Comparable Quarter Increase in Lease Revenues
for Fourth Sequential Quarter
Enters Two More New Markets for a Total of 12
in 2011
Extends Maturity and Reduces Interest Rate on
Revolving Credit Facility
Company Website:
http://www.mobilemini.com
TEMPE, Ariz. -- (Business Wire)
Mobile Mini, Inc. (NASDAQ GS: MINI) today reported GAAP and non-GAAP
financial results for the fourth quarter and year ended December 31,
2011.
Fourth Quarter 2011 Compared to Fourth Quarter
2010
-
Total revenues rose 9.7% to $95.9 million from $87.4 million;
-
Leasing revenues rose 11.5% to $85.1 million from $76.3 million;
-
Lease revenues comprised 88.8% of total revenues compared to 87.3% of
total revenues;
-
Sales revenues rose 1.5% to $10.2 million from $10.0 million;
-
Sales margins were 37.9% compared to 32.9%;
-
Non-GAAP EBITDA was $37.2 million, up 6.6% compared to $34.9 million;
-
Non-GAAP net income rose 38.2% to $10.8 million from $7.8 million; and
-
Non-GAAP diluted earnings per share increased 33.3% to $0.24 from
$0.18.
Other Fourth Quarter 2011 Highlights
-
Free cash flow was $16.4 million;
-
Net debt was paid down by $12.0 million;
-
Yield (total lease revenues per unit on rent) increased 5.7% compared
to the fourth quarter of 2010 primarily due to an increase in trucking
revenues and a year-over-year average rental rate increase of 2.2%;
-
Average utilization rate was 61.0% in the fourth quarter, up from
57.7% in the third quarter of 2011, and 55.5% in the fourth quarter of
2010; and
-
Excess availability under our revolver at year-end increased to $454.9
million.
2011 Compared to 2010
-
Total revenues increased 10.2% to $364.4 million from $330.8 million;
-
Leasing revenues rose 8.1% to $318.9 million and comprised 87.5% of
total revenues compared to $295.0 million and 89.2% of total revenues;
-
Sales revenues rose 29.2% to $42.8 million with margins of 36.8%
compared to $33.2 million with margins of 33.7%;
-
Non-GAAP EBITDA rose 4.8% to $136.1 million from $129.9 million;
-
Non-GAAP net income increased 45.3% to $33.8 million compared to $23.3
million;
-
Non-GAAP diluted earnings per share increased 43.4% to $0.76 from
$0.53;
-
Free cash flow was $80.0 million compared to $66.2 million; and
-
Net debt was paid down by $75.3 million, after payment of a $1.1
million call premium related to the redemption of $22.3 million of MSG
Senior Notes, compared to 2010’s $55.7 million after payment of the
$8.9 million call premium relating to a senior note refinancing.
Non-GAAP reconciliation tables are on page 7, and show the nearest
comparable GAAP results to the Non-GAAP results.
Business Overview
Mobile Mini’s Chairman, President & CEO, Steven Bunger stated, “Building
upon the favorable performance of the first nine months, 2011 ended on
an especially strong note. The top line growth in the final quarter was
almost entirely due to an 11.5% increase in comparable quarter lease
revenues, furthering the momentum generated when 2011 first, second and
third quarter lease revenues rose 3.6%, 7.6% and 9.3% over the
respective 2010 quarters. Improvements in utilization and yield drove
the comparable quarter increase in lease revenues. Average utilization
rose to 61.0% from 55.5% in the final quarter of 2010, as units on rent
continued to increase in both North America and Europe. Beyond an
improving economic environment, the gains in utilization reflect the
opening of new locations in North America, the repositioning of lease
assets to these and other high demand locations, and very strong holiday
season rentals in 2011 versus 2010. The improvement in lease revenues,
as noted, was also due to yield, which was 5.7% ahead of the fourth
quarter of 2010 due to increased trucking revenues and a year-over-year
average rental rate increase of 2.2%.”
Mr. Bunger pointed out, "We have been investing in the future growth of
our business, most notably by entering 12 new markets during 2011
including two acquisitions, just prior to year-end, one in Calgary,
Alberta and one in Huntsville, AL. To establish the Calgary branch, our
fourth location in Canada, we acquired the largest portable storage
operator in that area. For both the Calgary branch and the Huntsville
operational yard, we purchased revenue-generating lease fleets, enabling
us to forego the majority of start-up expenses in these new markets. Our
2011 locations have been ramping up units on lease and performing
according to plan.”
He continued, "As a result of an increase in utilization coupled with
our operating leverage, our non-GAAP EBITDA margins increased 2.0
percentage points from 36.8% in the 2011 third quarter to 38.8% for the
fourth quarter. On a year-over-year basis, the combination of more
deliveries which have lower associated margins, higher repair and
maintenance expense, long-distance fleet repositioning, as well as
entering 12 new markets, slightly depressed Mobile Mini's fourth quarter
non-GAAP EBITDA margin to 38.8% from last year's 40.0%. We see these
investments as positive signs that our growth initiatives are well
underway.”
