Mobile Mini (MINI) Reports In-Line Q2 EPS, Revenues Beat

Mobile Mini (NASDAQ: MINI) reported Q2 EPS of $0.35, in-line with the analyst estimate of $0.35. Revenue for the quarter came in at $142 million versus the consensus estimate of $140.34 million.

Second Quarter 2018 Highlights

• Continued strong rental revenue growth in Tank & Pump Solutions with a 21.2% year-over-year increase.
• Delivered robust Storage Solutions rental revenue year-over-year growth of 10.8%, 9.5% when adjusted for favorable currency fluctuations.
• Drove average original equipment cost utilization for Tank & Pump Solutions to 74.2% for the quarter, up 970 basis points compared to the prior-year quarter, with the most fleet on rent since the acquisition of this business in 2014.
• Increased total Storage Solutions average units on rent by 3.7% year-over-year, with average utilization of 70.6%, up 120 basis from the prior-year quarter.
• Raised Storage Solutions rental rates by 2.4% year-over-year, with rates on new rentals up 1.9%.
• Achieved adjusted EBITDA growth of 19.1%, compared to the prior-year quarter, 18.1% in constant currency.
• Generated strong net cash from operating activities of $35.0 million and free cash flow of $11.7 million.

CEO Comments

Erik Olsson, Mobile Mini’s President and Chief Executive Officer, remarked, “We continue to drive exceptional year-over-year rental revenue growth, achieving a very strong 12.8% increase during the second quarter. Our Tank & Pump Solutions business recorded the highest quarterly revenue since we acquired the business in 2014, with year-over-year organic growth exceeding 20%. We expect Tank & Pump Solutions to continue to deliver robust year-over-year growth for the remainder of this year as we gain traction on the new agreements signed in the fourth quarter of 2017 and first quarter of 2018. Our Storage Solutions segment also generated strong second quarter results, with year-over-year organic rental revenue growth of nearly 11%. The robust top-line growth of our consolidated business resulted in a 19.1% year-over-year increase in adjusted EBITDA.”

Mr. Olsson continued, “We believe that the end market demand for Tank & Pump has normalized and the current level of activity within this segment will continue. As we noted last quarter, we are uniquely positioned to drive growth in excess of the market amongst both large and small customers in this business. Our storage business is also very healthy and our pipeline looks robust. The current performance and pipeline reinforces our outlook for revenue increases in excess of our evergreen model, leading to continued strong increases in adjusted EBITDA and healthy free cash flow generation.”

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

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