PHOENIX–(BUSINESS WIRE)–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 September 30, 2019.
Total revenues were $153.5 million and rental revenues were $145.5 million for the third quarter of 2019, as compared to $149.7 million and $140.9 million, respectively, for the same period last year. Rental revenues for the Storage Solutions and Tank & Pump Solutions businesses for the current quarter were $116.8 million and $28.7 million, respectively, compared to $112.6 million and $28.3 million for the same period last year.
The Company realized net income of $22.6 million, or $0.51 per diluted share, in the third quarter of 2019. On an adjusted basis, third quarter net income was $24.0 million, or $0.54 per diluted share, as compared to adjusted net income of $19.1 million, or $0.42 per diluted share, for the third quarter of 2018. Adjusted EBITDA was $61.7 million and adjusted EBITDA margin was 40.2% for the third quarter of 2019.
Dividend
The Company’s Board of Directors declared a cash dividend of 27.5 cents per share, which will be paid on November 27, 2019 to shareholders of record as of November 13, 2019.
Third Quarter 2019 Highlights
- Drove healthy year-over-year growth of 6.3% in North American Storage Solutions rental revenue.
- Grew adjusted EBITDA 11.3%, year-over-year, and expanded adjusted EBITDA margin by 320 basis points to 40.2%, comprised of a 370 basis point year-over-year increase for North American Storage Solutions and a 320 basis point increase for Tank & Pump Solutions.
- Raised North American Storage Solutions core (excluding seasonal) rates 4.2% year-over-year, with rates on newly placed units up 5.4%.
- Achieved strong average OEC utilization rate of 77.5% for Storage Solutions.
- Generated robust cash from operating activities of $51.3 million for the quarter and $151.9 million year-to-date, resulting in free cash flow of $37.1 million for the quarter and $92.0 million year-to-date, an increase of $44.0 million from the prior year-to-date period.
- Further increased return on capital employed to 9.8% as of September 30, 2019, exceeding our weighted average cost of capital and a 170 basis point improvement from September 30, 2018.
- Repurchased $18.4 million of shares under our authorized share repurchase program, $28.4 million year-to-date, while maintaining a leverage ratio of 3.8x as of September 30, 2019 compared to 4.2x as of December 31, 2018.
- Completed one tuck-in acquisition in Tulsa, Oklahoma of a highly-utilized container provider.
CEO Comments
Kelly Williams, Mobile Mini’s President and Chief Executive Officer, remarked, “I am very pleased with the performance of Mobile Mini in the third quarter of 2019. Throughout the company, the processes we have implemented to drive efficiencies, combined with higher rental revenues, drove a $6.2 million, or 11.3%, increase in consolidated adjusted EBITDA, with an adjusted EBITDA margin in excess of our 40% Evergreen target, a notable achievement. The strong increase in profitability reflects top-line growth and margin expansion in both our North American segments. North American Storage Solutions rental revenues were up compared to the prior-year quarter by a healthy 6.3%, driven primarily by increased rates as well as favorable mix. Revenues in our Tank & Pump Solutions downstream business continued to grow year-over-year, despite a difficult comparison to a very strong prior-year quarter. The downstream market is now settling into more normalized activity.”
Mr. Williams continued, “Over the past several years we have transformed Mobile Mini into a significantly more efficient, scalable organization. The transformation includes substantial development of our technology capabilities and enhancements throughout our supply chain, including asset management. We are now better positioned than at any time in our Company’s history to drive profitable growth and generate shareholder value through the highly effective execution of our business strategy and the optimal deployment of capital. During the nine months ended September 30, 2019 we generated $92 million of free cash flow. This robust cash flow enables us to reinvest in the business, reduce our leverage ratio and return capital to our shareholders through dividends and opportunistic stock repurchases. In addition to organic growth in existing locations, we plan to drive multi-year growth for Mobile Mini both through acquisitions in our Storage Solutions business and greenfield expansion into attractive new geographic markets for both business segments. Importantly, we expect to continue to grow adjusted EBITDA and generate very strong free cash flow for the remainder of 2019 and into 2020.”
Conference Call
Mobile Mini will host a conference call later today, October 31st at 5 pm 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 14 days after the call at Mobile Mini’s website.
About Mobile Mini, Inc.
