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About McGrath RentCorp
McGrath RentCorp (NASDAQ: MGRC), headquartered in Livermore, California, is a diversified business-to-business rental and leasing company that delivers flexible, scalable solutions across multiple industries. Established in 1979, the company operates through four primary business segments: Mobile Modular Management Corporation, Mobile Modular Portable Storage, TRS-RenTelco, and Enviroplex, Inc.. These segments collectively address the needs of businesses, educational institutions, and other organizations requiring temporary infrastructure, specialized equipment, and modular building solutions.
Core Business Segments
1. Mobile Modular Management Corporation
Mobile Modular specializes in providing relocatable modular buildings for rent, lease, or purchase. These modular solutions are used in a variety of applications, including office spaces, classrooms, and temporary facilities. The segment’s ability to offer customizable and rapidly deployable structures makes it a critical partner for industries requiring flexible infrastructure solutions.
2. Mobile Modular Portable Storage
This segment delivers portable storage containers and office/storage combinations for rent, lease, or purchase. These solutions are ideal for businesses seeking secure, on-site storage options or temporary office spaces. The portable storage segment complements the modular building business by catering to industries with overlapping needs for temporary infrastructure and storage.
3. TRS-RenTelco
TRS-RenTelco focuses on renting, leasing, and selling electronic test and measurement equipment. Serving both general-purpose and communications-specific needs, this segment supports industries such as telecommunications, aerospace, and manufacturing, where access to advanced testing equipment is essential but often cost-prohibitive for outright purchase.
4. Enviroplex, Inc.
Enviroplex is a California-based manufacturer of Division of the State Architect (DSA)-approved modular buildings, primarily serving public and private schools. By focusing on educational institutions, this segment addresses the growing demand for cost-effective, scalable classroom solutions in a state with stringent building regulations.
Revenue Model and Operations
McGrath RentCorp generates the majority of its revenue through the rental and leasing of its equipment on operating leases. These agreements provide stable, recurring income streams and are supplemented by the sale of equipment in the normal course of business. The company’s diversified portfolio allows it to mitigate risks associated with reliance on a single market segment, while its B2B model emphasizes long-term customer relationships and tailored solutions.
Competitive Positioning
Operating in multiple industries, McGrath RentCorp faces competition from specialized providers in each of its segments. Its competitive edge lies in its ability to offer a broad range of solutions under one umbrella, supported by decades of expertise and a strong reputation for reliability. The company’s modular building and portable storage solutions cater to industries with dynamic infrastructure needs, while TRS-RenTelco’s extensive inventory of electronic test equipment positions it as a key player in its niche market. Enviroplex further differentiates the company by addressing the unique requirements of California’s educational sector.
Market Significance
McGrath RentCorp’s diversified business model positions it as a critical partner for organizations needing temporary or specialized solutions. Its ability to serve a wide range of industries, from education to telecommunications, underscores its market relevance. By focusing on rental and leasing models, the company aligns with broader trends favoring asset-light strategies and operational flexibility.
Conclusion
McGrath RentCorp exemplifies a diversified approach to the rental and leasing industry, combining expertise in modular buildings, portable storage, electronic test equipment, and modular classrooms. Its focus on delivering tailored, scalable solutions across multiple sectors ensures its continued relevance in a dynamic market landscape.
McGrath RentCorp (NASDAQ: MGRC) reported Q2 2021 revenues of $146.4 million, up 6% year-over-year. Net income was $20.6 million, or $0.84 per diluted share, down from $22.5 million in Q2 2020. Rental revenues grew 10% to $94.6 million. The company raised its full-year revenue guidance from $570-610 million to $610-640 million. Rental revenue growth was mainly driven by acquisitions. However, new equipment sales face challenges due to supply chain issues and labor shortages, affecting 2021 expectations.
