Mobile Mini Reports Q2’13 Results

  Mobile Mini Reports Q2’13 Results

Business Wire

TEMPE, Ariz. -- August 9, 2013

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 June 30, 2013. Total revenues were $97.5 million and leasing
revenues were $88.2 million, up from $93.2 million and $81.9 million,
respectively, for the same period last year.

The Company recorded a second quarter net loss of $(14.4) million, or $(0.32)
per share, due to a charge of $40.3 million, of which $39.7 million was
non-cash, related to the impairment of certain leasing and other assets
determined to be either non-core or uneconomic to repair. Excluding this
charge, adjusted net income was $11.6 million, or $0.25 per adjusted diluted
share, compared with $7.5 million, or $0.17 per adjusted diluted share for the
second quarter of 2012.

Adjusted EBITDA was $38.1 million for the second quarter of 2013, compared
with $33.0 million for the same period last year. Adjusted EBITDA margin was
39.1% for the second quarter of 2013, compared with 35.4% in the second
quarter of 2012. The increase in profitability and margin reflects stronger
utilization, higher yield including improved pricing, and leveraging of
operating expenses.

Second Quarter 2013 Highlights

  *Grew leasing revenues 7.7% year-over-year to $88.2 million, an all-time
    second quarter high and the tenth consecutive quarter of comparable period
    growth in leasing revenues.
  *Improved yield by 3.2%, including an average rental rate increase of 2.1%
    versus the prior year, to an all-time second quarter high of $617.
  *Generated a 15.4% year-over-year increase in adjusted EBITDA.
  *Increased average fleet utilization to 62.0%, up 430 bps from the second
    quarter of 2012 on strengthening demand from both non-construction and
    construction end markets.
  *Delivered strong free cash flow of $18.3 million, after $7.1 million of
    net capex, which was the 22^nd consecutive quarter of positive free cash
    flow.
  *Reduced net debt by $22.7 million in the second quarter and $53.6 million
    year-to-date.

Erik Olsson, Mobile Mini’s President and Chief Executive Officer, commented,
“We generated further improvement in utilization during the second quarter,
which resulted in solid comparable period leasing revenue growth and increased
profitability. In addition, we saw increased momentum beginning in June and
continuing into the third quarter. We expect these favorable trends to
continue through the second half of 2013, and into 2014, particularly as we
hone our sales efforts and seek to expand our geographic footprint.”

The Company completed a review of its lease fleet and related assets in the
second quarter and decided to liquidate units that were deemed to be either
non-core or uneconomic to repair. The impairment totaled $40.3 million, of
which $14.9 million was related to core storage containers. The net impairment
charge related to the lease fleet represents only 3.3% of the total lease
fleet’s net book value. However, removing these non-rentable assets had the
positive impact of improving utilization by 4.3 percentage points to 67.4% at
the end of the second quarter. Excluding the effect of the impairment,
utilization at June 30, 2013 improved 4.2 percentage points to 63.1%, compared
to 58.9% at the end of the second quarter of 2012. This non-cash charge does
not change the Company’s earnings outlook, liquidity position, medium-term
capital expenditure needs or free cash flow generation.

Mr. Olsson continued, “With a strategic focus on increasing return on capital
and a move towards a rent-ready business model, removing these underperforming
assets and investing resources toward improving fleet quality and availability
positions us well for future growth. As utilization continues to rise, we
expect this streamlining of our fleet to have meaningful benefits in the form
of increased yard productivity, a safer work environment, and reduced real
estate needs, which should further enhance our financial performance over
time.”

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, August 9, 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 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 215,000 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 trends, enhanced financial performance, ability to penetrate existing
markets and expand our footprint, increases in operating leverage, increases
in revenue and profitability, yard productivity, safety and utilization, and
decreased real estate needs, 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 Operations

(Unaudited)/(in thousands except per share data)/(includes effects of
rounding)
                                              