Mobile Mini, Inc. is the world’s leading provider of portable storage solutions through its total rental fleet of approximately 199,100 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 155 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 drive growth organically, through acquisitions and greenfield expansion as well as growing adjusted EBITDA and generate very 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 September 30, 2019 |
|
Three Months Ended September 30, 2018 |
|
||||||||||||||
|
|
Actual |
|
Adjustments |
|
Adjusted (1) |
|
Actual |
|
Adjustments |
|
Adjusted (2) |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental |
$ |
145,519 |
|
$ |
— |
|
$ |
145,519 |
|
$ |
140,924 |
|
$ |
— |
|
$ |
140,924 |
|
|
Sales |
|
7,887 |
|
|
— |
|
|
7,887 |
|
|
8,716 |
|
|
— |
|
|
8,716 |
|
|
Other |
|
111 |
|
|
— |
|
|
111 |
|
|
67 |
|
|
— |
|
|
67 |
|
|
Total revenues |
|
153,517 |
|
|
— |
|
|
153,517 |
|
|
149,707 |
|
|
— |
|
|
149,707 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental, selling and general expenses |
|
91,399 |
|
|
(1,898 |
) |
|
89,501 |
|
|
90,764 |
|
|
— |
|
|
90,764 |
|
|
Cost of sales |
|
4,838 |
|
|
— |
|
|
4,838 |
|
|
5,770 |
|
|
— |
|
|
5,770 |
|
|
Asset impairment charge and loss on divestiture, net |
|
— |
|
|
— |
|
|
— |
|
|
98,278 |
|
|
(98,278 |
) |
|
— |
|
|
Depreciation and amortization |
|
17,490 |
|
|
— |
|
|
17,490 |
|
|
16,191 |
|
|
— |
|
|
16,191 |
|
|
Total costs and expenses |
|
113,727 |
|
|
(1,898 |
) |
|
111,829 |
|
|
211,003 |
|
|
(98,278 |
) |
|
112,725 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations |
|
39,790 |
|
|
1,898 |
|
|
41,688 |
|
|
(61,296 |
) |
|
98,278 |
|
|
36,982 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
12 |
|
|
— |
|
|
12 |
|
|
— |
|
|
— |
|
|
— |
|
|
Interest expense |
|
(10,393 |
) |
|
— |
|
|
(10,393 |
) |
|
(10,487 |
) |
|
— |
|
|
(10,487 |
) |
|
Foreign currency exchange |
|
(13 |
) |
|
— |
|
|
(13 |
) |
|
24 |
|
|
— |
|
|
24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income tax provision (benefit) |
|
29,396 |
|
|
1,898 |
|
|
31,294 |
|
|
(71,759 |
) |
|
98,278 |
|
|
26,519 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax provision (benefit) |
|
6,821 |
|
|
476 |
|
|
7,297 |
|
|
(19,594 |
) |
|
27,010 |
|
|
7,416 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
22,575 |
|
$ |
1,422 |
|
$ |
23,997 |
|
$ |
(52,165 |
) |
$ |
71,268 |
|
$ |
19,103 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA/Adjusted EBITDA |
$ |
57,279 |
|
|
|
|
$ |
61,674 |
|
$ |
(45,081 |
) |
|
|
|
$ |
55,427 |
|
|
EBITDA/Adjusted EBITDA as a percentage of total revenues |
|
37.3 |
% |
|
|
|
|
40.2 |
% |
|
-30.1 |
% |
|
|
|
|
37.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.51 |
|
|
|
|
$ |
0.54 |
|
$ |
(1.18 |
) |
|
|
|
$ |
0.43 |
|
|
Diluted |
|
0.51 |
|
|
|
|
|
0.54 |
|
|
(1.18 |
) |
|
|
|
|
0.42 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common and common share equivalents outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
44,072 |
|
|
|
|
|
44,072 |
|
|
44,323 |
|
|
|
|
|
44,323 |
|
|
Diluted |
|
44,316 |
|
|
|
|
|
44,316 |
|
|
44,323 |
|
|
|
|
|
45,098 |
|
|
(1) |
Adjusted column for the three-month period ended September 30, 2019 reduces rental, selling and general expenses to exclude expenses of $1.9 million related to actual and potential acquisitions, along with the related tax effect 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. |
