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 March 31, 2019.
Total revenues were $149.7 million and rental revenues were
$142.2 million, as compared to $140.7 million and $132.3 million,
respectively, for the same period last year. Rental revenues for
the Storage Solutions and Tank & Pump Solutions businesses for
the current quarter were $112.7 million and $29.4 million,
respectively, compared to $106.9 million and $25.5 million,
respectively, for the same period last year.
The Company realized net income of $18.1 million, or $0.40 per
diluted share, in the first quarter of 2019. On an adjusted basis,
first quarter net income was $18.2 million, or $0.41 per diluted
share, as compared to adjusted net income of $14.9 million, or
$0.33 per diluted share, for the first quarter of 2018. Adjusted
EBITDA was $56.2 million and adjusted EBITDA margin was 37.6% for
the first 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 May 29, 2019 to
shareholders of record as of May 15, 2019.
First Quarter 2019 Highlights
- Continued strong rental revenue growth
in Tank & Pump Solutions (“T&P”) with a 15.6%
year-over-year increase.
- Delivered healthy North American
Storage Solutions (“SS”) rental revenue year-over-year growth of
8.0%.
- Delivered year-over-year rate growth of
3.3% in SS and a mid-single digit increase for T&P, for new
units placed on rent.
- Achieved strong average OEC utilization
rates of 77.1% for SS and 74.1% for T&P in the first quarter,
while investing in fleet for anticipated near-term growth.
- Achieved adjusted EBITDA growth of
15.8%, compared to the prior-year quarter, with 16.6% in constant
currency, and expanded adjusted EBITDA margin by 310 basis points
to 37.6%.
- Generated robust net cash flow from
operating activities of $38.8 million and free cash flow of $16.2
million.
- Enhanced liquidity position through a
$1.0 billion refinancing of our ABL Credit Agreement, extending the
maturity to March 2024.
- Increased return on capital employed to
9.0% as of March 31, 2019, which exceeds weighted average cost
of capital and is a 170 basis point improvement from March 31,
2018.
- Decreased leverage ratio to 4.0x at
March 31, 2019 from 4.2x at December 31, 2018 and 5.0x at December
31, 2017.
CEO Comments
Erik Olsson, Mobile Mini’s Chief Executive Officer, remarked, “I
am very pleased with our performance and profitability in the first
quarter, including our 15.8% increase in adjusted EBITDA. Our Tank
& Pump division is starting to show its real potential and
delivered 35.3% growth in adjusted EBITDA with an adjusted EBITDA
margin of 34.9%, which was a 520 basis point increase over last
year. Our North America Storage Solutions business is also very
healthy, with year-over-year rate increases of 3.2% on our core
business coupled with a 2% increase in units on rent. In the United
Kingdom, where Brexit continues to cause uncertainty in the general
economy, we managed to increase rates and grow trucking and
ancillary revenues to offset a small decrease in units on rent,
resulting in increased rental revenues in local currency.”
Mr. Olsson continued, “Our outlook remains very positive for the
remainder of 2019. In our Tank & Pump business, we have
demonstrated to our customers that we provide outstanding service
and product, along with technology tools that deliver improved
customer efficiency. We believe we are positioned to capitalize on
the growth in demand throughout this industry and gain additional
business with existing and new customers. Pending orders in the
North American Storage Solutions segment remain well above the
prior-year at this time and the pipeline remains solid. Overall,
North American economic indicators are positive and, for 2019
rental revenue growth we expect to exceed our Evergreen target,
while delivering margin expansion, strong free cash flow and
meaningful de-leveraging.”
