mgrc-8k_20210428.htm
false 0000752714 0000752714 2021-04-28 2021-04-28

 

 

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):

 

April 28, 2021

 

 

McGRATH RENTCORP

(Exact name of registrant as specified in its Charter)

 

California

000-13292

94-2579843

(State or other jurisdiction

(Commission File Number)

(I.R.S. Employer Identification No.)

of incorporation)

 

 

 

5700 Las Positas Road, Livermore, CA  94551-7800

(Address of principal executive offices)

 

(925) 606-9200

(Registrant’s Telephone Number, Including Area Code)

 

Securities registered pursuant to Section 12(b) of the Act

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock

MGRC

NASDAQ Global Select Market

 

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))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Security Exchange  Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

 

 

 

 


 

 

Item 2.02 Results of Operations and Financial Condition.

On April 28, 2021, McGrath RentCorp (the “Company”) announced via press release the Company’s results for its first quarter ended March 31, 2021.  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 Item 2.02  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 1933 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 April 28, 2021.

104

Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

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:

April 28, 2021

 

By:

/s/  Keith E. Pratt

 

 

 

 

Keith E. Pratt

 

 

 

 

Executive Vice President and Chief Financial Officer

 

3

 

mgrc-ex991_6.htm

 

 

 

 

 

 

 

 

 

 

Exhibit 99.1

PRESS RELEASE

 

5700 Las Positas Road

Livermore, California 94551

925-606-9200

 

 

 

 

FOR RELEASE April 28, 2021

 

 

McGrath RentCorp Announces Results for First Quarter 2021

 

LIVERMORE, CA – April 28, 2021 – McGrath RentCorp (NASDAQ: MGRC) (the “Company”), a diversified business-to-business rental company, today announced total revenues for the quarter ended March 31, 2021 of $121.2 million, a decrease of 6%, compared to the first quarter of 2020.  The Company reported net income of $17.4 million, or $0.71 per diluted share, for the first quarter of 2021, compared to net income of $20.2 million, or $0.81 per diluted share, for the first quarter of 2020.  

 

FIRST QUARTER 2021 Company HIGHLIGHTS:

 

Rental revenues decreased 4% year-over-year to $86.1 million.

 

 

Total revenues decreased 6% year-over-year to $121.2 million.

 

 

Adjusted EBITDA1 decreased $5.7 million to $49.1 million, which included a $2.1 million non-operating legal expense.    

 

 

Dividend rate increased 4% year-over-year to $0.435 per share for the first quarter of 2021.  On an annualized basis, this dividend represents a 2.1% yield on the April 27, 2021 close price of $81.93 per share.

 

 

Joe Hanna, President and CEO of McGrath RentCorp, made the following comments regarding these results and future expectations:

“Our first quarter rental revenues declined by only 4% compared to a very strong first quarter of 2020, with the majority of the decline at Adler Tank Rentals.  Despite the remaining effects of the pandemic, rental revenues at Mobile Modular and TRS-RenTelco decreased by only 2% and 1%, respectively.  

While weather and pandemic uncertainty muted activity early in the quarter, we saw conditions steadily improve, which has translated to stronger bookings in many of our industry verticals.  Now that vaccine distribution is a reality and the population is more confident, our customers are becoming more positive in their outlook. Commercial business has been healthy and booking momentum improved as the quarter progressed.  School districts have either returned students to classrooms, or are planning to, and we are more encouraged about the outlook for our education business.  

In early April we completed the acquisition of Kitchens To Go, which provides modular food service facilities for rental and sale nationwide.  This addition is highly complementary to our modular building rental business.  We added a capable team and quality equipment.  Together we look forward to growing this new product line.

Overall, I am pleased with our start to the year.  We are encouraged by recent customer and field feedback on potential project activity and we will be working hard to capitalize on this positive momentum as the year continues.”

 

Division HIGHLIGHTS:

All comparisons presented below are for the quarter ended March 31, 2021 to the quarter ended March 31, 2020 unless otherwise indicated.

