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Mobile Mini tops 3Q revenue estimates as tank and pump segment overflows

The storage company’s tank and pump segment revenue grew 21.9% year over year
Storage container
Mobile Mini offers portable storage solutions in the US and UK as well as tank and pump solutions

Mobile Mini Inc (NASDAQ:MINI) missed earnings estimates in its third quarter after divesting some assets, but growth in its tank and pump solutions segment pushed the company’s revenue past analyst estimates.

The portable storage company reported a net loss of $1.18 per share on revenue of $149.7 million compared with $0.25 earnings per share on revenue of $136.6 million in the previous year’s third quarter.

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The Arizona-based company fell below Wall Street estimates of $0.41 EPS, but surpassed revenue expectations of $148.44 million.

The company realized a net loss of $52.2 million after divesting underperforming assets in July, although the company did not specify which assets.

Mobile Mini offers portable storage solutions in the US and UK as well as tank and pump solutions, including spill containment systems and filtration systems.

Rental revenue from its storage division grew 7.8% year-over-year to $112.6 million compared with $104.5 million last year.

Its tank and pump solutions division saw 21.9% year-over-year growth to $28.3 million compared with $23.2 million in the previous third quarter.

The company’s board declared a cash dividend of $0.25 per share, which will be paid on November 28, 2018, to shareholders of record on November 14, 2018.

“The pipeline in North America looks healthy and economic indicators are positive, while activity in the U.K. is stable, with increases in rate offsetting a slight decrease in units on rent,” said CEO Erik Olsson in the company’s press release.

For the full year, the company is expecting double-digit revenue growth compared with 2017 as well as increases in adjusted EBITDA and free cash flow and a decreased leverage ratio.

Shares of Mobile Mini closed up around 1.4% to $43.43 by Thursday’s closing bell.

 

Contact Lenore Fedow at [email protected]

Follow her on Twitter@LenoreMariee

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