Exhibit 99.1
[GRAPHIC APPEARS HERE]
FOR IMMEDIATE RELEASE
MOBILE MINI REPORTS Q4’13 RESULTS
Tempe, AZ – February 14, 2014 — Mobile Mini, Inc. (NASDAQ GS: MINI), the world’s leading supplier of portable storage solutions, today reported actual and adjusted financial results for the quarter ended December 31, 2013. Total revenues were $106.8 million and leasing revenues were $97.8 million, up from $99.8 million and $91.4 million, respectively, for the same period last year. The Company’s fourth quarter net income was $12.0 million, or $0.26 per diluted share, compared to $11.3 million, or $0.25 per diluted share, respectively, for the fourth quarter of 2012. On an adjusted basis, fourth quarter net income was $12.8 million, or $0.28 per diluted share, compared to $14.8 million, or $0.33 per diluted share, respectively, for the fourth quarter of 2012.
Adjusted EBITDA from continuing operations was $40.5 million and adjusted EBITDA margin was 37.9% for the fourth quarter of 2013.
Sale of Netherlands Operation
During the fourth quarter of 2013, the Company sold its branch in the Netherlands, which was deemed non-core to its operations in Europe. The loss per diluted share of the discontinued operation in the fourth quarter and full year 2013 was $0.02 and $0.03, respectively.
Fourth Quarter 2013 Highlights
| | • | | Grew leasing revenues 7.0% year-over-year. |
| | • | | Drove fourth quarter sequential rental rates 2.0% higher than third quarter levels. |
| | • | | Increased rental rates by 4.6% year-over-year, with new units delivered at a 9.7% higher rate than the previous year. |
| | • | | Improved yield by 4.9% to $624 per unit, an all-time fourth quarter high. |
| | • | | Achieved an adjusted EBITDA margin of 37.9%, while continuing to invest in repairs and maintenance associated with increased deliveries and repositioning assets to high utilization markets, resulting in incremental expense of approximately $5 million, or 5% of revenues, compared to the fourth quarter of 2012. |
| | • | | Increased average fleet utilization to 72.8%, up from 65.1% in the fourth quarter of 2012. |
| | • | | Delivered free cash flow of $31.8 million, the 24th consecutive quarter of positive free cash flow. |
| | • | | Reduced net debt by $39.5 million. |
Full Year 2013 Highlights
| | • | | Increased total revenues and leasing revenues by 7.0% and 7.7% to $406.5 million and $366.3 million, respectively. |
| | • | | Improved adjusted EBITDA by 8.3% to $157.5 million, for a 38.7% adjusted EBITDA margin. |
| | • | | Generated $109.4 million of free cash flow, up from $65.1 million in 2012. |
| | • | | Reduced net debt by $123.8 million, resulting in a net debt/TTM adjusted EBITDA leverage ratio of approximately 3.4x. |
Erik Olsson, Mobile Mini’s President and Chief Executive Officer, commented, “I am very pleased with our performance in the fourth quarter, with an underlying adjusted EBITDA margin of almost 43% excluding our incremental investments in fleet repairs and repositioning. Once again, we drove rental rates higher and put more units on rent as a result of our intensified sales and marketing efforts. As planned, we continued to repair and reposition available units to high demand areas and we expect to continue to make these investments throughout 2014 in order to minimize capex as well as maximize cash flow and utilization.”
| | | | |
| Mobile Mini, Inc. News Release | | | | Page 2 |
| February 14, 2014 | | | | |
Mr. Olsson continued, “We enter 2014 well positioned to build upon the momentum of the past year. Our existing markets hold significant untapped potential, and we have been refining and investing in our sales organization to capitalize on these opportunities. We also plan to expand our footprint in North America with the addition of five to ten new locations in strategically attractive markets. We expect our year-over-year top line growth and profitability in 2014 to exceed that of 2013, which will drive accelerating free cash flow for the year. We have ample fleet capacity to support our growth in 2014, and expect capital expenditures to be in the $25 million to $30 million range, primarily for investments in delivery equipment and IT infrastructure.”
Dividend
The Company’s newly instituted regular quarterly cash dividend of $0.17 per share will be paid on March 20, 2014 to shareholders of record on March 6, 2014.
EBITDA, Adjusted EBITDA, EBITDA margin, adjusted EBITDA margin, adjusted net income, adjusted diluted EPS, and free cash flow are non-GAAP financial measures as defined by Securities and Exchange Commission (“SEC”) rules. Reconciliations of these measurements to the most directly comparable GAAP financial measures can be found later in this release.
Conference Call
Mobile Mini will host a conference call today, Friday, February 14, 2014, at 12 noon 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 and the reconciliation of non-GAAP financial measures used in the slide show to the most directly comparable GAAP financial measures will be posted at www.mobilemini.com on the Investors 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.
