View:
================================================================================
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
---------------------------------------------------------------
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): May 3, 2007
---------------------------------------------------------------
McGRATH RENTCORP
(Exact name of registrant as specified in its Charter)
California
(State or other jurisdiction of incorporation)
0-13292 94-2579843
(Commission File Number) (I.R.S. Employee Identification No.)
5700 Las Positas Road, Livermore, CA 94551-7800
(Address of principal executive offices)
(925) 606-9200
(Registrant's Telephone Number, Including Area Code)
---------------------------------------------------------------
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
|_| Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)
|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
================================================================================
1
Item 2.02 Results of Operations and Financial Condition.
On May 3, 2007, McGrath RentCorp (the "Company") announced via press
release the Company's results for its first quarter ended March 31, 2007. A copy
of the Company's press release is attached hereto as Exhibit 99.1. This Form 8-K
and the attached exhibit are provided under Items 2.02 and 9.01 of Form 8-K and
are furnished to, but not filed with, the Securities and Exchange Commission,
and shall not be incorporated by reference in any filing under the Securities
Act of 1934 or the Securities Exchange Act of 1934.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. Description
----------- -----------
99.1 Press Release of McGrath RentCorp, dated May 3, 2007.
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
McGRATH RENTCORP
Dated: May 3, 2007 By: /s/ Keith E. Pratt
-------------------
Keith E. Pratt
Vice President and Chief Financial Officer
3
Exhibit 99.1
McGrath RentCorp Announces Results for First Quarter 2007
EPS Increases 19% to $0.37 for the Quarter
Rental Revenues Increase 9%
LIVERMORE, Calif.--(BUSINESS WIRE)--May 3, 2007--McGrath RentCorp
(NASDAQ:MGRC) today announced revenues for the quarter ended March 31,
2007, of $60.8 million, an increase of 5%, compared to $57.9 million
in the first quarter 2006. The Company reported net income for the
first quarter 2007 of $9.3 million, or $0.37 per diluted share,
compared to net income of $7.8 million, or $0.31 per diluted share, in
the first quarter 2006.
For the first quarter of 2007, the Company's Mobile Modular
division reported an 11% increase in rental revenues to $23.8 million
compared with $21.4 million in the first quarter 2006, with gross
profit on rental revenues increasing 18% to $15.7 million from $13.4
million in the first quarter 2006. Sales revenues decreased $0.6
million from $4.8 million in the first quarter 2006 to $4.2 million,
with comparable gross profit on sales of $1.3 million in the first
quarter 2007 and 2006. Total gross profit increased 14% from $17.1
million in the first quarter 2006 to $19.5 million in the first
quarter 2007. Selling and administrative expenses increased $0.1
million to $6.5 million in the first quarter 2007. Allocated interest
expense increased $0.1 million primarily due to higher average
interest rates experienced by the Company. As a result, Mobile
Modular's pre-tax income increased 23% from $9.1 million to $11.2
million in the first quarter 2007.
For the first quarter of 2007, the Company's TRS-RenTelco division
reported a 7% increase in rental revenues to $19.5 million from $18.3
million in the first quarter of 2006, with gross profit on rental
revenues increasing 7% to $7.9 million from $7.4 million in the first
quarter 2006. Sales revenues decreased 9% from $4.5 million to $4.1
million in the first quarter 2007, with gross profit on sales
decreasing $0.2 million to $1.5 million from $1.7 million in the first
quarter 2006. Selling and administrative expenses were $4.7 million in
the first quarter 2007 and 2006. Allocated interest expense increased
$0.2 million primarily due to higher average interest rates
experienced by the Company. As a result, TRS-RenTelco's pre-tax income
increased 7% from $4.0 million to $4.3 million in the first quarter
2007.
Dennis Kakures, President and CEO of McGrath RentCorp, made the
following comments regarding these results and future expectations:
"Our first quarter results reflect the continuing growth of our
modulars and electronics rental businesses. Our long-term success has
been and will continue to be driven by rental revenue growth and
higher gross profit and margin on rents.
