Mobile Mini Reports Q4 2019 Results and Announces Quarterly Dividend

PHOENIX--()--Mobile Mini, Inc. (NASDAQ GS: MINI) (the “Company” or “Mobile Mini”), the world’s leading supplier of portable storage solutions and a leading provider of tank and pump solutions in the United States, today reported actual and adjusted financial results for the quarter ended December 31, 2019.

The Company realized net income of $29.0 million, or $0.66 per diluted share, in the fourth quarter of 2019. On an adjusted basis, fourth quarter net income was $29.8 million, or $0.67 per diluted share, as compared to adjusted net income of $23.7 million, or $0.53 per diluted share, for the same period last year. Adjusted EBITDA was $68.1 million and adjusted EBITDA margin was 42.7% for the fourth quarter of 2019.

Total revenues were $159.3 million and rental revenues were $152.1 million for the fourth quarter of 2019, as compared to $160.9 million and $152.0 million, respectively, for the same period last year. Rental revenues for the Storage Solutions and Tank & Pump Solutions businesses for the current quarter were $125.5 million and $26.6 million, respectively, compared to $122.2 million and $29.9 million for the same period last year.

Dividend

The Company’s Board of Directors declared a cash dividend of 30.3 cents per share, which will be paid on March 11, 2020 to shareholders of record as of February 26, 2020.

Fourth Quarter 2019 Highlights

  • Drove healthy year-over-year growth of 4.1% in North American Storage Solutions rental revenue.
  • Grew consolidated adjusted EBITDA 7.6%, year-over-year, and expanded adjusted EBITDA margin by 340 basis points to 42.7%, driven by a 460 basis point year-over-year increase for Storage Solutions.
  • Generated cash from operating activities of $60.8 million for the quarter and $212.7 million for the full year, resulting in free cash flow of $51.1 million for the quarter and $143.1 million for the year, nearly double the prior year.
  • Raised North American Storage Solutions core (excluding seasonal) rates 4.5% year-over-year, with rates on newly placed units up 5.4%.
  • Maintained strong average OEC utilization rate of 80.6% for Storage Solutions.
  • Further increased return on capital employed to 10.1% as of December 31, 2019, exceeding our weighted average cost of capital and improving 160 basis points from December 31, 2018.
  • Decreased leverage ratio to 3.6x as of December 31, 2019 compared to 4.2x as of December 31, 2018.
  • Completed three acquisitions in the quarter, thereby strengthening our existing operations in Missouri and New York and expanding our serviceable reach in the Bloomington, Illinois market.

CEO Comments

Kelly Williams, Mobile Mini’s President and Chief Executive Officer, remarked, “Our record free cash flow generation in 2019 reflects the strength of our business model and provides us with considerable flexibility in capital allocation. Our strong fourth quarter 2019 financial performance is highlighted by 7.6% year-over-year growth in consolidated adjusted EBITDA, along with margin expansion of 340 basis points to 42.7%. I am especially pleased with the performance of our North America Storage Solutions business which included rental revenue growth of 4.1% and a very robust adjusted EBITDA margin of 47.3%.”

Mr. Williams continued, “In the twelve months ended December 31, 2019, we executed our strategic plan and delivered on our Evergreen model. We also nearly doubled free cash flow in 2019 relative to the prior year. We enter 2020 from a position of operational and financial strength, with a large and diversified customer base and a sustainable operational cadence. On a consolidated basis, in 2020 we expect to continue to grow rental revenues by GDP plus 2% to 3% while expanding adjusted EBITDA margin and generating strong levels of consolidated free cash flow, exceeding 2019 amounts.”

Conference Call

Mobile Mini will host a conference call tomorrow, January 29th at 9 am 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 Investor Relations 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 90 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 200,200 storage solutions containers and office units and a leading provider of tank and pump solutions in the U.S., with a rental fleet of approximately 12,700 units. Mobile Mini’s network is comprised of 156 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 grow our business with existing and new customers, as well as our ability to grow above GDP, expand adjusted EBITDA margins, and generate strong free cash flow, all of which involve risks and uncertainties that could cause actual results to differ materially from those currently anticipated. Risks and uncertainties that may affect future results include those that are described from time to time in the Company’s filings with the Securities and Exchange Commission (“SEC”). These forward-looking statements represent the judgment of the Company, as of the date of this release, and Mobile Mini disclaims any intent or obligation to update forward-looking statements.

