McGrath Announces Results for Fourth Quarter 2024 and Announces 34th Annual Dividend Increase
McGrath RentCorp (MGRC) reported strong Q4 2024 results with total revenues reaching $243.7 million, up 10% year-over-year. Net income from continuing operations was $38.9 million, or $1.58 per diluted share, compared to $32.0 million in Q4 2023.
For full-year 2024, revenues increased 10% to $910.9 million, with adjusted EBITDA growing by $33.4 million to $351.7 million. The company announced its 34th consecutive annual dividend increase, raising the quarterly dividend by 2% to $0.485 per share.
By division, Mobile Modular showed strong performance with 8% rental revenue growth, while Portable Storage and TRS-RenTelco faced challenges with rental revenue declines of 15% and 9% respectively. The company's board declared a quarterly dividend payable on April 30, 2025, representing a 1.6% yield based on the February 18, 2025 closing price.
McGrath RentCorp (MGRC) ha riportato risultati forti per il Q4 2024, con ricavi totali che hanno raggiunto 243,7 milioni di dollari, in aumento del 10% rispetto all'anno precedente. Il reddito netto delle operazioni continuative è stato di 38,9 milioni di dollari, ovvero 1,58 dollari per azione diluita, rispetto ai 32,0 milioni di dollari nel Q4 2023.
Per l'intero anno 2024, i ricavi sono aumentati del 10% a 910,9 milioni di dollari, con un EBITDA rettificato in crescita di 33,4 milioni di dollari, raggiungendo i 351,7 milioni di dollari. L'azienda ha annunciato il suo 34° aumento consecutivo del dividendo annuale, aumentando il dividendo trimestrale del 2% a 0,485 dollari per azione.
Per divisione, Mobile Modular ha mostrato una forte performance con una crescita dei ricavi da affitto dell'8%, mentre Portable Storage e TRS-RenTelco hanno affrontato sfide con cali dei ricavi da affitto del 15% e del 9% rispettivamente. Il consiglio di amministrazione dell'azienda ha dichiarato un dividendo trimestrale pagabile il 30 aprile 2025, rappresentando un rendimento dell'1,6% basato sul prezzo di chiusura del 18 febbraio 2025.
McGrath RentCorp (MGRC) reportó resultados sólidos para el Q4 2024, con ingresos totales alcanzando 243,7 millones de dólares, un aumento del 10% interanual. El ingreso neto de las operaciones continuas fue de 38,9 millones de dólares, o 1,58 dólares por acción diluida, en comparación con 32,0 millones de dólares en el Q4 2023.
Para el año completo 2024, los ingresos aumentaron un 10% a 910,9 millones de dólares, con un EBITDA ajustado en crecimiento de 33,4 millones de dólares, alcanzando los 351,7 millones de dólares. La empresa anunció su 34° aumento consecutivo del dividendo anual, elevando el dividendo trimestral en un 2% a 0,485 dólares por acción.
Por división, Mobile Modular mostró un desempeño sólido con un crecimiento del 8% en los ingresos por alquiler, mientras que Portable Storage y TRS-RenTelco enfrentaron desafíos con caídas en los ingresos por alquiler del 15% y el 9% respectivamente. La junta directiva de la empresa declaró un dividendo trimestral que se pagará el 30 de abril de 2025, representando un rendimiento del 1,6% basado en el precio de cierre del 18 de febrero de 2025.
맥그래스 렌트코프 (MGRC)는 2024년 4분기 강력한 실적을 보고했으며, 총 수익은 2억 4천 3백 70만 달러에 달해 전년 대비 10% 증가했습니다. 계속 운영에서의 순이익은 3천 8백 90만 달러였으며, 희석 주당 1.58달러에 해당하며, 이는 2023년 4분기의 3천 2백만 달러와 비교됩니다.
2024년 전체 연도에 대해, 수익은 10% 증가하여 9억 1천 9백 10만 달러에 달했고, 조정된 EBITDA는 3천 3백 40만 달러 증가하여 3억 5천 1백 70만 달러에 도달했습니다. 회사는 34년 연속 배당금 인상을 발표하며, 분기 배당금을 2% 인상하여 주당 0.485달러로 설정했습니다.
