Mobile Mini (MINI) 8-K Mobile Mini, Inc. Reports Second Quarter Operating Results

Exhibit 99.1

FOR IMMEDIATE RELEASE

MOBILE MINI, INC. REPORTS SECOND QUARTER OPERATING RESULTS

Tempe, AZ – July 24, 2003 — Mobile Mini, Inc. (NASDAQ National Market: MINI) today reported its financial results for the second quarter ended June 30, 2003.

			Three Months ended June 30, 2003
			Debt Restructuring		Litigation
	Pro forma		Expense(1)		Expense(2)				Actual
Revenue	$	35,051,498	$	—	$	—			$	35,051,498
EBITDA		13,016,204		—				154,601		12,861,603
Net Income (Loss)		4,333,043		6,368,611				94,307		(2,129,875	)
Diluted Earnings (Loss) Per Share	$	0.30	$	0.44			$	0.01	$	(0.15	)

			Six Months Ended June 30, 2003
			Debt Restructuring		Litigation
	Pro forma		Expense(1)		Expense(2)		Actual
Revenue	$	68,793,487	$	—	$	—	$	68,793,487
EBITDA		25,197,480		—		219,041		24,978,439
Net Income		8,205,479		6,368,611		133,616		1,703,252
Diluted Earnings Per Share	$	0.57	$	0.44	$	0.01	$	0.12

⁽¹⁾ The one-time debt restructuring expense includes the write-off of expenses associated with the prior credit agreement and termination of the interest rate swap agreements that took place during the second quarter concurrently with the issuance of $150 million of 91/2% senior notes due 2013 and the amendment and restatement of Mobile Mini’s $250 million revolving credit facility. Pro forma results exclude debt restructuring expense of $10.4 million ($6.4 million, after tax).

⁽²⁾ Litigation expense represents legal and other costs expensed during the period related to the defense of the Florida litigation (Nuko Holdings I, LLC v. Mobile Mini) and related litigation discussed herein. Pro forma results exclude litigation expense.

Second Quarter 2003 (pro forma) vs. Second Quarter 2002

• Total revenues increased 10.7% to $35.1 million from $31.7 million;

• Lease revenues increased 12.0% to $30.9 million from $27.6 million;

• Lease revenues comprised 88.3% of total revenues, versus 87.2% in Q2 2002;

• EBITDA (earnings before interest expense, tax, depreciation, amortization and debt restructuring expense) rose 5.2%, to $13.0 million from $12.4 million;

• Pro forma net income was $4.3 million or $0.30 per diluted share, near level with the prior year’s second quarter and at the mid-range of the Company’s projections.

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Mobile Mini, Inc. News Release
July 24, 2003 Page 2

Other Second Quarter Highlights
•	Internal growth (the increase in leasing revenues at locations open one year or more excluding acquisitions) was 7.0%, not far from the 9.5% growth experienced in Q1 2003;
•	The average utilization rate was 77.3%, up from 75.5% for Q1 2003;
•	Yield declined 4.7% compared to last year’s second quarter. The decrease was due primarily to a decrease in less profitable ancillary revenue (primarily trucking revenue), and to lower rental rates in markets acquired in 2002. Many of these markets were in the Mid Atlantic and New England regions where rental rates are traditionally lower than Mobile Mini’s average rental rates;
•	Total containers on lease at the newly acquired branches comprising the Class of 2002 had risen 43.6% from the dates the various transactions closed last year to June 30, 2003.

Business Overview
Steven Bunger, Chairman, President & CEO of Mobile Mini, stated, “The second quarter was a successful one, especially considering the overall weakness in the economy. Revenues, especially lease revenues, continued their upward trend. While our internal growth rate slowed slightly as compared to the first quarter, 7% is a healthy growth rate in the current business climate. As expected, our average utilization rate rose in the second quarter. The second quarter average was 77.3%, which is well above the rate required under our credit agreement covenant. Our goal is to continue to increase the utilization rate as the year progresses.”

Discussing the Company’s operating margin, Mr. Bunger continued, “Our second quarter operating margin was 29.1% compared to 31.8% one year ago. The operating margin in the current year was impacted by higher insurance expenses as well as last year’s geographic expansion. In 2002, we entered 11 new markets, which typically have lower operating margins during their early years. These factors, which negatively impacted operating margins, were less pronounced than last quarter.”

Mobile Mini’s business model involves the expenditure of substantial fixed costs at all of its 46 locations in order to develop an infrastructure to support growth. Operating margins then increase when containers on lease at existing locations increase. Newer locations invariably produce lower operating margins until they increase their containers on lease. Historically, newer branches are the catalyst for growth in lease revenue and earnings as they mature. The table below shows operating margins and the return on the invested capital at our various branches sorted by the year they began operations. It illustrates the profitability of branches once they are firmly established. It also shows that older branches produced healthy returns on invested capital.

