Mcgrath Rentcorp · NASDAQ:MGRC
Mcgrath Rentcorp — Q1 2024 Earnings Presentation
39 slides from Mcgrath Rentcorp's earnings presentation, Apr 25, 2024
Slide 1: Q1 2024 Quarterly Investor Presentation
APRIL 25, 2024 Q1 2024 Quarterly Investor Presentation
Slide 2: Safe Harbor
Safe Harbor Statements contained in this presentation which are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, regarding McGrath’s (the “Company’s”) expectation
Slide 3: January 29, 2024 Announcement: WillScot Mobile Mini to Acquire McGrath RentCorp
January 29, 2024 Announcement WillScot Mobile Mini to Acquire McGrath RentCorp for $3.8 Billion, Enhancing Its Ability to Serve Customers in Turnkey Space Solutions Please refer to January 29, 2024 8-K filings, February 21, 2024 10-K and April 8, 2024 preliminary S-4 registration statement and speci
Slide 4: McGrath Overview
McGrath Overview PAGE 4
Slide 5: Uniquely McGrath: Over 40 Years of Excellence
Uniquely McGrath B2B Rentals Modulars, Storage & Dividend Investor Focus Electronics Champion Shareholder 33 Years of Return CAGR 17%(c) Consecutive Increases Revenue North America $832M Focus Adjusted 99% of EBITDA $322M(a) (b) Total Revenues Diverse Customer Base Strong Service ~22,000 Customers C
Slide 6: McGrath Snapshot Q1 2024
McGrath Snapshot Q1 2024 Total Revenues $188M Total Adjusted EBITDA (3) $72M TOTAL REVENUES MARKET CAP (1) $188M ~$2.7B 18% 26% 13% DIVERSE CUSTOMER BASE EMPLOYEES 16% 58% ~22,000 ~1,200 69% (2) (2) Mobile Modular Portable Storage Mobile Modular Portable Storage TRS-RenTelco TRS-RenTelco (1) As of 4
Slide 7: Mobile Modular
Mobile Modular QUARTERLY REVENUES (Q1-24) $128M RENTAL EQUIPMENT (AT 3/31/24 OAC (1)) POSITIONING: A leading modular provider in North America Focus on serving educational customers in several states, including $1,346M California, Florida and Texas RENTAL FLEET (units) 43,000 PRODUCTS: Office buildi
Slide 8: Portable Storage
Portable Storage QUARTERLY REVENUES (Q1-24) $25M RENTAL EQUIPMENT (AT 3/31/24 OAC (1)) POSITIONING: A leading portable storage provider in North America Focus on serving customers in several states, including California, Florida $241M and Texas RENTAL FLEET (units) 42,000 PRODUCTS: Portable storage
Slide 9: TRS-RenTelco
TRS-RenTelco QUARTERLY REVENUES (Q1-24) $34M RENTAL EQUIPMENT (AT 3/31/24 OAC (1)) POSITIONING: $371M A leading provider in North America PRODUCTS: RENTAL FLEET (units) 23,000 General purpose and communications test equipment ~ COVERAGE: Serving customers in North America and selectively overseas (1
Slide 10: Corporate Responsibility & Values
Corporate Responsibility & Values We take corporate social responsibility and fundamental good corporate citizenship seriously at McGrath Visit our corporate responsibility site for additional environmental sustainability, social responsibility and governance (ESG) information: https://investors.mgr
Slide 11: Financial Highlights
Financial Highlights PAGE 11
Slide 12: Q1 2024 Quarterly Highlights
Q1 2024 Quarterly Highlights Strong McGrath results reflecting impressive Mobile Modular and Portable Storage performance • Total revenues $187.8M (+15%) • Adjusted EBITDA $72.1M (+17%) Positive Mobile Modular and Portable Storage conditions (year over year) • Rental revenue growth at Mobile Modular
Slide 13: Operating Results
Operating Results (dollars in millions) Three months ended March 31 2024 2023 Change Rental Revenue 120.3 110.2 9% Rental Related Services 29.6 27.1 9% Sales 35.1 23.7 48% Other 2.8 2.7 6% Total Revenue 187.8 163.7 15% Gross Profit 93.3 77.4 21% Adjusted EBITDA (a) 72.1 61.8 17% (a) The Company defi