Mark Funk, Mobile Mini’s Executive Vice President & CFO noted, "As of
2011 year-end, we generated free cash flow for 16 consecutive quarters.
Fourth quarter free cash flow totaled $16.4 million bringing the 2011
total to $80.0 million. Cash flow from operations of $21.2 million
enhanced our ability to pay down an additional $12.0 million of debt in
the fourth quarter, bringing the full year’s debt pay down to $75.3
million after payment of a $1.1 million call premium related to
redeeming the remaining $22.3 million of previously outstanding MSG
Senior Notes. Since the acquisition of Mobile Storage Group in mid-2008,
we have generated free cash flow of $258.5 million and paid down $235.3
million of debt. As a result of our senior note refinancing in November
2010, our 2011 debt pay down and lower interest rates, our 2011 interest
expense has been reduced by 18% or $10.1 million compared to 2010.”
Extends Revolving Credit Agreement
Mobile Mini also announced that it has extended the maturity of its
asset-based revolving credit facility (“ABL”) to February 22, 2017, or
five years from closing. The previous asset-based revolving credit
facility would have matured on June 27, 2013. At closing, the interest
rate on borrowings under the new agreement is LIBOR plus 2.25%, reduced
from LIBOR plus 2.75% under the prior agreement. The maximum principal
amount has increased to $900 million from $850 million. The other terms
of the ABL credit agreement also provide additional flexibility compared
to the prior agreement.”
According to Mr. Funk, “Based upon Mobile Mini’s outstanding borrowings
at December 31, 2011, the new lower interest rate would have produced
annualized savings of over $1.7 million. With a more favorable interest
rate, greater borrowing availability and a five year maturity, the new
facility strengthens Mobile Mini’s capital structure, enhances our
liquidity and saves us interest expense.”
He continued, “We appreciate the continued support of Deutsche Bank AG,
Bank of America, JP Morgan and our other lenders for their confidence in
our growth strategy.”
Outlook
Mr. Bunger went on to say, “We plan to add at least eight new markets
this year, following our entry into 12 new markets in 2011, and three in
2010. The first of this year was opened in Rochester, NY and with this
new operational yard, our reach extends to another major New York
market. During 2012, we are expanding our focus on the consumer market.
At present, we offer storage to consumers at five of our existing
locations. This year we plan to add to our product offering including
providing warehouse storage in seven of our current markets.”
Mr. Bunger concluded, “As we continue to build on our current momentum,
we expect that Mobile Mini will achieve gains in revenues, lease
revenues, EBITDA and net income in 2012. We are likewise confident that
the actions undertaken to strengthen, grow and expand our operations,
supported by a strong and flexible financial framework, will continue to
have enduring and cumulative benefits.”
EBITDA, EBITDA margin, non-GAAP SG&A and free cash flow are non-GAAP
financial measures as defined by Securities and Exchange Commission
(“SEC”) rules. Reconciliations of EBITDA, EBITDA margin, and free cash
flow to the most directly comparable GAAP financial measures can be
found later in this release.
Conference Call
Mobile Mini will host a conference call today, Friday, February 24, 2012
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 Investors section and will be available in advance and after the
call. We will also post the reconciliation of non-GAAP financial
measures used in the slide show to the most directly comparable GAAP
financial measures. 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 conference call can be accessed for
approximately 14 days after the call at Mobile Mini’s website.
Mobile Mini, Inc. is the world’s leading provider of portable storage
solutions through its total lease fleet of approximately 237,600
portable storage containers and office units with 134 locations in the
U.S., United Kingdom, Canada and The Netherlands. Mobile Mini is
included on the Russell 2000® and 3000® Indexes
and the S&P Small Cap Index.
This news release contains forward-looking statements, particularly
regarding growth, free cash flow, ability to enter new markets, increase
in utilization, the ability to strengthen, grow and expand our
operations, and increasing debt pay down, 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 SEC filings. 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.
