Mobile Mini Inc. (MINI, Financial) filed Quarterly Report for the period ended 2010-03-31.
Mobile Mini Inc. has a market cap of $579.78 million; its shares were traded at around $15.99 with a P/E ratio of 23.51 and P/S ratio of 1.55. 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 Jim Simons of Renaissance Technologies LLC.
Adjusted EBITDA, decreased $11.6 million, or 28.1%, to $30.0 million, compared to $41.6 million for the same period in 2009. Adjusted EBITDA margins were 39.0% and 41.6% of total revenues for the three months ended March 31, 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 $1.2 million, or 10.9%, to $9.1 million in the quarter ended March 31, 2010, compared to $10.3 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 March 31, 2010 was $2.4 million compared to net income of $8.5 million for the same period in 2009. Net income results for both periods included integration, merger and restructuring expenses of $2.2 million (approximately $1.4 million after tax).
Investing Activities. Net cash provided by investing activities was $1.1 million for the three months ended March 31, 2010, compared to $1.4 million for the same period in 2009. Capital expenditures for our lease fleet were $3.8 million and proceeds from sale of lease fleet units were $5.4 million for the three months ended March 31, 2010, compared to net proceeds of $3.4 million for the same period in 2009. Our capital expenditures for our lease fleet decreased 25.7% in the first three months of 2010 compared to the same period in 2009, as we acquired fewer units due to the economic slow down. As a result of the current economic conditions, we anticipate our near-term investing activities will be primarily focused on remanufacturing units acquired in acquisitions to meet our lease fleet standards as these units are placed on-rent. Capital expenditures for property, plant and equipment, net of proceeds from sales of property, plant and equipment, were $0.5 million for the three months ended March 31, 2010, compared to $1.9 million for the same period in 2009. 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.
At March 31, 2010, we have interest rate swap agreements under which we effectively fixed the interest rate payable on $200.0 million of borrowings under our Credit Agreement so that the rate is based upon a spread from a fixed rate, rather than a spread from the LIBOR rate. The fair value of our interest rate swap agreements resulted in amounts being recognized in other comprehensive income for the three months ended March 31, 2010, of $0.7 million net of applicable income taxes of $0.5 million.
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Mobile Mini Inc. has a market cap of $579.78 million; its shares were traded at around $15.99 with a P/E ratio of 23.51 and P/S ratio of 1.55. 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 Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Total revenues for the quarter ended March 31, 2010 decreased by $23.3 million, or 23.2%, to $76.9 million from $100.2 million for the same period in 2009. Leasing revenues for the quarter decreased by $19.3 million, or 21.6%, to $70.2 million from $89.5 million for the same period in 2009. This decrease in leasing revenues resulted from a 23.5% reduction in the average units on lease, driven by the economy and the decline in the level of non-residential construction activity. This decrease was partially offset by a 2.5% increase in our yield that was primarily driven by increases in ancillary income, product mix and favorable foreign exchange rates. Our sales of portable storage and office units for the quarter ended March 31, 2010 decreased by 37.2%, to $6.3 million from $10.1 million during the same period in 2009. The decrease in revenues primarily reflects the reduction in business activity due to the economic recession. Leasing revenues, as a percentage of total revenues for the quarters ended March 31, 2010 and 2009, were 91.3% and 89.4%, 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 $11.6 million, or 28.1%, to $30.0 million, compared to $41.6 million for the same period in 2009. Adjusted EBITDA margins were 39.0% and 41.6% of total revenues for the three months ended March 31, 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 $1.2 million, or 10.9%, to $9.1 million in the quarter ended March 31, 2010, compared to $10.3 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 March 31, 2010 was $2.4 million compared to net income of $8.5 million for the same period in 2009. Net income results for both periods included integration, merger and restructuring expenses of $2.2 million (approximately $1.4 million after tax).
Investing Activities. Net cash provided by investing activities was $1.1 million for the three months ended March 31, 2010, compared to $1.4 million for the same period in 2009. Capital expenditures for our lease fleet were $3.8 million and proceeds from sale of lease fleet units were $5.4 million for the three months ended March 31, 2010, compared to net proceeds of $3.4 million for the same period in 2009. Our capital expenditures for our lease fleet decreased 25.7% in the first three months of 2010 compared to the same period in 2009, as we acquired fewer units due to the economic slow down. As a result of the current economic conditions, we anticipate our near-term investing activities will be primarily focused on remanufacturing units acquired in acquisitions to meet our lease fleet standards as these units are placed on-rent. Capital expenditures for property, plant and equipment, net of proceeds from sales of property, plant and equipment, were $0.5 million for the three months ended March 31, 2010, compared to $1.9 million for the same period in 2009. 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.
At March 31, 2010, we have interest rate swap agreements under which we effectively fixed the interest rate payable on $200.0 million of borrowings under our Credit Agreement so that the rate is based upon a spread from a fixed rate, rather than a spread from the LIBOR rate. The fair value of our interest rate swap agreements resulted in amounts being recognized in other comprehensive income for the three months ended March 31, 2010, of $0.7 million net of applicable income taxes of $0.5 million.
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