Press Release Details

Mobile Mini Reports Q4 2018 Results and Announces Quarterly Dividend

February 1, 2019 at 6:30 AM EST
PDF Version

PHOENIX--(BUSINESS WIRE)--Feb. 1, 2019-- 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, 2018.

Total revenues were $160.9 million and rental revenues were $152.0 million, as compared to $146.7 million and $138.5 million, respectively, for the same period last year. Rental revenues for the Storage Solutions and Tank & Pump Solutions businesses for the current quarter were $122.2 million and $29.9 million, respectively, compared to $112.8 million and $25.7 million, respectively, for the same period last year.

The Company realized net income of $14.2 million, or $0.32 per diluted share, in the fourth quarter of 2018. On an adjusted basis, fourth quarter net income was $23.7 million, or $0.53 per diluted share, as compared to adjusted net income of $18.1 million, or $0.41 per diluted share, for the fourth quarter of 2017. Adjusted EBITDA was $63.3 million and adjusted EBITDA margin was 39.3% for the fourth quarter of 2018.

Dividend

The Company’s Board of Directors declared a cash dividend of 27.5 cents per share, which will be paid on March 13, 2019 to shareholders of record as of February 27, 2019.

Fourth Quarter 2018 Highlights

  • Continued strong rental revenue growth in Tank & Pump Solutions (“T&P”) with a 16.1% year-over-year increase.
  • Delivered solid Storage Solutions (“SS”) rental revenue year-over-year growth of 8.3%, with record high seasonal business.
  • Reached all-time high T&P OEC fleet on rent and drove average OEC utilization to 76.0% for the quarter, up 300 bps compared to the prior-year quarter.
  • Increased total SS average units on rent by 2.7% year-over-year, with average unit utilization of 85.2% during the quarter.
  • Raised SS core (excluding seasonal) rental rates in North America by 3.4%.
  • Achieved adjusted EBITDA growth of 13.7%, compared to the prior-year quarter and expanded adjusted EBITDA margin by 140 basis points to 39.3%.
  • Generated robust net cash from operating activities of $43.9 million and free cash flow of $24.9 million.
  • Decreased our leverage ratio to 4.2x at December 31, 2018 from 5.0x December 31, 2017, as a result of both reduced debt and increased adjusted EBITDA.

CEO Comments

Erik Olsson, Mobile Mini’s Chief Executive Officer, remarked, “Fourth quarter 2018 results are the culmination of an exceptional year for Mobile Mini. Consolidated rental revenues were up 9.8% year-over-year, despite increasingly challenging comparisons. Seasonal rentals in North America exceeded the record-breaking numbers from the prior-year, contributing to rental revenue growth of 8.3% year-over year for consolidated Storage Solutions. Tank & Pump Solutions delivered growth of 16.1% by capitalizing on the wide-spread momentum in our customer end-segments and our exceptional overall service. By leveraging our infrastructure and efficiencies, we converted this robust top-line growth into increased profitability. Our adjusted EBITDA margin grew to 39.3% and we achieved $63.3 million in adjusted EBITDA, an increase of 13.7%, resulting in very strong free cash flow of $24.9 million for the fourth quarter of 2018.”

Mr. Olsson continued, “In 2018, we executed on our strategic plan and delivered outstanding results. Mobile Mini enters 2019 a financially stronger and more efficient company than ever before. We are committed to further differentiating Mobile Mini from our competitors by partnering with our customers to develop innovative solutions to their rental needs and striving to continuously improve processes throughout the Company. In North America, our Storage Solutions pending orders are significantly up compared to a year ago and our Tank & Pump business is positioned to capitalize on the strong demand from its end-markets. In the United Kingdom, where Brexit is causing some uncertainty in the general economy, our business has remained stable. Overall, our pipeline is healthy across all segments and economic indicators are solid. For 2019, we expect continued margin expansion as well as meaningful de-leveraging and we expect to exceed our Evergreen model for rental revenue growth.”