|
|
|
|
Mobile Mini, Inc. Condensed Consolidated Statements of Income
(Unaudited)/(in
000’s except per share data)/(includes effects of rounding)
|
|
|
|
| |
| |
| | | |
Three Months Ended
December 31,
| |
Three Months Ended
December 31,
|
| | | |
2011
|
|
2011
| |
2010
|
|
2010
|
|
Revenues:
| | | |
Actual
|
|
Non-GAAP (1)
| |
Actual
|
|
Non-GAAP (1)
|
|
Leasing
| | | |
$
|
85,127
| | |
$
|
85,127
| | |
$
|
76,345
| | |
$
|
76,345
| |
|
Sales
| | | | |
10,181
| | | |
10,181
| | | |
10,030
| | | |
10,030
| |
|
Other
| | | |
|
597
|
|
|
|
597
|
| |
|
1,044
|
|
|
|
1,044
|
|
|
Total revenues
| | | |
|
95,905
|
|
|
|
95,905
|
| |
|
87,419
|
|
|
|
87,419
|
|
|
Costs and expenses:
| | | | | | | | | | |
|
Cost of sales
| | | | |
6,325
| | | |
6,325
| | | |
6,731
| | | |
6,731
| |
|
Leasing, selling and general expenses (2)
| | | | |
52,969
| | | |
52,354
| | | |
45,761
| | | |
45,756
| |
Integration, merger and restructuring expenses (3)
| | | | |
599
| | | |
-
| | | |
342
| | | |
-
| |
|
Depreciation and amortization
| | | |
|
8,963
|
|
|
|
8,963
|
| |
|
8,758
|
|
|
|
8,758
|
|
|
Total costs and expenses
| | | |
|
68,856
|
|
|
|
67,642
|
| |
|
61,592
|
|
|
|
61,245
|
|
|
Income from operations
| | | | |
27,049
| | | |
28,263
| | | |
25,827
| | | |
26,174
| |
| | | | | | | | | |
|
|
Other income (expense):
| | | | | | | | | | |
|
Interest expense
| | | | |
(10,883
|
)
| | |
(10,883
|
)
| | |
(13,295
|
)
| | |
(13,295
|
)
|
|
Debt restructuring expense (4)
| | | | |
-
| | | |
-
| | | |
(11,024
|
)
| | |
-
| |
|
Foreign currency exchange
| | | |
|
(5
|
)
|
|
|
(5
|
)
| |
|
-
|
|
|
|
-
|
|
|
Income before provision for income taxes
| | | | |
16,161
| | | |
17,375
| | | |
1,508
| | | |
12,879
| |
|
Provision for income taxes
| | | |
|
6,121
|
|
|
|
6,531
|
| |
|
657
|
|
|
|
5,033
|
|
|
Net income
| | | | |
10,040
| | | |
10,844
| | | |
851
| | | |
7,846
| |
Earnings allocable to preferred stockholders
| | | |
|
-
|
|
|
|
-
|
| |
|
(159
|
)
|
|
|
(1,477
|
)
|
|
Net income available to common stockholders
| | | |
$
|
10,040
|
|
|
$
|
10,844
|
| |
$
|
692
|
|
|
$
|
6,369
|
|
| | | | | | | | | |
|
|
Earnings per share:
| | | | | | | | | | |
|
Basic
| | | |
$
|
0.23
|
|
|
$
|
0.25
|
| |
$
|
0.02
|
|
|
$
|
0.18
|
|
|
Diluted
| | | |
$
|
0.23
|
|
|
$
|
0.24
|
| |
$
|
0.02
|
|
|
$
|
0.18
|
|
| | | | | | | | | |
|
Weighted average number of common and common share equivalents
outstanding:
| | | | | | | | | | |
|
Basic
| | | |
|
44,038
|
|
|
|
44,038
|
| |
|
35,332
|
|
|
|
35,332
|
|
|
Diluted
| | | |
|
44,611
|
|
|
|
44,611
|
| |
|
44,131
|
|
|
|
43,131
|
|
|
EBITDA
| | | |
$
|
36,007
|
|
|
$
|
37,221
|
| |
$
|
34,585
|
|
|
$
|
34,932
|
|
|
(1)
|
This column represents a non-GAAP presentation even though some
individual line items presented, such as revenues, are identical
under both GAAP and non-GAAP presentations.
|
|
(2)
|
In 2011, the difference primarily relates to acquisition activity
costs that are excluded in the non-GAAP presentation.
In
2010, the difference represents one-time costs that are excluded
in the non-GAAP presentation.
|
|
(3)
|
Integration, merger and restructuring expenses represent costs
relating primarily to the restructuring of our operations that are
excluded in the non-GAAP presentation.
|
|
(4)
|
Represents the tender premiums and the remaining unamortized
acquisition date discount on the redemption of $176.6 million in
2010 of 9.75% Notes and is excluded in the non-GAAP presentation.
