Must get in by March 6th for the record date. Mobile Mini, Inc. Reports Record Fourth Quarter and Expanded Credit Facility; Also Announces Two-for-One Stock Split, Jeffrey S. Goble Joins the Board and Management Affirms 2006 Guidance
By BusinessWire Last Update: 2/23/2006 8:30:02 AM Data provided by
TEMPE, Ariz., Feb 23, 2006 (BUSINESS WIRE) -- Mobile Mini, Inc. (NASDAQ National Market: MINI) today reported record financial results for the fourth quarter and record GAAP and pro forma financial results for the year ended December 31, 2005.
Fourth Quarter 2005 vs. Fourth Quarter 2004
-- Total revenues increased 22.7% to $57.9 million from $47.2 million;
-- Lease revenues increased 23.5% to $53.2 million from $43.1 million;
-- Lease revenues comprised 91.9% of total revenues versus 91.2%;
-- Net income was $9.8 million or $0.63 per diluted share, up 38.8% as compared to $7.1 million or $0.47 per diluted share;
-- EBITDA (earnings before interest expense, tax, depreciation, amortization) of $25.1 million, up 24.3% compared to $20.2 million last year; and,
-- Operating margin increased to 37.4% from 36.3%.
Other Fourth Quarter Highlights
-- The internal growth rate (the increase in leasing revenues at locations open one year or more, excluding acquisitions at those locations) was 22.6%, up from 22.2% in the fourth quarter of 2004;
-- The average utilization rate was 85.8%, up from 85.6% for the fourth quarter of 2004 and;
-- Yield (total lease revenues per unit on rent) improved 6.8% compared to last year's fourth quarter;
-- The average number of units on rent was up 15.6% from one year earlier; and,
-- Funded debt to EBITDA ratio improved to 3.5:1 compared to 4.2:1 a year earlier.
2005 Performance Highlights
-- Revenues reached $207.2 million; pro forma EBITDA totaled $88.8 million and pro forma diluted earnings per share were $2.11 (See the table below and the related footnotes for an explanation of the pro forma adjustments.);
-- Internal growth for 2005 was 25.3% compared to 16.0% in 2004;
-- The average utilization rate was 82.9% compared to 80.7% in 2004;
-- Yield rose 7.4% compared to 2004 while the average number of units on rent for 2005 was up 17.2% over the prior year;
-- The lease fleet grew 15.5% to over 116,300 units from 100,700 units one year earlier.
$350 Million Revolving Credit Line
Separately, Mobile Mini reported that it has modified its credit agreement which is now a five-year, $350 million revolving line of credit with Deutsche Bank, AG, as Agent for the lending group. The transaction was arranged by Deutsche Bank Securities Inc. and Bank of America Securities, LLC. This modification represents a 40% increase to Mobile Mini's existing $250 million credit facility. In addition, Mobile Mini may, without lenders' consent, increase the line by another $75 million. The borrowing rate under the modified revolver has been reduced and will initially be LIBOR plus 1.5%; and the key financial covenants, including funded debt to EBITDA and fixed-charge coverage ratio, do not apply as long as Mobile Mini maintains borrowing availability above certain pre-determined levels.
Lawrence Trachtenberg, Executive Vice President & CFO noted, "The $100 million increase in our borrowing capacity, plus the ability to increase this line by another $75 million, give us far greater flexibility to take advantage of expansion opportunities, whether it be by enlarging the lease fleet, entering new markets by establishing de novo branches or by acquiring revenue-generating storage assets in new markets. Today, we have approximately $175 million of outstanding borrowings under the modified credit facility, giving us at least $170 million of immediate additional availability."
Two-For-One Stock Split
Mobile Mini's Board of Directors approved a two-for-one stock split, to be effected as a 100 percent stock dividend, payable on March 10, 2006 to shareholders of record as of the close of business on March 6, 2006. Mr. Trachtenberg noted, "This action was taken to increase the number of shares in the public float available for trading and enhance the potential for broader ownership of our common stock by improving liquidity. After this distribution, there will be approximately 30.6 million shares of common stock outstanding." This press release excludes the effect of the stock split, which will be reflected in the Company's financial statements that will be included in its Annual Report on Form 10-K for the fiscal year ended December 31, 2005, which will be filed on or before March 16, 2006.
Favorable Trends Continue in 2006
Steven Bunger, Chairman, President & CEO of Mobile Mini, stated, "The new year has started on a very strong note for Mobile Mini and it appears that the favorable trends of the past two years are continuing. Through mid-February, the number of units on rent is running 15% ahead of this time last year and as a result, our utilization rate is 80%, which for the slowest seasonal time in our business, is very satisfying. As was the case last February, returns from short-term holiday season retail customers declined as a percentage of our lease fleet. That is again because of strong demand from our prime customers, namely companies and organizations which utilize long-term portable storage units and wooden offices as part of their operations. Our utilization rate is also benefiting from our 2005 fleet optimization program and we anticipate that it will also enhance return on investment over the near and long run."
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