Mobile Mini Reports Q4’13 Results

  Mobile Mini Reports Q4’13 Results  Business Wire  TEMPE, Ariz. -- 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     inrepairs 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.”  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.                            (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                    December 31,                     December 31,                      2013           2013            2012          2012 Revenues:          Actual        Adjusted (1)     Actual       Adjusted                                                                    (1) 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          64,809           64,805          54,470          54,319 general expenses (2) Merger and restructuring        349              -               5,533           - expenses (3) Asset impairment           (784    )        -               -               - charge, net (4) Depreciation and                 8,993        8,993         9,036       9,036   amortization Total costs         78,839       79,270        73,956      68,272  and expenses Income from          27,960           27,529          25,890          31,574 operations                                                                     Other income (expense): Interest             1                1               -               - income Interest             (7,151  )        (7,151  )       (7,719 )        (7,719 ) expense Foreign currency            (1      )     (1      )      -           -       exchange Income from continuing operations           20,809           20,378          18,171          23,855 before provision for income taxes Provision for       7,717        7,551         6,873       9,061   income taxes Income from continuing           13,092           12,827          11,298          14,794 operations Loss from discontinued        (1,134  )     -             (40    )     -       operation, net of tax (5) Net income         $ 11,958     $  12,827       $ 11,258    $  14,794                                                                      Earnings per share: Basic: Income from continuing         $ 0.29          $  0.28          $ 0.25         $  0.33 operations Loss from discontinued        (0.03   )     -             -           -       operation Net Income         $ 0.26       $  0.28         $ 0.25      $  0.33    Diluted: Income from continuing         $ 0.28          $  0.28          $ 0.25         $  0.33 operations Loss from discontinued        (0.02   )     -             -           -       operation 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                                                                             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.       Represents acquisition activity costs and, in 2012, excludes estimated (2)   damages, net of estimated insurance recoveries, to our assets caused by       natural disasters 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 net sales in excess of fair value of certain assets that (4)   were written down and classified as held for sale and is excluded in the       adjusted presentation.       Represents our Netherlands operation that was sold in December 2013 and (5)   reported as discontinued operation. The 2013 amount also includes a $1.2       million after-tax loss on the sale.    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          2013            2012          2012 Revenues:          Actual        Adjusted        Actual        Adjusted                                    (1)                             (1) 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          237,567         237,563         218,709         218,419 general expenses (2) Merger and restructuring        2,402           -               7,123           - expenses (3) Asset impairment           38,705          -               -               - charge, net (4) Depreciation and                 35,432      35,432        35,982      35,982   amortization Total costs         339,519     298,408       284,992     277,579  and expenses Income from          66,967          108,078         94,904          102,317 operations                                                                     Other income (expense): Interest             1               1               1               1 income Interest             (29,467 )       (29,467 )       (37,268 )       (37,268 ) expense Debt restructuring        -               -               (2,812  )       - expense (5) Deferred financing            -               -               (1,889  )       - costs write-off (6) Foreign currency            (2      )    (2      )      (4      )    (4      ) exchange Income from continuing operations           37,499          78,610          52,932          65,046 before provision for income taxes Provision for income taxes        12,275      28,704        18,509      24,272   (7) Income from continuing           25,224          49,906          34,423          40,774 operations Loss from discontinued        (1,302  )    -             (245    )    -        operation, net of tax (8) Net income         $ 23,922     $ 49,906       $ 34,178     $ 40,774                                                                       Earnings per share: Basic: Income from continuing         $ 0.55          $ 1.10          $ 0.77          $ 0.91 operations Loss from discontinued        (0.02   )    -             -           -        operation Net Income         $ 0.53       $ 1.10         $ 0.77       $ 0.91     Diluted: Income from continuing         $ 0.55          $ 1.08          $ 0.76          $ 0.90 operations Loss from discontinued        (0.03   )    -             -           -        operation 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          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.       