|
|
|
|
(2) |
Adjusted column for the three-month period ended September 30, 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 September 30, 2018 include the following, along with the related tax effects:
|
|
Mobile Mini, Inc. |
|
|||||||||||||||||||||||
|
Condensed Consolidated Statements of Operations |
|
|||||||||||||||||||||||
|
(Unaudited) |
|
|||||||||||||||||||||||
|
(in thousands, except percentages and per share data) |
|
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2019 |
|
|
Nine Months Ended September 30, 2018 |
|
||||||||||||||||||
|
|
|
Actual |
|
|
Adjustments |
|
|
Adjusted (1) |
|
|
Actual |
|
|
Adjustments |
|
|
Adjusted (2) |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental |
|
$ |
429,597 |
|
|
$ |
— |
|
|
$ |
429,597 |
|
|
$ |
406,149 |
|
|
$ |
— |
|
|
$ |
406,149 |
|
|
Sales |
|
|
23,245 |
|
|
|
— |
|
|
|
23,245 |
|
|
|
25,700 |
|
|
|
— |
|
|
|
25,700 |
|
|
Other |
|
|
517 |
|
|
|
— |
|
|
|
517 |
|
|
|
511 |
|
|
|
— |
|
|
|
511 |
|
|
Total revenues |
|
|
453,359 |
|
|
|
— |
|
|
|
453,359 |
|
|
|
432,360 |
|
|
|
— |
|
|
|
432,360 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental, selling and general expenses |
|
|
279,368 |
|
|
|
(6,230 |
) |
|
|
273,138 |
|
|
|
269,033 |
|
|
|
— |
|
|
|
269,033 |
|
|
Cost of sales |
|
|
14,484 |
|
|
|
— |
|
|
|
14,484 |
|
|
|
16,925 |
|
|
|
— |
|
|
|
16,925 |
|
|
Restructuring expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,306 |
|
|
|
(1,306 |
) |
|
|
— |
|
|
Asset impairment charge and loss on divestiture, net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
98,278 |
|
|
|
(98,278 |
) |
|
|
— |
|
|
Depreciation and amortization |
|
|
52,960 |
|
|
|
— |
|
|
|
52,960 |
|
|
|
50,206 |
|
|
|
— |
|
|
|
50,206 |
|
|
Total costs and expenses |
|
|
346,812 |
|
|
|
(6,230 |
) |
|
|
340,582 |
|
|
|
435,748 |
|
|
|
(99,584 |
) |
|
|
336,164 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations |
|
|
106,547 |
|
|
|
6,230 |
|
|
|
112,777 |
|
|
|
(3,388 |
) |
|
|
99,584 |
|
|
|
96,196 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
12 |
|
|
|
— |
|
|
|
12 |
|
|
|
6 |
|
|
|
— |
|
|
|
6 |
|
|
Interest expense |
|
|
(31,745 |
) |
|
|
— |
|
|
|
(31,745 |
) |
|
|
(30,179 |
) |
|
|
— |
|
|
|
(30,179 |
) |
|
Deferred financing costs write-off |
|
|
(123 |
) |
|
|
123 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Foreign currency exchange |
|
|
(179 |
) |
|
|
— |
|
|
|
(179 |
) |
|
|
69 |
|
|
|
— |
|
|
|
69 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income tax provision (benefit) |
|
|
74,512 |
|
|
|
6,353 |
|
|
|
80,865 |
|
|
|
(33,492 |
) |
|
|
99,584 |
|
|
|
66,092 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax provision (benefit) |
|
|
19,794 |
|
|
|
693 |
|
|
|
20,487 |
|
|
|
(11,182 |
) |
|
|
27,338 |
|
|
|
16,156 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
54,718 |
|
|
$ |
5,660 |
|
|
$ |
60,378 |
|
|
$ |
(22,310 |
) |
|
$ |
72,246 |
|
|
$ |
49,936 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA/Adjusted EBITDA |
|
$ |
159,340 |
|
|
|
|
|
|
$ |
174,811 |
|
|
$ |
46,893 |
|
|
|
|
|
|
$ |
153,980 |
|
|
EBITDA/Adjusted EBITDA as a percentage of total revenues |
|
|
35.1 |
% |
|
|
|
|
|
|
38.6 |
% |
|
|
10.8 |
% |
|
|
|
|
|
|
35.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.23 |
|
|
