Business
McGrath RentCorp Announces Results for Second Quarter 2022
LIVERMORE, Calif.--(BUSINESS WIRE)-- McGrath RentCorp (NASDAQ: MGRC) (the “Company”), a diversified business-to-business rental company, today announced
About this update from Mcgrath Rentcorp
[{"type":"text","content":" 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 June 30, 2022 of $177.0 million, an increase of 21%, compared to the second quarter of 2021. The Company reported net income of $26.1 million, or $1.07 per diluted share, for the second quarter of 2022, compared to net income of $20.6 million, or $0.84 per diluted share, for the second quarter of 2021.\n\nSECOND QUARTER 2022 YEAR-OVER-YEAR COMPANY HIGHLIGHTS:\n\n\nRental revenues increased 17% to $110.6 million.\n\n\nTotal revenues increased 21% to $177.0 million.\n\n\nAdjusted EBITDA1 increased 13% to $66.3 million.\n\n\nDividend rate increased 5% to $0.455 per share for the second quarter of 2022. On an annualized basis, this dividend represents a 2.2% yield on the July 27, 2022 close price of $81.18 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 very pleased with our second quarter results. Our 21% growth in total company revenues was a result of strong performance in both rental operations and sales revenues. Demand was healthy across each of our rental segments. Mobile Modular rental revenues grew 22%, with approximately half of the growth attributable to our Design Space and Titan Storage Container acquisitions. Excluding the acquisitions, the modular segment rental revenues grew by 11%. Rental revenue growth was also strong at TRS-RenTelco and Adler Tanks, which grew 7% and 18%, respectively.\n\nMobile Modular saw broad-based strength across our commercial, education and portable storage customer bases. We responded to this strong rental demand with increased capital spending to organically grow our fleet to capture growth opportunities, while also improving overall fleet utilization and increasing pricing. Operating expenses were elevated as we continued to spend robustly to prepare modular equipment for rent as we enter what is typically our busiest time of year for new project shipments. Our initiatives to also grow modular sales showed progress as sales revenues increased by 68% compared to a year ago.\n\nAt TRS-RenTelco and Adler Tanks the positive trends we experienced earlier this year continued in the second quarter. TR...