Mobile Mini (MINI) 8-K Mobile Mini Reports Q4 2018 Results and Announces Quarterly Dividend

Exhibit 99.1

FOR IMMEDIATE RELEASE

MOBILE MINI REPORTS Q4 2018 RESULTS AND ANNOUNCES QUARTERLY DIVIDEND

Phoenix, AZ – February 1, 2019 – 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 December 31, 2018.

Total revenues were $160.9 million and rental revenues were $152.0 million, as compared to $146.7 million and $138.5 million, respectively, for the same period last year. Rental revenues for the Storage Solutions and Tank & Pump Solutions businesses for the current quarter were $122.2 million and $29.9 million, respectively, compared to $112.8 million and $25.7 million, respectively, for the same period last year.

The Company realized net income of $14.2 million, or $0.32 per diluted share, in the fourth quarter of 2018. On an adjusted basis, fourth quarter net income was $23.7 million, or $0.53 per diluted share, as compared to adjusted net income of $18.1 million, or $0.41 per diluted share, for the fourth quarter of 2017. Adjusted EBITDA was $63.3 million and adjusted EBITDA margin was 39.3% for the fourth quarter of 2018.

Dividend

The Company’s Board of Directors declared a cash dividend of 27.5 cents per share, which will be paid on March 13, 2019 to shareholders of record as of February 27, 2019.

Fourth Quarter 2018 Highlights

● Continued strong rental revenue growth in Tank & Pump Solutions (“T&P”) with a 16.1% year-over-year increase.

● Delivered solid Storage Solutions (“SS”) rental revenue year-over-year growth of 8.3%, with record high seasonal business.

● Reachedall-time high T&P OEC fleet on rent and drove average OEC utilization to 76.0% for the quarter, up 300 bps compared to the prior-year quarter.

● Increased total SS average units on rent by 2.7% year-over-year, with average unit utilization of 85.2% during the quarter.

● Raised SS core (excluding seasonal) rental rates in North America by 3.4%.

● Achieved adjusted EBITDA growth of 13.7%, compared to the prior-year quarter and expanded adjusted EBITDA margin by 140 basis points to 39.3%.

● Generated robust net cash from operating activities of $43.9 million and free cash flow of $24.9 million.

● Decreased our leverage ratio to 4.2x at December 31, 2018 from 5.0x December 31, 2017, as a result of both reduced debt and increased adjusted EBITDA.

CEO Comments

Erik Olsson, Mobile Mini’s Chief Executive Officer, remarked, “Fourth quarter 2018 results are the culmination of an exceptional year for Mobile Mini. Consolidated rental revenues were up 9.8% year-over-year, despite increasingly challenging comparisons. Seasonal rentals in North America exceeded the record-breaking numbers from the prior-year, contributing to rental revenue growth of 8.3% year-over year for consolidated Storage Solutions. Tank & Pump Solutions delivered growth of 16.1% by capitalizing on the wide-spread momentum in our customerend-segments and our exceptional overall service. By leveraging our infrastructure and efficiencies, we converted this robusttop-line growth into increased profitability. Our adjusted EBITDA margin grew to 39.3% and we achieved $63.3 million in adjusted EBITDA, an increase of 13.7%, resulting in very strong free cash flow of $24.9 million for the fourth quarter of 2018.”

Mr. Olsson continued, “In 2018, we executed on our strategic plan and delivered outstanding results. Mobile Mini enters 2019 a financially stronger and more efficient company than ever before. We are committed to further differentiating Mobile Mini from our competitors by partnering with our customers to develop innovative solutions to their rental needs and striving to continuously improve processes throughout the Company. In North America, our Storage Solutions pending orders are significantly up compared to a year ago and our Tank & Pump business is positioned to capitalize on the strong demand from itsend-markets. In the United Kingdom, where Brexit is causing some uncertainty in the general economy, our business has remained stable. Overall, our pipeline is healthy across all segments and economic indicators are solid. For 2019, we expect continued margin expansion as well as meaningfulde-leveraging and we expect to exceed our Evergreen model for rental revenue growth.”

Conference Call

Mobile Mini will host a conference call today, Friday, February 1 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 will be posted atwww.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 195,600 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 12,600 units. Mobile Mini’s network is comprised of 154 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.

2

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 decrease our leverage ratio, 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.

