Business
McGrath RentCorp Announces Results for Fourth Quarter 2021
Company Announces 5% Dividend Increase LIVERMORE, Calif.--(BUSINESS WIRE)-- McGrath RentCorp (NASDAQ: MGRC) (the “Company”), a diversified
About this update from Mcgrath Rentcorp
[{"type":"text","content":"\nCompany Announces 5% Dividend Increase\n\n LIVERMORE, Calif.--(BUSINESS WIRE)--\nMcGrath RentCorp (NASDAQ: MGRC) (the “Company”), a diversified business-to-business rental company, today announced total revenues for the quarter ended December 31, 2021 of $175.9 million, an increase of 18%, compared to the fourth quarter of 2020. The Company reported net income of $28.4 million, or $1.16 per diluted share, for the fourth quarter of 2021, compared to net income of $31.2 million, or $1.27 per diluted share, for the fourth quarter of 2020.\n\nTotal revenues for the year ended December 31, 2021 increased to $616.8 million from $572.6 million in 2020, with adjusted EBITDA increasing $5.6 million, or 2%, to $246.6 million. Net income for the year ended December 31, 2021 was $89.7 million, or $3.66 per diluted share, compared to $102.0 million, or $4.16 per diluted share, in 2020.\n\nThe Company also announced that the board of directors declared a quarterly cash dividend of $0.455 per share for the quarter ending March 31, 2022, an increase of $0.02, or 5%, over the prior year period. The cash dividend will be payable on April 29, 2022 to all shareholders of record on April 15, 2022. This marks 31 consecutive years the Company has increased its annual dividend.\n\nFOURTH QUARTER 2021 COMPANY HIGHLIGHTS:\n\n\nRental revenues increased 20% year-over-year to $106.1 million.\n\n\nTotal revenues increased 18% year-over-year to $175.9 million.\n\n\nAdjusted EBITDA1 increased 12% year-over-year to $73.0 million.\n\n\nDividend rate increased 4% year-over-year to $0.435 per share for the fourth quarter of 2021. On an annualized basis, this dividend represents a 2.4% yield on the February 22, 2022 close price of $72.98 per share.\n\n\nJoe Hanna, President and CEO of McGrath RentCorp, made the following comments regarding these results and future expectations:\n\n“We were pleased with our fourth quarter results. Improved end market conditions in each of our three rental business segments enabled us to deliver a 20% increase in companywide rental revenues in the fourth quarter, compared to the prior year. Modular rental revenues grew 29%, with approximately three quarters of the growth attributable to our Design Space and Kitchens To Go acquisitions. Rental revenues at TRS-RenTelco and Adler Tanks grew 4% and 19%, respectively. We were also plea...