Mobile Mini, Inc. (NASDAQ:MINI) Q4 2014 Earnings Conference Call - Final Transcript
Feb 12, 2015 • 12:00 pm ET
Good day everyone, and welcome to the Mobile Mini 2014 fourth quarter conference call. At this time, I'd like to inform you that this conference is being recorded and that all participants are currently in a listen-only mode. There's also a presentation that accompanies this conference call, which you can access at Mobile Mini's website at www.mobilemini.com. It is on the investors page.
Before turning the call over to Erik Olsson, Mobile Mini's president and Chief Executive Officer, I will read the Safe Harbor statement. Before the presentation and the comments begin, Mobile Mini would like to remind you that some of the statements and responses to your questions in this conference call include forward-looking statements. As such, they are subject to future events, and uncertainties that could cause our actual results to differ materially from these statements.
Any forward-looking statement should be considered in conjunction with the cautionary statements in our press release and the risk factors included in our filings with the SEC, which Mobile Mini encourages you to read. In addition, please refer to the investor section of Mobile Mini's website to find additional disclosures and reconciliations of non-GAAP financial measures that will be used on today's call.
Now, I will turn the call over to Eric Olsson.
Good morning, everyone and welcome to Mobile Mini's fourth quarter 2014 conference call. My name is Eric Olsson, Mobile Mini's President and CEO. And with me today is Mark Funk, our Executive Vice President and CFO. For this presentation, I'm going to review the operational slides, Mark will review the financial slides, and then we will open up the call to questions.
I will start on slide number three, financial highlights. We put another strong quarter and year behind us, continuing to execute and delivering on the strategic plan that we established in 2013. Total revenues which now include the operating results of ETS since the acquisition closed on December 10, 2014, increased 16% year-over-year. As far as the results for our portable storage business goes, excluding ETS, the fourth quarter was 16th straight quarter of year-over-year growth in both total and leasing revenues. Leasing revenue for our portable storage business increased over 10% year-over-year, largely driven by rental rates, tied to our strong value proposition and superior fleet. In fact, fourth quarter rental rates increased 2% sequentially from Q3 and a very strong 7.6% year-over-year. The 7.6% year-over-year rate increase in the quarter is over our total units on rent. For new units going up on rent in the quarter, the rate increase was an impressive 6.5% year-over-year even as we anniversaried our seventh quarter in a row of driving significantly higher rates on new units. But our strategy continues to work albeit at a somewhat more moderate pace against more difficult comps.
These rate increases are across all regions and geographies, across all product types and all customer segments, including national accounts. This is a great testament to the quality of our products and services that we provide.