Press Release Details

CORRECTING and REPLACING Mobile Mini Reports Q3’16 Results and Announces Quarterly Dividend

October 25, 2016 at 11:45 AM EDT
PDF Version

PHOENIX--(BUSINESS WIRE)--Oct. 25, 2016-- Corrections were made to mislabelings in two tables of this news release.  In the table "Business Segment Information - Adjusted," the line item label should read "Total costs and expenses" (instead "Asset impairment charge and loss on divestiture, net.") In the table "Condensed Consolidated Statements of Cash Flows," the line item label should read "Depreciation and amortization" (instead "Asset impairment charge and loss on divestiture, net.")

The corrected release reads:

MOBILE MINI REPORTS Q3’16 RESULTS AND ANNOUNCES QUARTERLY DIVIDEND

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 specialty containment solutions in the United States, today reported actual and adjusted financial results for the quarter ended September 30, 2016. Total revenues were $128.9 million and rental revenues were $121.8 million, as compared to $133.3 million and $124.8 million, respectively, for the same period last year.

Rental revenues for the portable storage and specialty containment businesses for the current quarter were $97.7 million and $24.1 million, respectively.

The Company recorded net income of $12.7 million, or $0.29 per diluted share, in the third quarter of 2016, as compared to net income of $14.0 million, or $0.31 per diluted share, for the third quarter of 2015. On an adjusted basis, third quarter net income was $13.7 million, or $0.31 per diluted share, compared to adjusted net income of $16.0 million, or $0.35 per diluted share, for the third quarter of 2015. Adjusted EBITDA was $46.7 million and adjusted EBITDA margin was 36.2% for the third quarter of 2016.

Dividend

The Company’s Board of Directors declared a cash dividend of 20.6 cents per share, which will be paid on November 30, 2016 to shareholders of record on November 9, 2016.

Third Quarter 2016 Highlights

  • Achieved all-time high quarterly portable storage core activations, resulting in an all-time high for units on rent as of September 30, 2016.
  • Increased portable storage rental revenues 2.4% year-over-year on a constant currency basis. Including the impact of unfavorable currency fluctuations, portable storage rental revenues decreased 1.2%.
  • Increased portable storage rental rates by 2.4% year-over-year and 0.8% over the second quarter of 2016; rates on new rentals were up 2.3% year-over-year.
  • Grew downstream specialty containment rental revenues year-over-year and sequentially, achieving the highest quarterly rental revenues since the December 2014 acquisition of this business.
  • Delivered adjusted EBITDA of $46.7 million, with an adjusted EBITDA margin of 36.2%.
  • Drove portable storage unit utilization to an average of 70.5% during the quarter and to 73.6% as of quarter-end.
  • Produced specialty containment average utilization of 64.2%, when calculated using original equipment cost, an increase from 63.5% in the second quarter of 2016.
  • Experienced higher inside sales representative (“ISR”) turnover, resulting in lower sales productivity and flat headcount for the quarter.

CEO Comments

Erik Olsson, Mobile Mini’s President and Chief Executive Officer, remarked, “We continue to be strongly positioned in both the portable storage and specialty containment markets. Portable storage pricing increased a solid 2.4% this quarter compared to the prior-year period, marking the fifteenth quarter in a row we have achieved year-over-year increases. To drive additional top-line growth, our immediate focus is on executing our salesforce model and providing the tools to our inside sales representatives to ensure their success. I am pleased to say that we saw an improvement in ISR headcount towards the end of the quarter, reaching a total of 214 ISRs as of today.”

Mr. Olsson continued, “In our specialty containment business, downstream rental revenues were up a healthy 5%, compared to the prior-year quarter. However, continued weak commodity prices along with the upstream headwinds negatively impacted our remaining specialty containment lines, resulting in an overall 7% decrease in rental revenues for this business. With that said, I am happy to report that sequentially, specialty containment revenues increased 6%.”