부문별로 보면, 모바일 모듈러는 8%의 임대 수익 성장률을 보여주었고, 포터블 스토리지와 TRS-RenTelco는 각각 15%와 9%의 임대 수익 감소로 어려움을 겪었습니다. 회사 이사회는 2025년 4월 30일에 지급될 분기 배당금을 선언했으며, 이는 2025년 2월 18일 종가를 기준으로 1.6%의 수익률을 나타냅니다.
McGrath RentCorp (MGRC) a rapporté de solides résultats pour le Q4 2024, avec des revenus totaux atteignant 243,7 millions de dollars, en hausse de 10 % par rapport à l'année précédente. Le revenu net des opérations continues s'élevait à 38,9 millions de dollars, soit 1,58 dollar par action diluée, contre 32,0 millions de dollars au Q4 2023.
Pour l'année complète 2024, les revenus ont augmenté de 10 % pour atteindre 910,9 millions de dollars, avec un EBITDA ajusté en hausse de 33,4 millions de dollars, atteignant 351,7 millions de dollars. L'entreprise a annoncé sa 34ème augmentation annuelle consécutive du dividende, en augmentant le dividende trimestriel de 2 % à 0,485 dollar par action.
Par division, Mobile Modular a affiché de solides performances avec une croissance des revenus locatifs de 8 %, tandis que Portable Storage et TRS-RenTelco ont rencontré des défis avec des baisses de revenus locatifs de 15 % et 9 % respectivement. Le conseil d'administration de l'entreprise a déclaré un dividende trimestriel payable le 30 avril 2025, représentant un rendement de 1,6 % basé sur le prix de clôture du 18 février 2025.
McGrath RentCorp (MGRC) berichtete über starke Ergebnisse im Q4 2024, mit Gesamterlösen von 243,7 Millionen Dollar, was einem Anstieg von 10% im Vergleich zum Vorjahr entspricht. Der Nettogewinn aus fortgeführten Betrieben betrug 38,9 Millionen Dollar, oder 1,58 Dollar pro verwässerter Aktie, verglichen mit 32,0 Millionen Dollar im Q4 2023.
Für das Gesamtjahr 2024 stiegen die Erlöse um 10% auf 910,9 Millionen Dollar, wobei das bereinigte EBITDA um 33,4 Millionen Dollar auf 351,7 Millionen Dollar wuchs. Das Unternehmen kündigte die 34. jährliche Dividendenerhöhung in Folge an, indem die vierteljährliche Dividende um 2% auf 0,485 Dollar pro Aktie angehoben wurde.
Nach Division zeigte Mobile Modular eine starke Leistung mit einem Anstieg der Mieterlöse um 8%, während Portable Storage und TRS-RenTelco mit Rückgängen der Mieterlöse von 15% bzw. 9% konfrontiert waren. Der Vorstand des Unternehmens erklärte eine vierteljährliche Dividende, die am 30. April 2025 zahlbar ist, was eine Rendite von 1,6% basierend auf dem Schlusskurs vom 18. Februar 2025 darstellt.
- Total revenues increased 10% YoY to $243.7 million in Q4 2024
- Net income from continuing operations grew to $38.9 million, up from $32.0 million YoY
- Mobile Modular division showed 8% rental revenue growth
- 34th consecutive annual dividend increase announced
- Full-year adjusted EBITDA increased by 10% to $351.7 million
- Portable Storage rental revenues declined 15% due to weak demand
- TRS-RenTelco rental revenues decreased 9% due to market weakness
- Mobile Modular sales gross margin decreased to 26% from 32% YoY
Insights
McGrath RentCorp's Q4 2024 performance reveals a tale of diverging business segments, with total revenues reaching
Segment Performance Analysis:
- Mobile Modular emerged as the standout performer, with
8% rental revenue growth and a robust13% increase in Adjusted EBITDA to$61.0 million . The division's success in pricing optimization and value-added services demonstrates effective execution in a strong market. - Portable Storage's
15% rental revenue decline reflects broader commercial construction slowdown, suggesting potential cyclical headwinds that may persist into 2025. - TRS-RenTelco's
9% rental revenue decrease indicates continued end-market weakness, though proactive fleet size management shows disciplined capital allocation.
