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8-K
false000075271400007527142023-07-272023-07-27

 

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 27, 2023

 

 

McGRATH RENTCORP

(Exact name of Registrant as Specified in Its Charter)

 

 

California

000-13292

94-2579843

(State or Other Jurisdiction
of Incorporation)

(Commission File Number)

(IRS Employer
Identification No.)

 

 

 

 

 

5700 Las Positas Road

 

Livermore, California

 

94551-7800

(Address of Principal Executive Offices)

 

(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: (925) 606-9200

 

 

(Former Name or Former Address, if Changed Since Last Report)

 

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:

☐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))

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

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 Securities 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 27, 2023, McGrath RentCorp (the “Company”) announced via press release the Company’s results for its second quarter ended June 30, 2023. 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 27, 2023.

104

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

 

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

 

 

 

 

Date:

July 27, 2023

By:

/s/ Keith E. Pratt

 

 

 

Keith E. Pratt
Executive Vice President and Chief Financial Officer

 
EX-99.1

Exhibit 99.1

https://cdn.kscope.io/8a82ba24f66aa22c7181066dd0607f30-img222354234_0.jpg 

Contact

Keith E. Pratt

EVP & Chief Financial Officer

925-606-9200

PRESS RELEASE

FOR RELEASE July 27, 2023

McGrath Announces Results for Second Quarter 2023

 

Livermore, CA - July 27, 2023 – McGrath RentCorp (“McGrath” or the “Company”) (Nasdaq: MGRC), a leading business-to-business rental company in North America, today announced total revenues from continuing operations for the quarter ended June 30, 2023 of $203.0 million, an increase of 32%, compared to the second quarter of 2022. The Company reported net income from continuing operations of $28.0 million, or $1.14 per diluted share, for the second quarter of 2023, compared to net income from continuing operations of $23.5 million, or $0.96 per diluted share, for the second quarter of 2022.

 

SECOND QUARTER 2023 YEAR-OVER-YEAR Company HIGHLIGHTS (FROM CONTINUING OPERATIONS):

•
Rental revenues increased 24% to $117.8 million.
•
Total revenues increased 32% to $203.0 million.
•
Adjusted EBITDA1 increased 33% to $77.0 million.
•
Dividend rate of $0.465 per share for the second quarter of 2023. On an annualized basis, this dividend represents a 2.0% yield on the July 26, 2023 close price of $92.16 per share.

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

“We were very pleased with our second quarter results. Our 24% increase in companywide rental revenues was driven by strong modular segment performance. Modular rental revenues grew 37%, with over half of the growth attributable to our Vesta Modular and several smaller Portable Storage acquisitions completed earlier this year. Before acquisitions, the modular segment rental revenues grew organically by a robust 14%.

 

Our modular business saw broad based rental strength across commercial, education and portable storage customer bases. Overall demand conditions continued to be positive. Our initiatives to grow modular sales also showed progress as sales revenues increased by 59% compared to a year ago. Consistent with our growth objectives, we increased our portable storage geographic coverage with the acquisitions of Dixie Storage and Inland Leasing and Storage.

 

TRS-RenTelco experienced continued softness in semiconductor related demand, resulting in lower general purpose rentals during the quarter, while communications rentals were flat, compared to a year ago. Rental revenues at TRS-RenTelco decreased by 4%.

We are continuing to make good progress with the strategic transformation of McGrath’s business portfolio. The Adler divestiture will be fully completed at the end of July, which has been a substantial undertaking for the McGrath team through the first half of the year. Concurrently, we have been making good progress with the Vesta integration. I am very pleased with the team collaboration and commercial successes that we have seen in the last few months.

Our first half accomplishments have been significant, and we look forward to building on that momentum in the second half of the year. I am excited by the range of long-term growth opportunities for McGrath.”

 

Division HIGHLIGHTS:

All comparisons presented below are for the quarter ended June 30, 2023 to the quarter ended June 30, 2022 unless otherwise indicated.

 

 

Mobile Modular

For the second quarter of 2023, the Company’s Mobile Modular division reported Adjusted EBITDA of $56.8 million, an increase of $21.1 million, or 59%.