McGrath RentCorp (NASDAQ: MGRC) plans to release its financial results for Q2 2021 on August 3, 2021, after market close. The company will host a conference call at 5:00 PM ET to discuss the results, with a Q&A session available. Investors can join the call by dialing 1-844-707-0666 or via webcast at investors.mgrc.com. McGrath RentCorp, established in 1979, provides diversified rental services, including modular buildings and electronic test equipment across North America.
The Board of Directors of McGrath RentCorp (NASDAQ:MGRC) announced a quarterly cash dividend of $0.435 per common share, payable on July 30, 2021 to shareholders of record as of July 16, 2021. This marks the 30th consecutive year that MGRC has increased its dividend payouts, underscoring its commitment to returning value to shareholders. McGrath RentCorp, founded in 1979, operates in diversified rental services including modular buildings and electronic test equipment.
McGrath RentCorp has successfully completed its acquisition of Design Space Modular Buildings PNW, LP for $260 million. This acquisition enhances McGrath's Mobile Modular division, expanding its coverage with 15 branches across 8 states in the Western U.S. The transaction aims to generate long-term revenue growth and operational synergies while creating opportunities for cost savings through fleet optimization. Furthermore, it is expected to positively impact earnings per share (EPS) and free cash flow. The integration process is set to begin as both companies align their customer-centric approaches.
McGrath RentCorp has signed a definitive agreement to acquire Design Space Modular Buildings PNW, LP for $260 million cash, a move expected to enhance earnings per share and free cash flow upon closing. Design Space, a prominent modular building provider in the Western U.S., generated $32 million in EBITDA on $81 million in revenue for the trailing 12 months as of December 31, 2020. The acquisition will extend McGrath's geographic reach, optimize operations, and boost revenue growth through combined resources. The transaction is slated to close in Q2 2021.
McGrath RentCorp (NASDAQ: MGRC) reported Q1 2021 revenues of $121.2 million, down 6% year-over-year, with a net income of $17.4 million ($0.71 per diluted share). Rental revenues decreased 4% to $86.1 million. Adjusted EBITDA fell by $5.7 million to $49.1 million, affected by a $2.1 million legal expense. Notably, the dividend increased 4% to $0.435 per share. Despite challenges, including pandemic impacts, management is optimistic, citing improved bookings and a recently completed acquisition of Kitchens To Go, aimed at enhancing product offerings.
McGrath RentCorp (Nasdaq:MGRC) has announced its participation in the Oppenheimer Virtual 16th Annual Industrial Growth Conference on Tuesday, May 4th, at 3:00 p.m. ET. During this event, the company will provide a presentation, which will be accessible via a live webcast and presentation slides on the Investor Relations section of its website. A replay of the presentation will be available for 90 days post-event. McGrath RentCorp is a diversified rental company operating in several sectors, including modular buildings and electronic test equipment.
McGrath RentCorp has acquired Kitchens To Go, enhancing its Mobile Modular division's offerings in flexible foodservice facilities. This strategic acquisition aims to provide temporary and permanent solutions across various sectors, including education and healthcare. The deal, funded through borrowings from a revolving credit agreement, is not expected to significantly affect the financial outlook for 2021. The CEO expressed optimism about leveraging synergies and the deep industry knowledge of Kitchens To Go's team.
McGrath RentCorp (NASDAQ: MGRC) plans to release its financial results for the first quarter ending March 31, 2021, on April 28, 2021, after market close. A conference call will be held at 5:00 p.m. ET to discuss the results, including a Q&A session. Interested parties can join by phone or via a live webcast. Founded in 1979, McGrath RentCorp provides a range of rental solutions, including modular buildings and electronic test equipment, serving markets across the U.S. and select regions in North America.
McGrath RentCorp (Nasdaq: MGRC) will participate in the Sidoti & Company Spring 2021 Virtual Conference on March 25th, presenting at 1:00 p.m. ET. A webcast and presentation slides will be accessible in the Investor Relations section of their website, with a replay available for 90 days post-event. Founded in 1979, McGrath RentCorp is a diverse rental company providing modular buildings, electronic test equipment, and storage solutions across the U.S. For more details, visit www.mgrc.com.
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