mgrc-8k_20220728.htm
false 0000752714 0000752714 2022-07-28 2022-07-28

 

 

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):

 

July 28, 2022

 

 

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 July 28, 2022, McGrath RentCorp (the “Company”) announced via press release the Company’s results for its second quarter ended June 30, 2022.  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 July 28, 2022.

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:

July 28, 2022

 

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 July 28, 2022

 

 

McGrath RentCorp Announces Results for Second Quarter 2022

 

LIVERMORE, CA – July 28, 2022 – McGrath RentCorp (NASDAQ: MGRC) (the “Company”), a diversified business-to-business rental company, today announced total revenues for the quarter ended June 30, 2022 of $177.0 million, an increase of 21%, compared to the second quarter of 2021.  The Company reported net income of $26.1 million, or $1.07 per diluted share, for the second quarter of 2022, compared to net income of $20.6 million, or $0.84 per diluted share, for the second quarter of 2021.  

 

SECOND QUARTER 2022 YEAR-OVER-YEAR Company HIGHLIGHTS:

 

Rental revenues increased 17% to $110.6 million.

 

 

Total revenues increased 21% to $177.0 million.

 

 

Adjusted EBITDA1 increased 13% to $66.3 million.    

 

 

Dividend rate increased 5% to $0.455 per share for the second quarter of 2022.  On an annualized basis, this dividend represents a 2.2% yield on the July 27, 2022 close price of $81.18 per share.

 

 

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

“We were very pleased with our second quarter results.  Our 21% growth in total company revenues was a result of strong performance in both rental operations and sales revenues.  Demand was healthy across each of our rental segments.  Mobile Modular rental revenues grew 22%, with approximately half of the growth attributable to our Design Space and Titan Storage Container acquisitions.  Excluding the acquisitions, the modular segment rental revenues grew by 11%.  Rental revenue growth was also strong at TRS-RenTelco and Adler Tanks, which grew 7% and 18%, respectively.

 

Mobile Modular saw broad-based strength across our commercial, education and portable storage customer bases.  We responded to this strong rental demand with increased capital spending to organically grow our fleet to capture growth opportunities, while also improving overall fleet utilization and increasing pricing.  Operating expenses were elevated as we continued to spend robustly to prepare modular equipment for rent as we enter what is typically our busiest time of year for new project shipments.  Our initiatives to also grow modular sales showed progress as sales revenues increased by 68% compared to a year ago.

 

At TRS-RenTelco and Adler Tanks the positive trends we experienced earlier this year continued in the second quarter.  TRS-RenTelco saw growth in both communications and general-purpose rentals.  Adler Tanks continued to experience broad-based demand improvement across its regions and vertical markets.

 

We have delivered strong performance in the first half of the year, and we have entered the second half with good momentum across the business.  As a result, we have increased our financial outlook for the full year.”

 

Division HIGHLIGHTS:

All comparisons presented below are for the quarter ended June 30, 2022 to the quarter ended June 30, 2021 unless otherwise indicated.

Mobile Modular

For the second quarter of 2022, the Company’s Mobile Modular division reported income from operations of $23.9 million, an increase of $5.8 million, or 32%, with Adjusted EBITDA increasing $6.3 million, or 21%, to $35.8 million.  Rental revenues increased 22% to $64.9 million, depreciation expense increased 10% to $7.7 million and other direct costs increased 51% to $24.1 million, which resulted in an increase in gross profit on rental revenues of 9% to $33.1 million.  The rental revenue increase reflects the 2021 Design Space and Titan Storage Containers customers that contributed approximately one half of the increase.  Rental related services revenues increased 31% to $21.2 million, primarily attributable to higher delivery and pick up activities, and higher site related and other services performed during the lease with associated gross profit increasing 39% to $6.1 million.  Sales revenues increased 68% to $24.8 million, from both


 

higher used and new equipment sales. Gross margin on sales was 41% compared to 39% in 2021, resulting in a 75% increase in gross profit on sales revenues to $10.1 million.  Selling and administrative expenses increased 14% to $25.8 million, primarily due to increased employee salaries and benefit costs totaling $1.5 million reflecting the addition of Design Space employees, and $1.3 million higher allocated corporate expenses.

 

TRS-RenTelco

For the second quarter of 2022, the Company’s TRS-RenTelco division reported income from operations of $9.5 million, an increase of $1.0 million, or 12%, with Adjusted EBITDA increasing $1.1 million, or 5%, to $22.1 million.  Rental revenues increased 7% to $29.7 million, depreciation expense increased 3% to $12.3 million and other direct costs increased 15% to $5.4 million, which resulted in a 6% increase in gross profit on rental revenues to $11.9 million.  The rental revenue increase was the result of higher average equipment on rent and higher average monthly rental rates compared to the prior year.  Sales revenues increased 35% to $6.4 million and gross profit on sales revenues increased 23% to $3.6 million.  Selling and administrative expenses increased 9% to $6.6 million, primarily due to higher employees’ salaries and benefit costs.