(See accompanying tables)

 

Mobile Mini, Inc.

 

Condensed Consolidated Statements of Operations

 

(Unaudited)

 

(in thousands, except percentages and per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2019

 

 

Three Months Ended December 31, 2018

 

 

 

Actual

 

 

Adjustments

 

 

Adjusted (1)

 

 

Actual

 

 

Adjustments

 

 

Adjusted (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental

 

$

152,060

 

 

$

 

 

$

152,060

 

 

$

152,048

 

 

$

 

 

$

152,048

 

Sales

 

 

7,149

 

 

 

 

 

 

7,149

 

 

 

8,654

 

 

 

 

 

 

8,654

 

Other

 

 

57

 

 

 

 

 

 

57

 

 

 

167

 

 

 

 

 

 

167

 

Total revenues

 

 

159,266

 

 

 

 

 

 

159,266

 

 

 

160,869

 

 

 

 

 

 

160,869

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental, selling and general expenses

 

 

90,157

 

 

 

(972

)

 

 

89,185

 

 

 

95,090

 

 

 

 

 

 

95,090

 

Cost of sales

 

 

4,191

 

 

 

 

 

 

4,191

 

 

 

5,512

 

 

 

 

 

 

5,512

 

Restructuring expense

 

 

 

 

 

 

 

 

 

 

 

700

 

 

 

(700

)

 

 

 

Asset impairment charge and

loss on divestiture, net

 

 

 

 

 

 

 

 

 

 

 

3,862

 

 

 

(3,862

)

 

 

 

Depreciation and amortization

 

 

17,623

 

 

 

 

 

 

17,623

 

 

 

16,794

 

 

 

 

 

 

16,794

 

Total costs and expenses

 

 

111,971

 

 

 

(972

)

 

 

110,999

 

 

 

121,958

 

 

 

(4,562

)

 

 

117,396

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

47,295

 

 

 

972

 

 

 

48,267

 

 

 

38,911

 

 

 

4,562

 

 

 

43,473

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(9,633

)

 

 

 

 

 

(9,633

)

 

 

(10,725

)

 

 

 

 

 

(10,725

)

Foreign currency exchange

 

 

(95

)

 

 

 

 

 

(95

)

 

 

(5

)

 

 

 

 

 

(5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income tax provision

 

 

37,567

 

 

 

972

 

 

 

38,539

 

 

 

28,181

 

 

 

4,562

 

 

 

32,743

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision

 

 

8,551

 

 

 

226

 

 

 

8,777

 

 

 

13,933

 

 

 

(4,863

)

 

 

9,070

 

Net income

 

$

29,016

 

 

$

746

 

 

$

29,762

 

 

$

14,248

 

 

$

9,425

 

 

$

23,673

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA/Adjusted EBITDA

 

$

64,823

 

 

 

 

 

 

$

68,082

 

 

$

55,700

 

 

 

 

 

 

$

63,263

 

EBITDA/Adjusted EBITDA as a percentage of

total revenues

 

 

40.7

%

 

 

 

 

 

 

42.7

%

 

 

34.6

%

 

 

 

 

 

 

39.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.66

 

 

 

 

 

 

$

0.68

 

 

$

0.32

 

 

 

 

 

 

$

0.53

 

Diluted

 

 

0.66

 

 

 

 

 

 

 

0.67

 

 

 

0.32

 

 

 

 

 

 

 

0.53

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common and

common share equivalents outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

43,707

 

 

 

 

 

 

 

43,707

 

 

 

44,353

 

 

 

 

 

 

 

44,353

 

Diluted

 

 

44,266

 

 

 

 

 

 

 

44,266

 

 

 

44,885

 

 

 

 

 

 

 

44,885

 

(1)

 

Adjusted column for the three-month period ended December 31, 2019 excludes certain transactions that management believes are not indicative of our business.  Adjusted figures are a non-GAAP presentation.  See the non-GAAP reconciliations herein and the additional information regarding non-GAAP financial information following in this earnings release.  The adjustments for the three-month period ended December 31, 2019 include the following, along with the related tax effects:

 

  • Reduction of rental, selling and general expenses to exclude $0.5 million of expenses related to actual and potential acquisitions.
  • Reduction of rental, selling and general expenses to exclude $0.5 million of expenses related to a realignment of personnel and resources with our current business model and operational needs.

