McGrath Announces Results for Third Quarter 2024
McGrath RentCorp (MGRC) reported Q3 2024 total revenues of $266.8 million, up 10% year-over-year. Net income reached $149.3 million, or $6.08 per diluted share, including a $180 million merger termination payment from WillScot Mobile Mini. Excluding this payment and related costs, adjusted net income was $45.9 million ($1.87 per share). Mobile Modular division showed strong performance with 9% rental revenue growth, while Portable Storage and TRS-RenTelco faced challenges with 11% and 10% rental revenue declines respectively. The company updated its 2024 guidance, projecting total revenue of $910-920 million and Adjusted EBITDA of $345-351 million.
McGrath RentCorp (MGRC) ha riportato un fatturato totale per il terzo trimestre del 2024 di 266,8 milioni di dollari, in crescita del 10% rispetto all'anno precedente. L'utile netto ha raggiunto 149,3 milioni di dollari, ovvero 6,08 dollari per azione diluita, inclusi un pagamento di 180 milioni di dollari per la risoluzione della fusione con WillScot Mobile Mini. Escludendo questo pagamento e i costi correlati, l'utile netto rettificato è stato di 45,9 milioni di dollari (1,87 dollari per azione). La divisione Mobile Modular ha mostrato una forte performance con una crescita del 9% dei ricavi da locazione, mentre Portable Storage e TRS-RenTelco hanno affrontato delle sfide con cali dei ricavi da locazione rispettivamente dell'11% e del 10%. L'azienda ha aggiornato le sue previsioni per il 2024, prevedendo un fatturato totale di 910-920 milioni di dollari e un EBITDA rettificato di 345-351 milioni di dollari.
McGrath RentCorp (MGRC) reportó ingresos totales del tercer trimestre de 2024 de 266,8 millones de dólares, un aumento del 10% interanual. El ingreso neto alcanzó 149,3 millones de dólares, o 6,08 dólares por acción diluida, incluyendo un pago de 180 millones de dólares por la terminación de la fusión con WillScot Mobile Mini. Excluyendo este pago y los costos relacionados, el ingreso neto ajustado fue de 45,9 millones de dólares (1,87 dólares por acción). La división Mobile Modular mostró un sólido desempeño con un crecimiento del 9% en los ingresos por alquiler, mientras que Portable Storage y TRS-RenTelco enfrentaron desafíos con disminuciones del 11% y 10%, respectivamente, en los ingresos por alquiler. La compañía actualizó su guía para 2024, proyectando ingresos totales de 910-920 millones de dólares y un EBITDA ajustado de 345-351 millones de dólares.
McGrath RentCorp (MGRC)는 2024년 3분기 총 수익이 2억 6680만 달러에 달했으며, 전년 대비 10% 증가했다고 보고했습니다. 순이익은 1억 4930만 달러, 즉 희석 기준 주당 6.08달러에 도달했으며, WillScot Mobile Mini와의 합병 종료에 따른 1억 8000만 달러의 지급이 포함되어 있습니다. 이 지급 및 관련 비용을 제외하면 조정된 순이익은 4590만 달러(주당 1.87달러)였습니다. Mobile Modular 부문은 임대 수익이 9% 증가하며 강력한 성과를 보였지만, Portable Storage와 TRS-RenTelco는 각각 11%와 10%의 임대 수익 감소로 어려움을 겪었습니다. 회사는 2024년 가이드를 업데이트하여 총 수익을 9억 1000만에서 9억 2000만 달러, 조정 EBITDA를 3억 4500만에서 3억 5100만 달러로 예상하고 있습니다.
McGrath RentCorp (MGRC) a annoncé des revenus totaux pour le troisième trimestre 2024 de 266,8 millions de dollars, soit une augmentation de 10% par rapport à l’année précédente. Le bénéfice net a atteint 149,3 millions de dollars, ou 6,08 dollars par action diluée, y compris un paiement de 180 millions de dollars pour la résiliation de la fusion avec WillScot Mobile Mini. En excluant ce paiement et les coûts connexes, le bénéfice net ajusté s'est élevé à 45,9 millions de dollars (1,87 dollar par action). La division Mobile Modular a affiché une solide performance avec une croissance de 9% des revenus locatifs, tandis que Portable Storage et TRS-RenTelco ont rencontré des défis avec des baisses de revenus locatifs respectivement de 11% et 10%. L'entreprise a mis à jour ses prévisions pour 2024, projetant des revenus totaux de 910 à 920 millions de dollars et un EBITDA ajusté de 345 à 351 millions de dollars.
McGrath RentCorp (MGRC) meldete im dritten Quartal 2024 Gesamteinnahmen von 266,8 Millionen Dollar, was einem Anstieg von 10% im Vergleich zum Vorjahr entspricht. Der Nettogewinn erreichte 149,3 Millionen Dollar, oder 6,08 Dollar pro verwässerter Aktie, einschließlich einer 180-Millionen-Dollar Entschädigungszahlung für die Auflösung der Fusion mit WillScot Mobile Mini. Ohne diese Zahlung und die damit verbundenen Kosten betrug der bereinigte Nettogewinn 45,9 Millionen Dollar (1,87 Dollar pro Aktie). Die Mobile Modular Sparte zeigte eine starke Leistung mit einem Wachstum der Mieteinnahmen von 9%, während Portable Storage und TRS-RenTelco mit Rückgängen bei den Mieteinnahmen von 11% bzw. 10% konfrontiert waren. Das Unternehmen aktualisierte seine Prognosen für 2024 und rechnet mit einem Gesamtumsatz von 910-920 Millionen Dollar und einem bereinigten EBITDA von 345-351 Millionen Dollar.
- Total revenues increased 10% to $266.8 million
- Mobile Modular division rental revenues grew 9% to $81.5 million
- Adjusted EBITDA increased 13% to $104.0 million
- Received $180 million merger termination payment from WillScot Mobile Mini
- Portable Storage rental revenues declined 11% due to weak demand
- TRS-RenTelco rental revenues decreased 10% due to market weakness
- TRS-RenTelco sales revenues decreased 13%
Insights
The Q3 2024 results show mixed performance across McGrath's divisions. Total revenues increased
The company's adjusted EBITDA grew
The divergence in segment performance reflects broader market conditions. Mobile Modular's growth aligns with strong demand in commercial and education sectors, while Portable Storage's decline signals weakness in construction activity. The reduction in TRS-RenTelco revenues indicates continued softness in technology equipment rental markets.