Mobile Modular

For the first quarter of 2021, the Company’s Mobile Modular division reported income from operations of $15.7 million, a decrease of $3.7 million, or 19%.  Rental revenues decreased 2% to $46.7 million, depreciation expense increased 3% to $5.8 million and other direct costs increased 2% to $12.9 million, which resulted in a decrease in gross profit on rental revenues of 4% to $28.0 million.  The rental revenue decline was due to decreased demand from commercial and education customers.  Rental related services revenues decreased 23% to $14.1 million, primarily due to lower revenues from site related services, with associated gross profit decreasing 17% to $4.0 million.  Sales revenues increased 5% to $7.6 million, primarily due to higher new equipment sales with gross margin on sales comparable at 35%, resulting in a 5% increase in gross profit on sales revenues to $2.7 million.  Selling and administrative expenses increased 10% to $19.2 million, primarily due to a non-operating legal expense recorded in 2021.

 


 

 

TRS-RenTelco

For the first quarter of 2021, the Company’s TRS-RenTelco division reported income from operations of $8.5 million, an increase of $0.1 million, or 1%.  Rental revenues decreased 1% to $27.3 million, depreciation expense decreased 4% to $11.4 million and other direct costs increased 4% to $4.5 million, which resulted in a $0.1 million increase in gross profit on rental revenues to $11.4 million.  The rental revenue decline was due to decreased demand from telecommunications customers, partly offset by increases from general purpose test equipment customers.  Sales revenues were comparable at $5.1 million.  Gross margin on sales was 55% in 2021 compared to 52% in 2020, resulting in a 7% increase in gross profit on sales revenues to $2.8 million.  Selling and administrative expenses decreased 1% to $6.3 million.

Adler Tanks

For the first quarter of 2021, the Company’s Adler Tanks division reported income from operations of $0.8 million, a decrease of $1.9 million.  Rental revenues decreased 17% to $12.2 million, depreciation expense decreased 2% to $4.1 million and other direct costs decreased 6% to $2.3 million, which resulted in a 27% decrease in gross profit on rental revenues to $5.8 million.  The rental revenue decrease was primarily due to weaker business activity levels in multiple geographic and market segments.  Rental related services revenues decreased 12% to $4.9 million, with gross profit on rental related services decreasing 22% to $1.0 million.  Selling and administrative expenses decreased 8% to $6.3 million, primarily due to decreased travel, meal and meeting costs and lower corporate allocated expenses.

financial outlook:

Based upon the Company’s year-to-date results, current outlook for the remainder of the year, and the previously announced acquisition of Kitchens To Go, the Company is raising its financial outlook.

 

For the full-year 2021, the Company expects:

 

 

Total revenue: $570 million - $610 million

 

 

Adjusted EBITDA: $232 million - $247 million

 

 

Gross rental equipment capital expenditures: $90 million to $110 million

 

 

1.

Adjusted EBITDA is defined as net income before interest expense, provision for income taxes, depreciation, amortization, non-cash impairment costs and share-based compensation.  A reconciliation of actual net income to Adjusted EBITDA and Adjusted EBITDA to net cash provided by operating activities can be found at the end of this release.

2.

Information reconciling forward-looking Adjusted EBITDA to the comparable GAAP financial measures is unavailable to the Company without unreasonable effort because certain items required for such reconciliations are outside of the Company’s control and/or cannot be reasonably predicted, such as the provision for income taxes. Therefore, no reconciliation to the most comparable GAAP measures is provided. The Company provides Adjusted EBITDA guidance because it believes that Adjusted EBITDA, when viewed with the Company’s results under GAAP, provides useful information for the reasons noted in the reconciliation of actual Adjusted EBITDA to the most directly comparable GAAP measures at the end of this release.  

 

About McGrath RentCorp:

Founded in 1979, McGrath RentCorp (Nasdaq: MGRC) is a diversified business-to-business rental company providing modular buildings, electronic test equipment, portable storage and tank containment solutions across the United States and other select North American regions.  The Company’s rental operations consist of four divisions: Mobile Modular rents and sells modular buildings to fulfill customers’ temporary and permanent classroom and office space needs; TRS-RenTelco rents and sells electronic test equipment; Adler Tank Rentals rents and sells containment solutions for hazardous and nonhazardous liquids and solids; and Mobile Modular Portable Storage provides portable storage rental solutions.  For more information on McGrath RentCorp and its operating units, please visit our websites:

 

Corporate – www.mgrc.com

Modular Buildings – www.mobilemodular.com

Electronic Test Equipment – www.trsrentelco.com

Tanks and Boxes – www.adlertankrentals.com

Portable Storage – www.mobilemodularcontainers.com

School Facilities Manufacturing – www.enviroplex.com

 

You should read this press release in conjunction with the financial statements and notes thereto included in the Company’s latest Forms 10-K, 10-Q and other SEC filings.  You can visit the Company’s web site at www.mgrc.com to access information on McGrath RentCorp, including the latest Forms 10-K, 10-Q and other SEC filings.

