Mobile Mini, Inc. Reports 21st Consecutive Quarter of Record Operating Results and 19.3% EBITDA Increase; Adds 2 New Branches For Total of 38 and Ups 2002 New Market Target.Business Editors TEMPE, Ariz.--(BUSINESS WIRE)--May 6, 2002 Earnings Per Share for 2002 Forecast at $1.47 (before Extraordinary Charge), or 10% Ahead of 2001 Mobile Mini, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on National Market: MINI) today announced its best ever first quarter operating results. First Quarter 2002 vs. First Quarter 2001 - Net income, exclusive of an extraordinary charge, rose 40.3% to $4.5 million or $0.31 per diluted share from $3.2 million or $0.26 per diluted share; results for the first quarter 2001 include the impact of goodwill amortization. Had the Company been required to adopt SFAS No. 142 in 2001, the first quarter 2001 net income and earnings per diluted share would have been $3.4 million and $0.27, respectively; - Operating income rose 19.7% to $9.8 million and EBITDA rose 19.3% to $11.9 million compared to the prior year's first quarter; - Revenues rose 18.5% to $29.4 million from $24.8 million; - Lease revenues increased 18.8% and represented 85.4% of total revenues, up from 85.1% of total revenue in the corresponding period last year; - Internal growth in leasing revenues (defined as growth in locations open one year or more, but excluding growth arising from tuck-in acquisitions in those markets) was 11.2%; - Average utilization rate for the quarter was 75.9% while yield (revenue per container on lease) remained the same; and - In connection with a new five-year, $250 million revolving line of credit entered into in February 2002, the Company recorded an after tax, non-cash, extraordinary charge of approximately $800,000 ($0.06 per diluted share) relating to the write-off of certain issuance costs associated with the former loan. Discussing first quarter results, Mobile Mini's Chairman, President & CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Steven Ste´ven n. 1. Voice; speech; language. Ye have as merry a steven As any angel hath that is in heaven. - Chaucer. 2. An outcry; a loud call; a clamor. To set steven to make an appointment. Bunger stated, "While the first quarter set new records, we did see a slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in the pace of growth. Our internal growth rate was 22.7% in last year's first quarter compared to 11.2% this year, but we are pleased to report that we did not see erosion in pricing as revenue per container on lease remained essentially constant with last year's first quarter. The internal growth rate, while still in double digits Double Digits was a pricing game on the American television game show, The Price Is Right. Played from April 20, 1973 through May 18, 1973's show, it was played for a car and used small prizes. , has been curtailed by general economic and industry-wide forces. These are most pronounced in the construction industry where non residential construction fell 17% from the first quarter last year." Mobile Mini Enters Little Rock and Fort Worth The Company also reported its entry into two new markets, bringing the current total to 38 branches in 20 states. The newest markets are Little Rock, AR and Fort Worth, TX, which in addition to Columbus Columbus. 1 City (1990 pop. 178,681), seat of Muscogee co., W Ga., at the head of navigation on the Chattahoochee River; settled and inc. 1828 on the site of a Creek village. , OH, announced in February February: see month. of this year, brings the 2002 year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. new branch total to three. Mobile Mini's entry into Little Rock was conducted through separate asset purchases from Foy Trailer In communications, a code or set of codes that make up the last part of a transmitted message. See trailer label. Rental, Inc. and TCT TCT The Capital Times (Madison, WI newspaper) TCT Transcatheter Cardiovascular Therapeutics TCT The Coroner's Toolkit TCT Trans Canada Trail TCT Tcl Core Team TCT Tsukuba College of Technology (Japan) Leasing and Rental, Inc. The Company also acquired certain portable storage assets from Foy Trailer Rental in Memphis, a city where Mobile Mini has been operating since 1999. The Memphis tuck-in acquisition Tuck-In Acquisition The acquisition of a company made for the sole purpose of merging it into a division of the acquirer. Sometimes referred to as "bolt-on acquisitions." Notes: adds greater market dominance Market dominance is a measure of the strength of a brand, product, service, or firm, relative to competitive offerings. There is often a geographic element to the competitive landscape. , economies of scale and immediate accretion The act of adding portions of soil to the soil already in possession of the owner by gradual deposition through the operation of natural causes. The growth of the value of a particular item given to a person as a specific bequest under the provisions of a will between the to earnings per share. The total purchase price for the Little Rock and Memphis transactions was $5.7 million. In addition, Mobile Mini announced it was opening a facility in Forth Worth, Texas. This area, which was previously served by its Dallas Dallas, city (1990 pop. 1,006,877), seat of Dallas co., N Tex., on the Trinity River near the junction of its three forks; inc. 1871. The second largest Texas city, after Houston, and the eighth largest U.S. facility, will now comprise a stand-alone (jargon) stand-alone - Capable of operating without other programs, libraries, computers, hardware, networks, etc. Exactly what is absent is presumed to be obvious from context. "We only run Windows on stand-alone PCs because it's too dangerous to run it on networked ones." location. Mr. Bunger stated, "We believe that the portable storage business is essentially a local business and that to effectively expand the Fort Worth market will require a local manager and local sales force. We are devoted to expanding our presence in this market and to become the dominant portable storage company