Management's strategic focus on pricing optimization and fleet utilization demonstrates adaptability to market conditions. The expansion of Mobile Modular Plus and Site Related Services shows promise for diversification. The
THIRD QUARTER 2024 YEAR-OVER-YEAR COMPANY HIGHLIGHTS (FROM CONTINUING OPERATIONS):
-
Rental revenues increased
1% to$124.2 million -
Total revenues increased
10% to$266.8 million -
Payment on merger termination from WillScot Mobile Mini provided for
$180.0 million $39.4 million $103.5 million $4.21 -
Adjusted EBITDA1 increased
13% to$104.0 million -
Dividend rate of
$0.47 51.8% yield on the October 23, 2024 close price of$106.23
Joe Hanna, President and CEO of McGrath, made the following comments:
“We were very pleased with our third quarter results. The
Our modular business was the highlight for the quarter, with
Portable storage demand conditions were weak, resulting in
TRS-RenTelco experienced continued demand challenges, resulting in
I appreciate the strong commitment from the McGrath employee team who maintained their focus on disciplined execution throughout the quarter. Looking ahead, I am excited about our multi-year opportunity to increase our customer base, geographic coverage and value-added service offerings in our Modular and Portable Storage businesses."
DIVISION HIGHLIGHTS:
All comparisons presented below are for the quarter ended September 30, 2024 to the quarter ended September 30, 2023 unless otherwise indicated.
MOBILE MODULAR
For the third quarter of 2024, the Company’s Mobile Modular division reported Adjusted EBITDA of
-
Rental revenues increased
9% to$81.5 million 11% to$10.1 million 3% to$20.5 million 14% to$50.8 million -
Rental related services revenues increased
23% to$42.4 million 32% to$15.0 million -
Sales revenues increased
14% to$66.0 million 34% in 2024, compared to32% in 2023, resulting in a20% increase in gross profit on sales revenues to$22.4 million -
Selling and administrative expenses increased
$2.2 million 7% , to$34.0 million
PORTABLE STORAGE
For the third quarter of 2024, the Company’s Portable Storage division reported Adjusted EBITDA of
-
Rental revenues decreased
11% to$17.0 million 10% to$1.0 million 38% to$1.3 million 9% to$14.7 million -
Rental related services revenues were
$4.4 million $0.1 million $0.3 million -
Sales revenues increased
$0.3 million $1.4 million 36% , compared to32% in 2023, resulting in a$0.1 million $0.5 million -
Selling and administrative expenses decreased
$1.2 million 15% , to$6.8 million
TRS-RENTELCO
For the third quarter of 2024, the Company’s TRS-RenTelco division reported Adjusted EBITDA of
-
Rental revenues decreased
10% to$25.7 million 10% , and other direct costs increased5% , resulting in an18% decrease in gross profit on rental revenues to$9.4 million -
Sales revenues decreased
13% to$7.6 million 52% , compared to35% in 2023, resulting in a27% increase in gross profit on sales revenues to$3.9 million -
Selling and administrative expenses decreased
5% , to$6.6 million
FINANCIAL OUTLOOK:
Based upon the Company's year-to-date results and current outlook for the remainder of the year, for the full-year 2024 the Company expects:
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(Continuing Operations) |
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• |
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Total revenue: |
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• |
|
Adjusted EBITDA1, 2: |
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|
• |
|
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, other income, net 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. Adjusted EBITDA from continuing operations for the quarter ended September 30, 2023, excludes the income from discontinued operations from the divestiture of Adler Tanks. The gain on merger termination from WillScot Mobile Mini was considered a non-operating transaction and is excluded from Adjusted EBITDA. |
|
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
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 September 26, 2024, McGrath RentCorp will host a conference call at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) on October 24, 2024 to discuss the third quarter 2024 results. To participate in the teleconference, dial 1-800-245-3047 (in the
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, (i) Mr. Hanna’s statements about the Company’s multi-year opportunity to increase its customer base, geographic coverage and value-added service offerings in its Modular and Portable Storage businesses, and (ii) statements regarding the full year 2024 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; any adverse impact of the termination of the merger with WillScot Mobile Mini; competition within the modular business; the activity levels in the semiconductor and general purpose and communications test equipment markets at TRS-RenTelco; the activity levels in commercial construction projects and impact on Portable Storage segment; 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.