 

 


 

 

Conference Call Note:

As previously announced in its press release of March 31, 2021, McGrath RentCorp will host a conference call at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) on April 28, 2021 to discuss the first quarter 2021 results.  To participate in the teleconference, dial 1-844-707-0666 (in the U.S.), or 1-703-639-1220 (outside the U.S.), or to listen only, access the simultaneous webcast at the investor relations section of the Company’s website at https://investors.mgrc.com/.  A replay will be available for 7 days following the call by dialing 1-855-859-2056 (in the U.S.), or 1-404-537-3406 (outside the U.S.).  The pass code for the conference call replay is 1586503.  In addition, a live audio webcast and replay of the call may be found in the investor relations section of the Company’s website at https://investors.mgrc.com/events-and-presentations.

 

FORWARD-LOOKING STATEMENTS:

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  All statements, other than statements of historical facts, regarding McGrath RentCorp’s expectations, strategies, prospects or targets are forward looking statements.  These forward-looking statements also can be identified by the use of forward-looking terminology such as “anticipates,” “believes,” “continues,” “could,” “estimates,” “expects,” “intends,” “may,” “plan,” “predict,” “project,” or “will,” or the negative of these terms or other comparable terminology.  In particular, Mr. Hanna’s statements about the vaccine distribution being a reality and the population more confident, stronger bookings in many of the Company’s industry verticals, the Company’s customers becoming more positive in their outlook, encouragement about the outlook for the Company’s education business, the addition of Kitchens To Go being highly complementary to the Company’s modular building rental business, and growing the new product line in this business, and being encouraged by recent customer and field feedback on potential project activity and positive momentum as the year continues, as well as the statements regarding the full year 2021 in the “Financial Outlook” section, are forward-looking.

These forward-looking statements are not guarantees of future performance and involve significant risks and uncertainties that could cause our actual results to differ materially from those projected including: the duration of the COVID-19 pandemic and its economic impact, the extent and length of the shelter-in and other restrictions associated with COVID-19 pandemic, the health of the education and commercial markets in our modular building division; the activity levels in the general purpose and communications test equipment markets at TRS-RenTelco; the ability to obtain the synergies expected from the Kitchen To Go acquisition, the utilization levels and rental rates of our Adler Tanks liquid and solid containment tank and box rental assets; continued execution of our performance improvement initiatives; and our ability to effectively manage our rental assets, as well as the factors disclosed under “Risk Factors” in the Company’s Form 10-K and other SEC filings.

Forward-looking statements are made only as of the date hereof.  Except as otherwise required by law, we assume no obligation to update any of the forward-looking statements contained in this press release.

 


 

MCGRATH RENTCORP

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

 

 

Three Months Ended March 31,

 

(in thousands, except per share amounts)

 

2021

 

 

2020

 

Revenues

 

 

 

 

 

 

 

 

Rental

 

$

86,087

 

 

$

89,506

 

Rental related services

 

 

19,669

 

 

 

24,511

 

Rental operations

 

 

105,756

 

 

 

114,017

 

Sales

 

 

14,611

 

 

 

14,366

 

Other

 

 

828

 

 

 

1,070

 

Total revenues

 

 

121,195

 

 

 

129,453

 

Costs and Expenses

 

 

 

 

 

 

 

 

Direct costs of rental operations:

 

 

 

 

 

 

 

 

Depreciation of rental equipment

 

 

21,255

 

 

 

21,638

 

Rental related services

 

 

14,604

 

 

 

18,263

 

Other

 

 

19,707

 

 

 

19,453

 

Total direct costs of rental operations

 

 

55,566

 

 

 

59,354

 

Costs of sales

 

 

8,548

 

 

 

8,443

 

Total costs of revenues

 

 

64,114

 

 

 

67,797

 

Gross profit

 

 

57,081

 

 

 

61,656

 

Selling and administrative expenses

 