|
|
|
|
| |
| |
|
|
Mobile Mini, Inc. Condensed Consolidated Statements of Income
(Unaudited)/(in
000’s except per share data)/(includes effects of rounding)
|
|
|
| | | |
Twelve Months Ended
December 31,
| |
Twelve Months Ended
December 31,
|
|
Revenues:
| | | |
2011
Actual
|
|
2011
Non-GAAP (1)
| |
2010
Actual
|
|
2010
Non-GAAP (1)
|
|
Leasing
| | | |
$
|
318,863
| |
|
$
|
318,863
| | |
$
|
295,034
| |
|
$
|
295,034
| |
|
Sales
| | | | |
42,842
| | | |
42,842
| | | |
33,156
| | | |
33,156
| |
|
Other
| | | |
|
2,723
|
|
|
|
2,723
|
| |
|
2,567
|
|
|
|
2,567
|
|
|
Total revenues
| | | |
|
364,428
|
|
|
|
364,428
|
| |
|
330,757
|
|
|
|
330,757
|
|
|
Costs and expenses:
| | | | | | | | | | |
|
Cost of sales
| | | | |
27,070
| | | |
27,070
| | | |
21,997
| | | |
21,997
| |
|
Leasing, selling and general expenses (2)
| | | | |
203,236
| | | |
201,220
| | | |
179,121
| | | |
178,846
| |
|
Integration, merger and restructuring expenses (3)
| | | | |
1,361
| | | |
-
| | | |
4,014
| | | |
-
| |
|
Depreciation and amortization
| | | |
|
35,665
|
|
|
|
35,665
|
| |
|
35,686
|
|
|
|
35,686
|
|
|
Total costs and expenses
| | | |
|
267,332
|
|
|
|
263,955
|
| |
|
240,818
|
|
|
|
236,529
|
|
|
Income from operations
| | | | |
97,096
| | | |
100,473
| | | |
89,939
| | | |
94,228
| |
|
Other income (expense):
| | | | | | | | | | |
|
Interest income
| | | | |
-
| | | |
-
| | | |
1
| | | |
1
| |
|
Interest expense
| | | | |
(46,342
|
)
| | |
(46,342
|
)
| | |
(56,430
|
)
| | |
(56,430
|
)
|
|
Debt restructuring expense (4)
| | | | |
(1,334
|
)
| | |
-
| | | |
(11,024
|
)
| | |
-
| |
|
Deferred financing costs write-off (5)
| | | | |
-
| | | |
-
| | | |
(525
|
)
| | |
-
| |
|
Foreign currency exchange
| | | |
|
(7
|
)
|
|
|
(7
|
)
| |
|
(9
|
)
|
|
|
(9
|
)
|
|
Income before provision for income taxes
| | | | |
49,413
| | | |
54,124
| | | |
21,952
| | | |
37,790
| |
|
Provision for income taxes (6)
| | | |
|
17,549
|
|
|
|
20,345
|
| |
|
8,443
|
|
|
|
14,538
|
|
|
Net income
| | | | |
31,864
| | | |
33,779
| | | |
13,509
| | | |
23,252
| |
|
Earnings allocable to preferred stockholders
| | | |
|
(970
|
)
|
|
|
(1,160
|
)
| |
|
(2,550
|
)
|
|
|
(4,367
|
)
|
|
Net income available to common stockholders
| | | |
$
|
30,894
|
|
|
$
|
32,619
|
| |
$
|
10,959
|
|
|
$
|
18,885
|
|
|
Earnings per share:
| | | | | | | | | | |
|
Basic
| | | |
$
|
0.74
|
|
|
$
|
0.78
|
| |
$
|
0.31
|
|
|
$
|
0.54
|
|
|
Diluted
| | | |
$
|
0.71
|
|
|
$
|
0.76
|
| |
$
|
0.31
|
|
|
$
|
0.53
|
|
| | | | | | | | | |
|
|
Weighted average number of common and common share equivalents
outstanding:
| | | | | | | | | | |
|
Basic
| | | |
|
41,566
|
|
|
|
41,566
|
| |
|
35,196
|
|
|
|
35,196
|
|
|
Diluted
| | | |
|
44,569
|
|
|
|
44,569
|
| |
|
43,829
|
|
|
|
43,829
|
|
|
EBITDA
| | | |
$
|
132,754
|
|
|
$
|
136,131
|
| |
$
|
125,617
|
|
|
$
|
129,906
|
|
|
(1)
|
This column represents a non-GAAP presentation even though some
individual line items presented, such as revenues, are identical
under both GAAP and non-GAAP presentations.
|
|
(2)
|
In 2011, the difference primarily relates to start-up expenses
associated with the opening of our new locations, asset
repositioning expenses and acquisition activity costs that are
excluded in the non-GAAP presentation. In 2010, the difference
represents one-time events that are excluded in the non-GAAP
presentation.
|
|
(3)
|
Integration, merger and restructuring expenses represent costs
relating primarily to the restructuring of our operations that are
excluded in the non-GAAP presentation.
|
|
(4)
|
Represents the tender premiums and the remaining unamortized
acquisition date discount on the redemption of $22.3 million in 2011
and $176.6 million in 2010 of 9.75% Notes that is excluded in the
non-GAAP presentation.
|
|
(5)
|
Represents that portion of deferred financing costs associated with
the $50 million reduction in the ABL Credit Agreement in 2010 that
is excluded in the non-GAAP presentation.
|
|
(6)
|
Provision for income taxes in 2011 includes approximately $1.0
million tax benefit related to a statutory tax rate reduction in the
United Kingdom that is excluded in the non-GAAP presentation.
