MOBILE MINI INC - FORM 8-K - EX-99.1

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8-K - 8-K - MOBILE MINI INC	d676049d8k.htm

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 24^th 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.

MOBILE MINI INC - FORM 8-K - EX-99.1 - February 14, 2014

Attached files

MOBILE MINI INC Reports