 

33,137

 

 

 

31,954

 

Income from operations

 

 

23,944

 

 

 

29,702

 

Other expense:

 

 

 

 

 

 

 

 

Interest expense

 

 

(1,783

)

 

 

(2,652

)

Foreign currency exchange loss

 

 

(55

)

 

 

(436

)

Income before provision for income taxes

 

 

22,106

 

 

 

26,614

 

Provision for income taxes

 

 

4,708

 

 

 

6,455

 

Net income

 

$

17,398

 

 

$

20,159

 

Earnings per share:

 

 

 

 

 

 

 

 

Basic

 

$

0.72

 

 

$

0.83

 

Diluted

 

$

0.71

 

 

$

0.81

 

Shares used in per share calculation:

 

 

 

 

 

 

 

 

Basic

 

 

24,153

 

 

 

24,292

 

Diluted

 

 

24,512

 

 

 

24,738

 

Cash dividends declared per share

 

$

0.435

 

 

$

0.420

 

 

 

 

 

 

 

 

 

 


 


 

 

MCGRATH RENTCORP

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 

 

March 31,

 

 

December 31,

 

(in thousands)

 

2021

 

 

2020

 

Assets

 

 

 

 

 

 

 

 

Cash

 

$

2,329

 

 

$

1,238

 

Accounts receivable, net of allowance for doubtful accounts of $2,100 in 2021

   and 2020

 

 

122,208

 

 

 

123,316

 

Rental equipment, at cost:

 

 

 

 

 

 

 

 

Relocatable modular buildings

 

 

886,299

 

 

 

882,115

 

Electronic test equipment

 

 

342,105

 

 

 

333,020

 

Liquid and solid containment tanks and boxes

 

 

314,444

 

 

 

315,706

 

 

 

 

1,542,848

 

 

 

1,530,841

 

Less accumulated depreciation

 

 

(606,905

)

 

 

(592,725

)

Rental equipment, net

 

 

935,943

 

 

 

938,116

 

Property, plant and equipment, net

 

 

135,034

 

 

 

136,210

 

Prepaid expenses and other assets

 

 

41,643

 

 

 

41,549

 

Intangible assets, net

 

 

7,069

 

 

 

7,118

 

Goodwill

 

 

28,197

 

 

 

28,197

 

Total assets

 

$

1,272,423

 

 

$

1,275,744

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

Notes payable

 

$

208,806

 

 

$

222,754

 

Accounts payable and accrued liabilities

 

 

112,551

 

 

 

108,334

 

Deferred income

 

 

50,562

 

 

 

45,975

 

Deferred income taxes, net

 

 

212,819

 

 

 

216,077

 

Total liabilities

 

 

584,738

 

 

 

593,140

 

Shareholders’ equity:

 

 

 

 

 

 

 

 

Common stock, no par value - Authorized 40,000 shares

 

 

 

 

 

 

 

 

Issued and outstanding - 24,206 shares as of March 31, 2021 and 24,128 shares as of December 31, 2020

 

 

104,584

 

 

 

106,289

 

Retained earnings

 

 

583,167

 

 

 

576,419

 

Accumulated other comprehensive loss

 

 

(66

)

 

 

(104

)

Total shareholders’ equity

 

 

687,685

 

 

 

682,604

 

Total liabilities and shareholders’ equity

 

$

1,272,423

 

 

$

1,275,744

 

 

 

 

 

 

 

 

 

 


 


 

 

MCGRATH RENTCORP

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

 

Three Months Ended March 31,

 

(in thousands)

 

2021

 

 

2020

 

Cash Flows from Operating Activities:

 

 

 

 

 

 

 

 

Net income

 

$

17,398

 

 

$

20,159

 

Adjustments to reconcile net income to net cash provided by

   operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

23,460

 

 

 

23,862

 

Provision for doubtful accounts

 

 

99

 

 

 

552

 

Share-based compensation

 

 

1,777

 

 

 

1,723

 

Gain on sale of used rental equipment

 

 

(4,794

)

 

 

(4,788

)

Foreign currency exchange loss

 

 

55

 

 

 

436

 

Amortization of debt issuance costs

 

 

3

 

 

 

3

 

     Change in:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

1,009

 

 

 

1,713

 

Prepaid expenses and other assets

 

 

(94

)