 

 

 

(2)

 

Adjusted column for the three-month period ended December 31, 2018 excludes certain transactions that management believes are not indicative of our business.  Adjusted figures are a non-GAAP presentation.  See the non-GAAP reconciliations herein and the additional information regarding non-GAAP financial information following in this earnings release.  The adjustments for the three-month period ended December 31, 2018 include the following:

 

  • Exclusion of costs of $0.7 million related to the restructuring of our business operations, along with the related tax effect.
  • Exclusion of an asset impairment charge and loss on divestiture, net of proceeds of $3.9 million related to assets that the Company placed as held for sale, along with the related tax effect.
  • Exclusion of $5.8 million in income tax provision resulting from an out-of-period adjustment recorded in the fourth quarter of 2018 to correct deferred tax assets that had been established in previous years.
 

Mobile Mini, Inc.

 

Condensed Consolidated Statements of Operations

 

(Unaudited)

 

(in thousands, except percentages and per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended December 31, 2019

 

 

Twelve Months Ended December 31, 2018

 

 

 

Actual

 

 

Adjustments

 

 

Adjusted (1)

 

 

Actual

 

 

Adjustments

 

 

Adjusted (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental

 

$

581,657

 

 

$

 

 

$

581,657

 

 

$

558,197

 

 

$

 

 

$

558,197

 

Sales

 

 

30,394

 

 

 

 

 

 

30,394

 

 

 

34,354

 

 

 

 

 

 

34,354

 

Other

 

 

574

 

 

 

 

 

 

574

 

 

 

678

 

 

 

 

 

 

678

 

Total revenues

 

 

612,625

 

 

 

 

 

 

612,625

 

 

 

593,229

 

 

 

 

 

 

593,229

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental, selling and general expenses

 

 

369,525

 

 

 

(7,202

)

 

 

362,323

 

 

 

364,123

 

 

 

 

 

 

364,123

 

Cost of sales

 

 

18,675

 

 

 

 

 

 

18,675

 

 

 

22,437

 

 

 

 

 

 

22,437

 

Restructuring expenses

 

 

 

 

 

 

 

 

 

 

 

2,006

 

 

 

(2,006

)

 

 

 

Asset impairment charge and

loss on divestiture, net

 

 

 

 

 

 

 

 

 

 

 

102,140

 

 

 

(102,140

)

 

 

 

Depreciation and amortization

 

 

70,583

 

 

 

 

 

 

70,583

 

 

 

67,000

 

 

 

 

 

 

67,000

 

Total costs and expenses

 

 

458,783

 

 

 

(7,202

)

 

 

451,581

 

 

 

557,706

 

 

 

(104,146

)

 

 

453,560

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

153,842

 

 

 

7,202

 

 

 

161,044

 

 

 

35,523

 

 

 

104,146

 

 

 

139,669

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

12

 

 

 

 

 

 

12

 

 

 

6

 

 

 

 

 

 

6

 

Interest expense

 

 

(41,378

)

 

 

 

 

 

(41,378

)

 

 

(40,904

)

 

 

 

 

 

(40,904

)

Deferred financing costs write-off

 

 

(123

)

 

 

123

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency exchange

 

 

(274

)

 

 

 

 

 

(274

)

 

 

64

 

 

 

 

 

 

64

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income tax

provision

 

 

112,079

 

 

 

7,325

 

 

 

119,404

 

 

 

(5,311

)

 

 

104,146

 

 

 

98,835

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision

 

 

28,345

 

 

 

919

 

 

 

29,264

 

 

 

2,751

 

 

 

22,475

 

 

 

25,226

 

Net income (loss)

 

$

83,734

 

 

$

6,406

 

 

$

90,140

 

 

$

(8,062

)

 

$

81,671

 

 

$

73,609

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA/Adjusted EBITDA

 

$

224,163

 

 

 

 

 

 

$

242,893

 

 

$

102,593

 

 

 

 