CONTACT:	-OR-	INVESTOR RELATIONS COUNSEL:
Van Welch, Executive VP &		The Equity Group Inc.
Chief Financial Officer		Fred Buonocore (212)836-9607
Mobile Mini, Inc.		Kevin Towle (212)836-9620
(602)308-3879 www.mobilemini.com

(See accompanying tables)

3

Mobile Mini, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

(in thousands, except percentages and per share data)

	Three Months Ended December 31, 2018									Three Months Ended December 31, 2017
	Actual			Adjustments			Adjusted (1)			Actual			Adjustments			Adjusted (2)
Revenues:
Rental	$	152,048		$	—		$	152,048		$	138,537		$	—		$	138,537
Sales		8,654			—			8,654			7,623			—			7,623
Other		167			—			167			536			—			536
Total revenues		160,869			—			160,869			146,696			—			146,696
Costs and expenses:
Rental, selling and general expenses		95,090			—			95,090			87,484			—			87,484
Cost of sales		5,512			—			5,512			4,962			—			4,962
Restructuring expenses		700			(700	)		—			824			(824	)		—
Asset impairment charge and loss on divestiture, net		3,862			(3,862	)		—			—			—			—
Depreciation and amortization		16,794			—			16,794			16,431			—			16,431
Total costs and expenses		121,958			(4,562	)		117,396			109,701			(824	)		108,877
Income from operations		38,911			4,562			43,473			36,995			824			37,819
Other income (expense):
Interest income		—			—			—			5			—			5
Interest expense		(10,725	)		—			(10,725	)		(9,316	)		—			(9,316	)
Foreign currency exchange		(5	)		—			(5	)		4			—			4
Income before income tax provision (benefit)		28,181			4,562			32,743			27,688			824			28,512
Income tax provision (benefit)		13,933			(4,863	)		9,070			(64,383	)		74,827			10,444
Net income	$	14,248		$	9,425		$	23,673		$	92,071		$	(74,003	)	$	18,068
EBITDA/Adjusted EBITDA	$	55,700					$	63,263		$	53,435					$	55,624
EBITDA/Adjusted EBITDA as a percentage of total revenues		34.6	%					39.3	%		36.4	%					37.9	%
Earnings per share:
Basic	$	0.32					$	0.53		$	2.09					$	0.41
Diluted		0.32						0.53			2.07						0.41
Weighted average number of common and common share equivalents outstanding:
Basic		44,353						44,353			44,128						44,128
Diluted		44,885						44,885			44,444						44,444

(1) Adjusted column for the three months ended December 31, 2018 excludes certain transactions that management believes are not indicative of our business. Adjusted figures are anon-GAAP presentation. See thenon-GAAP reconciliations herein and the additional information regardingnon-GAAP financial information following in this earnings release. The adjustments for the three-month period ended December 31, 2018 include the following:

• Exclusion of costs of $0.7 million related to the restructuring of our business operations, along with the related tax effects.

• Exclusion of an asset impairment charge and loss on divestiture, net of proceeds, of $3.9 million related to assets that the Company placed as held for sale during the quarter, along with the related tax effects.

• Exclusion of $5.8 million in income tax provision resulting from anout-of-period adjustment recorded in the fourth quarter of 2018 to correct deferred tax assets that had been established in previous years.

(2) Adjusted column for the three months ended December 31, 2017 excludes certain transactions that management believes are not indicative of our business. Adjusted figures are anon-GAAP presentation. See thenon-GAAP reconciliations herein and the additional information regardingnon-GAAP financial information following in this earnings release. The adjustments for the three-month period ended December 31, 2017 include the following:

• Exclusion of costs of $0.8 million related to the restructuring of our business operations, along with the related tax effects.

• Exclusion of $74.5 million in income tax benefit resulting from the Tax Cuts and Jobs Act (the “Tax Act”).

