjusted basis, first quarter net income was $22.8 million, or $0.51 per diluted share, as compared to adjusted net income of $18.2 million, or $0.41 per diluted share, for the same period last year. Adjusted EBITDA was $59.9 million and adjusted EBITDA margin was 40.2% for the first quarter of 2020, compared to adjusted EBITDA of $56.2 million and adjusted EBITDA margin of 37.6% in the first quarter of 2019.

Total revenues were $149.0 million and rental revenues were $140.7 million for the first quarter of 2020, as compared to $149.7 million and $142.2 million, respectively, for the same period last year. Rental revenues for the Storage Solutions and Tank & Pump Solutions businesses for the current quarter were $114.7 million and $25.9 million, respectively, compared to $112.7 million and $29.5 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 May 27, 2020 to shareholders of record as of May 13, 2020.

Merger Agreement

On March 2, 2020, we announced that we have entered into an Agreement and Plan of Merger with WillScot Corporation (“WillScot”). The pending merger with WillScot is subject to customary closing conditions, including receipt of regulatory approvals and stockholder approvals from the Company’s and WillScot’s stockholders. We are working collaboratively with our counterparts at WillScot to satisfy these closing conditions and plan the integration of the two businesses with the expectation of closing in the third quarter of 2020. We believe that the merger will result in strategic and financial benefits by combining the two industry leaders in the complementary modular space and portable storage solutions markets.

COVID-19

Mobile Mini’s top priorities are the health and safety of our employees and customers. As such the Company has taken numerous substantial steps to this end, including among other things, transitioning employees to a work from home model when possible, and implementing social distancing policies for those employees in the field.

Operating within these guidelines, Mobile Mini remains fully operational as an essential business, including delivering hundreds of units in support of testing and relief efforts in the fight against COVID-19. Mobile Mini’s ground-level offices and containers are being utilized as testing centers and for extra office space to provide social distancing, which when combined with the furniture and handwashing stations available within our managed services business, makes Mobile Mini an efficient one-call solution for those on the front lines of the battle against COVID-19. Mobile Mini’s core business operations also remain intact, as the Company provides services to customers in each of the 16 Critical Infrastructure Sectors identified by the United States Federal Government.

CEO Comments

Kelly Williams, Mobile Mini’s President and Chief Executive Officer, remarked, “I would like to thank Mobile Mini employees for their hard work and dedication. The Mobile Mini team has risen to the challenges of maintaining operations in these unprecedented circumstances. Safety is our most important core value and we are dedicated to the health and safety of our employees and customers while providing uninterrupted delivery of our premium products and services across all our business segments. Though we have been deemed an essential business, this pandemic is unprecedented and the full extent of its impact on our operations is uncertain. While our strong first quarter was minimally impacted by the COVID-19 outbreak, we do expect a decrease in demand for our products and services in the near-term, leading to a year-over-year and sequential decrease in our second quarter 2020 rental revenues. The majority of our fleet currently on-rent is being utilized to contain inventory, supplies or other products, which translates into ongoing storage requirements for many of our clients. Our pipeline of pending orders, however, is down compared to the prior-year due to postponed projects in our end markets which will lead to reduced rental revenue in the near-term, including a decrease in trucking revenue due to reduced delivery and pickup activity. Ultimately, some postponed projects could move into late 2020 or early 2021 and some could be cancelled.”

Mr. Williams continued, “Mobile Mini’s flexible and efficient business structure is demand driven, allowing us to minimize the effect of reduced revenues on adjusted EBITDA and free cash flows by managing expenses and capital expenditures. We have already instituted several cost-savings adjustments to our business and have reduced capital expenditures. Our sophisticated, cutting-edge technology provides real-time management insight into our business which, when combined with our newly developed supply chain processes, further enhances our agility with respect to proactive expense control and profit optimization. Mobile Mini enters the second quarter of 2020 from a position of financial strength, including the lowest leverage ratio for the Company since September 30, 2014, ample liquidity, and a nimble capital allocation policy. Notably, Mobile Mini’s free cash flow generation will remain strong in a downturn as we minimize capital expenditures in line with reduced demand. Our financial strength and flexibility positions us to manage through these uncertain times and allows us to move quickly when demand returns.”