Financial Health Indicators:
- The normalized net income from continuing operations (excluding merger-related items) of
$145.7 million ($5.93 per share) provides a clearer picture of underlying business performance. - Adjusted EBITDA margin remained healthy at
37.7% ($92.0 million /$243.7 million ), indicating strong operational efficiency despite headwinds in some segments. - The
2% dividend increase to$0.485 per share, while modest, marks 34 years of consecutive increases, reflecting sustainable free cash flow generation and disciplined capital management.
Strategic Positioning:
- Mobile Modular Plus and Site Related Services growth initiatives demonstrate successful market expansion and service diversification strategies.
- The company's proactive fleet management and pricing optimization across divisions indicate strong operational execution despite varying market conditions.
- The focus on maintaining pricing discipline while managing fleet size suggests a balanced approach to preserving profitability while adapting to market demands.
Total revenues from continuing operations for the full year ended December 31, 2024 increased to
The Company also announced that the board of directors declared a cash dividend of
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
$0.47 51.6% yield on the February 18, 2025 close price of$122.22
Joe Hanna, President and CEO of McGrath, made the following comments:
“We were pleased with our fourth quarter results. The
Our modular business had a good quarter, with
Portable Storage weak demand conditions continued, resulting in
TRS-RenTelco experienced continued demand challenges, resulting in
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
-
Rental revenues increased
8% to$82.1 million 7% to$10.4 million 2% to$18.5 million 11% to$53.2 million -
Rental related services revenues increased
5% to$32.1 million 5% to$11.6 million -
Sales revenues increased
32% to$56.0 million 26% in 2024 compared to32% in 2023, resulting in a5% increase in gross profit on sales revenues to$14.3 million -
Selling and administrative expenses decreased
$1.4 million $35.8 million
PORTABLE STORAGE
For the fourth quarter of 2024, the Company’s Portable Storage division reported Adjusted EBITDA of
-
Rental revenues decreased
15% to$16.7 million 7% to$1.0 million 12% to$1.5 million 17% to$14.2 million -
Rental related services revenues decreased
24% to$3.9 million -
Sales revenues increased
$0.1 million $1.8 million 36% compared to38% in 2023, resulting in a1% increase in gross profit on sales revenues to$0.6 million -
Selling and administrative expenses decreased
$1.1 million $7.1 million
TRS-RENTELCO
For the fourth quarter of 2024, the Company’s TRS-RenTelco division reported Adjusted EBITDA of
-
Rental revenues decreased
9% to$25.4 million 12% , and other direct costs increased2% , resulting in a10% decrease in gross profit on rental revenues to$10.2 million -
Sales revenues increased
26% to$7.3 million 32% to$4.2 million -
Selling and administrative expenses decreased
11% , to$6.6 million
FINANCIAL OUTLOOK:
For the full-year 2025, the Company expects:
|
|
2025 Outlook |
2024 Actual |
• |
Total revenue: |
|
|
• |
Adjusted EBITDA1, 2: |
|
|
• |
Gross rental equipment capital expenditures: |
|
|
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. |
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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. |
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ABOUT MCGRATH:
McGrath RentCorp (Nasdaq: MGRC) is a leading business-to-business rental company in
McGrath is headquartered in
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 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
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 |
|
|
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 by
|
|
|
|
|
|
|
||
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) |
|
Mobile
|
|
Portable
|
|
TRS-
|
|
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) |
|
Mobile
|
|
Portable
|
|
TRS-
|
|
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) |
|
Mobile
|
|
Portable
|
|
TRS-
|
|
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) |
|
Mobile
|
|
Portable Storage |
|
TRS-
|
|
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
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 Ended
|
|
Twelve Months Ended
|
||||||||||||
|
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 Ended
|
|
Twelve Months Ended
|
||||||||||||
|
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 businesswire.com: https://www.businesswire.com/news/home/20250219751172/en/
Keith E. Pratt
EVP & Chief Financial Officer
925-606-9200
Source: McGrath RentCorp
FAQ
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