 

 

$

217,243

 

EBITDA/Adjusted EBITDA as a percentage of

total revenues

 

 

36.6

%

 

 

 

 

 

 

39.6

%

 

 

17.3

%

 

 

 

 

 

 

36.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.90

 

 

 

 

 

 

$

2.04

 

 

$

(0.18

)

 

 

 

 

 

$

1.66

 

Diluted

 

 

1.88

 

 

 

 

 

 

 

2.02

 

 

 

(0.18

)

 

 

 

 

 

 

1.64

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common and

common share equivalents outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

44,178

 

 

 

 

 

 

 

44,178

 

 

 

44,295

 

 

 

 

 

 

 

44,295

 

Diluted

 

 

44,550

 

 

 

 

 

 

 

44,550

 

 

 

44,295

 

 

 

 

 

 

 

44,980

 

(1)

 

Adjusted column for the twelve months ended December 31, 2019 excludes certain transactions that management believes are not indicative of our business.  Adjusted figures are a non-GAAP presentation.  See the non-GAAP reconciliations herein and the additional information regarding non-GAAP financial information following in this earnings release.  The adjustments for the twelve-month period ended December 31, 2019 include the following, along with the related tax effects:

 

  • Reduction of rental, selling and general expenses to exclude $3.6 million of non-cash share-based compensation related to transition agreements for our Chief Executive Officer who retired as an employee of the Company and assumed the position of Chairman of the Board. 
  • Reduction of rental, selling and general expenses to exclude $3.1 million of expenses related to actual and potential acquisitions.
  • Reduction of rental, selling and general expenses to exclude $0.5 million of expenses related to a realignment of personnel and resources with our current business model and operational needs.
  • Exclusion of $0.1 million of deferred financing costs that were written off in conjunction with the amendment of our lines of credit.

 

 

 

(2)

 

Adjusted column for the twelve months ended December 31, 2018 excludes certain transactions that management believes are not indicative of our business.  Adjusted figures are a non-GAAP presentation.  See the non-GAAP reconciliations herein and the additional information regarding non-GAAP financial information following in this earnings release.  The adjustments for the twelve-month period ended December 31, 2018 include the following:

 

  • Exclusion of $2.0 million related to the restructuring of our business operations, along with the related tax effect.
  • Exclusion of an asset impairment charge and loss on divestiture, net of proceeds of $102.1 million related to assets that the Company placed as held for sale during the period, along with the related tax effect.
  • Exclusion of $2.6 million in income tax benefit resulting from the reversal in the period of a provisional tax expense related to the repatriation of foreign earnings for the impact of the U.S. federal tax reform enacted in the fourth quarter of 2017.
  • Exclusion of $5.8 million in income tax provision resulting from an out-of-period adjustment recorded in the fourth quarter of 2018 to correct deferred tax assets that had been established in previous years.
 

Mobile Mini, Inc.

 

Operating Data

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

 

2018

 

As of December 31:

 

 

 

 

 

 

 

 

Stand-alone Storage Solutions locations

 

 

120

 

 

 

117

 

Stand-alone Tank & Pump Solutions locations

 

 

20

 

 

 

20

 

Combined Storage Solutions and Tank & Pump Solutions locations

 

 

16

 

 

 

17

 

Storage Solutions rental fleet units

 

 

200,200

 

 

 

195,600

 

Tank & Pump Solutions rental fleet units

 

 

12,700

 

 

 

12,600

 

 

 

 

 

 

 

 

 

 

Average utilization based on original equipment cost

 

 

 

 

 

 

 

 

Three months ended December 31:

 

 

 

 

 

 

 

 

Storage Solutions

 

 

80.6

%

 

 

82.9

%

Tank & Pump Solutions

 

 

68.6

%

 

 

76.0

%

Twelve months ended December 31:

 

 

 

 

 

 

 

 

Storage Solutions

 

 

77.9

%

 

 

74.2

%

Tank & Pump Solutions

 

 

71.1

%

 

 

74.0

%

 

Mobile Mini, Inc.