MCGRATH RENTCORP |
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
||||||||||||||||
(UNAUDITED) |
||||||||||||||||
|
Three Months Ended
|
Nine Months Ended
|
||||||||||||||
(in thousands, except per share amounts) |
2024 |
2023 |
2024 |
2023 |
||||||||||||
Revenues |
|
|
|
|
|
|
|
|
||||||||
Rental |
$ |
124,203 |
|
$ |
122,686 |
|
$ |
365,708 |
|
$ |
350,773 |
|
||||
Rental related services |
|
47,701 |
|
|
40,492 |
|
|
111,640 |
|
|
101,481 |
|
||||
Rental operations |
|
171,904 |
|
|
163,178 |
|
|
477,349 |
|
|
452,254 |
|
||||
Sales |
|
92,508 |
|
|
77,115 |
|
|
181,992 |
|
|
148,576 |
|
||||
Other |
|
2,346 |
|
|
3,213 |
|
|
7,855 |
|
|
9,424 |
|
||||
Total revenues |
|
266,758 |
|
|
243,506 |
|
|
667,196 |
|
|
610,254 |
|
||||
Costs and Expenses |
|
|
|
|
|
|
|
|
||||||||
Direct costs of rental operations: |
|
|
|
|
|
|
|
|
||||||||
Depreciation of rental equipment |
|
21,981 |
|
|
22,069 |
|
|
66,512 |
|
|
66,499 |
|
||||
Rental related services |
|
32,439 |
|
|
28,532 |
|
|
78,215 |
|
|
71,625 |
|
||||
Other |
|
27,252 |
|
|
28,493 |
|
|
84,182 |
|
|
90,188 |
|
||||
Total direct costs of rental operations |
|
81,672 |
|
|
79,094 |
|
|
228,909 |
|
|
228,312 |
|
||||
Costs of sales |
|
61,107 |
|
|
52,878 |
|
|
117,625 |
|
|
98,431 |
|
||||
Total costs of revenues |
|
142,779 |
|
|
131,972 |
|
|
346,534 |
|
|
326,743 |
|
||||
Gross profit |
|
123,979 |
|
|
111,534 |
|
|
320,661 |
|
|
283,511 |
|
||||
Expenses: |
|
|
|
|
|
|
|
|
||||||||
Selling and administrative expenses |
|
49,297 |
|
|
48,508 |
|
|
148,764 |
|
|
153,032 |
|
||||
Other income, net |
|
— |
|
|
(3,559 |
) |
|
(9,281 |
) |
|
(3,559 |
) |
||||
Income from operations |
|
74,682 |
|
|
66,585 |
|
|
181,178 |
|
|
134,038 |
|
||||
Interest expense |
|
12,641 |
|
|
11,025 |
|
|
38,383 |
|
|
28,434 |
|
||||
Foreign currency exchange (gain) loss |
|
(216 |
) |
|
42 |
|
|
(53 |
) |
|
(166 |
) |
||||
Gain on merger termination from WillScot Mobile Mini |
|
(180,000 |
) |
|
— |
|
|
(180,000 |
) |
|
— |
|
||||
WillScot Mobile Mini transaction costs |
|
39,436 |
|
|
— |
|
|
61,157 |
|
|
— |
|
||||
Income from continuing operations before provision for income taxes |
|
202,821 |
|
|
55,518 |
|
|
261,691 |
|
|
105,770 |
|
||||
Provision for income taxes from continuing operations |
|
53,504 |
|
|
15,152 |
|
|
68,913 |
|
|
25,934 |
|
||||
Income from continuing operations |
|
149,317 |
|
|
40,366 |
|
|
192,778 |
|
|
79,836 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
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 |
$ |
149,317 |
|
$ |
40,366 |
|
$ |
192,778 |
|
$ |
142,605 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share from continuing operations: |
|
|
|
|
|
|
|
|
||||||||
Basic |
$ |
6.08 |
|
$ |
1.65 |
|
$ |
7.86 |
|
$ |
3.26 |
|
||||
Diluted |
$ |
6.08 |
|
$ |
1.65 |
|
$ |
7.85 |
|
$ |
3.26 |
|
||||
Earnings per share from discontinued operations: |
|
|
|
|
|
|
|
|
||||||||
Basic |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
2.57 |
|
||||
Diluted |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
2.56 |
|
||||
Earnings per share: |
|
|
|
|
|
|
|
|
||||||||
Basic |
$ |
6.08 |
|
$ |
1.65 |
|
$ |
7.86 |
|
$ |
5.83 |
|
||||
Diluted |
$ |
6.08 |
|
$ |
1.65 |
|
$ |
7.85 |
|
$ |
5.81 |
|
||||
Shares used in per share calculation: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
24,551 |
|
|
24,487 |
|
|
24,538 |
|
|
24,461 |
|
||||
Diluted |
|
24,567 |
|
|
24,525 |
|
|
24,564 |
|
|
24,527 |
|
||||
Cash dividends declared per share |
$ |
0.475 |
|
$ |
0.465 |
|
$ |
1.425 |
|
$ |
1.395 |
|
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|
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|
|
|
|
|
|
|
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MCGRATH RENTCORP |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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(UNAUDITED) |
||||||||
|
September 30, |
December 31, |
||||||
(in thousands) |
2024 |
2023 |
||||||
Assets |
|
|
|
|
||||
Cash |
$ |
4,056 |
|
$ |
877 |
|
||
Accounts receivable, net of allowance for credit losses of |
|
224,529 |
|
|
227,368 |
|
||
Rental equipment, at cost: |
|
|
|
|
||||
Relocatable modular buildings |
|
1,398,422 |
|
|
1,291,093 |
|
||
Portable storage containers |
|
241,620 |
|
|
236,123 |
|
||
Electronic test equipment |
|
356,979 |
|
|
377,587 |
|
||
|
|
1,997,021 |
|
|
1,904,803 |
|
||
Less: accumulated depreciation |
|
(605,339 |
) |
|
(575,480 |
) |
||
Rental equipment, net |
|
1,391,682 |
|
|
1,329,323 |
|
||
Property, plant and equipment, net |
