Business Overview

Mobile Mini’s Chairman, President & CEO, Steven Bunger stated, “Building upon the favorable performance of the first nine months, 2011 ended on an especially strong note. The top line growth in the final quarter was almost entirely due to an 11.5% increase in comparable quarter lease revenues, furthering the momentum generated when 2011 first, second and third quarter lease revenues rose 3.6%, 7.6% and 9.3% over the respective 2010 quarters. Improvements in utilization and yield drove the comparable quarter increase in lease revenues. Average utilization rose to 61.0% from 55.5% in the final quarter of 2010, as units on rent continued to increase in both North America and Europe. Beyond an improving economic environment, the gains in utilization reflect the opening of new locations in North America, the repositioning of lease assets to these and other high demand locations, and very strong holiday season rentals in 2011 versus 2010. The improvement in lease revenues, as noted, was also due to yield, which was 5.7% ahead of the fourth quarter of 2010 due to increased trucking revenues and a year-over-year average rental rate increase of 2.2%.”

Mr. Bunger pointed out, "We have been investing in the future growth of our business, most notably by entering 12 new markets during 2011 including two acquisitions, just prior to year-end, one in Calgary, Alberta and one in Huntsville, AL. To establish the Calgary branch, our fourth location in Canada, we acquired the largest portable storage operator in that area. For both the Calgary branch and the Huntsville operational yard, we purchased revenue-generating lease fleets, enabling us to forego the majority of start-up expenses in these new markets. Our 2011 locations have been ramping up units on lease and performing according to plan.”

He continued, "As a result of an increase in utilization coupled with our operating leverage, our non-GAAP EBITDA margins increased 2.0 percentage points from 36.8% in the 2011 third quarter to 38.8% for the fourth quarter. On a year-over-year basis, the combination of more deliveries which have lower associated margins, higher repair and maintenance expense, long-distance fleet repositioning, as well as entering 12 new markets, slightly depressed Mobile Mini's fourth quarter non-GAAP EBITDA margin to 38.8% from last year's 40.0%. We see these investments as positive signs that our growth initiatives are well underway.”

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