"Mobile Modular's 11% increase in rental revenues over the first
quarter of last year is primarily related to classroom and commercial
building shipments in the second through fourth quarters of 2006. We
should experience a full 12 months of rental revenues in 2007 on a
large number of these orders. Gross profit on rents increasing 18%
compared to a year ago was driven by the higher rental revenue level
and lower direct expenses within the quarter to maintain and repair
rental equipment.
"Classroom rental opportunities and booking levels have been very
favorable thus far in 2007. In California, we are benefiting from
strong demand to modernize California's aging public school
infrastructure and the passage of the November 2006 statewide
facilities bond measure to fund these projects. In Florida, the
popularity of our hybrid classroom product, class size reduction and
the phasing out of older model code portable classrooms continue to
support strong rental revenue growth. Keep in mind that the great
majority of these classroom rental orders will not ship and begin
billing until the third quarter of 2007. Although first quarter ending
utilization stood at 81.5%, slightly above year-end 2006 levels, we
would expect marked improvement by the end of the third quarter due to
these school shipments. For the first quarter of 2007, our commercial
rental booking activity in the California and Texas markets was
generally strong, with some weakness in the residential developer
sector. In Florida, we are pleased with the volume of commercial
opportunities we are experiencing and are gaining more traction in
booking orders as we become more experienced in the market.
"TRS-RenTelco's 7% increase in rental revenues reflects higher
booking levels compared to the first quarter of 2006. We benefited
from favorable market conditions across a fairly broad base of market
segments, including communications network and aerospace and defense
applications. However, we also experienced a more competitive
environment that contributed to lower average rental rates.
Depreciation as a percentage of rents for the first quarter was 46.7%
compared to 44.4% in Q4 2006. We would expect this key metric to
improve in 2007 as we increase utilization of the latest technology
equipment that we've acquired over the past 12 months and continue to
sell older model inventory.
"In the first quarter our earnings benefited from selling and
administrative expenses that were comparable to the prior year. These
expenses were lower than anticipated for the quarter chiefly due to
the timing of filling various management positions, and to a lesser
degree lower general administrative costs and bad debt expense.
However, we expect our overhead expenses for the year to increase in
the quarters ahead as we continue to invest in our planned modular
geographic expansion, investigation and incubation of other strategic
growth initiatives, creating greater management bench strength and IT
infrastructure and ERP application platform upgrades."
FIRST QUARTER 2007 HIGHLIGHTS (AS COMPARED TO FIRST QUARTER 2006)
-- Rental revenues increased 9% to $43.3 million. Within rental
revenues, Mobile Modular increased 11% from $21.4 million to
$23.8 million; TRS-RenTelco increased 7% from $18.3 million to
$19.5 million.
-- Sales revenues decreased 11% to $9.3 million, resulting from
lower sales volume in Mobile Modular, TRS-RenTelco and
Enviroplex. The lower sales volume with a comparable gross
margin percentage of 30.2% in 2007 and 2006, resulted in a
gross profit decrease of $0.4 million. Sales revenues and
related gross margins can fluctuate from quarter to quarter
depending on customer requirements, equipment availability and
funding.
-- Depreciation of rental equipment increased 11% to $12.0
million, with Mobile Modular increasing 16% to $2.9 million
from $2.5 million in 2006, and TRS-RenTelco increasing 9% to
$9.1 million from $8.3 million in 2006.
-- Debt increased $8.7 million during the quarter to $174.2
million, with the Company's total liabilities to equity ratio
decreasing from 1.54 to 1 at December 31, 2006 to 1.51 to 1 as
of March 31, 2007. As of March 31, 2007, the Company, under
its lines of credit, had capacity to borrow an additional
$80.8 million.
-- Dividend rate increased 13% to $0.18 per share for the first
quarter 2007, as compared to $0.16 per share for the first
quarter of 2006. On an annualized basis, this dividend
represents a 2.3% yield on the May 2, 2007 close price of
$31.40.
-- Cash flows from operating activities decreased $7.3 million
during the quarter to $16.4 million, primarily attributable to
the reduction in accounts receivable in 2006 that did not
recur in 2007 partly offset by improved operating results and
other balance sheet changes.
-- EBITDA increased 14% to $31.3 million for the first quarter of
2007 compared to $27.4 million for the first quarter of 2006.