|
195,593 |
|
|
169,114 |
|
||
Inventories |
|
22,285 |
|
|
15,425 |
|
||
Prepaid expenses and other assets |
|
67,376 |
|
|
87,364 |
|
||
Intangible assets, net |
|
56,891 |
|
|
64,588 |
|
||
Goodwill |
|
323,224 |
|
|
323,224 |
|
||
Total assets |
$ |
2,285,636 |
|
$ |
2,217,283 |
|
||
Liabilities and Shareholders' Equity |
|
|
|
|
||||
Liabilities: |
|
|
|
|
||||
Notes payable |
$ |
608,562 |
|
$ |
762,975 |
|
||
Accounts payable |
|
76,240 |
|
|
58,760 |
|
||
Accrued liabilities |
|
109,367 |
|
|
108,763 |
|
||
Deferred income |
|
123,925 |
|
|
111,428 |
|
||
Deferred income taxes, net |
|
273,482 |
|
|
241,555 |
|
||
Total liabilities |
|
1,191,576 |
|
|
1,283,481 |
|
||
Shareholders’ equity: |
|
|
|
|
||||
Common stock, no par value - Authorized 40,000 shares |
|
|
|
|
||||
Issued and outstanding - 24,551 shares as of September 30, 2024 and 24,496 shares as of December 31, 2023 |
|
113,989 |
|
|
111,122 |
|
||
Retained earnings |
|
980,244 |
|
|
822,796 |
|
||
Accumulated other comprehensive loss |
|
(173 |
) |
|
(116 |
) |
||
Total shareholders’ equity |
|
1,094,060 |
|
|
933,802 |
|
||
Total liabilities and shareholders’ equity |
$ |
2,285,636 |
|
$ |
2,217,283 |
|
||
|
|
|
|
|
||||
MCGRATH RENTCORP |
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(UNAUDITED) |
||||||||
|
Nine Months Ended September 30, |
|||||||
(in thousands) |
2024 |
2023 |
||||||
Cash Flows from Operating Activities: |
|
|
|
|
||||
Net income |
$ |
192,778 |
|
$ |
142,605 |
|
||
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
80,824 |
|
|
81,842 |
|
||
Deferred income taxes |
|
31,927 |
|
|
(30,018 |
) |
||
Provision for credit losses |
|
1,437 |
|
|
1,794 |
|
||
Share-based compensation |
|
6,949 |
|
|
5,273 |
|
||
Gain on sale of property, plant and equipment |
|
(9,281 |
) |
|
(3,559 |
) |
||
Gain on sale of discontinued operations |
|
— |
|
|
(61,513 |
) |
||
Gain on sale of used rental equipment |
|
(25,185 |
) |
|
(22,964 |
) |
||
Foreign currency exchange gain |
|
(53 |
) |
|
(166 |
) |
||
Amortization of debt issuance costs |
|
6 |
|
|
6 |
|
||
Change in: |
|
|
|
|
||||
Accounts receivable |
|
1,402 |
|
|
(27,733 |
) |
||
Inventories |
|
(6,860 |
) |
|
(1,988 |
) |
||
Prepaid expenses and other assets |
|
19,988 |
|
|
(5,402 |
) |
||
Accounts payable |
|
30,562 |
|
|
22,513 |
|
||
Accrued liabilities |
|
605 |
|
|
10,305 |
|
||
Deferred income |
|
12,497 |
|
|
7,908 |
|
||
Net cash provided by operating activities |
|
337,596 |
|
|
118,903 |
|
||
Cash Flows from Investing Activities: |
|
|
|
|
||||
Proceeds from sale of discontinued operations |
|
— |
|
|
268,012 |
|
||
Purchases of rental equipment |
|
(167,269 |
) |
|
(171,322 |
) |
||
Purchases of property, plant and equipment |
|
(36,070 |
) |
|
(16,448 |
) |
||
Cash paid for acquisition of businesses |
|
— |
|
|
(458,315 |
) |
||
Cash paid for acquisition of business assets |
|
— |
|
|
(3,474 |
) |
||
Proceeds from sales of used rental equipment |
|
50,270 |
|
|
49,405 |
|
||
Proceeds from sales of property, plant and equipment |
|
12,251 |
|
|
595 |
|
||
Net cash used in investing activities |
|
(140,818 |
) |
|
(331,547 |
) |
||
Cash Flows from Financing Activities: |
|
|
|
|
||||
Net (payments) borrowings under bank lines of credit |
|
(154,420 |
) |
|
178,892 |
|
||
Borrowings under term note agreement |
|
— |
|
|
75,000 |
|
||
Taxes paid related to net share settlement of stock awards |
|
(4,082 |
) |
|
(6,100 |
) |
||
Payment of dividends |
|
(35,097 |
) |
|
(34,168 |
) |
||
Net cash (used in) provided by financing activities |
|
(193,599 |
) |
|
213,624 |
|
||
Effect of foreign currency exchange rate changes on cash |
|
— |
|
|
9 |
|
||
Net increase in cash |
|
3,179 |
|
|
989 |
|
||
Cash balance, beginning of period |
|
877 |
|
|
957 |
|
||
Cash balance, end of period |
$ |
4,056 |
|
$ |
1,946 |
|
||
Supplemental Disclosure of Cash Flow Information: |
|
|
|
|
||||
Gain on merger termination, net of transaction costs, presented under net cash provided by operating activities |
$ |
118,843 |
|
$ |
— |
|
||
Interest paid, during the period |
$ |
40,338 |
|
$ |
27,818 |
|
||
Net income taxes (refunded) paid, during the period |
$ |
(3,826 |
) |
$ |
9,547 |
|
||
Dividends accrued during the period, not yet paid |
$ |
12,241 |
|
$ |
12,014 |
|
||
Rental equipment acquisitions, not yet paid |
$ |
3,333 |
|
$ |
5,765 |
|
||
|
|
|
|
|
||||
MCGRATH RENTCORP |
||||||||||||||||||||
BUSINESS SEGMENT DATA (unaudited) |
||||||||||||||||||||
Three months ended September 30, 2024 |
|
|
|
|