|
|
|
|
$ |
1.36 |
|
|
$ |
(0.50 |
) |
|
|
|
|
|
$ |
1.13 |
|
|
Diluted |
|
|
1.23 |
|
|
|
|
|
|
|
1.35 |
|
|
|
(0.50 |
) |
|
|
|
|
|
|
1.11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common and common share equivalents outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
44,337 |
|
|
|
|
|
|
|
44,337 |
|
|
|
44,275 |
|
|
|
|
|
|
|
44,275 |
|
|
Diluted |
|
|
44,646 |
|
|
|
|
|
|
|
44,646 |
|
|
|
44,275 |
|
|
|
|
|
|
|
45,011 |
|
|
(1) |
Adjusted column for the nine-month period ended September 30, 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 nine-month period ended September 30, 2019 include the following, along with the related tax effects:
|
|
|
|
|
(2) |
Adjusted column for the nine-month period ended September 30, 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 nine-month period ended September 30, 2018 include the following, along with the related tax effects:
|
|
Mobile Mini, Inc. |
|
|||||||
|
Operating Data |
|
|||||||
|
(Unaudited) |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
2019 |
|
|
2018 |
|
||
|
As of September 30: |
|
|
|
|
|
|
|
|
|
Stand-alone Storage Solutions locations |
|
|
118 |
|
|
|
119 |
|
|
Stand-alone Tank & Pump Solutions locations |
|
|
20 |
|
|
|
21 |
|
|
Combined Storage Solutions and Tank & Pump Solutions locations |
|
|
17 |
|
|
|
17 |
|
|
Storage Solutions rental fleet units |
|
|
199,100 |
|
|
|
194,300 |
|
|
Tank & Pump Solutions rental fleet units |
|
|
12,700 |
|
|
|
12,600 |
|
|
|
|
|
|
|
|
|
|
|
|
Average utilization based on original equipment cost |
|
|
|
|
|
|
|
|
|
Three months ended September 30: |
|
|
|
|
|
|
|
|
|
Storage Solutions |
|
|
77.5 |
% |
|
|
76.9 |
% |
|
Tank & Pump Solutions |
|
|
68.3 |
% |
|
|
72.2 |
% |
|
Nine months ended September 30: |
|
|
|
|
|
|
|
|
|
Storage Solutions |
|
|
77.0 |
% |
|
|
71.5 |
% |
|
Tank & Pump Solutions |
|
|
71.9 |
% |
|
|
73.3 |
% |
|
Mobile Mini, Inc. |
|
|||||||||||||||||||||||
|
Business Segment Information – Adjusted (1) |
|
|||||||||||||||||||||||
|
(Unaudited) |
|
|||||||||||||||||||||||
|
(in thousands, except percentages) |
|
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2019 |
|
|
Three Months Ended September 30, 2018 |
|
||||||||||||||||||
|
|
|
Storage |
|
|
Tank & Pump |
|
|
Total |
|
|
Storage |
|
|
Tank & Pump |
|
|
Total |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental |
|
$ |
116,820 |
|
|
$ |
28,699 |
|
|
$ |
145,519 |
|
|
$ |
112,639 |
|
|
$ |
28,285 |
|
|
$ |
140,924 |
|
|
Sales |
|
|
6,439 |
|
|
|
1,448 |
|
|
|
7,887 |
|
|
|
7,696 |
|
|
|
1,020 |
|
|
|
8,716 |
|
|
Other |
|
|
75 |
|
|
|
36 |
|
|
|
111 |
|
|
|
40 |
|
|
|
27 |
|
|
|
67 |
|
|
Total revenues |
|
|
123,334 |
|
|
|
30,183 |
|
|
|
153,517 |
|
|
|
120,375 |
|
|
|
29,332 |
|
|
|
149,707 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental, selling and general expenses |
|
|
70,455 |
|
|
|
19,046 |
|
|
|
89,501 |
|
|
|
71,121 |
|
|
|
19,643 |
|
|
|
90,764 |
|
|
Cost of sales |
|
|
4,048 |
|
|
|
790 |
|
|
|
4,838 |
|
|
|
5,226 |
|
|
|
544 |
|
|
|
5,770 |
|
|
Depreciation and amortization |
|
|
10,576 |
|
|
|
6,914 |
|
|
|
17,490 |
|
|
|
9,758 |
|
|
|
6,433 |
|
|
|
16,191 |
|
|
Total costs and expenses |
|
|
85,079 |
|
|
|
26,750 |
|
|
|
111,829 |
|
|
|
86,105 |
|
|
|
26,620 |
|
|
|
112,725 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
|
$ |
38,255 |
|
|
$ |
3,433 |
|
|
$ |