4

Mobile Mini, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

(in thousands, except percentages and per share data)

	Twelve Months Ended December 31, 2018									Twelve Months Ended December 31, 2017
	Actual			Adjustments			Adjusted (1)			Actual			Adjustments			Adjusted (2)
Revenues:
Rental	$	558,197		$	—		$	558,197		$	498,825		$	—		$	498,825
Sales		34,354			—			34,354			32,440			—			32,440
Other		678			—			678			2,284			—			2,284
Total revenues		593,229			—			593,229			533,549			—			533,549
Costs and expenses:
Rental, selling and general expenses		364,123			—			364,123			336,438			(2,623	)		333,815
Cost of sales		22,437			—			22,437			21,001			—			21,001
Restructuring expenses		2,006			(2,006	)		—			2,886			(2,886	)		—
Asset impairment charge and loss on divestiture, net		102,140			(102,140	)		—			—			—			—
Depreciation and amortization		67,000			—			67,000			63,372			—			63,372
Total costs and expenses		557,706			(104,146	)		453,560			423,697			(5,509	)		418,188
Income from operations		35,523			104,146			139,669			109,852			5,509			115,361
Other income (expense):
Interest income		6			—			6			25			—			25
Interest expense		(40,904	)		—			(40,904	)		(35,728	)		—			(35,728	)
Foreign currency exchange		64			—			64			(25	)		—			(25	)
(Loss) income before income tax provision (benefit)		(5,311	)		104,146			98,835			74,124			5,509			79,633
Income tax provision (benefit)		2,751			22,475			25,226			(48,104	)		76,604			28,500
Net (loss) income	$	(8,062	)	$	81,671		$	73,609		$	122,228		$	(71,095	)	$	51,133
EBITDA/Adjusted EBITDA	$	102,593					$	217,243		$	173,224					$	184,803
EBITDA/Adjusted EBITDA as a percentage of total revenues		17.3	%					36.6	%		32.5	%					34.6	%
(Loss) earnings per share:
Basic	$	(0.18	)				$	1.66		$	2.77					$	1.16
Diluted		(0.18	)					1.64			2.76						1.16
Weighted average number of common and common share equivalents outstanding:
Basic		44,295						44,295			44,055						44,055
Diluted		44,295						44,980			44,254						44,254

(1) Adjusted column for the twelve months ended December 31, 2018 excludes certain transactions that management believes are not indicative of our business. Adjusted figures are anon-GAAP presentation. See thenon-GAAP reconciliations herein and the additional information regardingnon-GAAP financial information following in this earnings release. The adjustments for the twelve-month period ended December 31, 2018 include the following:

• Exclusion of costs of $2.0 million related to the restructuring of our business operations, along with the related tax effects.

• Exclusion of an asset impairment charge and loss on divestiture, net of proceeds, of $102.1 million related to assets that the Company placed as held for sale during the period, along with the related tax effects.

• Exclusion of $2.6 million in income tax benefit resulting from the reversal in the period of a provisional tax expense related to the repatriation of foreign earnings for the impact of the U.S. federal tax reform enacted in the fourth quarter of 2017.

• Exclusion of $5.8 million in income tax provision resulting from anout-of-period adjustment recorded in the fourth quarter of 2018 to correct deferred tax assets that had been established in previous years.

(2) Adjusted column for the twelve months ended December 31, 2017 excludes certain transactions that management believes are not indicative of our business. Adjusted figures are anon-GAAP presentation. See thenon-GAAP reconciliations herein and the additional information regardingnon-GAAP financial information following in this earnings release. The adjustments for the twelve-month period ended December 31, 2017 include the following:

• Reduction of $0.1 million in rental, selling and general expenses for acquisition-related expenses, along with the related tax effects.

• Reduction of $2.5 million in rental, selling and general expenses to exclude costs related to severance and transition in conjunction with the departure of executives, along with the related tax effects.

• Exclusion of $2.9 million in costs related to the restructuring of our business operations, along with the related tax effects.

• Exclusion of $74.5 million in income tax benefit resulting from the Tax Act.

5

Mobile Mini, Inc.

Operating Data

(Unaudited)

	2018		2017
As of December 31:
Stand-alone Storage Solutions locations		117		121
Stand-alone Tank & Pump Solutions locations		20		17
Combined Storage Solutions and Tank & Pump Solutions locations		17		16
Storage Solutions rental fleet units		195,600		215,000
Tank & Pump Solutions rental fleet units		12,600		12,100
Average utilization—Three months ended December 31:
Storage Solutions—utilization based on number of units		85.2%		75.7	%
Tank & Pump Solutions—utilization based on original equipment cost		76.0%		73.0	%
Average utilization—Twelve months ended December 31:
Storage Solutions—utilization based on number of units		75.9%		71.5	%
Tank & Pump Solutions—utilization based on original equipment cost		74.0%		66.5	%

6

Mobile Mini, Inc.