•
Rental revenues increased 37% to $89.3 million, depreciation expense increased 33% to $10.3 million and other direct costs increased 4% to $25.1 million, which resulted in an increase in gross profit on rental revenues of 63% to $53.9 million. Vesta Modular contributed $13.9 million and $8.9 million in rental revenues and gross profit during the quarter, respectively.
•
Rental related services revenues increased 56% to $33.2 million, primarily attributable to higher delivery and pick up activities for both modular buildings and portable storage containers, with associated gross profit increasing 65% to $10.1 million. Vesta Modular contributed $4.6 million and $1.7 million in rental related services revenues and gross profit during the quarter, respectively.
•
Sales revenues increased 59% to $39.4 million, primarily from higher new equipment sales. Gross margin on sales was 31% compared to 41% in 2022, resulting in a 21% increase in gross profit on sales revenues to $12.2 million. Vesta Modular contributed $11.2 million and $2.8 million in sales revenues and gross profit during the quarter, respectively.
•
Selling and administrative expenses increased $12.5 million to $38.3 million. The addition of Vesta Modular increased selling and administrative expenses by $6.6 million, which included $1.2 million higher amortization of intangibles. In addition, allocated corporate expenses increased $2.8 million.

TRS-RenTelco

For the second quarter of 2023, the Company’s TRS-RenTelco division reported Adjusted EBITDA of $21.5 million, a decrease of 3%, when compared to the same quarter in 2022.

•
Rental revenues decreased 4% to $28.6 million, with depreciation expense and other direct costs comparable to the previous period, resulting in a 10% decrease in gross profit on rental revenues to $10.8 million. The rental revenue decrease was the result of lower average rental equipment on rent compared to the prior year, partly offset by higher average monthly rental rates.
•
Sales revenues increased 17% to $7.5 million and gross profit on sales revenues increased 12% to $4.1 million.
•
Selling and administrative expenses increased $0.5 million, or 8%, to $7.1 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 revising its financial outlook. For the full-year 2023, the Company expects:

 

 

 

Previous

(Continuing Operations)

Current

(Continuing Operations)

•

Total revenue:

$790 to $820 million

$805 to $830 million

•

Adjusted EBITDA1, 2:

$300 to $315 million

$306 to $320 million

•

Gross rental equipment capital expenditures:

$190 to $210 million

$190 to $200 million

 

1.
Adjusted EBITDA is defined as net income before interest expense, provision for income taxes, depreciation, amortization, non-cash impairment costs, share-based compensation and transaction costs. 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. Adjusted EBITDA from continuing operations for the quarter ended June 30, 2023, excludes the income from discontinued operations from the divestiture of Adler Tanks.
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.

 

 

2

 

ABOUT MCGRATH:

McGrath RentCorp (Nasdaq: MGRC) is a leading business-to-business rental company in North America with a strong record of profitable business growth. Founded in 1979, McGrath’s operations are centered on modular solutions through its Mobile Modular and Mobile Modular Portable Storage businesses. In addition, its TRS-RenTelco business offers electronic test equipment rental solutions. The Company’s rental product offerings and services are part of the circular supply economy, helping customers work more efficiently, and sustainably manage their environmental footprint. With over 40 years of experience, McGrath’s success is driven by a focus on exceptional customer experiences. This focus has underpinned the Company’s long-term financial success and supported over 30 consecutive years of annual dividend increases to shareholders, a rare distinction among publicly listed companies.

McGrath is headquartered in Livermore, California. Additional information about McGrath and its businesses is available at mgrc.com and investors.mgrc.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 29, 2023, McGrath RentCorp will host a conference call at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) on July 27, 2023 to discuss the second quarter 2023 results. To participate in the teleconference, dial 1-800-245-3047 (in the U.S.), or 1-203-518-9765 (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 1-800-839-3413 (in the U.S.), or 1-402-220-7236 (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 (i) the overall demand conditions, (ii) the progress with the strategic transformation of McGrath's business portfolio (iii) success with the integration of Vesta and additional business opportunities stemming from the acquisition, (iv) the outlook on future opportunities and the overall growth across the business, and (v) statements regarding the full year 2023 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: health of the education and commercial markets in our modular building division; unforeseen liabilities and integration challenges associated with the Vesta, Brekke Storage, Dixie Storage and Inland Storage acquisitions; competition within the modular business; the activity levels in the semiconductor and general purpose and communications test equipment markets at TRS-RenTelco; continued execution of our strategic 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 other 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.

