Mobile Mini (MINI) has reported 7.69 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $10.15 million, or $0.23 a share in the quarter, compared with $11 million, or $0.25 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $10.92 million, or $0.25 a share compared with $12.36 million or $0.28 a share, a year ago.

Revenue during the quarter went down marginally by 0.81 percent to $123.53 million from $124.53 million in the previous year period. Gross margin for the quarter contracted 44 basis points over the previous year period to 95.86 percent. Total expenses were 80.66 percent of quarterly revenues, up from 78.97 percent for the same period last year. That has resulted in a contraction of 169 basis points in operating margin to 19.34 percent.

Operating income for the quarter was $23.89 million, compared with $26.20 million in the previous year period.

However, the adjusted operating income for the quarter stood at $25.12 million compared to $28.44 million in the prior year period. At the same time, adjusted operating margin contracted 250 basis points in the quarter to 20.34 percent from 22.84 percent in the last year period.

Erik Olsson, Mobile Mini’s president and chief executive officer, remarked, "During the quarter, we drove year-over-year rate increases of 2.6% in Storage Solutions, while increasing North America activations 8.6%. Overall we had strong year-over-year growth of 3.1% in our Storage Solutions rental revenues. This growth demonstrates that our expanded salesforce is gaining traction and gives us confidence that we will continue to drive additional revenue increases in the future."

The company has spent $9.06 million cash to meet investing activities during the quarter as against cash outgo of $23.59 million in the last year period. It has incurred net capital expenditure of $13.69 million on net basis during the quarter, down 25.43 percent or $4.67 million from year ago period.

The company has spent $20.25 million cash to carry out financing activities during the quarter as against cash outgo of $12.71 million in the last year period.

Cash and cash equivalents stood at $7.61 million as on Mar. 31, 2017, up 1,100.16 percent or $6.98 million from $0.63 million on Mar. 31, 2016.

Working capital drops significantly
Mobile Mini has witnessed a decline in the working capital over the last year. It stood at $41.25 million as at Mar. 31, 2017, down 37.59 percent or $24.84 million from $66.10 million on Mar. 31, 2016. Current ratio was at 1.04 as on Mar. 31, 2017, down from 1.07 on Mar. 31, 2016.

Cash conversion cycle (CCC) has increased to 317 days for the quarter from 231 days for the last year period. Days sales outstanding went up to 62 days for the quarter compared with 58 days for the same period last year.

Days inventory outstanding has decreased to 145 days for the quarter compared with 306 days for the previous year period. At the same time, days payable outstanding went down to 524 days for the quarter from 595 for the same period last year.