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Press release from Business Wire

Mobile Mini Reports 2012 Third Quarter Results

<p class='bwalignc'> <span class='bwuline'><b>Total Revenues Increase 6.0%; Adjusted EBITDA Increases 8.8%</b></span> </p> <p class='bwalignc'> <span class='bwuline'><b>Seventh Consecutive Comparable Quarter Increase in Leasing Revenues</b></span> </p>

Wednesday, November 07, 2012

Mobile Mini Reports 2012 Third Quarter Results07:30 EST Wednesday, November 07, 2012 TEMPE, Ariz. (Business Wire) -- Mobile Mini, Inc. (NASDAQ GS: MINI) today reported actual and adjusted financial results for the third quarter and nine months ended September 30, 2012. Third Quarter 2012 Compared to Third Quarter 2011 Total revenues rose 6.0% to $100.9 million from $95.1 million; Leasing revenues rose 9.7% to $90.7 million from $82.6 million; Leasing revenues comprised 89.9% of total revenues compared to 86.9% of total revenues; Sales revenues declined to $9.7 million from $11.7 million; Sales margins increased to 37.8% from 34.8%; Adjusted EBITDA was $38.1 million, up 8.8% compared to $35.0 million; the adjusted EBITDA margin improved to 37.8% from 36.8%; Adjusted net income rose 35.4% to $12.9 million from $9.5 million; and Adjusted diluted earnings per share increased 38.1% to $0.29 from $0.21. Other Third Quarter 2012 Highlights Free cash flow was $17.1 million, after $7.7 million of net capex; Net debt was paid down by $14.6 million after payment of $3.1 million in financing costs relating primarily to the redemption premiums on the 2015 Senior Notes; Yield (total lease revenues per unit on rent) increased 6.1% compared to the third quarter of 2011 and 4.8% compared to the second quarter of 2012 primarily due to an increase in trucking and ancillary revenues and a year-over-year average rental rate increase of 1.7%; Average utilization rate was 60.6%, up from 57.7% in both the second quarter of 2012 and the third quarter of 2011; and Excess availability under our revolver at September 30, 2012 was $422.8 million. Non-GAAP reconciliation tables are on page 7 of this news release, and show the nearest comparable GAAP results to the adjusted results. Business Overview This quarter was our seventh consecutive reporting period of comparable quarter leasing revenue growth and reflects improvement in both yield and utilization. Leasing revenues of $90.7 million for the quarter were at our highest level since the fourth quarter of 2008. We are pleased by the gains in yield which were 6.1% and 4.8% ahead of the 2011 third quarter and 2012 second quarter, respectively. In fact, average yield was at an all time quarterly high of $633 per unit. Utilization continued to move in the right direction averaging 60.6% in this quarter, up from 57.7% in both the same period last year and the 2012 second quarter. We closed this quarter with utilization at 63.5%, up from 58.9% at the end of June. Of note, the third quarter benefited from the delivery of 4,700 more holiday rental units than in the prior year to customers who ordered earlier to ensure that they would have units for the upcoming holiday season. The additional year-over-year holiday rental units contributed approximately $2.0 million to third quarter leasing revenue growth. Even with these early deliveries, we expect 2012 holiday unit rentals to approximate last year's levels, with the current year benefitting from a slightly longer average rental period. The 8.8% increase in third quarter adjusted EBITDA and 100 basis point improvement in adjusted EBITDA margin demonstrates the operating leverage in our business, which achieved 6.0% year-over-year growth in revenues. The 16 new markets we entered since the beginning of 2011 have been successful in building units on lease and as of this release date, 11 are EBITDA positive. As these locations mature, our operating leverage should continue to improve. As discussed on our second quarter conference call, we were evaluating our consumer initiative and during the third quarter, we decided to exit this business. The consumer initiative reduced our third quarter adjusted EBITDA by $0.8 million. Excluding these charges, adjusted EBITDA and adjusted EBITDA margins would have been $38.9 million and 38.5%, respectively. Costs associated with this initiative since it was shutdown in August, primarily related to leased warehouses, have