Mobile Mini Reports Q4 2017 Results and Announces Quarterly Dividend

February 2, 2018 at 6:30 AM EST

PHOENIX--(BUSINESS WIRE)--Feb. 2, 2018-- 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, 2017. Total revenues were $146.7 million and rental revenues were $138.5 million, as compared to $130.4 million and $124.2 million, respectively, for the same period last year.

Rental revenues for the Storage Solutions and Tank & Pump Solutions businesses for the current quarter were $112.8 million and $25.7 million, respectively.

The Company recorded net income of $92.1 million, or $2.07 per diluted share, in the fourth quarter of 2017, as compared to net income of $19.5 million, or $0.44 per diluted share, for the fourth quarter of 2016. On an adjusted basis, fourth quarter net income was $18.1 million, or $0.41 per diluted share, as compared to adjusted net income of $21.2 million, or $0.48 per diluted share, for the fourth quarter of 2016. Adjusted EBITDA was $55.6 million and adjusted EBITDA margin was 37.9% for the fourth quarter of 2017.

Dividend

The Company’s Board of Directors declared a cash dividend of 25.0 cents per share, which will be paid on March 14, 2018 to shareholders of record on February 28, 2018.

Fourth Quarter 2017 Highlights

Delivered a strong 11.0% year-over-year increase in Storage Solutions rental revenues, 9.8% when adjusted for favorable currency fluctuations.
Achieved a 14.2% increase in year-over-year Tank & Pump Solutions rental revenue growth.
Increased total Storage Solutions average units on rent by 5.3% year-over-year, with average utilization of 75.7% and utilization of 74.1% at December 31, 2017.
Raised Storage Solutions rental rates by 4.2% year-over-year, with rates on new rentals up 5.1%.
Improved OEC utilization for Tank & Pump Solutions, averaging 73.0% for the quarter, compared to 62.3% in the prior-year quarter, and ending the year at 71.2%.
Achieved adjusted EBITDA of $55.6 million, with an adjusted EBITDA margin of 37.9%, despite year-over-year headwinds of $5.9 million in increased variable compensation expense.
Generated net cash from operating activities of $39.8 million and strong free cash flow of $18.2 million.

CEO Comments

Erik Olsson, Mobile Mini’s President and Chief Executive Officer, remarked, “The fourth quarter of 2017 was exceptional for both of our business segments. In addition to the wide-spread pick up across our Tank & Pump segment, our downstream customers began the turnaround and maintenance activities that had been previously deferred, resulting in a 14.2% year-over-year increase in Tank & Pump Solutions fourth quarter rental revenue. Within Storage Solutions, we saw record-high seasonal rentals, as well as healthy growth in our core business. As expected, variable compensation expense mitigated the fourth quarter profit flow-through; however, our underlying margins are strong and improving quarter by quarter. Excluding the effect of the variable compensation, the adjusted EBITDA margin increased approximately 70 basis points compared to the fourth quarter of 2016.”

Mr. Olsson continued, “Mobile Mini is very well positioned to leverage our infrastructure, including the unique suite of digital solutions we introduced in 2017, to further capitalize on the current momentum. In 2017, Tank & Pump Solutions reached an inflection point, with increased sequential revenue throughout the year, and the business is poised to take advantage of the increasingly strong demand from our customers. Additionally, our core North American Storage Solutions business is strong entering 2018, with pending orders considerably in excess of this time in the prior year. As a result, we expect healthy top line and adjusted EBITDA growth, expanded margins and increased free cash flow in 2018.”

United States Tax Reform

On December 22, 2017, the U.S. government enacted the Tax Cuts and Jobs Act (“the Tax Act”), which, among other things, reduces the federal income tax rate from 35% to 21% effective January 1, 2018, and requires mandatory repatriation of foreign earnings. As a result of the Tax Act, we remeasured our net deferred tax liabilities and recognized a net benefit of $77.6 million. In addition, we recorded a provisional income tax expense of $3.1 million related to the repatriation of foreign earnings. We estimate that our 2018 consolidated effective tax rate will be between 24% and 26%. We do not expect a significant near-term impact on cash paid for taxes.

