mgrc-8k_20210803.htm
false 0000752714 0000752714 2021-08-03 2021-08-03

 

 

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):

 

August 3, 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 August 3, 2021, McGrath RentCorp (the “Company”) announced via press release the Company’s results for its second quarter ended June 30, 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 August 3, 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:

August 3, 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 August 3, 2021

 

 

McGrath RentCorp Announces Results for Second Quarter 2021

 

LIVERMORE, CA – August 3, 2021 – McGrath RentCorp (NASDAQ: MGRC) (the “Company”), a diversified business-to-business rental company, today announced total revenues for the quarter ended June 30, 2021 of $146.4 million, an increase of 6%, compared to the second quarter of 2020.  The Company reported net income of $20.6 million, or $0.84 per diluted share, for the second quarter of 2021, compared to net income of $22.5 million, or $0.92 per diluted share, for the second quarter of 2020.  

 

SECOND QUARTER 2021 Company HIGHLIGHTS:

 

Rental revenues increased 10% year-over-year to $94.6 million.

 

 

Total revenues increased 6% year-over-year to $146.4 million.

 

 

Excluding $2.6 million Design Space and Kitchens To Go transaction related costs and amortization of newly acquired intangible assets, net income for the second quarter was $22.5 million, or $0.92 per share, which was comparable to second quarter of 2020.

 

 

Adjusted EBITDA1 increased $0.4 million to $58.5 million.    

 

 

Dividend rate increased 4% year-over-year to $0.435 per share for the second quarter of 2021.  On an annualized basis, this dividend represents a 2.2% yield on the August 2, 2021 close price of $78.90 per share.

 

 

The Company raised full year 2021 guidance for total revenue to $610 million to $640 million and for adjusted EBITDA to $245 million to $260 million.

 

 

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

Our second quarter results reflect improved end market conditions in each of our three business segments.  Companywide rental revenues increased 10% year over year.  Modular rental revenues grew 14%, with just over half the growth attributable to our Design Space and Kitchens To Go acquisitions during the quarter.  Rental revenues at TRS and Adler grew 7% and 4% respectively.  Sequential rental revenue growth in each segment reflected improving business conditions as we enter seasonally busier months of the year.

 

Our teams have been busy working through the integration of Design Space and Kitchens To Go, acquired during the second quarter.  I am grateful for their exceptional support and very pleased with their progress.  I am excited about the long-term potential from both of these acquisitions.  Just in the first few months we have begun to realize opportunities from our combined selling resources and we expect many more opportunities to come.  

 

While business activity levels have increased, we have also seen some impact from current economic realities in the new equipment sales portion of our modular business.  Supply chain delays, labor shortages and higher costs for materials and labor are starting to extend project timelines and cause some new sales to push out to later in the year, or into next year.  Consequently, our outlook for new modular equipment sales in 2021, while still higher than 2020, is not as strong as it was a few months ago.

 

The second half of the year is typically the most substantial contributor to our annual results.  While the potential for COVID-19 related disruption remains, we will be fully focused on solid execution to make the most of the improved business conditions that we have recently seen.”

 

Division HIGHLIGHTS:

All comparisons presented below are for the quarter ended June 30, 2021 to the quarter ended June 30, 2020 unless otherwise indicated.

Mobile Modular

For the second quarter of 2021, the Company’s Mobile Modular division reported income from operations of $18.2 million, a decrease of $2.4 million, or 12%.  Rental revenues increased 14% to $53.2 million, depreciation expense increased 23% to $7.1 million and other


