mgrc-8k_20211028.htm
false 0000752714 0000752714 2021-10-28 2021-10-28

 

 

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):

 

October 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 October 28, 2021, McGrath RentCorp (the “Company”) announced via press release the Company’s results for its third quarter ended September 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 October 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:

October 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 October 28, 2021

 

 

McGrath RentCorp Announces Results for Third Quarter 2021

 

LIVERMORE, CA – October 28, 2021 – McGrath RentCorp (NASDAQ: MGRC) (the “Company”), a diversified business-to-business rental company, today announced total revenues for the quarter ended September 30, 2021 of $173.3 million, an increase of 11%, compared to the third quarter of 2020.  The Company reported net income of $23.3 million, or $0.95 per diluted share, for the third quarter of 2021, compared to net income of $28.1 million, or $1.15 per diluted share, for the third quarter of 2020.  

 

THIRD QUARTER 2021 Company HIGHLIGHTS:

 

Rental revenues increased 17% year-over-year to $103.3 million.

 

 

Total revenues increased 11% year-over-year to $173.3 million.

 

 

Adjusted EBITDA1 increased 5% to $66.0 million.    

 

 

Dividend rate increased 4% year-over-year to $0.435 per share for the third quarter of 2021.  On an annualized basis, this dividend represents a 2.3% yield on the October 27, 2021 close price of $75.24 per share.

 

 

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

“Our third quarter results reflect improved end market conditions in each of our three rental business segments.  Companywide rental revenues increased 17% year over year.  Modular rental revenues grew 26%, with the majority of the growth attributable to our Design Space and Kitchens To Go acquisitions.  Rental revenues at TRS and Adler grew 6% and 11%, respectively.  

 

Our teams continued working through the integration of Design Space and Kitchens To Go during the quarter and I am very pleased with their progress.  These acquisitions will provide additional long-term growth opportunities, as we expect to deploy more rental equipment capital in our expanded geographic coverage and to expand the breadth of products and services we bring to our customers.

 

We continued to see some cost pressures from elevated material and labor expenses, and some project delays, reflecting supply chain challenges.  As business activity level increased, these factors pressured modular rental and sales margins during the quarter, and pushed completion of some modular sales projects to later in the current year, and in to next year.  Partly offsetting these pressures, we are increasing pricing as demand improves.

 

The overall positive rental demand trends that we have seen in recent months have continued into the fourth quarter.  We are fully focused on solid execution for the remainder of the year.”

 

Division HIGHLIGHTS:

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

Mobile Modular

For the third quarter of 2021, the Company’s Mobile Modular division reported income from operations of $23.5 million, a decrease of $1.4 million, or 5%.  Rental revenues increased 26% to $59.2 million, depreciation expense increased 31% to $7.5 million and other direct costs increased 40% to $16.5 million, which resulted in an increase in gross profit on rental revenues of 19% to $35.1 million.  The rental revenue increase reflects in part the new Design Space and Kitchens To Go customers that contributed approximately three quarters of the increase.  Rental related services revenues increased 31% to $24.5 million, primarily attributable to higher amortization of modular building delivery and return delivery and dismantle revenues, higher site related and other services performed during the lease and increased delivery and return delivery revenues at Portable Storage, with associated gross profit increasing 15% to $6.0 million.  Sales revenues decreased 10% to $26.4 million, primarily due to lower new equipment sales. Gross margin on sales was 31% compared

 


 

to 26% in 2020, resulting in a 9% increase in gross profit on sales revenues to $8.2 million.  Selling and administrative expenses increased 47% to $26.1 million, primarily due to increased employee salaries and benefit costs totaling $2.5 million, mostly due to the addition of Design Space and Kitchens To Go employees, $2.4 million higher amortization of intangible assets associated with the Design Space and Kitchens To Go acquisitions and $1.4 million higher allocated corporate expenses.

 

TRS-RenTelco

For the third quarter of 2021, the Company’s TRS-RenTelco division reported income from operations of $9.5 million, an increase of $0.5 million, or 5%.  Rental revenues increased 6% to $29.2 million, depreciation expense increased 5% to $12.2 million and other direct costs increased 4% to $5.0 million, which resulted in a 7% increase in gross profit on rental revenues to $12.0 million.  The rental revenue increase was primarily the result of increased demand for general purpose equipment compared to the prior year.  Sales revenues decreased 31% to $4.8 million.  Gross margin on sales was 63% in 2021 compared to 44% in 2020, resulting in a 1% decrease in gross profit on sales revenues to $3.0 million.  Selling and administrative expenses increased 1% to $6.0 million.