3

 

MCGRATH RENTCORP

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

(in thousands, except per share amounts)

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

Rental

 

$

117,840

 

 

$

94,667

 

 

$

228,087

 

 

$

184,717

 

Rental related services

 

 

33,857

 

 

 

22,046

 

 

 

60,989

 

 

 

41,078

 

Rental operations

 

 

151,697

 

 

 

116,713

 

 

 

289,076

 

 

 

225,795

 

Sales

 

 

47,801

 

 

 

35,870

 

 

 

71,461

 

 

 

51,089

 

Other

 

 

3,532

 

 

 

785

 

 

 

6,211

 

 

 

1,537

 

Total revenues

 

 

203,030

 

 

 

153,368

 

 

 

366,748

 

 

 

278,421

 

Costs and Expenses

 

 

 

 

 

 

 

 

 

 

 

 

Direct costs of rental operations:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation of rental equipment

 

 

22,597

 

 

 

20,082

 

 

 

44,430

 

 

 

39,944

 

Rental related services

 

 

23,825

 

 

 

15,780

 

 

 

43,093

 

 

 

29,540

 

Other

 

 

30,560

 

 

 

29,516

 

 

 

61,695

 

 

 

54,370

 

Total direct costs of rental operations

 

 

76,982

 

 

 

65,378

 

 

 

149,218

 

 

 

123,854

 

Costs of sales

 

 

31,438

 

 

 

21,034

 

 

 

45,553

 

 

 

29,576

 

Total costs of revenues

 

 

108,420

 

 

 

86,412

 

 

 

194,771

 

 

 

153,430

 

Gross profit

 

 

94,610

 

 

 

66,956

 

 

 

171,977

 

 

 

124,991

 

Selling and administrative expenses

 

 

47,026

 

 

 

33,809

 

 

 

104,524

 

 

 

66,414

 

Income from operations

 

 

47,584

 

 

 

33,147

 

 

 

67,453

 

 

 

58,577

 

Other (expense) income:

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(9,945

)

 

 

(2,426

)

 

 

(17,409

)

 

 

(4,702

)

Foreign currency exchange (loss) gain

 

 

(18

)

 

 

(181

)

 

 

208

 

 

 

(168

)

Income from continuing operations before provision for income taxes

 

 

37,621

 

 

 

30,540

 

 

 

50,252

 

 

 

53,707

 

Provision for income taxes from continuing operations

 

 

9,669

 

 

 

6,996

 

 

 

10,782

 

 

 

12,505

 

Income from continuing operations

 

 

27,952

 

 

 

23,544

 

 

 

39,470

 

 

 

41,202

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued operations:

 

 

 

 

 

 

 

 

 

 

 

 

Income from discontinued operations before provision for income taxes

 

 

—

 

 

 

3,327

 

 

 

1,709

 

 

 

4,715

 

Provision for income taxes from discontinued operations

 

 

—

 

 

 

734

 

 

 

453

 

 

 

987

 

Gain on sale of discontinued operations, net of tax

 

 

2,630

 

 

 

—

 

 

 

61,513

 

 

 

—

 

Income from discontinued operations

 

 

2,630

 

 

 

2,593

 

 

 

62,769

 

 

 

3,728

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

30,582

 

 

$

26,137

 

 

$

102,239

 

 

$

44,930

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share from continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.14

 

 

$

0.96

 

 

$

1.61

 

 

$

1.68

 

Diluted

 

$

1.14

 

 

$

0.96

 

 

$

1.61

 

 

$

1.68

 

Earnings per share from discontinued operations:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.11

 

 

$

0.11

 

 

$

2.57

 

 

$

0.15

 

Diluted

 

$

0.11

 

 

$

0.11

 

 

$

2.56

 

 

$

0.15

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.25

 

 

$

1.07

 

 

$

4.18

 

 

$

1.83

 

Diluted

 

$

1.25

 

 

$

1.07

 

 

$

4.17

 

 

$

1.83

 

Shares used in per share calculation:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

24,479

 

 

 

24,360

 

 

 

24,448

 

 

 

24,323

 

Diluted

 

 

24,512

 

 

 

24,509

 

 

 

24,527

 

 

 

24,522

 

Cash dividends declared per share

 

$

0.465

 

 

$

0.455

 

 

$

0.930

 

 

$

0.910

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4

 