                    Three Months Ended             Three Months Ended
                    June 30,                       June 30,
                    2013         2013             2012         2012
Revenues:           Actual       Adjusted (1)     Actual       Adjusted
                                                                 (1)
Leasing             $ 88,224      $  88,224        $ 81,924      $ 81,924
Sales                 8,850          8,850           10,749        10,749
Other                448         448           547        547     
Total revenues       97,522      97,522        93,220     93,220  
Costs and
expenses:
Cost of sales         5,668          5,668           6,580         6,580
Leasing,
selling and           57,477         57,477          55,377        55,332
general
expenses (2)
Merger and
restructuring         343            -               267           -
expenses (3)
Asset
impairment            40,277         -               -             -
charge (4)
Depreciation
and                  8,833       8,833         9,131      9,131   
amortization
Total costs and      112,598     71,978        71,355     71,043  
expenses
(Loss) income         (15,076 )      25,544          21,865        22,177
from operations
                                                                             
Other income
(expense):
Interest income       -              -               1             1
Interest              (7,455  )      (7,455  )       (10,182 )     (10,182 )
expense
Foreign
currency             -           -             (2      )   (2      )
exchange
(Loss) income
before (benefit
from) provision       (22,531 )      18,089          11,682        11,994
for income
taxes
(Benefit from)
provision for        (8,150  )    6,446         4,370      4,462   
income taxes
Net (loss)          $ (14,381 )  $  11,643       $ 7,312     $ 7,532   
income
                                                                             
(Loss) earnings
per share:
Basic               $ (0.32   )  $  0.26         $ 0.16      $ 0.17    
Diluted             $ (0.32   )  $  0.25         $ 0.16      $ 0.17    
                                                                             
Weighted
average number
of common and
common share
equivalents
outstanding:
Basic                45,420      45,420        44,627     44,627  
Diluted              45,420      46,018        44,952     44,952  
                                                                             
EBITDA              $ (6,243  )  $  38,120       $ 30,995    $ 33,037  

    
      This column represents a non-GAAP presentation even though some
(1)   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.
      Merger and restructuring expenses represent costs relating primarily to
(3)   the restructuring of our operations that are excluded in the adjusted
      presentation.
      Represents the impairment charge primarily for the write down on certain
(4)   assets classified as held for sale that is excluded in the adjusted
      presentation.

                                                                             
                                                                             
Mobile Mini, Inc. Condensed Consolidated Statements of Operations

(Unaudited)/(in thousands except per share data)/(includes effects of
rounding)
                                             
                   Six Months Ended               Six Months Ended
                   June 30,                       June 30,
                   2013         2013             2012         2012
Revenues:          Actual       Adjusted (1)     Actual       Adjusted (1)
Leasing            $ 173,290     $  173,290       $ 160,368     $  160,368
Sales                21,312         21,312          20,554         20,554
Other               861         861           1,048       1,048   
Total revenues      195,463     195,463       181,970     181,970 
Costs and
expenses:
Cost of sales        14,352         14,352          12,478         12,478
Leasing,
selling and          110,610        110,610         108,964        108,825
general
expenses (2)
Merger and
restructuring        718            -               763            -
expenses (3)
Asset
impairment           40,277         -               -              -
charge (4)
Depreciation
and                 17,644      17,644        18,145      18,145  
amortization
Total costs         183,601     142,606       140,350     139,448 
and expenses
Income from          11,862         52,857          41,620         42,522
operations
                                                                             
Other income
(expense):
Interest             -              -               1              1
income
Interest             (15,006 )      (15,006 )       (20,799 )      (20,799 )
expense
Deferred
financing            -              -               (692    )      -
costs
write-off (5)
Foreign
currency            (1      )    (1      )      (3      )    (3      )
exchange
(Loss) income
before
(benefit from)       (3,145  )      37,850          20,127         21,721
provision for
income taxes
(Benefit from)
provision for       (806    )    13,934        7,605       8,166   
income taxes
Net (loss)         $ (2,339  )  $  23,916       $ 12,522    $  13,555  
income
                                                                             
(Loss)
earnings per
share:
Basic              $ (0.05   )  $  0.53         $ 0.28      $  0.30    
Diluted            $ (0.05   )  $  0.52         $ 0.28      $  0.30    
                                                                             
Weighted
average number
of common and
common share
equivalents
outstanding:
Basic               45,334      45,334        44,558      44,558  
Diluted             45,334      45,876        45,006      45,006  
                                                                             
EBITDA             $ 29,505    $  75,879       $ 59,763    $  64,064  

    
      This column represents a non-GAAP presentation even though some
(1)   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.
      Merger and restructuring expenses represent costs relating primarily to
(3)   the restructuring of our operations that are excluded in the adjusted
      presentation.
      Represents the impairment charge primarily for the write down on certain
(4)   assets classified as held for sale that is excluded in the adjusted
      presentation.
      In 2012, this represents a portion of deferred financing costs
      associated with our prior $850.0 million credit agreement which was
(5)   replaced with our $900.0 million credit agreement in February 2012.
      Deferred financing costs write-off is excluded in the adjusted
      presentation.