41,688 |
|
|
$ |
34,270 |
|
|
$ |
2,712 |
|
|
$ |
36,982 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ |
51,190 |
|
|
$ |
10,484 |
|
|
$ |
61,674 |
|
|
$ |
46,174 |
|
|
$ |
9,253 |
|
|
$ |
55,427 |
|
|
Adjusted EBITDA Margin |
|
|
41.5 |
% |
|
|
34.7 |
% |
|
|
40.2 |
% |
|
|
38.4 |
% |
|
|
31.5 |
% |
|
|
37.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2019 |
|
|
Nine Months Ended September 30, 2018 |
|
||||||||||||||||||
|
|
|
Storage |
|
|
Tank & Pump |
|
|
Total |
|
|
Storage |
|
|
Tank & Pump |
|
|
Total |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental |
|
$ |
339,930 |
|
|
$ |
89,667 |
|
|
$ |
429,597 |
|
|
$ |
325,293 |
|
|
$ |
80,856 |
|
|
$ |
406,149 |
|
|
Sales |
|
|
18,987 |
|
|
|
4,258 |
|
|
|
23,245 |
|
|
|
21,785 |
|
|
|
3,915 |
|
|
|
25,700 |
|
|
Other |
|
|
363 |
|
|
|
154 |
|
|
|
517 |
|
|
|
399 |
|
|
|
112 |
|
|
|
511 |
|
|
Total revenues |
|
|
359,280 |
|
|
|
94,079 |
|
|
|
453,359 |
|
|
|
347,477 |
|
|
|
84,883 |
|
|
|
432,360 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental, selling and general expenses |
|
|
213,806 |
|
|
|
59,332 |
|
|
|
273,138 |
|
|
|
212,248 |
|
|
|
56,785 |
|
|
|
269,033 |
|
|
Cost of sales |
|
|
12,134 |
|
|
|
2,350 |
|
|
|
14,484 |
|
|
|
14,695 |
|
|
|
2,230 |
|
|
|
16,925 |
|
|
Depreciation and amortization |
|
|
32,237 |
|
|
|
20,723 |
|
|
|
52,960 |
|
|
|
31,398 |
|
|
|
18,808 |
|
|
|
50,206 |
|
|
Total costs and expenses |
|
|
258,177 |
|
|
|
82,405 |
|
|
|
340,582 |
|
|
|
258,341 |
|
|
|
77,823 |
|
|
|
336,164 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
|
$ |
101,103 |
|
|
$ |
11,674 |
|
|
$ |
112,777 |
|
|
$ |
89,136 |
|
|
$ |
7,060 |
|
|
$ |
96,196 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ |
141,887 |
|
|
$ |
32,924 |
|
|
$ |
174,811 |
|
|
$ |
127,798 |
|
|
$ |
26,182 |
|
|
$ |
153,980 |
|
|
Adjusted EBITDA Margin |
|
|
39.5 |
% |
|
|
35.0 |
% |
|
|
38.6 |
% |
|
|
36.8 |
% |
|
|
30.8 |
% |
|
|
35.6 |
% |
| (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) |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
|
December 31, |
|
||
|
|
|
|
|
|
||||
|
|
|
(unaudited) |
|
|
(audited) |
|
||
|
ASSETS |
|
|||||||
|
Cash and cash equivalents |
|
$ |
7,295 |
|
|
$ |
5,605 |
|
|
Receivables, net |
|
|
106,847 |
|
|
|
130,233 |
|
|
Inventories |
|
|
9,835 |
|
|
|
11,725 |
|
|
Rental fleet, net |
|
|
953,331 |
|
|
|
929,090 |
|
|
Property, plant and equipment, net |
|
|
150,479 |
|
|
|
154,254 |
|
|
Operating lease assets |
|
|
95,489 |
|
|
|
— |
|
|
Other assets |
|
|
12,809 |
|
|
|
13,398 |
|
|
Intangibles, net |
|
|
51,333 |
|
|
|
55,542 |
|
|
Goodwill |
|
|
705,769 |
|
|
|
705,217 |
|
|
Total assets |
|
$ |
2,093,187 |
|
|
$ |
2,005,064 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|||||||
|
Liabilities: |
|
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
30,167 |
|
|
$ |
33,177 |
|
|
Accrued liabilities |
|
|
74,331 |
|
|
|
88,136 |
|
|
Operating lease liabilities |
|
|
97,283 |
|
|
|
— |
|
|
Lines of credit |
|
|
584,000 |
|
|
|
593,495 |
|
|
Obligations under finance leases |
|
|
67,648 |
|
|
|
63,359 |
|
|
Senior notes, net |
|
|
246,967 |
|
|
|
246,489 |
|
|
Deferred income taxes |
|
|
186,116 |
|
|
|
170,139 |
|
|
Total liabilities |
|
|
1,286,512 |
|
|
|
1,194,795 |
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
|
Common stock |
|
|
503 |
|
|
|
500 |
|
|
Additional paid-in capital |