Conference Call
Mobile Mini will host a conference call tomorrow, April 23rd at
11:00 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 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
196,400 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 12,800 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 generate continued
margin expansion and growth of revenue, adjusted EBITDA, and free
cash flow, as well as our ability to gain additional business from
customers and exceed our Evergreen target metrics, 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 March 31, 2019 Three Months Ended
March 31, 2018 Actual Adjustments Adjusted
(1) Actual Adjustments Adjusted (1)
Revenues: Rental $ 142,172 $ — $ 142,172 $ 132,338 $ — $ 132,338
Sales 7,223 — 7,223 8,103 — 8,103 Other 266 —
266 213 — 213 Total revenues 149,661
— 149,661 140,654 — 140,654
Costs and expenses: Rental, selling and general expenses
92,234 — 92,234 88,998 — 88,998 Cost of sales 4,602 — 4,602 5,391 —
5,391 Restructuring expenses — — — 111 (111 ) — Depreciation and
amortization 17,335 — 17,335 16,823
— 16,823 Total costs and expenses 114,171
— 114,171 111,323 (111 ) 111,212
Income from operations 35,490 — 35,490 29,331 111 29,442
Other income (expense): Interest income — — — 6 — 6 Interest
expense (10,760 ) — (10,760 ) (9,599 ) — (9,599 ) Deferred
financing costs write-off (123 ) 123 — — — — Foreign currency
exchange 1 — 1 66 — 66
Income before income tax provision 24,608 123 24,731 19,804
111 19,915 Income tax provision 6,523 32 6,555 4,949 28
4,977
Net income $ 18,085 $ 91 $ 18,176 $
14,855 $ 83 $ 14,938 EBITDA/Adjusted EBITDA $ 52,826 $
56,230 $ 46,226 $ 48,566 EBITDA/Adjusted EBITDA as a percentage of
total revenues
35.3 % 37.6 % 32.9 % 34.5 % Earnings per share: Basic $ 0.41
$ 0.41 $ 0.34 $ 0.34 Diluted 0.40 0.41 0.33 0.33 Weighted
average number of common and
common share equivalents outstanding:
Basic 44,448 44,448 44,214 44,214 Diluted 44,877 44,877 44,842
44,842
(1) Adjusted columns for the three months
ended March 31, 2019 and 2018 exclude 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 informationfollowing in this earnings
release.
Mobile Mini, Inc. Operating Data (Unaudited)
2019
2018 As of March 31: Stand-alone Storage Solutions
locations 119 119 Stand-alone Tank & Pump Solutions locations
20 17 Combined Storage Solutions and Tank & Pump Solutions
locations 17 17 Storage Solutions rental fleet units 196,400
214,900 Tank & Pump Solutions rental fleet units 12,800 12,300
Average utilization based on original equipment cost
Three months ended March 31: Storage Solutions 77.1 % 68.6 %
Tank & Pump Solutions 74.1 % 73.6 %
Mobile
Mini, Inc. Business Segment Information - Adjusted (1)
(Unaudited) (in thousands, except percentages)
Three Months Ended March 31, 2019 Three
Months Ended March 31, 2018
Storage Solutions
Tank & Pump
Solutions
Total
Storage Solutions
Tank & Pump
Solutions
Total Revenues: Rental $ 112,725 $ 29,447 $ 142,172 $
106,864 $ 25,474 $ 132,338 Sales 5,777 1,446 7,223 6,739 1,364
8,103 Other 225 41 266 169 44
213 Total revenues 118,727 30,934
149,661 113,772 26,882 140,654 Costs
and expenses: Rental, selling and general expenses 72,626 19,608
92,234 70,824 18,174 88,998 Cost of sales 3,816 786 4,602 4,569 822
5,391 Depreciation and amortization 10,723 6,612
17,335 10,732 6,091 16,823 Total costs
and expenses 87,165 27,006 114,171
86,125 25,087 111,212 Income from operations $
31,562 $ 3,928 $ 35,490 $ 27,647 $ 1,795 $ 29,442 Adjusted
EBITDA $ 45,428 $ 10,802 $ 56,230 $ 40,581 $ 7,985 $ 48,566
Adjusted EBITDA Margin 38.3 % 34.9 % 37.6 % 35.7 % 29.7 % 34.5 %
(1) These tables present results by major
business segment adjusted to exclude certain transactions that
management believes are not indicative of ourbusiness. See
additional information regarding non-GAAP financial information
following in this earnings release.