Represents acquisition activity costs and, in 2012, excludes estimated (2)   damages, net of estimated insurance recoveries, to our assets caused by       natural disasters 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 net impairment charge primarily for the write-down of (4)   certain assets to fair value and classified as held for sale and is       excluded in the adjusted presentation.       In 2012, this represents the redemption premiums and the unamortized (5)   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.       In 2012, this represents the unamortized deferred financing costs       associated with the $150.0 million of 6.875% Notes redeemed in August (6)   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.       Provision for income taxes includes approximately $1.9 million and $1.2 (7)   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.       Represents our Netherlands operation that was sold in December 2013 and (8)   reported as discontinued operation. The 2013 amount also includes a $1.2       million after-tax loss on the sale.    Mobile Mini, Inc. Condensed Consolidated Balance Sheets (in thousands except par value data) (includes effects of rounding)                                               December 31,    December 31,                                                2013              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         488               482 at December 31, 2012 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,           (39,669   )      (39,300   ) respectively Total stockholders' equity                      855,544         809,519    Total liabilities and stockholders' equity     $ 1,677,374      $ 1,727,560     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                 1,948              - operation Gain on sale of lease fleet units                (9,682    )        (11,781  ) Loss (gain) on disposal of property,             247                (130     ) plant and equipment Deferred income taxes                            11,012             18,107 Tax benefit shortfall on equity award            (837      )        (3       ) transactions 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               677                - operation 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                 (15,792   )        (12,741  ) equipment Proceeds from sale of property, plant,          1,970            1,497     and equipment Net cash used in investing activities           (6,020    )       (29,383  )                                                                    CASH FLOWS FROM FINANCING ACTIVITIES: Net (repayments) borrowings under lines          (123,076  )        97,242 of credit Redemption of 6.875% senior notes due            -                  (150,000 ) 2015 Redemption premiums of 6.875% senior             -                  (2,579   ) notes due 2015 Deferred financing costs                         -                  (8,075   ) Proceeds from issuance of notes payable          -                  398 Principal payments on notes payable              (310      )        (403     ) Principal payments on capital lease              (408      )        (947     ) obligations 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      $  1,114           $ 831       franchise taxes Equipment acquired through capital lease      $  8,547           $ 300       and financing obligations    Mobile Mini, Inc. Non-GAAP Reconciliations (in thousands) (includes effects of rounding)                   Three Months Ended December   Twelve Months Ended                    31,                             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         (712    )       23              (732    )       (11     ) operation Interest paid        (10,174 )       (10,814 )       (25,947 )       35,145  ) Income and franchise            (152    )       (109    )       (1,114  )       (831    ) taxes paid Share-based compensation         3,945           3,899           14,714          9,575 expense Asset impairment           (736    )       -               38,217          - (recovery) charge, net Loss on disposal of          1,948           -               1,948           - discontinued operation Gain on sale of lease fleet       (1,984  )       (2,330  )       (9,682  )       (11,781 ) units Loss (gain) on disposal of property,            303             133             247             (130    ) plant and equipment 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              634             (387    )       653             537 expenses Other assets and                  (2      )       103             10              (161    ) intangibles Accounts payable and         (3,919  )    999           (2,728  )    (440    ) accrued liabilities Net cash provided by        $ 30,637     $ 32,585       $ 116,111    $ 90,949   operating activities                                                                     Reconciliation of net income to EBITDA and adjusted EBITDA: Net income         $ 11,958        $ 11,258        $ 23,922        $ 34,178 Loss from discontinued         1,134           40              1,302           