||||||||||||||||
(dollar amounts in thousands) |
Mobile Modular |
|
Portable Storage |
|
TRS-RenTelco |
|
Enviroplex |
|
Consolidated |
|||||||||||
Revenues |
|
|
|
|
|
|
|
|
||||||||||||
Rental |
$ |
81,508 |
|
$ |
17,040 |
|
$ |
25,655 |
|
$ |
— |
|
$ |
124,203 |
|
|||||
Rental related services |
|
42,396 |
|
|
4,405 |
|
|
900 |
|
|
— |
|
|
47,701 |
|
|||||
Rental operations |
|
123,904 |
|
|
21,445 |
|
|
26,555 |
|
|
— |
|
|
171,904 |
|
|||||
Sales |
|
65,994 |
|
|
1,411 |
|
|
7,604 |
|
|
17,499 |
|
|
92,508 |
|
|||||
Other |
|
1,509 |
|
|
195 |
|
|
642 |
|
|
— |
|
|
2,346 |
|
|||||
Total revenues |
|
191,407 |
|
|
23,051 |
|
|
34,801 |
|
|
17,499 |
|
|
266,758 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Costs and Expenses |
|
|
|
|
|
|
|
|
|
|||||||||||
Direct costs of rental operations: |
|
|
|
|
|
|
|
|
|
|||||||||||
Depreciation |
|
10,124 |
|
|
1,006 |
|
|
10,851 |
|
|
— |
|
|
21,981 |
|
|||||
Rental related services |
|
27,366 |
|
|
4,280 |
|
|
793 |
|
|
— |
|
|
32,439 |
|
|||||
Other |
|
20,549 |
|
|
1,327 |
|
|
5,376 |
|
|
— |
|
|
27,252 |
|
|||||
Total direct costs of rental operations |
|
58,039 |
|
|
6,613 |
|
|
17,020 |
|
|
— |
|
|
81,672 |
|
|||||
Costs of sales |
|
43,595 |
|
|
906 |
|
|
3,688 |
|
|
12,918 |
|
|
61,107 |
|
|||||
Total costs of revenues |
|
101,634 |
|
|
7,519 |
|
|
20,708 |
|
|
12,918 |
|
|
142,779 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Gross Profit |
|
|
|
|
|
|
|
|
|
|||||||||||
Rental |
|
50,835 |
|
|
14,707 |
|
|
9,428 |
|
|
— |
|
|
74,970 |
|
|||||
Rental related services |
|
15,030 |
|
|
125 |
|
|
107 |
|
|
— |
|
|
15,262 |
|
|||||
Rental operations |
|
65,865 |
|
|
14,832 |
|
|
9,535 |
|
|
— |
|
|
90,232 |
|
|||||
Sales |
|
22,399 |
|
|
505 |
|
|
3,916 |
|
|
4,581 |
|
|
31,401 |
|
|||||
Other |
|
1,509 |
|
|
195 |
|
|
642 |
|
|
— |
|
|
2,346 |
|
|||||
Total gross profit |
|
89,773 |
|
|
15,532 |
|
|
14,093 |
|
|
4,581 |
|
|
123,979 |
|
|||||
Selling and administrative expenses 6 |
|
34,028 |
|
|
6,790 |
|
|
6,627 |
|
|
1,851 |
|
|
49,296 |
|
|||||
Other income |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|||||
Income from operations |
$ |
55,745 |
|
$ |
8,742 |
|
$ |
7,466 |
|
$ |
2,730 |
|
|
74,683 |
|
|||||
Interest expense |
|
|
|
|
|
|
|
|
(12,641 |
) |
||||||||||
Foreign currency exchange gain |
|
|
|
|
|
|
|
|
216 |
|
||||||||||
Gain on merger termination from WillScot Mobile Mini |
|
|
|
|
|
|
|
|
180,000 |
|
||||||||||
WillScot Mobile Mini transaction costs |
|
|
|
|
|
|
|
|
(39,436 |
) |
||||||||||
Provision for income taxes |
|
|
|
|
|
|
|
|
(53,504 |
) |
||||||||||
Net income |
|
|
|
|
|
|
|
$ |
149,317 |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Other Information |
|
|
|
|
|
|
|
|
|
|||||||||||
Adjusted EBITDA 1 |
$ |
71,420 |
|
$ |
10,796 |
|
$ |
18,945 |
|
$ |
2,822 |
|
$ |
103,983 |
|
|||||
Average rental equipment 2 |
$ |
1,240,950 |
|
$ |
229,231 |
|
$ |
362,431 |
|
|
|
|
||||||||
Average monthly total yield 3 |
|
2.19 |
% |
|
2.48 |
% |
|
2.36 |
% |
|
|
|
||||||||
Average utilization 4 |
|
77.1 |
% |
|
62.8 |
% |
|
57.3 |
% |
|
|
|
||||||||
Average monthly rental rate 5 |
|
2.84 |
% |
|
3.94 |
% |
|
4.12 |
% |
|
|
|
||||||||
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 other income, net. |
|
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. |
|
6. |
During the period ended September 30, 2024, the Company determined that transaction costs incurred by the Company attributed to the terminated Merger Agreement were significant. Due to this determination, the Company has separately reported these transaction costs in the Company's Corporate segment and excluded such costs from Selling and administrative expenses. |
|
MCGRATH RENTCORP |
||||||||||||||||||||
BUSINESS SEGMENT DATA (unaudited) |
||||||||||||||||||||
Three months ended September 30, 2023 |
|
|
|
|
||||||||||||||||
(dollar amounts in thousands) |
Mobile Modular |
|
Portable Storage |
|
TRS-RenTelco |
|
Enviroplex |
|
Consolidated |
|||||||||||
Revenues |
|
|
|
|
|
|
|
|
||||||||||||
Rental |
$ |
74,796 |
|
$ |
19,232 |
|
$ |
28,658 |
|
$ |
— |
|
$ |
122,686 |
|
|||||
Rental related services |
|
34,429 |
|
|
5,287 |
|
|
776 |
|
|
— |
|
|
40,492 |
|
|||||
Rental operations |
|
109,225 |
|
|
24,519 |
|
|
29,434 |
|
|
— |
|
|
163,178 |
|
|||||
Sales |
|
57,723 |
|
|
1,144 |
|
|
8,733 |
|
|
9,515 |
|
|
77,115 |
|
|||||
Other |
|
1,908 |
|
|
363 |
|
|
942 |
|
|
— |
|
|
3,213 |
|
|||||
Total revenues |
|
168,856 |
|
|
26,026 |
|
|
39,109 |
|
|
9,515 |
|
|