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Mobile Mini, Inc. News Release
July 24, 2003 Page 3

								After Tax Return on
		Operating Margin %						Invested Capital
Year Branch		(after corporate allocation)						(NOPLAT)
Established		3 months ended June 30,						12 months ended June 30,
		2002			2003			2002			2003
Pre-1998 total			41	%		38	%		18	%		14	%
	1998		39	%		39	%		16	%		14	%
	1999		25	%		19	%		8	%		6	%
	2000		17	%		27	%		7	%		8	%
	2001		6	%		18	%		2	%		6	%
	2002		17	%		-2	%		2	%		2	%
All Branches			32	%		30	%		13	%		11	%

Larry Trachtenberg, Executive Vice President & CFO noted, “A highlight of our second quarter was the $150 million senior note offering which brought us greatly improved financial flexibility. This was an opportunistic refinancing in which we locked in an attractive interest rate for 10 years during a period of historically low interest rates. We used the proceeds of the note offering to pay down borrowings under our revolving credit facility and we amended and restated the credit facility at the same time. As a result, our additional borrowing availability, which was approximately $10 million before the offering, is $76 million today. This substantial increase in liquidity, together with cash flow from operations, will allow us to continue to execute our business plan. We are firmly convinced that the increase in liquidity and the opportunities it creates, together with the opportunity to fix interest rates for 10 years, substantially outweigh the increased interest expense associated with the senior notes.”

Mr. Bunger continued, “We have the infrastructure in place at all our locations to support a much larger number of containers on lease. With the senior note offering completed, we have no foreseeable capital constraints that would limit our ability to replicate at our newer branches the EBITDA and operating income expansion that we’ve already achieved at older branches. Our primary focus will be to build out the network of 46 branches we have established over the last several years. The speed at which we build out this network will of course be dictated by a combination of our marketing ability and general economic conditions. By adding units on rent at existing branches, we can take advantage of the 73% EBITDA margins and approximately 60% pretax margins on incremental leasing revenue that our existing branches now deliver. This will enable us to achieve increased profitability and improved operating and EBITDA margins. In addition, we may enter two to four new markets this year.”

Concluding, Mr. Trachtenberg noted, “The previously announced $0.12 in EPS dilution from the higher interest costs associated with the senior notes is the only adjustment we are making to our 2003 pro forma guidance which is now $1.28 per diluted share rather than $1.40 which equates to EBITDA of approximately $57 million to $58 million. For the third quarter, we now expect earnings of $0.30 to $0.32 per diluted share and EBITDA of between $15 million and $15.5 million.”

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Mobile Mini News Release
July 24, 2003 Page 4

Mobile Mini further stated that there are no further developments to report with regard to its appeal on the Florida jury verdict finding against Mobile Mini and for Nuko Holdings, nor on the indemnification claim Mobile Mini is pursuing against A-1 Trailer Rental, the organization from whom it purchased portable storage assets in Florida in 2000. Mobile Mini continues to expense all litigation costs and other expenses related to these Florida litigation matters. Mobile Mini is not reasonably able to estimate the ultimate loss, if any, in connection with the litigation against Nuko, and while Mobile Mini continues to disclose the litigation and related expenses, it has not accrued a loss contingency in connection with these litigation matters, and such non-accrual is in accordance with applicable accounting principles.

Conference Call
Mobile Mini will host a conference call today, Thursday, July 24th 12 noon EDT to review second quarter financial results and recent corporate developments. To listen to the live call, please go to www.mobilemini.com and click on the Investor Relations section. Please go to the website 15 minutes early to download and install any necessary audio software. If you are unable to listen live, the conference call can be accessed for approximately 14 days at Mobile Mini’s website.

Mobile Mini, Inc. is North America’s leading provider of portable storage solutions through its total fleet of approximately 88,000 portable storage units and portable offices. The Company currently has 46 branches and operates in 26 states and one Canadian province. For two consecutive years, Mobile Mini was named to Forbes Magazine’s list of the 200 Best Small Companies in America and the Fortune Magazine (Small Business) list of the 100 Fastest-Growing Publicly Held Small Businesses in America. Mobile Mini is included on the Russell 2000® and 3000® Indexes and the S&P Small Cap Index.

This news release contains forward-looking statements, particularly regarding operating prospects, expansion opportunities and earnings estimates for 2003, which involve risks and uncertainties that could cause actual results to differ materially from those currently anticipated. Risks and uncertainties that may affect future results include those that are described from time to time in the Company’s SEC filings. These forward-looking statements represent the judgment of the Company, as of the date of this release, and Mobile Mini disclaims any intent or obligation to update forward-looking statements.

