Mobile Mini (MINI), has reported a 3.61 percent rise in profit for the quarter ended Sep. 30, 2014. The company has earned $14.82 million, or $0.32 a share in the quarter, compared with $14.30 million, or $0.31 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $15.21 million, or $0.33 a share compared with $13.05 million or $0.28 a share, a year ago.
Revenue during the quarter grew 7.88 percent to $113.32 million from $105.04 million in the previous year period. Gross margin for the quarter expanded 106 basis points over the previous year period to 95.41 percent. Total expenses were 73.38 percent of quarterly revenues, down from 74.29 percent for the same period last year. This has led to an improvement of 92 basis points in operating margin to 26.62 percent.
Operating income for the quarter was $30.17 million, compared with $27 million in the previous year period. However, the adjusted operating income for the quarter stood at $30.80 million compared to $27.59 million in the prior year period. At the same time, adjusted operating margin was stable in the third-quarter to 27.18 percent, when compared with prior year period.
Erik Olsson, Mobile Mini's President and chief executive officer, commented, “We continued to generate strong results in the third quarter with leasing revenues growing approximately 10% year-over-year. The sales reorganization that was implemented during the second quarter is largely behind us as evidenced by strong and growing activations and improved productivity as we moved through the third quarter. Our underlying adjusted EBITDA margin is already running in the 41-42% range excluding the incremental costs associated with the repair and repositioning of available units to high demand areas. We expect these costs to decline in 2015, and contribute to margin expansion next year.''
Olsson added, “Earlier this year we said that 2014 was a year of change. I’m very pleased to say that our strategic plan is delivering the desired results and has us, in the short term, well along the path to achieving our stated 2014 goals of a year-over-year top-line growth rate and profitability exceeding that of 2013, resulting in higher free cash flow for the year. Longer term, we expect the enhancements we have made over the past year to our fleet and our sales organization to translate into continued strong growth and margin expansion.
Cash Flow
Mobile Mini has generated cash of $87.76 million from operating activities during the nine month period, up 2.67 percent or $2.28 million, when compared with the last year period.
The company has spent $26.81 million cash to meet investing activities during the nine month period as against cash outgo of $7.84 million in the last year period. It has incurred net capital expenditure of $1.50 million on net basis during the nine month period, down 16.67 percent or $.30 million from year ago period.
The company has spent $59.75 million cash to carry out financing activities during the nine month period as against cash outgo of $77.86 million in the last year period. It has borrowed net of $13.27 million through debt. It has spent net of $22.90 million on repurchase of common stocks.
Cash and cash equivalents stood at stood at $1.61 million as at Sep. 30, 2014.