Adler Tanks

For the second quarter of 2022, the Company’s Adler Tanks division reported income from operations of $3.9 million, an increase of $2.2 million, with Adjusted EBITDA increasing $1.9 million, or 28%, to $8.6 million.  Rental revenues increased $2.5 million, or 18%, to $16.0 million, depreciation expense decreased 4% to $4.0 million and other direct costs increased 24% to $3.3 million, which resulted in an increased gross profit on rental revenues of 30%, to $8.7 million. The rental revenue increase was broad based across regions and vertical markets served.  Rental related services revenues increased 17% to $6.8 million, with gross profit on rental related services increasing 63%, to $1.7 million.  Selling and administrative expenses increased 12% to $7.0 million primarily due to higher employees’ salaries and benefit costs.

financial outlook:

 

Based upon the Company’s year-to-date results and current outlook for the remainder of the year, the Company is raising its financial outlook. For the full-year 2022, the Company expects:

 

 

Previous

Current

Total revenue:

$675 million to $705 million

$695 million to $720 million

Adjusted EBITDA1, 2:

$260 million to $275 million

$266 million to $276 million

Gross rental equipment capital expenditures:

$117 million to $127 million

$145 million to $155 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 June 30, 2022, McGrath RentCorp will host a conference call at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) on July 28, 2022 to discuss the second quarter 2022 results.  To participate in the teleconference, dial 1-800-445-7795 (in the U.S.), or 1-203-518-9848 (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 1-800-839-6975 (in the U.S.), or 1-402-220-6061 (outside the U.S.).  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 spending robustly to prepare modular equipment for rent and the expectation of demand in the following quarter due to seasonality, as well as the statements regarding the full year 2022 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 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 June 30,

 

 

Six Months Ended June 30,

 

 

(in thousands, except per share amounts)

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental

 

$

110,624

 

 

$

94,581

 

 

$

214,865

 

 

$

180,668

 

 

Rental related services

 

 

28,819

 

 

 

22,688

 

 

 

53,136

 

 

 

42,357

 

 

Rental operations

 

 

139,443

 

 

 

117,269

 

 

 

268,001

 

 

 

223,025

 

 

Sales

 

 

36,471

 

 

 

28,256

 

 

 

52,347

 

 

 

42,867

 

 

Other

 

 

1,117

 

 

 

910

 

 

 

2,056

 

 

 

1,738

 

 

Total revenues

 

 

177,031

 

 

 

146,435

 

 

 

322,404

 

 

 

267,630

 

 

Costs and Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct costs of rental operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation of rental equipment

 

 

24,064

 

 

 

23,159

 

 

 

47,938

 

 

 

44,414

 

 

Rental related services

 

 

20,853

 

 

 

17,276

 

 

 

38,996

 

 

 

31,880

 

 

Other

 

 

32,825

 

 

 

23,278

 

 

 

60,648

 

 

 

42,985

 

 

Total direct costs of rental operations

 

 

77,742

 

 

 

63,713

 

 

 

147,582

 

 

 

119,279

 

 

Costs of sales

 

 

21,452

 

 

 

16,855

 

 

 

30,496

 

 

 

25,403

 

 

Total costs of revenues

 

 

99,194

 

 

 

80,568

 

 

 

178,078

 

 

 

144,682

 

 

Gross profit

 

 

77,837

 

 

 

65,867

 

 

 

144,326

 

 

 

122,948

 

 

Selling and administrative expenses

 

 

40,788

 

 

 

36,261

 

 

 

79,915

 

 

 

69,398

 

 

Income from operations

 

 

37,049

 

 

 

29,606

 

 

 

64,411

 

 

 

53,550

 

 

Other expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(3,001

)

 

 

(2,257

)

 

 

(5,821

)

 

 

(4,040

)

 

Foreign currency exchange loss

 

 

(181

)

 

 

(2

)

 

 

(168

)

 

 

(57

)

 

Income before provision for income taxes

 

 

33,867

 

 

 

27,347

 

 

 

58,422

 

 

 

49,453

 

 

Provision for income taxes

 

 

7,730

 

 

 

6,739

 

 

 

13,492

 

 

 

11,447

 

 

Net income

 

$

26,137

 

 

$

20,608

 

 

$

44,930

 

 

$

38,006

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.07

 

 

$

0.85

 

 

$

1.85

 

 

$

1.57

 

 

Diluted

 

$

1.07

 

 

$

0.84

 

 

$

1.83

 

 

$

1.55

 

 

