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19-02-2025
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McGrath Announces Results for Fourth Quarter 2024 and Announces 34th Annual Dividend Increase
LIVERMORE, Calif., February 19, 2025--(BUSINESS WIRE)--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 December 31, 2024 of $243.7 million, an increase of 10% compared to the fourth quarter of 2023. The Company reported net income from continuing operations of $38.9 million, or $1.58 per diluted share, for the fourth quarter of 2024, compared to net income from continuing operations of $32.0 million, or $1.30 per diluted share, for the fourth quarter of 2023. Total revenues from continuing operations for the full year ended December 31, 2024 increased to $910.9 million, an increase of 10%, from $831.8 million in 2023, with adjusted EBITDA increasing $33.4 million, or 10%, to $351.7 million. Net income from continuing operations for the year ended December 31, 2024 was $231.7 million, or $9.43 per diluted share, compared to $111.9 million, or $4.56 per diluted share, in 2023. Excluding the $180.0 million merger termination payment received from WillScot Mobile Mini and $63.2 million in transaction costs incurred by McGrath during the year, net of provision for income taxes, the Company reported net income from continuing operations of $145.7 million, or $5.93 per diluted share. The Company also announced that the board of directors declared a cash dividend of $0.485 per share for the upcoming quarter ending March 31, 2025, a quarterly increase of $0.01, or 2%, over the prior year period. The cash dividend will be payable on April 30, 2025 to all shareholders of record on April 16, 2025. This marks 34 consecutive years the Company has increased its annual dividend. FOURTH QUARTER 2024 YEAR-OVER-YEAR COMPANY HIGHLIGHTS (FROM CONTINUING OPERATIONS): Rental revenues increased 1% to $124.2 million. Sales revenues increased 37% to $80.3 million. Total revenues increased 10% to $243.7 million. Adjusted EBITDA1 increased 5% to $92.0 million. Dividend rate of $0.475 per share for the fourth quarter 2024. On an annualized basis, this dividend represents a 1.6% yield on the February 18, 2025 close price of $122.22 per share. Joe Hanna, President and CEO of McGrath, made the following comments: "We were pleased with our fourth quarter results. The 10% increase in companywide revenues and 5% increase in Adjusted EBITDA were driven by growth at Mobile Modular. Our modular business had a good quarter, with 8% rental revenue growth. Rental revenues grew across both commercial and education customer bases. We maintained our focus on pricing optimization, rental fleet utilization, and value-added services for our customers. Growth initiatives for Mobile Modular Plus, Site Related Services and new modular equipment sales all continued to show progress. Portable Storage weak demand conditions continued, resulting in 15% lower rental revenues for the quarter, compared to a year ago. The weaker demand was broad-based across regions and was primarily a result of lower commercial construction project activity. TRS-RenTelco experienced continued demand challenges, resulting in 9% lower rental revenues for the quarter, compared to a year ago. During the quarter we maintained discipline with respect to new equipment capital spending and made progress with reducing the fleet size to better align with demand conditions. I appreciate the strong execution from the McGrath team to deliver solid results for the year despite the demand headwinds at Portable Storage and TRS-RenTelco. I am encouraged by our start to 2025 and confident that our teams are very focused on building on last year's successes." DIVISION HIGHLIGHTS: All comparisons presented below are for the quarter ended December 31, 2024 to the quarter ended December 31, 2023 unless otherwise indicated. MOBILE MODULAR For the fourth quarter of 2024, the Company's Mobile Modular division reported Adjusted EBITDA of $61.0 million, an increase of $6.9 million, or 13%, when compared to the same quarter in 2023. Rental revenues increased 8% to $82.1 million, depreciation expense increased 7% to $10.4 million, and other direct costs increased 2% to $18.5 million, which resulted in an