 

 

363

 

Accounts payable and accrued liabilities

 

 

(2,633

)

 

 

(6,383

)

Deferred income

 

 

4,587

 

 

 

6,943

 

Deferred income taxes

 

 

(3,258

)

 

 

1,099

 

Net cash provided by operating activities

 

 

37,609

 

 

 

45,682

 

Cash Flows from Investing Activities:

 

 

 

 

 

 

 

 

Purchases of rental equipment

 

 

(17,984

)

 

 

(35,374

)

Purchases of property, plant and equipment

 

 

(981

)

 

 

(3,196

)

Proceeds from sales of used rental equipment

 

 

10,418

 

 

 

10,356

 

Net cash used in investing activities

 

 

(8,547

)

 

 

(28,214

)

Cash Flows from Financing Activities:

 

 

 

 

 

 

 

 

Net repayment under bank lines of credit

 

 

(13,931

)

 

 

(1,890

)

Repurchase of common stock

 

 

 

 

 

(7,852

)

Taxes paid related to net share settlement of stock awards

 

 

(3,482

)

 

 

(401

)

Payment of dividends

 

 

(10,554

)

 

 

(9,369

)

Net cash used in financing activities

 

 

(27,967

)

 

 

(19,512

)

Effect of foreign currency exchange rate changes on cash

 

 

(4

)

 

 

44

 

Net (decrease) increase in cash

 

 

1,091

 

 

 

(2,000

)

Cash balance, beginning of period

 

 

1,238

 

 

 

2,342

 

Cash balance, end of period

 

$

2,329

 

 

$

342

 

Supplemental Disclosure of Cash Flow Information:

 

 

 

 

 

 

 

 

Interest paid, during the period

 

$

1,625

 

 

$

2,859

 

Net income taxes paid, during the period

 

$

372

 

 

$

363

 

Dividends accrued during the period, not yet paid

 

$

9,810

 

 

$

10,218

 

Rental equipment acquisitions, not yet paid

 

$

11,095

 

 

$

6,537

 

 

 

 

 

 

 

 

 

 

 

 


 

 

MCGRATH RENTCORP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BUSINESS SEGMENT DATA (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended March 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollar amounts in thousands)

 

Mobile Modular

 

 

TRS-RenTelco

 

 

Adler Tanks

 

 

Enviroplex

 

 

Consolidated

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental

 

$

46,657

 

 

$

27,276

 

 

$

12,154

 

 

$

 

 

$

86,087

 

Rental related services

 

 

14,051

 

 

 

740

 

 

 

4,878

 

 

 

 

 

 

19,669

 

Rental operations

 

 

60,708

 

 

 

28,016

 

 

 

17,032

 

 

 

 

 

 

105,756

 

Sales

 

 

7,620

 

 

 

5,149

 

 

 

608

 

 

 

1,234

 

 

 

14,611

 

Other

 

 

320

 

 

 

438

 

 

 

70

 

 

 

 

 

 

828

 

Total revenues

 

 

68,648

 

 

 

33,603

 

 

 

17,710

 

 

 

1,234

 

 

 

121,195

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct costs of rental operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

5,819

 

 

 

11,362

 

 

 

4,074

 

 

 

 

 

 

21,255

 

Rental related services

 

 

10,072

 

 

 

653

 

 

 

3,879

 

 

 

 

 

 

14,604

 

Other

 

 

12,875

 

 

 

4,534

 

 

 

2,298

 

 

 

 

 

 

19,707

 

Total direct costs of rental operations

 

 

28,766

 

 

 

16,549

 

 

 

10,251

 

 

 

 

 

 

55,566

 

Costs of sales

 

 

4,948

 

 

 

2,301

 

 

 

416

 

 

 

883

 

 

 

8,548

 

Total costs of revenues

 

 

33,714

 

 

 

18,850

 

 

 

10,667

 

 

 

883

 

 

 

64,114

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental

 

 

27,963

 

 

 

11,380

 

 

 

5,782

 

 

 

 

 

 

45,125

 

Rental related services

 

 

3,979

 

 

 

87

 

 

 

999

 

 

 

 

 

 

5,065

 

Rental operations

 

 

31,942

 

 

 

11,467

 

 

 

6,781

 

 

 

 

 

 

50,190

 

Sales

 