been and will continue to be excluded from adjusted EBITDA. As of September 30, 2012, we have generated free cash flow for 19 consecutive quarters. Third quarter free cash flow of $17.1 million supported a reduction in debt of $14.6 million, after $7.7 million of net capital expenditures, the majority of which relate to our U.K. operations as a result of strong business conditions. That brings the year-to-date debt reduction to $27.0 million, after payment of $10.6 million of financing costs related to our new Credit Agreement and redemption premiums on the 2015 Senior Notes, and $19.1 million of net capital expenditures. Since the acquisition of Mobile Storage Group in mid-2008, we have generated free cash flow of $297.7 million and paid down $262.3 million of debt. As a result of our reduced borrowings and better rates under our new Credit Agreement, interest expense in the third quarter of 2012 was reduced by nearly 20% or approximately $2.2 million, compared to the same period of 2011. The redemption on August 2, 2012 of the $150.0 million of 6.875% 2015 Senior Notes is estimated to produce in excess of $6.6 million in annualized interest savings based on our current Credit Agreement borrowing rate and debt level. We continue to have a great deal of financial flexibility with over $420.0 million available under our Credit Agreement after the senior note redemption. Regarding our strategy and outlook, we are focused on growing our units on rent while at the same time minimizing cost increases. We expect comparable period revenue growth in the final quarter of 2012, continuing into 2013. On the subject of our management transition, Michael Watts, Mobile Mini's lead independent director who will become Chairman of the Board upon the year-end departure of the current Chairman & CEO, Steve Bunger, commented, “The Board along with Heidrick & Struggles, our executive search firm, is working diligently to identify and hire a world-class executive to lead Mobile Mini in its next chapter of success. We look forward to building upon Mobile Mini's many strengths including its highly differentiated products, diverse customer base in North America and Europe, deep team of dedicated employees, and very solid financial position which we expect to drive further growth and shareholder value creation in the coming quarters and years.” EBITDA, adjusted EBITDA, EBITDA margin, adjusted EBITDA margin, adjusted SG&A, adjusted net income, adjusted diluted earnings per share and free cash flow are non-GAAP financial measures as defined by Securities and Exchange Commission (“SEC”) rules. Reconciliations of these measurements to the most directly comparable GAAP financial measures can be found later in this release. Conference Call Mobile Mini will host a conference call today, Wednesday, November 7, 2012 at 12 noon ET to review these results. To listen to the call live, dial (201) 493-6739 and ask for the Mobile Mini Conference Call or go to www.mobilemini.com and click on the Investors section. Additionally, a slide presentation that will accompany the call will be posted at www.mobilemini.com on the Investors section and will be available in advance and after the call. We will also post the reconciliation of non-GAAP financial measures used in the slide show to the most directly comparable GAAP financial measures. Please go to the website 15 minutes early to download and install any necessary audio software. If you are unable to listen live, a replay of the conference call can be accessed for approximately 14 days after the call at Mobile Mini's website. Mobile Mini, Inc. is the world's leading provider of portable storage solutions through its total lease fleet of approximately 235,000 portable storage containers and office units with 136 locations in the U.S., United Kingdom, Canada and The Netherlands. 