Mobile Mini Reports Q3'13 Results

  Mobile Mini Reports Q3'13 Results

Business Wire

TEMPE, Ariz. -- November 8, 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 September 30, 2013. Total revenues were $105.5 million and
leasing revenues were $95.8 million, up from $99.0 million and $88.8 million,
respectively, for the same period last year. The Company’s third quarter net
income was $14.3 million, or $0.31 per diluted share, compared to $10.4
million, or $0.23, respectively, for the third quarter of 2012. On an adjusted
basis, third quarter net income was $13.0 million, or $0.28 per diluted share,
compared to $12.2 million, or $0.27, respectively, for the third quarter of
2012.

Adjusted EBITDA was $41.1 million and adjusted EBITDA margin was 39.0% for the
third quarter of 2013.

Quarterly Dividend Initiation and Share Repurchase Authorization

The Company’s Board of Directors has authorized the payment of a regular
quarterly cash dividend of $0.17 per share, or $0.68 per share annually. The
initial quarterly dividend will be payable on March 20, 2014 to all common
shareholders of record as of March 6, 2014. Future dividends will be subject
to Board approval. Additionally, Mobile Mini’s Board has authorized the
repurchase of up to $125 million of common stock in open market and private
transactions.

Third Quarter 2013 Highlights

  *Grew leasing revenues 7.9% year-over-year marking the eleventh consecutive
    quarter of comparable period growth.
  *Increased rental rates by 1.2% sequentially over the second quarter and
    2.9% over the previous year, improving yield by 3.8% to an all-time high
    of $643 per unit.
  *Achieved an adjusted EBITDA margin of 39.0%, while investing inrepairs
    and maintenance associated with increased deliveries, and the
    repositioning of assets to high utilization markets, resulting in
    incremental expense of approximately $3 million, or 3% of revenues,
    compared to the third quarter of 2012.
  *Improved average fleet utilization to 68.8% in the third quarter and 71.7%
    at September 30, 2013.
  *Delivered free cash flow of $33.2 million, the 23^rd consecutive quarter
    of positive free cash flow.
  *Reduced net debt by $30.7 million in the third quarter and $111.0 million
    for the trailing twelve months.

Erik Olsson, Mobile Mini’s President and Chief Executive Officer, commented,
“I’m very pleased with our performance in the third quarter. We put more units
on rent, while at the same time continuing to increase rental rates. Our yield
for the period reached an all-time high, reflecting great execution and a
strengthening demand environment in both our construction and non-construction
markets. We have continued to reposition idle units to high demand areas and
expect to continue to do so over the next several quarters to optimize
utilization and minimize capex.”

Mr. Olsson continued, “I am also very pleased with launching a capital
allocation strategy to benefit our shareholders, while at the same time
allowing the company to continue to aggressively pursue growth. Looking ahead,
the actions we have taken over the past six months to improve the quality and
strategic positioning of our fleet, combined with our greater emphasis on
sales and marketing, should translate into continued growth in the fourth
quarter, our seasonally strongest reporting period, and well into 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, November 8, 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 214,000 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, including, but not
limited to, our expectations regarding our growth trends, financial
performance, ability to reposition fleet, continue growth, optimize
utilization and minimize capex, 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 thousands except per share data)/(includes effects of
rounding)
                                                                             
                      Three Months Ended           Three Months Ended
                      September 30,                September 30,
                      2013         2013           2012        2012
Revenues:             Actual        Adjusted (1)   Actual       Adjusted (1)
Leasing               $ 95,811      $  95,811      $ 88,789     $  88,789
Sales                   9,098          9,098         9,687         9,687
Other                  578          578         526         526     
Total revenues         105,487      105,487     99,002      99,002  
Costs and expenses:
Cost of sales           6,091          6,091         6,026         6,026
Leasing, selling
and general             62,891         62,891        55,978        55,978
expenses
Merger and
restructuring           1,335          -             837           -
expenses (2)
Asset impairment
(recovery) charge,      (751    )      -             -             -
net (3)
Depreciation and       8,942        8,942       8,951       8,951   
amortization
Total costs and        78,508       77,924      71,792      70,955  
expenses
Income from             26,979         27,563        27,210        28,047
operations
                                                                             
Other income
(expense):
Interest expense        (7,359  )      (7,359  )     (8,805 )      (8,805  )
Debt restructuring      -              -             (2,812 )      -
expense (4)
Deferred financing      -              -             (1,197 )      -
costs write-off (5)
Foreign currency       -            -           (2     )     (2      )
exchange
Income before
provision for           19,620         20,204        14,394        19,240
income taxes
Provision for          5,317        7,181       3,996       7,012   
income taxes (6)
Net income            $ 14,303     $  13,023     $ 10,398    $  12,228  
                                                                             