Mobile Mini, Inc. is the world’s leading provider of portable storage solutions through its total lease fleet of over 212,000 portable storage containers and office units with 136 locations in the U.S., United Kingdom, and Canada. 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, including, but not limited to, our expectations regarding our growth and profitability, financial performance, ability to repair and reposition fleet, capex spend and expand our footprint in North America 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.
| | | | |
| CONTACT: | | -OR- | | INVESTOR RELATIONS COUNSEL: |
| Mark Funk, Executive VP & | | | | The Equity Group Inc. |
| Chief Financial Officer | | | | Fred Buonocore (212) 836-9607 |
| Mobile Mini, Inc. | | | | Linda Latman (212) 836-9609 |
(480) 477-0241
www.mobilemini.com
(See Accompanying Tables)
| | | | |
| Mobile Mini, Inc. News Release | | | | Page 3 |
| February 14, 2014 | | | | |
Mobile Mini, Inc. Condensed Consolidated Statements of Income
(Unaudited)/(in thousands except per share data)/(includes effects of rounding)
| | | | | | | | | | | | | | | | |
| | | Three Months Ended
December 31, | | | Three Months Ended
December 31, | |
| | | 2013
Actual | | | 2013
Adjusted (1) | | | 2012
Actual | | | 2012
Adjusted (1) | |
Revenues: | | | | | | | | | | | | | | | | |
Leasing | | $ | 97,820 | | | $ | 97,820 | | | $ | 91,413 | | | $ | 91,413 | |
Sales | | | 8,246 | | | | 8,246 | | | | 7,833 | | | | 7,833 | |
Other | | | 733 | | | | 733 | | | | 600 | | | | 600 | |
| | | | | | | | | | | | | | | | |
Total revenues | | | 106,799 | | | | 106,799 | | | | 99,846 | | | | 99,846 | |
| | | | | | | | | | | | | | | | |
Costs and expenses: | | | | | | | | | | | | | | | | |
Cost of sales | | | 5,472 | | | | 5,472 | | | | 4,917 | | | | 4,917 | |
Leasing, selling and general expenses (2) | | | 64,809 | | | | 64,805 | | | | 54,470 | | | | 54,319 | |
Merger and restructuring expenses (3) | | | 349 | | | | — | | | | 5,533 | | | | — | |
Asset impairment charge, net (4) | | | (784 | ) | | | — | | | | — | | | | — | |
Depreciation and amortization | | | 8,993 | | | | 8,993 | | | | 9,036 | | | | 9,036 | |
| | | | | | | | | | | | | | | | |
Total costs and expenses | | | 78,839 | | | | 79,270 | | | | 73,956 | | | | 68,272 | |
| | | | | | | | | | | | | | | | |
Income from operations | | | 27,960 | | | | 27,529 | | | | 25,890 | | | | 31,574 | |
Other income (expense): | | | | | | | | | | | | | | | | |
Interest income | | | 1 | | | | 1 | | | | — | | | | — | |
Interest expense | | | (7,151 | ) | | | (7,151 | ) | | | (7,719 | ) | | | (7,719 | ) |
Foreign currency exchange | | | (1 | ) | | | (1 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Income from continuing operations before provision for income taxes | | | 20,809 | | | | 20,378 | | | | 18,171 | | | | 23,855 | |
Provision for income taxes | | | 7,717 | | | | 7,551 | | | | 6,873 | | | | 9,061 | |
| | | | | | | | | | | | | | | | |
Income from continuing operations | | | 13,092 | | | | 12,827 | | | | 11,298 | | | | 14,794 | |
Loss from discontinued operation, net of tax (5) | | | (1,134 | ) | | | — | | | | (40 | ) | | | — | |
| | | | | | | | | | | | | | | | |
Net income | | $ | 11,958 | | | $ | 12,827 | | | $ | 11,258 | | | $ | 14,794 | |
| | | | | | | | | | | | | | | | |
Earnings per share: | | | | | | | | | | | | | | | | |
Basic: | | | | | | | | | | | | | | | | |
Income from continuing operations | | $ | 0.29 | | | $ | 0.28 | | | $ | 0.25 | | | $ | 0.33 | |
Loss from discontinued operation | | | (0.03 | ) | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Net Income | | $ | 0.26 | | | $ | 0.28 | | | $ | 0.25 | | | $ | 0.33 | |
| | | | | | | | | | | | | | | | |
Diluted: | | | | | | | | | | | | | | | | |
Income from continuing operations | | $ | 0.28 | | | $ | 0.28 | | | $ | 0.25 | | | $ | 0.33 | |
Loss from discontinued operation | | | (0.02 | ) | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Net Income | | $ | 0.26 | | | $ | 0.28 | | | $ | 0.25 | | | $ | 0.33 | |
| | | | | | | | | | | | | | | | |
Weighted average number of common and common share equivalents outstanding: | | | | | | | | | | | | | | | | |
Basic | | | 45,736 | | | | 45,736 | | | | 44,822 | | | | 44,822 | |
| | | | | | | | | | | | | | | | |
Diluted | | | 46,461 | | | | 46,461 | | | | 45,349 | | | | 45,349 | |
| | | | | | | | | | | | | | | | |
EBITDA | | $ | 36,953 | | | $ | 40,455 | | | $ | 34,926 | | | $ | 42,272 | |
| | | | | | | | | | | | | | | | |
| (1) | This column represents a non-GAAP presentation even though some individual line items presented, such as revenues, are identical under both GAAP and the adjusted presentations. |
| (2) | Represents acquisition activity costs and, in 2012, excludes estimated damages, net of estimated insurance recoveries, to our assets caused by natural disasters that are excluded in the adjusted presentation. |
| (3) | Merger and restructuring expenses represent costs relating primarily to the restructuring of our operations that are excluded in the adjusted presentation. |
| (4) | Represents the net sales in excess of fair value of certain assets that were written down and classified as held for sale and is excluded in the adjusted presentation. |
| (5) | Represents our Netherlands operation that was sold in December 2013 and reported as discontinued operation. The 2013 amount also includes a $1.2 million after-tax loss on the sale. |
| | | | |
| Mobile Mini, Inc. News Release | | | | Page 4 |
| February 14, 2014 | | | | |
Mobile Mini, Inc. Condensed Consolidated Statements of Income
(Unaudited)/(in thousands except per share data)/(includes effects of rounding)