EBITDA is defined as net income before minority interest in
income of subsidiary, interest expense, provision for income
taxes, depreciation, amortization and other non-cash stock
compensation. A reconciliation of net income to EBITDA can be
found at the end of this release.
You should read this press release in conjunction with the
financial statements and notes thereto included in the Company's
latest Form 10-K and Forms 10-Q. You can visit the Company's web site
at www.mgrc.com to access information on McGrath RentCorp, including
the latest filings on Form 10-K and Form 10-Q.
FINANCIAL GUIDANCE
The Company reconfirms its 2007 full-year earnings per share to be
in a range of $1.65 to $1.73 per diluted share. Such a forward-looking
statement reflects McGrath RentCorp's expectations as of May 3, 2007.
Actual 2007 full-year earnings per share results may be materially
different and affected by many factors, including those factors
outlined in the "forward-looking statements" paragraph at the end of
this press release.
About McGrath RentCorp
Founded in 1979, the Company, under the trade name Mobile Modular
Management Corporation, rents and sells modular buildings to fulfill
customers' temporary and permanent space needs in California, Texas
and Florida. Mobile Modular believes it is the largest provider of
relocatable classrooms for rental to school districts for grades K -
12 in California. The Company's TRS-RenTelco division rents and sells
electronic test equipment and is one of the leading providers of
general purpose and communications test equipment in North America.
CONFERENCE CALL NOTE: As previously announced in its press release
of April 12, 2007, McGrath RentCorp will host a conference call at
5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) on May 3, 2007 to
discuss the first quarter 2007 results. To participate in the
teleconference, dial 1-800-219-6110 (in the U.S.), or 1-303-262-2200
(outside the US), or visit the investor relations section of the
Company's website at www.mgrc.com. Telephone replay of the call will
be available for 48 hours following the call by dialing 1-800-405-2236
(in the U.S.), or 1-303-590-3000 (outside the U.S.). The pass code for
the call replay is 11087722.
This press release contains statements, which constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995 and are subject to a number
of risks and uncertainties. These statements appear in a number of
places. Such statements can be identified by the use of
forward-looking terminology such as "believes", "expects", "may",
"estimates", "will", "should", "plans" or "anticipates" or the
negative thereof or other variations thereon or comparable
terminology, or by discussions of strategy. These forward-looking
statements are not guarantees of future performance and involve
significant risks and uncertainties. Actual results may vary
materially from those in the forward-looking statements as a result of
various factors. Important factors that could cause actual results to
differ materially from the Company's expectations are disclosed under
"Risk Factors" and elsewhere in the Company's 10-K, 10-Q and other SEC
filings, including, the effectiveness of management's strategies and
decisions, general economic, stock market and business conditions,
including in the states and countries where we sell or rent our
products; continuing demand for our products; hiring, retention and
motivation of key personnel; failure by third parties to manufacture
our products in a timely manner and to our specifications; our ability
to successfully implement information system upgrades; our ability to
finance expansion and to locate and consummate acquisitions;
fluctuations in interest rates and the Company's ability to manage
credit risk; our ability to effectively manage our rental assets; the
risk that we may be subject to litigation and claims from employees,
vendors and other third parties; fluctuations in the Company's
effective tax rate; changes in financial accounting standards; our
failure to comply with internal control requirements; catastrophic
loss to our facilities; state funding for education; new or modified
statutory or regulatory requirements; success of the Company's
strategic growth initiatives; risks associated with doing business
with government entities; seasonality of our educational and
electronics business; intense industry competition; our ability to
timely deliver, install and redeploy our modular products; significant
increases in raw materials, labor, and other costs; and risks
associated with operating internationally. There may be other factors
not listed above that could cause actual results to vary materially
from the forward-looking statements described in this press release.
The Company assumes no obligation to update any forward-looking
statements contained in this press release as a result of new
information, future events, or developments.