Adler Tanks

For the third quarter of 2021, the Company’s Adler Tanks division reported income from operations of $2.8 million, an increase of 4% compared to the prior year.  Rental revenues increased 11% to $14.8 million, depreciation expense was comparable to the prior year and other direct costs increased 62% to $3.2 million, which resulted in an increased gross profit on rental revenues of 3%, to $7.6 million. Rental related services revenues increased 14% to $6.3 million, with gross profit on rental related services increasing 2%, to $1.2 million.  Selling and administrative expenses increased 9% to $6.3 million primarily due to higher allocated corporate expenses.

financial outlook:

 

Based upon the Company’s year-to-date results and current outlook for the remainder of the year, the Company is updating its financial outlook.

 

For the full-year 2021, the Company expects:

 

 

 

Previous

Current

Total revenue:

$610 million to $640 million

$618 million to $628 million

Adjusted EBITDA:

$245 million to $260 million

$245 million to $249 million

Gross rental equipment capital expenditures:

$100 million to $120 million

$108 million to $118 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 October 1, 2021, McGrath RentCorp will host a conference call at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) on October 28, 2021 to discuss the third 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 5485029.  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 Design Space and Kitchens To Go acquisitions providing additional long-term growth opportunities and the expectation to deploy more rental equipment capital and to expand the breadth of products and services to the Company’s customers, optimism about the overall positive rental demand trends, 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 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 acquisitions and the success of integrating such acquisitions; 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; our ability to successfully increase prices to offset cost increases; 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 September 30,

 

 

Nine Months Ended September 30,

 

(in thousands, except per share amounts)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental

 

$

103,269

 

 

$

88,138

 

 

$

283,937

 

 

$

263,273

 

Rental related services

 

 

31,513

 

 

 

25,040

 

 

 

73,870

 

 

 

70,026

 

Rental operations

 

 

134,782

 

 

 

113,178

 

 

 

357,807

 

 

 

333,299

 

Sales

 

 

37,636

 

 

 

42,331

 

 

 

80,503

 

 

 

87,366

 

Other

 

 

874

 

 

 

939

 

 

 

2,612

 

 

 

2,909

 

Total revenues

 

 

173,292

 

 

 

156,448

 

 

 

440,922

 

 

 

423,574

 

Costs and Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct costs of rental operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation of rental equipment

 

 

23,802

 

 

 

21,419

 

 

 

68,216

 

 

 

64,640

 

Rental related services

 

 

24,356

 

 

 

18,603

 

 

 

56,236

 

 

 

51,760

 

Other

 

 

24,711

 

 

 

18,553

 

 

 

67,696

 

 

 

56,171

 

Total direct costs of rental operations

 

 

72,869

 

 

 

58,575

 

 

 

192,148

 

 

 

172,571

 

Costs of sales

 

 

24,618

 

 

 

29,669

 

 

 

50,021

 

 

 

57,911

 

Total costs of revenues

 

 

97,487

 

 

 

88,244

 

 

 

242,169

 

 

 

230,482

 

Gross profit

 

 

75,805

 

 

 

68,204

 

 

 

198,753

 

 

 

193,093

 

Selling and administrative expenses

 

 

39,907

 

 

 

30,871

 

 

 

109,305

 

 

 

93,365

 

Income from operations

 

 

35,898

 

 

 

37,333

 

 

 

89,448

 

 

 

99,728

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(3,168

)

 

 

(1,968

)

 

 

(7,208

)

 

 

(6,804

)

Foreign currency exchange (loss) gain

 

 

(128

)

 

 

130

 

 

 

(185

)

 

 

(189

)

Income before provision for income taxes

 

 

32,602

 

 

 

35,495

 

 

 

82,055

 

 

 

92,735

 

Provision for income taxes

 

 

9,350

 

 

 

7,394

 

 

 

20,797

 

 

 

21,926

 

Net income

 

$

23,252

 

 

$

28,101

 

 

$

61,258

 

 

$

70,809

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.96

 

 

$

1.17

 

 

$

2.53

 

 

$

2.93

 

Diluted

 

$

0.95

 

 

$

1.15

 

 

$

2.50

 

 

$

2.88

 

Shares used in per share calculation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

24,245

 

 

 

24,097

 

 

 

24,209

 

 

 

24,170

 

Diluted

 

 

24,507

 

 

 

24,443

 

 

 

24,506

 

 

 

24,558

 

Cash dividends declared per share

 

$

0.435

 

 

$

0.420

 

 

$

1.305

 

 

$

1.260

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 


 

 

MCGRATH RENTCORP

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 

 

 

September 30,

 

 

December 31,

 

(in thousands)

 

2021

 

 

2020

 

Assets

 

 

 

 

 

 

 

 

Cash

 

$

2,380

 

 

$

1,238

 

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

   and $2,100 in 2020

 

 

168,831

 

 

 

123,316

 

Rental equipment, at cost:

 

 

 

 

