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 June 30, 2019.
Total revenues were $150.2 million and rental revenues were $141.9 million, as compared to $142.0 million and $132.9 million, respectively, for the same period last year. Rental revenues for the Storage Solutions and Tank & Pump Solutions businesses for the current quarter were $110.4 million and $31.5 million, respectively, compared to $105.8 million and $27.1 million, respectively, for the same period last year.
The Company realized net income of $14.1 million, or $0.31 per diluted share, in the second quarter of 2019. On an adjusted basis, second quarter net income was $18.2 million, or $0.41 per diluted share, as compared to adjusted net income of $15.9 million, or $0.35 per diluted share, for the second quarter of 2018. Adjusted EBITDA was $56.9 million and adjusted EBITDA margin was 37.9% for the second 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 August 28, 2019 to shareholders of record as of August 14, 2019.
Second Quarter 2019 Highlights
- Continued strong rental revenue growth in Tank & Pump Solutions (“T&P”) with a 16.3% year-over-year increase.
- Drove healthy North American Storage Solutions (“SS”) rental revenue year-over-year growth of 7.1%.
- Delivered year-over-year rate growth of 3.4% in SS and a mid-single digit increase for T&P.
- Achieved strong average OEC utilization rates of 76.4% for SS and 73.5% for T&P.
- Grew adjusted EBITDA 13.8%, year-over-year, and expanded adjusted EBITDA margin by 270 basis points to 37.9%.
- Generated robust free cash flow of $38.7 million, an increase of $27.0 million year-over-year.
- Increased return on capital employed to 9.5% as of June 30, 2019, which exceeds weighted average cost of capital and is a 190 basis point improvement from June 30, 2018.
- Decreased leverage ratio to 3.8x as of June 30, 2019 from 4.2x as of December 31, 2018.
CEO Comments
Erik Olsson, Mobile Mini’s Chief Executive Officer, remarked, “The strong performance in the second quarter reflects the continued momentum we have created over the last several quarters by executing on our strategy from the solid platform we have built. In addition to very strong margin expansion we saw robust growth in revenues, adjusted EBITDA, and importantly, free cash flow. Especially notable is the continued strong rental revenue growth in our Tank & Pump segment, driven by both volume and rate, and as we continue to demonstrate our value proposition, we believe we will continue to grow this business with existing and new large customers. Our Storage Solutions business remains strong, driven by rate increases and healthy levels of demand in North America, where solid pending orders indicate healthy growth in the back half of the year. The cycle is still in our favor and our outlook remains very positive for the remainder of 2019.”
Mr. Olsson continued, “I am pleased to be transitioning into my role as Chairman of the Board following a record year in 2018 and another strong year well underway. Mobile Mini is a very different company than when I first joined. Today our strategy is to profitably grow our business by offering customers high quality products and services in two segments: containers and tanks. Because of our unmatched quality and service in these areas, we are able to command premium pricing, which improves both revenues and margins. We invest in long-lived steel-centric products with minimal maintenance requirements and short pay-back periods and drive sustainable growth by partnering with large customers across many industries that recognize the value of our unique scale and technology solutions. Combining this strategy with a culture of continuous improvement to drive operational efficiencies, we deliver shareholder value through strong cash flows and great returns. Our fundamentals today are very strong and I would like to personally thank the employees of Mobile Mini for their consistent dedication and hard work during this time.”
Conference Call
Mobile Mini will host a conference call later today, July 25th 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 Investors section. Additionally, a slide presentation that will accompany the call will be posted at www.mobilemini.com on the Investor Relations section and will be available in advance and after the call. Please go to the website 15 minutes early to download and install any necessary audio software. If you are unable to listen live, a replay of the call can be accessed for approximately 14 days after the call at Mobile Mini’s website.
About Mobile Mini, Inc.
