Business
McGrath RentCorp Announces Results for Third Quarter 2019
LIVERMORE, Calif., Oct. 29, 2019 (GLOBE NEWSWIRE) -- McGrath RentCorp (NASDAQ: MGRC) (the “Company”), a diversified business-to-business rental company, today
About this update from Mcgrath Rentcorp
[{"type":"text","content":"LIVERMORE, Calif., Oct. 29, 2019 (GLOBE NEWSWIRE) -- McGrath RentCorp (NASDAQ: MGRC) (the “Company”), a diversified business-to-business rental company, today announced total revenues for the quarter ended September 30, 2019 of $173.6 million, an increase of 21%, compared to the third quarter of 2018. The Company reported net income of $32.5 million, or $1.32 per diluted share, for the third quarter of 2019, compared to net income of $24.8 million, or $1.01 per diluted share, for the third quarter of 2018. \n THIRD QUARTER 2019 COMPANY HIGHLIGHTS: Income from operations increased 30% year-over-year to $46.7 million.Rental revenues increased 11% year-over-year to $90.9 million.Adjusted EBITDA1 increased 24% year-over-year to $70.8 million. Dividend rate increased 10% year-over-year to $0.375 per share for the third quarter of 2019. On an annualized basis, this dividend represents a 2.1% yield on the October 28, 2019 close price of $69.99 per share. Joe Hanna, President and CEO of McGrath RentCorp, made the following comments regarding these results and future expectations: “The third quarter underscored the benefit of our diverse portfolio as companywide total revenues increased 21%. Mobile Modular, TRS-RenTelco, and Enviroplex delivered significant operating profit growth compared to a year ago, contributing to the Company’s overall 30% operating profit increase. Our operating profit growth was driven by strong gross profit increases in both rental operations and sales. Mobile Modular rental revenues for the quarter increased 13% from a year ago, driven by improvement in average rental rates, a larger fleet and improved utilization with equipment on rent increasing 7%. Commercial and education rentals grew compared to a year ago, and reflected healthy overall business conditions. Portable Storage rental revenues grew by 11%. TRS-RenTelco rental revenues for the quarter increased 21%, primarily driven by higher average rental equipment and improved utilization. Demand for both general purpose and communications test equipment was healthy, as we serviced testing demand for both R&D needs as well as communications network upgrades. Adler Tank Rentals rental revenues for the quarter decreased 8% from a year ago, driven primarily by lower utilization, partly offset by higher rental rates. Weaker activity levels across multiple market...