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, particularly regarding growth, free cash flow, ability to enter new markets, increases in utilization, the ability to strengthen, grow and expand our operations and increasing debt pay down, 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 Income (Unaudited)/(in 000's except per share data)/(includes effects of rounding)   Three Months Ended Three Months Ended September 30, September 30, 2012   2012 2011   2011 Revenues: Actual   Adjusted (1) Actual   Adjusted (1) Leasing $ 90,666 $ 90,666 $ 82,635 $ 82,635 Sales 9,687 9,687 11,741 11,741 Other   526       526     765       765   Total revenues   100,879       100,879     95,141       95,141   Costs and expenses: Cost of sales 6,026 6,026 7,656 7,656 Leasing, selling and general expenses (2) 56,753 56,753 53,551 52,481 Integration, merger and restructuring expenses (3) 837 - 291 - Depreciation and amortization   8,951       8,951     8,889       8,889   Total costs and expenses   72,567       71,730     70,387       69,026   Income from operations 28,312 29,149 24,754 26,115   Other income (expense): Interest expense (8,805 ) (8,805 ) (10,983 ) (10,983 ) Debt restructuring expense (4) (2,812 ) - - - Deferred financing costs write-off (5) (1,197 ) - - - Foreign currency exchange   (2 )     (2 )   -       -   Income before provision for income taxes 15,496 20,342 13,771 15,132 Provision for income taxes (6)   4,413       7,436     4,040       5,603   Net income $ 11,083     $ 12,906   $ 9,731     $ 9,529     Earnings per share: Basic $ 0.25     $ 0.29   $ 0.22     $ 0.22   Diluted $ 0.25     $ 0.29   $ 0.22     $ 0.21     Weighted average number of common and common share equivalents outstanding: Basic   44,686       44,686     43,870       43,870   Diluted   45,044       45,044     44,480       44,480     EBITDA $ 37,261     $ 38,098   $ 33,643     $ 35,004     (1)   This column represents a non-GAAP presentation even though some individual line items presented, such as revenues, are identical under both GAAP and the adjusted presentations. (2) In 2011, the difference represents one-time costs that are excluded in the adjusted presentation. (3) Integration, merger and restructuring expenses represent costs relating primarily to the restructuring of our operations that are excluded in the adjusted presentation. (4) Represents the redemption premiums and the unamortized original issuance discount on the redemption of $150.0 million of 6.875% Notes originally due in 2015. Debt restructuring expense is excluded in the adjusted presentation. (5) Represents the unamortized deferred financing costs associated with the $150.0 million of 6.875% Notes redeemed in August 2012. Deferred financing costs write-off is excluded in the adjusted presentation. (6) Provision for income taxes includes approximately $1.2 million and $1.0 million in 2012 and 2011, respectively, in income tax benefits related to statutory corporate income tax rate reductions in the United Kingdom that are excluded in the adjusted presentation.         Mobile Mini, Inc. Condensed Consolidated Statements of Income (Unaudited)/(in 000's except per share data)/(includes effects of rounding)   Nine Months Ended Nine Months Ended September 30, September 30, 2012   2012 2011   2011 Revenues: Actual   Adjusted (1) Actual   Adjusted (1) Leasing $ 251,137 $ 251,137 $ 233,736 $ 233,736 Sales 30,241 30,241 32,661 32,661 Other   1,574       1,574     2,126       2,126   Total revenues   282,952       282,952     268,523       268,523   Costs and expenses: Cost of sales 18,504 18,504 20,745 20,745 Leasing, selling and general expenses (2) 166,041 165,902 150,267 148,866 Integration, merger and restructuring expenses (3) 1,600 - 762 - Depreciation and amortization   27,096       27,096     26,702       26,702   Total costs and expenses   213,241       211,502     198,476       196,313   Income from operations 69,711 71,450 70,047 72,210   Other income (expense): Interest income 1 1 - - Interest expense (29,604 ) (29,604 ) (35,459 ) (35,459 ) Debt restructuring expense (4) (2,812 ) - (1,334 ) - Deferred financing costs write-off (5) (1,889 ) - - - Foreign currency exchange   (5 )     (5 )   (2 )     (2 ) Income before provision for income taxes 35,402 41,842 33,252 36,749 Provision for income taxes (6)   11,918       15,502     11,428       13,813   Net income 23,484 26,340 21,824 22,936 Earnings allocable to preferred stockholders   -       -     (970 )     (1,160 ) Net income available to common stockholders $ 23,484     $ 26,340   $ 20,854     $ 21,776     Earnings per share: Basic $ 0.53     $ 0.59   $ 0.51     $ 0.53   Diluted $ 0.52     $ 0.59   $ 0.49     $ 0.51     Weighted average number of common and common share equivalents outstanding: Basic   44,601       44,601     40,732       40,732   Diluted   45,019       45,019     44,547       44,547     EBITDA $ 96,803     $ 98,542   $ 96,747     $ 98,910     (1)   