Conference Call

Mobile Mini will host a conference call today, Tuesday, October 25, 2016 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 208,000 portable storage containers and office units. Through its wholly-owned subsidiary, Evergreen Tank Solutions, Mobile Mini is also a leading provider of specialty containment solutions in the U.S., with a rental fleet of approximately 12,100 units. Mobile Mini’s network is comprised of 157 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 continue to be strongly positioned in both the portable storage and specialty containment markets, execute our salesforce model and provide tools to our ISRs to ensure their success, and continue to increase our ISR headcount and drive topline growth, 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 per share data)
 
        Three Months Ended September 30, 2016     Three Months Ended September 30, 2015
        Actual     Adjustments     Adjusted (1)     Actual     Adjustments     Adjusted (2)
                                                   
Revenues:                                                  
Rental       $ 121,784     $ —     $ 121,784     $ 124,813     $ —     $ 124,813  
Sales         6,610       —       6,610       6,594       —       6,594  
Other        

459

       —       459       1,936       (1,455

)

 

   481  
Total revenues         128,853       —       128,853       133,343       (1,455 )     131,888  
                                                   
Costs and expenses:                                                  
Rental, selling and general expenses         80,457       —       80,457       81,659       (2,822 )     78,837  
Cost of sales         3,897       —       3,897       4,366       —       4,366  
Restructuring expenses         1,648       (1,648

)

     —       1,846       (1,846 )     —  
Depreciation and amortization         16,184       —       16,184       14,998       —       14,998  
Total costs and expenses         102,186       (1,648 )     100,538       102,869       (4,668 )     98,201  
                                                   
Income from operations         26,667       1,648       28,315       30,474       3,213       33,687  
                                                   
Other expense:                                                  
Interest income         —       —       —       1       —       1  
Interest expense         (8,047 )     —       (8,047 )     (8,960 )     —       (8,960 )
Foreign currency exchange         (5

)

     —       (5

)

 

   —       —       —  
                                                   
Income before income tax provision         18,615       1,648       20,263       21,515       3,213       24,728  
                                                   
Income tax provision         5,906       632       6,538       7,536       1,216       8,752  
                                                   
Net income       $ 12,709     $ 1,016     $ 13,725     $ 13,979     $ 1,997     $ 15,976  
                                                   
EBITDA/Adjusted EBITDA       $ 42,846             $ 46,650     $ 45,473             $ 52,104  

EBITDA/Adjusted EBITDA as a percentage of
total revenues

         33.3 %             36.2 %     34.1 %             39.5 %
                                                   
Earnings per share:                                                  
Basic       $ 0.29             $ 0.31     $ 0.31             $ 0.36  
Diluted         0.29               0.31       0.31               0.35  
                                                   

Weighted average number of common and

common share equivalents outstanding:

                                                  
Basic         44,159               44,159       44,721               44,721  
Diluted         44,453               44,453       45,147               45,147  
                                                     
(1)     Adjusted column for the three months ended September 30, 2016 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 September 30, 2016 related to the restructuring of our business operations, along with the related tax effects.
       
(2)     Adjusted column for the three months ended September 30, 2015 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 September 30, 2015 include the following, along with the related tax effects:
     

•

  

Reduction of other revenue by $1.5 million to exclude transition services revenue associated with the divestiture of our North American wood mobile office business in May 2015.
     

•

   Reduction of $2.2 million in rental, selling and general expenses to exclude operating expenses associated with the provision of transition services for our North American wood mobile office business, including expenses related to wood mobile offices on our leased properties.
     

•

   Reduction of $0.4 million in rental, selling and general expenses for acquisition-related expenses, primarily due to our acquisition of Evergreen Tank Solutions in December 2014.
     

•

   Reduction of $0.2 million in rental, selling and general expenses to exclude costs related to the settlement of a potential unclaimed property liability with the state of Delaware.
     

•

   Exclusion of costs of $1.8 million related to the restructuring of our business operations.
           