| | | | | | | | | | | | | | | | |
| | | Twelve Months Ended | | | Twelve Months Ended | |
| | | December 31, | | | December 31, | |
| | | 2013
Actual | | | 2013
Adjusted (1) | | | 2012
Actual | | | 2012
Adjusted (1) | |
Revenues: | | | | | | | | | | | | | | | | |
Leasing | | $ | 366,286 | | | $ | 366,286 | | | $ | 339,975 | | | $ | 339,975 | |
Sales | | | 38,051 | | | | 38,051 | | | | 37,759 | | | | 37,759 | |
Other | | | 2,149 | | | | 2,149 | | | | 2,162 | | | | 2,162 | |
| | | | | | | | | | | | | | | | |
Total revenues | | | 406,486 | | | | 406,486 | | | | 379,896 | | | | 379,896 | |
| | | | | | | | | | | | | | | | |
Costs and expenses: | | | | | | | | | | | | | | | | |
Cost of sales | | | 25,413 | | | | 25,413 | | | | 23,178 | | | | 23,178 | |
Leasing, selling and general expenses (2) | | | 237,567 | | | | 237,563 | | | | 218,709 | | | | 218,419 | |
Merger and restructuring expenses (3) | | | 2,402 | | | | — | | | | 7,123 | | | | — | |
Asset impairment charge, net (4) | | | 38,705 | | | | — | | | | — | | | | — | |
Depreciation and amortization | | | 35,432 | | | | 35,432 | | | | 35,982 | | | | 35,982 | |
| | | | | | | | | | | | | | | | |
Total costs and expenses | | | 339,519 | | | | 298,408 | | | | 284,992 | | | | 277,579 | |
| | | | | | | | | | | | | | | | |
Income from operations | | | 66,967 | | | | 108,078 | | | | 94,904 | | | | 102,317 | |
Other income (expense): | | | | | | | | | | | | | | | | |
Interest income | | | 1 | | | | 1 | | | | 1 | | | | 1 | |
Interest expense | | | (29,467 | ) | | | (29,467 | ) | | | (37,268 | ) | | | (37,268 | ) |
Debt restructuring expense (5) | | | — | | | | — | | | | (2,812 | ) | | | — | |
Deferred financing costs write-off (6) | | | — | | | | — | | | | (1,889 | ) | | | — | |
Foreign currency exchange | | | (2 | ) | | | (2 | ) | | | (4 | ) | | | (4 | ) |
| | | | | | | | | | | | | | | | |
Income from continuing operations before provision for income taxes | | | 37,499 | | | | 78,610 | | | | 52,932 | | | | 65,046 | |
Provision for income taxes (7) | | | 12,275 | | | | 28,704 | | | | 18,509 | | | | 24,272 | |
| | | | | | | | | | | | | | | | |
Income from continuing operations | | | 25,224 | | | | 49,906 | | | | 34,423 | | | | 40,774 | |
Loss from discontinued operation, net of tax (8) | | | (1,302 | ) | | | — | | | | (245 | ) | | | — | |
| | | | | | | | | | | | | | | | |
Net income | | $ | 23,922 | | | $ | 49,906 | | | $ | 34,178 | | | $ | 40,774 | |
| | | | | | | | | | | | | | | | |
Earnings per share: | | | | | | | | | | | | | | | | |
Basic: | | | | | | | | | | | | | | | | |
Income from continuing operations | | $ | 0.55 | | | $ | 1.10 | | | $ | 0.77 | | | $ | 0.91 | |
Loss from discontinued operation | | | (0.02 | ) | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Net Income | | $ | 0.53 | | | $ | 1.10 | | | $ | 0.77 | | | $ | 0.91 | |
| | | | | | | | | | | | | | | | |
Diluted: | | | | | | | | | | | | | | | | |
Income from continuing operations | | $ | 0.55 | | | $ | 1.08 | | | $ | 0.76 | | | $ | 0.90 | |
Loss from discontinued operation | | | (0.03 | ) | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Net Income | | $ | 0.52 | | | $ | 1.08 | | | $ | 0.76 | | | $ | 0.90 | |
| | | | | | | | | | | | | | | | |
Weighted average number of common and common share equivalents outstanding: | | | | | | | | | | | | | | | | |
Basic | | | 45,481 | | | | 45,481 | | | | 44,657 | | | | 44,657 | |
| | | | | | | | | | | | | | | | |
Diluted | | | 46,096 | | | | 46,096 | | | | 45,102 | | | | 45,102 | |
| | | | | | | | | | | | | | | | |
EBITDA | | $ | 102,398 | | | $ | 157,465 | | | $ | 130,883 | | | $ | 145,447 | |
| | | | | | | | | | | | | | | | |
| (1) | This column represents a non-GAAP presentation even though some individual line items presented, such as revenues, are identical under both GAAP and the adjusted presentations. |
| (2) | Represents acquisition activity costs and, in 2012, excludes estimated damages, net of estimated insurance recoveries, to our assets caused by natural disasters that are excluded in the adjusted presentation. |
| (3) | Merger and restructuring expenses represent costs relating primarily to the restructuring of our operations that are excluded in the adjusted presentation. |
| (4) | Represents the net impairment charge primarily for the write-down of certain assets to fair value and classified as held for sale and is excluded in the adjusted presentation. |
| (5) | In 2012, this represents the redemption premiums and the unamortized original issuance discount on the redemption of $150.0 million of 6.875% Notes originally due in 2015. Debt restructuring expense is excluded in the adjusted presentation. |
| (6) | In 2012, this represents the unamortized deferred financing costs associated with the $150.0 million of 6.875% Notes redeemed in August 2012 and a portion of deferred financing costs associated with our prior $850.0 million credit agreement which was replaced with our new $900.0 million credit agreement in February 2012. Deferred financing costs write-off is excluded in the adjusted presentation. |
| (7) | Provision for income taxes includes approximately $1.9 million and $1.2 million in 2013 and 2012, respectively, in income tax benefits related to statutory corporate income tax rate reductions in the United Kingdom that are excluded in the adjusted presentation. |
| (8) | Represents our Netherlands operation that was sold in December 2013 and reported as discontinued operation. The 2013 amount also includes a $1.2 million after-tax loss on the sale. |
| | | | |
| Mobile Mini, Inc. News Release | | | | Page 5 |
| February 14, 2014 | | | | |
Mobile Mini, Inc.