(See Accompanying Tables)

Mobile Mini News Release
July 24, 2003 Page 5

Mobile Mini, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(in 000’s except for per share amounts)

		Three Months Ended June 30,
		2003 actual			2003 pro forma(2)				2002
Revenues:
	Leasing	$	30,942		$	30,942		$	27,617
	Sales		3,990			3,990			3,806
	Other		120			120			248
Total revenues			35,052			35,052			31,671
Costs and expenses:
	Cost of sales		2,494			2,494			2,477
	Leasing, selling and general expenses		19,542			19,542			16,829
	Florida litigation expense(1)		155			—			—
	Depreciation and amortization		2,673			2,673			2,305
Total costs and expenses			24,864			24,709			21,611
Income from operations			10,188			10,343			10,060
Other income (expense):
	Interest income		—			—			4
	Interest expense		(3,240	)		(3,240	)		(2,795	)
	Debt restructuring expense		(10,440	)		—			—
Income (loss) before provision for income taxes			(3,492	)		7,103			7,269
Provision for (benefit of) income taxes			(1,362	)		2,770			2,835
Net income (loss)		$	(2,130	)	$	4,333		$	4,434
Earnings (loss) per share:
	Basic:	$	(0.15	)	$	0.30		$	0.31
	Diluted:	$	(0.15	)	$	0.30		$	0.31
Weighted average number of common and common share equivalents outstanding:
	Basic		14,297			14,297			14,248
	Diluted		14,437			14,437			14,486
Number of shares outstanding			14,301			14,301			14,254
EBITDA		$	12,861		$	13,016		$	12,369

⁽¹⁾ Florida litigation expense consists of legal and other costs expensed during the period related to the defense of the Florida litigation (Nuko Holdings I, LLC v. Mobile Mini) and related litigation discussed in the Company’s SEC filings.

⁽²⁾ Excluding effect of Florida litigation and 2003 debt restructuring expense.

Mobile Mini News Release
July 24, 2003 Page 6

Mobile Mini, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(in 000’s except for per share amounts)

		Six Months Ended June 30,
		Actual 2003			Pro Forma 2003(2)			Actual 2002			Pro Forma 2002(3)
Revenues:
	Leasing	$	60,646		$	60,646		$	52,705		$	52,705
	Sales		7,850			7,850			7,885			7,885
	Other		298			298			469			469
Total revenues			68,794			68,794			61,059			61,059
Costs and expenses:
	Cost of sales		4,948			4,948			5,159			5,159
	Leasing, selling and general expenses		38,649			38,649			31,620			31,620
	Florida litigation expense (1)		219			—			—			—
	Depreciation and amortization		5,290			5,290			4,415			4,415
Total costs and expenses			49,106			48,887			41,194			41,194
Income from operations			19,688			19,907			19,865			19,865
Other income (expense):
	Interest income		1			1			11			11
	Interest expense		(6,456	)		(6,456	)		(5,222	)		(5,222	)
	Debt restructuring expense		(10,440	)		—			(1,300	)		—
Income before provision for income taxes			2,793			13,452			13,354			14,654
Provision for income taxes			1,089			5,246			5,208			5,715
Net income		$	1,704		$	8,206		$	8,146		$	8,939
Earnings per share:
	Basic:	$	0.12		$	0.57		$	0.57		$	0.63
	Diluted:	$	0.12		$	0.57		$	0.56		$	0.61
Weighted average number of common and common share equivalents outstanding:
	Basic		14,296			14,296			14,238			14,238
	Diluted		14,412			14,412			14,547			14,547
Number of shares outstanding			14,301			14,301			14,254			14,254
EBITDA		$	24,978		$	25,197		$	24,291		$	24,291

⁽¹⁾ Florida litigation expense consists of legal and other costs expensed during the period related to the defense of the Florida litigation (Nuko Holdings I, LLC v. Mobile Mini) and related litigation discussed in the Company’s SEC filings.

⁽²⁾ Excluding effect of Florida litigation and 2003 debt restructuring expense.

⁽³⁾ Excludes 2002 debt restructuring expense.

Mobile Mini News Release
July 24, 2003 Page 7

Mobile Mini, Inc.
Condensed Consolidated Balance Sheets
(in 000’s)

			June 30, 2003			December 31, 2002
			(Unaudited)			(Audited)
ASSETS
Cash			$	163		$	1,635
Receivables, net				15,119			16,234
Inventories				15,709			13,278
Lease fleet, net				358,900			337,084
Property plant and equipment, net				24,270			34,103
Deposits and prepaid expenses				4,924			3,776
Other assets and intangibles, net				7,501			3,022
Goodwill				51,463			51,758
Total assets			$	488,049		$	460,890
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
	Accounts payable		$	5,715		$	8,766
	Accrued liabilities			13,653			18,914
	Line of credit			89,000			211,098
	Notes payable			1,388			2,044
	Obligations under capital leases			63			80
	Senior notes			150,000			—
	Deferred income taxes			44,475			41,319
		Total liabilities		304,293			282,221
Commitments and contingencies
Stockholders’ equity:
Common stock; $0.01 par value, 95,000,000 shares authorized, 14,292,714 and 14,300,614 issued and outstanding at December 31, 2002 and June 30, 2003, respectively				143			143
Additional paid-in capital				116,199			116,117
Retained earnings				68,086			66,383
Accumulated other comprehensive loss				(672	)		(3,974	)
		Total stockholders’ equity		183,756			178,669
		Total liabilities and stockholders’ equity	$	488,049		$	460,890

CONTACT: Larry Trachtenberg, Executive VP &	-OR-	INVESTOR RELATIONS COUNSEL: The Equity Group Inc.
Chief Financial Officer		Linda Latman (212) 836-9609
Mobile Mini, Inc.		www.theequitygroup.com
(480) 894-6311
www.mobilemini.com

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