Mobile Mini, Inc. is the world’s leading provider of portable storage solutions through its total rental fleet of approximately 198,000 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 achieve healthy growth in the second half of the year, 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 Income | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
(in thousands, except percentages and per share data) | ||||||||||||||||||||||||
Three Months Ended June 30, 2019 | Three Months Ended June 30, 2018 | |||||||||||||||||||||||
Actual | Adjustments | Adjusted (1) | Actual | Adjustments | Adjusted (2) | |||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Rental | $ | 141,906 | $ | — | $ | 141,906 | $ | 132,887 | $ | — | $ | 132,887 | ||||||||||||
Sales | 8,135 | — | 8,135 | 8,881 | — | 8,881 | ||||||||||||||||||
Other | 140 | — | 140 | 231 | — | 231 | ||||||||||||||||||
Total revenues | 150,181 | — | 150,181 | 141,999 | — | 141,999 | ||||||||||||||||||
Costs and expenses: | ||||||||||||||||||||||||
Rental, selling and general expenses | 95,735 | (4,332 | ) | 91,403 | 89,271 | — | 89,271 | |||||||||||||||||
Cost of sales | 5,044 | — | 5,044 | 5,764 | — | 5,764 | ||||||||||||||||||
Restructuring expenses | — | — | — | 1,195 | (1,195 | ) | — | |||||||||||||||||
Depreciation and amortization | 18,135 | — | 18,135 | 17,192 | — | 17,192 | ||||||||||||||||||
Total costs and expenses | 118,914 | (4,332 | ) | 114,582 | 113,422 | (1,195 | ) | 112,227 | ||||||||||||||||
Income from operations | 31,267 | 4,332 | 35,599 | 28,577 | 1,195 | 29,772 | ||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||
Interest expense | (10,592 | ) | — | (10,592 | ) | (10,093 | ) | — | (10,093 | ) | ||||||||||||||
Foreign currency exchange | (167 | ) | — | (167 | ) | (21 | ) | — | (21 | ) | ||||||||||||||
Income before income tax provision | 20,508 | 4,332 | 24,840 | 18,463 | 1,195 | 19,658 | ||||||||||||||||||
Income tax provision | 6,450 | 185 | 6,635 | 3,463 | 300 | 3,763 | ||||||||||||||||||
Net income | $ | 14,058 | $ | 4,147 | $ | 18,205 | $ | 15,000 | $ | 895 | $ | 15,895 | ||||||||||||
EBITDA/Adjusted EBITDA | $ | 49,235 | $ | 56,907 | $ | 45,748 | $ | 49,987 | ||||||||||||||||
EBITDA/Adjusted EBITDA as a percentage of total revenues | 32.8 | % | 37.9 | % | 32.2 | % | 35.2 | % | ||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||
Basic | $ | 0.32 | $ | 0.41 | $ | 0.34 | $ | 0.36 | ||||||||||||||||
Diluted | 0.31 | 0.41 | 0.33 | 0.35 | ||||||||||||||||||||
Weighted average number of common and common share equivalents outstanding: | ||||||||||||||||||||||||
Basic | 44,496 | 44,496 | 44,287 | 44,287 | ||||||||||||||||||||
Diluted | 44,750 | 44,750 | 45,091 | 45,091 | ||||||||||||||||||||
(1) | Adjusted column for the three months ended June 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 three-month period ended June 30, 2019 include the following: |
| |
(2) | Adjusted column for the three months ended June 30, 2018 excludes costs of $1.2 million related to restructuring that management believes are not indicative of our business, along with the related tax effects. 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. |
Mobile Mini, Inc. | ||||||||||||||||||||||||
Condensed Consolidated Statements of Income | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
(in thousands, except percentages and per share data) | ||||||||||||||||||||||||
Six Months Ended June 30, 2019 | Six Months Ended June 30, 2018 | |||||||||||||||||||||||
Actual | Adjustments | Adjusted (1) | Actual | Adjustments | Adjusted (2) | |||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Rental | $ | 284,078 | $ | — | $ | 284,078 | $ | 265,225 | $ | — | $ | 265,225 | ||||||||||||
Sales | 15,358 | — | 15,358 | 16,984 | — | 16,984 | ||||||||||||||||||
Other | 406 | — | 406 | 444 | — | 444 | ||||||||||||||||||
Total revenues | 299,842 | — | 299,842 | 282,653 | — | 282,653 | ||||||||||||||||||
Costs and expenses: | ||||||||||||||||||||||||
Rental, selling and general expenses | 187,969 | (4,332 | ) | 183,637 | 178,269 | — | 178,269 | |||||||||||||||||