Condensed Consolidated Balance Sheets
(in thousands except par value data)
(includes effects of rounding)
| | | | | | | | |
| | | December 31,
2013 | | | December 31,
2012 | |
| | | (unaudited) | | | (audited) | |
| ASSETS | | | | | | | | |
Cash | | $ | 1,256 | | | $ | 1,780 | |
Receivables, net | | | 53,104 | | | | 50,291 | |
Inventories | | | 18,744 | | | | 19,375 | |
Lease fleet, net | | | 979,276 | | | | 1,028,773 | |
Property, plant and equipment, net | | | 85,153 | | | | 80,430 | |
Assets held for sale | | | 980 | | | | — | |
Deposits and prepaid expenses | | | 6,116 | | | | 6,747 | |
Other assets and intangibles, net | | | 13,523 | | | | 17,827 | |
Goodwill | | | 519,222 | | | | 518,308 | |
Assets of discontinued operation | | | — | | | | 4,029 | |
| | | | | | | | |
Total assets | | $ | 1,677,374 | | | $ | 1,727,560 | |
| | | | | | | | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | |
Liabilities: | | | | | | | | |
Accounts payable | | $ | 18,862 | | | $ | 18,109 | |
Accrued liabilities | | | 65,308 | | | | 58,362 | |
Lines of credit | | | 319,314 | | | | 442,391 | |
Notes payable | | | — | | | | 310 | |
Obligations under capital leases | | | 8,781 | | | | 642 | |
Senior Notes | | | 200,000 | | | | 200,000 | |
Deferred income taxes | | | 209,565 | | | | 198,046 | |
Liabilities of discontinued operation | | | — | | | | 181 | |
| | | | | | | | |
Total liabilities | | | 821,830 | | | | 918,041 | |
| | | | | | | | |
Commitments and contingencies | | | | | | | | |
Stockholders’ equity: | | | | | | | | |
Preferred stock: $.01 par value, 20,000 shares authorized, none issued | | | — | | | | — | |
Common stock: $.01 par value, 95,000 shares authorized, 48,810 issued and 46,626 outstanding at December 31, 2013 and 48,211 issued and 46,036 outstanding at December 31, 2012 | | | 488 | | | | 482 | |
Additional paid-in capital | | | 550,387 | | | | 522,372 | |
Retained earnings | | | 359,778 | | | | 343,782 | |
Accumulated other comprehensive loss | | | (15,440 | ) | | | (17,817 | ) |
Treasury stock, at cost, 2,184 and 2,175 shares at December 31, 2013 and 2012, respectively | | | (39,669 | ) | | | (39,300 | ) |
| | | | | | | | |
Total stockholders’ equity | | | 855,544 | | | | 809,519 | |
| | | | | | | | |
Total liabilities and stockholders’ equity | | $ | 1,677,374 | | | $ | 1,727,560 | |
| | | | | | | | |
| | | | |
| Mobile Mini, Inc. News Release | | | | Page 6 |
| February 14, 2014 | | | | |
Mobile Mini, Inc. Condensed Consolidated Statements of Cash Flows
(Unaudited)/(in thousands)/(includes effects of rounding)
| | | | | | | | |
| | | Twelve Months Ended December 31, | |
| | | 2013 | | | 2012 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | | | |
Net income | | $ | 23,922 | | | $ | 34,178 | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | |
Debt restructuring expense | | | — | | | | 2,812 | |
Deferred financing costs write-off | | | — | | | | 1,889 | |
Asset impairment charge, net | | | 38,217 | | | | — | |
Provision for doubtful accounts | | | 2,160 | | | | 2,179 | |
Amortization of deferred financing costs | | | 2,811 | | | | 3,217 | |
Amortization of debt issuance discount | | | — | | | | 49 | |
Amortization of long-term liabilities | | | 169 | | | | 167 | |
Share-based compensation expense | | | 14,714 | | | | 9,575 | |
Depreciation and amortization | | | 35,626 | | | | 36,187 | |
Loss on disposal of discontinued operation | | | 1,948 | | | | — | |
Gain on sale of lease fleet units | | | (9,682 | ) | | | (11,781 | ) |
Loss (gain) on disposal of property, plant and equipment | | | 247 | | | | (130 | ) |
Deferred income taxes | | | 11,012 | | | | 18,107 | |
Tax benefit shortfall on equity award transactions | | | (837 | ) | | | (3 | ) |
Foreign currency transaction loss | | | 1 | | | | 5 | |
Changes in certain assets and liabilities, net of effect of business acquired: | | | | | | | | |
Receivables | | | (3,640 | ) | | | (5,078 | ) |
Inventories | | | (393 | ) | | | 1,352 | |
Deposits and prepaid expenses | | | 653 | | | | 537 | |
Other assets and intangibles | | | 10 | | | | (161 | ) |
Accounts payable | | | 337 | | | | (1,884 | ) |
Accrued liabilities | | | (1,164 | ) | | | (268 | ) |
| | | | | | | | |
Net cash provided by operating activities | | | 116,111 | | | | 90,949 | |
| | | | | | | | |
CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | |
Proceeds from sale of discontinued operation | | | 677 | | | | — | |
Cash paid for business acquired | | | — | | | | (3,563 | ) |
Additions to lease fleet | | | (28,826 | ) | | | (43,934 | ) |
Proceeds from sale of lease fleet units | | | 35,951 | | | | 29,358 | |
