Mobile Mini, Inc. (NASDAQ GS: MINI) today reported GAAP and non-GAAP financial results for the first quarter ended March 31, 2012.
First Quarter 2012 Compared to First Quarter 2011
- Total revenues rose 6.1% to $87.9 million from $82.9 million;
- Leasing revenues rose 6.8% to $77.6 million from $72.7 million;
- Lease revenues comprised 88.3% of total revenues compared to 87.7% of total revenues;
- Sales revenues rose 4.2% to $9.8 million from $9.4 million;
- Sales margins were 39.8% compared to 36.0%;
- Non-GAAP EBITDA was $28.4 million, compared to $29.8 million;
- Non-GAAP net income rose 6.3% to $5.4 million from $5.1 million; and
- Non-GAAP diluted earnings per share was $0.12 for both periods.
Other First Quarter 2012 Highlights
- Free cash flow was $13.9 million;
- Net debt was paid down by $4.2 million after payment of $7.4 million in financing costs for the Company’s new asset-based revolving credit facility (“ABL”);
- Yield (total lease revenues per unit on rent) increased 4.4% compared to the first quarter of 2011, primarily due to an increase in trucking revenues and a year-over-year average rental rate increase of 2.1%;
- Average utilization rate was 56.8% compared to 53.9%;
- Utilization at March 31, 2012 was 57.3%, an increase from 54.9% the prior year; and
- Excess availability under our ABL at March 31, 2012 increased to $550.7 million.
Non-GAAP reconciliation tables are on page 5 of this press release, and show the nearest comparable GAAP results to the non-GAAP results.Business Overview Mobile Mini’s Chairman, President & CEO, Steven Bunger stated, “Although our first quarter is historically our seasonally slowest, we experienced comparable quarter gains in our most important performance benchmarks – utilization, yield and, as a result, lease revenues. This was in fact the fifth sequential reporting period of comparable quarter lease revenue growth. That said, we were less than satisfied by the rate of lease revenue growth in North America. Our core business activity was not as robust as we would have expected even in our seasonally weakest quarter. In addition, the lower growth can be attributed to a higher volume in the number of pick-ups in the first quarter given our unusually high holiday rental demand the prior year and changes we made to our call center. During the first quarter, our National Sales Center team was structured into dedicated in-bound and out-bound groups. This focus will allow us to more effectively size our call center teams to put more emphasis on customer relationships, account ownership and finding new opportunities. With our sales staff refocused on getting storage units on rent with our core longer term customers, utilization has improved from a first quarter average of 56.8% to 57.3% at the end of March, up to 57.6% at April 30 th. We believe this improvement in utilization will continue and translate into increased lease revenues and profitability as the year progresses.” Mr. Bunger continued, “Non-GAAP EBITDA and non-GAAP EBITDA margin also fell below our expectations due to several large expense items designed to support growth over the longer term. The three most significant items included approximately $700,000 associated with the start-up of our consumer initiative, such as leasing warehouse space, hiring and training personnel, and advertising production costs. We also incurred approximately $500,000 of expenses from lease fleet repositioning and new location start-up costs. Finally, there was a 13% increase in deliveries of steel and mobile offices, which drove higher repair and maintenance expenses.”