Mobile Mini, Inc. Condensed Consolidated Balance
Sheets (in thousands)
March 31, December 31, 2019 2018
(unaudited) (audited) ASSETS Cash and cash
equivalents $ 4,296 $ 5,605 Receivables, net 113,201 130,233
Inventories 11,702 11,725 Rental fleet, net 943,937 929,090
Property, plant and equipment, net 150,649 154,254 Operating lease
assets 90,084 — Other assets 15,945 13,398 Intangibles, net 53,967
55,542 Goodwill 706,639 705,217 Total assets $
2,090,420 $ 2,005,064
LIABILITIES AND STOCKHOLDERS'
EQUITY Liabilities: Accounts payable $ 28,746 $ 33,177 Accrued
liabilities 66,245 88,136 Operating lease liabilities 91,863 —
Lines of credit 593,700 593,495 Obligations under finance leases
62,380 63,359 Senior notes, net 246,648 246,489 Deferred income
taxes 175,681 170,139 Total liabilities
1,265,263 1,194,795 Stockholders' equity: Common
stock 503 500 Additional paid-in capital 624,941 619,850 Retained
earnings 416,387 410,641 Accumulated other comprehensive loss
(67,756 ) (72,861 ) Treasury stock (148,918 )
(147,861 ) Total stockholders' equity 825,157 810,269
Total liabilities and stockholders' equity $ 2,090,420 $ 2,005,064
Mobile Mini, Inc. Condensed Consolidated
Statements of Cash Flows (Unaudited) (in thousands)
Three Months Ended March 31,
2019 2018 Cash flows from operating
activities: Net income $ 18,085 $ 14,855 Adjustments to reconcile
net income to net cash
provided by operating activities:
Deferred financing costs write-off 123 — Provision for doubtful
accounts 1,212 961 Amortization of deferred financing costs 505 515
Amortization of long-term liabilities 13 36 Share-based
compensation expense 3,404 2,229 Depreciation and amortization
17,335 16,823 Gain on sale of rental fleet (1,425 ) (1,533 ) Loss
on disposal of property, plant and equipment 18 334 Deferred income
taxes 5,058 4,397 Foreign currency exchange (1 ) (66 ) Changes in
certain assets and liabilities, net of
effect of businesses acquired
(5,544 ) (3,620 ) Net cash provided by operating
activities 38,783 34,931 Cash flows from
investing activities: Additions to rental fleet, excluding
acquisitions (23,016 ) (15,389 ) Proceeds from sale of rental fleet
3,338 3,844 Additions to property, plant and equipment, excluding
acquisitions (2,919 ) (4,752 ) Proceeds from sale of property,
plant and equipment 49 179 Net cash used in investing
activities (22,548 ) (16,118 ) Cash flows from
financing activities: Net borrowings (repayments) under lines of
credit 203 (12,443 ) Deferred financing costs (3,254 ) — Principal
payments on finance lease obligations (2,586 ) (1,990 ) Issuance of
common stock 1,690 1,525 Dividend payments (12,426 ) (11,054 )
Purchase of treasury stock (1,057 ) (533 ) Net cash
used in financing activities (17,430 ) (24,495 )
Effect of exchange rate changes on cash (114 )
(6 ) Net change in cash (1,309 ) (5,688 ) Cash and
cash equivalents at beginning of period 5,605 13,451
Cash and cash equivalents at end of period $ 4,296 $ 7,763
Equipment and other acquired through finance lease obligations $
1,609 $ 2,897 Capital expenditures accrued or payable 8,012 6,613
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
March 31,
2019 2018 Net income $ 18,085 $ 14,855 Interest
expense 10,760 9,599 Income tax provision 6,523 4,949 Depreciation
and amortization 17,335 16,823 Deferred financing costs write-off
123 — EBITDA 52,826 46,226 Share-based
compensation expense 3,404 2,229 Restructuring expenses —
111 Adjusted EBITDA $ 56,230 $ 48,566
Three
Months Ended
March 31,
2019 2018 Net cash provided by operating activities $
38,783 $ 34,931 Interest paid 14,276 12,348 Income and franchise
taxes paid 2,020 120 Share-based compensation expense,
including restructuring expense
(3,404 ) (2,229 ) Gain on sale of rental fleet 1,425 1,533 Loss on
disposal of property, plant and
equipment
(18 ) (334 ) Changes in certain assets and liabilities, net of
effect of businesses acquired
(256 ) (143 ) EBITDA $ 52,826 $ 46,226
Mobile Mini, Inc. Free Cash Flow GAAP Reconciliation (Unaudited)
(in thousands)
Three Months
Ended
March 31,
2019 2018 Net cash provided by operating activities $
38,783 $ 34,931 Additions to rental fleet, excluding
acquisitions (23,016 ) (15,389 ) Proceeds from sale of rental fleet
3,338 3,844 Additions to property, plant and equipment,
excluding acquisitions
(2,919 ) (4,752 ) Proceeds from sale of property, plant and
equipment
49 179 Net capital expenditures, excluding
acquisitions (22,548 ) (16,118 ) Free
cash flow $ 16,235 $ 18,813
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
March 31, 2019 were $1.3 million and $0.4 million higher than when
calculated in accordance with GAAP.
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version on businesswire.com: https://www.businesswire.com/news/home/20190422005498/en/
Van Welch, Executive VP &Chief Financial OfficerMobile Mini,
Inc.(602) 308-3879www.mobilemini.com
-OR-
INVESTOR RELATIONS COUNSEL:The Equity Group Inc.Fred
Buonocore (212) 836-9607Kevin Towle (212) 836-9620
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