|
|
|
|
|
|
Non-GAAP Reconciliation to Nearest Comparable GAAP Measure
Three
Months Ended December 31, 2011
(in thousands except per share
data)
(includes effects of rounding)
|
|
| |
|
Non-GAAP Reconciliation to Nearest Comparable GAAP Measure
Three
Months Ended December 31, 2010
(in thousands except per share
data)
(includes effects of rounding)
|
| | | | | |
| | | | | |
| | | | | |
| | |
Non-GAAP (1) |
|
Leasing,
selling and
general
expenses (2) |
|
Acquisition
Expenses (3) |
|
Integration,
merger and
restructuring
expenses (4) |
|
GAAP
| | |
Non-GAAP (1) |
|
Leasing,
selling
and
general
expenses (2) |
|
Integration,
merger and
restructuring
expenses (4) |
|
Debt
Restructuring
expense (5) |
|
GAAP
|
|
Revenues
| | |
$
|
95,905
| |
|
$
|
-
| |
|
$
|
-
| |
|
$
|
-
| |
|
$
|
95,905
| | | |
$
|
87,419
| | |
$
|
-
| |
|
$
|
-
| |
|
$
|
-
| |
|
$
|
87,419
| |
|
EBITDA
| | |
$
|
37,221
| | |
$
|
(5
|
)
| |
$
|
(610
|
)
| |
$
|
(599
|
)
| |
$
|
36,007
| | | |
$
|
34,932
| | |
$
|
(5
|
)
| |
$
|
(342
|
)
| |
$
|
-
| | |
$
|
34,585
| |
|
EBITDA margin
| | | |
38.8
|
%
| | |
(0.0
|
)%
| | |
(0.6
|
)%
| | |
(0.6
|
)%
| | |
37.5
|
%
| | | |
40.0
|
%
| | |
(0.0
|
)%
| | |
(0.4
|
)%
| | |
-
| | | |
39.6
|
%
|
|
Operating income
| | |
$
|
28,263
| | |
$
|
(5
|
)
| |
$
|
(610
|
)
| |
$
|
(599
|
)
| |
$
|
27,049
| | | |
$
|
26,174
| | |
$
|
(5
|
)
| |
$
|
(342
|
)
| |
$
|
-
| | |
$
|
25,827
| |
|
Operating income margin
| | | |
29.5
|
%
| | |
(0.0
|
)%
| | |
(0.6
|
)%
| | |
(0.6
|
)%
| | |
28.2
|
%
| | | |
29.9
|
%
| | |
0.0
|
%
| | |
(0.4
|
)%
| | |
-
| | | |
29.5
|
%
|
|
Pre tax income
| | |
$
|
17,375
| | |
$
|
(5
|
)
| |
$
|
(610
|
)
| |
$
|
(599
|
)
| |
$
|
16,161
| | | |
$
|
12,879
| | |
$
|
(5
|
)
| |
$
|
(342
|
)
| |
$
|
(11,024
|
)
| |
$
|
1,508
| |
|
Net income
| | |
$
|
10,844
| | |
$
|
(3
|
)
| |
$
|
(375
|
)
| |
$
|
(426
|
)
| |
$
|
10,040
| | | |
$
|
7,846
| | |
$
|
(3
|
)
| |
$
|
(212
|
)
| |
$
|
(6,780
|
)
| |
$
|
851
| |
|
Diluted earnings per share
| | |
$
|
0.24
| | |
$
|
(0.00
|
)
| |
$
|
(0.00
|
)
| |
$
|
(0.01
|
)
| |
$
|
0.23
| | | |
$
|
0.18
| | |
$
|
(0.00
|
)
| |
$
|
(0.01
|
)
| |
$
|
(0.15
|
)
| |
$
|
0.02
| |
|
| |
| |
Non-GAAP Reconciliation to Nearest Comparable GAAP Measure
Twelve
Months Ended December 31, 2011
(in thousands except per share
data)
(includes effects of rounding)
|
| |
Non-GAAP (1) |
|
Leasing,
selling and
general
expenses (2) |
|
Acquisition
Expenses(3) |
|
Integration,
merger and
restructuring
expenses (4) |
|
Debt
restructuring
expense (5) |
|
Income Tax
Benefit (6) |
|
GAAP
|
|
Revenues
| |
$
|
364,428
| |
|
$
|
-
| |
|
$
|
-
| |
|
$
|
-
| |
|
$
|
-
| |
|
$
|
-
|
|
$
|
364,428
| |
|
EBITDA
| |
$
|
136,131
| | |
$
|
(1,406
|
)
| |
$
|
(610
|
)
| |
$
|
(1,361
|
)
| |
$
|
-
| | |
$
|
-
| |
$
|
132,754
| |
|
EBITDA margin
| | |
37.4
|
%
| | |
(0.4
|
)%
| | |
(0.1
|
)%
| | |
(0.4
|
)%
| | |
-
| | | |
-
| | |
36.4
|
%
|
|
Operating income
| |
$
|
100,473
| | |
$
|
(1,406
|
)
| |
$
|
(610
|
)
| |
$
|
(1,361
|
)
| |
$
|
-
| | |
$
|
-
| |
$
|
97,096
| |
|
Operating income margin
| | |
27.6
|
%
| | |
(0.4
|
)%
| | |
(0.1
|
)%
| | |
(0.4
|
)%
| | |
-
| | | |
-
| | |
26.6
|
%
|
|
Pre tax income
| |
$
|
54,124
| | |
$
|
(1,406
|
)
| |
$
|
(610
|
)
| |
$
|
(1,361
|
)
| |
$
|
(1,334
|
)
| |
$
|
-
| |
$
|
49,413
| |
|
Net income
| |
$
|
33,779
| | |
$
|
(865
|
)
| |
$
|
(375
|
)
| |
$
|
(893
|
)
| |
$
|
(820
|
)
| |
$
|
1,038
| |
$
|
31,864
| |
|
Diluted earnings per share
| |
$
|
0.76
| | |
$
|
(0.02
|
)
| |
$
|
(0.01
|
)
| |
$
|
(0.02
|
)
| |
$
|
(0.02
|
)
| |
$
|
0.02
| |
$
|
0.71
| |
|
|
Non-GAAP Reconciliation to Nearest Comparable GAAP Measure
Twelve
Months Ended December 31, 2010
(in thousands except per share
data)
(includes effects of rounding)
|
| |
| |
| |
| |
Non-GAAP (1) |
|
Leasing,
selling and
general
expenses (2) |
|
Integration,
merger and
restructuring
expenses (4) |
|
Debt
restructuring
expense (5) |
|
Deferred
financing costs
write-off (7) |
|
GAAP
|
|
Revenues
| |
$
|
330,757
| |
|
$
|
-
| |
|
$
|
-
| |
|
$
|
-
| |
|
$
|
-
| |
|
$
|
330,757
| |
|
EBITDA
| |