Cost of sales | 9,646 | — | 9,646 | 11,155 | — | 11,155 | ||||||||||||||||||
Restructuring expenses | — | — | — | 1,306 | (1,306 | ) | — | |||||||||||||||||
Depreciation and amortization | 35,470 | — | 35,470 | 34,015 | — | 34,015 | ||||||||||||||||||
Total costs and expenses | 233,085 | (4,332 | ) | 228,753 | 224,745 | (1,306 | ) | 223,439 | ||||||||||||||||
Income from operations | 66,757 | 4,332 | 71,089 | 57,908 | 1,306 | 59,214 | ||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||
Interest income | — | — | — | 6 | — | 6 | ||||||||||||||||||
Interest expense | (21,352 | ) | — | (21,352 | ) | (19,692 | ) | — | (19,692 | ) | ||||||||||||||
Deferred financing costs write-off | (123 | ) | 123 | — | — | — | — | |||||||||||||||||
Foreign currency exchange | (166 | ) | — | (166 | ) | 45 | — | 45 | ||||||||||||||||
Income before income tax provision | 45,116 | 4,455 | 49,571 | 38,267 | 1,306 | 39,573 | ||||||||||||||||||
Income tax provision | 12,973 | 217 | 13,190 | 8,412 | 328 | 8,740 | ||||||||||||||||||
Net income | $ | 32,143 | $ | 4,238 | $ | 36,381 | $ | 29,855 | $ | 978 | $ | 30,833 | ||||||||||||
EBITDA/Adjusted EBITDA | $ | 102,061 | $ | 113,137 | $ | 91,974 | $ | 98,553 | ||||||||||||||||
EBITDA/Adjusted EBITDA as a percentage of total revenues | 34.0 | % | 37.7 | % | 32.5 | % | 34.9 | % | ||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||
Basic | $ | 0.72 | $ | 0.82 | $ | 0.67 | $ | 0.70 | ||||||||||||||||
Diluted | 0.72 | 0.81 | 0.66 | 0.69 | ||||||||||||||||||||
Weighted average number of common and common share equivalents outstanding: | ||||||||||||||||||||||||
Basic | 44,472 | 44,472 | 44,251 | 44,251 | ||||||||||||||||||||
Diluted | 44,814 | 44,814 | 44,967 | 44,967 | ||||||||||||||||||||
(1) | Adjusted column for the six months ended June 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 six-month period ended June 30, 2019 include the following:
|
(2) | Adjusted column for the six months ended June 30, 2018 excludes costs of $1.3 million related to restructuring that management believes are not indicative of our business, along with the related tax effects. 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. |
Mobile Mini, Inc. | ||||||||
Operating Data | ||||||||
(Unaudited) | ||||||||
2019 | 2018 | |||||||
As of June 30: | ||||||||
Stand-alone Storage Solutions locations | 118 | 118 | ||||||
Stand-alone Tank & Pump Solutions locations | 20 | 19 | ||||||
Combined Storage Solutions and Tank & Pump Solutions locations | 17 | 18 | ||||||
Storage Solutions rental fleet units | 198,000 | 216,200 | ||||||
Tank & Pump Solutions rental fleet units | 12,700 | 12,600 | ||||||
Average utilization based on original equipment cost | ||||||||
Three months ended June 30: | ||||||||
Storage Solutions | 76.4 | % | 69.3 | % | ||||
Tank & Pump Solutions | 73.5 | % | 74.2 | % | ||||
Average utilization based on original equipment cost | ||||||||
Six months ended June 30: | ||||||||
Storage Solutions | 76.7 | % | 68.9 | % | ||||
Tank & Pump Solutions | 73.8 | % | 73.9 | % | ||||
Mobile Mini, Inc. | ||||||||||||||||||||||||
Business Segment Information - Adjusted (1) | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
Three Months Ended June 30, 2019 | Three Months Ended June 30, 2018 | |||||||||||||||||||||||
Storage Solutions | Tank & Pump Solutions | Total | Storage Solutions | Tank & Pump Solutions | Total | |||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Rental | $ | 110,385 | $ | 31,521 | $ | 141,906 | $ | 105,790 | $ | 27,097 | $ | 132,887 | ||||||||||||
Sales | 6,771 | 1,364 | 8,135 | 7,350 | 1,531 | 8,881 | ||||||||||||||||||
Other | 63 | 77 | 140 | 190 | 41 | 231 | ||||||||||||||||||
Total revenues | 117,219 | 32,962 | 150,181 | 113,330 | 28,669 | 141,999 | ||||||||||||||||||
Costs and expenses: | ||||||||||||||||||||||||
Rental, selling and general expenses | 70,725 | 20,678 | 91,403 | 70,303 | 18,968 | 89,271 | ||||||||||||||||||
Cost of sales | 4,270 | 774 | 5,044 | 4,900 | 864 | 5,764 | ||||||||||||||||||
Depreciation and amortization | 10,938 | 7,197 | 18,135 | 10,908 | 6,284 | 17,192 | ||||||||||||||||||