 

 

 

 

Relocatable modular buildings

 

 

1,023,344

 

 

 

882,115

 

Electronic test equipment

 

 

363,799

 

 

 

333,020

 

Liquid and solid containment tanks and boxes

 

 

311,677

 

 

 

315,706

 

 

 

 

1,698,820

 

 

 

1,530,841

 

Less: accumulated depreciation

 

 

(635,358

)

 

 

(592,725

)

Rental equipment, net

 

 

1,063,462

 

 

 

938,116

 

Property, plant and equipment, net

 

 

135,055

 

 

 

136,210

 

Prepaid expenses and other assets

 

 

59,523

 

 

 

41,549

 

Intangible assets, net

 

 

48,715

 

 

 

7,118

 

Goodwill

 

 

132,387

 

 

 

28,197

 

Total assets

 

$

1,610,353

 

 

$

1,275,744

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

Notes payable

 

$

459,475

 

 

$

222,754

 

Accounts payable and accrued liabilities

 

 

137,308

 

 

 

108,334

 

Deferred income

 

 

69,634

 

 

 

45,975

 

Deferred income taxes, net

 

 

231,480

 

 

 

216,077

 

Total liabilities

 

 

897,897

 

 

 

593,140

 

Shareholders’ equity:

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Issued and outstanding - 24,247 shares as of September 30, 2021 and 24,128 shares as of December 31, 2020

 

 

106,744

 

 

 

106,289

 

Retained earnings

 

 

605,754

 

 

 

576,419

 

Accumulated other comprehensive loss

 

 

(42

)

 

 

(104

)

Total shareholders’ equity

 

 

712,456

 

 

 

682,604

 

Total liabilities and shareholders’ equity

 

$

1,610,353

 

 

$

1,275,744

 

 

 

 

 

 

 

 

 

 


 


 

 

MCGRATH RENTCORP

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

 

 

Nine Months Ended September 30,

 

(in thousands)

 

2021

 

 

2020

 

Cash Flows from Operating Activities:

 

 

 

 

 

 

 

 

Net income

 

$

61,258

 

 

$

70,809

 

Adjustments to reconcile net income to net cash provided by

   operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

79,047

 

 

 

71,249

 

Provision for doubtful accounts

 

 

193

 

 

 

1,227

 

Share-based compensation

 

 

5,302

 

 

 

4,894

 

Gain on sale of used rental equipment

 

 

(17,788

)

 

 

(14,110

)

Foreign currency exchange loss

 

 

185

 

 

 

189

 

Amortization of debt issuance costs

 

 

11

 

 

 

8

 

     Change in:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(33,471

)

 

 

(2,561

)

Prepaid expenses and other assets

 

 

(11,409

)

 

 

(1,314

)

Accounts payable and accrued liabilities

 

 

17,428

 

 

 

(582

)

Deferred income

 

 

20,128

 

 

 

3,591

 

Deferred income taxes

 

 

15,403

 

 

 

(1,863

)

Net cash provided by operating activities

 

 

136,287

 

 

 

131,537

 

Cash Flows from Investing Activities:

 

 

 

 

 

 

 

 

Purchases of rental equipment

 

 

(90,379

)

 

 

(65,661

)

Purchases of property, plant and equipment

 

 

(969

)

 

 

(9,639

)

Cash paid for acquisition of businesses

 

 

(285,624

)

 

 

 

Proceeds from sales of used rental equipment

 

 

41,556

 

 

 

33,837

 

Net cash used in investing activities

 

 

(335,416

)

 

 

(41,463

)

Cash Flows from Financing Activities:

 

 

 

 

 

 

 

 

Net borrowing (repayment) under bank lines of credit

 

 

176,758

 

 

 

(43,460

)

Borrowings under note purchase agreement

 

 

100,000

 

 

 

 

Principal payment of Series B senior notes

 

 

(40,000

)

 

 

 

Repurchase of common stock

 

 

 

 

 

(13,617

)

Taxes paid related to net share settlement of stock awards

 

 

(4,847

)

 

 

(3,930

)

Payment of dividends

 

 

(31,635

)

 

 

(29,642

)

Net cash provided by (used in) financing activities

 

 

200,276

 

 

 

(90,649

)

Effect of foreign currency exchange rate changes on cash

 

 

(5

)

 

 

(224

)

Net increase (decrease) in cash

 

 

1,142

 

 

 

(799

)

Cash balance, beginning of period

 

 

1,238

 

 

 

2,342

 

Cash balance, end of period

 

$

2,380

 

 

$

1,543

 

Supplemental Disclosure of Cash Flow Information:

 

 

 

 

 

 

 

 

Interest paid, during the period

 

$

6,477

 

 

$

6,829

 

Net income taxes paid, during the period

 