increase in gross profit on rental revenues of 11% to $53.2 million. Rental related services revenues increased 5% to $32.1 million, primarily attributable to higher delivery and pick-up activities and higher site related services, with associated gross profit increasing 5% to $11.6 million. Sales revenues increased 32% to $56.0 million, primarily from higher new equipment sales. Gross margin on sales was 26% in 2024 compared to 32% in 2023, resulting in a 5% increase in gross profit on sales revenues to $14.3 million. Selling and administrative expenses decreased $1.4 million to $35.8 million, when compared to the prior year. PORTABLE STORAGE For the fourth quarter of 2024, the Company's Portable Storage division reported Adjusted EBITDA of $9.9 million, a decrease of $2.8 million, or 22%, when compared to the same quarter in 2023. Rental revenues decreased 15% to $16.7 million, depreciation expense increased 7% to $1.0 million, and other direct costs decreased 12% to $1.5 million, which resulted in a decrease in gross profit on rental revenues of 17% to $14.2 million. Rental related services revenues decreased 24% to $3.9 million, primarily attributable to lower delivery and return delivery activities. Sales revenues increased $0.1 million to $1.8 million, primarily from higher used equipment sales. Gross margin on sales was 36% compared to 38% in 2023, resulting in a 1% increase in gross profit on sales revenues to $0.6 million. Selling and administrative expenses decreased $1.1 million to $7.1 million, when compared to the prior year. TRS-RENTELCO For the fourth quarter of 2024, the Company's TRS-RenTelco division reported Adjusted EBITDA of $19.1 million, a decrease of 8%, when compared to the same quarter in 2023. Rental revenues decreased 9% to $25.4 million, depreciation expense decreased 12%, and other direct costs increased 2%, resulting in a 10% decrease in gross profit on rental revenues to $10.2 million. The rental revenue decrease was primarily due to continued weakness in end markets, resulting in lower average rental equipment on rent compared to the prior year. Sales revenues increased 26% to $7.3 million and gross profit on sales revenues increased 32% to $4.2 million. Selling and administrative expenses decreased 11%, to $6.6 million, when compared to the prior year. FINANCIAL OUTLOOK: For the full-year 2025, the Company expects: 2025 Outlook 2024 Actual • Total revenue: $920 to $970 million $911 million • Adjusted EBITDA1, 2: $345 to $360 million $352 million • Gross rental equipment capital expenditures: $120 to $130 million $191 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, transaction costs and non-operating transactions. 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: 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 and 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 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 January 30, 2025, McGrath RentCorp will host a conference call at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) on February 19, 2025 to discuss the fourth quarter 2024 results. To participate in the teleconference, dial 1-800-445-7795 (in the U.S.), or 1-785-424-1699 (outside the U.S.), or to listen only, access the simultaneous webcast at the investor relations section of the Company's website at A replay will be available for 7 days following the call by dialing 1-800-723-7372 (in the U.S.), or 1-402-220-2666 (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 MCGRATH RENTCORP CONDENSED CONSOLIDATED STATEMENTS OF INCOME (AUDITED) Three Months Ended December 31, Twelve Months Ended December 31, (in thousands, except per share amounts) 2024 2023 2024 2023 Revenues Rental $ 124,220 $ 123,563 $ 489,929 $ 474,336 Rental related services 36,858 36,679 148,498 138,160 Rental operations 161,078 160,242 638,427 612,496 Sales 80,298 58,589 262,290 207,165 Other 2,370 2,757 10,225 12,181 Total revenues 243,746 221,588 910,942 831,842 Costs and Expenses Direct costs of rental operations: Depreciation of rental equipment 21,755 22,413 88,267 88,912 Rental related services 25,204 25,003 103,419 96,628 Other 24,931 24,754 109,116 114,942 Total direct costs of rental operations 71,890 72,170 300,802 300,482 Costs of sales 57,099 39,296 174,725 137,727 Total