 

direct costs increased 28% to $15.9 million, which resulted in an increase in gross profit on rental revenues of 6% to $30.3 million.  The rental revenue increase was due in part to approximately $4.0 million revenues earned during the quarter from new Design Space and Kitchens To Go customers acquired during the quarter.  Rental related services revenues increased 12% to $16.2 million, primarily due to increased delivery and return delivery revenues at Portable Storage and higher amortization of modular building delivery and return delivery and dismantle revenues, with associated gross profit increasing 7% to $4.4 million.  Sales revenues decreased 3% to $14.8 million, primarily due to lower new equipment sales. Gross margin on sales was 39% compared to 29% in 2020, resulting in a 29% increase in gross profit on sales revenues to $5.8 million.  Selling and administrative expenses increased 34% to $22.6 million, primarily due to increased employee salaries and benefit costs totaling $2.0 million, mostly due to the addition of Design Space and Kitchens To Go employees during the quarter, $1.7 million higher amortization of intangible assets due to the Design Space and Kitchens To Go acquisitions and $0.9 million acquisition related transaction costs in 2021.

 

TRS-RenTelco

For the second quarter of 2021, the Company’s TRS-RenTelco division reported income from operations of $8.5 million, an increase of $0.2 million, or 3%.  Rental revenues increased 7% to $27.9 million, depreciation expense increased 1% to $11.9 million and other direct costs increased 32% to $4.7 million, which resulted in a 5% increase in gross profit on rental revenues to $11.2 million.  The rental revenue increase was primarily due to increased demand for general purpose equipment compared to the prior year.  Sales revenues decreased 20% to $4.8 million.  Gross margin on sales was 62% in 2021 compared to 49% in 2020, resulting in a 3% increase in gross profit on sales revenues to $3.0 million.  Selling and administrative expenses increased 3% to $6.1 million.

Adler Tanks

For the second quarter of 2021, the Company’s Adler Tanks division reported income from operations of $1.7 million, which was comparable to the prior year.  Rental revenues increased 4% to $13.5 million, depreciation expense increased 2% to $4.2 million and other direct costs increased 19% to $2.7 million, which resulted in a comparable gross profit on rental revenues to $6.7 million in 2021 and 2020.  Rental related services revenues increased 8% to $5.8 million, with gross profit on rental related services decreasing $0.3 million, or 21%, to $1.0 million.  Selling and administrative expenses decreased 2% to $6.3 million.

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 Design Space, the Company is raising its financial outlook.

 

For the full-year 2021, the Company expects:

Previous Current

 

Total revenue: $570 million to $610 million$610 million to $640 million

 

 

Adjusted EBITDA: $232 million to $247 million$245 million to $260 million

 

 

Gross rental equipment capital expenditures:          $90 million to $110 million$100 million to $120 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 July 7, 2021, McGrath RentCorp will host a conference call at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) on August 3, 2021 to discuss the second 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 5573645.  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 being excited about the long-term potential from both of the Design Space and Kitchens To Go acquisitions, the expectation of the realization of more opportunities from the combined selling resources, the impact supply chain delays, labor shortages and higher costs of materials and labor are having on project timelines and the Company’s outlook for new equipment sales in 2021, the potential for COVID-19 related disruption and keeping fully focused on solid execution and improved business conditions, 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 Design Space and Kitchens 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 June 30,

 

 

Six Months Ended June 30,

 

(in thousands, except per share amounts)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental

 

$

94,581

 

 

$

85,629

 

 

$

180,668

 

 

$

175,135

 

Rental related services

 

 

22,688

 

 

 

20,475

 

 

 

42,357

 

 

 

44,986

 

Rental operations

 

 

117,269

 

 

 

106,104

 

 

 

223,025

 

 

 

220,121

 

Sales

 

 

28,256

 

 

 

30,669

 

 

 

42,867

 

 

 

45,035

 

Other

 

 

910

 

 

 

900

 

 

 

1,738

 

 

 

1,970

 

Total revenues

 

 

146,435

 

 

 

137,673

 

 

 

267,630

 

 

 

267,126

 

Costs and Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct costs of rental operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation of rental equipment

 

 

23,159

 

 

 

21,583

 

 

 

44,414

 

 

 

43,221

 

Rental related services

 

 

17,276

 

 

 

14,894

 

 

 

31,880

 

 

 

33,157

 

Other

 

 

23,278

 

 

 

18,165

 

 

 

42,985

 

 

 

37,618

 