Business Segment Information—Adjusted (1)

(Unaudited)

(in thousands, except percentages)

	Three Months Ended December 31, 2018									Three Months Ended December 31, 2017
	Storage Solutions			Tank & Pump Solutions			Total			Storage Solutions			Tank & Pump Solutions			Total
Revenues:
Rental	$	122,171		$	29,877		$	152,048		$	112,810		$	25,727		$	138,537
Sales		7,247			1,407			8,654			6,226			1,397			7,623
Other		129			38			167			457			79			536
Total revenues		129,547			31,322			160,869			119,493			27,203			146,696
Costs and expenses:
Rental, selling and general expenses		75,400			19,690			95,090			69,462			18,022			87,484
Cost of sales		4,744			768			5,512			4,122			840			4,962
Depreciation and amortization		10,084			6,710			16,794			10,296			6,135			16,431
Total costs and expenses		90,228			27,168			117,396			83,880			24,997			108,877
Income from operations	$	39,319		$	4,154		$	43,473		$	35,613		$	2,206		$	37,819
Adjusted EBITDA	$	52,291		$	10,972		$	63,263		$	47,227		$	8,397		$	55,624
Adjusted EBITDA Margin		40.4	%		35.0	%		39.3	%		39.5	%		30.9	%		37.9	%
	Twelve Months Ended December 31, 2018									Twelve Months Ended December 31, 2017
	Storage Solutions			Tank & Pump Solutions			Total			Storage Solutions			Tank & Pump Solutions			Total
Revenues:
Rental	$	447,464		$	110,733		$	558,197		$	406,590		$	92,235		$	498,825
Sales		29,032			5,322			34,354			26,989			5,451			32,440
Other		528			150			678			1,875			409			2,284
Total revenues		477,024			116,205			593,229			435,454			98,095			533,549
Costs and expenses:
Rental, selling and general expenses		287,648			76,475			364,123			265,390			68,425			333,815
Cost of sales		19,439			2,998			22,437			17,930			3,071			21,001
Depreciation and amortization		41,482			25,518			67,000			38,792			24,580			63,372
Total costs and expenses		348,569			104,991			453,560			322,112			96,076			418,188
Income from operations	$	128,455		$	11,214		$	139,669		$	113,342		$	2,019		$	115,361
Adjusted EBITDA	$	180,089		$	37,154		$	217,243		$	157,960		$	26,843		$	184,803
Adjusted EBITDA Margin		37.8	%		32.0	%		36.6	%		36.3	%		27.4	%		34.6	%

(1) These tables present results by major business segment adjusted to exclude certain transactions that management believes are not indicative of our business. See additional information regardingnon-GAAP financial information following in this earnings release.

7

Mobile Mini, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

	December 31, 2018			December 31, 2017
	(unaudited)			(audited)
ASSETS
Cash and cash equivalents	$	5,605		$	13,451
Receivables, net		130,233			111,562
Inventories		11,725			15,671
Rental fleet, net		929,090			989,154
Property, plant and equipment, net		154,254			157,304
Other assets		13,398			15,334
Intangibles, net		55,542			62,024
Goodwill		705,217			708,907
Total assets	$	2,005,064		$	2,073,407
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Accounts payable	$	33,177		$	26,955
Accrued liabilities		88,136			78,084
Lines of credit		593,495			634,285
Obligations under capital leases		63,359			52,791
Senior notes, net		246,489			245,850
Deferred income taxes		170,139			173,754
Total liabilities		1,194,795			1,211,719
Stockholders’ equity:
Common stock		500			497
Additionalpaid-in capital		619,850			605,369
Retained earnings		410,641			463,322
Accumulated other comprehensive loss		(72,861	)		(60,334	)
Treasury stock		(147,861	)		(147,166	)
Total stockholders’ equity		810,269			861,688
Total liabilities and stockholders’ equity	$	2,005,064		$	2,073,407

8

Mobile Mini, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(in thousands)