Conference Call

Mobile Mini will host a conference call today, Friday, February 2 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 portable storage solutions through its total rental fleet of approximately 215,000 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 12,100 units. Mobile Mini’s network is comprised of 154 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 leverage our infrastructure and capitalize on our momentum, as well as our ability to drive healthy top line and adjusted EBITDA growth, expanded margins and increased free cash flow in 2018, 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 December 31, 2017									Three Months Ended December 31, 2016
	Actual			Adjustments			Adjusted (1)			Actual			Adjustments			Adjusted (2)

Revenues:
Rental	$	138,537		$	—		$	138,537		$	124,170		$	—		$	124,170
Sales		7,623			—			7,623			6,656			—			6,656
Other		536			—			536			(439	)		1,146			707
Total revenues		146,696			—			146,696			130,387			1,146			131,533

Costs and expenses:
Rental, selling and general expenses		87,484			—			87,484			74,498			(807	)		73,691
Cost of sales		4,962			—			4,962			4,285			—			4,285
Restructuring expenses		824			(824	)		—			800			(800	)		—
Depreciation and amortization		16,431			—			16,431			16,104			—			16,104
Total costs and expenses		109,701			(824	)		108,877			95,687			(1,607	)		94,080

Income from operations		36,995			824			37,819			34,700			2,753			37,453

Other income (expense):
Interest income		5			—			5			2			—			2
Interest expense		(9,316	)		—			(9,316	)		(8,193	)		—			(8,193	)
Foreign currency exchange		4			—			4			(9	)		—			(9	)

Income before income tax (benefit) provision		27,688			824			28,512			26,500			2,753			29,253

Income tax (benefit) provision		(64,383	)		74,827			10,444			7,031			1,040			8,071

Net income	$	92,071		$	(74,003	)	$	18,068		$	19,469		$	1,713		$	21,182

EBITDA/Adjusted EBITDA	$	53,435					$	55,624		$	50,797					$	54,154
EBITDA/Adjusted EBITDA as a percentage of
total revenues		36.4	%					37.9	%		39.0	%					41.2	%

Earnings per share:
Basic	$	2.09					$	0.41		$	0.44					$	0.48
Diluted		2.07						0.41			0.44						0.48

Weighted average number of common and
common share equivalents outstanding:
Basic		44,128						44,128			44,073						44,073
Diluted		44,444						44,444			44,269						44,269

(1)		Adjusted column for the three months ended December 31, 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 December 31, 2017 include the following:
		• Exclusion of costs of $0.8 million related to the restructuring of our business operations, along with the related tax effects.
		• Exclusion of $74.5 million in income tax benefit resulting from the Tax Act.

(2)		Adjusted column for the three months ended December 31, 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 December 31, 2016 include the following, along with the related tax effects:
		• Increase of other revenue by $1.1 million to exclude reversed revenue related to a sales tax remittance.
		• Reduction of $0.3 million in rental, selling and general expenses to exclude fees and penalties associated with the sales tax remittance.
		• Reduction of $0.1 million in rental, selling and general expenses to exclude acquisition-related expenses.
		• Reduction of $0.5 million in rental, selling and general expenses to exclude costs related to severance in conjunction with the departure of an executive.
		• Exclusion of costs of $0.8 million related to the restructuring of our business operations.


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

	Twelve Months Ended December 31, 2017									Twelve Months Ended December 31, 2016
	Actual			Adjustments			Adjusted (1)			Actual			Adjustments			Adjusted (2)

Revenues:
Rental	$	498,825		$	—		$	498,825		$	480,083		$	—		$	480,083
Sales		32,440			—			32,440			26,499			—			26,499
Other		2,284			—			2,284			2,040			(219	)		1,821
Total revenues		533,549			—			533,549			508,622			(219	)		508,403

Costs and expenses:
Rental, selling and general expenses		336,438			(2,623	)		333,815			309,294			(807	)		308,487
Cost of sales		21,001			—			21,001			16,471			—			16,471
Restructuring expenses		2,886			(2,886	)		—			6,020			(6,020	)		—
Depreciation and amortization		63,372			—			63,372			63,734			—			63,734
Total costs and expenses		423,697			(5,509	)		418,188			395,519			(6,827	)		388,692