Conference Call

Mobile Mini will host a conference call today, Friday, February 1 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 195,600 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 12,600 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 ability to generate continued margin expansion and growth of revenue, adjusted EBITDA, and free cash flow, as well as our ability to decrease our leverage ratio, 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 Operations  
(Unaudited)  
(in thousands, except percentages and per share data)  
                                                             
      Three Months Ended December 31, 2018       Three Months Ended December 31, 2017  
      Actual       Adjustments       Adjusted (1)       Actual       Adjustments       Adjusted (2)  
                                                             
Revenues:                                                            
Rental     $ 152,048       $ —       $ 152,048       $ 138,537       $ —       $ 138,537  
Sales       8,654         —         8,654         7,623         —         7,623  
Other       167         —         167         536         —         536  
Total revenues       160,869         —         160,869         146,696         —         146,696  
                                                             
Costs and expenses:                                                            
Rental, selling and general expenses       95,090         —         95,090         87,484         —         87,484  
Cost of sales       5,512         —         5,512         4,962         —         4,962  
Restructuring expenses       700         (700 )       —         824         (824 )       —  
Asset impairment charge and

loss on divestiture, net

       3,862         (3,862 )       —         —         —         —  
Depreciation and amortization       16,794         —         16,794         16,431         —         16,431  
Total costs and expenses       121,958         (4,562 )       117,396         109,701         (824 )       108,877  
                                                             
Income from operations       38,911         4,562         43,473         36,995         824         37,819  
                                                             
Other income (expense):                                                            
Interest income       —         —         —         5         —         5  
Interest expense       (10,725 )       —         (10,725 )       (9,316 )       —         (9,316 )
Foreign currency exchange       (5 )       —         (5 )       4         —         4  
                                                             
Income before income tax provision (benefit)       28,181         4,562         32,743         27,688         824         28,512  
                                                             
Income tax provision (benefit)       13,933         (4,863 )       9,070         (64,383 )       74,827         10,444  
                                                             
Net income     $ 14,248       $ 9,425       $ 23,673       $ 92,071       $ (74,003 )     $ 18,068  
                                                             
EBITDA/Adjusted EBITDA     $ 55,700                 $ 63,263       $ 53,435                 $ 55,624  
EBITDA/Adjusted EBITDA as a percentage of

total revenues

       34.6 %                 39.3 %       36.4 %                 37.9 %
                                                             
Earnings per share:                                                            
Basic     $ 0.32                 $ 0.53       $ 2.09                 $ 0.41  
Diluted       0.32                   0.53         2.07                   0.41  
                                                             
Weighted average number of common and

common share equivalents outstanding:

                                                            
Basic       44,353                   44,353         44,128                   44,128  
Diluted       44,885                   44,885         44,444                   44,444  
(1)   Adjusted column for the three 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 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 effects.
    • 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 during the quarter, along with the related tax effects.
    • 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.
(2)   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 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 Cuts and Jobs Act (the “Tax Act”).
     
Mobile Mini, Inc.  
Condensed Consolidated Statements of Operations  
(Unaudited)  
(in thousands, except percentages and per share data)  
                                                             
      Twelve Months Ended December 31, 2018       Twelve Months Ended December 31, 2017  
      Actual       Adjustments       Adjusted (1)       Actual       Adjustments       Adjusted (2)  
                                                             
Revenues:                                                            
Rental     $ 558,197       $ —       $ 558,197       $ 498,825       $ —       $ 498,825  
Sales       34,354         —         34,354         32,440         —         32,440  
Other       678         —         678         2,284         —         2,284  
Total revenues       593,229         —         593,229         533,549         —         533,549  
                                                             
Costs and expenses:                                                            
Rental, selling and general expenses       364,123         —         364,123         336,438         (2,623 )       333,815  
Cost of sales       22,437         —         22,437         21,001         —         21,001  
Restructuring expenses       2,006         (2,006 )       —         2,886         (2,886 )       —  
Asset impairment charge and

loss on divestiture, net

       102,140         (102,140 )       —         —         —         —  
Depreciation and amortization       67,000         —         67,000         63,372         —         63,372  
Total costs and expenses       557,706         (104,146 )       453,560         423,697         (5,509 )       418,188  
                                                             