 

Business Segment Information - Adjusted (1)

 

(Unaudited)

 

(in thousands, except percentages)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2019

 

 

 

Storage Solutions

 

 

 

 

 

 

 

 

 

 

 

North America

 

 

United

Kingdom

 

 

Total

 

 

Tank & Pump

Solutions

 

 

Consolidated

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental

 

$

106,668

 

 

$

18,814

 

 

$

125,482

 

 

$

26,578

 

 

$

152,060

 

Sales

 

 

4,515

 

 

 

1,364

 

 

 

5,879

 

 

 

1,270

 

 

 

7,149

 

Other

 

 

36

 

 

 

 

 

 

36

 

 

 

21

 

 

 

57

 

Total revenues

 

 

111,219

 

 

 

20,178

 

 

 

131,397

 

 

 

27,869

 

 

 

159,266

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental, selling and general expenses

 

 

58,106

 

 

 

12,482

 

 

 

70,588

 

 

 

18,597

 

 

 

89,185

 

Cost of sales

 

 

2,578

 

 

 

1,114

 

 

 

3,692

 

 

 

499

 

 

 

4,191

 

Depreciation and amortization

 

 

9,129

 

 

 

1,807

 

 

 

10,936

 

 

 

6,687

 

 

 

17,623

 

Total costs and expenses

 

 

69,813

 

 

 

15,403

 

 

 

85,216

 

 

 

25,783

 

 

 

110,999

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

$

41,406

 

 

$

4,775

 

 

$

46,181

 

 

$

2,086

 

 

$

48,267

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

52,579

 

 

$

6,588

 

 

$

59,167

 

 

$

8,915

 

 

$

68,082

 

Adjusted EBITDA Margin

 

 

47.3

%

 

 

32.6

%

 

 

45.0

%

 

 

32.0

%

 

 

42.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2018

 

 

 

Storage Solutions

 

 

 

 

 

 

 

 

 

 

 

North America

 

 

United

Kingdom

 

 

Total

 

 

Tank & Pump

Solutions

 

 

Consolidated

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental

 

$

102,486

 

 

$

19,685

 

 

$

122,171

 

 

$

29,877

 

 

$

152,048

 

Sales

 

 

4,797

 

 

 

2,450

 

 

 

7,247

 

 

 

1,407

 

 

 

8,654

 

Other

 

 

66

 

 

 

63

 

 

 

129

 

 

 

38

 

 

 

167

 

Total revenues

 

 

107,349

 

 

 

22,198

 

 

 

129,547

 

 

 

31,322

 

 

 

160,869

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental, selling and general expenses

 

 

62,582

 

 

 

12,818

 

 

 

75,400

 

 

 

19,690

 

 

 

95,090

 

Cost of sales

 

 

2,862

 

 

 

1,882

 

 

 

4,744

 

 

 

768

 

 

 

5,512

 

Depreciation and amortization

 

 

8,242

 

 

 

1,842

 

 

 

10,084

 

 

 

6,710

 

 

 

16,794

 

Total costs and expenses

 

 

73,686

 

 

 

16,542

 

 

 

90,228

 

 

 

27,168

 

 

 

117,396

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

$

33,663

 

 

$

5,656

 

 

$

39,319

 

 

$

4,154

 

 

$

43,473

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

44,720

 

 

$

7,571

 

 

$

52,291

 

 

$

10,972

 

 

$

63,263

 

Adjusted EBITDA Margin

 

 

41.7

%

 

 

34.1

%

 

 

40.4

%

 

 

35.0

%

 

 

39.3

%

   

(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.

 

Business Segment Information - Adjusted (1)

 

(Unaudited)

 

(in thousands, except percentages)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended December 31, 2019

 

 

 

Storage Solutions

 

 

 

 

 

 

 

 

 

 

 

North America

 

 

United

Kingdom

 

 

Total

 

 

Tank & Pump

Solutions

 

 

Consolidated

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental

 

$

389,674

 

 

$

75,738

 

 

$

465,412

 

 

$

116,245

 

 

$

581,657

 

Sales

 

 

18,047

 

 

 

6,819

 

 

 

24,866

 

 

 

5,528

 

 

 

30,394

 

Other

 

 

399

 

 

 

 

 

 

399

 

 

 

175

 

 

 

574

 

Total revenues

 

 

408,120

 

 

 

82,557

 

 

 

490,677

 

 

 

121,948

 

 

 