                                                                                                                                                     
                                                                                                                                                       
Mobile Mini, Inc. Non-GAAP Reconciliations

(in thousands except per share data)/(includes effects of rounding)
                                                                               
              Reconciliation of Adjusted Measurements to Actuals                    Reconciliation of Adjusted Measurements to Actuals

              Three Months Ended June 30, 2013                                      Three Months Ended June 30, 2012
                         Share-based    Merger and      Asset                                  Share-based    Merger and      Acquisition
              As                                                                    As
             Adjusted  compensation  restructuring  impairment  Actual         Adjusted  compensation  restructuring  expenses     Actual   
              (1)                                                                   (1)                                       (4)
                         expense (2)    expenses (3)    charge (5)                             expense (2)    expenses (3)
Revenues      $ 97,522  $   -         $    -         $ -         $ 97,522       $ 93,220  $   -         $    -         $    -       $ 93,220
EBITDA        $ 38,120   $   (3,743)    $    (343)      $ (40,277)   $ (6,243)      $ 33,037   $   (1,730)         (267)      $    (45)     $ 30,995
EBITDA          39.1%        (3.8)%          (0.4)%       (43.2)%      (6.4)%         35.4%        (1.9)%          (0.3)%     $    -          33.2%
margin
Operating
income        $ 25,544   $   -          $    (343)      $ (40,277)   $ (15,076)     $ 22,177   $   -          $    (267)      $    (45)     $ 21,865
(loss)
Operating
income          26.2%        -               (0.4)%       (43.2)%      (15.5)%        23.8%        -               (0.3)%     $    -          23.5%
(loss)
margin
Pre tax
income        $ 18,089   $   -          $    (343)      $ (40,277)   $ (22,531)     $ 11,994   $   -          $    (267)      $    (45)     $ 11,682
(loss)
Net
income        $ 11,643   $   -          $    (210)      $ (25,814)   $ (14,381)     $ 7,532    $   -          $    (192)      $    (28)     $ 7,312
(loss)
Diluted
earnings      $ 0.25     $   -          $    (0.01)     $ (0.56)     $ (0.32)       $ 0.17     $   -          $    (0.01)     $    -        $ 0.16
(loss)
per share

                                                                                                                                                               
                                                                                                                                                                     
              Reconciliation of Adjusted Measurements to Actuals                    Reconciliation of Adjusted Measurements to Actuals

              Six Months Ended June 30, 2013                                        Six Months Ended June 30, 2012
                                                                                                                                             Deferred
                          Share-based    Merger and      Asset                                  Share-based    Merger and      Acquisition
              As                                                                    As                                                       Financing
             Adjusted   compensation  restructuring  impairment  Actual        Adjusted   compensation  restructuring  expenses     costs      Actual    
              (1)                                                                   (1)                                        (4)
                          expense (2)    expenses (3)    charge (5)                             expense (2)    expenses (3)                  write-off
                                                                                                                                             (6)
Revenues      $ 195,463  $   -         $    -         $ -         $ 195,463     $ 181,970  $   -         $    -         $   -        $  -       $ 181,970
EBITDA        $ 75,879    $   (5,379)    $    (718)      $ (40,277)   $ 29,505      $ 64,064    $   (3,399)         (763)      $   (139)     $  -        $ 59,763
EBITDA          38.8%         (2.8)%          (0.4)%       (22.1)%      15.1%         35.2%         (1.9)%          (0.4)%         (0.1)%    $  -          32.8%
margin
Operating     $ 52,857    $   -          $    (718)      $ (40,277)   $ 11,862      $ 42,522    $   -          $    (763)      $   (139)     $  -        $ 41,620
income
Operating
income          27.0%         -               (0.4)%       (22.1)%      6.1%          23.4%         -               (0.4)%         (0.1)%    $  -          22.9%
margin
Pre tax
income        $ 37,850    $   -          $    (718)      $ (40,277)   $ (3,145)     $ 21,721    $   -          $    (763)      $   (139)     $  (692)    $ 20,127
(loss)
Net
income        $ 23,916    $   -          $    (441)      $ (25,814)   $ (2,339)     $ 13,555    $   -          $    (522)      $   (85)      $  (426)    $ 12,522
(loss)
Diluted
earnings      $ 0.52      $   -          $    (0.01)     $ (0.56)     $ (0.05)      $ 0.30      $   -          $    (0.01)     $   -         $  (0.01)   $ 0.28
(loss)
per share