Income from operations       35,523         104,146         139,669         109,852         5,509         115,361  
                                                             
Other income (expense):                                                            
Interest income       6         —         6         25         —         25  
Interest expense       (40,904 )       —         (40,904 )       (35,728 )       —         (35,728 )
Foreign currency exchange       64         —         64         (25 )       —         (25 )
                                                             
(Loss) income before income tax

provision (benefit)

       (5,311 )       104,146         98,835         74,124         5,509         79,633  
                                                             
Income tax provision (benefit)       2,751         22,475         25,226         (48,104 )       76,604         28,500  
                                                             
Net (loss) income     $ (8,062 )     $ 81,671       $ 73,609       $ 122,228       $ (71,095 )     $ 51,133  
                                                             
EBITDA/Adjusted EBITDA     $ 102,593                 $ 217,243       $ 173,224                 $ 184,803  
EBITDA/Adjusted EBITDA as a percentage of

total revenues

       17.3 %                 36.6 %       32.5 %                 34.6 %
                                                             
(Loss) earnings per share:                                                            
Basic     $ (0.18 )               $ 1.66       $ 2.77                 $ 1.16  
Diluted       (0.18 )                 1.64         2.76                   1.16  
                                                             
Weighted average number of common and

common share equivalents outstanding:

                                                            
Basic       44,295                   44,295         44,055                   44,055  
Diluted       44,295                   44,980         44,254                   44,254  
(1)   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 costs of $2.0 million related to the restructuring of our business operations, along with the related tax effects.
   

• 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 effects.
   

• 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.
   

• 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.
(2)   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.
     
   
Mobile Mini, Inc.  
Operating Data  
(Unaudited)  
                   
         
      2018     2017  
As of December 31:                  
Stand-alone Storage Solutions locations       117       121  
Stand-alone Tank & Pump Solutions locations       20       17  
Combined Storage Solutions and Tank & Pump Solutions locations       17       16  
Storage Solutions rental fleet units       195,600       215,000  
Tank & Pump Solutions rental fleet units       12,600       12,100  
                   
Average utilization - Three months ended December 31:                  
Storage Solutions - utilization based on number of units       85.2 %     75.7 %
Tank & Pump Solutions - utilization based on original equipment cost       76.0 %     73.0 %
                   
Average utilization - Twelve months ended December 31:                  
Storage Solutions - utilization based on number of units       75.9 %     71.5 %
Tank & Pump Solutions - utilization based on original equipment cost       74.0 %     66.5 %
                   
Mobile Mini, Inc.  
Business Segment Information - Adjusted (1)  
(Unaudited)  
(in thousands, except percentages)  
                                                             
      Three Months Ended December 31, 2018       Three Months Ended December 31, 2017  
     

Storage
Solutions

      

Tank & Pump
Solutions

       Total      

Storage
Solutions

      

Tank & Pump
Solutions

       Total  
                                                             
Revenues:                                                            
Rental     $ 122,171       $ 29,877       $ 152,048       $ 112,810       $ 25,727       $ 138,537  
Sales       7,247         1,407         8,654         6,226         1,397         7,623  
Other       129         38         167         457         79         536  
Total revenues       129,547         31,322         160,869         119,493         27,203         146,696  
                                                             
Costs and expenses:                                                            
Rental, selling and general expenses       75,400         19,690         95,090         69,462         18,022         87,484  
Cost of sales       4,744         768         5,512         4,122         840         4,962  
Depreciation and amortization       10,084         6,710         16,794         10,296         6,135         16,431  
Total costs and expenses       90,228         27,168         117,396         83,880         24,997         108,877  
                                                             
Income from operations     $ 39,319       $ 4,154       $ 43,473       $ 35,613       $ 2,206       $ 37,819  
                                                             