Earnings per share:
Basic                 $ 0.31       $  0.29       $ 0.23      $  0.27    
Diluted               $ 0.31       $  0.28       $ 0.23      $  0.27    

Weighted average
number of common
and common share
equivalents
outstanding:
Basic                  45,511       45,511      44,686      44,686  
Diluted                46,162       46,162      45,044      45,044  
                                                                             
EBITDA                $ 35,921     $  41,149     $ 36,159    $  39,086  
                                                                             

(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) Merger and restructuring expenses represent costs relating primarily to
the restructuring of our operations and the severance related to our Chief
Accounting Officer in 2013. Merger and restructuring expenses are excluded in
the adjusted presentation.

(3) Represents the net sales in excess of fair value on impaired assets that
were written down and classified as held for sale and is excluded in the
adjusted presentation.

(4) 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.

(5) In 2012, this represents the unamortized deferred financing costs
associated with the $150.0 million of 6.875% Notes redeemed in August 2012.
Deferred financing costs write-off is excluded in the adjusted presentation.

(6) Provision for income taxes includes approximately $1.7 million and $1.1
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.

                                             
Mobile Mini, Inc. Condensed Consolidated Statements of Income
(Unaudited)/(in thousands except per share data)/(includes effects of
rounding)
                                                                             
                 Nine Months Ended                Nine Months Ended
                 September 30,                    September 30,
                 2013         2013               2012         2012
Revenues:        Actual        Adjusted (1)       Actual        Adjusted (1)
Leasing          $ 269,101     $  269,101         $ 249,157     $  249,157
Sales              30,410         30,410            30,241         30,241
Other             1,439        1,439           1,574        1,574   
Total revenues    300,950      300,950         280,972      280,972 
Costs and
expenses:
Cost of sales      20,443         20,443            18,504         18,504
Leasing,
selling and        173,501        173,501           164,942        164,803
general
expenses (2)
Merger and
restructuring      2,053          -                 1,600          -
expenses (3)
Asset
impairment
(recovery)         39,526         -                 -              -
charge, net
(4)
Depreciation
and               26,586       26,586          27,096       27,096  
amortization
Total costs       262,109      220,530         212,142      210,403 
and expenses
Income from        38,841         80,420            68,830         70,569
operations
                                                                             
Other income
(expense):
Interest           -              -                 1              1
income
Interest           (22,365 )      (22,365 )         (29,604 )      (29,604 )
expense
Debt
restructuring      -              -                 (2,812  )      -
expense (5)
Deferred
financing          -              -                 (1,889  )      -
costs
write-off (6)
Foreign
currency          (1      )     (1      )        (5      )     (5      )
exchange
Income before
provision for      16,475         58,054            34,521         40,961
income taxes
Provision for
income taxes      4,511        21,115          11,601       15,178  
(7)
Net income       $ 11,964     $  36,939         $ 22,920     $  25,783  
                                                                             
Earnings per
share:
Basic            $ 0.26       $  0.81           $ 0.51       $  0.58    
Diluted          $ 0.26       $  0.80           $ 0.51       $  0.57    
                                                                             
Weighted
average number
of common and
common share
equivalents
outstanding:
Basic             45,394       45,394          44,601       44,601  
Diluted           45,972       45,972          45,019       45,019  
                                                                             
EBITDA           $ 65,426     $  117,028        $ 95,922     $  103,150 
                                                                             

(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) Merger and restructuring expenses represent costs relating primarily to
the restructuring of our operations and the severance related to our Chief
Accounting Officer in 2013. Merger and restructuring expenses are excluded in
the adjusted presentation.

(4) Represents the net impairment charge primarily for the write-down on
certain assets classified as held for sale that 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.