Additions to property, plant and equipment | | | (15,792 | ) | | | (12,741 | ) |
Proceeds from sale of property, plant, and equipment | | | 1,970 | | | | 1,497 | |
| | | | | | | | |
Net cash used in investing activities | | | (6,020 | ) | | | (29,383 | ) |
| | | | | | | | |
CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | |
Net (repayments) borrowings under lines of credit | | | (123,076 | ) | | | 97,242 | |
Redemption of 6.875% senior notes due 2015 | | | — | | | | (150,000 | ) |
Redemption premiums of 6.875% senior notes due 2015 | | | — | | | | (2,579 | ) |
Deferred financing costs | | | — | | | | (8,075 | ) |
Proceeds from issuance of notes payable | | | — | | | | 398 | |
Principal payments on notes payable | | | (310 | ) | | | (403 | ) |
Principal payments on capital lease obligations | | | (408 | ) | | | (947 | ) |
Issuance of common stock | | | 13,818 | | | | 3,645 | |
Purchase of treasury stock | | | (369 | ) | | | — | |
| | | | | | | | |
Net cash used in financing activities | | | (110,345 | ) | | | (60,719 | ) |
| | | | | | | | |
Effect of exchange rate changes on cash | | | (427 | ) | | | (1,770 | ) |
| | | | | | | | |
NET DECREASE IN CASH | | | (681 | ) | | | (923 | ) |
CASH AT BEGINNING OF PERIOD | | | 1,937 | | | | 2,860 | |
| | | | | | | | |
CASH AT END OF PERIOD | | $ | 1,256 | | | $ | 1,937 | |
| | | | | | | | |
Supplemental Disclosure of Cash Flow Information: | | | | | | | | |
Cash paid during the year for interest | | $ | 25,947 | | | $ | 35,145 | |
| | | | | | | | |
Cash paid during the year for income and franchise taxes | | $ | 1,114 | | | $ | 831 | |
| | | | | | | | |
Equipment acquired through capital lease and financing obligations | | $ | 8,547 | | | $ | 300 | |
| | | | | | | | |
| | | | |
| Mobile Mini, Inc. News Release | | | | Page 7 |
| February 14, 2014 | | | | |
Mobile Mini, Inc.
Non-GAAP Reconciliations
(in thousands)
(includes effects of rounding)
| | | | | | | | | | | | | | | | |
| | | Three Months Ended December 31, | | | Twelve Months Ended December 31, | |
| | | 2013 | | | 2012 | | | 2013 | | | 2012 | |
Reconciliation of EBITDA to net cash provided by operating activities: | | | | | | | | | | | | | | | | |
EBITDA | | $ | 36,953 | | | $ | 34,926 | | | $ | 102,398 | | | $ | 130,883 | |
Discontinued operation | | | (712 | ) | | | 23 | | | | (732 | ) | | | (11 | ) |
Interest paid | | | (10,174 | ) | | | (10,814 | ) | | | (25,947 | ) | | | 35,145 | ) |
Income and franchise taxes paid | | | (152 | ) | | | (109 | ) | | | (1,114 | ) | | | (831 | ) |
Share-based compensation expense | | | 3,945 | | | | 3,899 | | | | 14,714 | | | | 9,575 | |
Asset impairment (recovery) charge, net | | | (736 | ) | | | — | | | | 38,217 | | | | — | |
Loss on disposal of discontinued operation | | | 1,948 | | | | — | | | | 1,948 | | | | — | |
Gain on sale of lease fleet units | | | (1,984 | ) | | | (2,330 | ) | | | (9,682 | ) | | | (11,781 | ) |
Loss (gain) on disposal of property, plant and equipment | | | 303 | | | | 133 | | | | 247 | | | | (130 | ) |
Changes in certain assets and liabilities, net of effect of business acquired: | | | | | | | | | | | | | | | | |
Receivables | | | 2,529 | | | | 3,827 | | | | (1,480 | ) | | | (2,899 | ) |
Inventories | | | 2,004 | | | | 2,315 | | | | (393 | ) | | | 1,352 | |
Deposits and prepaid expenses | | | 634 | | | | (387 | ) | | | 653 | | | | 537 | |
Other assets and intangibles | | | (2 | ) | | | 103 | | | | 10 | | | | (161 | ) |
Accounts payable and accrued liabilities | | | (3,919 | ) | | | 999 | | | | (2,728 | ) | | | (440 | ) |
| | | | | | | | | | | | | | | | |
Net cash provided by operating activities | | $ | 30,637 | | | $ | 32,585 | | | $ | 116,111 | | | $ | 90,949 | |
| | | | | | | | | | | | | | | | |
Reconciliation of net income to EBITDA and adjusted EBITDA: | | | | | | | | | | | | | | | | |
Net income | | $ | 11,958 | | | $ | 11,258 | | | $ | 23,922 | | | $ | 34,178 | |
Loss from discontinued operation, net of tax | | | 1,134 | | | | 40 | | | | 1,302 | | | | 245 | |
Interest expense | | | 7,151 | | | | 7,719 | | | | 29,467 | | | | 37,268 | |
Provision for income taxes | | | 7,717 | | | | 6,873 | | | | 12,275 | | | | 18,509 | |
Depreciation and amortization | | | 8,993 | | | | 9,036 | | | | 35,432 | | | | 35,982 | |
Debt restructuring expense | | | — | | | | — | | | | — | | | | 2,812 | |
Deferred financing costs write-off | | | — | | | | — | | | | — | | | | 1,889 | |
| | | | | | | | | | | | | | | | |
EBITDA | | | 36,953 | | | | 34,926 | | | | 102,398 | | | | 130,883 | |
Share-based compensation expense | | | 3,933 | | | | 1,662 | | | | 13,956 | | | | 7,151 | |
Merger and restructuring expenses | | | 349 | | | | 5,533 | | | | 2,402 | | | | 7,123 | |
