Mobile Mini Inc. (MINI, Financial) filed Quarterly Report for the period ended 2011-03-31.
Mobile Mini Inc. has a market cap of $824 million; its shares were traded at around $22.4 with a P/E ratio of 39.3 and P/S ratio of 2.5. Mobile Mini Inc. had an annual average earning growth of 23.3% over the past 10 years. GuruFocus rated Mobile Mini Inc. the business predictability rank of 4-star.
Depreciation and amortization expenses for the quarter ended March 31, 2011 decreased $0.3 million, or 3.8%, to $8.8 million, compared to $9.1 million during the same period in 2010. The decrease is primarily attributable to reduced amortizations of intangible assets and is partially offset by investment in additional technology and communication equipment and delivery equipment.
Net income for the three months ended March 31, 2011 was $4.2 million compared to net income of $2.4 million for the same period in 2010. Our first quarter net income results include integration, merger and restructuring expenses of $0.2 million and $2.2 million (approximately $0.1 million and $1.4 million after tax), for the three months ended March 31, 2011 and 2010, respectively. The 2011 quarter was also negatively impacted by $1.3 million (approximately $0.8 million after tax) related to debt restructuring expense discussed above.
Revolving Credit Facility. We have an $850.0 million ABL Credit Agreement (the Credit Agreement) with Deutsche Bank AG New York Branch and the other lenders party thereto. All amounts outstanding under the Credit Agreement are due on June 27, 2013. The obligations of Mobile Mini and our subsidiary guarantors under the Credit Agreement are secured by a blanket lien on substantially all of our assets. At March 31, 2011, we had approximately $400.2 million of borrowings outstanding and $383.5 million of additional borrowing availability under the Credit Agreement, based upon borrowing base calculations as of such date. The Credit Agreement contains certain financial maintenance covenants, but these maintenance covenants are not applicable unless we have less than $100.0 million in borrowing availability under the facility. The Credit Agreement also contains customary negative covenants applicable to us and our subsidiaries, including covenants that restrict their ability to, among other things, (i) make capital expenditures in excess of defined limits, (ii) allow certain liens to attach to us or our subsidiary assets, (iii) repurchase or pay dividends or make certain other restricted payments on capital stock and certain other securities, or prepay certain indebtedness, (iv) incur additional indebtedness or engage in certain other types of financing transactions, and (v) make acquisitions or other investments. We were in compliance with the terms of the Credit Agreement as of March 31, 2011.
We issued the 2020 Notes in November 2010 at an initial offering price of 100% of their face value. The net proceeds from the sale of the 2020 Notes were used to redeem approximately $170.6 million of the 9.750% senior notes originally issued by MSG due 2014 (the MSG Notes and together with the Mobile Mini Notes, the Senior Notes), to pay the redemption and tender offer premium (approximately $8.9 million) and accrued interest (approximately $5.2 million) on the MSG Notes, and to pay fees and expenses related to the offering. We used the remaining net proceeds of approximately $10.4 million to repay borrowings under the Credit Agreement. The remaining aggregate principal amounts outstanding of the MSG Notes, $22.3 million, were fully redeemed in January 2011 and are no longer outstanding.
Investing Activities. Net cash provided by investing activities was $1.5 million for the three months ended March 31, 2011, compared to $1.1 million for the same period in 2010. Capital expenditures for our lease fleet were $3.5 million and proceeds from sale of lease fleet units were $8.2 million for the three months ended March 31, 2011, compared to capital expenditures of $3.8 million and proceeds of $5.4 million for the same period in 2010. We anticipate our near-term investing activities will be primarily focused on remanufacturing units previously acquired in acquisitions to meet our lease fleet standards as these units are placed on lease. Capital expenditures for property, plant and equipment, net of proceeds from sales of property, plant and equipment, for the three months ended March 31, 2011 were $3.2 million compared to $0.5 million for the same period in 2010. These expenditures in 2011 were primarily for replacement of our transportation equipment, leasehold improvements, and upgrades to technology equipment. The amount of cash that we use during any period in investing activities is almost entirely within managements discretion. We have no contracts or other arrangements pursuant to which we are required to purchase a fixed or minimum amount of capital goods in connection with any portion of our business.
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Mobile Mini Inc. has a market cap of $824 million; its shares were traded at around $22.4 with a P/E ratio of 39.3 and P/S ratio of 2.5. Mobile Mini Inc. had an annual average earning growth of 23.3% over the past 10 years. GuruFocus rated Mobile Mini Inc. the business predictability rank of 4-star.