 

Mobile Mini, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(in thousands, except per share data)
 
        Nine Months Ended September 30, 2016     Nine Months Ended September 30, 2015
        Actual     Adjustments     Adjusted (1)     Actual     Adjustments     Adjusted (2)
                                                   
Revenues:                                                  
Rental       $ 355,913     $ —     $ 355,913     $ 368,175     $ —     $ 368,175  
Sales         19,843       —       19,843       22,765       —       22,765  
Other         2,479       (1,365

)

     1,114       5,320       (4,096 )     1,224  
Total revenues         378,235       (1,365

)

     376,870       396,260       (4,096 )     392,164  
                                                   
Costs and expenses:                                                  
Rental, selling and general expenses         234,796       —       234,796       247,809       (7,174 )     240,635  
Cost of sales         12,186       —       12,186       14,899       —       14,899  
Restructuring expenses         5,220       (5,220 )     —       4,773       (4,773 )     —  

Asset impairment charge and

                                                    

loss on divestiture, net

         —       —       —       66,128       (66,128

)

 

   —  
Depreciation and amortization         47,630       —       47,630       45,075       —       45,075  
Total costs and expenses         299,832       (5,220 )     294,612       378,684       (78,075 )     300,609  
                                                   
Income (loss) from operations         78,403       3,855       82,258       17,576       73,979       91,555  
                                                   
Other expense:                                                  
Interest income         —       —       —       1      

—

       1  
Interest expense         (24,533 )     —       (24,533 )     (26,986 )     —       (26,986 )
Debt extinguishment expense         (9,192 )     9,192       —       —       —       —  
Deferred financing costs write-off         (2,271 )     2,271       —       —       —       —  
Foreign currency exchange         (9 )     —       (9 )     (2 )     —       (2 )
                                                   
Income (loss) before income tax provision         42,398       15,318       57,716       (9,411 )     73,979       64,568  
                                                   
Income tax provision (benefit)         14,619       5,892       20,511       (5,480 )     28,441       22,961  
                                                   
Net income (loss)       $ 27,779     $ 9,426     $ 37,205     $ (3,931

)

   $ 45,538     $ 41,607  
                                                   
EBITDA/Adjusted EBITDA       $ 126,024             $ 136,222     $ 62,650             $ 145,912  

EBITDA/Adjusted EBITDA as a percentage of

total revenues

         33.3 %             36.1 %     15.8 %             37.2 %
                                                   
Earnings (loss) per share:                                                  
Basic       $ 0.63             $ 0.84     $ (0.09 )           $ 0.92  
Diluted         0.63               0.84       (0.09 )             0.91  
                                                   

Weighted average number of common and

common share equivalents outstanding:

                                                  
Basic         44,170               44,170       45,145               45,145  
Diluted         44,431               44,431       45,145               45,695  
 
       
(1)     Adjusted column for the nine months ended September 30, 2016 excludes certain transactions that management believes are not indicative of our business. Adjusted figures are a non-GAAP presentation. See the non-GAAP reconciliations herein and the additional information regarding non-GAAP financial information following in this earnings release. The adjustments for the nine-month period ended September 30, 2016 include the following, along with the related tax effects:
     

•

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

•

   Exclusion of costs of $5.2 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.
(2)     Adjusted column for the nine months ended September 30, 2015 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 nine-month period ended September 30, 2015 include the following, along with the related tax effects:
     

•

   Reduction of other revenue by $1.2 million to exclude revenue associated with a sales tax refund.
     

•

   Reduction of other revenue by $2.9 million to exclude transition services revenue associated with the divestiture of our North American wood mobile office business in May 2015.
     

•

   Reduction of $3.9 million in rental, selling and general expenses to exclude operating expenses associated with the provision of transition services for our North American wood mobile office business, including expenses related to wood mobile offices on our leased properties.
     