245 operation, net of tax Interest             7,151           7,719           29,467          37,268 expense Provision for        7,717           6,873           12,275          18,509 income taxes Depreciation and                  8,993           9,036           35,432          35,982 amortization Debt restructuring        -               -               -               2,812 expense Deferred financing           -           -             -           1,889    costs write-off EBITDA               36,953          34,926          102,398         130,883 Share-based compensation         3,933           1,662           13,956          7,151 expense Merger and restructuring        349             5,533           2,402           7,123 expenses Acquisition and other            4               151             4               290 expenses Asset impairment          (784    )    -             38,705      -        (recovery) charge, net Adjusted           $ 40,455     $ 42,272       $ 157,465    $ 145,447  EBITDA                                                                     Reconciliation of net cash provided by operating activities to free cash flow: Net cash provided by        $ 30,637        $ 32,585        $ 116,111       $ 90,949 operating activities                                                                     Additions to         (5,215  )       (11,151 )       (28,826 )       (43,934 ) lease fleet Proceeds from sale of lease        10,540          5,959           35,951          29,358 fleet units Additions to property,            (5,141  )       (1,570  )       (15,792 )       (12,741 ) plant and equipment Proceeds from sale of property,           957         69            1,970       1,497    plant and equipment Net capital expenditures,       1,141       (6,693  )      (6,697  )    (25,820 ) excluding acquisitions                                                              Free cash flow     $ 31,778     $ 25,892       $ 109,414    $ 65,129      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                             Share-based    Merger                        Asset        Loss from                                    compensation     and               Acquisition     impairment     discontinued                                                restructuring               As Adjusted   expense (2)    expenses (3)    expenses      charge,      operation,     Actual               (1)                                                (4)             net (5)        net (6) Revenues      $ 106,799       $   -            $  -              $   -           $ -            $  -             $ 106,799 EBITDA        $ 40,455        $   3,933 )      $  (349   )       $   (4   )      $ 784          $  -             $ 36,953 EBITDA          37.9    %         (3.7  )%        (0.3   )%          -             -(0.7 )%        -               34.6    % margin Operating     $ 27,529        $   -            $  (349   )       $   (4   )      $ 784          $  -             $ 27,960 income Operating income          25.8    %         -               (0.3   )%          -             -(0.7 )%        -               26.2    % margin Pre tax       $ 20,378        $   -            $  (349   )       $   (4   )      $ 784          $  -             $ 20,809 income Net           $ 12,827        $   -            $  (236   )       $   (3   )      $ 503          $  (1,134  )     $ 11,958 income Diluted earnings      $ 0.28          $   -            $  (0.01  )       $   -           $ 0.01         $  (0.02   )     $ 0.26 per share                Reconciliation of Adjusted Measurements to Actuals               Three Months Ended December 31, 2012                            Share-based    Leasing,    Merger          Loss from                                                    selling                              compensation     and           and               discontinued                                               general       restructuring               As                              expenses                        operation,               Adjusted     expense (2)    (7)         expenses (3)    net (6)        Actual               (1) Revenues      $ 99,846       $  -             $ -           $  -              $   -            $ 99,846 EBITDA        $ 42,272       $  (1,662 )      $ (151 )      $  (5,533  )      $   -            $ 34,926 EBITDA          42.3   %        (1.7   )%       (0.2 )%        (5.5    )%         -              35.0   % margin Operating     $ 31,574       $  -             $ (151 )      $  (5,533  )      $   -            $ 25,890 income Operating income          31.6   %        -               (0.2 )%        (5.5    )%         -              25.9   % margin Pre tax       $ 23,855       $  -             $ (151 )      $  (5,533  )      $   -            $ 18,171 income Net           $ 14,794       $  -             $ (93  )      $  (3,403  )      $   (40   )      $ 11,258 income Diluted earnings      $ 0.33         $  -             $ -           $  (0.08   )      $   -            $ 0.25 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. Merger and restructuring expenses       are excluded in the adjusted presentation. (4)   Represents acquisition activity costs that are excluded in the adjusted       presentation.       Represents the net sales in excess of fair value of certain assets that (5)   were written down and classified as held for sale and is excluded in the       adjusted presentation.       