Total direct costs of rental operations

 

 

63,713

 

 

 

54,642

 

 

 

119,279

 

 

 

113,996

 

Costs of sales

 

 

16,855

 

 

 

19,799

 

 

 

25,403

 

 

 

28,242

 

Total costs of revenues

 

 

80,568

 

 

 

74,441

 

 

 

144,682

 

 

 

142,238

 

Gross profit

 

 

65,867

 

 

 

63,232

 

 

 

122,948

 

 

 

124,888

 

Selling and administrative expenses

 

 

36,261

 

 

 

30,540

 

 

 

69,398

 

 

 

62,494

 

Income from operations

 

 

29,606

 

 

 

32,692

 

 

 

53,550

 

 

 

62,394

 

Other expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(2,257

)

 

 

(2,184

)

 

 

(4,040

)

 

 

(4,836

)

Foreign currency exchange (loss) gain

 

 

(2

)

 

 

117

 

 

 

(57

)

 

 

(319

)

Income before provision for income taxes

 

 

27,347

 

 

 

30,625

 

 

 

49,453

 

 

 

57,239

 

Provision for income taxes

 

 

6,739

 

 

 

8,076

 

 

 

11,447

 

 

 

14,531

 

Net income

 

$

20,608

 

 

$

22,549

 

 

$

38,006

 

 

$

42,708

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.85

 

 

$

0.93

 

 

$

1.57

 

 

$

1.76

 

Diluted

 

$

0.84

 

 

$

0.92

 

 

$

1.55

 

 

$

1.74

 

Shares used in per share calculation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

24,229

 

 

 

24,121

 

 

 

24,191

 

 

 

24,207

 

Diluted

 

 

24,494

 

 

 

24,471

 

 

 

24,505

 

 

 

24,612

 

Cash dividends declared per share

 

$

0.435

 

 

$

0.420

 

 

$

0.870

 

 

$

0.840

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

MCGRATH RENTCORP

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 

 

June 30,

 

 

 

 

December 31,

 

(in thousands)

 

2021

 

 

 

 

2020

 

Assets

 

 

 

 

 

 

 

 

 

 

Cash

 

$

2,412

 

 

 

 

$

1,238

 

Accounts receivable, net of allowance for doubtful accounts of $2,225 in 2021

   and $2,100 in 2020

 

 

140,909

 

 

 

 

 

123,316

 

Rental equipment, at cost:

 

 

 

 

 

 

 

 

 

 

Relocatable modular buildings

 

 

1,019,697

 

 

 

 

 

882,115

 

Electronic test equipment

 

 

360,720

 

 

 

 

 

333,020

 

Liquid and solid containment tanks and boxes

 

 

313,677

 

 

 

 

 

315,706

 

 

 

 

1,694,094

 

 

 

 

 

1,530,841

 

Less accumulated depreciation

 

 

(621,039

)

 

 

 

 

(592,725

)

Rental equipment, net

 

 

1,073,055

 

 

 

 

 

938,116

 

Property, plant and equipment, net

 

 

138,590

 

 

 

 

 

136,210

 

Prepaid expenses and other assets

 

 

57,499

 

 

 

 

 

41,549

 

Intangible assets, net

 

 

51,169

 

 

 

 

 

7,118

 

Goodwill

 

 

132,393

 

 

 

 

 

28,197

 

Total assets

 

$

1,596,027

 

 

 

 

$

1,275,744

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

Notes payable

 

$

472,696

 

 

 

 

$

222,754

 

Accounts payable and accrued liabilities

 

 

144,901

 

 

 

 

 

108,334

 

Deferred income

 

 

56,964

 

 

 

 

 

45,975

 

Deferred income taxes, net

 

 

223,345

 

 

 

 

 

216,077

 

Total liabilities

 

 

897,906

 

 

 

 

 

593,140

 

Shareholders’ equity:

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

Issued and outstanding - 24,245 shares as of June 30, 2021 and 24,128 shares as of December 31, 2020

 

 

105,058

 