•

   Reduction of $2.4 million in rental, selling and general expenses for acquisition-related expenses, primarily due to our acquisition of Evergreen Tank Solutions in December 2014.
     

•

   Reduction of $0.8 million in rental, selling and general expenses to exclude costs related to the settlement of a potential unclaimed property liability with the state of Delaware.
     

•

   Exclusion of costs of $4.8 million related to the restructuring of our business operations.
     

•

   Exclusion of $66.1 million representing the net impairment and loss associated with the divestiture of our North American wood mobile office business.
           
 
Mobile Mini, Inc.
Operating Data
(Unaudited)
 
         
      2016     2015
As of September 30:                
Stand-alone portable storage locations     125       133  
Stand-alone specialty containment locations     19       19  
Combined portable storage and specialty containment locations     13       6  
Portable storage rental fleet units     208,000       209,500  
Specialty containment rental fleet units     12,100       11,400  
                 
Average Unit Utilization:                
                 
Portable storage - three months ended September 30     70.5 %     70.0 %
Portable storage - nine months ended September 30     69.1 %     67.8 %
Specialty containment - three months ended September 30     60.5 %     67.5 %
Specialty containment - nine months ended September 30     62.2 %     69.2 %
                 
   

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

  
 
 
 
                                                             
      Three Months Ended September 30, 2016       Three Months Ended September 30, 2015  
     

Portable

Storage

      

Specialty

Containment

       Total      

Portable

Storage

      

Specialty

Containment

       Total  
                                                             
Revenues:                                                            
Rental     $ 97,678       $ 24,106       $ 121,784       $ 98,855       $ 25,958       $ 124,813  
Sales       5,319         1,291         6,610         4,830         1,764         6,594  
Other       371         88         459         454         27         481  
Total revenues       103,368         25,485         128,853         104,139         27,749         131,888  
                                                             
Costs and expenses:                                                            
Rental, selling and general expenses       64,084         16,373         80,457         63,488         15,349         78,837  
Cost of sales       3,113         784         3,897         3,124         1,242         4,366  
Depreciation and amortization       9,100         7,084         16,184         8,404         6,594         14,998  

Total costs and expenses

       76,297         24,241         100,538         75,016         23,185         98,201  
                                                             
Income from operations     $ 27,071       $ 1,244       $ 28,315       $ 29,123       $ 4,564       $ 33,687  
                                                             
Adjusted EBITDA     $ 38,270       $ 8,380       $ 46,650       $ 40,901       $ 11,203       $ 52,104  
Adjusted EBITDA Margin       37.0 %       32.9 %       36.2 %       39.3 %       40.4 %       39.5 %
                                                             
                                                             
                                                             
      Nine Months Ended September 30, 2016       Nine Months Ended September 30, 2015  
     

Portable

Storage

      

Specialty

Containment

       Total      

Portable

Storage

      

Specialty

Containment

       Total  
                                                             
Revenues:                                                            
Rental     $ 285,508       $ 70,405       $ 355,913       $ 292,895       $ 75,280       $ 368,175  
Sales       15,734         4,109         19,843         16,892         5,873         22,765  
Other       884         230         1,114         1,171         53         1,224  
Total revenues       302,126         74,744         376,870         310,958         81,206         392,164  
                                                             
Costs and expenses:                                                            
Rental, selling and general expenses       187,792         47,004         234,796         193,409         47,226         240,635  
Cost of sales       9,568         2,618         12,186         10,976         3,923         14,899  
Depreciation and amortization       26,216         21,414         47,630         26,042         19,033         45,075  
Total costs and expenses       223,576         71,036         294,612         230,427         70,182         300,609  
                                                             
Income from operations     $ 78,550       $ 3,708       $ 82,258       $ 80,531       $ 11,024       $ 91,555  
                                                             
Adjusted EBITDA     $ 110,900       $ 25,322       $ 136,222       $ 115,469       $ 30,443       $ 145,912  
Adjusted EBITDA Margin       36.7 %       33.9 %       36.1 %       37.1 %       37.5 %       37.2 %
(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)
                     