costs of revenues 128,989 111,466 475,527 438,209 Gross profit 114,757 110,122 435,415 393,633 Expenses: Selling and administrative expenses 51,669 54,506 200,432 207,539 Other income, net — (59 ) (9,281 ) (3,618 ) Income from operations 63,088 55,675 244,264 189,712 Interest expense 8,858 12,126 47,241 40,560 Foreign currency exchange loss (gain) 270 144 215 (310 ) Gain on merger termination from WillScot Mobile Mini — — (180,000 ) — WillScot Mobile Mini transaction costs 2,002 — 63,159 — Income from continuing operations before provision for income taxes 51,958 43,693 313,649 149,462 Provision for income taxes from continuing operations 13,009 11,676 81,922 37,610 Income from continuing operations 38,949 32,017 231,727 111,852 Discontinued operations: Income from discontinued operations before provision for income taxes — — — 1,709 Provision for income taxes from discontinued operations — — — 453 Gain on sale of discontinued operations, net of tax — — — 61,513 Income from discontinued operations — — — 62,769 Net income $ 38,949 $ 32,017 $ 231,727 $ 174,621 Earnings per share from continuing operations: Basic $ 1.59 $ 1.31 $ 9.44 $ 4.57 Diluted $ 1.58 $ 1.30 $ 9.43 $ 4.56 Earnings per share from discontinued operations: Basic $ — $ — $ — $ 2.57 Diluted $ — $ — $ — $ 2.56 Earnings per share: Basic $ 1.59 $ 1.31 $ 9.44 $ 7.14 Diluted $ 1.58 $ 1.30 $ 9.43 $ 7.12 Shares used in per share calculation: Basic 24,551 24,492 24,541 24,469 Diluted 24,587 24,535 24,570 24,529 Cash dividends declared per share $ 0.475 $ 0.465 $ 1.90 $ 1.86 MCGRATH RENTCORP CONDENSED CONSOLIDATED BALANCE SHEETS (AUDITED) December 31, (in thousands) 2024 2023 Assets Cash $ 807 $ 877 Accounts receivable, net of allowance for credit losses of $2,866 at December 31, 2024 and $2,801 at December 31, 2023 219,342 227,368 Rental equipment, at cost: Relocatable modular buildings 1,414,367 1,291,093 Portable storage containers 240,846 236,123 Electronic test equipment 343,982 377,587 1,999,195 1,904,803 Less: accumulated depreciation (611,536 ) (575,480 ) Rental equipment, net 1,387,659 1,329,323 Property, plant and equipment, net 197,439 169,114 Inventories 14,304 15,425 Prepaid expenses and other assets 80,477 87,364 Intangible assets, net 54,332 64,588 Goodwill 323,224 323,224 Total assets $ 2,277,584 $ 2,217,283 Liabilities and Shareholders' Equity Liabilities: Notes payable $ 590,208 $ 762,975 Accounts payable 60,082 58,760 Accrued liabilities 113,961 108,763 Deferred income 109,836 111,428 Deferred income taxes, net 280,129 241,555 Total liabilities 1,154,216 1,283,481 Shareholders' equity: Common stock, no par value - Authorized 40,000 shares Issued and outstanding - 24,551 shares as of December 31, 2024 and 24,496 shares as of December 31, 2023 116,253 111,122 Retained earnings 1,007,115 822,796 Accumulated other comprehensive loss — (116 ) Total shareholders' equity 1,123,368 933,802 Total liabilities and shareholders' equity $ 2,277,584 $ 2,217,283 MCGRATH RENTCORP CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (AUDITED) Twelve Months Ended December 31, (in thousands) 2024 2023 Cash Flows from Operating Activities: Net income $ 231,727 $ 174,621 Adjustments to reconcile net income to net cash provided byoperating activities: Depreciation and amortization 107,455 109,375 Deferred income taxes (benefits) 38,574 (16,952 ) Provision for credit losses 1,890 2,633 Share-based compensation 9,502 8,275 Gain on sale of property, plant and equipment (9,281 ) (3,618 ) Gain on sale of discontinued operations — (61,513 ) Gain on sale of used rental equipment (35,085 ) (31,642 ) Foreign currency exchange loss (gain) 215 (310 ) Amortization of debt issuance costs 66 8 Change in: Accounts receivable 6,136 (37,776 ) Inventories 1,121 (779 ) Prepaid expenses and other assets 6,887 (28,547 ) Accounts payable 11,836 (49,761 ) Accrued liabilities 4,924 17,235 Deferred income (1,592 ) 14,094 Net cash provided by operating activities 374,375 95,343 Cash Flows from Investing Activities: Proceeds from sale of discontinued operations — 268,012 Purchases of rental equipment (191,231 ) (229,679 ) Purchases of property, plant and equipment (40,228 ) (43,989 ) Cash paid for acquisition of businesses — (458,315 ) Cash paid for acquisition of business assets — (3,767 ) Proceeds from sales of used rental equipment 68,453 66,168 Proceeds from sales of property, plant and equipment 12,251 9,702 Net cash used in investing activities (150,755 ) (391,868 ) Cash Flows from Financing Activities: Net (payments) borrowings under bank lines of credit (172,560 ) 274,225 Borrowings under term note agreement — 75,000 Taxes paid related to net share settlement of stock awards (4,371 ) (7,233 ) Payment of dividends (46,759 ) (45,556 ) Net cash (used in) provided by financing activities (223,690 ) 296,436 Effect of foreign currency exchange rate changes on cash — 9 Net decrease in cash (70 ) (80 ) Cash balance, beginning of period 877 957 Cash balance, end of period $ 807 $ 877 Supplemental Disclosure of Cash Flow Information: Gain on merger termination, net of transaction costs, presented under net cash provided by operating activities $ 116,841 $ — Interest paid, during the period $ 48,324 $ 38,603 Net income taxes paid, during the period $ 36,524 $ 91,565 Dividends accrued during the period, not yet paid $ 12,482 $ 12,010 Rental equipment acquisitions, not yet paid $ 5,393 $ 16,653 MCGRATH RENTCORP BUSINESS SEGMENT DATA (unaudited) Three months ended December 31, 2024 (dollar amounts in thousands) MobileModular PortableStorage TRS-RenTelco Enviroplex Consolidated Revenues Rental 82,108 16,713 25,399 — 124,220 Rental related services 32,140 3,933 785 — 36,858 Rental operations 114,248 20,646 26,184 — 161,078 Sales 55,983 1,806 7,270 15,239 80,298 Other 1,598 211 561 — 2,370 Total revenues 171,829 22,663 34,015 15,239 243,746 Costs and Expenses Direct costs of rental operations: Depreciation 10,405 1,011 10,339 — 21,755 Rental related services 20,572 4,056 576 — 25,204 Other 18,534 1,493 4,904 — 24,931 Total direct costs of rental operations 49,511 6,560 15,819 — 71,890 Costs of sales 41,705 1,161 3,080 11,153 57,099 Total costs of revenues 91,216 7,721 18,899 11,153 128,989 Gross Profit (Loss) Rental 53,169 14,209 10,156 — 77,534 Rental related services 11,568 (123 ) 209 — 11,654 Rental operations 64,737 14,086 10,365 — 89,188 Sales 14,278 645 4,190 4,086 23,199 Other 1,598 211 561 — 2,370 Total gross profit 80,613 14,942 15,116 4,086 114,757 Selling and administrative expenses 35,789 7,133 6,550 2,197 51,669 Income from operations $ 44,824 $ 7,809 $ 8,566 $ 1,889 $ 63,088 Interest expense 8,858 Foreign currency exchange loss 270 Willscot Mobile Mini transaction costs 2,002 Provision for income taxes 13,009 Income from continuing operations $ 38,949 Other Information Adjusted EBITDA 1 $ 60,994 $ 9,922 $ 19,099 $ 1,987 $ 92,002 Average rental equipment 2 $ 1,270,068 $ 231,332 $ 349,018 Average monthly total yield 3 2.15 % 2.41 % 2.43 % Average utilization 4 76.0 % 61.2 % 59.1 % Average monthly rental rate 5 2.84 % 3.94 % 4.11 % 1. Adjusted EBITDA is defined as net income before interest expense, provision for income taxes, depreciation, amortization, non-cash impairment costs, share-based compensation, other income, net and non-operating transactions. 2. Average rental equipment represents the cost of rental equipment, excluding new equipment inventory and accessory equipment. 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 December 31, 2023 (dollar amounts in thousands) MobileModular PortableStorage TRS-RenTelco Enviroplex Consolidated Revenues Rental $ 75,931 $ 19,760 $ 27,872 $ — $ 123,563 Rental related services 30,713 5,150 816 — 36,679 Rental operations 106,644 24,910 28,688 — 160,242 Sales 42,329 1,696 5,751 8,813 58,589 Other 1,686 338 733 — 2,875 Total revenues 150,659 26,944 35,172 8,813 221,706 Costs and Expenses Direct costs of rental operations: Depreciation 9,725 944 11,744 — 22,413 Rental related services 19,689 4,651 663 — 25,003 Other 18,256 1,699 4,799 — 24,754 Total direct costs of rental operations 47,670 7,294 17,206 — 72,170 Costs of sales 28,718 1,059 2,577 6,942 39,296 Total costs of revenues 76,388 8,353 19,783 6,942 111,466 Gross Profit Rental 47,950 17,117 11,329 — 76,396 Rental related services 11,024 499 153 — 11,676 Rental operations 58,974 17,616 11,482 — 88,072 Sales 13,611 637 3,174 1,871 19,293 Other 1,686 338 733 — 2,868 Total gross profit 74,271 18,591 15,389 1,871 110,122 Selling and administrative expenses 37,213 8,255 7,386 1,652 54,506 Other income, net (38 ) (7 ) (14 ) — (59 ) Income from operations $ 37,096 $ 10,343 $ 8,017 $ 219 55,675 Interest expense 12,126 Foreign currency exchange gain (144 ) Provision for income taxes 11,676 Income from continuing operations $ 32,017 Other Information Adjusted EBITDA 1 $ 54,106 $ 12,765 $ 20,690 $ 308 $ 87,869 Average rental equipment 2 $ 1,155,413 $ 218,976 $ 379,214 Average monthly total yield 3 2.19 % 3.01 % 2.43 % Average utilization 4 79.7 % 74.8 % 58.9 % Average monthly rental rate 5 2.75 % 4.02 % 4.16 % 1. Adjusted EBITDA is defined as net income before interest expense, provision for income taxes, depreciation, amortization, non-cash impairment costs, share-based compensation, other income, net and non-operating transactions. 2. Average rental equipment represents the cost of rental equipment, excluding new equipment inventory and accessory equipment. 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) Twelve months ended December 31, 2024 (dollar amounts in thousands) MobileModular PortableStorage TRS-RenTelco Enviroplex Consolidated Revenues Rental 318,149 69,983 101,797 — 489,929 Rental related services 127,589 17,702 3,207 — 148,498 Rental operations 445,738 87,685 105,004 — 638,427 Sales 183,234 5,695 27,531 45,830 262,290 Other 6,394 1,117 2,714 — 10,225 Total revenues 635,366 94,497 135,249 45,830 910,942 Costs and Expenses Direct costs of rental operations: Depreciation 40,399 3,982 43,886 — 88,267 Rental related services 83,547 17,267 2,605 — 103,419 Other 83,023 5,816 20,277 — 109,116 Total direct costs of rental operations 206,969 27,065 66,768 — 300,802 Costs of sales 124,886 3,551 12,426 33,862 174,725 Total costs of revenues 331,855 30,616 79,194 33,862 475,527 Gross Profit Rental 194,727 60,185 37,634 — 292,546 Rental related services 44,042 435 602 — 45,079 Rental operations 238,769 60,620 38,236 — 337,625 Sales 58,348 2,144 15,105 11,968 87,565 Other 6,394 1,117 2,714 — 10,225 Total gross profit 303,511 63,881 56,055 11,968 435,415 Selling and administrative expenses 136,670 29,197 27,000 7,565 200,432 Other income, net (6,220 ) (1,319 ) (1,742 ) — (9,281 ) Income from operations $ 173,061 $ 36,003 $ 30,797 $ 4,403 $ 244,264 Interest expense 47,241 Foreign currency exchange loss 215 Gain on merger termination from WillScot Mobile Mini (180,000 ) Willscot Mobile Mini transaction costs 63,159 Provision for income taxes 81,922 Income from continuing operations $ 231,727 Other Information Adjusted EBITDA 1 $ 229,160 $ 43,255 $ 74,525 $ 4,785 $ 351,725 Average rental equipment 2 $ 1,221,900 $ 227,600 $ 362,558 Average monthly total yield 3 2.17 % 2.56 % 2.34 % Average utilization 4 77.5 % 64.9 % 57.3 % Average monthly rental rate 5 2.80 % 3.95 % 4.08 % 1. Adjusted EBITDA is defined as net income before interest expense, provision for income taxes, depreciation, amortization, non-cash impairment costs, share-based compensation, other income, net and non-operating transactions. 2. Average rental equipment represents the cost of rental equipment, excluding new equipment inventory and accessory equipment. 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) Twelve months ended December 31, 2023 (dollar amounts in thousands) MobileModular Portable Storage TRS-RenTelco Enviroplex Consolidated Revenues Rental $ 285,553 $ 74,536 $ 114,247 $ — $ 474,336 Rental related services 114,511 20,510 3,139 — 138,160 Rental operations 400,064 95,046 117,386 — 612,496 Sales 155,267 4,587 27,119 20,192 207,165 Other 6,905 1,504 3,772 — 12,181 Total revenues 562,236 101,137 148,277 20,192 831,842 Costs and Expenses Direct costs of rental operations: Depreciation 36,921 3,514 48,477 — 88,912 Rental related services 75,390 18,568 2,670 — 96,628 Other 86,983 7,317 20,642 — 114,942 Total direct costs of rental operations 199,294 29,399 71,789 — 300,482 Costs of sales 105,021 2,858 13,884 15,964 137,727 Total costs of revenues 304,315 32,257 85,673 15,964 438,209 Gross Profit Rental 161,649 63,705 45,128 — 270,482 Rental related services 39,121 1,942 469 — 41,532 Rental operations 200,770 65,647 45,597 — 312,014 Sales 50,246 1,729 13,235 4,228 69,438 Other 6,905 1,504 3,772 — 12,181 Total gross profit 257,921 68,880 62,604 4,228 393,633 Selling and administrative expenses 138,574 31,537 30,962 6,466 207,539 Other income, net (2,329 ) (457 ) (832 ) — (3,618 ) Income (loss) from operations $ 121,676 $ 37,800 $ 32,474 $ (2,238 ) $ 189,712 Interest expense 40,560 Foreign currency exchange gain (310 ) Provision for income taxes 37,610 Income from continuing operations $ 111,852 Other Information Adjusted EBITDA 1 $ 189,661 $ 46,690 $ 83,903 $ (1,898 ) $ 318,356 Average rental equipment 2 $ 1,093,086 $ 206,095 $ 388,679 Average monthly total yield 3 2.18 % 3.01 % 2.43 % Average utilization 4 79.7 % 77.3 % 58.9 % Average monthly rental rate 5 2.73 % 3.90 % 4.16 % 1. Adjusted EBITDA is defined as net income before interest expense, provision for income taxes, depreciation, amortization, non-cash impairment costs, share-based compensation, other income, net and non-operating transactions. Adjusted EBITDA for the year ended December 31, 2023, excludes the gain on sale of discontinued operations from the divestiture of Adler Tanks. 2. Average rental equipment represents the cost of rental equipment, excluding new equipment inventory and accessory equipment. 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. Reconciliation of Adjusted EBITDA to the most directly comparable GAAP measures To supplement the Company's financial data presented on a basis consistent with accounting principles generally accepted in the United States of America ("GAAP"), the Company presents "Adjusted EBITDA", which is defined by the Company as net income before interest expense, provision for income taxes, depreciation, amortization, non-cash impairment costs, share-based compensation, transaction costs, gains on property sales and non-operating transactions. The gain on merger termination from WillScot Mobile Mini was considered a non-operating transaction and is excluded from Adjusted EBITDA. The Company presents Adjusted EBITDA as a financial measure as management believes it provides useful information to investors regarding the Company's liquidity and financial condition and because management, as well as the Company's lenders, use this measure in evaluating the performance of the Company. Management uses Adjusted EBITDA as a supplement to GAAP measures to further evaluate period-to-period operating performance, compliance with financial covenants in the Company's revolving lines of credit and senior notes and the Company's ability to meet future capital expenditure and working capital requirements. Management believes the exclusion of non-cash charges and non-recurring transactions, including share-based compensation, transaction costs, gains on property sales and non-operating transactions, is useful in measuring the Company's cash available for operations and performance of the Company. Because management finds Adjusted EBITDA useful, the Company believes its investors will also find Adjusted EBITDA useful in evaluating the Company's performance. Adjusted EBITDA should not be considered in isolation or as a substitute for net income, cash flows, or other consolidated income or cash flow data prepared in accordance with GAAP or as a measure of the Company's profitability or liquidity. Adjusted EBITDA is not in accordance with or an alternative for GAAP and may be different from non−GAAP measures used by other companies. Unlike EBITDA, which may be used by other companies or investors, Adjusted EBITDA does not include share-based compensation charges, transaction costs, gains on property sales and non-operating transactions. The Company believes that Adjusted EBITDA is of limited use in that it does not reflect all of the amounts associated with the Company's results of operations as determined in accordance with GAAP and does not accurately reflect real cash flow. In addition, other companies may not use Adjusted EBITDA or may use other non-GAAP measures, limiting the usefulness of Adjusted EBITDA for purposes of comparison. The Company's presentation of Adjusted EBITDA should not be construed as an inference that the Company will not incur expenses that are the same as or similar to the adjustments in this presentation. Therefore, Adjusted EBITDA should only be used to evaluate the Company's results of operations in conjunction with the corresponding GAAP measures. The Company compensates for the limitations of Adjusted EBITDA by relying upon GAAP results to gain a