612,625

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental, selling and general expenses

 

 

232,731

 

 

 

51,663

 

 

 

284,394

 

 

 

77,929

 

 

 

362,323

 

Cost of sales

 

 

10,441

 

 

 

5,385

 

 

 

15,826

 

 

 

2,849

 

 

 

18,675

 

Depreciation and amortization

 

 

36,103

 

 

 

7,070

 

 

 

43,173

 

 

 

27,410

 

 

 

70,583

 

Total costs and expenses

 

 

279,275

 

 

 

64,118

 

 

 

343,393

 

 

 

108,188

 

 

 

451,581

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

$

128,845

 

 

$

18,439

 

 

$

147,284

 

 

$

13,760

 

 

$

161,044

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

175,295

 

 

$

25,759

 

 

 

201,054

 

 

$

41,839

 

 

$

242,893

 

Adjusted EBITDA Margin

 

 

43.0

%

 

 

31.2

%

 

 

41.0

%

 

 

34.3

%

 

 

39.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended December 31, 2018

 

 

 

Storage Solutions

 

 

 

 

 

 

 

 

 

 

 

North America

 

 

United

Kingdom

 

 

Total

 

 

Tank & Pump

Solutions

 

 

Consolidated

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental

 

$

366,713

 

 

$

80,751

 

 

$

447,464

 

 

$

110,733

 

 

$

558,197

 

Sales

 

 

20,008

 

 

 

9,024

 

 

 

29,032

 

 

 

5,322

 

 

 

34,354

 

Other

 

 

304

 

 

 

224

 

 

 

528

 

 

 

150

 

 

 

678

 

Total revenues

 

 

387,025

 

 

 

89,999

 

 

 

477,024

 

 

 

116,205

 

 

 

593,229

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental, selling and general expenses

 

 

233,764

 

 

 

53,884

 

 

 

287,648

 

 

 

76,475

 

 

 

364,123

 

Cost of sales

 

 

12,263

 

 

 

7,176

 

 

 

19,439

 

 

 

2,998

 

 

 

22,437

 

Depreciation and amortization

 

 

33,591

 

 

 

7,891

 

 

 

41,482

 

 

 

25,518

 

 

 

67,000

 

Total costs and expenses

 

 

279,618

 

 

 

68,951

 

 

 

348,569

 

 

 

104,991

 

 

 

453,560

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

$

107,407

 

 

$

21,048

 

 

$

128,455

 

 

$

11,214

 

 

$

139,669

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

150,871

 

 

$

29,218

 

 

$

180,089

 

 

$

37,154

 

 

$

217,243

 

Adjusted EBITDA Margin

 

 

39.0

%

 

 

32.5

%

 

 

37.8

%

 

 

32.0

%

 

 

36.6

%

   

(1)

 

These tables present results by major business segment adjusted to exclude certain transactions that management believes are not indicative of our business. See additional information regarding non-GAAP financial information following in this earnings release.

 

Mobile Mini, Inc.

 

Condensed Consolidated Balance Sheets

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

December 31,

 

 

 

2019

 

 

2018

 

 

 

(unaudited)

 

 

(audited)

 

ASSETS

 

Cash and cash equivalents

 

$

8,053

 

 

$

5,605

 

Receivables, net

 

 

104,390

 

 

 

130,233

 

Inventories

 

 

9,517

 

 

 

11,725

 

Rental fleet, net

 

 

966,223

 

 

 

929,090

 

Property, plant and equipment, net

 

 

157,183

 

 

 

154,254

 

Operating lease assets

 

 

93,116

 

 

 

 

Other assets

 

 

13,806

 

 

 

13,398

 

Intangibles, net

 

 

51,185

 

 

 

55,542

 

Goodwill

 

 

713,404

 

 

 

705,217

 

Total assets

 

$

2,116,877

 

 

$

2,005,064

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

Liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

31,554

 

 

$

33,177

 

Accrued liabilities

 

 

77,069

 

 

 

88,136

 

Operating lease liabilities

 

 

94,932

 

 

 

 

Lines of credit

 

 

555,400

 

 

 

593,495

 

Obligations under finance leases

 

 

74,399

 

 

 

63,359

 

Senior notes, net

 

 