                                                              
Mobile Mini, Inc.
Condensed Consolidated Balance Sheets
(in thousands except par value data)
(includes effects of rounding)
                                                                 
                                                 September 30,   December 31,
                                                   2013            2012
                                                 (unaudited)     (audited)
ASSETS
Cash                                             $ 2,068         $ 1,937
Receivables, net                                   54,594          50,644
Inventories                                        20,711          19,534
Lease fleet, net                                   982,668         1,031,589
Property, plant and equipment, net                 77,542          80,822
Assets held for sale                               5,889           -
Deposits and prepaid expenses                      6,842           6,858
Other assets and intangibles, net                  14,548          17,868
Goodwill                                          517,999       518,308   
Total assets                                     $ 1,682,861    $ 1,727,560 
                                                                 
                                                                 
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Accounts payable                                 $ 21,376        $ 18,287
Accrued liabilities                                60,615          58,485
Lines of credit                                    358,658         442,391
Notes payable                                      -               310
Obligations under capital leases                   1,845           642
Senior Notes                                       200,000         200,000
Deferred income taxes                             201,998       197,926   
Total liabilities                                 844,492       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, 48,461 issued and 46,286
outstanding at September 30, 2013 and 48,211       485             482
issued and 46,036 outstanding at December 31,
2012
Additional paid-in capital                         539,848         522,372
Retained earnings                                  355,746         343,782
Accumulated other comprehensive loss               (18,410   )     (17,817   )
Treasury stock, at cost, 2,175 shares             (39,300   )    (39,300   )
Total stockholders' equity                        838,369       809,519   
Total liabilities and stockholders' equity       $ 1,682,861    $ 1,727,560 
                                                                             

                                                                             
Mobile Mini, Inc. Condensed Consolidated Statements of Cash Flows
(Unaudited)/(in thousands)/(includes effects of rounding)
                                           
                                             Nine Months Ended September 30,
                                             2013             2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income                                   $  11,964         $  22,920
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 (recovery) charge, net         38,953            -
Provision for doubtful accounts                 1,288             923
Amortization of deferred financing costs        2,108             2,517
Amortization of debt issuance discount          -                 49
Amortization of long-term liabilities           128               125
Share-based compensation expense                10,769            5,676
Depreciation and amortization                   26,586            27,096
Gain on sale of lease fleet units               (7,698   )        (9,451   )
Gain on disposal of property, plant and         (56      )        (263     )
equipment
Deferred income taxes                           4,249             11,601
Foreign currency transaction loss               1                 5
Changes in certain assets and liabilities,
net of effect of business acquired:
Receivables                                     (5,297   )        (7,649   )
Inventories                                     (2,397   )        (963     )
Deposits and prepaid expenses                   19                924
Other assets and intangibles                    12                (264     )
Accounts payable                                2,768             692
Accrued liabilities                            2,077           (275     )
Net cash provided by operating activities      85,474          58,364   
                                                                             
CASH FLOWS FROM INVESTING ACTIVITIES:
Cash paid for business acquired                 -                 (3,563   )
Additions to lease fleet                        (23,611  )        (32,783  )
Proceeds from sale of lease fleet units         25,411            23,399
Additions to property, plant and equipment      (10,651  )        (11,171  )
Proceeds from sale of property, plant, and     1,013           1,428    
equipment
Net cash used in investing activities          (7,838   )       (22,690  )
                                                                             
CASH FLOWS FROM FINANCING ACTIVITIES:
Net (repayments) borrowings under lines of      (83,733  )        124,056
credit
Redemption of 6.875% senior notes due 2015      -                 (150,000 )
Redemption premiums of 6.875% senior notes      -                 (2,579   )
due 2015
Deferred financing costs                        -                 (8,039   )
Principal payments on notes payable             (310     )        (316     )
Principal payments on capital lease             (289     )        (762     )
obligations
Issuance of common stock                       6,467           1,996    
Net cash used in financing activities          (77,865  )       (35,644  )
Effect of exchange rate changes on cash        360             (1,974   )
NET INCREASE (DECREASE) IN CASH                 131               (1,944   )
CASH AT BEGINNING OF PERIOD                    1,937           2,860    
CASH AT END OF PERIOD                        $  2,068         $  916      
                                                                             
Supplemental Disclosure of Cash Flow
Information:
Equipment acquired through capital lease     $  1,492         $  300      
and financing obligations
                                                                             

                                                
Mobile Mini, Inc.
Non-GAAP Reconciliations
(in thousands)
(includes effects of rounding)
                                                                             
                        Three Months Ended         Nine Months Ended
                        September 30,              September 30,
                        2013        2012          2013         2012