MCGRATH RENTCORP
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
- ----------------------------------------------------------------------
Three Months
Ended March 31,
-----------------
(in thousands, except per share amounts) 2007 2006
- ----------------------------------------------------------------------
REVENUES
- -----------------------------------------------------
Rental $43,308 $39,671
Rental Related Services 7,422 7,067
-------- --------
Rental Operations 50,730 46,738
Sales 9,343 10,498
Other 680 620
-------- --------
Total Revenues 60,753 57,856
-------- --------
COSTS AND EXPENSES
- -----------------------------------------------------
Direct Costs of Rental Operations:
Depreciation of Rental Equipment 12,019 10,858
Rental Related Services 5,093 4,960
Other 7,598 8,006
-------- --------
Total Direct Costs of Rental Operations 24,710 23,824
Costs of Sales 6,526 7,329
-------- --------
Total Costs 31,236 31,153
-------- --------
Gross Profit 29,517 26,703
Selling and Administrative 11,648 11,554
-------- --------
Income from Operations 17,869 15,149
Interest 2,621 2,353
-------- --------
Income Before Provision for Income Taxes 15,248 12,796
Provision for Income Taxes 5,947 4,991
-------- --------
Income Before Minority Interest 9,301 7,805
Minority Interest in Loss of Subsidiary (27) (32)
-------- --------
Net Income $ 9,328 $ 7,837
======== ========
Earnings Per Share:
Basic $ 0.37 $ 0.32
Diluted $ 0.37 $ 0.31
Shares Used in Per Share Calculation:
Basic 25,114 24,866
Diluted 25,387 25,604
Cash Dividends Declared Per Share $ 0.18 $ 0.16
MCGRATH RENTCORP
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
- ----------------------------------------------------------------------
March 31, December 31,
---------- ------------
(in thousands) 2007 2006
- ----------------------------------------------------------------------
ASSETS
- -----------------------------------------------
Cash $ 365 $ 349
Accounts Receivable, net of allowance for
doubtful accounts of $1,000 in 2007 and 2006 60,234 59,834
Rental Equipment, at cost:
Relocatable Modular Buildings 459,184 451,828
Electronic Test Equipment 199,699 186,673
---------- ------------
658,883 638,501
Less Accumulated Depreciation (195,973) (187,159)
---------- ------------
Rental Equipment, net 462,910 451,342
---------- ------------
Property, Plant and Equipment, net 58,393 58,146
Prepaid Expenses and Other Assets 15,537 15,871
---------- ------------
Total Assets $ 597,439 $ 585,542
========== ============
LIABILITIES AND SHAREHOLDERS' EQUITY
- -----------------------------------------------
Liabilities:
Notes Payable $ 174,217 $ 165,557
Accounts Payable and Accrued Liabilities 50,663 55,509
Deferred Income 21,559 25,852
Minority Interest in Subsidiary 3,452 3,479
Deferred Income Taxes, net 109,235 104,353
---------- ------------
Total Liabilities 359,126 354,750
---------- ------------
Shareholders' Equity:
Common Stock, no par value -
Authorized -- 40,000 shares
Issued and Outstanding -- 25,186 shares in
2007 and 25,090 shares in 2006 36,690 33,963
Retained Earnings 201,623 196,829
---------- ------------
Total Shareholders' Equity 238,313 230,792
---------- ------------
Total Liabilities and Shareholders'
Equity $ 597,439 $ 585,542
========== ============
MCGRATH RENTCORP
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Three Months Ended
March 31,
-------------------
(in thousands) 2007 2006
- ----------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
- ---------------------------------------------------
Net Income $ 9,328 $ 7,837
Adjustments to Reconcile Net Income to Net Cash
Provided by Operating Activities:
Depreciation 12,588 11,384
Provision for Doubtful Accounts 20 70
Non-Cash Stock Compensation 850 830
Gain on Sale of Rental Equipment (2,057) (2,489)
Change In:
Accounts Receivable (420) 12,548
Prepaid Expenses and Other Assets 334 743
