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Mobile Mini Inc. Q1 2008 Earnings Call Transcript

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2008-05-08 13:15:11.0

Tags: Mobile Mini Inc.

Question-and-Answer Session

Operator

(Operator Instructions) Our first question comes from David Manthey with Robert W. Baird. Please state your question.

David Manthey - Robert W. Baird & Co.

Does the guidance now include accretion from Mobile Storage Group?

Steven Bunger

We believe that -- what we have said is that the Mobile Storage Group acquisition will be accretive a by few cents in 2008, so we did not change our guidance as a result of the Mobile Storage Group acquisition.

David Manthey - Robert W. Baird & Co.

Okay and the increase in yield was that primarily due to mix or pricing and can you discuss the growth rates among the 10 foot wide units versus the eight foot?

Steven Bunger

The growth between the 10 foot wide and the eight foot wide, we don’t disclose for competitive reason. The rate increase is a combination of some mix; our fuel surcharge and offset also by average lower rates in the UK and actuality if you took out the effects of the lower rates in the UK, I'm not sure what the number is, but the number would be higher than what we're reporting.

David Manthey - Robert W. Baird & Co.

Okay. Thank you and then last question, in terms of the accrual or increased pickup cost, because of the fuel prices is that recoverable in anyway? I guess the question is, do you charge fee for pickup or is that just factored into the contract on the front end?

Steven Bunger

We will be charging a higher fee for pickup with our fuel surcharge, so it in affect will be recovered overtime.

David Manthey - Robert W. Baird & Co.

But, it will be factored into new contracts, you can’t recover it on existing contracts right?

Larry Trachtenberg

There is a -- we actually believe that on some of the existing contracts in the future, we will be able to recovery part of it.

Operator

Our next question comes from David Gold with Sidoti & Company. Please state your question.

David Gold - Sidoti & Company

It’s a couple more one; on yield Steve or Larry, for the year after all said and done what might you expect?

Steven Bunger

I’m not sure of the question?

David Gold - Sidoti & Company

What should we look for by way of yield improvement after you’ve implemented the gas surcharge and you have done the April 1, increase in the U.K.?

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