First Quarter 2020 Highlights

• Drove healthy year-over-year growth of 3.2% in North America Storage Solutions rental revenue.
• Solid year-over-year rate increase of 3.7% and 1.9% in North America and U.K. Storage Solutions, respectively.
• Grew consolidated adjusted EBITDA 6.5%, year-over-year, and expanded adjusted EBITDA margin by 260 basis points to 40.2%, driven by a 420 basis point year-over-year increase for Storage Solutions.
• Generated cash from operating activities of $33.2 million for the quarter, resulting in free cash flow of $22.5 million, a nearly 40% increase over the prior year.
• Decreased leverage ratio to 3.5x as of March 31, 2020 compared to 3.6x as of December 31, 2019 and 4.2x as of December 31, 2018.
• Completed one acquisition in the quarter, strengthening our existing operations in Dallas, Texas.

Conference Call

Mobile Mini will host a conference call later this morning 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 200,500 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 12,800 units. Mobile Mini’s network is comprised of 155 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 access to ample liquidity, our ability to minimize the effect of reduced revenues on adjusted EBITDA and free cash flows, and our ability to continue to generate positive 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.

(See accompanying tables)

Mobile Mini, Inc. Condensed Consolidated Statements of Income (Unaudited) (in thousands, except percentages and per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2020

 

 

Three Months Ended March 31, 2019

 

 

 

Actual

 

 

Adjustments

 

 

Adjusted (1)

 

 

Actual

 

 

Adjustments

 

 

Adjusted (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental

 

$

140,656

 

 

$

—

 

 

$

140,656

 

 

$

142,172

 

 

$

—

 

 

$

142,172

 

Sales

 

 

8,316

 

 

 

—

 

 

 

8,316

 

 

 

7,223

 

 

 

—

 

 

 

7,223

 

Other

 

 

68

 

 

 

—

 

 

 

68

 

 

 

266

 

 

 

—

 

 

 

266

 

Total revenues

 

 

149,040

 

 

 

—

 

 

 

149,040

 

 

 

149,661

 

 

 

—

 

 

 

149,661

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental, selling and general expenses

 

 

102,258

 

 

 

(15,505

)

 

 

86,753

 

 

 

92,234

 

 

 

—

 

 

 

92,234

 

Cost of sales

 

 

5,102

 

 

 

—

 

 

 

5,102

 

 

 

4,602

 

 

 

—

 

 

 

4,602

 

Depreciation and amortization

 

 

17,492

 

 

 

—

 

 

 

17,492

 

 

 

17,335

 

 

 

—

 

 

 

17,335

 

Total costs and expenses

 

 

124,852

 

 

 

(15,505

)

 

 

109,347

 

 

 

114,171

 

 

 

—

 

 

 

114,171

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

24,188

 

 

 

15,505

 

 

 

39,693

 

 

 

35,490

 

 

 

—

 

 

 

35,490

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

12

 

 

 

—

 

 

 

12

 

 

 

—

 

 

 

—

 

 

 

—

 

Interest expense

 

 

(9,257

)

 

 

—

 

 

 

(9,257

)

 

 

(10,760

)

 

 

—

 

 

 

(10,760

)

Deferred financing costs write-off

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(123

)

 

 

123

 

 

 

—

 

Foreign currency exchange

 

 

(3

)

 

 

—

 

 

 

(3

)

 

 

1

 

 

 

—

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income tax provision

 

 

14,940

 

 

 

15,505

 

 

 

30,445

 

 

 

24,608

 

 

 

123

 

 

 

24,731

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision

 

 

6,639

 

 

 

986

 

 

 

7,625

 

 

 

6,523

 

 

 

32

 

 

 

6,555

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

8,301

 

 

$

14,519

 

 

$

22,820

 

 

$

18,085

 

 

$

91

 

 

$

18,176

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA/Adjusted EBITDA

 

$

41,689

 

 

 

 

 

 

$

59,876

 

 

$

52,826

 

 

 

 

 

 

$

56,230

 

EBITDA/Adjusted EBITDA as a percentage of

total revenues

 

 

28.0

%

 

 

 

 

 

 

40.2

%

 

 

35.3

%

 

 

 

 

 

 

37.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.19

 

 

 

 

 

 

$

0.52

 

 

$

0.41

 

 

 

 

 

 

$

0.41

 

Diluted

 

 

0.19

 

 

 

 

 

 

 

0.51

 

 

 

0.40

 

 

 

 

 

 

 

0.41

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common and

common share equivalents outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

43,873

 

 

 

 

 

 

 

43,873

 

 

 

44,448

 

 

 

 

 

 

 

44,448

 

Diluted

 

 

44,386

 

 

 

 

 

 

 

44,386

 

 

 

44,877

 

 

 

 

 

 

 

44,877

 

(1) Adjusted column for the three months ended March 31, 2020 excludes merger-related expenses that management believes are not indicative of our business, along with the related tax effects. 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.