Highlight of Business Operations:
Total revenues for the quarter ended March 31, 2011 increased by $6.0 million, or 7.8%, to $82.9 million from $76.9 million for the same period in 2010. Leasing revenues for the quarter increased by $2.5 million, or 3.6%, to $72.7 million from $70.2 million for the same period in 2010. This increase in leasing revenues resulted from a 5.0% increase in our yield that was primarily driven by higher trucking revenues. Our sales of portable storage and office units for the quarter ended March 31, 2011 increased by 49.1% to $9.4 million from $6.3 million during the same period in 2010. The increase in sales revenues primarily reflects a general increase in demand primarily for our higher priced units as compared to the same period in 2010. Leasing revenues, as a percentage of total revenues for the quarters ended March 21, 2011 and 2010, were 87.7% and 91.3%, 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.Depreciation and amortization expenses for the quarter ended March 31, 2011 decreased $0.3 million, or 3.8%, to $8.8 million, compared to $9.1 million during the same period in 2010. The decrease is primarily attributable to reduced amortizations of intangible assets and is partially offset by investment in additional technology and communication equipment and delivery equipment.
Net income for the three months ended March 31, 2011 was $4.2 million compared to net income of $2.4 million for the same period in 2010. Our first quarter net income results include integration, merger and restructuring expenses of $0.2 million and $2.2 million (approximately $0.1 million and $1.4 million after tax), for the three months ended March 31, 2011 and 2010, respectively. The 2011 quarter was also negatively impacted by $1.3 million (approximately $0.8 million after tax) related to debt restructuring expense discussed above.
Revolving Credit Facility. We have an $850.0 million ABL Credit Agreement (the Credit Agreement) with Deutsche Bank AG New York Branch and the other lenders party thereto. All amounts outstanding under the Credit Agreement are due on June 27, 2013. The obligations of Mobile Mini and our subsidiary guarantors under the Credit Agreement are secured by a blanket lien on substantially all of our assets. At March 31, 2011, we had approximately $400.2 million of borrowings outstanding and $383.5 million of additional borrowing availability under the Credit Agreement, based upon borrowing base calculations as of such date. The Credit Agreement contains certain financial maintenance covenants, but these maintenance covenants are not applicable unless we have less than $100.0 million in borrowing availability under the facility. The Credit Agreement also contains customary negative covenants applicable to us and our subsidiaries, including covenants that restrict their ability to, among other things, (i) make capital expenditures in excess of defined limits, (ii) allow certain liens to attach to us or our subsidiary assets, (iii) repurchase or pay dividends or make certain other restricted payments on capital stock and certain other securities, or prepay certain indebtedness, (iv) incur additional indebtedness or engage in certain other types of financing transactions, and (v) make acquisitions or other investments. We were in compliance with the terms of the Credit Agreement as of March 31, 2011.
We issued the 2020 Notes in November 2010 at an initial offering price of 100% of their face value. The net proceeds from the sale of the 2020 Notes were used to redeem approximately $170.6 million of the 9.750% senior notes originally issued by MSG due 2014 (the MSG Notes and together with the Mobile Mini Notes, the Senior Notes), to pay the redemption and tender offer premium (approximately $8.9 million) and accrued interest (approximately $5.2 million) on the MSG Notes, and to pay fees and expenses related to the offering. We used the remaining net proceeds of approximately $10.4 million to repay borrowings under the Credit Agreement. The remaining aggregate principal amounts outstanding of the MSG Notes, $22.3 million, were fully redeemed in January 2011 and are no longer outstanding.
Investing Activities. Net cash provided by investing activities was $1.5 million for the three months ended March 31, 2011, compared to $1.1 million for the same period in 2010. Capital expenditures for our lease fleet were $3.5 million and proceeds from sale of lease fleet units were $8.2 million for the three months ended March 31, 2011, compared to capital expenditures of $3.8 million and proceeds of $5.4 million for the same period in 2010. We anticipate our near-term investing activities will be primarily focused on remanufacturing units previously acquired in acquisitions to meet our lease fleet standards as these units are placed on lease. Capital expenditures for property, plant and equipment, net of proceeds from sales of property, plant and equipment, for the three months ended March 31, 2011 were $3.2 million compared to $0.5 million for the same period in 2010. These expenditures in 2011 were primarily for replacement of our transportation equipment, leasehold improvements, and upgrades to technology equipment. The amount of cash that we use during any period in investing activities is almost entirely within managements discretion. We have no contracts or other arrangements pursuant to which we are required to purchase a fixed or minimum amount of capital goods in connection with any portion of our business.
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