Mobile Mini (MINI) 8-K Mobile Mini Reports Q3 2019 Results and Announces Quarterly Dividend

Exhibit 99.1

FOR IMMEDIATE RELEASE

MOBILE MINI REPORTS Q3 2019 RESULTS AND ANNOUNCES QUARTERLY DIVIDEND

Phoenix, AZ – October 31, 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 September 30, 2019.

Total revenues were $153.5 million and rental revenues were $145.5 million for the third quarter of 2019, as compared to $149.7 million and $140.9 million, respectively, for the same period last year. Rental revenues for the Storage Solutions and Tank & Pump Solutions businesses for the current quarter were $116.8 million and $28.7 million, respectively, compared to $112.6 million and $28.3 million for the same period last year.

The Company realized net income of $22.6 million, or $0.51 per diluted share, in the third quarter of 2019. On an adjusted basis, third quarter net income was $24.0 million, or $0.54 per diluted share, as compared to adjusted net income of $19.1 million, or $0.42 per diluted share, for the third quarter of 2018. Adjusted EBITDA was $61.7 million and adjusted EBITDA margin was 40.2% for the third 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 November 27, 2019 to shareholders of record as of November 13, 2019.

Third Quarter 2019 Highlights

• Drove healthy year-over-year growth of 6.3% in North American Storage Solutions rental revenue.

• Grew adjusted EBITDA 11.3%, year-over-year, and expanded adjusted EBITDA margin by 320 basis points to 40.2%, comprised of a 370 basis point year-over-year increase for North American Storage Solutions and a 320 basis point increase for Tank & Pump Solutions.

• Raised North American Storage Solutions core (excluding seasonal) rates 4.2% year-over-year, with rates on newly placed units up 5.4%.

• Achieved strong average OEC utilization rate of 77.5% for Storage Solutions.

• Generated robust cash from operating activities of $51.3 million for the quarter and $151.9 millionyear-to-date, resulting in free cash flow of $37.1 million for the quarter and $92.0 millionyear-to-date, an increase of $44.0 million from the prioryear-to-date period.

• Further increased return on capital employed to 9.8% as of September 30, 2019, exceeding our weighted average cost of capital and a 170 basis point improvement from September 30, 2018.

• Repurchased $18.4 million of shares under our authorized share repurchase program, $28.4 millionyear-to-date, while maintaining a leverage ratio of 3.8x as of September 30, 2019 compared to 4.2x as of December 31, 2018.

• Completed onetuck-in acquisition in Tulsa, Oklahoma of a highly-utilized container provider.

CEO Comments

Kelly Williams, Mobile Mini’s President and Chief Executive Officer, remarked, “I am very pleased with the performance of Mobile Mini in the third quarter of 2019. Throughout the company, the processes we have implemented to drive efficiencies, combined with higher rental revenues, drove a $6.2 million, or 11.3%, increase in consolidated adjusted EBITDA, with an adjusted EBITDA margin in excess of our 40% Evergreen target, a notable achievement. The strong increase in profitability reflectstop-line growth and margin expansion in both our North American segments. North American Storage Solutions rental revenues were up compared to the prior-year quarter by a healthy 6.3%, driven primarily by increased rates as well as favorable mix. Revenues in our Tank & Pump Solutions downstream business continued to grow year-over-year, despite a difficult comparison to a very strong prior-year quarter. The downstream market is now settling into more normalized activity.”

Mr. Williams continued, “Over the past several years we have transformed Mobile Mini into a significantly more efficient, scalable organization. The transformation includes substantial development of our technology capabilities and enhancements throughout our supply chain, including asset management. We are now better positioned than at any time in our Company’s history to drive profitable growth and generate shareholder value through the highly effective execution of our business strategy and the optimal deployment of capital. During the nine months ended September 30, 2019 we generated $92 million of free cash flow. This robust cash flow enables us to reinvest in the business, reduce our leverage ratio and return capital to our shareholders through dividends and opportunistic stock repurchases. In addition to organic growth in existing locations, we plan to drive multi-year growth for Mobile Mini both through acquisitions in our Storage Solutions business and greenfield expansion into attractive new geographic markets for both business segments. Importantly, we expect to continue to grow adjusted EBITDA and generate very strong free cash flow for the remainder of 2019 and into 2020.”