Acquisition and other expenses | | | 4 | | | | 151 | | | | 4 | | | | 290 | |
Asset impairment (recovery) charge, net | | | (784 | ) | | | — | | | | 38,705 | | | | — | |
| | | | | | | | | | | | | | | | |
Adjusted EBITDA | | $ | 40,455 | | | $ | 42,272 | | | $ | 157,465 | | | $ | 145,447 | |
| | | | | | | | | | | | | | | | |
Reconciliation of net cash provided by operating activities to free cash flow: | | | | | | | | | | | | | | | | |
Net cash provided by operating activities | | $ | 30,637 | | | $ | 32,585 | | | $ | 116,111 | | | $ | 90,949 | |
Additions to lease fleet | | | (5,215 | ) | | | (11,151 | ) | | | (28,826 | ) | | | (43,934 | ) |
Proceeds from sale of lease fleet units | | | 10,540 | | | | 5,959 | | | | 35,951 | | | | 29,358 | |
Additions to property, plant and equipment | | | (5,141 | ) | | | (1,570 | ) | | | (15,792 | ) | | | (12,741 | ) |
Proceeds from sale of property, plant and equipment | | | 957 | | | | 69 | | | | 1,970 | | | | 1,497 | |
| | | | | | | | | | | | | | | | |
Net capital expenditures, excluding acquisitions | | | 1,141 | | | | (6,693 | ) | | | (6,697 | ) | | | (25,820 | ) |
| | | | | | | | | | | | | | | | |
Free cash flow | | $ | 31,778 | | | $ | 25,892 | | | $ | 109,414 | | | $ | 65,129 | |
| | | | | | | | | | | | | | | | |
| | | | |
| Mobile Mini, Inc. News Release | | | | Page 8 |
| February 14, 2014 | | | | |
Mobile Mini, Inc. Non-GAAP Reconciliations
(in thousands except per share data)/(includes effects of rounding)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Reconciliation of Adjusted Measurements to Actuals
Three Months Ended December 31, 2013 | |
| | | As Adjusted (1) | | | Share-based
compensation
expense (2) | | | Merger and
restructuring
expenses (3) | | | Acquisition
expenses (4) | | | Asset
impairment
charge, net (5) | | | Loss from
discontinued
operation, net (6) | | | Actual | |
Revenues | | $ | 106,799 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 106,799 | |
EBITDA | | $ | 40,455 | | | $ | 3,933) | | | $ | (349) | | | $ | (4) | | | $ | 784 | | | $ | — | | | $ | 36,953 | |
EBITDA margin | | | 37.9 | % | | | (3.7) | % | | | (0.3) | % | | | — | | | | -(0.7) | % | | | — | | | | 34.6 | % |
Operating income | | $ | 27,529 | | | $ | — | | | $ | (349) | | | $ | (4) | | | $ | 784 | | | $ | — | | | $ | 27,960 | |
Operating income margin | | | 25.8 | % | | | — | | | | (0.3) | % | | | — | | | | -(0.7) | % | | | — | | | | 26.2 | % |
Pre tax income | | $ | 20,378 | | | $ | — | | | $ | (349) | | | $ | (4) | | | $ | 784 | | | $ | — | | | $ | 20,809 | |
Net income | | $ | 12,827 | | | $ | — | | | $ | (236) | | | $ | (3) | | | $ | 503 | | | $ | (1,134) | | | $ | 11,958 | |
Diluted earnings per share | | $ | 0.28 | | | $ | — | | | $ | (0.01) | | | $ | — | | | $ | 0.01 | | | $ | (0.02) | | | $ | 0.26 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Reconciliation of Adjusted Measurements to Actuals
Three Months Ended December 31, 2012 | |
| | | As Adjusted (1) | | | Share-based
compensation
expense (2) | | | Leasing, selling
and general
expenses (7) | | | Merger and
restructuring
expenses (3) | | | Loss from
discontinued
operation, net (6) | | | Actual | |
Revenues | | $ | 99,846 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 99,846 | |
EBITDA | | $ | 42,272 | | | $ | (1,662 | ) | | $ | (151 | ) | | $ | (5,533 | ) | | $ | — | | | $ | 34,926 | |
EBITDA margin | | | 42.3 | % | | | (1.7 | )% | | | (0.2 | )% | | | (5.5 | )% | | | — | | | | 35.0 | % |
Operating income | | $ | 31,574 | | | $ | — | | | $ | (151 | ) | | $ | (5,533 | ) | | $ | — | | | $ | 25,890 | |
Operating income margin | | | 31.6 | % | | | — | | | | (0.2 | )% | | | (5.5 | )% | | | — | | | | 25.9 | % |
Pre tax income | | $ | 23,855 | | | $ | — | | | $ | (151 | ) | | $ | (5,533 | ) | | $ | — | | | $ | 18,171 | |
Net income | | $ | 14,794 | | | $ | — | | | $ | (93 | ) | | $ | (3,403 | ) | | $ | (40 | ) | | $ | 11,258 | |
Diluted earnings per share | | $ | 0.33 | | | $ | — | | | $ | — | | | $ | (0.08 | ) | | $ | — | | | $ | 0.25 | |
| (1) | This column represents a non-GAAP presentation even though some individual line items presented, such as revenues, are identical under both GAAP and the adjusted presentations. |
| (2) | Represents non-cash share-based expense associated with the granting of equity instruments and is excluded in the adjusted presentation. |
| (3) | Merger and restructuring expenses represent costs relating primarily to the restructuring of our operations. Merger and restructuring expenses are excluded in the adjusted presentation. |
| (4) | Represents acquisition activity costs that are excluded in the adjusted presentation. |