(2) Adjusted column for the three months ended March 31, 2019 excludes expense related to the write-off of deferred financing fees related to the amendment of our revolving credit agreement, along with the related tax effects. 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.

Mobile Mini, Inc. Operating Data (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2020

 

 

2019

 

As of March 31:

 

 

 

 

 

 

 

 

Stand-alone Storage Solutions locations

 

 

117

 

 

 

119

 

Stand-alone Tank & Pump Solutions locations

 

 

20

 

 

 

20

 

Combined Storage Solutions and Tank & Pump Solutions locations

 

 

18

 

 

 

17

 

Storage Solutions rental fleet units

 

 

200,500

 

 

 

196,400

 

Tank & Pump Solutions rental fleet units

 

 

12,800

 

 

 

12,800

 

 

 

 

 

 

 

 

 

 

Average utilization based on original equipment cost

 

 

 

 

 

 

 

 

Three months ended March 31:

 

 

 

 

 

 

 

 

Storage Solutions

 

 

73.8

%

 

 

77.1

%

Tank & Pump Solutions

 

 

66.4

%

 

 

74.1

%

Mobile Mini, Inc. Business Segment Information - Adjusted (1) (Unaudited) (in thousands, except percentages)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2020

 

 

 

Storage Solutions

 

 

 

 

 

 

 

 

 

 

 

North America

 

 

United Kingdom

 

 

Total

 

 

Tank & Pump Solutions

 

 

Consolidated

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental

 

$

96,469

 

 

$

18,275

 

 

$

114,744

 

 

$

25,912

 

 

$

140,656

 

Sales

 

 

5,284

 

 

 

1,922

 

 

 

7,206

 

 

 

1,110

 

 

 

8,316

 

Other

 

 

39

 

 

 

—

 

 

 

39

 

 

 

29

 

 

 

68

 

Total revenues

 

 

101,792

 

 

 

20,197

 

 

 

121,989

 

 

 

27,051

 

 

 

149,040

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental, selling and general expenses

 

 

55,783

 

 

 

12,395

 

 

 

68,178

 

 

 

18,575

 

 

 

86,753

 

Cost of sales

 

 

3,061

 

 

 

1,477

 

 

 

4,538

 

 

 

564

 

 

 

5,102

 

Depreciation and amortization

 

 

9,305

 

 

 

1,770

 

 

 

11,075

 

 

 

6,417

 

 

 

17,492

 

Total costs and expenses

 

 

68,149

 

 

 

15,642

 

 

 

83,791

 

 

 

25,556

 

 

 

109,347

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

$

33,643

 

 

$

4,555

 

 

$

38,198

 

 

$

1,495

 

 

$

39,693

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

45,394

 

 

$

6,404

 

 

 

51,798

 

 

$

8,078

 

 

$

59,876

 

Adjusted EBITDA Margin

 

 

44.6

%

 

 

31.7

%

 

 

42.5

%

 

 

29.9

%

 

 

40.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2019

 

 

 

Storage Solutions

 

 

 

 

 

 

 

 

 

 

 

North America

 

 

United Kingdom

 

 

Total

 

 

Tank & Pump Solutions

 

 

Consolidated

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental

 

$

93,516

 

 

$

19,209

 

 

$

112,725

 

 

$

29,447

 

 

$

142,172

 

Sales

 

 

4,026

 

 

 

1,751

 

 

 

5,777

 

 

 

1,446

 

 

 

7,223

 

Other

 

 

225

 

 

 

—

 

 

 

225

 

 

 

41

 

 

 

266

 

Total revenues

 

 

97,767

 

 

 

20,960

 

 

 

118,727

 

 

 

30,934

 

 

 