Income from operations		109,852			5,509			115,361			113,103			6,608			119,711

Other income (expense):
Interest income		25			—			25			2			—			2
Interest expense		(35,728	)		—			(35,728	)		(32,726	)		—			(32,726	)
Debt extinguishment expense		—			—			—			(9,192	)		9,192			—
Deferred financing costs write-off		—			—			—			(2,271	)		2,271			—
Foreign currency exchange		(25	)		—			(25	)		(18	)		—			(18	)

Income before income tax (benefit) provision		74,124			5,509			79,633			68,898			18,071			86,969

Income tax (benefit) provision		(48,104	)		76,604			28,500			21,650			6,932			28,582

Net income	$	122,228		$	(71,095	)	$	51,133		$	47,248		$	11,139		$	58,387

EBITDA/Adjusted EBITDA	$	173,224					$	184,803		$	176,821					$	190,376
EBITDA/Adjusted EBITDA as a percentage of
total revenues		32.5	%					34.6	%		34.8	%					37.4	%

Earnings per share:
Basic	$	2.77					$	1.16		$	1.07					$	1.32
Diluted		2.76						1.16			1.06						1.32

Weighted average number of common and
common share equivalents outstanding:
Basic		44,055						44,055			44,145						44,145
Diluted		44,254						44,254			44,390						44,390

(1)		Adjusted column for the twelve months ended December 31, 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 twelve-month period ended December 31, 2017 include the following:
		• Reduction of $0.1 million in rental, selling and general expenses for acquisition-related expenses, along with the related tax effects.
		• Reduction of $2.5 million in rental, selling and general expenses to exclude costs related to severance and transition in conjunction with the departure of executives, along with the related tax effects.
		• Exclusion of $2.9 million in costs related to the restructuring of our business operations, along with the related tax effects.
		• Exclusion of $74.5 million in income tax benefit resulting from the Tax Act.

(2)		Adjusted column for the twelve months ended December 31, 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 twelve-month period ended December 31, 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, net of a $1.1 million increase to other revenue to exclude reversed revenue related to a sales tax remittance.
		• Reduction of $0.3 million in rental, selling and general to exclude fees and penalties associated with the sales tax remittance.
		• Reduction of $0.1 million in rental, selling and general expenses for acquisition-related expenses.
		• Reduction of $0.5 million in rental, selling and general expenses to exclude costs related to severance in conjunction with the departure of an executive.
		• Exclusion of costs of $6.0 million related to the restructuring of our business operations.
		• Exclusion of $9.2 million of debt extinguishment costs to redeem $200 million aggregate principal amount of our outstanding 7.875% senior notes due December 2020 (the “2020 Senior Notes”)
		• Exclusion of $2.3 million of deferred financing costs that were written off in conjunction with the redemption of the 2020 Senior Notes.


Mobile Mini, Inc.
Operating Data
(Unaudited)


	2017			2016
As of December 31:
Stand-alone Storage Solutions locations		121			125
Stand-alone Tank & Pump Solutions locations		17			19
Combined Storage Solutions and Tank & Pump Solutions locations		16			14
Storage Solutions rental fleet units		215,000			211,300
Tank & Pump Solutions rental fleet units		12,100			12,100

Average utilization - Three months ended December 31:
Storage Solutions - utilization based on number of units		75.7	%		75.2	%
Tank & Pump Solutions - utilization based on original equipment cost		73.0	%		62.3	%

Average utilization - Year ended December 31:
Storage Solutions - utilization based on number of units		71.5	%		70.6	%
Tank & Pump Solutions - utilization based on original equipment cost (1)		66.5	%	n/a

(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.