Total costs and expenses | 85,933 | 28,649 | 114,582 | 86,111 | 26,116 | 112,227 | ||||||||||||||||||
Income from operations | $ | 31,286 | $ | 4,313 | $ | 35,599 | $ | 27,219 | $ | 2,553 | $ | 29,772 | ||||||||||||
Adjusted EBITDA | $ | 45,269 | $ | 11,638 | $ | 56,907 | $ | 41,043 | $ | 8,944 | $ | 49,987 | ||||||||||||
Adjusted EBITDA Margin | 38.6 | % | 35.3 | % | 37.9 | % | 36.2 | % | 31.2 | % | 35.2 | % | ||||||||||||
Six Months Ended June 30, 2019 | Six Months Ended June 30, 2018 | |||||||||||||||||||||||
Storage Solutions | Tank & Pump Solutions | Total | Storage Solutions | Tank & Pump Solutions | Total | |||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Rental | $ | 223,110 | $ | 60,968 | $ | 284,078 | $ | 212,654 | $ | 52,571 | $ | 265,225 | ||||||||||||
Sales | 12,548 | 2,810 | 15,358 | 14,089 | 2,895 | 16,984 | ||||||||||||||||||
Other | 288 | 118 | 406 | 359 | 85 | 444 | ||||||||||||||||||
Total revenues | 235,946 | 63,896 | 299,842 | 227,102 | 55,551 | 282,653 | ||||||||||||||||||
Costs and expenses: | ||||||||||||||||||||||||
Rental, selling and general expenses | 143,351 | 40,286 | 183,637 | 141,127 | 37,142 | 178,269 | ||||||||||||||||||
Cost of sales | 8,086 | 1,560 | 9,646 | 9,469 | 1,686 | 11,155 | ||||||||||||||||||
Depreciation and amortization | 21,661 | 13,809 | 35,470 | 21,640 | 12,375 | 34,015 | ||||||||||||||||||
Total costs and expenses | 173,098 | 55,655 | 228,753 | 172,236 | 51,203 | 223,439 | ||||||||||||||||||
Income from operations | $ | 62,848 | $ | 8,241 | $ | 71,089 | $ | 54,866 | $ | 4,348 | $ | 59,214 | ||||||||||||
Adjusted EBITDA | $ | 90,697 | $ | 22,440 | $ | 113,137 | $ | 81,624 | $ | 16,929 | $ | 98,553 | ||||||||||||
Adjusted EBITDA Margin | 38.4 | % | 35.1 | % | 37.7 | % | 35.9 | % | 30.5 | % | 34.9 | % | ||||||||||||
| (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) | ||||||||
June 30, | December 31, | |||||||
2019 | 2018 | |||||||
(unaudited) | (audited) | |||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 4,687 | $ | 5,605 | ||||
Receivables, net | 106,694 | 130,233 | ||||||
Inventories | 10,385 | 11,725 | ||||||
Rental fleet, net | 951,696 | 929,090 | ||||||
Property, plant and equipment, net | 150,025 | 154,254 | ||||||
Operating lease assets | 96,883 | — | ||||||
Other assets | 14,947 | 13,398 | ||||||
Intangibles, net | 52,321 | 55,542 | ||||||
Goodwill | 705,260 | 705,217 | ||||||
Total assets | $ | 2,092,898 | $ | 2,005,064 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Liabilities: | ||||||||
Accounts payable | $ | 32,190 | $ | 33,177 | ||||
Accrued liabilities | 71,621 | 88,136 | ||||||
Operating lease liabilities | 98,687 | — | ||||||
Lines of credit | 580,100 | 593,495 | ||||||
Obligations under finance leases | 64,536 | 63,359 | ||||||
Senior notes, net | 246,808 | 246,489 | ||||||
Deferred income taxes | 180,308 | 170,139 | ||||||
Total liabilities | 1,274,250 | 1,194,795 | ||||||
Stockholders' equity: | ||||||||
Common stock | 503 | 500 | ||||||
Additional paid-in capital | 631,988 | 619,850 | ||||||
Retained earnings | 418,073 | 410,641 | ||||||
Accumulated other comprehensive loss | (72,992 | ) | (72,861 | ) | ||||
Treasury stock | (158,924 | ) | (147,861 | ) | ||||
Total stockholders' equity | 818,648 | 810,269 | ||||||
Total liabilities and stockholders' equity | $ | 2,092,898 | $ | 2,005,064 | ||||
Mobile Mini, Inc. | ||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||
(Unaudited) | ||||||||
(in thousands) | ||||||||
Six Months Ended | ||||||||
June 30, | ||||||||
2019 | 2018 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 32,143 | $ | 29,855 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Deferred financing costs write-off | 123 | — | ||||||
Provision for doubtful accounts | 2,303 | 1,966 | ||||||
Amortization of deferred financing costs | 940 | 1,030 | ||||||
Amortization of long-term liabilities | 13 | 72 | ||||||
Share-based compensation expense | 10,337 | 5,636 | ||||||
Depreciation and amortization | 35,470 | 34,015 | ||||||
Gain on sale of rental fleet | (3,041 | ) | (3,260 | ) | ||||
Loss on disposal of property, plant and equipment | 102 | 477 | ||||||