                     
      September 30,
2016
(unaudited)		       December 31,
2015
(audited)		  
             
             
ASSETS  
Cash and cash equivalents     $ 9,522       $ 1,613  
Receivables, net       93,129         80,191  
Inventories       18,162         15,596  
Rental fleet, net       951,646         951,323  
Property, plant and equipment, net       152,647         131,687  
Other assets       18,396         16,766  
Intangibles, net       69,260         73,212  
Goodwill       703,765         706,387  
Total assets     $ 2,016,527       $ 1,976,775  
                     
LIABILITIES AND STOCKHOLDERS' EQUITY  
Liabilities:                    
Accounts payable     $ 32,143       $ 29,086  
Accrued liabilities       62,385         59,024  
Lines of credit       651,537         667,708  
Obligations under capital leases       52,531         38,274  
Senior Notes, net       245,158         197,553  
Deferred income taxes       232,634         219,601  
Total liabilities       1,276,388         1,211,246  
                     
Stockholders' equity:                    
Common stock       493         491  
Additional paid-in capital       591,323         584,447  
Retained earnings       352,549         352,262  
Accumulated other comprehensive loss       (69,582 )       (44,162 )
Treasury stock       (134,644 )       (127,509 )
Total stockholders' equity       740,139         765,529  
Total liabilities and stockholders' equity     $ 2,016,527       $ 1,976,775  
                     
 

Mobile Mini, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(in thousands)
 
    Nine Months Ended
September 30,		  
     
    2016     2015  
Cash flows from operating activities:                
Net income (loss)   $ 27,779     $ (3,931 )
Adjustments to reconcile net income (loss) to net cash

provided by operating activities:

                
Debt extinguishment expense     9,192       —  
Deferred financing costs write-off     2,271       —  
Asset impairment and loss on divestiture, net     —       66,128  
Provision for doubtful accounts     4,290       2,826  
Amortization of deferred financing costs     1,457       2,384  
Amortization of long-term liabilities     87       76  
Share-based compensation expense     6,521       10,833  

Depreciation and amortization

     47,630       45,075  
Gain on sale of rental fleet     (4,228 )     (5,196 )
Loss on disposal of property, plant and equipment     1,089       2,035  
Deferred income taxes     14,448       (6,086 )
Foreign currency transaction loss     9       2  
Changes in certain assets and liabilities, net of

effect of businesses acquired

     (14,524 )     (425 )
Net cash provided by operating activities     96,021       113,721  
                 
Cash flows from investing activities:                
Proceeds from wood mobile office divestiture, net     —       83,299  
Cash paid for businesses acquired, net of cash acquired     (9,206 )     (18,622 )
Additions to rental fleet, excluding acquisitions     (46,480 )     (53,540 )
Proceeds from sale of rental fleet     10,770       13,300  
Additions to property, plant and equipment, excluding acquisitions     (25,750 )     (17,918 )
Proceeds from sale of property, plant and equipment     2,369       2,447  
Net cash (used in) provided by investing activities     (68,297 )     8,966  
                 
Cash flows from financing activities:                
Net repayments under lines of credit     (16,171 )     (42,138 )
Proceeds from issuance of 5.875% Senior Notes     250,000       —  
Redemption of 7.875% Senior Notes     (200,000 )     —  
Debt extinguishment expense     (9,192 )     —  
Deferred financing costs     (5,352 )     (113 )
Principal payments on capital lease obligations     (4,693 )     (2,883 )
Issuance of common stock     356       1,670  
Dividend payments     (27,327 )     (25,308 )
Purchase of treasury stock     (7,135 )     (55,819 )
Net cash used in financing activities     (19,514 )     (124,591 )
                 
Effect of exchange rate changes on cash     (301 )     (122 )
                 
Net change in cash     7,909       (2,026 )
                 