243,506 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Costs and Expenses |
|
|
|
|
|
|
|
|
|
|||||||||||
Direct costs of rental operations: |
|
|
|
|
|
|
|
|
|
|||||||||||
Depreciation |
|
9,123 |
|
|
914 |
|
|
12,032 |
|
|
— |
|
|
22,069 |
|
|||||
Rental related services |
|
23,033 |
|
|
4,894 |
|
|
605 |
|
|
— |
|
|
28,532 |
|
|||||
Other |
|
21,222 |
|
|
2,131 |
|
|
5,140 |
|
|
— |
|
|
28,493 |
|
|||||
Total direct costs of rental operations |
|
53,378 |
|
|
7,939 |
|
|
17,777 |
|
|
— |
|
|
79,094 |
|
|||||
Costs of sales |
|
39,039 |
|
|
782 |
|
|
5,651 |
|
|
7,406 |
|
|
52,878 |
|
|||||
Total costs of revenues |
|
92,417 |
|
|
8,721 |
|
|
23,428 |
|
|
7,406 |
|
|
131,972 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Gross Profit |
|
|
|
|
|
|
|
|
|
|||||||||||
Rental |
|
44,451 |
|
|
16,187 |
|
|
11,486 |
|
|
— |
|
|
72,124 |
|
|||||
Rental related services |
|
11,395 |
|
|
394 |
|
|
171 |
|
|
— |
|
|
11,960 |
|
|||||
Rental operations |
|
55,846 |
|
|
16,581 |
|
|
11,657 |
|
|
— |
|
|
84,084 |
|
|||||
Sales |
|
18,684 |
|
|
362 |
|
|
3,082 |
|
|
2,109 |
|
|
24,237 |
|
|||||
Other |
|
1,908 |
|
|
363 |
|
|
942 |
|
|
— |
|
|
3,213 |
|
|||||
Total gross profit |
|
76,438 |
|
|
17,306 |
|
|
15,681 |
|
|
2,109 |
|
|
111,534 |
|
|||||
Selling and administrative expenses |
|
31,813 |
|
|
8,019 |
|
|
6,999 |
|
|
1,677 |
|
|
48,508 |
|
|||||
Other income |
|
(2,290 |
) |
|
(450 |
) |
|
(819 |
) |
|
— |
|
|
(3,559 |
) |
|||||
Income from operations |
$ |
46,915 |
|
$ |
9,737 |
|
$ |
9,501 |
|
$ |
432 |
|
|
66,585 |
|
|||||
Interest expense |
|
|
|
|
|
|
|
|
(11,025 |
) |
||||||||||
Foreign currency exchange loss |
|
|
|
|
|
|
|
|
(42 |
) |
||||||||||
Provision for income taxes |
|
|
|
|
|
|
|
|
(15,152 |
) |
||||||||||
Net income |
|
|
|
|
|
|
|
$ |
40,366 |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Other Information |
|
|
|
|
|
|
|
|
|
|||||||||||
Adjusted EBITDA 1 |
$ |
58,166 |
|
$ |
12,047 |
|
$ |
21,039 |
|
$ |
517 |
|
$ |
91,769 |
|
|||||
Average rental equipment 2 |
$ |
1,137,675 |
|
$ |
212,888 |
|
$ |
385,353 |
|
|
|
|
||||||||
Average monthly total yield 3 |
|
2.19 |
% |
|
3.01 |
% |
|
2.46 |
% |
|
|
|
||||||||
Average utilization 4 |
|
79.9 |
% |
|
76.5 |
% |
|
59.4 |
% |
|
|
|
||||||||
Average monthly rental rate 5 |
|
2.74 |
% |
|
3.94 |
% |
|
4.17 |
% |
|
|
|
||||||||
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 other income, net. |
|
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) |
||||||||||||||||||||
Nine months ended September 30, 2024 |
|
|
|
|
||||||||||||||||
(dollar amounts in thousands) |
Mobile Modular |
Portable Storage |
TRS-RenTelco |
Enviroplex |
Consolidated |
|||||||||||||||
Revenues |
|
|
|
|
|
|
|
|
||||||||||||
Rental |
$ |
236,040 |
|
$ |
53,270 |
|
$ |
76,398 |
|
$ |
— |
|
$ |
365,708 |
|
|||||
Rental related services |
|
95,450 |
|
|
13,768 |
|
|
2,422 |
|
|
— |
|
|
111,640 |
|
|||||
Rental operations |
|
331,490 |
|
|
67,039 |
|
|
78,820 |
|
|
— |
|
|
477,349 |
|
|||||
Sales |
|
127,251 |
|
|
3,889 |
|
|
20,261 |
|
|
30,591 |
|
|
181,992 |
|
|||||
Other |
|
4,795 |
|
|
907 |
|
|
2,153 |
|
|
— |
|
|
7,855 |
|
|||||
Total revenues |
|
463,536 |
|
|
71,835 |
|
|
101,234 |
|
|
30,591 |
|
|
667,196 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Costs and Expenses |
|
|
|
|
|
|
|
|
|
|||||||||||
Direct costs of rental operations: |
|
|
|
|
|
|
|
|
|
|||||||||||
Depreciation |
|
29,994 |
|
|
2,971 |
|
|
33,547 |
|
|
— |
|
|
66,512 |
|
|||||
Rental related services |
|
62,974 |
|
|
13,212 |
|
|
2,029 |
|
|
— |
|
|
78,215 |
|
|||||
Other |
|
64,487 |
|
|
4,322 |
|
|
15,373 |
|
|
— |
|
|
84,182 |
|
|||||
Total direct costs of rental operations |
|
157,455 |
|
|
20,505 |
|
|
50,949 |
|
|
— |
|
|
228,909 |
|
|||||
Costs of sales |
|
83,180 |
|
|
2,390 |
|
|
9,346 |
|
|
22,709 |
|
|
117,625 |
|
|||||
Total costs of revenues |
|
240,635 |
|
|
22,895 |
|
|
60,295 |
|
|
22,709 |
|
|
346,534 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Gross Profit |
|
|
|
|
|
|
|
|
|
|||||||||||
Rental |
|
141,559 |
|
|
45,977 |
|
|
27,478 |
|
|
— |
|
|
215,014 |
|
|||||
Rental related services |
|
32,476 |
|
|
556 |
|
|
393 |
|
|
— |
|
|
33,425 |
|
|||||
Rental operations |
|
174,035 |
|
|
46,533 |
|
|
27,871 |
|
|
— |
|
|
248,439 |
|
|||||
Sales |
|
44,071 |
|
|
1,499 |
|
|
10,915 |
|
|
7,882 |
|
|
64,367 |
|
|||||
Other |
|
4,795 |
|
|
907 |
|
|
2,153 |
|
|
— |
|
|
7,855 |
|
|||||
Total gross profit |
|
222,901 |
|
|
48,939 |
|
|
40,939 |
|
|
7,882 |
|
|
320,661 |
|
|||||
Selling and administrative expenses 6 |