Deferred income taxes | 10,086 | 7,253 | ||||||
Foreign currency exchange | 166 | (45 | ) | |||||
Changes in certain assets and liabilities, net of effect of businesses acquired | 11,910 | (7,047 | ) | |||||
Net cash provided by operating activities | 100,552 | 69,952 | ||||||
Cash flows from investing activities: | ||||||||
Additions to rental fleet, excluding acquisitions | (46,397 | ) | (38,476 | ) | ||||
Proceeds from sale of rental fleet | 7,054 | 7,677 | ||||||
Additions to property, plant and equipment, excluding acquisitions | (6,435 | ) | (9,081 | ) | ||||
Proceeds from sale of property, plant and equipment | 133 | 467 | ||||||
Net cash used in investing activities | (45,645 | ) | (39,413 | ) | ||||
Cash flows from financing activities: | ||||||||
Net repayments under lines of credit | (13,395 | ) | (16,630 | ) | ||||
Deferred financing costs | (3,332 | ) | — | |||||
Principal payments on finance lease obligations | (5,141 | ) | (4,103 | ) | ||||
Issuance of common stock | 1,804 | 2,494 | ||||||
Dividend payments | (24,689 | ) | (22,120 | ) | ||||
Purchase of treasury stock | (11,063 | ) | (540 | ) | ||||
Net cash used in financing activities | (55,816 | ) | (40,899 | ) | ||||
Effect of exchange rate changes on cash | (9 | ) | 941 | |||||
Net change in cash | (918 | ) | (9,419 | ) | ||||
Cash and cash equivalents at beginning of period | 5,605 | 13,451 | ||||||
Cash and cash equivalents at end of period | $ | 4,687 | $ | 4,032 | ||||
Equipment and other acquired through finance lease obligations | $ | 6,319 | $ | 6,450 | ||||
Capital expenditures accrued or payable | 6,528 | 7,190 | ||||||
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 and constant currency financial information are non-GAAP financial measures as defined by SEC rules. This non-GAAP financial information may be determined or calculated differently by other companies. Reconciliations of these non-GAAP measurements to the most directly comparable GAAP financial measurements are furnished earlier in this release and as follows:
Mobile Mini, Inc. | ||||||||||||||||
Adjusted EBITDA GAAP Reconciliations | ||||||||||||||||
(Unaudited) | ||||||||||||||||
(in thousands) | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net income | $ | 14,058 | $ | 15,000 | $ | 32,143 | $ | 29,855 | ||||||||
Interest expense | 10,592 | 10,093 | 21,352 | 19,692 | ||||||||||||
Income tax provision | 6,450 | 3,463 | 12,973 | 8,412 | ||||||||||||
Depreciation and amortization | 18,135 | 17,192 | 35,470 | 34,015 | ||||||||||||
Deferred financing costs write-off | — | — | 123 | — | ||||||||||||
EBITDA | 49,235 | 45,748 | 102,061 | 91,974 | ||||||||||||
Share-based compensation expense | 3,340 | 3,044 | 6,744 | 5,273 | ||||||||||||
Restructuring expenses | — | 1,195 | — | 1,306 | ||||||||||||
Chief Executive Officer transition | 3,593 | — | 3,593 | — | ||||||||||||
Acquisition-related expenses | 739 | — | 739 | — | ||||||||||||
Adjusted EBITDA | $ | 56,907 | $ | 49,987 | $ | 113,137 | $ | 98,553 | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net cash provided by operating activities | $ | 61,769 | $ | 35,021 | $ | 100,552 | $ | 69,952 | ||||||||
Interest paid | 5,919 | 5,829 | 20,195 | 18,177 | ||||||||||||
Income and franchise taxes paid | 1,742 | 1,287 | 3,762 | 1,407 | ||||||||||||
Share-based compensation expense, including restructuring expense | (6,933 | ) | (3,407 | ) | (10,337 | ) | (5,636 | ) | ||||||||
Gain on sale of rental fleet | 1,616 | 1,727 | 3,041 | 3,260 | ||||||||||||
Loss on disposal of property, plant and equipment | (84 | ) | (143 | ) | (102 | ) | (477 | ) | ||||||||
Changes in certain assets and liabilities, net of effect of businesses acquired | (14,794 | ) | 5,434 | (15,050 | ) | 5,291 | ||||||||||
EBITDA | $ | 49,235 | $ | 45,748 | $ | 102,061 | $ | 91,974 | ||||||||
Mobile Mini, Inc. | ||||||||||||||||
Free Cash Flow GAAP Reconciliation | ||||||||||||||||
(Unaudited) | ||||||||||||||||
(in thousands) | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net cash provided by operating activities | $ | 61,769 | $ | 35,021 | $ | 100,552 | $ | 69,952 | ||||||||