    
      This column represents a non-GAAP presentation even though some
(1)   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.
      Merger and restructuring expenses represent costs relating primarily to
(3)   the restructuring of our operations that are excluded in the adjusted
      presentation.
(4)   Represents acquisition activity costs that are excluded in the adjusted
      presentation.
      Represents the impairment charge primarily for the write down on certain
(5)   assets classified as held for sale that is excluded in the adjusted
      presentation.
      Represents a portion of deferred financing costs associated with our
(6)   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.

                                                                             
                                                                             
Mobile Mini, Inc. Non-GAAP Reconciliations

(in thousands)/(includes effects of rounding)
                                              
                    Three Months Ended June        Six Months Ended June 30,
                    30,
                    2013          2012            2013         2012
Reconciliation
of EBITDA to
net cash                                                      
provided by
operating
activities:
EBITDA              $  (6,243  )   $ 30,995        $ 29,505      $ 59,763
Interest paid          (10,829 )     (15,581 )       (13,221 )     (18,628 )
Income and
franchise taxes        (698    )     (548    )       (785    )     (589    )
paid
Share-based
compensation           3,743         1,730           5,379         3,586
expense
Asset
impairment             39,704        -               39,704        -
charge
Gain on sale of
lease fleet            (2,381  )     (3,442  )       (5,448  )     (6,556  )
units
Loss (gain) on
disposal of            90            (31     )       62            (44     )
property, plant
and equipment
Changes in
certain assets
and
liabilities,
net of effect
of business
acquired:
Receivables            (1,712  )     (2,568  )       (822    )     395
Inventories            (848    )     365             (1,602  )     (937    )
Deposits and
prepaid                254           (303    )       (417    )     (109    )
expenses
Other assets           (103    )     132             (7      )     (105    )
and intangibles
Accounts
payable and           4,440      3,977         (334    )   (3,203  )
accrued
liabilities
Net cash
provided by         $  25,417    $ 14,726       $ 52,014    $ 33,573  
operating
activities
                                                                             
                                                                             
Reconciliation
of net (loss)
income to
EBITDA and
adjusted
EBITDA:
Net (loss)          $  (14,381 )   $ 7,312         $ (2,339  )   $ 12,522
income
Interest               7,455         10,182          15,006        20,799
expense
(Benefit)
provision for          (8,150  )     4,370           (806    )     7,605
income taxes
Depreciation
and                    8,833         9,131           17,644        18,145
amortization
Deferred
financing costs       -          -             -          692     
write-off
EBITDA                 (6,243  )     30,995          29,505        59,763
Share-based
compensation           3,743         1,730           5,379         3,399
expense
Merger and
restructuring          343           267             718           763
expenses
Acquisition            -             45              -             139
expenses
Asset
impairment            40,277     -             40,277     -       
charge
Adjusted EBITDA     $  38,120    $ 33,037       $ 75,879    $ 64,064  
                                                                             
                                                                             
Reconciliation
of net cash
provided by
operating
activities to
free cash flow:
Net cash
provided by         $  25,417      $ 14,726        $ 52,014      $ 33,573
operating
activities
                                                                             
Additions to           (7,970  )     (9,506  )       (14,297 )     (19,326 )
lease fleet
Proceeds from
sale of lease          6,049         8,464           15,929        16,117
fleet units
Additions to
property, plant        (5,374  )     (5,596  )       (9,654  )     (8,555  )
and equipment
Proceeds from
sale of               237        151           458        315     
property, plant
and equipment
Net capital
expenditures,         (7,058  )   (6,487  )      (7,564  )   (11,449 )
excluding
acquisitions
                                                            
Free cash flow      $  18,359    $ 8,239        $ 44,450    $ 22,124  

                                                                             
                                                                             
Mobile Mini, Inc.