Conference Call

Mobile Mini will host a conference call later today, October 31^st at 5 pm ET to review these results. To listen to the call live, dial (201)493-6739 and ask for the Mobile Mini Conference Call or go to www.mobilemini.com and click on the Investor Relations 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 199,100 storage solutions containers and office units and a leading provider of tank and pump solutions in the U.S., with a rental fleet of approximately 12,700 units. Mobile Mini’s network is comprised of 155 locations in the U.S., U.K., and Canada. Mobile Mini is included on the Russell 2000^® and 3000^® Indexes and the S&P Small Cap Index.

2

Forward-Looking Statements

This news release contains forward-looking statements, including, but not limited to, our ability to grow our business with existing and new customers, as well as our ability to drive growth organically, through acquisitions and greenfield expansion as well as growing adjusted EBITDA and generate very strong free cash flow, 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.		Mike Gaudreau (212)836-9620
(602)308-3879
Emily Tadano, Director of Treasury & Investor Relations (602)845-4005
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 September 30, 2019									Three Months Ended September 30, 2018
	Actual			Adjustments			Adjusted (1)			Actual			Adjustments			Adjusted (2)
Revenues:
Rental	$	145,519		$	—		$	145,519		$	140,924		$	—		$	140,924
Sales		7,887			—			7,887			8,716			—			8,716
Other		111			—			111			67			—			67
Total revenues		153,517			—			153,517			149,707			—			149,707
Costs and expenses:
Rental, selling and general expenses		91,399			(1,898	)		89,501			90,764			—			90,764
Cost of sales		4,838			—			4,838			5,770			—			5,770
Asset impairment charge and loss on divestiture, net		—			—			—			98,278			(98,278	)		—
Depreciation and amortization		17,490			—			17,490			16,191			—			16,191
Total costs and expenses		113,727			(1,898	)		111,829			211,003			(98,278	)		112,725
Income (loss) from operations		39,790			1,898			41,688			(61,296	)		98,278			36,982
Other income (expense):
Interest income		12			—			12			—			—			—
Interest expense		(10,393	)		—			(10,393	)		(10,487	)		—			(10,487	)
Foreign currency exchange		(13	)		—			(13	)		24			—			24
Income (loss) before income tax provision (benefit)		29,396			1,898			31,294			(71,759	)		98,278			26,519
Income tax provision (benefit)		6,821			476			7,297			(19,594	)		27,010			7,416
Net income (loss)	$	22,575		$	1,422		$	23,997		$	(52,165	)	$	71,268		$	19,103
EBITDA/Adjusted EBITDA	$	57,279					$	61,674		$	(45,081	)				$	55,427
EBITDA/Adjusted EBITDA as a percentage of total revenues		37.3	%					40.2	%		-30.1	%					37.0	%
Earnings (loss) per share:
Basic	$	0.51					$	0.54		$	(1.18	)				$	0.43
Diluted		0.51						0.54			(1.18	)					0.42
Weighted average number of common and common share equivalents outstanding:
Basic		44,072						44,072			44,323						44,323
Diluted		44,316						44,316			44,323						45,098

(1) Adjusted column for the three-month period ended September 30, 2019 reduces rental, selling and general expenses to exclude expenses of $1.9 million related to actual and potential acquisitions, along with the related tax effect 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.

(2) Adjusted column for the three-month period ended September 30, 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 September 30, 2018 include the following, along with the related tax effects:

• Exclusion of an asset impairment charge and loss on divestiture, net of proceeds of $98.3 million related to assets that the Company placed as held for sale during the quarter.

• Exclusion of $2.6 million in income tax benefit resulting from the reversal in the quarter 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.