149,661

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental, selling and general expenses

 

 

58,956

 

 

 

13,670

 

 

 

72,626

 

 

 

19,608

 

 

 

92,234

 

Cost of sales

 

 

2,413

 

 

 

1,403

 

 

 

3,816

 

 

 

786

 

 

 

4,602

 

Depreciation and amortization

 

 

8,989

 

 

 

1,734

 

 

 

10,723

 

 

 

6,612

 

 

 

17,335

 

Total costs and expenses

 

 

70,358

 

 

 

16,807

 

 

 

87,165

 

 

 

27,006

 

 

 

114,171

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

$

27,409

 

 

$

4,153

 

 

$

31,562

 

 

$

3,928

 

 

$

35,490

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

39,358

 

 

$

6,070

 

 

$

45,428

 

 

$

10,802

 

 

$

56,230

 

Adjusted EBITDA Margin

 

 

40.3

%

 

 

29.0

%

 

 

38.3

%

 

 

34.9

%

 

 

37.6

%

(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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2020

 

 

December 31, 2019

 

 

 

(unaudited)

 

 

(audited)

 

ASSETS

 

Cash and cash equivalents

 

$

10,795

 

 

$

8,053

 

Receivables, net

 

 

99,259

 

 

 

104,390

 

Inventories

 

 

9,540

 

 

 

9,517

 

Rental fleet, net

 

 

960,177

 

 

 

966,223

 

Property, plant and equipment, net

 

 

153,824

 

 

 

157,183

 

Operating lease assets

 

 

91,521

 

 

 

93,116

 

Other assets

 

 

14,453

 

 

 

13,806

 

Intangibles, net

 

 

50,629

 

 

 

51,185

 

Goodwill

 

 

710,053

 

 

 

713,404

 

Total assets

 

$

2,100,251

 

 

$

2,116,877

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

Liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

40,299

 

 

$

31,554

 

Accrued liabilities

 

 

63,405

 

 

 

77,069

 

Operating lease liabilities

 

 

93,437

 

 

 

94,932

 

Lines of credit

 

 

557,500

 

 

 

555,400

 

Obligations under finance leases

 

 

75,533

 

 

 

74,399

 

Senior notes, net

 

 

247,287

 

 

 

247,127

 

Deferred income taxes

 

 

198,420

 

 

 

195,034

 

Total liabilities

 

 

1,275,881

 

 

 

1,275,515

 

 

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

 

 

Common stock

 

 

506

 

 

 

504

 

Additional paid-in capital

 

 

641,515

 

 

 

638,083

 

Retained earnings

 

 

440,144

 

 

 

445,285

 

Accumulated other comprehensive loss

 

 

(79,478

)

 

 

(65,093

)

Treasury stock

 

 

(178,317

)

 

 

(177,417

)

Total stockholders' equity

 

 

824,370

 

 

 

841,362

 

Total liabilities and stockholders' equity

 

$

2,100,251

 

 

$

2,116,877

 

 

Mobile Mini, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) (in thousands)

 

 

 

Three Months Ended March 31,

 

 

 

2020

 

 

2019

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income

 

$

8,301

 

 

$

18,085

 

Adjustments to reconcile net income to net cash

provided by operating activities:

 

 

 

 

 

 

 

 

Deferred financing costs write-off

 

 

—

 

 

 

123

 

Provision for doubtful accounts

 

 

955

 

 

 

1,212

 

Amortization of deferred financing costs

 

 

455

 

 

 

505

 

Amortization of long-term liabilities

 

 

—

 

 

 

13

 

Share-based compensation expense

 

 

2,682

 

 

 

3,404

 

Depreciation and amortization

 

 

17,492

 

 

 

17,335

 

Gain on sale of rental fleet

 

 

(1,444

)

 

 

(1,425

)

Loss on disposal of property, plant and equipment

 

 

26

 

 

 

18

 

Deferred income taxes

 

 

4,386

 

 

 

5,058

 

Foreign currency exchange

 

 

3

 

 

 

(1

)

Changes in certain assets and liabilities, net of

effect of businesses acquired

 

 

367

 

 

 

(5,544

)

Net cash provided by operating activities

 

 

33,223

 

 

 

38,783

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Cash paid for business acquired, net of cash acquired

 

 

(4,808

)

 