247,127

 

 

 

246,489

 

Deferred income taxes

 

 

195,034

 

 

 

170,139

 

Total liabilities

 

 

1,275,515

 

 

 

1,194,795

 

 

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

 

 

Common stock

 

 

504

 

 

 

500

 

Additional paid-in capital

 

 

638,083

 

 

 

619,850

 

Retained earnings

 

 

445,285

 

 

 

410,641

 

Accumulated other comprehensive loss

 

 

(65,093

)

 

 

(72,861

)

Treasury stock

 

 

(177,417

)

 

 

(147,861

)

Total stockholders' equity

 

 

841,362

 

 

 

810,269

Total liabilities and stockholders' equity

 

$

2,116,877

 

 

$

2,005,064

 

 

Mobile Mini, Inc.

 

Condensed Consolidated Statements of Cash Flows

 

(Unaudited)

 

(in thousands)

 

 

 

Twelve Months Ended

 

 

 

December 31,

 

 

 

2019

 

 

2018

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income (loss)

 

$

83,734

 

 

$

(8,062

)

Adjustments to reconcile net income (loss) to net cash

provided by operating activities:

 

 

 

 

 

 

 

 

Deferred financing costs write-off

 

 

123

 

 

 

 

Asset impairment charge and loss on divestiture, net

 

 

 

 

 

102,140

 

Provision for doubtful accounts

 

 

5,879

 

 

 

2,412

 

Amortization of deferred financing costs

 

 

1,837

 

 

 

2,060

 

Amortization of long-term liabilities

 

 

13

 

 

 

145

 

Share-based compensation expense

 

 

15,121

 

 

 

10,867

 

Depreciation and amortization

 

 

70,583

 

 

 

67,000

 

Gain on sale of rental fleet

 

 

(5,923

)

 

 

(6,055

)

Loss on disposal of property, plant and equipment

 

 

100

 

 

 

600

 

Deferred income taxes

 

 

23,305

 

 

 

(2,523

)

Foreign currency exchange

 

 

274

 

 

 

(64

)

Changes in certain assets and liabilities, net of

effect of businesses acquired

 

 

17,672

 

 

 

(8,422

)

Net cash provided by operating activities

 

 

212,718

 

 

 

160,098

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Cash paid for business acquired, net of cash acquired

 

 

(13,048

)

 

 

 

Proceeds from sale of assets held for sale

 

 

 

 

 

10,153

 

Additions to rental fleet, excluding acquisitions

 

 

(70,851

)

 

 

(85,961

)

Proceeds from sale of rental fleet

 

 

13,726

 

 

 

14,993

 

Additions to property, plant and equipment, excluding acquisitions

 

 

(13,274

)

 

 

(16,931

)

Proceeds from sale of property, plant and equipment

 

 

740

 

 

 

683

 

Net cash used in investing activities

 

 

(82,707

)

 

 

(77,063

)

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Net repayments under lines of credit

 

 

(38,096

)

 

 

(40,790

)

Deferred financing costs

 

 

(3,521

)

 

 

 

Principal payments on finance lease obligations

 

 

(10,690

)

 

 

(9,746

)

Issuance of common stock

 

 

3,116

 

 

 

3,617

 

Dividend payments

 

 

(48,882

)

 

 

(44,530

)

Purchase of treasury stock

 

 

(29,556

)

 

 

(695

)

Net cash used in financing activities

 

 

(127,629

)

 

 

(92,144

)

 

 

 

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

 

66

 

 

 

1,263

 

 

 

 

 

 

 

 

 

 

Net change in cash and cash equivalents

 

 

2,448

 

 

 

(7,846

)

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at beginning of period

 

 

5,605

 

 

 

13,451

 

Cash and cash equivalents at end of period

 

$

8,053

 

 

$

5,605

 

 

 

 

 

 

 

 

 

 

Equipment and other acquired through finance lease obligations

 

$

21,730

 

 

$

20,314

 

Capital expenditures accrued or payable

 

 

5,591

 

 

 

10,752

 

 

Non-GAAP Financial Information

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

 

Mobile Mini, Inc.