MCGRATH RENTCORP

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 

 

June 30,

 

 

December 31,

 

 

(in thousands)

 

2023

 

 

2022

 

 

Assets

 

 

 

 

 

 

 

Cash

 

$

2,205

 

 

$

957

 

 

Accounts receivable, net of allowance for credit losses of $2,600 in 2023 and $2,300 in 2022

 

 

191,676

 

 

 

169,937

 

 

Rental equipment, at cost:

 

 

 

 

 

 

 

Relocatable modular buildings

 

 

1,457,984

 

 

 

1,123,268

 

 

Electronic test equipment

 

 

390,832

 

 

 

398,267

 

 

 

 

 

1,848,816

 

 

 

1,521,535

 

 

Less: accumulated depreciation

 

 

(553,166

)

 

 

(531,218

)

 

Rental equipment, net

 

 

1,295,650

 

 

 

990,317

 

 

Property, plant and equipment, net

 

 

146,624

 

 

 

138,713

 

 

Prepaid expenses and other assets

 

 

81,967

 

 

 

69,837

 

 

Intangible assets, net

 

 

65,607

 

 

 

35,431

 

 

Goodwill

 

 

325,354

 

 

 

106,403

 

 

Assets of discontinued operations

 

 

—

 

 

 

196,249

 

 

Total assets

 

$

2,109,083

 

 

$

1,707,844

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

Notes payable

 

$

672,631

 

 

$

413,742

 

 

Accounts payable and accrued liabilities

 

 

219,611

 

 

 

151,208

 

 

Deferred income

 

 

106,523

 

 

 

82,417

 

 

Deferred income taxes, net

 

 

229,749

 

 

 

203,361

 

 

Liabilities of discontinued operations

 

 

—

 

 

 

53,171

 

 

Total liabilities

 

 

1,228,514

 

 

 

903,899

 

 

Shareholders’ equity:

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Issued and outstanding - 24,485 shares as of June 30, 2023 and 24,388 shares as of December 31, 2022

 

 

107,362

 

 

 

110,080

 

 

Retained earnings

 

 

773,260

 

 

 

693,943

 

 

Accumulated other comprehensive loss

 

 

(53

)

 

 

(78

)

 

Total shareholders’ equity

 

 

880,569

 

 

 

803,945

 

 

Total liabilities and shareholders’ equity

 

$

2,109,083

 

 

$

1,707,844

 

 

 

 

 

 

 

 

 

 

 

5

 

MCGRATH RENTCORP

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

 

 

Six Months Ended June 30,

 

(in thousands)

 

2023

 

 

2022

 

Cash Flows from Operating Activities:

 

 

 

 

 

 

Net income

 

$

102,239

 

 

$

44,930

 

Adjustments to reconcile net income to net cash provided by
   operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

54,958

 

 

 

55,355

 

Deferred income taxes

 

 

(39,486

)

 

 

(5,815

)

Provision for credit losses

 

 

1,400

 

 

 

49

 

Share-based compensation

 

 

3,382

 

 

 

3,412

 

Gain on sale of discontinued operations

 

 

(61,513

)

 

 

—

 

Gain on sale of used rental equipment

 

 

(14,250

)

 

 

(16,093

)

Foreign currency exchange (gain) loss

 

 

(208

)

 

 

168

 

Amortization of debt issuance costs

 

 

4

 

 

 

9

 

     Change in:

 

 

 

 

 

 

Accounts receivable

 

 

(1,116

)

 

 

(7,879

)

Prepaid expenses and other assets

 

 

(8,504

)

 

 

(10,855

)

Accounts payable and accrued liabilities

 

 

25,255

 

 

 

(73

)

Deferred income

 

 

9,290

 

 

 

18,835

 

Net cash provided by operating activities

 

 

71,451

 

 

 

82,043

 

Cash Flows from Investing Activities:

 

 

 

 

 

 

Proceeds from sale of discontinued operations

 

 

268,012

 

 

 

—

 

Purchases of rental equipment

 

 

(128,088

)

 

 

(94,820

)

Purchases of property, plant and equipment

 

 

(11,229

)

 

 

(6,594

)

Cash paid for acquisition of businesses

 

 

(456,312

)

 

 

—

 

Proceeds from sales of used rental equipment

 

 

27,410

 

 

 

31,830

 

Net cash used in investing activities

 