4

Mobile Mini, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

(in thousands, except percentages and per share data)

	Nine Months Ended September 30, 2019									Nine Months Ended September 30, 2018
	Actual			Adjustments			Adjusted (1)			Actual			Adjustments			Adjusted (2)
Revenues:
Rental	$	429,597		$	—		$	429,597		$	406,149		$	—		$	406,149
Sales		23,245			—			23,245			25,700			—			25,700
Other		517			—			517			511			—			511
Total revenues		453,359			—			453,359			432,360			—			432,360
Costs and expenses:
Rental, selling and general expenses		279,368			(6,230	)		273,138			269,033			—			269,033
Cost of sales		14,484			—			14,484			16,925			—			16,925
Restructuring expenses		—			—			—			1,306			(1,306	)		—
Asset impairment charge and loss on divestiture, net		—			—			—			98,278			(98,278	)		—
Depreciation and amortization		52,960			—			52,960			50,206			—			50,206
Total costs and expenses		346,812			(6,230	)		340,582			435,748			(99,584	)		336,164
Income (loss) from operations		106,547			6,230			112,777			(3,388	)		99,584			96,196
Other income (expense):
Interest income		12			—			12			6			—			6
Interest expense		(31,745	)		—			(31,745	)		(30,179	)		—			(30,179	)
Deferred financing costswrite-off		(123	)		123			—			—			—			—
Foreign currency exchange		(179	)		—			(179	)		69			—			69
Income (loss) before income tax provision (benefit)		74,512			6,353			80,865			(33,492	)		99,584			66,092
Income tax provision (benefit)		19,794			693			20,487			(11,182	)		27,338			16,156
Net income (loss)	$	54,718		$	5,660		$	60,378		$	(22,310	)	$	72,246		$	49,936
EBITDA/Adjusted EBITDA	$	159,340					$	174,811		$	46,893					$	153,980
EBITDA/Adjusted EBITDA as a percentage of total revenues		35.1	%					38.6	%		10.8	%					35.6	%
Earnings (loss) per share:
Basic	$	1.23					$	1.36		$	(0.50	)				$	1.13
Diluted		1.23						1.35			(0.50	)					1.11
Weighted average number of common and common share equivalents outstanding:
Basic		44,337						44,337			44,275						44,275
Diluted		44,646						44,646			44,275						45,011

(1) Adjusted column for the nine-month period ended September 30, 2019 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 nine-month period ended September 30, 2019 include the following, along with the related tax effects:

• Reduction of rental, selling and general expenses to exclude $3.6 million ofnon-cash share-based compensation related to transition agreements for our Chief Executive Officer who retired as an employee of the Company and assumed the position of Chairman of the Board.

• Reduction of rental, selling and general expenses to exclude $2.6 million of expenses related to actual and potential acquisitions, along with the related tax effect.

• Exclusion of $0.1 million of deferred financing costs that were written off in conjunction with the amendment of our lines of credit.

(2) Adjusted column for the nine-month period ended September 30, 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 nine-month period ended September 30, 2018 include the following, along with the related tax effects:

• Exclusion of $1.3 million related to the restructuring of our business operations.

• Exclusion of an asset impairment charge and loss on divestiture, net of proceeds of $98.3 million related to assets that the Company placed as held for sale during the period.

• 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.

5

Mobile Mini, Inc.

Operating Data

(Unaudited)

	2019			2018
As of September 30:
Stand-alone Storage Solutions locations		118			119
Stand-alone Tank & Pump Solutions locations		20			21
Combined Storage Solutions and Tank & Pump Solutions locations		17			17
Storage Solutions rental fleet units		199,100			194,300
Tank & Pump Solutions rental fleet units		12,700			12,600
Average utilization based on original equipment cost
Three months ended September 30:
Storage Solutions		77.5	%		76.9	%
Tank & Pump Solutions		68.3	%		72.2	%
Nine months ended September 30:
Storage Solutions		77.0	%		71.5	%
Tank & Pump Solutions		71.9	%		73.3	%

6

Mobile Mini, Inc.