$

8,074

 

 

$

24,704

 

Dividends accrued during the period, not yet paid

 

$

10,002

 

 

$

10,355

 

Rental equipment acquisitions, not yet paid

 

$

2,199

 

 

$

5,827

 

 

 

 

 

 

 

 

 

 

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 September 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollar amounts in thousands)

 

Mobile Modular

 

 

TRS-RenTelco

 

 

Adler Tanks

 

 

Enviroplex

 

 

Consolidated

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental

 

$

59,223

 

 

$

29,204

 

 

$

14,842

 

 

$

 

 

$

103,269

 

Rental related services

 

 

24,468

 

 

 

699

 

 

 

6,346

 

 

 

 

 

 

31,513

 

    Rental operations

 

 

83,691

 

 

 

29,903

 

 

 

21,188

 

 

 

 

 

 

134,782

 

Sales

 

 

26,362

 

 

 

4,773

 

 

 

960

 

 

 

5,541

 

 

 

37,636

 

Other

 

 

341

 

 

 

398

 

 

 

135

 

 

 

 

 

 

874

 

        Total revenues

 

 

110,394

 

 

 

35,074

 

 

 

22,283

 

 

 

5,541

 

 

 

173,292

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct costs of rental operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Depreciation

 

 

7,544

 

 

 

12,151

 

 

 

4,107

 

 

 

 

 

 

23,802

 

    Rental related services

 

 

18,508

 

 

 

663

 

 

 

5,185

 

 

 

 

 

 

24,356

 

    Other

 

 

16,533

 

 

 

5,015

 

 

 

3,163

 

 

 

 

 

 

24,711

 

        Total direct costs of rental operations

 

 

42,585

 

 

 

17,829

 

 

 

12,455

 

 

 

 

 

 

72,869

 

Costs of  sales

 

 

18,145

 

 

 

1,743

 

 

 

680

 

 

 

4,050

 

 

 

24,618

 

        Total costs of revenues

 

 

60,730

 

 

 

19,572

 

 

 

13,135

 

 

 

4,050

 

 

 

97,487

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental

 

 

35,146

 

 

 

12,038

 

 

 

7,572

 

 

 

 

 

 

54,756

 

Rental related services

 

 

5,960

 

 

 

36

 

 

 

1,161

 

 

 

 

 

 

7,157

 

    Rental operations

 

 

41,106

 

 

 

12,074

 

 

 

8,733

 

 

 

 

 

 

61,913

 

Sales

 

 

8,217

 

 

 

3,030

 

 

 

280

 

 

 

1,491

 

 

 

13,018

 

Other

 

 

341

 

 

 

398

 

 

 

135

 

 

 

 

 

 

874

 

          Total gross profit

 

 

49,664

 

 

 

15,502

 

 

 

9,148

 

 

 

1,491

 

 

 

75,805

 

Selling and administrative expenses

 

 

26,138

 

 

 

6,010

 

 

 

6,333

 

 

 

1,426

 

 

 

39,907

 

Income from operations

 

$

23,526

 

 

$

9,492

 

 

$

2,815

 

 

$

65

 

 

 

35,898

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,168

)

Foreign currency exchange loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(128

)

Provision for income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(9,350

)

          Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

23,252

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average rental equipment 1

 

$

975,119

 

 

$

362,104

 

 

$

311,876

 

 

 

 

 

 

 

 

 

Average monthly total yield 2

 

 

2.02

%

 

 

2.69

%

 

 

1.59

%

 

 

 

 

 

 

 

 

Average utilization 3

 

 

76.5

%

 

 

66.9

%

 

 

48.1

%

 

 

 

 

 

 

 

 

Average monthly rental rate 4

 

 

2.65

%

 

 

4.02

%

 

 

3.30

%

 

 

 

 

 

 

 

 

 

 

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 September 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollar amounts in thousands)

 

Mobile Modular

 

 

TRS-RenTelco

 

 

Adler Tanks

 

 

Enviroplex

 

 

Consolidated

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental

 

$

47,134

 

 

$

27,619

 

 

$

13,385

 

 

$

 

 

$

88,138

 

Rental related services

 

 

18,684

 

 

 

800

 

 

 

5,556

 

 

 

 

 

 

25,040

 

    Rental operations

 

 

65,818

 

 

 

28,419

 

 

 

18,941

 

 

 

 

 

 

113,178

 

Sales

 

 

29,275

 

 

 

6,912

 

 

 

230

 

 

 

5,914

 

 

 

42,331

 

Other

 

 

320

 

 

 

525

 

 

 

94

 

 

 

 

 

 

939

 

        Total revenues

 

 

95,413

 

 

 

35,856

 

 

 

19,265

 

 

 

5,914

 

 

 

156,448

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and Expenses