|
100,882 |
|
|
22,064 |
|
|
20,450 |
|
|
5,368 |
|
|
148,764 |
|
|||||
Other income |
|
(6,220 |
) |
|
(1,319 |
) |
|
(1,742 |
) |
|
— |
|
|
(9,281 |
) |
|||||
Income from operations |
$ |
128,239 |
|
$ |
28,194 |
|
$ |
22,231 |
|
$ |
2,514 |
|
|
181,178 |
|
|||||
Interest expense |
|
|
|
|
|
|
|
|
(38,383 |
) |
||||||||||
Foreign currency exchange gain |
|
|
|
|
|
|
|
|
53 |
|
||||||||||
Gain on merger termination from WillScot Mobile Mini |
|
|
|
|
|
|
|
|
180,000 |
|
||||||||||
WillScot Mobile Mini transaction costs |
|
|
|
|
|
|
|
|
(61,157 |
) |
||||||||||
Provision for income taxes |
|
|
|
|
|
|
|
|
(68,913 |
) |
||||||||||
Net income |
|
|
|
|
|
|
|
$ |
192,778 |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Other Information |
|
|
|
|
|
|
|
|
|
|||||||||||
Adjusted EBITDA 1 |
$ |
168,165 |
|
$ |
33,333 |
|
$ |
55,426 |
|
$ |
2,799 |
|
$ |
259,723 |
|
|||||
Average rental equipment 2 |
$ |
1,206,361 |
|
$ |
226,373 |
|
$ |
367,137 |
|
|
|
|
||||||||
Average monthly total yield 3 |
|
2.17 |
% |
|
2.61 |
% |
|
2.31 |
% |
|
|
|
||||||||
Average utilization 4 |
|
78.0 |
% |
|
66.1 |
% |
|
56.8 |
% |
|
|
|
||||||||
Average monthly rental rate 5 |
|
2.79 |
% |
|
3.95 |
% |
|
4.07 |
% |
|
|
|
||||||||
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 other income, net. |
|
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. |
|
6. |
During the period ended September 30, 2024, the Company determined that transaction costs incurred by the Company attributed to the terminated Merger Agreement were significant. Due to this determination, the Company has separately reported these transaction costs in the Company's Corporate segment and excluded such costs from Selling and administrative expenses. |
|
MCGRATH RENTCORP |
||||||||||||||||||||
BUSINESS SEGMENT DATA (unaudited) |
||||||||||||||||||||
Nine months ended September 30, 2023 |
|
|
|
|
||||||||||||||||
(dollar amounts in thousands) |
Mobile Modular |
Portable Storage |
TRS-RenTelco |
Enviroplex |
Consolidated |
|||||||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|
||||||||||
Rental |
$ |
209,622 |
|
$ |
54,776 |
|
$ |
86,375 |
|
$ |
— |
|
$ |
350,773 |
|
|||||
Rental related services |
|
83,799 |
|
|
15,359 |
|
|
2,323 |
|
|
— |
|
|
101,481 |
|
|||||
Rental operations |
|
293,421 |
|
|
70,135 |
|
|
88,698 |
|
|
— |
|
|
452,254 |
|
|||||
Sales |
|
112,939 |
|
|
2,890 |
|
|
21,368 |
|
|
11,379 |
|
|
148,576 |
|
|||||
Other |
|
5,249 |
|
|
1,167 |
|
|
3,008 |
|
|
— |
|
|
9,424 |
|
|||||
Total revenues |
|
411,609 |
|
|
74,192 |
|
|
113,074 |
|
|
11,379 |
|
|
610,254 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Costs and Expenses |
|
|
|
|
|
|
|
|
|
|
||||||||||
Direct costs of rental operations: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation |
|
27,196 |
|
|
2,570 |
|
|
36,733 |
|
|
— |
|
|
66,499 |
|
|||||
Rental related services |
|
55,702 |
|
|
13,916 |
|
|
2,007 |
|
|
— |
|
|
71,625 |
|
|||||
Other |
|
68,726 |
|
|
5,619 |
|
|
15,843 |
|
|
— |
|
|
90,188 |
|
|||||
Total direct costs of rental operations |
|
151,624 |
|
|
22,105 |
|
|
54,583 |
|
|
— |
|
|
228,312 |
|
|||||
Costs of sales |
|
76,303 |
|
|
1,799 |
|
|
11,307 |
|
|
9,022 |
|
|
98,431 |
|
|||||
Total costs of revenues |
|
227,927 |
|
|
23,904 |
|
|
65,890 |
|
|
9,022 |
|
|
326,743 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross Profit |
|
|
|
|
|
|
|
|
|
|
||||||||||
Rental |
|
113,700 |
|
|
46,587 |
|
|
33,799 |
|
|
— |
|
|
194,086 |
|
|||||
Rental related services |
|
28,097 |
|
|
1,443 |
|
|
316 |
|
|
— |
|
|
29,856 |
|
|||||
Rental operations |
|
141,797 |
|
|
48,030 |
|
|
34,115 |
|
|
— |
|
|
223,942 |
|
|||||
Sales |
|
36,636 |
|
|
1,091 |
|
|
10,061 |
|
|
2,357 |
|
|
50,145 |
|
|||||
Other |
|
5,249 |
|
|
1,167 |
|
|
3,008 |
|
|
— |
|
|
9,424 |
|
|||||
Total gross profit |
|
183,682 |
|
|
50,288 |
|
|
47,184 |
|
|
2,357 |
|
|
283,511 |
|
|||||
Selling and administrative expenses |
|
101,360 |
|
|
23,282 |
|
|
23,576 |
|
|
4,814 |
|
|
153,032 |
|
|||||
Other income |
|
(2,290 |
) |
|
(450 |
) |
|
(819 |
) |
|
— |
|
|
(3,559 |
) |
|||||
Income (loss) from operations |
$ |
84,612 |
|
$ |
27,456 |
|
$ |
24,427 |
|
$ |
(2,457 |
) |
|
134,038 |
|
|||||
Interest expense |
|
|
|
|
|
|
|
|
|
(28,434 |
) |
|||||||||
Foreign currency exchange gain |
|
|
|
|
|
|
|
|
|
166 |
|
|||||||||
Provision for income taxes |
|
|
|
|
|
|
|
|
|
(25,934 |
) |
|||||||||
Net income |
|
|
|
|
|
|
|
|
$ |
79,836 |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other Information |