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

	Three Months Ended December 31, 2017									Three Months Ended December 31, 2016
	Storage Solutions			Tank & Pump Solutions			Total			Storage Solutions			Tank & Pump Solutions			Total

Revenues:
Rental	$	112,810		$	25,727		$	138,537		$	101,637		$	22,533		$	124,170
Sales		6,226			1,397			7,623			5,842			814			6,656
Other		457			79			536			737			(30	)		707
Total revenues		119,493			27,203			146,696			108,216			23,317			131,533

Costs and expenses:
Rental, selling and general expenses		69,462			18,022			87,484			56,937			16,754			73,691
Cost of sales		4,122			840			4,962			3,751			534			4,285
Depreciation and amortization		10,296			6,135			16,431			9,293			6,811			16,104
Total costs and expenses		83,880			24,997			108,877			69,981			24,099			94,080

Income (loss) from operations	$	35,613		$	2,206		$	37,819		$	38,235		$	(782	)	$	37,453

Adjusted EBITDA	$	47,227		$	8,397		$	55,624		$	48,081		$	6,073		$	54,154
Adjusted EBITDA Margin		39.5	%		30.9	%		37.9	%		44.4	%		26.0	%		41.2	%



	Twelve Months Ended December 31, 2017									Twelve Months Ended December 31, 2016
	Storage Solutions			Tank & Pump Solutions			Total			Storage Solutions			Tank & Pump Solutions			Total

Revenues:
Rental	$	406,590		$	92,235		$	498,825		$	387,145		$	92,938		$	480,083
Sales		26,989			5,451			32,440			21,576			4,923			26,499
Other		1,875			409			2,284			1,621			200			1,821
Total revenues		435,454			98,095			533,549			410,342			98,061			508,403

Costs and expenses:
Rental, selling and general expenses		265,390			68,425			333,815			244,729			63,758			308,487
Cost of sales		17,930			3,071			21,001			13,319			3,152			16,471
Depreciation and amortization		38,792			24,580			63,372			35,509			28,225			63,734
Total costs and expenses		322,112			96,076			418,188			293,557			95,135			388,692

Income from operations	$	113,342		$	2,019		$	115,361		$	116,785		$	2,926		$	119,711

Adjusted EBITDA	$	157,960		$	26,843		$	184,803		$	158,981		$	31,395		$	190,376
Adjusted EBITDA Margin		36.3	%		27.4	%		34.6	%		38.7	%		32.0	%		37.4	%

(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,
	2017			2016
	(unaudited)			(audited)
ASSETS
Cash and cash equivalents	$	13,451		$	4,137
Receivables, net		111,562			99,175
Inventories		15,671			15,412
Rental fleet, net		989,154			950,065
Property, plant and equipment, net		157,304			149,197
Other assets		15,334			14,930
Intangibles, net		62,024			68,420
Goodwill		708,907			703,558
Total assets	$	2,073,407		$	2,004,894

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Accounts payable	$	26,955		$	27,388
Accrued liabilities		78,084			64,126
Lines of credit		634,285			641,160
Obligations under capital leases		52,791			50,704
Senior notes, net		245,850			245,212
Deferred income taxes		173,754			240,690
Total liabilities		1,211,719			1,269,280

Stockholders' equity:
Common stock		497			493
Additional paid-in capital		605,369			592,071
Retained earnings		463,322			362,896
Accumulated other comprehensive loss		(60,334	)		(81,047	)
Treasury stock		(147,166	)		(138,799	)
Total stockholders' equity		861,688			735,614
Total liabilities and stockholders' equity	$	2,073,407		$	2,004,894


Mobile Mini, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(in thousands)
	Twelve Months Ended
	December 31,
	2017			2016
Cash flows from operating activities:
Net income	$	122,228		$	47,248
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		5,037			6,162
Amortization of deferred financing costs		2,060			1,976
Amortization of long-term liabilities		130			116
Share-based compensation expense		7,373			7,399
Depreciation and amortization		63,372			63,734
Gain on sale of rental fleet		(5,657	)		(5,472	)
Loss on disposal of property, plant and equipment		517			1,285
Deferred income taxes		(49,980	)		21,634
Tax shortfall on equity award transactions		—			(242	)
Foreign currency exchange		25			18
Changes in certain assets and liabilities, net of
effect of businesses acquired		(9,459	)		(19,077	)
Net cash provided by operating activities		135,646			136,244