Condensed Consolidated Balance Sheets

(in thousands except par value data)

(includes effects of rounding)
                                                          
                                             June 30,          December 31,

                                             2013              2012
                                             (unaudited)       (audited)
ASSETS
Cash                                         $ 634             $ 1,937
Receivables, net                               50,431            50,644
Inventories                                    19,634            19,534
Lease fleet, net                               974,486           1,031,589
Property, plant and equipment, net             77,403            80,822
Assets held for sale                           8,312             -
Deposits and prepaid expenses                  7,193             6,858
Other assets and intangibles, net              15,502            17,868
Goodwill                                      514,034         518,308   
Total assets                                 $ 1,667,629      $ 1,727,560 
                                                                             
                                                                             
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Accounts payable                             $ 19,493          $ 18,287
Accrued liabilities                            56,086            58,485
Lines of credit                                389,263           442,391
Notes payable                                  45                310
Obligations under capital leases               451               642
Senior Notes                                   200,000           200,000
Deferred income taxes                         195,959         197,926   
Total liabilities                             861,297         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, 48,475 issued and
46,300 outstanding at June 30, 2013 and        485               482
48,211 issued and 46,036 outstanding at
December 31, 2012
Additional paid-in capital                     534,293           522,372
Retained earnings                              341,443           343,782
Accumulated other comprehensive loss           (30,589   )       (17,817   )
Treasury stock, at cost, 2,175 shares         (39,300   )      (39,300   )
Total stockholders' equity                    806,332         809,519   
Total liabilities and stockholders'          $ 1,667,629      $ 1,727,560 
equity

                                                                

                                                              


Mobile Mini, Inc. Condensed Consolidated Statements of Cash Flows

(Unaudited)/(in thousands)/(includes effects of rounding)
                                             
                                                 Six Months Ended June 30,
                                                 2013          2012
Cash Flows From Operating Activities:
Net (loss) income                                $ (2,339  )     $ 12,522
Adjustments to reconcile net income to net
cash provided by operating activities:
Deferred financing costs write-off                 -               692
Asset impairment charge                            39,704          -
Provision for doubtful accounts                    715             562
Amortization of deferred financing costs           1,405           1,779
Amortization of debt issuance discount             -               42
Amortization of long-term liabilities              86              84
Share-based compensation expense                   5,379           3,586
Depreciation and amortization                      17,644          18,145
Gain on sale of lease fleet units                  (5,448  )       (6,556  )
Loss (gain) on disposal of property, plant         62              (44     )
and equipment
Deferred income taxes                              (980    )       7,605
Foreign currency transaction loss                  1               3
Changes in certain assets and liabilities,
net of effect of business acquired:
Receivables                                        (1,537  )       (167    )
Inventories                                        (1,602  )       (937    )
Deposits and prepaid expenses                      (417    )       (109    )
Other assets and intangibles                       (7      )       (105    )
Accounts payable                                   1,433           1,813
Accrued liabilities                               (2,085  )      (5,342  )
Net cash provided by operating activities         52,014        33,573  
                                                                             
Cash Flows From Investing Activities:
Cash paid for business acquired                    -               (3,563  )
Additions to lease fleet                           (14,297 )       (19,326 )
Proceeds from sale of lease fleet units            15,929          16,117
Additions to property, plant and equipment         (9,654  )       (8,555  )
Proceeds from sale of property, plant, and        458           315     
equipment
Net cash used in investing activities             (7,564  )      (15,012 )
                                                                             
Cash Flows From Financing Activities:
Net repayments under lines of credit               (53,128 )       (11,614 )
Deferred financing costs                           -               (7,507  )
Principal payments on notes payable                (265    )       (238    )
Principal payments on capital lease                (191    )       (547    )
obligations
Issuance of common stock                          6,395         1,846   
Net cash used in financing activities             (47,189 )      (18,060 )
Effect of exchange rate changes on cash           1,436         (414    )
Net (decrease) increase in cash                    (1,303  )       87
Cash at beginning of period                       1,937         2,860   
Cash at end of period                            $ 634          $ 2,947   
                                                                             

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 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. 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 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.

Contact:

Mobile Mini, Inc.
Mark Funk, 480-477-0241
Executive VP & Chief Financial Officer
www.mobilemini.com
or
INVESTOR RELATIONS COUNSEL:
The Equity Group Inc.
Fred Buonocore, 212-836-9607
Linda Latman, 212-836-9609
 
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