Business Segment Information - Adjusted (1)

(Unaudited)

(in thousands, except percentages)

	Three Months Ended September 30, 2019									Three Months Ended September 30, 2018
	Storage Solutions			Tank & Pump Solutions			Total			Storage Solutions			Tank & Pump Solutions			Total
Revenues:
Rental	$	116,820		$	28,699		$	145,519		$	112,639		$	28,285		$	140,924
Sales		6,439			1,448			7,887			7,696			1,020			8,716
Other		75			36			111			40			27			67
Total revenues		123,334			30,183			153,517			120,375			29,332			149,707
Costs and expenses:
Rental, selling and general expenses		70,455			19,046			89,501			71,121			19,643			90,764
Cost of sales		4,048			790			4,838			5,226			544			5,770
Depreciation and amortization		10,576			6,914			17,490			9,758			6,433			16,191
Total costs and expenses		85,079			26,750			111,829			86,105			26,620			112,725
Income from operations	$	38,255		$	3,433		$	41,688		$	34,270		$	2,712		$	36,982
Adjusted EBITDA	$	51,190		$	10,484		$	61,674		$	46,174		$	9,253		$	55,427
Adjusted EBITDA Margin		41.5	%		34.7	%		40.2	%		38.4	%		31.5	%		37.0	%
	Nine Months Ended September 30, 2019									Nine Months Ended September 30, 2018
	Storage Solutions			Tank & Pump Solutions			Total			Storage Solutions			Tank & Pump Solutions			Total
Revenues:
Rental	$	339,930		$	89,667		$	429,597		$	325,293		$	80,856		$	406,149
Sales		18,987			4,258			23,245			21,785			3,915			25,700
Other		363			154			517			399			112			511
Total revenues		359,280			94,079			453,359			347,477			84,883			432,360
Costs and expenses:
Rental, selling and general expenses		213,806			59,332			273,138			212,248			56,785			269,033
Cost of sales		12,134			2,350			14,484			14,695			2,230			16,925
Depreciation and amortization		32,237			20,723			52,960			31,398			18,808			50,206
Total costs and expenses		258,177			82,405			340,582			258,341			77,823			336,164
Income from operations	$	101,103		$	11,674		$	112,777		$	89,136		$	7,060		$	96,196
Adjusted EBITDA	$	141,887		$	32,924		$	174,811		$	127,798		$	26,182		$	153,980
Adjusted EBITDA Margin		39.5	%		35.0	%		38.6	%		36.8	%		30.8	%		35.6	%

(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)

	September 30,			December 31,
	2019			2018
	(unaudited)			(audited)
ASSETS
Cash and cash equivalents	$	7,295		$	5,605
Receivables, net		106,847			130,233
Inventories		9,835			11,725
Rental fleet, net		953,331			929,090
Property, plant and equipment, net		150,479			154,254
Operating lease assets		95,489			—
Other assets		12,809			13,398
Intangibles, net		51,333			55,542
Goodwill		705,769			705,217
Total assets	$	2,093,187		$	2,005,064
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Accounts payable	$	30,167		$	33,177
Accrued liabilities		74,331			88,136
Operating lease liabilities		97,283			—
Lines of credit		584,000			593,495
Obligations under finance leases		67,648			63,359
Senior notes, net		246,967			246,489
Deferred income taxes		186,116			170,139
Total liabilities		1,286,512			1,194,795
Stockholders’ equity:
Common stock		503			500
Additionalpaid-in capital		634,994			619,850
Retained earnings		428,398			410,641
Accumulated other comprehensive loss		(79,814	)		(72,861	)
Treasury stock		(177,406	)		(147,861	)
Total stockholders’ equity		806,675			810,269
Total liabilities and stockholders’ equity	$	2,093,187		$	2,005,064

8

Mobile Mini, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(in thousands)