Shares used in per share calculation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

24,360

 

 

 

24,229

 

 

 

24,323

 

 

 

24,191

 

 

Diluted

 

 

24,509

 

 

 

24,494

 

 

 

24,522

 

 

 

24,505

 

 

Cash dividends declared per share

 

$

0.455

 

 

$

0.435

 

 

$

0.910

 

 

$

0.870

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

MCGRATH RENTCORP

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 

 

 

June 30,

 

 

December 31,

 

(in thousands)

 

2022

 

 

2021

 

Assets

 

 

 

 

 

 

 

 

Cash

 

$

874

 

 

$

1,491

 

Accounts receivable, net of allowance for credit losses of $2,125 in 2022

   and 2021

 

 

167,329

 

 

 

159,499

 

Rental equipment, at cost:

 

 

 

 

 

 

 

 

Relocatable modular buildings

 

 

1,075,898

 

 

 

1,040,094

 

Electronic test equipment

 

 

389,383

 

 

 

361,391

 

Liquid and solid containment tanks and boxes

 

 

309,010

 

 

 

309,908

 

 

 

 

1,774,291

 

 

 

1,711,393

 

Less: accumulated depreciation

 

 

(676,766

)

 

 

(646,169

)

Rental equipment, net

 

 

1,097,525

 

 

 

1,065,224

 

Property, plant and equipment, net

 

 

137,465

 

 

 

135,325

 

Prepaid expenses and other assets

 

 

65,800

 

 

 

54,945

 

Intangible assets, net

 

 

44,086

 

 

 

47,049

 

Goodwill

 

 

132,305

 

 

 

132,393

 

Total assets

 

$

1,645,384

 

 

$

1,595,926

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

Notes payable

 

$

441,460

 

 

$

426,451

 

Accounts payable and accrued liabilities

 

 

137,729

 

 

 

136,313

 

Deferred income

 

 

77,551

 

 

 

58,716

 

Deferred income taxes, net

 

 

236,610

 

 

 

242,425

 

Total liabilities

 

 

893,350

 

 

 

863,905

 

Shareholders’ equity:

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Issued and outstanding - 24,378 shares as of June 30, 2022 and 24,260 shares as of December 31, 2021

 

 

105,894

 

 

 

108,610

 

Retained earnings

 

 

646,130

 

 

 

623,465

 

Accumulated other comprehensive income (loss)

 

 

10

 

 

 

(54

)

Total shareholders’ equity

 

 

752,034

 

 

 

732,021

 

Total liabilities and shareholders’ equity

 

$

1,645,384

 

 

$

1,595,926

 

 

 

 

 

 

 

 

 

 



 

 

MCGRATH RENTCORP

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

 

 

Six Months Ended June 30,

 

(in thousands)

 

2022

 

 

2021

 

Cash Flows from Operating Activities:

 

 

 

 

 

 

 

 

Net income

 

$

44,930

 

 

$

38,006

 

Adjustments to reconcile net income to net cash provided by

   operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

55,355

 

 

 

50,559

 

Deferred income taxes

 

 

(5,815

)

 

 

7,268

 

Provision for doubtful accounts

 

 

49

 

 

 

138

 

Share-based compensation

 

 

3,412

 

 

 

3,597

 

Gain on sale of used rental equipment

 

 

(16,093

)

 

 

(11,870

)

Foreign currency exchange loss

 

 

168

 

 

 

57

 

Amortization of debt issuance costs

 

 

9

 

 

 

6

 

     Change in:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(7,879

)

 

 

(5,494

)

Prepaid expenses and other assets

 

 

(10,855

)

 

 

(9,385

)

Accounts payable and accrued liabilities

 

 

(73

)

 

 

17,642

 

Deferred income

 

 

18,835

 

 

 

7,458

 

Net cash provided by operating activities

 

 

82,043

 

 

 

97,982

 

Cash Flows from Investing Activities:

 

 

 

 

 

 

 

 

Purchases of rental equipment

 

 

(94,820

)

 

 

(58,902

)

Purchases of property, plant and equipment

 

 

(6,594

)

 

 

(2,272

)

Cash paid for acquisition of businesses

 

 

 

 

 

(284,341

)

Proceeds from sales of used rental equipment

 

 

31,830

 

 

 

24,674

 

Net cash used in investing activities

 

 

(69,584

)

 

 

(320,841

)

Cash Flows from Financing Activities:

 

 

 

 

 

 

 

 

Net borrowings under bank lines of credit

 

 

15,000

 

 

 

189,983

 

Borrowings under note purchase agreement

 

 

 

 

 

60,000

 

Taxes paid related to net share settlement of stock awards

 

 

(6,128

)

 

 

(4,828

)

Payment of dividends

 

 

(22,083

)

 

 