Represents our Netherlands operation that was sold in December 2013 and (6)   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. 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                             Share-based    Merger                        Asset                    Loss from                                    compensation     and               Acquisition     impairment       Income      Discontinued                                                restructuring                                      tax               As Adjusted   expense (2)    expenses (3)    expenses      charge, net    benefit   operation,     Actual               (1)                                                (4)             (5)              (6)         net (7) Revenues      $ 406,486       $ -              $  -              $   -           $ -              $ -         $  -             $ 406,486 EBITDA        $ 157,465       $ (13,956 )      $  (2,402  )      $   (4   )      $ (38,705 )      $ -         $  -             $ 102,398 EBITDA          38.7    %       (3.4    )%        (0.6    )%         -             (9.5    )%       -            -               25.2    % margin Operating     $ 108,078       $ -              $  (2,402  )      $   (4   )      $ (38,705 )      $ -         $  -             $ 66,967 income Operating income          26.6    %       -                 (0.6    )%         -             (9.5    )%       -            -               16.5    % margin Pre tax       $ 78,610        $ -              $  (2,402  )      $   (4   )      $ (38,705 )      $ -         $  -             $ 37,499 income Net           $ 49,906        $ -              $  (1,525  )      $   (3   )      $ (25,015 )      $ 1,861     $  (1,302  )     $ 23,922 income Diluted earnings      $ 1.08          $ -              $  (0.03   )      $   -           $ (0.54   )      $ 0.04      $  (0.03   )     $ 0.52 per share                Reconciliation of Adjusted Measurements to Actuals               Twelve Months Ended December 31, 2012                             Share-based    Leasing,   Merger                        Debt            Deferred               Loss from                                                     selling                               compensation     and          and               Acquisition     restructuring     financing      Income      discontinued                                                general      restructuring                                       costs          tax               As Adjusted   expense (2)    expenses   expenses (3)    expenses      expense (9)     write-off    benefit   operation,     Actual               (1)                              (8)                            (4)                               (10)           (6)         net (7) Revenues      $ 379,896       $  -             $ -          $  -              $  -            $  -              $ -            $ -         $   -            $ 379,896 EBITDA        $ 145,447       $  (7,151 )      $ (151 )     $  (7,123  )      $  (139  )      $  -              $ -            $ -         $   -            $ 130,883 EBITDA          38.3    %        (1.9   )%       -             (1.9    )%        -               -                -              -             -              34.5    % margin Operating     $ 102,317       $  -             $ (151 )     $  (7,123  )      $  (139  )      $  -              $ -            $ -         $   -            $ 94,904 income Operating income          26.9    %        -               -             (1.9    )%        -               -                -              -             -              25.0    % margin Pre tax       $ 65,046        $  -             $ (151 )     $  (7,123  )      $  (139  )      $  (2,812  )      $ (1,889 )     $ -         $   -            $ 52,932 income Net           $ 40,774        $  -             $ (93  )     $  (4,438  )      $  (85   )      $  (1,729  )      $ (1,162 )     $ 1,156     $   (245  )      $ 34,178 income Diluted earnings      $ 0.90          $  -             $ -          $  (0.10   )      $  -            $  (0.04   )      $ (0.03  )     $ 0.03      $   -            $ 0.76 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        the restructuring of our operations including the severance related to (3)    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.        Represents the net impairment charge primarily for the write-down of (5)    certain assets to fair value and classified as held for sale and is        excluded in the adjusted presentation.        Represents income tax benefits related to the statutory corporate (6)    income tax rate reductions in the United Kingdom that are excluded in        the adjusted presentation.        Represents our Netherlands operation that was sold in December 2013 and (7)    reported as discontinued operation. The 2013 amount also includes a        $1.2 million after-tax loss on the sale.        Represents the net estimated damages to our assets caused by natural (8)    disasters and acquisition activity costs that are excluded in the        adjusted presentation.        Represents the redemption premiums and the unamortized original (9)    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.        Represents the unamortized deferred financing costs associated with the        $150.0 million of 6.875% Notes redeemed in August 2012 and a portion of (10)   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.   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.  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