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDA 1 |
$ |
135,107 |
|
$ |
34,375 |
|
$ |
63,212 |
|
$ |
(2,207 |
) |
$ |
230,487 |
|
|||||
Average rental equipment 2 |
$ |
1,073,384 |
|
$ |
201,946 |
|
$ |
391,993 |
|
|
|
|
|
|||||||
Average monthly total yield 3 |
|
2.17 |
% |
|
3.01 |
% |
|
2.43 |
% |
|
|
|
|
|||||||
Average utilization 4 |
|
79.7 |
% |
|
78.4 |
% |
|
59.0 |
% |
|
|
|
|
|||||||
Average monthly rental rate 5 |
|
2.72 |
% |
|
3.84 |
% |
|
4.15 |
% |
|
|
|
|
|||||||
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 other income, net. |
|
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
|
|
Nine Months Ended
|
|
Twelve Months Ended
|
|||||||||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||||||
Income from continuing operations |
$ |
149,317 |
|
$ |
40,366 |
|
$ |
192,778 |
|
$ |
79,836 |
|
$ |
224,799 |
|
$ |
114,828 |
|
||||||
Provision for income taxes from continuing operations |
|
53,502 |
|
|
15,152 |
|
|
68,913 |
|
|
25,934 |
|
|
80,586 |
|
|
35,624 |
|
||||||
Interest expense |
|
12,642 |
|
|
11,025 |
|
|
38,383 |
|
|
28,434 |
|
|
50,509 |
|
|
32,607 |
|
||||||
Depreciation and amortization |
|
26,693 |
|
|
26,884 |
|
|
80,824 |
|
|
80,385 |
|
|
108,357 |
|
|
103,893 |
|
||||||
EBITDA |
|
242,154 |
|
|
93,427 |
|
|
380,898 |
|
|
214,589 |
|
|
464,249 |
|
|
286,952 |
|
||||||
Share-based compensation |
|
2,393 |
|
|
1,891 |
|
|
6,949 |
|
|
5,155 |
|
|
9,951 |
|
|
7,658 |
|
||||||
Transaction costs 3 |
|
39,436 |
|
|
10 |
|
|
61,157 |
|
|
14,302 |
|
|
62,732 |
|
|
18,188 |
|
||||||
Other income, net 4 |
|
— |
|
|
(3,559 |
) |
|
(9,281 |
) |
|
(3,559 |
) |
|
(9,340 |
) |
|
(3,559 |
) |
||||||
Gain on merger termination from WillScot Mobile Mini 5 |
|
(180,000 |
) |
|
— |
|
|
(180,000 |
) |
|
— |
|
|
(180,000 |
) |
|
— |
|
||||||
Adjusted EBITDA 1 |
$ |
103,983 |
|
$ |
91,769 |
|
$ |
259,723 |
|
$ |
230,487 |
|
$ |
347,592 |
|
$ |
309,239 |
|
||||||
Adjusted EBITDA margin 2 |
|
39 |
% |
|
39 |
% |
|
38 |
% |
|
38 |
% |
|
39 |
% |
|
39 |
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Reconciliation of Adjusted EBITDA to Net Cash Provided by Operating Activities |
||||||||||||||||||||||||
(dollar amounts in thousands) |
Three Months Ended
|
|
Nine Months Ended
|
|
Twelve Months Ended
|
|||||||||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||||||
Adjusted EBITDA 1 |
$ |
103,983 |
|
$ |
91,769 |
|
$ |
259,723 |
|
$ |
234,169 |
|
$ |
347,592 |
|
$ |
325,138 |
|
||||||
Interest paid |
|
(13,944 |
) |
|
(11,016 |
) |
|
(40,338 |
) |
|
(27,818 |
) |
|
(51,123 |
) |
|
(33,611 |
) |
||||||
Income taxes paid, net of refunds received |
|
(773 |
) |
|
(2,616 |
) |
|
3,826 |
|
|
(9,547 |
) |
|
(78,192 |
) |
|
(12,024 |
) |
||||||
Gain on sale of used rental equipment |
|
(9,648 |
) |
|
(8,714 |
) |
|
(25,185 |
) |
|
(22,964 |
) |
|
(33,863 |
) |
|
(34,238 |
) |
||||||
Foreign currency exchange loss |
|
(216 |
) |
|
42 |
|
|
(53 |
) |
|
(166 |
) |
|
(197 |
) |
|
(192 |
) |
||||||
Amortization of debt issuance costs |
|
2 |
|
|
2 |
|
|
6 |
|
|
6 |
|
|
8 |
|
|
9 |
|
||||||
Change in certain assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accounts receivable, net |
|
(7,150 |
) |
|
(26,223 |
) |
|
2,839 |
|
|
(25,939 |
) |
|
(6,365 |
) |
|
(26,003 |
) |
||||||
Prepaid expenses and other assets |
|
14,171 |
|
|
1,114 |
|
|
19,988 |
|
|
(7,390 |
) |
|
(1,948 |
) |
|
(6,561 |
) |
||||||
Accounts payable and other liabilities |
|
123,241 |
|
|
4,476 |
|
|
104,293 |
|
|
(29,356 |
) |
|
119,382 |
|
|
(30,691 |
) |
||||||
Deferred income |
|
(10,699 |
) |
|
(1,382 |
) |
|
12,497 |
|
|
7,908 |
|
|
18,683 |
|
|
(1,790 |
) |
||||||
Net cash provided by operating activities |
$ |
198,967 |
|
$ |
47,452 |
|
$ |
337,596 |
|
$ |
118,903 |
|
$ |
313,977 |
|
$ |
180,037 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
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 nine months ended September 30, 2023, excludes the gain on sale of discontinued operations from the divestiture of Adler Tanks. Total Adjusted EBITDA attributed to discontinued operations for the nine month period ended September 30, 2023 was |
|
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/20241023857571/en/
Keith E. Pratt
EVP & Chief Financial Officer
925-606-9200
Source: McGrath RentCorp
FAQ
What was McGrath RentCorp's (MGRC) revenue in Q3 2024?
How much was MGRC's merger termination payment from WillScot Mobile Mini?
What is McGrath RentCorp's (MGRC) revenue guidance for full-year 2024?
How did MGRC's Mobile Modular division perform in Q3 2024?