complete picture of the Company's performance. Because Adjusted EBITDA is a non-GAAP financial measure, as defined by the SEC, the Company includes in the tables below reconciliations of Adjusted EBITDA to the most directly comparable financial measures calculated and presented in accordance with GAAP. Reconciliation of Income from Continuing Operations to Adjusted EBITDA (dollar amounts in thousands) Three Months EndedDecember 31, Twelve Months EndedDecember 31, 2024 2023 2024 2023 Income from continuing operations $ 38,949 $ 32,016 $ 231,727 $ 111,852 Provision for income taxes from continuing operations 13,009 11,676 81,922 37,610 Interest expense 8,858 12,126 47,241 40,560 Depreciation and amortization 26,631 27,533 107,455 107,918 EBITDA 87,447 83,351 468,345 297,940 Share-based compensation 2,553 3,002 9,502 8,157 Transaction costs 3 2,002 1,575 63,159 15,877 Other income, net 4 — (59 ) (9,281 ) (3,618 ) Gain on merger termination from WillScot Mobile Mini 5 — — (180,000 ) — Adjusted EBITDA 1 $ 92,002 $ 87,869 $ 351,725 $ 318,356 Adjusted EBITDA margin 2 38 % 40 % 38 % 39 % Reconciliation of Adjusted EBITDA to Net Cash Provided by Operating Activities (dollar amounts in thousands) Three Months EndedDecember 31, Twelve Months EndedDecember 31, 2024 2023 2024 2023 Adjusted EBITDA 1 $ 92,002 $ 87,869 $ 351,725 $ 322,038 Interest paid (7,986 ) (10,785 ) (48,324 ) (38,603 ) Income taxes paid, net of refunds received (40,188 ) (82,018 ) (36,362 ) (91,565 ) Gain on sale of used rental equipment (9,900 ) (8,678 ) (35,085 ) (31,642 ) Foreign currency exchange loss 270 (144 ) 215 (310 ) Amortization of debt issuance costs 60 2 66 8 Change in certain assets and liabilities: Accounts receivable, net 5,187 (9,204 ) 8,026 (35,143 ) Prepaid expenses and other assets (13,101 ) (21,936 ) 6,887 (29,326 ) Accounts payable and other liabilities 24,686 15,148 128,981 (14,208 ) Deferred income (14,089 ) 6,186 (1,592 ) 14,094 Net cash provided by (used in) operating activities $ 36,779 $ (23,560 ) $ 374,375 $ 95,343 1. Adjusted EBITDA is defined as net income before interest expense, provision for income taxes, depreciation, amortization, non-cash impairment costs, share-based compensation, other income, net and non-operating transactions. Adjusted EBITDA for the twelve months ended December 31, 2023, excludes the gain on sale of discontinued operations from the divestiture of Adler Tanks. 2. Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by total revenues for the period. 3. Transaction costs include acquisition and divestiture related legal and professional fees and other costs specific to these transactions. 4. Other income, net consists of net gains on property, plant and equipment sales that are infrequent in nature and excluded from Adjusted EBITDA. 5. The gain on merger termination from WillScot Mobile Mini was considered a non-operating transaction and is excluded from Adjusted EBITDA. View source version on Contacts Keith E. Pratt EVP & Chief Financial Officer925-606-9200 Sign in to access your portfolio
Yahoo
10-02-2025
- Business
- Yahoo
McGrath Celebrates 40th Listing Anniversary
LIVERMORE, Calif., February 10, 2025--(BUSINESS WIRE)--McGrath RentCorp ("McGrath" or the "Company") (Nasdaq: MGRC), a leading business-to-business rental company in North America, today announced the completion of the major milestone of its 40th anniversary listed on the Nasdaq. In recognition of this milestone, McGrath will be honored by being displayed on the Nasdaq Tower in Times Square on February 11. Joe Hanna, President and CEO, remarked, "Our company crossed the 2024 finish line, marking the completion of an impressive milestone—the 40th anniversary of McGrath's listing on the Nasdaq. I would like to recognize and thank all our leaders and team members, customers, shareholders, and stakeholders throughout the years for your focus, commitment, and confidence in our company. McGrath remains well positioned to continue to grow for many years ahead and to achieve many more milestones." 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. Headquartered in Livermore, California. Additional information about McGrath and its businesses is available at and View source version on Contacts Keith E. Pratt EVP & Chief Financial Officer925-606-9200