 

—

 

Additions to rental fleet, excluding acquisitions

 

 

(10,051

)

 

 

(23,016

)

Proceeds from sale of rental fleet

 

 

3,474

 

 

 

3,338

 

Additions to property, plant and equipment, excluding acquisitions

 

 

(4,174

)

 

 

(2,919

)

Proceeds from sale of property, plant and equipment

 

 

15

 

 

 

49

 

Net cash used in investing activities

 

 

(15,544

)

 

 

(22,548

)

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Net borrowings under lines of credit

 

 

2,100

 

 

 

203

 

Deferred financing costs

 

 

—

 

 

 

(3,254

)

Principal payments on finance lease obligations

 

 

(3,204

)

 

 

(2,586

)

Issuance of common stock

 

 

753

 

 

 

1,690

 

Dividend payments

 

 

(13,575

)

 

 

(12,426

)

Purchase of treasury stock

 

 

(900

)

 

 

(1,057

)

Net cash used in financing activities

 

 

(14,826

)

 

 

(17,430

)

 

 

 

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

 

(111

)

 

 

(114

)

 

 

 

 

 

 

 

 

 

Net change in cash and cash equivalents

 

 

2,742

 

 

 

(1,309

)

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at beginning of period

 

 

8,053

 

 

 

5,605

 

Cash and cash equivalents at end of period

 

$

10,795

 

 

$

4,296

 

 

 

 

 

 

 

 

 

 

Equipment and other acquired through finance lease obligations

 

$

4,343

 

 

$

1,609

 

Capital expenditures accrued or payable

 

 

5,053

 

 

 

8,012

 

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 March 31,

 

 

 

2020

 

 

2019

 

Net income

 

$

8,301

 

 

$

18,085

 

Interest expense

 

 

9,257

 

 

 

10,760

 

Income tax provision

 

 

6,639

 

 

 

6,523

 

Depreciation and amortization

 

 

17,492

 

 

 

17,335

 

Deferred financing costs write-off

 

 

—

 

 

 

123

 

EBITDA

 

 

41,689

 

 

 

52,826

 

 

 

 

 

 

 

 

 

 

Share-based compensation expense

 

 

2,682

 

 

 

3,404

 

Merger-related expenses

 

 

15,505

 

 

 

—

 

Adjusted EBITDA

 

$

59,876

 

 

$

56,230

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

 

2020

 

 

2019

 

Net cash provided by operating activities

 

$

33,223

 

 

$

38,783

 

Interest paid

 

 

12,608

 

 

 

14,276

 

Income and franchise taxes paid

 

 

1,913

 

 

 

2,020

 

Share-based compensation expense,

including restructuring expense

 

 

(2,682

)

 

 

(3,404

)

Gain on sale of rental fleet

 

 

1,444

 

 

 

1,425

 

Loss on disposal of property, plant and equipment

 

 

(26

)

 

 

(18

)

Changes in certain assets and liabilities, net of

effect of businesses acquired

 

 

(4,791

)

 

 

(256

)

EBITDA

 

 

41,689

 

 

$

52,826

 

Mobile Mini, Inc. Free Cash Flow GAAP Reconciliation (Unaudited) (in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

 

2020

 

 

2019

 

Net cash provided by operating activities

 

$

33,223

 

 

$

38,783

 

 

 

 

 

 

 

 

 

 

Additions to rental fleet, excluding acquisitions

 

 

(10,051

)

 

 

(23,016

)

Proceeds from sale of rental fleet

 

 

3,474

 

 

 

3,338

 

Additions to property, plant and equipment,

excluding acquisitions

 

 

(4,174

)

 

 

(2,919

)

Proceeds from sale of property, plant and

equipment

 

 

15

 

 

 

49

 

Net capital expenditures, excluding acquisitions

 

 

(10,736

)

 

 

(22,548

)

 

 

 

 

 

 

 

 

 

Free cash flow

 

$

22,487

 

 

$

16,235

 

 

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20200501005080/en/

Van Welch, Executive VP & Chief Financial Officer Mobile Mini, Inc. (602) 308-3879

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

-OR-

INVESTOR RELATIONS COUNSEL: The Equity Group Inc. Fred Buonocore (212) 836-9607 Mike Gaudreau (212) 836-9620

www.mobilemini.com