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Mobile Mini Inc. Reports Operating Results (10-Q)

November 05, 2010 | About:
10qk

10qk

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Mobile Mini Inc. (MINI) filed Quarterly Report for the period ended 2010-09-30.

Mobile Mini Inc. has a market cap of $619.1 million; its shares were traded at around $17.57 with a P/E ratio of 28 and P/S ratio of 1.7. Mobile Mini Inc. had an annual average earning growth of 13.3% over the past 10 years. GuruFocus rated Mobile Mini Inc. the business predictability rank of 5-star.MINI is in the portfolios of Columbia Wanger of Columbia Wanger Asset Management, James Barrow of Barrow, Hanley, Mewhinney & Strauss, George Soros of Soros Fund Management LLC.

Highlight of Business Operations:

Total revenues for the quarter ended September 30, 2010 decreased by $7.5 million, or 8.1%, to $84.6 million from $92.1 million for the same period in 2009. Leasing revenues for the quarter decreased by $6.5 million, or 7.9%, to $75.6 million from $82.1 million for the same period in 2009. This decrease in leasing revenues resulted from a 10.3% reduction in the average number of units on lease, driven by the weak economy and the general decline in the level of non-residential construction activity. This decrease was partially offset by a 2.7% increase in our yield that was primarily driven by increases in ancillary income and product mix. Our sales of portable storage and office units for the quarter ended September 30, 2010 decreased by 12.5%, to $8.3 million from $9.5 million during the same period in 2009. The decrease in sales revenues primarily reflects the general reduction in business activity relating to weak economic conditions. Leasing revenues, as a percentage of total revenues for the quarters ended September 30, 2010 and 2009, were 89.3% and 89.2%, respectively. Our leasing business continues to be our primary focus and leasing revenues have and continue to be the predominant part of our revenue mix.

Adjusted EBITDA, decreased $5.5 million, or 14.3%, to $33.0 million, compared to $38.5 million for the same period in 2009. Adjusted EBITDA margins were 39.0% and 41.8% of total revenues for the three months ended September 30, 2010 and 2009, respectively. The decrease is due to a decline in revenues, which were partially offset by our cost cutting efforts.

Depreciation and amortization expenses decreased $0.5 million, or 5.2%, to $8.7 million in the quarter ended September 30, 2010, compared to $9.2 million during the same period in 2009. The decrease is attributable to the reduced scope of our manufacturing operations and reductions in our lease fleet, and is partially offset by investment in additional technology and communication equipment and delivery equipment.

Net income for the three months ended September 30, 2010 was $5.5 million compared to net income of $8.1 million for the same period in 2009. Our third quarter net income results include integration, merger and restructuring expenses of $0.5 million and $1.5 million (approximately $0.3 million and $1.0 million after tax), for the three months ended September 30, 2010 and 2009, respectively.

Total revenues for the nine months ended September 30, 2010 decreased by $43.9 million, or 15.3%, to $243.3 million from $287.2 million for the same period in 2009. Leasing revenues for the nine months decreased by $37.3 million, or 14.6%, to $218.7 million from $256.0 million for the same period in 2009. This decrease in leasing revenues resulted from a 17.3% reduction in the average number of units on lease, driven by the weak economy and the general decline in the level of non-residential construction activity. This decrease was partially offset by a 3.3% increase in our yield that was primarily driven by increases in ancillary income and product mix. Our sales of portable storage and office units for the nine months ended September 30, 2010 decreased by 21.4%, to $23.1 million from $29.4 million during the same period in 2009. The decrease in sales revenues primarily reflects the general reduction in business activity relating to weak economic conditions. Leasing revenues, as a percentage of total revenues for the nine months ended September 30, 2010 and 2009, were 89.9% and 89.1%, respectively. Our leasing business continues to be our primary focus and leasing revenues have and continue to be the predominant part of our revenue mix.

Adjusted EBITDA, decreased $24.4 million, or 20.5%, to $95.0 million, compared to $119.4 million for the same period in 2009. Adjusted EBITDA margins were 39.0% and 41.6% of total revenues for the nine months ended September 30, 2010 and 2009, respectively. The decrease is due to a decline in revenues, which were partially offset by our cost cutting efforts.

Read the The complete Report

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