| (5) | Represents the net sales in excess of fair value of certain assets that were written down and classified as held for sale and is excluded in the adjusted presentation. |
| (6) | Represents our Netherlands operation that was sold in December 2013 and reported as discontinued operation. The 2013 amount also includes a $1.2 million after-tax loss on the sale. |
| (7) | Represents the net estimated damages to our assets caused by natural disasters and is excluded in the adjusted presentation. |
| | | | |
| Mobile Mini, Inc. News Release | | | | Page 9 |
| February 14, 2014 | | | | |
Mobile Mini, Inc. Non-GAAP Reconciliations
(in thousands except per share data)/(includes effects of rounding)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Reconciliation of Adjusted Measurements to Actuals
Twelve Months Ended December 31, 2013 | |
| | | As
Adjusted (1) | | | Share-based
compensation
expense (2) | | | Merger
and restructuring
expenses (3) | | | Acquisition
expenses (4) | | | Asset
impairment
charge, net (5) | | | Income tax
benefit (6) | | | Loss from
Discontinued
operation, net (7) | | | Actual | |
Revenues | | $ | 406,486 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 406,486 | |
EBITDA | | $ | 157,465 | | | $ | (13,956 | ) | | $ | (2,402 | ) | | $ | (4 | ) | | $ | (38,705 | ) | | $ | — | | | $ | — | | | $ | 102,398 | |
EBITDA margin | | | 38.7 | % | | | (3.4 | )% | | | (0.6 | )% | | | — | | | | (9.5 | )% | | | — | | | | — | | | | 25.2 | % |
Operating income | | $ | 108,078 | | | $ | — | | | $ | (2,402 | ) | | $ | (4 | ) | | $ | (38,705 | ) | | $ | — | | | $ | — | | | $ | 66,967 | |
Operating income margin | | | 26.6 | % | | | — | | | | (0.6 | )% | | | — | | | | (9.5 | )% | | | — | | | | — | | | | 16.5 | % |
Pre tax income | | $ | 78,610 | | | $ | — | | | $ | (2,402 | ) | | $ | (4 | ) | | $ | (38,705 | ) | | $ | — | | | $ | — | | | $ | 37,499 | |
Net income | | $ | 49,906 | | | $ | — | | | $ | (1,525 | ) | | $ | (3 | ) | | $ | (25,015 | ) | | $ | 1,861 | | | $ | (1,302 | ) | | $ | 23,922 | |
Diluted earnings per share | | $ | 1.08 | | | $ | — | | | $ | (0.03 | ) | | $ | — | | | $ | (0.54 | ) | | $ | 0.04 | | | $ | (0.03 | ) | | $ | 0.52 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Reconciliation of Adjusted Measurements to Actuals
Twelve Months Ended December 31, 2012 | |
| | | As
Adjusted (1) | | | Share-based
compensation
expense (2) | | | Leasing,
selling and
general
expenses (8) | | | Merger and
restructuring
expenses (3) | | | Acquisition
expenses (4) | | | Debt
restructuring
expense (9) | | | Deferred
financing
costs
write-off (10) | | | Income
tax
benefit (6) | | | Loss from
discontinued
operation,
net (7) | | | Actual | |
Revenues | | $ | 379,896 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 379,896 | |
EBITDA | | $ | 145,447 | | | $ | (7,151 | ) | | $ | (151 | ) | | $ | (7,123 | ) | | $ | (139 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 130,883 | |
EBITDA margin | | | 38.3 | % | | | (1.9 | )% | | | — | | | | (1.9 | )% | | | — | | | | — | | | | — | | | | — | | | | — | | | | 34.5 | % |
Operating income | | $ | 102,317 | | | $ | — | | | $ | (151 | ) | | $ | (7,123 | ) | | $ | (139 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 94,904 | |
Operating income margin | | | 26.9 | % | | | — | | | | — | | | | (1.9 | )% | | | — | | | | — | | | | — | | | | — | | | | — | | | | 25.0 | % |
Pre tax income | | $ | 65,046 | | | $ | — | | | $ | (151 | ) | | $ | (7,123 | ) | | $ | (139 | ) | | $ | (2,812 | ) | | $ | (1,889 | ) | | $ | — | | | $ | — | | | $ | 52,932 | |
Net income | | $ | 40,774 | | | $ | — | | | $ | (93 | ) | | $ | (4,438 | ) | | $ | (85 | ) | | $ | (1,729 | ) | | $ | (1,162 | ) | | $ | 1,156 | | | $ | (245 | ) | | $ | 34,178 | |
Diluted earnings per share | | $ | 0.90 | | | $ | — | | | $ | — | | | $ | (0.10 | ) | | $ | — | | | $ | (0.04 | ) | | $ | (0.03 | ) | | $ | 0.03 | | | $ | — | | | $ | 0.76 | |
| (1) | This column represents a non-GAAP presentation even though some individual line items presented, such as revenues, are identical under both GAAP and the adjusted presentations. |
| (2) | Represents non-cash share-based expense associated with the granting of equity instruments and is excluded in the adjusted presentation. |
| (3) | Merger and restructuring expenses represent costs relating primarily to the restructuring of our operations including the severance related to our Chief Accounting Officer in 2013 and our Chief Executive Officer in 2012. Merger and restructuring expenses are excluded in the adjusted presentation. |
| (4) | Represents acquisition activity costs that are excluded in the adjusted presentation. |