Accounts Payable and Accrued Liabilities (4,809) (1,293)
Deferred Income (4,293) (6,950)
Deferred Income Taxes 4,882 1,059
--------- ---------
Net Cash Provided by Operating Activities 16,423 23,739
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
- ---------------------------------------------------
Purchase of Rental Equipment (27,295) (39,855)
Purchase of Property, Plant and Equipment (815) (560)
Proceeds from Sale of Rental Equipment 5,181 5,497
--------- ---------
Net Cash Used in Investing Activities (22,929) (34,918)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
- ---------------------------------------------------
Net Borrowings Under Bank Lines of Credit 8,660 13,268
Proceeds from the Exercise of Stock Options 1,407 1,256
Excess Tax Benefit from Exercise and
Disqualifying Disposition of Stock Options 471 582
Payment of Dividends (4,016) (3,480)
--------- ---------
Net Cash Provided by Financing Activities 6,522 11,626
--------- ---------
Net Increase in Cash 16 447
Cash Balance, beginning of period 349 276
--------- ---------
Cash Balance, end of period $ 365 $ 723
========= =========
Interest Paid, during the period $ 1,904 $ 1,502
========= =========
Income Taxes Paid, during the period $ 594 $ 3,349
========= =========
Dividends Declared, not yet paid $ 4,533 $ 3,992
========= =========
Rental Equipment Acquisitions, not yet paid $ 8,847 $ 7,758
========= =========
Mobile Modular - Q1 2007 compared to Q1 2006 (Unaudited)
(dollar amounts in thousands) Three Months Ended Increase
March 31, (Decrease)
-------------------- ---------------
2007 2006 $ %
--------- ---------- --------- ----
Revenues
- ----------------------------------
Rental $ 23,836 $ 21,408 $ 2,428 11%
Rental Related Services 7,049 6,766 283 4%
--------- ---------- ---------
Rental Operations 30,885 28,174 2,711 10%
Sales 4,166 4,763 (597) -13%
Other 162 183 (21) -11%
--------- ---------- ---------
Total Revenues $ 35,213 $ 33,120 $ 2,093 6%
--------- ---------- ---------
Gross Profit
- ----------------------------------
Rental $ 15,742 $ 13,376 $ 2,366 18%
Rental Related Services 2,320 2,238 82 4%
--------- ---------- ---------
Rental Operations 18,062 15,614 2,448 16%
Sales 1,307 1,342 (35) -3%
Other 162 183 (21) -11%
--------- ---------- ---------
Total Gross Profit $ 19,531 $ 17,139 $ 2,392 14%
--------- ---------- ---------
--------- ---------- ---------
Pre-tax Income $ 11,182 $ 9,063 $ 2,119 23%
--------- ---------- ---------
Other Information
- ----------------------------------
Depreciation of Rental Equipment $ 2,929 $ 2,520 $ 409 16%
Interest Expense Allocation $ 1,893 $ 1,746 $ 147 8%
Average Rental Equipment (1) $412,202 $ 368,563 $ 43,639 12%
Average Rental Equipment on Rent
(1) $335,017 $ 305,225 $ 29,792 10%
Average Monthly Total Yield (2) 1.93% 1.94% 0%
Average Utilization (3) 81.3% 82.8% -2%
Average Monthly Rental Rate (4) 2.37% 2.34% 1%
Period End Rental Equipment (1) $413,227 $ 369,530 $ 43,697 12%
Period End Utilization (3) 81.5% 82.1% -1%
Period End Floors (1) 24,910 23,269 1,641 7%
- ----------------------------------------------------------------------
1 Average and Period End Rental Equipment represents the cost of
rental equipment excluding new equipment inventory and accessory
equipment. Period End Floors excludes new equipment inventory.
2 Average Monthly Total Yield is calculated by dividing the averages
of monthly rental revenues by the cost of rental equipment, for the
period.
3 Period End Utilization is calculated by dividing the cost of rental
equipment on rent by the total cost of rental equipment excluding new
equipment inventory and accessory equipment. Average utilization for
the period is calculated using the average costs of the rental
equipment.
4 Average Monthly Rental Rate is calculated by dividing the averages
of monthly rental revenues by the cost of rental equipment on rent,
for the period.
