Mobile Mini Reports Q3’16 Results and Announces Quarterly Dividend
Rental revenues for the portable storage and specialty containment businesses for the current quarter were
The Company recorded net income of
Dividend
The Company’s Board of Directors declared a cash dividend of
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
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
About
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
(See accompanying tables)
Mobile Mini, Inc. |
||||||||||||||||||||||||||
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 |
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. |
||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Asset impairment charge and
loss on divestiture, net |
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 | ||||||
Asset impairment charge and
loss on divestiture, net |
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
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
View source version on businesswire.com: http://www.businesswire.com/news/home/20161025005627/en/
Source:
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