 

2,672

 

 

 

2,848

 

 

 

192

 

 

 

351

 

 

 

6,063

 

Other

 

 

320

 

 

 

438

 

 

 

70

 

 

 

 

 

 

828

 

Total gross profit

 

 

34,934

 

 

 

14,753

 

 

 

7,043

 

 

 

351

 

 

 

57,081

 

Selling and administrative expenses

 

 

19,237

 

 

 

6,298

 

 

 

6,267

 

 

 

1,335

 

 

 

33,137

 

Income (loss) from operations

 

$

15,697

 

 

$

8,455

 

 

$

776

 

 

$

(984

)

 

$

23,944

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,783

)

Foreign currency exchange loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(55

)

Provision for income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,708

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

17,398

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average rental equipment 1

 

$

836,893

 

 

$

334,781

 

 

$

313,873

 

 

 

 

 

 

 

 

 

Average monthly total yield 2

 

 

1.86

%

 

 

2.72

%

 

 

1.29

%

 

 

 

 

 

 

 

 

Average utilization 3

 

 

75.8

%

 

 

68.1

%

 

 

40.3

%

 

 

 

 

 

 

 

 

Average monthly rental rate 4

 

 

2.45

%

 

 

3.99

%

 

 

3.21

%

 

 

 

 

 

 

 

 

 

1.

Average rental equipment represents the cost of rental equipment, excluding accessory equipment.  For Mobile Modular and Adler Tanks, Average rental equipment also 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.Average utilization is calculated by dividing the average month end costs of rental equipment on rent by the average month end total costs of 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.

 

 


 

 

MCGRATH RENTCORP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BUSINESS SEGMENT DATA (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended March 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollar amounts in thousands)

 

Mobile Modular

 

 

TRS-RenTelco

 

 

Adler Tanks

 

 

Enviroplex

 

 

Consolidated

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental

 

$

47,410

 

 

$

27,536

 

 

$

14,560

 

 

$

 

 

$

89,506

 

Rental related services

 

 

18,144

 

 

 

826

 

 

 

5,541

 

 

 

 

 

 

24,511

 

Rental operations

 

 

65,554

 

 

 

28,362

 

 

 

20,101

 

 

 

 

 

 

114,017

 

Sales

 

 

7,256

 

 

 

5,109

 

 

 

498

 

 

 

1,503

 

 

 

14,366

 

Other

 

 

388

 

 

 

592

 

 

 

90

 

 

 

 

 

 

1,070

 

Total revenues

 

 

73,198

 

 

 

34,063

 

 

 

20,689

 

 

 

1,503

 

 

 

129,453

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct costs of rental operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

5,669

 

 

 

11,832

 

 

 

4,137

 

 

 

 

 

 

21,638

 

Rental related services

 

 

13,350

 

 

 

646

 

 

 

4,267

 

 

 

 

 

 

18,263

 

Other

 

 

12,617

 

 

 

4,380

 

 

 

2,456

 

 

 

 

 

 

19,453

 

Total direct costs of rental operations

 

 

31,636

 

 

 

16,858

 

 

 

10,860

 

 

 

 

 

 

59,354

 

Costs of sales

 

 

4,703

 

 

 

2,448

 

 

 

320

 

 

 

972

 

 

 

8,443

 

Total costs of revenues

 

 

36,339

 

 

 

19,306

 

 

 

11,180

 

 

 

972

 

 

 

67,797

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental

 

 

29,124

 

 

 

11,324

 

 

 

7,967

 

 

 

 

 

 

48,415

 

Rental related services

 

 

4,794

 

 

 

180

 

 

 

1,274

 

 

 

 

 

 

6,248

 

Rental operations

 

 

33,918

 

 

 

11,504

 

 

 

9,241

 

 

 

 

 

 

54,663

 

Sales

 

 

2,553

 

 

 

2,661

 

 

 

178

 

 

 

531

 

 

 

5,923

 

Other

 

 

388

 

 

 

592

 

 

 

90

 

 

 

 

 

 

1,070

 

Total gross profit

 

 

36,859

 

 

 

14,757

 

 

 

9,509

 

 

 

531

 

 

 

61,656

 

Selling and administrative expenses

 

 

17,418

 

 

 

6,361

 

 

 

6,824

 

 

 

1,351