	Twelve Months Ended December 31,
	2018			2017
Cash flows from operating activities:
Net (loss) income	$	(8,062	)	$	122,228
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Asset impairment charge and loss on divestiture, net		102,140			—
Provision for doubtful accounts		2,412			5,037
Amortization of deferred financing costs		2,060			2,060
Amortization of long-term liabilities		145			130
Share-based compensation expense		10,867			7,373
Depreciation and amortization		67,000			63,372
Gain on sale of rental fleet		(6,055	)		(5,657	)
Loss on disposal of property, plant and equipment		600			517
Deferred income taxes		(2,523	)		(49,980	)
Foreign currency exchange		(64	)		25
Changes in certain assets and liabilities, net of effect of businesses acquired		(8,422	)		(9,459	)
Net cash provided by operating activities		160,098			135,646
Cash flows from investing activities:
Proceeds from sale of assets held for sale		10,153			—
Additions to rental fleet, excluding acquisitions		(85,961	)		(63,688	)
Proceeds from sale of rental fleet		14,993			12,953
Additions to property, plant and equipment, excluding acquisitions		(16,931	)		(20,122	)
Proceeds from sale of property, plant and equipment		683			851
Net cash used in investing activities		(77,063	)		(70,006	)
Cash flows from financing activities:
Net repayments under lines of credit		(40,790	)		(6,875	)
Deferred financing costs		—			(12	)
Principal payments on capital lease obligations		(9,746	)		(7,418	)
Issuance of common stock		3,617			5,800
Dividend payments		(44,530	)		(40,171	)
Purchase of treasury stock		(695	)		(8,367	)
Net cash used in financing activities		(92,144	)		(57,043	)
Effect of exchange rate changes on cash		1,263			717
Net change in cash		(7,846	)		9,314
Cash and cash equivalents at beginning of period		13,451			4,137
Cash and cash equivalents at end of period	$	5,605		$	13,451
Equipment and other acquired through capital lease obligations	$	20,314		$	9,501
Capital expenditures accrued or payable		10,752			7,270

9

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 certainnon-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 arenon-GAAP financial measures as defined by SEC rules. Thisnon-GAAP financial information may be determined or calculated differently by other companies. Reconciliations of thesenon-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 December 31,						Twelve Months Ended December 31,
	2018			2017			2018			2017
Net income (loss)	$	14,248		$	92,071		$	(8,062	)	$	122,228
Interest expense		10,725			9,316			40,904			35,728
Income tax provision (benefit)		13,933			(64,383	)		2,751			(48,104	)
Depreciation and amortization		16,794			16,431			67,000			63,372
EBITDA		55,700			53,435			102,593			173,224
Share-based compensation expense		3,001			1,365			10,504			6,070
Restructuring expenses		700			824			2,006			2,886
Asset impairment charge and loss on divestiture, net		3,862			—			102,140			—
Acquisition-related expenses		—			—			—			123
Other		—			—			—			2,500
Adjusted EBITDA	$	63,263		$	55,624		$	217,243		$	184,803
	Three Months Ended December 31,						Twelve Months Ended December 31,
	2018			2017			2018			2017
Net cash provided by operating activities	$	43,878		$	39,814		$	160,098		$	135,646
Interest paid		6,226			4,650			37,979			35,029
Income and franchise taxes paid		1,666			1,294			4,012			2,607
Share-based compensation expense, including restructuring expense		(3,001	)		(1,483	)		(10,867	)		(7,373	)
Asset impairment charge and loss on divestiture, net		(3,862	)		—			(102,140	)		—
Gain on sale of rental fleet		1,532			1,384			6,055			5,657
Loss on disposal of property, plant and equipment		(52	)		(45	)		(600	)		(517	)
Changes in certain assets and liabilities, net of effect of businesses acquired		9,313			7,821			8,056			2,175
EBITDA	$	55,700		$	53,435		$	102,593		$	173,224

10

Mobile Mini, Inc.

Free Cash Flow GAAP Reconciliation

(Unaudited)

(in thousands)

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2018			2017			2018			2017
Net cash provided by operating activities	$	43,878		$	39,814		$	160,098		$	135,646
Additions to rental fleet, excluding acquisitions		(20,341	)		(17,743	)		(85,961	)		(63,688	)
Proceeds from sale of rental fleet		3,546			3,351			14,993			12,953
Additions to property, plant and equipment, excluding acquisitions		(2,296	)		(7,306	)		(16,931	)		(20,122	)
Proceeds from sale of property, plant and equipment		80			71			683			851
Net capital expenditures, excluding acquisitions		(19,011	)		(21,627	)		(87,216	)		(70,006	)
Free cash flow	$	24,867		$	18,187		$	72,882		$	65,640

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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 thisnon-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 anywrite-off of deferred financing costs. Adjusted EBITDA further excludes certainnon-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 anon-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.

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