in Fort Worth as we are in Dallas and several other Texas cities." Mr. Bunger stated, "Little Rock, the capital of Arkansas Arkansas, river, United States Arkansas (ärkăn`zəs, är`kənsô'), river, c.1,450 mi (2,330 km) long, rising in the Rocky Mts., central Colo. , is the state's largest city. The greater metropolitan area is home to approximately 550,000 people. It has a diverse economy encompassing consumer, agricultural and industrial product manufacturing companies and divisions of larger corporations along with medical institutions, colleges and universities, and military installations including a U.S. Air Force base and a district office of the U.S. Army Corps of Engineers. We are now moving rapidly to transform this location into the Mobile Mini branch model through sales and marketing programs, product differentiation Product Differentiation A source of competitive advantage that depends on producing some item that is regarded to have unique and valuable characteristics. and customer service, systems, and training." Mr. Bunger noted, "Our internal growth rate and financial performance continue to outpace out·pace tr.v. out·paced, out·pac·ing, out·pac·es To surpass or outdo (another), as in speed, growth, or performance. outpace Verb [-pacing, most other companies renting similar types of assets and we believe we are gaining market share. In fact, current industry market dynamics are creating a more fertile fer·tile adj. 1. Capable of conceiving and bearing young. 2. Fertilized. Used of an ovum. environment for new branch expansion, as local operators become increasingly motivated mo·ti·vate tr.v. mo·ti·vat·ed, mo·ti·vat·ing, mo·ti·vates To provide with an incentive; move to action; impel. mo to exit the business due to lower utilization rates and lack of capital, product diversity, and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. information systems. The pipeline of new branch locations is full of candidates, and we believe a minimum of nine new Mobile Mini locations, rather than six, will be accomplished before the year is out. We expect to complete several additional acquisitions before the end of the second quarter. The high end of our goal remains at 12. In general, new markets are earnings neutral in year one, but are the drivers for accelerated growth in succeeding years. The new $250 million credit facility that we entered into earlier this year, provides us with sufficient availability to achieve our expansion goals." Discussing the prospects for the balance of the year, Larry Lar´ry n. 1. Same as Lorry, or Lorrie. Trachtenberg Trachtenberg (or Trachtenburg) (Трахтенберг, טרחטנבּרג or , Executive Vice President & CFO See Chief Financial Officer. , commented, "The first quarter is historically our weakest, and therefore we anticipate increasing revenue and improved utilization as the year unfolds. While prices have been holding up, our general and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. have risen and should continue to do so due in large part to across-the-board increases in insurance premium costs. While economic improvement this year could alter our current appraisal, we anticipate that the internal growth for the balance of the year will remain below last year's level. Since most of our cost of rentals is fixed or semi-variable, we enjoy significant operating leverage Operating Leverage A measurement of the degree to which a firm or project relies on fixed rather than variable costs. Notes: The higher the degree of operating leverage, the greater the potential danger from forecasting risk. , benefiting us when business conditions are strong and working against us during periods of slower growth, which is what we anticipate for the balance of the year. Following a review of branch performance expectations and budgets, we currently anticipate $1.47 in earnings per share (before extraordinary charge) for 2002, or a 10% increase over 2001. The operating leverage that we have enjoyed for the past five years should factor into our financial performance in 2003, when, with the resumption RESUMPTION. To reassume; to promise again; as, the resumption of payment of specie by the banks is general. It also signifies to take things back; as the government has resumed the possession of all the lands which have not been paid for according to the requisitions of the law, and the of a healthier economy, we should return to an earnings per share growth rate of 20% or higher." Conference Call Mobile Mini management will be conducting a financial community conference call on Tuesday Tuesday: see week. , May 7, 2002 at 2:00 pm Eastern Daylight Time. Interested parties may listen to the conference call live over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the via the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of the Company's web site at www.mobilemini.com; a replay will also be available on the website for approximately 7 days. To listen to the live call, please go to the web site 15 minutes early to register, download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. and install any necessary audio software. Mobile Mini, Inc. is the nation's leading provider of portable storage solutions through its lease fleet of over 75,000 portable storage units and portable offices. The Company currently has 38 branches and operates in 20 states. For two consecutive years Mobile Mini was named to Forbes Forbes , B(ertie) C(harles) 1880-1954. American publisher and businessman who founded and edited (1916-1954) Forbes magazine. His son Malcolm Stevenson Forbes Magazine's list of the 200 Best Small Companies in America and in 2001, the Company was named to the inaugural list of the 100 Fastest-Growing Publicly Held Small Businesses in America by Fortune Magazine (Small Business). 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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , particularly regarding operating prospects, expansion opportunities and earnings estimates for 2002 and 2003, 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.
