Business
McGrath Announces Results for Third Quarter 2022
LIVERMORE, Calif.--(BUSINESS WIRE)-- McGrath RentCorp (“McGrath” or the “Company”) (Nasdaq: MGRC), a leading business-to-business rental company in North
About this update from Mcgrath Rentcorp
[{"type":"text","content":" LIVERMORE, Calif.--(BUSINESS WIRE)--\nMcGrath RentCorp (“McGrath” or the “Company”) (Nasdaq: MGRC), a leading business-to-business rental company in North America, today announced total revenues for the quarter ended September 30, 2022 of $200.5 million, an increase of 16%, compared to the third quarter of 2021. The Company reported net income of $30.6 million, or $1.25 per diluted share, for the third quarter of 2022, compared to net income of $23.3 million, or $0.95 per diluted share, for the third quarter of 2021.\n\nTHIRD QUARTER 2022 YEAR-OVER-YEAR COMPANY HIGHLIGHTS:\n\n\nRental revenues increased 15% to $118.4 million.\n\n\nTotal revenues increased 16% to $200.5 million.\n\n\nAdjusted EBITDA1 increased 13% to $74.7 million.\n\n\nDividend rate increased 5% to $0.455 per share for the third quarter of 2022. On an annualized basis, this dividend represents a 2.1% yield on the October 26, 2022 close price of $85.85 per share.\n\n\nJoe Hanna, President and CEO of McGrath, made the following comments regarding these results and future expectations:\n\n“We delivered strong third quarter results. Our 16% growth in total company revenues was a result of robust performance in both rental operations and sales revenues. Demand was healthy across each of our rental segments. Mobile Modular rental revenues grew 17%, reflecting strong organic growth from our modular operations. Rental revenue growth was also strong at TRS-RenTelco and Adler Tanks, which grew 9% and 18%, respectively.\n\nMobile Modular had an impressive quarter. We saw broad-based strength across our commercial, education and portable storage customer bases. Education rental revenues increased 9%, representing the highest growth since the first quarter of 2020 and demonstrating post-pandemic recovery in this important customer base. We addressed strong demand conditions with disciplined fleet management and achieved average fleet utilization of 80.1%, a level not seen since 2008, and ended the quarter at 81.2% utilization. This substantial utilization improvement was accomplished while growing our fleet and increasing average rental rates. Our initiatives to grow modular sales also showed progress as sales revenues increased by 10% compared to a year ago.\n\nAt TRS-RenTelco and Adler Tanks the positive trends we experienced in the first half of this year continued in th...