|
|
634,994 |
|
|
|
619,850 |
|
|
Retained earnings |
|
|
428,398 |
|
|
|
410,641 |
|
|
Accumulated other comprehensive loss |
|
|
(79,814 |
) |
|
|
(72,861 |
) |
|
Treasury stock |
|
|
(177,406 |
) |
|
|
(147,861 |
) |
|
Total stockholders’ equity |
|
|
806,675 |
|
|
|
810,269 |
|
|
Total liabilities and stockholders’ equity |
$ |
2,093,187 |
$ |
2,005,064 |
|
|||
|
Mobile Mini, Inc. |
|
|||||||
|
Condensed Consolidated Statements of Cash Flows |
|
|||||||
|
(Unaudited) |
|
|||||||
|
(in thousands) |
|
|||||||
|
|
|
Nine Months Ended |
|
|||||
|
|
|
|
||||||
|
|
|
2019 |
|
|
2018 |
|
||
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
54,718 |
|
|
$ |
(22,310 |
) |
|
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 |
|
|
— |
|
|
|
98,278 |
|
|
Provision for doubtful accounts |
|
|
4,235 |
|
|
|
1,980 |
|
|
Amortization of deferred financing costs |
|
|
1,383 |
|
|
|
1,545 |
|
|
Amortization of long-term liabilities |
|
|
13 |
|
|
|
109 |
|
|
Share-based compensation expense |
|
|
12,834 |
|
|
|
7,866 |
|
|
Depreciation and amortization |
|
|
52,960 |
|
|
|
50,206 |
|
|
Gain on sale of rental fleet |
|
|
(4,610 |
) |
|
|
(4,523 |
) |
|
Loss on disposal of property, plant and equipment |
|
|
46 |
|
|
|
548 |
|
|
Deferred income taxes |
|
|
15,855 |
|
|
|
(12,891 |
) |
|
Foreign currency exchange |
|
|
179 |
|
|
|
(69 |
) |
|
Changes in certain assets and liabilities, net of effect of businesses acquired |
|
|
14,163 |
|
|
|
(4,519 |
) |
|
Net cash provided by operating activities |
|
|
151,899 |
|
|
|
116,220 |
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
Cash paid for business acquired, net of cash acquired |
|
|
(4,878 |
) |
|
|
— |
|
|
Proceeds from sale of assets held for sale |
|
|
— |
|
|
|
3,508 |
|
|
Additions to rental fleet, excluding acquisitions |
|
|
(61,247 |
) |
|
|
(65,620 |
) |
|
Proceeds from sale of rental fleet |
|
|
10,782 |
|
|
|
11,447 |
|
|
Additions to property, plant and equipment, excluding acquisitions |
|
|
(9,917 |
) |
|
|
(14,635 |
) |
|
Proceeds from sale of property, plant and equipment |
|
|
448 |
|
|
|
603 |
|
|
Net cash used in investing activities |
|
|
(64,812 |
) |
|
|
(64,697 |
) |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
Net repayments under lines of credit |
|
|
(9,494 |
) |
|
|
(24,062 |
) |
|
Deferred financing costs |
|
|
(3,491 |
) |
|
|
— |
|
|
Principal payments on finance lease obligations |
|
|
(8,167 |
) |
|
|
(6,683 |
) |
|
Issuance of common stock |
|
|
2,314 |
|
|
|
3,617 |
|
|
Dividend payments |
|
|
(36,864 |
) |
|
|
(33,312 |
) |
|
Purchase of treasury stock |
|
|
(29,545 |
) |
|
|
(668 |
) |
|
Net cash used in financing activities |
|
|
(85,247 |
) |
|
|
(61,108 |
) |
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash |
|
|
(150 |
) |
|
|
1,069 |
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash |
|
|
1,690 |
|
|
|
(8,516 |
) |
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of period |
|
|
5,605 |
|
|
|
13,451 |
|
|
Cash and cash equivalents at end of period |
|
$ |
7,295 |
|
|
$ |
4,935 |
|
|
|
|
|
|
|
|
|
|
|
|
Equipment and other acquired through finance lease obligations |
|
$ |
12,455 |
|
|
$ |
15,746 |
|
|
Capital expenditures accrued or payable |
|
|
5,110 |
|
|
|
9,774 |
|
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.
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