Adjusted EBITDA     $ 52,291       $ 10,972       $ 63,263       $ 47,227       $ 8,397       $ 55,624  
Adjusted EBITDA Margin       40.4 %       35.0 %       39.3 %       39.5 %       30.9 %       37.9 %
                                                             
                                                             
                                                             
      Twelve Months Ended December 31, 2018       Twelve Months Ended December 31, 2017  
     

Storage
Solutions

      

Tank & Pump
Solutions

       Total      

Storage
Solutions

      

Tank & Pump
Solutions

       Total  
                                                             
Revenues:                                                            
Rental     $ 447,464       $ 110,733       $ 558,197       $ 406,590       $ 92,235       $ 498,825  
Sales       29,032         5,322         34,354         26,989         5,451         32,440  
Other       528         150         678         1,875         409         2,284  
Total revenues       477,024         116,205         593,229         435,454         98,095         533,549  
                                                             
Costs and expenses:                                                            
Rental, selling and general expenses       287,648         76,475         364,123         265,390         68,425         333,815  
Cost of sales       19,439         2,998         22,437         17,930         3,071         21,001  
Depreciation and amortization       41,482         25,518         67,000         38,792         24,580         63,372  
Total costs and expenses       348,569         104,991         453,560         322,112         96,076         418,188  
                                                             
Income from operations     $ 128,455       $ 11,214       $ 139,669       $ 113,342       $ 2,019       $ 115,361  
                                                             
Adjusted EBITDA     $ 180,089       $ 37,154       $ 217,243       $ 157,960       $ 26,843       $ 184,803  
Adjusted EBITDA Margin       37.8 %       32.0 %       36.6 %       36.3 %       27.4 %       34.6 %
  (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,  
      2018       2017  
      (unaudited)       (audited)  
ASSETS  
Cash and cash equivalents     $ 5,605       $ 13,451  
Receivables, net       130,233         111,562  
Inventories       11,725         15,671  
Rental fleet, net       929,090         989,154  
Property, plant and equipment, net       154,254         157,304  
Other assets       13,398         15,334  
Intangibles, net       55,542         62,024  
Goodwill       705,217         708,907  
Total assets     $ 2,005,064       $ 2,073,407  
                     
LIABILITIES AND STOCKHOLDERS' EQUITY  
Liabilities:                    
Accounts payable     $ 33,177       $ 26,955  
Accrued liabilities       88,136         78,084  
Lines of credit       593,495         634,285  
Obligations under capital leases       63,359         52,791  
Senior notes, net       246,489         245,850  
Deferred income taxes       170,139         173,754  
Total liabilities       1,194,795         1,211,719  
                     
Stockholders' equity:                    
Common stock       500         497  
Additional paid-in capital       619,850         605,369  
Retained earnings       410,641         463,322  
Accumulated other comprehensive loss       (72,861 )       (60,334 )
Treasury stock       (147,861 )       (147,166 )
Total stockholders' equity       810,269         861,688  
Total liabilities and stockholders' equity     $ 2,005,064       $ 2,073,407  
                     
Mobile Mini, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(in thousands)
      Twelve Months Ended
      December 31,
      2018       2017  
Cash flows from operating activities:                
Net (loss) income     $ (8,062 )     $ 122,228  
Adjustments to reconcile net (loss) income to net cash

provided by operating activities:

                
Asset impairment charge and loss on divestiture, net       102,140         —  
Provision for doubtful accounts       2,412         5,037  
Amortization of deferred financing costs       2,060         2,060  
Amortization of long-term liabilities       145         130  
Share-based compensation expense       10,867         7,373  
Depreciation and amortization       67,000         63,372  
Gain on sale of rental fleet       (6,055 )       (5,657 )
Loss on disposal of property, plant and equipment       600         517  
Deferred income taxes       (2,523 )       (49,980 )
Foreign currency exchange       (64 )       25  
Changes in certain assets and liabilities, net of

effect of businesses acquired

       (8,422 )       (9,459 )
Net cash provided by operating activities       160,098         135,646  
                 