 

Adjusted EBITDA GAAP Reconciliations

 

(Unaudited)

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

December 31,

 

 

Twelve Months Ended

December 31,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Net income (loss)

 

$

29,016

 

 

$

14,248

 

 

$

83,734

 

 

$

(8,062

)

Interest expense

 

 

9,633

 

 

 

10,725

 

 

 

41,378

 

 

 

40,904

 

Income tax provision

 

 

8,551

 

 

 

13,933

 

 

 

28,345

 

 

 

2,751

 

Depreciation and amortization

 

 

17,623

 

 

 

16,794

 

 

 

70,583

 

 

 

67,000

 

Deferred financing costs write-off

 

 

 

 

 

 

 

 

123

 

 

 

 

EBITDA

 

 

64,823

 

 

 

55,700

 

 

 

224,163

 

 

 

102,593

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation expense

 

 

2,287

 

 

 

3,001

 

 

 

11,528

 

 

 

10,504

 

Restructuring expenses

 

 

 

 

 

700

 

 

 

 

 

 

2,006

 

Asset impairment charge and

loss on divestiture, net

 

 

 

 

 

3,862

 

 

 

 

 

 

102,140

 

Chief Executive Officer transition

 

 

 

 

 

 

 

 

3,593

 

 

 

 

Acquisition-related expenses

 

 

491

 

 

 

 

 

 

3,128

 

 

 

 

Other

 

 

481

 

 

 

 

 

 

481

 

 

 

 

Adjusted EBITDA

 

$

68,082

 

 

$

63,263

 

 

$

242,893

 

 

$

217,243

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

December 31,

 

 

Twelve Months Ended

December 31,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Net cash provided by operating activities

 

$

60,819

 

 

$

43,878

 

 

$

212,718

 

 

$

160,098

 

Interest paid

 

 

5,994

 

 

 

6,226

 

 

 

40,150

 

 

 

37,979

 

Income and franchise taxes paid

 

 

1,481

 

 

 

1,666

 

 

 

6,600

 

 

 

4,012

 

Share-based compensation expense,

including restructuring expense

 

 

(2,287

)

 

 

(3,001

)

 

 

(15,121

)

 

 

(10,867

)

Asset impairment charge and

loss on divestiture, net

 

 

 

 

 

(3,862

)

 

 

 

 

 

(102,140

)

Gain on sale of rental fleet

 

 

1,313

 

 

 

1,532

 

 

 

5,923

 

 

 

6,055

 

Loss on disposal of property, plant and

equipment

 

 

(54

)

 

 

(52

)

 

 

(100

)

 

 

(600

)

Changes in certain assets and liabilities, net of

effect of businesses acquired

 

 

(2,443

)

 

 

9,313

 

 

 

(26,007

)

 

 

8,056

 

EBITDA

 

$

64,823

 

 

$

55,700

 

 

$

224,163

 

 

$

102,593

 

 

Mobile Mini, Inc.

 

Free Cash Flow GAAP Reconciliation

 

(Unaudited)

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

December 31,

 

 

Twelve Months Ended

December 31,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Net cash provided by operating activities

 

$

60,819

 

 

$

43,878

 

 

$

212,718

 

 

$

160,098

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additions to rental fleet, excluding acquisitions

 

 

(9,604

)

 

 

(20,341

)

 

 

(70,851

)

 

 

(85,961

)

Proceeds from sale of rental fleet

 

 

2,944

 

 

 

3,546

 

 

 

13,726

 

 

 

14,993

 

Additions to property, plant and equipment,

excluding acquisitions

 

 

(3,357

)

 

 

(2,296

)

 

 

(13,274

)

 

 

(16,931

)

Proceeds from sale of property, plant and

equipment

 

 

292

 

 

 

80

 

 

 

740

 

 

 

683

 

Net capital expenditures, excluding acquisitions

 

 

(9,725

)

 

 

(19,011

)

 

 

(69,659

)

 

 

(87,216

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Free cash flow

 

$

51,094

 

 

$

24,867

 

 

$

143,059

 

 

$

72,882

 

 

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.

Contacts

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

Emily Tadano, Director of Treasury & Investor Relations
(602) 845-4005
www.mobilemini.com

-OR-

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

Contacts

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

Emily Tadano, Director of Treasury & Investor Relations
(602) 845-4005
www.mobilemini.com

-OR-

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