This column represents a non-GAAP presentation even though some individual line items presented, such as revenues, are identical under both GAAP and the adjusted presentations. (2) In 2012, the difference relates to acquisition activity costs that are excluded in the adjusted presentation. In 2011, the difference represents one-time costs that are excluded in the adjusted presentation. (3) Integration, merger and restructuring expenses represent costs relating primarily to the restructuring of our operations that are excluded in the adjusted presentation. (4) In 2012, this represents the redemption premiums and the unamortized original issuance discount on the redemption of $150.0 million of 6.875% Notes originally due in 2015. In 2011, this represents the redemption premiums and the unamortized acquisition date discount on the redemption of $22.3 million of 9.75% Notes. Debt restructuring expense is excluded in the adjusted presentation. (5) Represents the unamortized deferred financing costs associated with the $150.0 million of 6.875% Notes redeemed in August 2012 and a portion of deferred financing costs associated with our prior $850.0 million credit agreement which was replaced with our new $900.0 million Credit Agreement in February 2012. Deferred financing costs write-off is excluded in the adjusted presentation. (6) Provision for income taxes includes approximately $1.2 million and $1.0 million in 2012 and 2011, respectively, in income tax benefits related to statutory corporate income tax rate reductions in the United Kingdom that are excluded in the adjusted presentation.         Mobile Mini, Inc. Condensed Consolidated Balance Sheets (in 000's except par value data) (includes effects of rounding)   September 30, 2012 December 31, 2011 (unaudited) (audited) ASSETS Cash $ 916 $ 2,860 Receivables, net 54,480 47,102 Inventories 21,850 20,803 Lease fleet, net 1,029,734 1,018,742 Property, plant and equipment, net 82,477 79,875 Deposits and prepaid expenses 6,472 7,338 Other assets and intangibles, net 19,020 16,862 Goodwill   518,930     514,469   Total assets $ 1,733,879   $ 1,708,051       LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Accounts payable $ 22,463 $ 20,849 Accrued liabilities 45,260 46,369 Lines of credit 469,205 345,149 Notes payable — 316 Obligations under capital leases 827 1,289 Senior Notes, net 200,000 349,718 Deferred income taxes   195,803     183,550   Total liabilities   933,558     947,240     Commitments and contingencies   Stockholders' equity: Common stock, $.01 par value, 95,000 shares authorize, 47,880 issue and at September 30, 2012 and 47,787 issued and 45,612 outstanding at December 31, 2011 479 478 Additional paid-in capital 516,739 508,936 Retained earnings 339,590 316,106 Accumulated other comprehensive loss (17,187 ) (25,409 ) Treasury stock, at cost, 2,175 shares   (39,300 )   (39,300 ) Total stockholders' equity   800,321     760,811   Total liabilities and stockholders' equity $ 1,733,879   $ 1,708,051             Three Months Ended September 30, Nine Months Ended September 30,   2012     2011   2012     2011 (In thousands) (In thousands) Reconciliation of EBITDA to net cash provided     by operating activities: EBITDA $ 37,261 $ 33,643 $ 96,803 $ 96,747 Interest paid (5,703 ) (9,726 ) (24,331 ) (33,080 ) Income and franchise taxes paid (133 ) (129 ) (722 ) (719 ) Share-based compensation expense 2,090 1,840 5,676 4,561 Gain on sale of lease fleet units (2,895 ) (3,547 ) (9,451 ) (10,666 ) Gain on disposal of property, plant and equipment (219 ) (15 ) (263 ) (15 ) Changes in certain assets and liabilities, net of effect of businesses acquired: Receivables (7,121 ) (3,756 ) (6,726 ) (6,142 ) Inventories (26 ) 791 (963 ) 424 Deposits and prepaid expenses 1,033 60 924 913 Other assets and intangibles (159 ) 22 (264 ) (96 ) Accounts payable and accrued liabilities   663       11,244     (2,319 )     11,877   Net cash provided by operating activities $ 24,791     $ 30,427   $ 58,364     $ 63,804       Reconciliation of net income to EBITDA and adjusted EBITDA: Net income $ 11,083 $ 9,731 $ 23,484 $ 21,824 Interest expense 8,805 10,983 29,604 35,459 Provision for income taxes 4,413 4,040 11,918 11,428 Depreciation and amortization 8,951 8,889 27,096 26,702 Debt restructuring expense 2,812 - 2,812 1,334 Deferred financing costs write-off   1,197       -     1,889       -   EBITDA 