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
 
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