Mobile Mini Inc. Reports Operating Results (10-K)
Mobile Mini Inc has a market cap of $1.02 billion; its shares were traded at around $21.6896 with a P/E ratio of 29.8 and P/S ratio of 3.1. Mobile Mini Inc had an annual average earning growth of 11.3% over the past 10 years. GuruFocus rated Mobile Mini Inc the business predictability rank of 5-star.
Highlight of Business Operations:Total revenues in 2011 increased $33.6 million, or 10.2%, to $364.4 million from $330.8 million in 2010. Leasing, our primary revenue focus, accounted for approximately 87.5% of total revenues during 2011. Leasing revenues in 2011 increased $23.9 million, or 8.1%, to $318.9 million from $295.0 million in 2010. This increase in leasing revenues is due to an increase in the number of deliveries and units on rent. Yield increased 5.6% over the prior year and was driven by higher trucking and ancillary revenues, and also included an increase in the average annual rental rate of 0.8%. The average quarterly rental rates in 2011 showed sequential improvement compared to the prior year and were (0.1%), 0.1%, 1.2% and 2.2% for the first, second, third and fourth quarters, respectively. In 2011, both leasing and sales revenues increased primarily as the result of an improving economic environment. Leasing revenues increased in 2011, over the same period in the prior year, by 3.6%, 7.6%, 9.3% and 11.5% for the first, second, third and fourth quarters, respectively. Revenues from the sale of units increased $9.6 million, or 29.2%, to $42.8 million in 2011 from $33.2 million in 2010. The increase in sales revenues reflects higher average selling prices as well as an increase in the sale of custom units. Other revenues are primarily related to transportation charges for the delivery of units sold and the sale of ancillary products and represented 0.7% and 0.8% of total revenues in 2011 and 2010, respectively.
Leasing, selling and general expenses increased $24.1 million, or 13.5%, to $203.2 million in 2011 from $179.1 million in 2010. Leasing, selling and general expenses, as a percentage of total revenues, were 55.7% and 54.2% in 2011 and 2010, respectively. This increase is primarily due to variable costs associated with an increased level of business activity. The major increases in leasing, selling and general expenses for 2011 were: (i) delivery and freight costs increased $8.2 million due to an increase in delivery activity of units and the relocation of fleet units to higher growth markets, including the deployment of units to our twelve new locations in 2011, (ii) payroll and related payroll costs increased by $7.7 million primarily due to additional yard personnel, drivers and sales commissions due to increased deliveries and the cost of fully staffing the NSC as well as strategic hires in sales and new market locations and (iii) repairs and maintenance expenses of our lease fleet and delivery equipment increased $4.8 million as a result of an increase in delivery activity in both our core business and holiday rental business. Fixed costs for building and land leases for the our locations, including real property taxes, increased $1.7 million primarily due to contractual rate increases, new greenfield locations and property tax increases.
Adjusted EBITDA increased $6.2 million, or 4.8%, to $136.1 million, compared to $129.9 million for the same period in 2010, and adjusted EBITDA margins were 37.4% and 39.3% of total revenues for 2011 and 2010, respectively.
Total revenues in 2010 decreased $43.7 million, or 11.7%, to $330.8 million from $374.5 million in 2009. Leasing, our primary revenue focus, accounted for approximately 89.2% of total revenues during 2010. Leasing revenues in 2010 decreased $38.5 million, or 11.5%, to $295.0 million from $333.5 million in 2009. This decrease in leasing revenues resulted from a 14.4% decrease in the average number of units on lease, partially offset by a 3.4% increase in yield. Yield was primarily driven by higher trucking and ancillary revenues, while the average rental rate per unit remained virtually unchanged. In 2010, the decline in both leasing and sales revenues was primarily the result of a reduction in business activity, including non-residential construction activity, due to the weakness in the global economy. Our leasing revenue decline in 2010 improved sequentially over the same period in the prior year and was 21.6%, 13.6%, 7.9% and 1.5% for the first, second, third and fourth quarters, respectively, as the year over year decline in our business leveled off by the time the year ended. Our revenues from the sale of units decreased $5.4 million, or 14.1%, to $33.2 million in 2010 from $38.6 million in 2009. Other revenues are primarily related to transportation charges for the delivery of units sold and the sale of ancillary products and represented 0.8% and 0.6% of total revenues in 2010 and 2009, respectively.
Leasing, selling and general expenses decreased $13.8 million, or 7.1%, to $179.1 million in 2010 from $192.9 million in 2009. Leasing, selling and general expenses, as a percentage of total revenues, were 54.2% and 51.5% in 2010 and 2009, respectively. This slight increase as a percentage of revenues is due to our fixed costs in a declining revenue environment and was partially offset by variable cost saving reductions achieved by the cost cutting measures we implemented in response to the reduced revenue levels, primarily payroll related reductions and migrating a number of our branches to operational yards. These operational yards do not have all the personnel and overhead expenses associated with a fully staffed branch. The major decreases in leasing, selling and general expenses for 2010 were: (i) payroll and related payroll costs, which decreased by $9.2 million primarily due to reductions in our workforce and the decrease in commission expense resulting from the lower revenues levels; (ii) insurance expense, which decreased $3.6 million due to improved safety programs and general reductions in premiums and (iii) advertising costs, which decreased $2.0 million as we moved further away from printed advertising campaigns. Delivery and freight costs, including fuel, increased $4.1 million and were related to an increase in pick-up and delivery activity of units. Repairs and maintenance expenses increased $2.2 million and include the costs of repairing and maintaining our lease fleet as well as our delivery equipment, primarily our trucks, trailers and forklifts. Fixed costs for building and land leases for our locations, including real property taxes, increased $1.1 million, primarily due to contractual rate increases, lease renewals, additional acreage, new greenfield locations, and property tax increases.
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