Mobile Mini Reports Q1'13 Results
TEMPE, Ariz.--(BUSINESS WIRE)-- 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 March 31, 2013. Total revenues were $97.9 million and leasing revenues were $85.1 million, compared with $88.8 million and $78.4 million, respectively, for the same period last year. The Company's first quarter adjusted net income was $12.3 million, or $0.27 per diluted share, compared with $6.0 million, or $0.13, respectively, for the first quarter of 2012.
Adjusted EBITDA was $37.8 million for the first quarter of 2013, compared with $31.0 million for the same period last year. Adjusted EBITDA margin was 38.6% for the first quarter of 2013, compared with 35.0% in the first quarter of 2012. The increase in profitability and margin reflects stronger utilization, higher yield including improved pricing, and leveraging of operating expenses.
First Quarter 2013 Highlights
- Grew leasing revenues 8.4% year-over-year to $85.1 million, our highest first quarter level since the first quarter of 2009.
- Improved yield 4.3% including an average rental rate increase of 1.6% versus the prior year.
- Generated a 21.7% year-over-year increase in adjusted EBITDA.
- Increased average fleet utilization to 60.2%, up 340 bps from the first quarter of 2012.
- Delivered strong free cash flow of $26.1 million, after $0.5 million of net capex.
The Company posted its ninth consecutive quarter of comparable period growth in leasing revenues. The increase in units on rent was driven by stronger demand from both non-construction and construction end markets and resulted in continued year-over-year improvement in utilization. Yield rose 4.3% to an all-time first quarter high of $604. The nearly 22% gain in adjusted EBITDA and 360 basis point improvement in adjusted EBITDA margin over the first quarter of 2012 reflects stronger leasing volume and pricing coupled with disciplined cost controls. Finally, the Company continued to strengthen its financial position, generating positive free cash flow for the 21st consecutive quarter and reducing net debt by $30.9 million.
Erik Olsson, Mobile Mini's President and Chief Executive Officer commented, "The year started on a strong note. Looking ahead, we anticipate that we will continue to generate comparable period growth in leasing revenues through the balance of 2013 which, with our strong operating leverage, should translate into year-over-year EBITDA margin expansion. We see additional opportunity to increase our utilization as we more deeply penetrate our existing markets and expand into new ones. We have a great team of dedicated people focused on delivering outstanding service to our customers, and I am looking forward to working with them as we take Mobile Mini into its next phase of growth."
Adjusted EBITDA, EBITDA margin, adjusted EBITDA margin, adjusted net income, 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.
Mobile Mini will host a conference call today, Monday, May 6, 2013, 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 at www.mobilemini.com on the Investors section and will be available in advance and after the call. We will also post the reconciliation of non-GAAP financial measures used in the slide show to the most directly comparable GAAP financial measures. 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 230,900 portable storage containers and office units with 137 locations in the U.S., United Kingdom, Canada and The Netherlands. Mobile Mini is included on the Russell 2000® and 3000® Indexes and the S&P Small Cap Index.
This news release contains forward-looking statements, particularly regarding growth, ability to penetrate existing markets and enter new markets, increases in operating leverage, increases in revenue and utilization, and EBITDA margin expansion, which involve risks and uncertainties that could cause actual results to differ materially from those currently anticipated. Risks and uncertainties that may affect future results include those that are described from time to time in the Company's SEC filings. These forward-looking statements represent the judgment of the Company, as of the date of this release, and Mobile Mini disclaims any intent or obligation to update forward-looking statements.
(See Accompanying Tables)
|Mobile Mini, Inc. Condensed Consolidated Statements of Income|
|(Unaudited)/(in 000's except per share data)/(includes effects of rounding)|
|Three Months Ended||Three Months Ended|
|March 31,||March 31,|
|Revenues:||Actual||Adjusted (1)||Actual||Adjusted (1)|
|Costs and expenses:|
|Cost of sales||8,684||8,684||5,898||5,898|
|Leasing, selling and general expenses (2)||53,133||53,133||53,587||53,493|
|Integration, merger and restructuring expenses (3)||375||-||496||-|
|Depreciation and amortization||8,811||8,811||9,014||9,014|
|Total costs and expenses||71,003||70,628||68,995||68,405|
|Income from operations||26,938||27,313||19,755||20,345|
|Other income (expense):|
|Deferred financing costs write-off (4)||-||-||(692||)||-|
|Foreign currency exchange||(1||)||(1||)||(1||)||(1||)|
|Income before provision for income taxes||19,386||19,761||8,445||9,727|
|Provision for income taxes||7,344||7,488||3,235||3,704|
|Earnings per share:|
|Weighted average number of common and common|
|share equivalents outstanding:|
|(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)||In 2012, the difference relates to acquisition activity costs that are excluded in the adjusted presentation.|
|(3)||Integration, merger and restructuring expenses represent costs relating primarily to the restructuring of our operations that are excluded in the adjusted presentation.|
|(4)||In 2012, this represents a portion of deferred financing costs associated with our prior $850.0 million credit agreement which was replaced with our $900.0 million credit agreement in February 2012. Deferred financing costs write-off is excluded in the adjusted presentation.|