| (5) | Represents the net impairment charge primarily for the write-down of certain assets to fair value and classified as held for sale and is excluded in the adjusted presentation. |
| (6) | Represents income tax benefits related to the statutory corporate income tax rate reductions in the United Kingdom that are excluded in the adjusted presentation. |
| (7) | Represents our Netherlands operation that was sold in December 2013 and reported as discontinued operation. The 2013 amount also includes a $1.2 million after-tax loss on the sale. |
| (8) | Represents the net estimated damages to our assets caused by natural disasters and acquisition activity costs that are excluded in the adjusted presentation. |
| (9) | Represents the redemption premiums and the unamortized original issuance discount on the redemption of $150.0 million of 6.875% Notes originally due in 2015. Debt restructuring expense is excluded in the adjusted presentation. |
| (10) | Represents the unamortized deferred financing costs associated with the $150.0 million of 6.875% Notes redeemed in August 2012 and a portion of deferred financing costs associated with our prior $850.0 million credit agreement, which was replaced with our new $900.0 million credit agreement in February 2012. Deferred financing costs write-off is excluded in the adjusted presentation. |
| | | | |
| Mobile Mini, Inc. News Release | | | | Page 10 |
| February 14, 2014 | | | | |
Mob
The sale of our Netherlands operation is reflected in the financial data herein as a discontinued operation for all periods presented and all prior period amounts have been recast to reflect this transaction.
This news release includes the financial measures “EBITDA”, “adjusted EBITDA”, “EBITDA margin”, “adjusted EBITDA margin”, “adjusted SG&A”, “adjusted net income”, “adjusted diluted earnings per share” and “free cash flow.” These measurements are deemed “non-GAAP financial measures” under rules of the SEC, including Regulation G. This non-GAAP financial information may be determined or calculated differently by other companies.
EBITDA is defined as net income before discontinued operation, net of taxes, interest expense, income taxes, depreciation and amortization, and if applicable, debt restructuring or extinguishment costs, including any write-off of deferred financing costs. We further adjust EBITDA to exclude non-cash share-based compensation expense and to ignore the effect of what we consider transactions or events not related to our core business to arrive at adjusted EBITDA. The GAAP financial measure that is most directly comparable to EBITDA is net cash provided by operating activities. EBITDA and adjusted EBITDA margins are calculated by dividing consolidated EBITDA and adjusted EBITDA by total revenues. The GAAP financial measure that is most directly comparable to EBITDA margin is operating margin, which represents operating income divided by revenues. We present adjusted EBITDA and adjusted EBITDA margin because we believe they provide useful information regarding our ability to meet our future debt payment requirements, capital expenditures and working capital requirements and they provide an overall evaluation of our financial condition. We include adjusted EBITDA in this earnings announcement to provide transparency to investors. Adjusted EBITDA has certain limitations as an analytical tool and should not be used as a substitute for net income, cash flows, or other consolidated income or cash flow data prepared in accordance with GAAP or as a measure of our profitability or our liquidity. EBITDA margin is presented along with the operating margin so as not to imply that more emphasis should be placed on it than the corresponding GAAP measure.
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 GAAP financial measure. 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 the Company’s existing businesses, debt service obligations, pay authorized quarterly dividends and strategic acquisitions.
Adjusted SG&A, adjusted net income and adjusted diluted earnings per share permit a comparative assessment of our SG&A expenses, net income and diluted earnings per share by excluding certain one-time expenses, and merger and restructuring expenses to make a more meaningful comparison of our operating performance.
Earlier in this release we provided a reconciliation of these adjusted measurements to actual results along with a reconciliation of EBITDA to net cash provided by operating activities, net income to EBITDA and adjusted EBITDA and net cash provided by operating activities to free cash flow.