$
|
129,906
| | |
$
|
(275
|
)
| |
$
|
(4,014
|
)
| |
$
|
-
| | |
$
|
-
| | |
$
|
125,617
| |
|
EBITDA margin
| | |
39.3
|
%
| | |
(0.1
|
)%
| | |
(1.2
|
)%
| | |
-
| | | |
-
| | | |
38.0
|
%
|
|
Operating income
| |
$
|
94,228
| | |
$
|
(275
|
)
| |
$
|
(4,014
|
)
| |
$
|
-
| | |
$
|
-
| | |
$
|
89,939
| |
|
Operating income margin
| | |
28.5
|
%
| | |
(0.1
|
)%
| | |
(1.2
|
)%
| | |
-
| | | |
-
| | | |
27.2
|
%
|
|
Pre tax income
| |
$
|
37,790
| | |
$
|
(275
|
)
| |
$
|
(4,014
|
)
| |
$
|
(11,024
|
)
| |
$
|
(525
|
)
| |
$
|
21,952
| |
|
Net income
| |
$
|
23,252
| | |
$
|
(169
|
)
| |
$
|
(2,471
|
)
| |
$
|
(6,780
|
)
| |
$
|
(323
|
)
| |
$
|
13,509
| |
|
Diluted earnings per share
| |
$
|
0.53
| | |
$
|
(0.00
|
)
| |
$
|
(0.06
|
)
| |
$
|
(0.15
|
)
| |
$
|
(0.01
|
)
| |
$
|
0.31
| |
|
(1)
|
This column represents a non-GAAP presentation even though some
individual line items presented, such as revenues, are identical
under both GAAP and non-GAAP presentations.
|
|
(2)
|
In 2011, the difference primarily relates to start-up expenses
associated with the opening of our new locations and asset
repositioning expenses that are excluded in the non-GAAP
presentation. In 2010, the difference represents one-time events
that are excluded in the non-GAAP presentation.
|
|
(3)
|
Represents acquisition activity costs that are excluded in the
non-GAAP presentation.
|
|
(4)
|
Integration, merger and restructuring expenses represent costs
relating primarily to the restructuring of our operations that are
excluded in the non-GAAP presentation.
|
|
(5)
|
Represents the tender premiums and the remaining unamortized
acquisition date discount on the redemption of $22.3 million in 2011
and $176.6 million in 2010 of 9.75% Notes that is excluded in the
non-GAAP presentation.
|
|
(6)
|
Represents a statutory tax rate reduction in the United Kingdom that
is excluded in the non-GAAP presentation.
|
|
(7)
|
Represents that portion of deferred financing costs associated with
the $50 million reduction in the ABL Credit Agreement that is
excluded in the non-GAAP presentation.
|
|
|
This press release includes the financial measures “EBITDA”, “EBITDA
margin”, “non-GAAP SG&A” and “free cash flow”. These measurements are
deemed “non-GAAP financial measures” under rules of the SEC, including
Regulation G. This non-GAAP financial information may be determined or
calculated differently by other companies.
EBITDA is defined as net income before interest expense, income taxes,
depreciation and amortization, and if applicable, debt restructuring or
extinguishment costs. We typically further adjust EBITDA to ignore the
effect of what we consider transactions or events not related to our
core business to arrive at non-GAAP EBITDA in the reconciliation below.
The GAAP financial measure that is most directly comparable to EBITDA is
net cash provided by operating activities. EBITDA margin is calculated
by dividing consolidated EBITDA by total revenues. The GAAP financial
measure that is most directly comparable to EBITDA margin is operating
margin, which represents operating income divided by revenues. We
present EBITDA and EBITDA margin because we believe they provide useful
information regarding our ability to meet our future debt payment
requirements, capital expenditures and working capital requirements and
they provide an overall evaluation of our financial condition. In
addition, EBITDA is a component of certain financial covenants under our
revolving credit facility and is used to determine our available
borrowing ability and the interest rate. We include EBITDA in the
earnings announcement to provide transparency to investors. EBITDA has
certain limitations as an analytical tool and should not be used as a
substitute for net income, cash flows, or other consolidated income or
cash flow data prepared in accordance with GAAP or as a measure of our
profitability or our liquidity. EBITDA margin is presented along with
the operating margin so as not to imply that more emphasis should be
placed on it than the corresponding GAAP measure.