 

 

 

 

106,289

 

Retained earnings

 

 

593,132

 

 

 

 

 

576,419

 

Accumulated other comprehensive loss

 

 

(69

)

 

 

 

 

(104

)

Total shareholders’ equity

 

 

698,121

 

 

 

 

 

682,604

 

Total liabilities and shareholders’ equity

 

$

1,596,027

 

 

 

 

$

1,275,744

 

 

 

 

 

 

 

 

 

 

 

 



 

 

MCGRATH RENTCORP

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

 

Six Months Ended June 30,

 

(in thousands)

 

2021

 

 

2020

 

Cash Flows from Operating Activities:

 

 

 

 

 

 

 

 

Net income

 

$

38,006

 

 

$

42,708

 

Adjustments to reconcile net income to net cash provided by

   operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

50,559

 

 

 

47,663

 

Provision for doubtful accounts

 

 

138

 

 

 

833

 

Share-based compensation

 

 

3,597

 

 

 

3,224

 

Gain on sale of used rental equipment

 

 

(11,870

)

 

 

(9,602

)

Foreign currency exchange loss

 

 

57

 

 

 

319

 

Amortization of debt issuance costs

 

 

6

 

 

 

5

 

     Change in:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(5,494

)

 

 

1,326

 

Prepaid expenses and other assets

 

 

(9,385

)

 

 

(1,641

)

Accounts payable and accrued liabilities

 

 

17,642

 

 

 

6,389

 

Deferred income

 

 

7,458

 

 

 

5,815

 

Deferred income taxes

 

 

7,268

 

 

 

483

 

Net cash provided by operating activities

 

 

97,982

 

 

 

97,522

 

Cash Flows from Investing Activities:

 

 

 

 

 

 

 

 

Purchases of rental equipment

 

 

(58,902

)

 

 

(57,564

)

Purchases of property, plant and equipment

 

 

(2,272

)

 

 

(6,893

)

Cash paid for acquisition of businesses

 

 

(284,341

)

 

 

 

Proceeds from sales of used rental equipment

 

 

24,674

 

 

 

21,921

 

Net cash used in investing activities

 

 

(320,841

)

 

 

(42,536

)

Cash Flows from Financing Activities:

 

 

 

 

 

 

 

 

Net borrowing (repayment) under bank lines of credit

 

 

189,983

 

 

 

(21,288

)

Borrowing under private placement

 

 

60,000

 

 

 

 

Repurchase of common stock

 

 

 

 

 

(13,501

)

Taxes paid related to net share settlement of stock awards

 

 

(4,828

)

 

 

(2,340

)

Payment of dividends

 

 

(21,089

)

 

 

(19,526

)

Net cash provided by (used in) financing activities

 

 

224,066

 

 

 

(56,655

)

Effect of foreign currency exchange rate changes on cash

 

 

(33

)

 

 

21

 

Net increase (decrease) in cash

 

 

1,174

 

 

 

(1,648

)

Cash balance, beginning of period

 

 

1,238

 

 

 

2,342

 

Cash balance, end of period

 

$

2,412

 

 

$

694

 

Supplemental Disclosure of Cash Flow Information:

 

 

 

 

 

 

 

 

Interest paid, during the period

 

$

3,987

 

 

$

5,031

 

Net income taxes paid, during the period

 

$

6,990

 

 

$

2,153

 

Dividends accrued during the period, not yet paid

 

$

9,918

 

 

$

10,255

 

Rental equipment acquisitions, not yet paid

 

$

8,502

 

 

$

6,654

 

 

 

 

 

 

 

 

 

 

 


 

 

MCGRATH RENTCORP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BUSINESS SEGMENT DATA (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended June 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollar amounts in thousands)

 

Mobile Modular

 

 

TRS-RenTelco

 

 

Adler Tanks

 

 

Enviroplex

 

 

Consolidated

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental

 

$

53,238

 

 

$

27,860

 

 

$

13,483

 

 

$

 

 

$

94,581

 