Slide 14: Rental Revenue Comparison (2023 – 2024)
Rental Revenue Comparison (2023 – 2024) Q1 Q1 +19% +9% 76.5 64.1 120.3 -13% 110.2 +8% 29.1 25.4 17.1 18.4 Mobile Modular (a) Portable Storage TRS-RenTelco MGRC 2023 2024 (a) Mobile Modular includes Kitchens To Go and excludes Enviroplex. (dollars in millions) PAGE 14
Slide 15: Adjusted EBITDA Comparison (2023 – 2024)
Adjusted EBITDA (a) Comparison (2023 – 2024) Q1 Q1 +34% +17% 43.3 72.1 32.4 -10% 61.8 +15% 20.6 18.5 10.0 11.5 Mobile Modular (b) Portable Storage TRS-RenTelco MGRC 2023 2024 (a) Adjusted EBITDA defined on page 13 (b) Mobile Modular includes Kitchens To Go and excludes Enviroplex. Enviroplex adjuste
Slide 16: Rental Segment Highlights
Rental Segment Highlights PAGE 16
Slide 17: Mobile Modular
Mobile Modular ae: McGRATH mobile KITCHENS TO GO" modular Pr ‘ymebemedular
Slide 18: Rental Assets
Rental Assets mobile modular ¥ 2's McGRATH PAGE 18
Slide 19: Modular Segment Total Revenues Q1 2024
Modular Segment Total Revenues Q1 2024 Mobile Modulars (a) Total Revenues $128M 1% 20% 79% (b) Rental Operations Sales Other (a) Mobile Modular includes Kitchens To Go and excludes Enviroplex (b) Other Revenue includes allocated revenues from Corporate for tenant income PAGE 19
Slide 20: Mobile Modular Operating Results
Mobile Modular Operating Results (a)(b) Total Revenues Rental Gross Profit Adjusted EBITDA $140 128 $60 $50 43 $120 21% %s of total 44 104 revenue $40 34% of total $100 revenue 18% 57% of rental 32 19% $40 31 revenue $30 $80 31% 21% $60 49% $20 $20 $40 62% 60% $10 $20 $0 $0 $0 Q1-23 Q1-24 Q1-23 Q1-2
Slide 21: Rental Operations Revenue Customer Mix Q1 2024
Rental Operations Revenue Customer Mix Q1 2024 (a) Customer Mix Education Mix Commercial Mix Higher Education, 2% Other, 6% Entertainment & Retail, 1% Daycare/Other, 2% Recreation, 2% Education, 33% Health Care, 2% Private K-12/ Government, 3% Charter, 6% Transportation, 3% General Business, 4% Resi
Slide 22: Mobile Modular Highlights
Mobile Modular Highlights (a)(b) Rental Revenue Period End Rental Equipment (Original Cost) Average Utilization $80 76.5 $1,600 100.0% 64.1 $1,400 79.4% 78.7% 1,189 80.0% $60 $1,200 1,106 $1,000 60.0% $40 $800 $600 40.0% $20 $400 20.0% $200 $0 $0 0.0% Q1 Q1 Q1 2023 2024 (a) Includes Kitchens To Go,
Slide 23: Mobile Modular Highlights
Mobile Modular Highlights (a) Adjusted EBITDA(b) Adjusted EBITDA(b) % of Total Revenue Average Rental Rate(c) $60 40% 3.00% 2.76% 2.72% 34% 31% 43.3 30% $40 2.00% 32.4 20% $20 1.00% 10% $0 0% 0.00% Q1 Q1 Q1 2023 2024 (a) Includes Kitchens To Go, 2023 includes Vesta from the acquisition date February
Slide 24: Mobile Modular Rental Revenue
Mobile Modular Rental Revenue (a)(b) Total fleet units on rent New Shipments Monthly revenue per unit Last Twelve Months Monthly revenue per unit $1,200 +9% $1,200 $1,063 $1,000 $971 +18% $1,000 $772 $800 $657 $800 $600 $600 $400 $400 $200 $200 $0 $0 Q1-23 Q1-24 LTM Q1-23 LTM Q1-24 $ per unit on ren
Slide 25: Mobile Modular Initiatives
Mobile Modular Initiatives Mobile Modular Plus(a)(c) Site Related Services(b)(c) $10 $4 3.2 7.2 2.4 5.7 2.3 $5 4.4 $2 $0 $0 Q1-22 Q1-23 Q1-24 Q1-22 Q1-23 Q1-24 (dollars in millions) (a) Mobile Modular Plus includes rental revenue for items such as steps, ramps, furniture, personal property expense,
Slide 26: Mobile Modular Sales
