Business
McGrath RentCorp Announces Results for First Quarter 2020
LIVERMORE, Calif., April 29, 2020 (GLOBE NEWSWIRE) -- McGrath RentCorp (NASDAQ: MGRC) (the “Company”), a diversified business-to-business rental company,
About this update from Mcgrath Rentcorp
[{"type":"text","content":"LIVERMORE, Calif., April 29, 2020 (GLOBE NEWSWIRE) -- McGrath RentCorp (NASDAQ: MGRC) (the “Company”), a diversified business-to-business rental company, today announced total revenues for the quarter ended March 31, 2020 of $129.5 million, an increase of 6%, compared to the first quarter of 2019. The Company reported net income of $20.2 million, or $0.81 per diluted share, for the first quarter of 2020, compared to net income of $18.4 million, or $0.75 per diluted share, for the first quarter of 2019. \n FIRST QUARTER 2020 COMPANY HIGHLIGHTS: Income from operations increased 9% year-over-year to $29.7 million.Rental revenues increased 8% year-over-year to $89.5 million.Adjusted EBITDA1 increased 10% year-over-year to $54.9 million. Dividend rate increased 12% year-over-year to $0.42 per share for the first quarter of 2020. On an annualized basis, this dividend represents a 3.0% yield on the April 28, 2020 close price of $55.69 per share. Joe Hanna, President and CEO of McGrath RentCorp, made the following comments regarding these results and future expectations: “Since our last quarterly update in late February, we have seen a significant shift in our operating environment. We have transitioned from the generally positive and stable conditions for our businesses, which prevailed for the majority of the first quarter, to current conditions of higher uncertainty, disruption and more difficult operating environment overall related to the COVID-19 pandemic. In the rapidly changing operating environment, we have moved quickly to keep our employees safe, support our customers as they continue to operate, and protect long-term stakeholder value. The health and safety of our team members has been paramount. We have taken significant steps to ensure we are operating safely, consistent with national and local guidelines, while maintaining business continuity across the country for our customer-facing and production team members, as well as support staff. We were pleased with our start to 2020, completing a successful first quarter of top and bottom line growth. Our first quarter companywide rental revenues grew 8% and operating income grew 9% as we kicked off the year with good business momentum. Standout performers were Mobile Modular with continued strength in both classroom and commercial rentals and TRS-RenTelco with growth in both g...