Free cash flow is defined as net cash provided by operating activities,
less net cash used in investing activities, excluding acquisitions. 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
GAAP financial measure. 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 the Company’s existing businesses, debt service
obligations and strategic acquisitions.
Non-GAAP SG&A permits a comparative assessment of our SG&A expenses by
excluding certain one-time expenses to make a more meaningful comparison
of our operating performance.
A reconciliation of EBITDA to net cash provided by operating activities
and net income to EBITDA and non-GAAP EBITDA, as well as a
reconciliation of net cash provided by operating activities to free cash
flow, follows. These reconciliations are in thousands and include
effects of rounding.
|
|
| |
| |
| | | Three Months Ended
December 31, | | Twelve Months Ended
December 31, |
| | | 2011 |
| 2010 | | 2011 |
| 2010 |
| | |
(In thousands)
| |
(In thousands)
|
Reconciliation of EBITDA to net cash provided by operating
activities:
| | | |
| | | |
| |
|
EBITDA
| | |
$
|
36,007
| | |
$
|
34,585
| | |
$
|
132,754
| | |
$
|
125,617
| |
|
Interest paid
| | | |
(9,603
|
)
| | |
(15,582
|
)
| | |
(42,683
|
)
| | |
(56,582
|
)
|
|
Income and franchise taxes paid
| | | |
(97
|
)
| | |
(87
|
)
| | |
(816
|
)
| | |
(823
|
)
|
|
Share-based compensation expense
| | | |
1,895
| | | |
1,387
| | | |
6,456
| | | |
6,292
| |
|
Gain on sale of lease fleet units
| | | |
(3,134
|
)
| | |
(2,884
|
)
| | |
(13,800
|
)
| | |
(10,045
|
)
|
|
Loss on disposal of property, plant and equipment
| | | |
106
| | | |
113
| | | |
91
| | | |
34
| |
Changes in certain assets and liabilities, net of effect of
businesses acquired:
| | | | | | | | | |
|
Receivables
| | | |
1,994
| | | |
894
| | | |
(4,148
|
)
| | |
(2,077
|
)
|
|
Inventories
| | | |
(1,666
|
)
| | |
913
| | | |
(1,242
|
)
| | |
2,506
| |
|
Deposits and prepaid expenses
| | | |
154
| | | |
(1,336
|
)
| | |
1,067
| | | |
1,486
| |
|
Other assets and intangibles
| | | |
63
| | | |
172
| | | |
(33
|
)
| | |
(200
|
)
|
|
Accounts payable and accrued liabilities
| | |
|
(4,554
|
)
|
|
|
457
|
| |
|
7,323
|
|
|
|
(5,403
|
)
|
|
Net cash provided by operating activities
| | |
$
|
21,165
|
|
|
$
|
18,632
|
| |
$
|
84,969
|
|
|
$
|
60,805
|
|
| | | | | | | | |
|
| | | | | | | | |
|
Reconciliation of net income to EBITDA and non-GAAP EBITDA:
| | | | | | | | | |
|
Net income
| | |
$
|
10,040
| | |
$
|
851
| | |
$
|
31,864
| | |
$
|
13,509
| |
|
Interest expense
| | | |
10,883
| | | |
13,295
| | | |
46,342
| | | |
56,430
| |
|
Provision for income taxes
| | | |
6,121
| | | |
657
| | | |
17,549
| | | |
8,443
| |
|
Depreciation and amortization
| | | |
8,963
| | | |
8,758
| | | |
35,665
| | | |
35,686
| |
|
Debt restructuring expense
| | | |
-
| | | |
11,024
| | | |
1,334
| | | |
11,024
| |
|
Deferred financing costs write-off
| | |
|
-
|
|
|
|
-
|
| |
|
-
|
|
|
|
525
|
|
|
EBITDA
| | | |
36,007
| | | |
34,585
| | | |
132,754
| | | |
125,617
| |
|
Leasing, selling and general expenses
| | | |
5
| | | |
5
| | | |
1,406
| | | |
275
| |
|
Acquisition costs
| | |
|
610
|
|
|
|
-
|
| |
|
610
|
|
|
|
-
|
|
|
Integration, merger and restructuring expenses
| | |
|
599
|
|
|
|
342
|
| |
|
1,361
|
|
|
|
4,014
|
|
|
Non-GAAP EBITDA
| | |
$
|
37,221
|
|
|
$
|
34,932
|
| |
$
|
136,131
|
|
|
$
|
129,906
|
|
| | | | | | | | |
|
| | | | | | | | |
|
Reconciliation of net cash provided by operating activities to
free cash flow:
| | | | | | | | | |
|
Net cash provided by operating activities
| | |
$
|
21,165
| | |
$
|
18,632
| | |
$
|
84,969
| | |
$
|
60,805
| |
| | | | | | | | |
|
|
Additions to lease fleet
| | | |
(10,268
|
)
| | |
(3,871
|
)
| | |
(29,824
|
)
| | |
(15,103
|
)
|
|
Proceeds from sale of lease fleet units
| | | |
8,363
| | | |
8,594
| | | |
36,201
| | | |
28,860
| |
|
Additions to property, plant and equipment
| | | |
(2,905
|
)
| | |
(4,784
|
)
| | |
(11,498
|
)
| | |
(8,555
|
)
|
|
Proceeds from sale of property, plant and equipment
| | |
|
25
|
|
|
|
29
|
| |
|
117
|
|
|
|
149
|
|
|
Net capital (expenditures) proceeds excluding acquisitions
| | |
|
(4,785
|
)
|
|
|
(32
|
)
| |
|
(5,004
|
)
|
|
|
5,351
|
|
| | | | | | | | |
|
|
Free cash flow
| | |
$
|
16,380
|
|
|
$
|
18,600
|
| |
$
|
79,965
|
|
|
$
|
66,156
|
|
| | | | | | | | | | | | | | | | |
|
|
|
|
|
|
| |
| |
Mobile Mini, Inc.