Reconciliation of
EBITDA to net cash
provided by operating
activities:
EBITDA                  $ 35,921     $ 36,159      $ 65,426      $ 95,922
Interest paid             (2,552 )     (5,703  )     (15,773 )     (24,331 )
Income and franchise      (177   )     (133    )     (962    )     (722    )
taxes paid
Share-based               5,390        2,090         10,769        5,676
compensation expense
Asset impairment
(recovery) charge,        (751   )     -             38,953        -
net
Gain on sale of lease     (2,250 )     (2,895  )     (7,698  )     (9,451  )
fleet units
Gain on disposal of
property, plant and       (118   )     (219    )     (56     )     (263    )
equipment
Changes in certain
assets and
liabilities, net of
effect of business
acquired:
Receivables               (3,187 )     (7,121  )     (4,009  )     (6,726  )
Inventories               (795   )     (26     )     (2,397  )     (963    )
Deposits and prepaid      436          1,033         19            924
expenses
Other assets and          19           (159    )     12            (264    )
intangibles
Accounts payable and     1,524      1,765       1,190       (1,438  )
accrued liabilities
Net cash provided by    $ 33,460    $ 24,791     $ 85,474     $ 58,364  
operating activities
                                                                             
                                                                             
Reconciliation of net
income to EBITDA and
adjusted EBITDA:
Net income              $ 14,303     $ 10,398      $ 11,964      $ 22,920
Interest expense          7,359        8,805         22,365        29,604
Provision for income      5,317        3,996         4,511         11,601
taxes
Depreciation and          8,942        8,951         26,586        27,096
amortization
Debt restructuring        -            2,812         -             2,812
expense
Deferred financing       -          1,197       -           1,889   
costs write-off
EBITDA                    35,921       36,159        65,426        95,922
Share-based               4,644        2,090         10,023        5,489
compensation expense
Merger and
restructuring             1,335        837           2,053         1,600
expenses
Acquisition expenses      -            -             -             139
Asset impairment
(recovery) charge,       (751   )    -           39,526      -       
net
Adjusted EBITDA         $ 41,149    $ 39,086     $ 117,028    $ 103,150 
                                                                             
                                                                             
Reconciliation of net
cash provided by
operating activities
to free cash flow:
Net cash provided by    $ 33,460     $ 24,791      $ 85,474      $ 58,364
operating activities
                                                                             
Additions to lease        (9,314 )     (13,457 )     (23,611 )     (32,783 )
fleet
Proceeds from sale of     9,482        7,282         25,411        23,399
lease fleet units
Additions to
property, plant and       (997   )     (2,616  )     (10,651 )     (11,171 )
equipment
Proceeds from sale of
property, plant and      555        1,112       1,013       1,427   
equipment
Net capital
expenditures,            (274   )    (7,679  )    (7,838  )    (19,128 )
excluding
acquisitions
                                                              
Free cash flow          $ 33,186    $ 17,112     $ 77,636     $ 39,236  
                                                                             

          
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 September 30, 2013
                                                      Asset               
                          Share-based    Merger and      impairment
                          compensation   restructuring   (recovery)   Income
                                                                      tax
            As Adjusted   expense (2)    expenses (3)    charge,      benefit   Actual
            (1)                                          net (4)      (5)
Revenues    $ 105,487     $  -           $  -            $  -         $ -       $ 105,487
EBITDA      $ 41,149      $  (4,644 )    $  (1,335  )    $  751       $ -       $ 35,921
EBITDA        39.0    %      (4.4   )%      (1.3    )%      (0.8 )%     -         34.1    %
margin
Operating   $ 27,563      $  -           $  (1,335  )    $  751       $ -       $ 26,979
income
Operating
income        26.1    %      -              (1.3    )%      (0.8 )%     -         25.6    %
margin
Pre tax     $ 20,204      $  -           $  (1,335  )    $  751       $ -       $ 19,620
income
Net         $ 13,023      $  -           $  (848    )    $  467       $ 1,661   $ 14,303
income
Diluted
earnings    $ 0.28        $  -           $  (0.02   )    $  0.01      $ 0.04    $ 0.31
per share
                                                                                            

          
            Reconciliation of Adjusted Measurements to Actuals
            Three Months Ended September 30, 2012
                                                                    Deferred            
                         Share-based    Merger and      Debt            financing
                         compensation   restructuring   restructuring   costs        Income
                                                                        write        tax
            As                                                                       benefit
            Adjusted     expense (2)    expenses (3)    expense (6)     off (7)      (5)       Actual
            (1)
Revenues    $ 99,002     $  -           $  -            $  -            $ -          $ -       $ 99,002
EBITDA      $ 39,086     $  (2,090 )    $  (837   )     $  -            $ -          $ -       $ 36,159
EBITDA        39.5   %      (2.1   )%      (0.8   )%       -              -            -         36.5   %
margin
Operating   $ 28,047     $  -           $  (837   )     $  -            $ -          $ -       $ 27,210
income
Operating
income        28.3   %      -              (0.8   )%       -              -            -         27.5   %
margin
Pre tax     $ 19,240     $  -           $  (837   )     $  (2,812  )    $ (1,197 )   $ -       $ 14,394
income
Net         $ 12,228     $  -           $  (514   )     $  (1,729  )    $ (736   )   $ 1,149   $ 10,398
income
Diluted
earnings    $ 0.27       $  -           $  (0.01  )     $  (0.04   )    $ (0.02  )   $ 0.03    $ 0.23
per share
                                                                                                          