 

(300,207

)

 

 

(69,584

)

Cash Flows from Financing Activities:

 

 

 

 

 

 

Net borrowings under bank lines of credit

 

 

258,885

 

 

 

15,000

 

Taxes paid related to net share settlement of stock awards

 

 

(6,100

)

 

 

(6,128

)

Payment of dividends

 

 

(22,782

)

 

 

(22,083

)

Net cash provided by (used in) financing activities

 

 

230,003

 

 

 

(13,211

)

Effect of foreign currency exchange rate changes on cash

 

 

1

 

 

 

135

 

Net increase (decrease) in cash

 

 

1,248

 

 

 

(617

)

Cash balance, beginning of period

 

 

957

 

 

 

1,491

 

Cash balance, end of period

 

$

2,205

 

 

$

874

 

Supplemental Disclosure of Cash Flow Information:

 

 

 

 

 

 

Interest paid, during the period

 

$

16,802

 

 

$

5,821

 

Net income taxes paid, during the period

 

$

6,931

 

 

$

17,078

 

Dividends accrued during the period, not yet paid

 

$

11,937

 

 

$

11,009

 

Rental equipment acquisitions, not yet paid

 

$

7,612

 

 

$

6,906

 

 

 

 

 

 

 

 

 

6

 

MCGRATH RENTCORP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BUSINESS SEGMENT DATA (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended June 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollar amounts in thousands)

 

Mobile Modular

 

 

TRS-RenTelco

 

 

Enviroplex

 

 

Adler Tanks (Discontinued)

 

 

Consolidated

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental

 

$

89,257

 

 

$

28,583

 

 

$

—

 

 

$

—

 

 

$

117,840

 

Rental related services

 

 

33,190

 

 

 

667

 

 

 

—

 

 

 

—

 

 

 

33,857

 

Rental operations

 

 

122,447

 

 

 

29,250

 

 

 

—

 

 

 

—

 

 

 

151,697

 

Sales

 

 

39,357

 

 

 

7,521

 

 

 

923

 

 

 

—

 

 

 

47,801

 

Other

 

 

2,458

 

 

 

1,074

 

 

 

—

 

 

 

—

 

 

 

3,532

 

Total revenues

 

 

164,262

 

 

 

37,845

 

 

 

923

 

 

 

—

 

 

 

203,030

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct costs of rental operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

10,285

 

 

 

12,312

 

 

 

—

 

 

 

—

 

 

 

22,597

 

Rental related services

 

 

23,084

 

 

 

741

 

 

 

—

 

 

 

—

 

 

 

23,825

 

Other

 

 

25,082

 

 

 

5,478

 

 

 

—

 

 

 

—

 

 

 

30,560

 

Total direct costs of rental operations

 

 

58,451

 

 

 

18,531

 

 

 

—

 

 

 

—

 

 

 

76,982

 

Costs of sales

 

 

27,207

 

 

 

3,431

 

 

 

800

 

 

 

—

 

 

 

31,438

 

Total costs of revenues

 

 

85,658

 

 

 

21,962

 

 

 

800

 

 

 

—

 

 

 

108,420

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit (Loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental

 

 

53,890

 

 

 

10,793

 

 

 

—

 

 

 

—

 

 

 

64,683

 

Rental related services

 

 

10,106

 

 

 

(74

)

 

 

—

 

 

 

—

 

 

 

10,032

 

Rental operations

 

 

63,996

 

 

 

10,719

 

 

 

—

 

 

 

—

 

 

 

74,715

 

Sales

 

 

12,150

 

 

 

4,090

 

 

 

123

 

 

 

—

 

 

 

16,363

 

Other

 

 

2,458

 

 

 

1,074

 

 

 

—

 

 

 

—

 

 

 

3,532

 

Total gross profit

 

 

78,604

 

 

 

15,883

 

 

 

123

 

 

 

—

 

 

 

94,610

 

Selling and administrative expenses

 

 

38,296

 

 

 

7,126

 

 

 

1,604

 

 

 

—

 

 

 

47,026

 

Income (loss) from operations

 

$

40,308

 

 

$

8,757

 

 

$

(1,481

)

 

$

—

 

 

 

47,584

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(9,945

)

Foreign currency exchange loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(18

)

Provision for income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(9,669

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

$

27,952