37,261 33,643 96,803 96,747 Integration, merger, restructuring and other 837 1,361 1,600 2,163 Acquisition expenses   -       -     139       -   Adjusted EBITDA $ 38,098     $ 35,004   $ 98,542     $ 98,910       Reconciliation of net cash provided by operating activities to free cash flow: Net cash provided by operating activities $ 24,791 $ 30,427 $ 58,364 $ 63,804   Additions to lease fleet (13,457 ) (8,381 ) (32,783 ) (19,556 ) Proceeds from sale of lease fleet units 7,282 9,810 23,399 27,838 Additions to property, plant and equipment (2,616 ) (1,793 ) (11,171 ) (8,593 ) Proceeds from sale of property, plant and equipment   1,112       51     1,427       92   Net capital expenditures, excluding acquisitions   (7,679 )     (313 )   (19,128 )     (219 )             Free cash flow $ 17,112     $ 30,114   $ 39,236     $ 63,585                                 Reconciliation of Adjusted Measurements to Actuals Reconciliation of Adjusted Measurements to Actuals Three Months Ended September 30, 2012 Three Months Ended September 30, 2011 (in thousands except per share data) (in thousands except per share data) (includes effects of rounding) (includes effects of rounding) As Adjusted(1)   Integration,mergerandrestructuringexpenses(3)   Debtrestructuringexpense(4)   DeferredFinancingcostswrite-off(5)   IncomeTaxBenefit(6)   Actual As Adjusted(1)   Leasing,sellingand generalexpenses(7)   Integration,mergerandrestructuringexpenses(3)   IncomeTaxBenefit(6)   Actual Revenues $ 100,879 $ - $ - $ - $ - $ 100,879 $ 95,141 $ - $ - $ - $ 95,141 EBITDA $ 38,098 $ (837 ) $ - $ - $ - $ 37,261 $ 35,004 $ (1,070 ) $ (291 ) $ - $ 33,643 EBITDA margin 37.8 % (0.8 )% - - - 36.9 % 36.8 % (1.1 )% (0.3 )% - 35.4 % Operating income $ 29,149 $ (837 ) $ - $ - $ - $ 28,312 $ 26,115 $ (1,070 ) $ (291 ) $ - $ 24,754 Operating income margin 28.9 % (0.8 )% - - - 28.1 % 27.4 % (1.1 )% (0.3 )% - 26.0 % Pre tax income $ 20,342 $ (837 ) $ (2,812 ) $ (1,197 ) $ - $ 15,496 $ 15,132 $ (1,070 ) $ (291 ) $ - $ 13,771 Net income $ 12,906 $ (514 ) $ (1,729 ) $ (736 ) $ 1,156 $ 11,083 $ 9,529 $ (658 ) $ (178 ) $ 1,038 $ 9,731 Diluted earnings per share $ 0.29 $ (0.01 ) $ (0.04 ) $ (0.02 ) $ 0.03 $ 0.25 $ 0.21 $ (0.01 ) $ - $ 0.02 $ 0.22             Reconciliation of Adjusted Measurements to Actuals Reconciliation of Adjusted Measurements to Actuals Nine Months Ended September 30, 2012 Nine Months Ended September 30, 2011 (in thousands except per share data) (in thousands except per share data) (includes effects of rounding) (includes effects of rounding) As Adjusted(1)   Acquisition Expenses(2)   Integration, merger and restructuring expenses(3)   Debt restructuring expense(4)   Deferred Financing costs write-off(5)   Income Tax Benefit(6)   Actual As Adjusted(1)   Leasing,selling and general expenses(7)   Integration,merger andrestructuring expenses(3)   Debt restructuring expense(4)   IncomeTax Benefit(6)   Actual Revenues $ 282,952   $ -   $ -   $ -   $ -   $ -   $ 282,952 $ 268,523   $ -   $ -   $ -   $ -   $ 268,523 EBITDA $ 98,542 $ (139 ) $ (1,600 ) $ - $ - $ - $ 96,803 $ 98,910 $ (1,401 ) $ (762 ) $ - $ - $ 96,747 EBITDA margin 34.8 % - (0.6 )% - - - 34.2 % 36.8 % (0.5 )% (0.3 )% - - 36.0 % Operating income $ 71,450 $ (139 ) $ (1,600 ) $ - $ - $ - $ 69,711 $ 72,210 $ (1,401 ) $ (762 ) $ - $ - $ 70,047 Operating income margin 25.3 % - (0.6 )% - - - 24.6 % 26.9 % (0.5 )% (0.3 )% - - 26.1 % Pre tax income $ 41,842 $ (139 ) $ (1,600 ) $ (2,812 ) $ (1,889 ) - $ 35,403 $ 36,749 $ (1,401 ) $ (762 ) $ (1,334 ) - $ 33,252 Net income $ 26,340 $ (85 ) $ (1,043 ) $ (1,729 ) $ (1,162 ) $ 1,163 $ 23,485 $ 22,936 $ (861 ) $ (469 ) $ (820 ) $ 1,038 $ 21,824 Diluted earnings per share $ 0.59 $ - $ (0.03 ) $ (0.04 ) $ (0.03 ) $ 0.03 $ 0.52 $ 0.51 $ (0.02 ) $ (0.01 ) $ (0.01 ) $ 0.02 $ 0.49               (1)   This column represents a non-GAAP presentation even though some individual line items presented, such as revenues, are identical under both GAAP and the adjusted presentations. (2) The difference relates to acquisition activity costs that are excluded in the adjusted presentation. (3) Integration, merger and restructuring expenses represent costs relating primarily to the restructuring of our operations that are excluded in the adjusted presentation. (4) In 2012, this represents the redemption premiums and the unamortized original issuance discount on the redemption of $150.0 