(21,089

)

Net cash (used in) provided by financing activities

 

 

(13,211

)

 

 

224,066

 

Effect of foreign currency exchange rate changes on cash

 

 

135

 

 

 

(33

)

Net (decrease) increase in cash

 

 

(617

)

 

 

1,174

 

Cash balance, beginning of period

 

 

1,491

 

 

 

1,238

 

Cash balance, end of period

 

$

874

 

 

$

2,412

 

Supplemental Disclosure of Cash Flow Information:

 

 

 

 

 

 

 

 

Interest paid, during the period

 

$

5,821

 

 

$

3,987

 

Net income taxes paid, during the period

 

$

17,078

 

 

$

6,990

 

Dividends accrued during the period, not yet paid

 

$

11,009

 

 

$

9,918

 

Rental equipment acquisitions, not yet paid

 

$

6,906

 

 

$

8,502

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

MCGRATH RENTCORP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BUSINESS SEGMENT DATA (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended June 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollar amounts in thousands)

 

Mobile Modular

 

 

TRS-RenTelco

 

 

Adler Tanks

 

 

Enviroplex

 

 

Consolidated

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental

 

$

64,949

 

 

$

29,718

 

 

$

15,957

 

 

$

 

 

$

110,624

 

Rental related services

 

 

21,233

 

 

 

813

 

 

 

6,773

 

 

 

 

 

 

28,819

 

Rental operations

 

 

86,182

 

 

 

30,531

 

 

 

22,730

 

 

 

 

 

 

139,443

 

Sales

 

 

24,816

 

 

 

6,404

 

 

 

601

 

 

 

4,650

 

 

 

36,471

 

Other

 

 

379

 

 

 

406

 

 

 

332

 

 

 

 

 

 

1,117

 

Total revenues

 

 

111,377

 

 

 

37,341

 

 

 

23,663

 

 

 

4,650

 

 

 

177,031

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct costs of rental operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

7,749

 

 

 

12,333

 

 

 

3,982

 

 

 

 

 

 

24,064

 

Rental related services

 

 

15,116

 

 

 

664

 

 

 

5,073

 

 

 

 

 

 

20,853

 

Other

 

 

24,073

 

 

 

5,443

 

 

 

3,309

 

 

 

 

 

 

32,825

 

Total direct costs of rental operations

 

 

46,938

 

 

 

18,440

 

 

 

12,364

 

 

 

 

 

 

77,742

 

Costs of sales

 

 

14,760

 

 

 

2,765

 

 

 

418

 

 

 

3,509

 

 

 

21,452

 

Total costs of revenues

 

 

61,698

 

 

 

21,205

 

 

 

12,782

 

 

 

3,509

 

 

 

99,194

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental

 

 

33,127

 

 

 

11,942

 

 

 

8,666

 

 

 

 

 

 

53,735

 

Rental related services

 

 

6,117

 

 

 

149

 

 

 

1,700

 

 

 

 

 

 

7,966

 

Rental operations

 

 

39,244

 

 

 

12,091

 

 

 

10,366

 

 

 

 

 

 

61,701

 

Sales

 

 

10,056

 

 

 

3,639

 

 

 

183

 

 

 

1,141

 

 

 

15,019

 

Other

 

 

379

 

 

 

406

 

 

 

332

 

 

 

 

 

 

1,117

 

Total gross profit

 

 

49,679

 

 

 

16,136

 

 

 

10,881

 

 

 

1,141

 

 

 

77,837

 

Selling and administrative expenses

 

 

25,755

 

 

 

6,614

 

 

 

6,979

 

 

 

1,440

 

 

 

40,788

 

Income (loss) from operations

 

$

23,924

 

 

$

9,522

 

 

$

3,902

 

 

$

(299

)

 

 

37,049

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,001

)

Foreign currency exchange loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(181

)

Provision for income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,730

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

26,137

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA 1

 

$

35,773

 

 

$

22,128

 

 

$

8,620

 

 

$

(230

)

 

$

66,291

 

Average rental equipment 2

 

$

1,019,927

 

 

$

382,068

 

 

$

307,402

 

 

 

 

 

 

 

 

 

Average monthly total yield 3

 

 

2.12

%

 

 

2.59

%

 

 

1.73

%

 

 

 

 

 

 

 

 

Average utilization 4

 

 

78.1

%

 

 

64.5

%

 

 

51.6

%

 

 

 

 

 

 

 

 

Average monthly rental rate 5

 

 

2.72

%

 

 

4.02

%

 

 

3.35

%

 

 

 

 

 

 

 

 

 

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.

2.

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.

3.

Average monthly total yield is calculated by dividing the averages of monthly rental revenues by the cost of rental equipment for the period.

4.

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.

5.

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, 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