Mobile Mini, a leading supplier of portable storage solutions, reported total revenues for the quarter ended June 30, were $97.5 million and leasing revenues were $88.2 million, up from $93.2 million and $81.9 million, respectively, for the same period last year.
The company recorded a second-quarter net loss of $14.4 million, or $0.32 per share, due to a charge of $40.3 million, of which $39.7 million was non-cash, related to the impairment of certain leasing and other assets determined to be either non-core or uneconomic to repair. Excluding this charge, adjusted net income was $11.6 million, or $0.25 per adjusted diluted share, compared with $7.5 million, or $0.17 per adjusted diluted share for the second quarter of 2012.
Adjusted EBITDA was $38.1 million for the second quarter of 2013, compared with $33.0 million for the same period last year. Adjusted EBITDA margin was 39.1 percent for the second quarter of 2013, compared with 35.4 percent in the second quarter of 2012. The increase in profitability and margin reflects stronger utilization, higher yield including improved pricing, and leveraging of operating expenses.
In the quarter, Mobile Mini grew leasing revenues 7.7 percent year-over-year to $88.2 million, an all-time second-quarter high and the 10th consecutive quarter of comparable-period growth in leasing revenues. The company also increased average fleet utilization to 62.0 percent, up 430 bps from the second quarter of 2012 on strengthening demand from both non-construction and construction end markets.
“We generated further improvement in utilization during the second quarter, which resulted in solid comparable period leasing revenue growth and increased profitability,” said Erik Olsson, Mobile Mini’s president and CEO. “In addition, we saw increased momentum beginning in June and continuing into the third quarter. We expect these favorable trends to continue through the second half of 2013, and into 2014, particularly as we hone our sales efforts and seek to expand our geographic footprint.
“With a strategic focus on increasing return on capital and a move towards a rent-ready business model, removing these underperforming assets and investing resources toward improving fleet quality and availability positions us well for future growth. As utilization continues to rise, we expect this streamlining of our fleet to have meaningful benefits in the form of increased yard productivity, a safer work environment, and reduced real estate needs, which should further enhance our financial performance over time.”
Tempe, Ariz.-based Mobile Mini, Inc. is a provider of portable storage solutions through its total lease fleet of more than 215,000 portable storage containers and office units with 137 locations in the U.S., United Kingdom, Canada and The Netherlands.
