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 in repairs 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.”