Condensed Consolidated Balance Sheets
(in
000’s except par value data)
(includes effects of rounding)
|
| | | | | | | |
|
| | | | | | December 31,
2011 | | December 31,
2010 |
| | | | | | (unaudited) | | (audited) |
| ASSETS |
|
Cash
| | | | | |
$
|
2,860
| | |
$
|
1,634
| |
|
Receivables, net
| | | | | | |
47,102
| | | |
42,678
| |
|
Inventories
| | | | | | |
20,803
| | | |
19,569
| |
|
Lease fleet, net
| | | | | | |
1,018,742
| | | |
1,028,403
| |
|
Property, plant and equipment, net
| | | | | | |
79,875
| | | |
80,731
| |
|
Deposits and prepaid expenses
| | | | | | |
7,338
| | | |
8,405
| |
|
Other assets and intangibles, net
| | | | | | |
16,862
| | | |
23,478
| |
|
Goodwill
| | | | | |
|
514,469
|
| |
|
511,419
|
|
|
Total assets
| | | | | |
$
|
1,708,051
|
| |
$
|
1,716,317
|
|
| | | | | | | |
|
| | | | | | | |
|
| LIABILITIES AND STOCKHOLDERS' EQUITY |
|
Liabilities:
| | | | | | | | |
|
Accounts payable
| | | | | |
$
|
20,849
| | |
$
|
13,607
| |
|
Accrued liabilities
| | | | | | |
46,369
| | | |
49,276
| |
|
Lines of credit
| | | | | | |
345,149
| | | |
396,882
| |
|
Notes payable
| | | | | | |
316
| | | |
289
| |
|
Obligations under capital leases
| | | | | | |
1,289
| | | |
2,576
| |
|
Senior Notes, net
| | | | | | |
349,718
| | | |
371,655
| |
|
Deferred income taxes
| | | | | |
|
183,550
|
| |
|
165,567
|
|
|
Total liabilities
| | | | | |
|
947,240
|
| |
|
999,852
|
|
| | | | | | | |
|
|
Commitments and contingencies
| | | | | | | | |
| | | | | | | |
|
Convertible preferred stock; $.01 par value, 20,000 shares
authorized, 8,556 issued and 8,191 outstanding at December 31,
2010, stated at liquidation preference value
| | | | | | | | |
147,427
| |
| | | | | | | |
|
|
Stockholders' equity:
| | | | | | | | |
Common stock; $.01 par value, 95,000 shares authorized, 47,787
issued and 45,612 outstanding at December 31, 2011 and 38,962
issued and 36,787 outstanding at December 31, 2010
| | | | | | |
478
| | | |
390
| |
|
Additional paid-in capital
| | | | | | |
508,936
| | | |
349,693
| |
|
Retained earnings
| | | | | | |
316,106
| | | |
284,242
| |
|
Accumulated other comprehensive loss
| | | | | | |
(25,409
|
)
| | |
(25,987
|
)
|
|
Treasury stock, at cost, 2,175 shares
| | | | | |
|
(39,300
|
)
| |
|
(39,300
|
)
|
|
Total stockholders' equity
| | | | | |
|
760,811
|
| |
|
569,038
|
|
|
Total liabilities and stockholders' equity
| | | | | |
$
|
1,708,051
|
| |
$
|
1,716,317
|
|
Contacts:
Mobile Mini, Inc.
Mark Funk, Executive VP & Chief Financial
Officer
480-477-0241
-OR-
Investor Relations
Counsel:
The Equity Group Inc.
Linda Latman, 212-836-9609
Lena
Cati, 212-836-9611
www.mobilemini.com
Source: Mobile Mini, Inc.
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