Business
McGrath RentCorp Announces Results for Fourth Quarter 2019
Company Announces 12% Dividend Increase; 29th Consecutive Year Increase LIVERMORE, Calif., Feb. 25, 2020 (GLOBE NEWSWIRE) -- McGrath RentCorp (NASDAQ: MGRC)
About this update from Mcgrath Rentcorp
[{"type":"text","content":"Company Announces 12% Dividend Increase; 29th Consecutive Year Increase\n LIVERMORE, Calif., Feb. 25, 2020 (GLOBE NEWSWIRE) -- McGrath RentCorp (NASDAQ: MGRC) (the “Company”), a diversified business-to-business rental company, today announced total revenues for the quarter ended December 31, 2019 of $147.2 million, an increase of 11%, compared to the fourth quarter of 2018. The Company reported net income of $26.4 million, or $1.07 per diluted share, for the fourth quarter of 2019, compared to net income of $24.2 million, or $0.99 per diluted share, for the fourth quarter of 2018. Total revenues for the year ended December 31, 2019 increased to $570.2 million from $498.3 million in 2018, with income from operations increasing 20% to $141.4 million. Net income for the year ended December 31, 2019 increased to $96.8 million, or $3.93 per diluted share, from $79.4 million, or $3.24 per diluted share, in 2018. The Company also announced that the board of directors declared a quarterly cash dividend of $0.42 per share for the quarter ending March 31, 2020, an increase of $0.045, or 12%, over the prior year period. The cash dividend will be payable on April 30, 2020 to all shareholders of record on April 15, 2020. This marks the 29th consecutive year the Company has increased its annual dividend. FOURTH QUARTER 2019 COMPANY HIGHLIGHTS: Income from operations increased 9% year-over-year to $38.2 million.Rental revenues increased 8% year-over-year to $92.2 million.Adjusted EBITDA1 increased 11% year-over-year to $63.7 million. Dividend rate increased 10% year-over-year to $0.375 per share for the fourth quarter of 2019. On an annualized basis, this dividend represents a 1.9% yield on the February 24, 2020 close price of $78.54 per share. Joe Hanna, President and CEO of McGrath RentCorp, made the following comments regarding these results and future expectations: “We were pleased with our fourth quarter 2019 results as our teams delivered impressive revenue and operating profit growth over the strong fourth quarter results of 2018. The positive trends seen earlier in the year at Mobile Modular and TRS-RenTelco continued into the fourth quarter, more than offsetting weaker market demand conditions for Adler Tank Rentals. Full year results reflected overall healthy demand for the markets we serve, coupled with continued focus on performanc...