Cash flows from investing activities:
Cash paid for businesses acquired, net of cash acquired		—			(16,565	)
Additions to rental fleet, excluding acquisitions		(63,688	)		(57,372	)
Proceeds from sale of rental fleet		12,953			13,679
Additions to property, plant and equipment, excluding acquisitions		(20,122	)		(30,659	)
Proceeds from sale of property, plant and equipment		851			2,764
Net cash used in investing activities		(70,006	)		(88,153	)

Cash flows from financing activities:
Net repayments under lines of credit		(6,875	)		(26,548	)
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	)		(5,369	)
Principal payments on capital lease obligations		(7,418	)		(6,520	)
Issuance of common stock		5,800			468
Dividend payments		(40,171	)		(36,402	)
Purchase of treasury stock		(8,367	)		(11,290	)
Net cash used in financing activities		(57,043	)		(44,853	)

Effect of exchange rate changes on cash		717			(714	)

Net change in cash		9,314			2,524

Cash and cash equivalents at beginning of period		4,137			1,613
Cash and cash equivalents at end of period	$	13,451		$	4,137

Equipment and other acquired through capital lease obligations	$	9,501		$	18,951
Capital expenditures accrued or payable		7,270			3,230

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,
	2017			2016			2017			2016
Net income	$	92,071		$	19,469		$	122,228		$	47,248
Interest expense		9,316			8,193			35,728			32,726
Income tax (benefit) provision		(64,383	)		7,031			(48,104	)		21,650
Depreciation and amortization		16,431			16,104			63,372			63,734
Debt extinguishment expense		—			—			—			9,192
Deferred financing costs write-off		—			—			—			2,271
EBITDA		53,435			50,797			173,224			176,821

Share-based compensation expense		1,365			604			6,070			6,947
Restructuring expenses		824			800			2,886			6,020
Acquisition-related expenses		—			100			123			100
Sales tax refund and remittance, net		—			1,146			—			(219	)
Other		—			707			2,500			707
Adjusted EBITDA	$	55,624		$	54,154		$	184,803		$	190,376


	Three Months Ended December 31,						Twelve Months Ended December 31,
	2017			2016			2017			2016
Net cash provided by operating activities	$	39,814		$	40,223		$	135,646		$	136,244
Interest paid		4,650			3,666			35,029			21,546
Income and franchise taxes paid		1,294			392			2,607			1,772
Share-based compensation expense,
including restructuring expense		(1,483	)		(878	)		(7,373	)		(7,399	)
Gain on sale of rental fleet		1,384			1,244			5,657			5,472
Loss on disposal of property, plant and
equipment		(45	)		(196	)		(517	)		(1,285	)
Changes in certain assets and liabilities, net of
effect of businesses acquired		7,821			6,346			2,175			20,471
EBITDA	$	53,435		$	50,797		$	173,224		$	176,821


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

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2017			2016			2017			2016
Net cash provided by operating activities	$	39,814		$	40,223		$	135,646		$	136,244

Additions to rental fleet, excluding acquisitions		(17,743	)		(10,892	)		(63,688	)		(57,372	)
Proceeds from sale of rental fleet		3,351			2,909			12,953			13,679
Additions to property, plant and equipment,
excluding acquisitions		(7,306	)		(4,909	)		(20,122	)		(30,659	)
Proceeds from sale of property, plant and
equipment		71			395			851			2,764
Net capital expenditures, excluding acquisitions		(21,627	)		(12,497	)		(70,006	)		(71,588	)

Free cash flow	$	18,187		$	27,726		$	65,640		$	64,656

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 December 31, 2017 were $1.3 million lower than when calculated in accordance with GAAP.

View source version on businesswire.com: http://www.businesswire.com/news/home/20180202005090/en/

Source: Mobile Mini, Inc.

Mobile Mini, Inc.
Van Welch, 602-308-3879
Executive VP & Chief Financial Officer
www.mobilemini.com
or
Investor Relations Counsel:
The Equity Group Inc.
Fred Buonocore, 212-836-9607
Kevin Towle, 212-836-9620

Press Release Details

Mobile Mini Reports Q4 2017 Results and Announces Quarterly Dividend