	Nine Months Ended
	September 30,
	2019			2018
Cash flows from operating activities:
Net income (loss)	$	54,718		$	(22,310	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Deferred financing costswrite-off		123			—
Asset impairment charge and loss on divestiture, net		—			98,278
Provision for doubtful accounts		4,235			1,980
Amortization of deferred financing costs		1,383			1,545
Amortization of long-term liabilities		13			109
Share-based compensation expense		12,834			7,866
Depreciation and amortization		52,960			50,206
Gain on sale of rental fleet		(4,610	)		(4,523	)
Loss on disposal of property, plant and equipment		46			548
Deferred income taxes		15,855			(12,891	)
Foreign currency exchange		179			(69	)
Changes in certain assets and liabilities, net of effect of businesses acquired		14,163			(4,519	)
Net cash provided by operating activities		151,899			116,220
Cash flows from investing activities:
Cash paid for business acquired, net of cash acquired		(4,878	)		—
Proceeds from sale of assets held for sale		—			3,508
Additions to rental fleet, excluding acquisitions		(61,247	)		(65,620	)
Proceeds from sale of rental fleet		10,782			11,447
Additions to property, plant and equipment, excluding acquisitions		(9,917	)		(14,635	)
Proceeds from sale of property, plant and equipment		448			603
Net cash used in investing activities		(64,812	)		(64,697	)
Cash flows from financing activities:
Net repayments under lines of credit		(9,494	)		(24,062	)
Deferred financing costs		(3,491	)		—
Principal payments on finance lease obligations		(8,167	)		(6,683	)
Issuance of common stock		2,314			3,617
Dividend payments		(36,864	)		(33,312	)
Purchase of treasury stock		(29,545	)		(668	)
Net cash used in financing activities		(85,247	)		(61,108	)
Effect of exchange rate changes on cash		(150	)		1,069
Net change in cash		1,690			(8,516	)
Cash and cash equivalents at beginning of period		5,605			13,451
Cash and cash equivalents at end of period	$	7,295		$	4,935
Equipment and other acquired through finance lease obligations	$	12,455		$	15,746
Capital expenditures accrued or payable		5,110			9,774

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, free cash flow and constant currency financial information 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 September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Net income (loss)	$	22,575		$	(52,165	)	$	54,718		$	(22,310	)
Interest expense		10,393			10,487			31,745			30,179
Income tax provision (benefit)		6,821			(19,594	)		19,794			(11,182	)
Depreciation and amortization		17,490			16,191			52,960			50,206
Deferred financing costswrite-off		—			—			123			—
EBITDA		57,279			(45,081	)		159,340			46,893
Share-based compensation expense		2,497			2,230			9,241			7,503
Restructuring expenses		—			—			—			1,306
Asset impairment charge and loss on divestiture, net		—			98,278			—			98,278
Chief Executive Officer transition		—			—			3,593			—
Acquisition-related expenses		1,898			—			2,637			—
Adjusted EBITDA	$	61,674		$	55,427		$	174,811		$	153,980
	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Net cash provided by operating activities	$	51,347		$	46,268		$	151,899		$	116,220
Interest paid		13,961			13,576			34,156			31,753
Income and franchise taxes paid		1,357			939			5,119			2,346
Share-based compensation expense, including restructuring expense		(2,497	)		(2,230	)		(12,834	)		(7,866	)
Asset impairment charge and loss on divestiture, net		—			(98,278	)		—			(98,278	)
Gain on sale of rental fleet		1,569			1,263			4,610			4,523
Gain (loss) on disposal of property, plant and equipment		56			(71	)		(46	)		(548	)
Changes in certain assets and liabilities, net of effect of businesses acquired		(8,514	)		(6,548	)		(23,564	)		(1,257	)
EBITDA	$	57,279		$	(45,081	)	$	159,340		$	46,893

10

Mobile Mini, Inc.

Free Cash Flow GAAP Reconciliation

(Unaudited)

(in thousands)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Net cash provided by operating activities	$	51,347		$	46,268		$	151,899		$	116,220
Additions to rental fleet, excluding acquisitions		(14,850	)		(27,144	)		(61,247	)		(65,620	)
Proceeds from sale of rental fleet		3,728			3,770			10,782			11,447
Additions to property, plant and equipment, excluding acquisitions		(3,482	)		(5,554	)		(9,917	)		(14,635	)
Proceeds from sale of property, plant and equipment		315			136			448			603
Net capital expenditures, excluding acquisitions		(14,289	)		(28,792	)		(59,934	)		(68,205	)
Free cash flow	$	37,058		$	17,476		$	91,965		$	48,015

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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.

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 September 30, 2019 were $1.1 million and $0.4 million higher than when calculated in accordance with GAAP.

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