Mobile Mini (MINI) Tops Q1 EPS by 9c, Revenues Beat

Mobile Mini (NASDAQ: MINI) reported Q1 EPS of $0.51, $0.09 better than the analyst estimate of $0.42. Revenue for the quarter came in at $149 million versus the consensus estimate of $145.17 million.

First Quarter 2020 Highlights

• Drove healthy year-over-year growth of 3.2% in North America Storage Solutions rental revenue.
• Solid year-over-year rate increase of 3.7% and 1.9% in North America and U.K. Storage Solutions, respectively.
• Grew consolidated adjusted EBITDA 6.5%, year-over-year, and expanded adjusted EBITDA margin by 260 basis points to 40.2%, driven by a 420 basis point year-over-year increase for Storage Solutions.
• Generated cash from operating activities of $33.2 million for the quarter, resulting in free cash flow of $22.5 million, a nearly 40% increase over the prior year.
• Decreased leverage ratio to 3.5x as of March 31, 2020 compared to 3.6x as of December 31, 2019 and 4.2x as of December 31, 2018.
• Completed one acquisition in the quarter, strengthening our existing operations in Dallas, Texas.

CEO Comments

Kelly Williams, Mobile Mini’s President and Chief Executive Officer, remarked, “I would like to thank Mobile Mini employees for their hard work and dedication. The Mobile Mini team has risen to the challenges of maintaining operations in these unprecedented circumstances. Safety is our most important core value and we are dedicated to the health and safety of our employees and customers while providing uninterrupted delivery of our premium products and services across all our business segments. Though we have been deemed an essential business, this pandemic is unprecedented and the full extent of its impact on our operations is uncertain. While our strong first quarter was minimally impacted by the COVID-19 outbreak, we do expect a decrease in demand for our products and services in the near-term, leading to a year-over-year and sequential decrease in our second quarter 2020 rental revenues. The majority of our fleet currently on-rent is being utilized to contain inventory, supplies or other products, which translates into ongoing storage requirements for many of our clients. Our pipeline of pending orders, however, is down compared to the prior-year due to postponed projects in our end markets which will lead to reduced rental revenue in the near-term, including a decrease in trucking revenue due to reduced delivery and pickup activity. Ultimately, some postponed projects could move into late 2020 or early 2021 and some could be cancelled.”

Mr. Williams continued, “Mobile Mini’s flexible and efficient business structure is demand driven, allowing us to minimize the effect of reduced revenues on adjusted EBITDA and free cash flows by managing expenses and capital expenditures. We have already instituted several cost-savings adjustments to our business and have reduced capital expenditures. Our sophisticated, cutting-edge technology provides real-time management insight into our business which, when combined with our newly developed supply chain processes, further enhances our agility with respect to proactive expense control and profit optimization. Mobile Mini enters the second quarter of 2020 from a position of financial strength, including the lowest leverage ratio for the Company since September 30, 2014, ample liquidity, and a nimble capital allocation policy. Notably, Mobile Mini’s free cash flow generation will remain strong in a downturn as we minimize capital expenditures in line with reduced demand. Our financial strength and flexibility positions us to manage through these uncertain times and allows us to move quickly when demand returns.”

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

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