TRS-RenTelco Segment - Q1 2007 compared to Q1 2006 (Unaudited)
(dollar amounts in thousands) Three Months Ended Increase
March 31, (Decrease)
------------------- -------------
2007 2006 $ %
--------- --------- -------- ----
Revenues
- -------------------------------------
Rental $ 19,472 $ 18,263 $ 1,209 7%
Rental Related Services 373 301 72 24%
--------- --------- --------
Rental Operations 19,845 18,564 1,281 7%
Sales 4,091 4,479 (388) -9%
Other 518 437 81 19%
--------- --------- --------
Total Revenues $ 24,454 $ 23,480 $ 974 4%
--------- --------- --------
Gross Profit
- -------------------------------------
Rental $ 7,949 $ 7,431 $ 518 7%
Rental Related Services 9 (131) 140 107%
--------- --------- --------
Rental Operations 7,958 7,300 658 9%
Sales 1,451 1,714 (263) -15%
Other 518 437 81 19%
--------- --------- --------
Total Gross Profit $ 9,927 $ 9,451 $ 476 5%
--------- --------- --------
--------- --------- --------
Pre-tax Income $ 4,288 $ 3,992 $ 296 7%
--------- --------- --------
Other Information
- -------------------------------------
Depreciation of Rental Equipment $ 9,090 $ 8,338 $ 752 9%
Interest Expense Allocation $ 878 $ 718 $ 160 22%
Average Rental Equipment (1) $191,574 $156,687 $34,887 22%
Average Rental Equipment on Rent (1) $127,567 $108,833 $18,734 17%
Average Monthly Total Yield (2) 3.39% 3.89% -13%
Average Utilization (3) 66.6% 69.5% -4%
Average Monthly Rental Rate (4) 5.09% 5.59% -9%
Period End Rental Equipment (1) $197,980 $159,460 $38,520 24%
Period End Utilization (3) 66.9% 70.6% -5%
- ----------------------------------------------------------------------
1 Average and Period End Rental Equipment represents the cost of
rental equipment excluding accessory equipment.
2 Average Monthly Total Yield is calculated by dividing the averages
of monthly rental revenues by the cost of rental equipment, for the
period.
3 Period End Utilization is calculated by dividing the cost of rental
equipment on rent by the total cost of rental equipment excluding
accessory equipment. Average Utilization for the period is calculated
using the average costs of the rental equipment.
4 Average Monthly Rental Rate is calculated by dividing the averages
of monthly rental revenues by the cost of rental equipment on rent,
for the period.
Reconciliation of Net Income to EBITDA
The Company presents EBITDA as a financial measure as management
believes it provides useful information regarding the Company's
liquidity and financial condition and because management, as well as
the Company's lenders, use this measure in evaluating the performance
of the business. EBITDA is defined by the Company as net income before
minority interest in income of subsidiary, interest expense, provision
for income taxes, depreciation, amortization, and non-cash stock
compensation. In addition, several of the loan covenants and the
determination of the interest rate related to the Company's revolving
line of credit are expressed by reference to this financial measure,
similarly calculated. EBITDA should not be considered in isolation or
as a substitute for net income, cash flows, or other consolidated
income or cash flow data prepared in accordance with generally
accepted accounting principles in the United States or as a measure of
the Company's profitability or liquidity. The Company's EBITDA may not
be comparable to similarly titled measures presented by other
companies. Since EBITDA is a non-GAAP financial measure as defined by
the Securities and Exchange Commission, the following table reconciles
EBITDA to the most directly comparable financial measures calculated
and presented in accordance with accounting principles generally
accepted in the United States for the three and twelve months ended
March 31, 2007 and 2006.
(dollar amounts in thousands) Three Months
Ended Twelve Months Ended
March 31, March 31,
----------------- -------------------
2007 2006 2007 2006
-------- -------- --------- ---------
Net Income $ 9,328 $ 7,837 $ 42,569 $ 41,479
Minority Interest in Income
(Loss) of Subsidiary (27) (32) 285 145
Provision for Income Taxes 5,947 4,991 25,166 25,188
Interest 2,621 2,353 11,028 8,524
-------- -------- --------- ---------
Income from Operations 17,869 15,149 79,048 75,336
Depreciation and Amortization 12,588 11,384 48,665 45,677
Non-Cash Stock Compensation 850 830 3,145 874
-------- -------- --------- ---------
EBITDA (1) $31,307 $27,363 $130,858 $121,887
======== ======== ========= =========
EBITDA Margin (2) 52% 47% 49% 44%
1. EBITDA is defined as net income before minority interest in income
of subsidiary, interest expense, provision for income taxes,
depreciation, amortization, and other non-cash stock compensation.
2. EBITDA Margin is calculated as EBITDA divided by total revenues for
the period.
CONTACT: McGrath RentCorp
Keith E. Pratt, 925-606-9200
Chief Financial Officer