Additions to rental fleet, excluding acquisitions | (23,381 | ) | (23,087 | ) | (46,397 | ) | (38,476 | ) | ||||||||
Proceeds from sale of rental fleet | 3,716 | 3,833 | 7,054 | 7,677 | ||||||||||||
Additions to property, plant and equipment, excluding acquisitions | (3,516 | ) | (4,329 | ) | (6,435 | ) | (9,081 | ) | ||||||||
Proceeds from sale of property, plant and equipment | 84 | 288 | 133 | 467 | ||||||||||||
Net capital expenditures, excluding acquisitions | (23,097 | ) | (23,295 | ) | (45,645 | ) | (39,413 | ) | ||||||||
Free cash flow | $ | 38,672 | $ | 11,726 | $ | 54,907 | $ | 30,539 | ||||||||
Adjusted net income and adjusted diluted earnings per share. Adjusted net income and related earnings per share information exclude certain transactions that management believes are not indicative of our business. We believe that the inclusion of this non-GAAP presentation makes it easier to compare our financial performance across reporting periods on a consistent basis.
EBITDA and adjusted EBITDA. EBITDA is defined as net income before discontinued operations, net of tax (if applicable), interest expense, income taxes, depreciation and amortization, and debt restructuring or extinguishment expense (if applicable), including any write-off of deferred financing costs. Adjusted EBITDA further excludes certain non-cash expenses, including share-based compensation, as well as transactions that management believes are not indicative of our business. Because EBITDA and adjusted EBITDA, as defined, exclude some but not all items that affect our cash flow from operating activities, they may not be comparable to similarly titled performance measures presented by other companies.
We present EBITDA and adjusted EBITDA because we believe they provide useful information regarding our ability to meet our future debt payment requirements, capital expenditures and working capital requirements and an overall evaluation of our financial condition. EBITDA and adjusted EBITDA have certain limitations as analytical tools and should not be used as substitutes for net income, cash flows from operations, or other consolidated income or cash flow data prepared in accordance with GAAP.
EBITDA and adjusted EBITDA margins are calculated as EBITDA and adjusted EBITDA, respectively, divided by total revenues expressed as a percentage.
Free Cash Flow. Free cash flow is defined as net cash provided by operating activities, minus or plus, net cash used in or provided by investing activities, excluding acquisitions and certain transactions. Free cash flow is a non-GAAP financial measure and is not intended to replace net cash provided by operating activities, the most directly comparable financial measure prepared in accordance with GAAP. We present free cash flow because we believe it provides useful information regarding our liquidity and ability to meet our short-term obligations. In particular, free cash flow indicates the amount of cash available after capital expenditures for, among other things, investments in our existing business, debt service obligations, payment of authorized quarterly dividends, repurchase of our common stock and strategic small acquisitions.
Constant Currency. We calculate the effect of currency fluctuations on current periods by translating the results for our business in the U.K. during the current period using the average exchange rates from the comparative period. We present constant currency information to provide useful information to assess our underlying business excluding the effect of material foreign currency rate fluctuations. Calculated in constant currency, our rental revenues and adjusted EBITDA for the three months ended June 30, 2019 were $1.1 million and $0.4 million higher than when calculated in accordance with GAAP.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190725005749/en/
Contacts:
Chief Financial Officer
Mobile Mini, Inc.
(602) 308-3879
www.mobilemini.com
-or-
Investor Relations Counsel:
The Equity Group Inc.
Fred Buonocore (212) 836-9607
Mike Gaudreau (212) 836-9620