Rental related services

 

 

16,207

 

 

 

710

 

 

 

5,771

 

 

 

 

 

 

22,688

 

Rental operations

 

 

69,445

 

 

 

28,570

 

 

 

19,254

 

 

 

 

 

 

117,269

 

Sales

 

 

14,784

 

 

 

4,757

 

 

 

593

 

 

 

8,122

 

 

 

28,256

 

Other

 

 

343

 

 

 

456

 

 

 

111

 

 

 

 

 

 

910

 

Total revenues

 

 

84,572

 

 

 

33,783

 

 

 

19,958

 

 

 

8,122

 

 

 

146,435

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct costs of rental operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

7,074

 

 

 

11,916

 

 

 

4,169

 

 

 

 

 

 

23,159

 

Rental related services

 

 

11,804

 

 

 

745

 

 

 

4,727

 

 

 

 

 

 

17,276

 

Other

 

 

15,901

 

 

 

4,718

 

 

 

2,659

 

 

 

 

 

 

23,278

 

Total direct costs of rental operations

 

 

34,779

 

 

 

17,379

 

 

 

11,555

 

 

 

 

 

 

63,713

 

Costs of  sales

 

 

9,034

 

 

 

1,792

 

 

 

427

 

 

 

5,602

 

 

 

16,855

 

Total costs of revenues

 

 

43,813

 

 

 

19,171

 

 

 

11,982

 

 

 

5,602

 

 

 

80,568

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental

 

 

30,264

 

 

 

11,225

 

 

 

6,655

 

 

 

 

 

 

48,144

 

Rental related services

 

 

4,401

 

 

 

(33

)

 

 

1,044

 

 

 

 

 

 

5,412

 

Rental operations

 

 

34,665

 

 

 

11,192

 

 

 

7,699

 

 

 

 

 

 

53,556

 

Sales

 

 

5,751

 

 

 

2,964

 

 

 

166

 

 

 

2,520

 

 

 

11,401

 

Other

 

 

343

 

 

 

456

 

 

 

111

 

 

 

 

 

 

910

 

Total gross profit

 

 

40,759

 

 

 

14,612

 

 

 

7,976

 

 

 

2,520

 

 

 

65,867

 

Selling and administrative expenses

 

 

22,602

 

 

 

6,073

 

 

 

6,253

 

 

 

1,333

 

 

 

36,261

 

Income from operations

 

$

18,157

 

 

$

8,539

 

 

$

1,723

 

 

$

1,187

 

 

 

29,606

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,257

)

Foreign currency exchange gain

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2

)

Provision for income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,739

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

20,608

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average rental equipment 1

 

$

906,653

 

 

$

349,480

 

 

$

313,108

 

 

 

 

 

 

 

 

 

Average monthly total yield 2

 

 

1.96

%

 

 

2.66

%

 

 

1.44

%

 

 

 

 

 

 

 

 

Average utilization 3

 

 

75.5

%

 

 

67.7

%

 

 

44.0

%

 

 

 

 

 

 

 

 

Average monthly rental rate 4

 

 

2.59

%

 

 

3.93

%

 

 

3.27

%

 

 

 

 

 

 

 

 

 

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 June 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollar amounts in thousands)

 

Mobile Modular

 

 

TRS-RenTelco

 

 

Adler Tanks

 

 

Enviroplex

 

 

Consolidated

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental

 

$

46,628

 

 

$

26,012

 

 

$

12,989

 

 

$

 

 

$

85,629

 

Rental related services

 

 

14,463

 

 

 

670

 

 

 

5,342

 

 

 

 

 

 

20,475

 

Rental operations

 

 

61,091

 

 

 

26,682

 

 

 

18,331

 

 

 

 

 

 

106,104

 

Sales

 

 

15,316

 

 

 

5,922

 

 

 

232

 

 

 

9,199

 

 

 

30,669

 

Other

 

 

355

 

 

 

475

 

 

 

70

 

 

 

 

 

 

900

 

Total revenues