Cash flows from investing activities:                
Proceeds from sale of assets held for sale       10,153         —  
Additions to rental fleet, excluding acquisitions       (85,961 )       (63,688 )
Proceeds from sale of rental fleet       14,993         12,953  
Additions to property, plant and equipment, excluding acquisitions       (16,931 )       (20,122 )
Proceeds from sale of property, plant and equipment       683         851  
Net cash used in investing activities       (77,063 )       (70,006 )
                 
Cash flows from financing activities:                
Net repayments under lines of credit       (40,790 )       (6,875 )
Deferred financing costs       —         (12 )
Principal payments on capital lease obligations       (9,746 )       (7,418 )
Issuance of common stock       3,617         5,800  
Dividend payments       (44,530 )       (40,171 )
Purchase of treasury stock       (695 )       (8,367 )
Net cash used in financing activities       (92,144 )       (57,043 )
                 
Effect of exchange rate changes on cash       1,263         717  
                 
Net change in cash       (7,846 )       9,314  
                 
Cash and cash equivalents at beginning of period       13,451         4,137  
Cash and cash equivalents at end of period     $ 5,605       $ 13,451  
                 
Equipment and other acquired through capital lease obligations     $ 20,314       $ 9,501  
Capital expenditures accrued or payable       10,752         7,270  
                 

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,
      2018       2017       2018       2017  
Net income (loss)     $ 14,248       $ 92,071       $ (8,062 )     $ 122,228  
Interest expense       10,725         9,316         40,904         35,728  
Income tax provision (benefit)       13,933         (64,383 )       2,751         (48,104 )
Depreciation and amortization       16,794         16,431         67,000         63,372  
EBITDA       55,700         53,435         102,593         173,224  
                                 
Share-based compensation expense       3,001         1,365         10,504         6,070  
Restructuring expenses       700         824         2,006         2,886  
Asset impairment charge and loss on divestiture, net       3,862         —         102,140         —  
Acquisition-related expenses       —         —         —         123  
Other       —         —         —         2,500  
Adjusted EBITDA     $ 63,263       $ 55,624       $ 217,243       $ 184,803  
                                 
                                 
      Three Months Ended

December 31,

     Twelve Months Ended

December 31,
      2018       2017       2018       2017  
Net cash provided by operating activities     $ 43,878       $ 39,814       $ 160,098       $ 135,646  
Interest paid       6,226         4,650         37,979         35,029  
Income and franchise taxes paid       1,666         1,294         4,012         2,607  
Share-based compensation expense,

including restructuring expense

       (3,001 )       (1,483 )       (10,867 )       (7,373 )
Asset impairment charge and loss on divestiture, net       (3,862 )       —         (102,140 )       —  
Gain on sale of rental fleet       1,532         1,384         6,055         5,657  
Loss on disposal of property, plant and

equipment

       (52 )       (45 )       (600 )       (517 )
Changes in certain assets and liabilities, net of

effect of businesses acquired

       9,313         7,821         8,056         2,175  
EBITDA     $ 55,700       $ 53,435       $ 102,593       $ 173,224  
                                         
 
Mobile Mini, Inc.
Free Cash Flow GAAP Reconciliation
(Unaudited)
(in thousands)
                         
    Three Months Ended

December 31,

   Twelve Months Ended

December 31,
    2018   2017   2018   2017
Net cash provided by operating activities   $ 43,878   $ 39,814   $ 160,098   $ 135,646
                         
Additions to rental fleet, excluding acquisitions     (20,341)     (17,743)     (85,961)     (63,688)
Proceeds from sale of rental fleet     3,546     3,351     14,993     12,953
Additions to property, plant and equipment,

excluding acquisitions

     (2,296)     (7,306)     (16,931)     (20,122)
Proceeds from sale of property, plant and

equipment

     80     71     683     851
Net capital expenditures, excluding acquisitions     (19,011)     (21,627)     (87,216)     (70,006)
                         
Free cash flow   $ 24,867   $ 18,187   $ 72,882   $ 65,640
                         

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.

Source: Mobile Mini, Inc.

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

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