million of 6.875% Notes originally due in 2015. In 2011, this represents the redemption premiums and the unamortized acquisition date discount on the redemption of $22.3 million of 9.75% Notes. Debt restructuring expense is excluded in the adjusted presentation. (5) Represents the unamortized deferred financing costs associated with the $150.0 million of 6.875% Notes redeemed in August 2012 and a portion of deferred financing costs associated with our prior $850.0 million credit agreement which was replaced with our new $900.0 million Credit Agreement in February 2012. Deferred financing costs write-off is excluded in the adjusted presentation. (6) Represents the statutory corporate income tax rate reductions in the United Kingdom that are excluded in the adjusted presentation. (7) Represents one-time costs that are excluded in the adjusted presentation. This news release includes the financial measures “EBITDA”, “adjusted EBITDA”, “EBITDA margin”, “adjusted EBITDA margin”, “adjusted SG&A”, “adjusted net income”, “adjusted diluted earnings per share” and “free cash flow.” These measurements are deemed “non-GAAP financial measures” under rules of the SEC, including Regulation G. This non-GAAP financial information may be determined or calculated differently by other companies. EBITDA is defined as net income before interest expense, income taxes, depreciation and amortization, and if applicable, debt restructuring or extinguishment costs, including any write-off of deferred financing costs. We typically further adjust EBITDA to ignore the effect of what we consider transactions or events not related to our core business to arrive at adjusted EBITDA. The GAAP financial measure that is most directly comparable to EBITDA is net cash provided by operating activities. EBITDA and adjusted EBITDA margins are calculated by dividing consolidated EBITDA and adjusted EBITDA by total revenues. The GAAP financial measure that is most directly comparable to EBITDA margin is operating margin, which represents operating income divided by revenues. We present adjusted EBITDA and adjusted EBITDA margin because we believe they provide useful information regarding our ability to meet our future debt payment requirements, capital expenditures and working capital requirements and they provide an overall evaluation of our financial condition. We include adjusted EBITDA in the earnings announcement to provide transparency to investors. Adjusted EBITDA has certain limitations as an analytical tool and should not be used as a substitute for net income, cash flows, or other consolidated income or cash flow data prepared in accordance with GAAP or as a measure of our profitability or our liquidity. EBITDA margin is presented along with the operating margin so as not to imply that more emphasis should be placed on it than the corresponding GAAP measure. Free cash flow is defined as net cash provided by operating activities, minus or plus, net cash used in or provided by investing activities, excluding acquisitions. Free cash flow is a non-GAAP financial measure and is not intended to replace net cash provided by operating activities, the most directly comparable GAAP financial measure. We present free cash flow because we believe it provides useful information regarding our liquidity and ability to meet our short-term obligations. In particular, free cash flow indicates the amount of cash available after capital expenditures for, among other things, investments in the Company's existing businesses, debt service obligations and strategic acquisitions. Adjusted SG&A, adjusted net income and adjusted diluted earnings per share permit a comparative assessment of our SG&A expenses, net income and diluted earnings per share by excluding certain one-time expenses and integration, merger and restructuring expenses to make a more meaningful comparison of our operating performance. Earlier in this release, we have provided a reconciliation of these adjusted measurements to actual results along with a reconciliation of EBITDA to net cash provided by operating activities, net income to EBITDA and adjusted EBITDA and net cash provided by operating activities to free cash flow. Mobile Mini, Inc.Mark Funk, 480-477-0241Executive VP & Chief Financial Officerwww.mobilemini.com-or-Investor Relations Counsel:The Equity Group Inc.Linda Latma, 212-836-9609Fred Buonocore, 212-836-9607