Mobile Modular Sales (a)(b) Total Sales Revenues New Sales Revenue $30 $30 25 25% $20 17 $20 19 42% $10 $10 10 75% 58% $0 $0 Q1-23 Q1-24 Q1-23 Q1-24 New Sales Used Sales (dollars in millions) (a) Sales revenues include Kitchens To Go and exclude Enviroplex (b) 2023 includes Vesta from the acquisitio
Slide 27: Portable Storage
Portable Storage ae McGRATH mobile p modular ® Portable PAGE 27
Slide 28: Portable Storage Total Revenues Q1 2024
Portable Storage Total Revenues Q1 2024 Portable Storage Total Revenues $25M 5% 2% 93% (1) Rental Operations Sales Other (1) Other Revenue includes allocated revenues from Corporate for tenant income PAGE 28
Slide 29: Portable Storage Operating Results
Portable Storage Operating Results (a) Total Revenues Rental Gross Profit Adjusted EBITDA $30 $20 $20 25 16 23 7% 14 4% 87% of rental $20 21% 19% 85% revenue 12 %s of total revenue 10 75% 74% 47% of total $10 $10 revenue 44% $10 $0 $0 $0 Q1-23 Q1-24 Q1-23 Q1-24 Q1-23 Q1-24 Rents RRS Sales & Other (a
Slide 30: Portable Storage Highlights
Portable Storage Highlights (a) Rental Revenue Period End Rental Equipment (Original Cost) Average Utilization $20 18.4 $250 100.0% 225 17.1 200 80.8% $200 80.0% $15 69.8% $150 60.0% $10 $100 40.0% $5 $50 20.0% $0 $0 0.0% Q1 Q1 Q1 2023 2024 (a) See page 39 for definitions of rental equipment and uti
Slide 31: Portable Storage Highlights
Portable Storage Highlights Adjusted EBITDA(a) Adjusted EBITDA(a) % of Total Revenue Average Rental Rate(b) $15 50% 47% 5.00% 44% 11.5 3.94% 40% 4.00% 3.71% 10.0 $10 30% 3.00% 20% 2.00% $5 10% 1.00% $0 0% 0.00% Q1 Q1 Q1 2023 2024 (a) Adjusted EBITDA defined on page 13 (dollars in millions) (b) See p
Slide 32: TRS-RenTelco
TRS-RenTelco PAGE 32
Slide 33: Rental Assets: Rental and Sales of Test Equipment
Rental Assets Rental and Sales of General Purpose and Communications Test Equipment PAGE 33
Slide 34: TRS-RenTelco Operating Results
TRS-RenTelco Operating Results (a) Total Revenues Rental Gross Profit Adjusted EBITDA $30 $50 $20 $40 36 34 $15 21 17% $20 57% 18 $30 23% 12 55% of total of total 32% revenue 81% revenue $10 9 75% $20 27% of rental revenue $10 $5 $10 $0 $0 $0 Q1-23 Q1-24 Q1-23 Q1-24 Q1-23 Q1-24 Rents RRS Sales & Oth
Slide 35: TRS-RenTelco Highlights
TRS-RenTelco Highlights (a) Rental Revenue Period End Rental Equipment (Original Cost) Average Utilization $40 $500 100.0% 398 29.1 $400 369 80.0% $30 25.4 59.2% $300 60.0% 56.5% $20 $200 40.0% $10 $100 20.0% $0 $0 0.0% Q1 Q1 Q1 2023 2024 (a) See page 39 for definitions of rental equipment and utili
Slide 36: TRS-RenTelco Highlights
TRS-RenTelco Highlights Adjusted EBITDA(a) Adjusted EBITDA(a) % of Total Revenue Average Rental Rate(b) $30 70% 5.00% 60% 57% 4.14% 4.03% 55% 4.00% 20.6 50% $20 18.5 3.00% 40% 30% 2.00% $10 20% 1.00% 10% $0 0% 0.00% Q1 Q1 Q1 2023 2024 (a) Adjusted EBITDA defined on page 13 (b) See page 39 for defini
Slide 37: Company Summary: Thank you for your interest and investment in MGRC
Company Summary McGrath (Nasdaq: MGRC) Established rental businesses with solid positions Strategic growth focus on Mobile Modular and Portable Storage Disciplined capital spending on new rental equipment and acquisitions Strong cash flow and resilient business model Dividend increases for 33 consec
Slide 38: Appendix
Appendix i: McGRATH
Slide 39: Definitions - Rental Fleet Metrics
Definitions - Rental Fleet Metrics Period End Utilization is calculated by dividing the cost of rental equipment on rent by the total cost of rental equipment excluding new equipment inventory and accessory equipment. Average utilization for the period is calculated using the average costs of the re