Cash and cash equivalents at beginning of period     1,613       3,739  
Cash and cash equivalents at end of period   $ 9,522     $ 1,713  
                 
Equipment and other acquired through capital lease obligations   $ 18,951     $ 17,638  
Capital expenditures accrued or payable     5,053       11,410  
                 

Non-GAAP Financial Information

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

   
Mobile Mini, Inc.
Adjusted EBITDA GAAP Reconciliations
(Unaudited)
(in thousands)
                                         
       

Three Months Ended

September 30,

      

Nine Months Ended

September 30,

  
        2016     2015       2016       2015  
Net income (loss)       $ 12,709     $ 13,979       $ 27,779       $ (3,931 )
Interest expense         8,047       8,960         24,533         26,986  
Income tax provision (benefit)         5,906       7,536         14,619         (5,480 )
Depreciation and amortization         16,184       14,998         47,630         45,075  
Debt extinguishment expense         —       —         9,192         —  
Deferred financing costs write-off         —       —         2,271         —  
EBITDA         42,846       45,473         126,024         62,650  
                                         
Share-based compensation expense         2,156       3,418         6,343         9,283  
Restructuring expenses         1,648       1,846         5,220         4,773  
Acquisition-related expenses         —       398         —         2,393  
Asset impairment charge and

loss on divestiture, net

         —       777         —         67,155  
Sales tax refund and unclaimed

property settlement

         —       192         (1,365 )       (342 )
Adjusted EBITDA       $ 46,650     $ 52,104       $ 136,222       $ 145,912  
                                         
                                         
       

Three Months Ended

September 30,

      

Nine Months Ended

September 30,

  
        2016     2015       2016       2015  
Net cash provided by operating activities       $ 31,311     $ 42,820       $ 96,021       $ 113,721  
Interest paid         3,889       4,517         17,880         20,422  
Income and franchise taxes paid         229       1,581         1,380         3,274  
Share-based compensation expense         (2,276 )     (4,096 )       (6,521 )       (10,833 )
Asset impairment charge, net         —       —         —         (66,128 )
Gain on sale of rental fleet         1,446       1,553         4,228         5,196  
Loss on disposal of property, plant and equipment         (400 )     (553 )       (1,089 )       (2,035 )
Changes in other assets and liabilities, net of

effect of businesses acquired

         8,647       (349 )       14,125         (967 )
EBITDA       $ 42,846     $ 45,473       $ 126,024       $ 62,650  
                                         
   
Mobile Mini, Inc.
Free Cash Flow GAAP Reconciliation
(Unaudited)
(in thousands)
                                         
     

Three Months Ended

September 30,

      

Nine Months Ended

September 30,

  
      2016       2015       2016       2015  
Net cash provided by operating activities     $ 31,311       $ 42,820       $ 96,021       $ 113,721  
                                         
Additions to rental fleet, excluding acquisitions       (18,322 )       (25,731 )       (46,480 )       (53,540 )
Proceeds from sale of rental fleet       3,361         3,925         10,770         13,300  
Additions to property, plant and equipment,

excluding acquisitions

       (6,487 )       (6,306 )       (25,750 )       (17,918 )
Proceeds from sale of property, plant and

equipment

       754         770         2,369         2,447  
Net capital expenditures, excluding acquisitions       (20,694 )       (27,342 )       (59,091 )       (55,711 )
                                         
Free cash flow     $ 10,617       $ 15,478       $ 36,930       $ 58,010  
                                         

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 United Kingdom 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 September 30, 2016 were $3.6 million higher than when calculated using GAAP.

Source: Mobile Mini, Inc.

Mobile Mini, Inc.
Mark Funk, 602-308-3879
Executive VP & Chief Financial Officer
www.mobilemini.com
or
INVESTOR RELATIONS COUNSEL:
The Equity Group Inc.
Fred Buonocore, 212-836-9607
or
Linda Latman, 212-836-9609