(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 and the severance related to our Chief
Accounting Officer in 2013. Merger and restructuring expenses are excluded in
the adjusted presentation.

(4) Represents the net sales in excess of fair value on impaired assets that
were written down and classified as held for sale and is excluded in the
adjusted presentation.

(5) Represents income tax benefits related to the statutory corporate income
tax rate reductions in the United Kingdom that are excluded in the adjusted
presentation.

(6) 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.

(7) Represents the unamortized deferred financing costs associated with the
$150.0 million of 6.875% Notes redeemed in August 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

            Nine Months Ended September 30, 2013
                                                      Asset                 
                          Share-based    Merger and      impairment
                          compensation   restructuring   (recovery)     Income
                                                                        tax
            As Adjusted   expense (2)    expenses (3)    charge, net    benefit   Actual
            (1)                                          (4)            (5)
Revenues    $ 300,950     $ -            $  -            $ -            $ -       $ 300,950
EBITDA      $ 117,028     $ (10,023 )    $  (2,053  )    $ (39,526 )    $ -       $ 65,426
EBITDA        38.9    %     (3.3    )%      (0.7    )%     (14.1   )%     -         21.7    %
margin
Operating   $ 80,420      $ -            $  (2,053  )    $ (39,526 )    $ -       $ 38,841
income
Operating
income        26.7    %     -               (0.7    )%     (14.1   )%     -         12.9    %
margin
Pre tax     $ 58,054      $ -            $  (2,053  )    $ (39,526 )    $ -       $ 16,475
income
Net         $ 36,939      $ -            $  (1,289  )    $ (25,547 )    $ 1,861   $ 11,964
income
Diluted
earnings    $ 0.80        $ -            $  (0.03   )    $ (0.55   )    $ 0.04    $ 0.26
per share
                                                                                              

            Reconciliation of Adjusted Measurements to Actuals
          
            Nine Months Ended September 30, 2012
                                                                     Deferred                         
                          Share-based    Merger and      Debt            financing              Acquisition
                          compensation   restructuring   restructuring   costs        Income    expenses
                                                                         write-       tax
            As Adjusted   expense (2)    expenses (3)    expense (6)     off (7)      benefit     (8    )    Actual
            (1)                                                                       (5)
Revenues    $ 280,972     $  -           $  -            $  -            $ -          $ -       $  -          $ 280,972
EBITDA      $ 103,150     $  (5,489 )       (1,600  )    $  -            $ -          $ -       $  (139  )    $ 95,922
EBITDA        36.7    %      (2.0   )%      (0.6    )%      -              -            -          -            34.1    %
margin
Operating   $ 70,569      $  -           $  (1,600  )    $  -            $ -          $ -       $  (139  )    $ 68,830
income
Operating
income        25.1    %      -              (0.6    )%      -              -            -          -            24.5    %
margin
Pre tax     $ 40,961      $  -           $  (1,600  )    $  (2,812  )    $ (1,889 )   $ -       $  (139  )    $ 34,521
income
Net         $ 25,783      $  -           $  (1,043  )    $  (1,729  )    $ (1,162 )   $ 1,156   $  (85   )    $ 22,920
income
Diluted
earnings    $ 0.57        $  -           $  (0.02   )    $  (0.04   )    $ (0.03  )   $ 0.03    $  -          $ 0.51
per share
                                                                                                                          

(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 and the severance related to our Chief
Accounting Officer in 2013. Merger and restructuring expenses are excluded in
the adjusted presentation.

(4) Represents the net impairment charge primarily for the write down on
certain assets classified as held for sale that is excluded in the adjusted
presentation.

(5) Represents income tax benefits related to the statutory corporate income
tax rate reductions in the United Kingdom that are excluded in the adjusted
presentation.

(6) 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.

(7) 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.

(8) Represents acquisition activity costs that are excluded in the adjusted
presentation.

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
The Equity Group Inc.
Fred Buonocore, 212-836-9607
Linda Latman, 212-836-9609
 
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