Mobile Mini, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(In 000's except for earnings per share)
Three Months Ended March 31,
----------------------------
2002 2001
--------- --------
Revenues:
Leasing $ 25,088 $ 21,109
Sales 4,079 3,509
Other 221 175
--------- --------
Total revenues 29,388 24,793
Costs and expenses:
Cost of sales 2,682 2,303
Leasing, selling and general expenses 14,791 12,509
Depreciation and amortization 2,110 1,793
--------- --------
Income from operations 9,805 8,188
Other income (expense):
Interest income 6 16
Interest expense (2,427) (2,939)
--------- --------
Income before provision for
income taxes & extraordinary item 7,384 5,265
Provision for income taxes 2,880 2,053
--------- --------
Income before extraordinary item 4,504 3,212
Extraordinary item,
net of income tax benefit of $507 (793) -
--------- --------
Net income $ 3,711 $ 3,212
========= ========
Earnings per share:
Basic:
Income before extraordinary item $ 0.32 $ 0.27
Extraordinary item (0.06) -
--------- --------
$ 0.26 $ 0.27
========= ========
Diluted:
Income before extraordinary item $ 0.31 $ 0.26
Extraordinary item (0.06) -
--------- --------
$ 0.25 $ 0.26
========= ========
Weighted average number of common and
common share equivalents outstanding:
Basic 14,227 11,910
========= ========
Diluted 14,621 12,348
========= ========
Number of shares outstanding 14,231 13,874
========= ========
EBITDA(1) $ 11,921 $ 9,997
========= ========
(1) Earnings before interest expense, taxes, depreciation and
amortization.
Mobile Mini, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(in 000's, except for share amounts)
March 31, December 31,
2002 2001
---------- ----------
ASSETS
Cash $ 251 $ 506
Receivables, net 14,138 15,748
Inventories 15,635 13,737
Portable storage unit least fleet, net 286,862 277,020
Property, plant and equipment, net 31,915 31,611
Deposits and prepaid expenses 4,433 4,051
Other assets and intangibles, net 2,477 2,073
Goodwill 32,798 31,760
--------- ---------
Total Assets $ 388,509 $ 376,506
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $ 6,519 $ 7,828
Accrued liabilities 9,414 13,327
Line of credit 170,547 153,702
Notes payable 2,015 8,675
Obligations under capital leases 107 114
Deferred income taxes 33,820 31,157
--------- ---------
Total Liabilities 222,422 214,803
--------- ---------
Commitments and contingencies
Stockholder' Equity:
Common Stock $0.01 par value,
95,000,000 shares authorized,
14,223,957 and 14,231,707 issued and
outstanding at December 31, 2001
and March 31, 2002, respectively 142 142
Additional paid-in capital 115,528 115,434
Retained earnings 51,855 48,144
Accumulated other comprehensive loss (1,438) (2,017)
--------- ---------
Total Stockholders' Equity 166,087 161,703
--------- ---------
Total Liabilities
and Stockholders' Equity $ 388,509 $ 376,506
========= =========
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