Mobile Mini (MINI) Misses Q4 EPS by 4c, Revenues Beat

Mobile Mini (NASDAQ: MINI) reported Q4 EPS of $0.53, $0.04 worse than the analyst estimate of $0.57. Revenue for the quarter came in at $160.9 million versus the consensus estimate of $157.09 million.

• Continued strong rental revenue growth in Tank & Pump Solutions (“T&P”) with a 16.1% year-over-year increase.
• Delivered solid Storage Solutions (“SS”) rental revenue year-over-year growth of 8.3%, with record high seasonal business.
• Reached all-time high T&P OEC fleet on rent and drove average OEC utilization to 76.0% for the quarter, up 300 bps compared to the prior-year quarter.
• Increased total SS average units on rent by 2.7% year-over-year, with average unit utilization of 85.2% during the quarter.
• Raised SS core (excluding seasonal) rental rates in North America by 3.4%.
• Achieved adjusted EBITDA growth of 13.7%, compared to the prior-year quarter and expanded adjusted EBITDA margin by 140 basis points to 39.3%.
• Generated robust net cash from operating activities of $43.9 million and free cash flow of $24.9 million.
• Decreased our leverage ratio to 4.2x at December 31, 2018 from 5.0x December 31, 2017, as a result of both reduced debt and increased adjusted EBITDA.

CEO Comments

Erik Olsson, Mobile Mini’s Chief Executive Officer, remarked, “Fourth quarter 2018 results are the culmination of an exceptional year for Mobile Mini. Consolidated rental revenues were up 9.8% year-over-year, despite increasingly challenging comparisons. Seasonal rentals in North America exceeded the record-breaking numbers from the prior-year, contributing to rental revenue growth of 8.3% year-over year for consolidated Storage Solutions. Tank & Pump Solutions delivered growth of 16.1% by capitalizing on the wide-spread momentum in our customer end-segments and our exceptional overall service. By leveraging our infrastructure and efficiencies, we converted this robust top-line growth into increased profitability. Our adjusted EBITDA margin grew to 39.3% and we achieved $63.3 million in adjusted EBITDA, an increase of 13.7%, resulting in very strong free cash flow of $24.9 million for the fourth quarter of 2018.”

Mr. Olsson continued, “In 2018, we executed on our strategic plan and delivered outstanding results. Mobile Mini enters 2019 a financially stronger and more efficient company than ever before. We are committed to further differentiating Mobile Mini from our competitors by partnering with our customers to develop innovative solutions to their rental needs and striving to continuously improve processes throughout the Company. In North America, our Storage Solutions pending orders are significantly up compared to a year ago and our Tank & Pump business is positioned to capitalize on the strong demand from its end-markets. In the United Kingdom, where Brexit is causing some uncertainty in the general economy, our business has remained stable. Overall, our pipeline is healthy across all segments and economic indicators are solid. For 2019, we expect continued margin expansion as well as meaningful de-leveraging and we expect to exceed our Evergreen model for rental revenue growth.”

For earnings history and earnings-related data on Mobile Mini (MINI) click here.

You May Also Be Interested In

• Nomura/Instinet Upgrades Genting Singapore (GENS:SP) (GIGNY) to Neutral
• Birchtech Corp. (BCHT) Misses Q2 EPS by 7c
• KULR Technology Group (KULR) Misses Q2 EPS by 39c