McGrath RentCorp (“McGrath” or the “Company”) (Nasdaq:
MGRC), a leading business-to-business rental company in North
America, today announced total revenues for the quarter ended March
31, 2023 of $173.2 million, an increase of 19%, compared to the
first quarter of 2022. The Company reported net income of $71.7
million, or $2.92 per diluted share, for the first quarter of 2023,
compared to net income of $18.8 million, or $0.77 per diluted
share, for the first quarter of 2022.
During the quarter ended March 31, 2023, the Company divested
its Adler Tanks business, which resulted in a net gain on sale of
$58.9 million that is included in both income from discontinued
operations and the Company's combined net income for the period.
The Company's financial results have been separated by continuing
operations and discontinued operations as a result of the
divestiture. Of the total revenues for the quarter ended March 31,
2023, $163.7 million was attributed to revenues from continuing
operations and $9.4 million to revenues from discontinued
operations. The reported net income of $71.7 million includes $11.5
million in income from continuing operations, or $0.47 per diluted
share, and $60.1 million in income from discontinued operations, or
$2.45 per diluted share. Income from continuing operations for the
first quarter of 2023 includes $14.2 million in Adler Tanks
divestiture and Vesta Modular acquisition transaction costs.
Excluding the divestiture and acquisition related transaction
costs, first quarter 2023 earnings per diluted share was $0.89.
FIRST QUARTER 2023 YEAR-OVER-YEAR COMPANY HIGHLIGHTS (FROM
CONTINUING OPERATIONS):
- Rental revenues increased 22% to $110.2 million.
- Total revenues increased 31% to $163.7 million.
- Adjusted EBITDA1 increased 23% to $61.8 million.
- Dividend rate of $0.465 per share for the first quarter
of 2023. On an annualized basis, this dividend represents a 2.1%
yield on the May 3, 2023 close price of $88.46 per share.
Joe Hanna, President and CEO of McGrath, made the following
comments regarding these results and future expectations:
“We were pleased with our first quarter results. Despite some
weather-related project start delays we were able to deliver a 22%
increase in companywide rental revenues, compared to the prior
year. Modular rental revenues grew 32%, with approximately half of
the growth attributable to our Vesta Modular and Brekke Storage
acquisitions. Excluding the acquisitions, the modular segment
rental revenues grew by a robust 17%. Rental revenues at
TRS-RenTelco grew 2%.
Our modular business saw broad based rental strength across
commercial, education and portable storage customer bases. With
healthy demand pipelines and high fleet utilization, we have front
loaded some of our new rental equipment capital spending for the
year. Our initiatives to grow modular sales also showed progress as
sales revenues increased by 70% compared to a year ago.
TRS-RenTelco had a positive start to the year, and despite some
softness in semiconductor related demand, was able to deliver
growth in both communications and general purpose rentals during
the first quarter.
Our teams have been very busy working through the integration of
Vesta Modular and Brekke Storage, along with completing the
divestiture of Adler Tanks. I am grateful for their exceptional
support and very pleased with their progress. I am excited about
the long-term potential from the Vesta business. Within the first
few months we have begun to realize opportunities from our combined
selling resources and expect many more opportunities to follow.
I am encouraged by the overall momentum we are seeing across the
business. We are focused on disciplined operational execution to
make the most of the market opportunities.”
DIVISION HIGHLIGHTS:
All comparisons presented below are for the quarter ended March
31, 2023 to the quarter ended March 31, 2022 unless otherwise
indicated.
MOBILE MODULAR
For the first quarter of 2023, the Company’s Mobile Modular
division reported Adjusted EBITDA of $42.4 million, an increase of
$12.0 million, or 40%.
- Rental revenues increased 32% to $81.1 million, depreciation
expense increased 21% to $9.4 million and other direct costs
increased 29% to $25.9 million, which resulted in an increase in
gross profit on rental revenues of 36% to $45.8 million. The rental
revenue increase was due in part to $8.7 million earned during the
quarter from the new Vesta Modular customers from the acquisition
completed on February 1, 2023.
- Rental related services revenues increased 43% to $26.3
million, primarily attributable to higher delivery and pick up
activities for both modular buildings and portable storage
containers, with associated gross profit increasing 48% to $7.6
million. Vesta Modular contributed $0.9 million gross profit on
rental related services during the quarter.
- Sales revenues increased 70% to $17.6 million, primarily from
higher new and used equipment sales. Gross margin on sales was 37%
compared to 39% in 2022, resulting in a 61% increase in gross
profit on sales revenues to $6.5 million. Vesta Modular contributed
$1.8 million gross profit on sales during the quarter.
- Selling and administrative expenses increased 88% to $46.5
million, primarily due to $12.9 million in acquisition and
divestiture related transaction costs and $4.6 million higher
employee salaries and benefit costs, largely due to the addition of
Vesta Modular employees.
TRS-RENTELCO
For the first quarter of 2023, the Company’s TRS-RenTelco
division reported Adjusted EBITDA of $20.6 million, which was
comparable to the prior year.
- Rental revenues increased 2% to $29.1 million, depreciation
expense increased 3% to $12.4 million and other direct costs
increased 11% to $5.2 million, which resulted in a 2% decrease in
gross profit on rental revenues to $11.5 million. The rental
revenue increase was the result of higher average monthly rental
rates, partly offset by lower average rental equipment on rent
compared to the prior year.
- Sales revenues increased 30% to $5.1 million and gross profit
on sales revenues increased 19% to $2.9 million.
- Selling and administrative expenses increased $2.9 million, or
43%, to $9.5 million, primarily due to higher allocated corporate
expenses, which included $1.4 million of allocated transaction
costs relating to the divestiture of Adler Tanks.
FINANCIAL OUTLOOK:
Based upon the Company's year-to-date results and current
outlook for the remainder of the year, the Company is raising its
financial outlook. For the full-year 2023, the Company expects:
Previous
Current
(Continuing
Operations)
●
Total revenue:
$780 to $810 million
$790 to $820 million
●
Adjusted EBITDA1, 2:
$294 to $309 million
$300 to $315 million
●
Gross rental equipment capital
expenditures:
$190 to $210 million
$190 to $210 million
1.
Adjusted EBITDA is defined as net income
before interest expense, provision for income taxes, depreciation,
amortization, non-cash impairment costs, share-based compensation
and transaction costs. A reconciliation of actual net income to
Adjusted EBITDA and Adjusted EBITDA to net cash provided by
operating activities can be found at the end of this release.
Adjusted EBITDA from continuing operations for the quarter ended
March 31, 2023, excludes the income from discontinued operations
from the divestiture of Adler Tanks.
2.
Information reconciling forward-looking
Adjusted EBITDA to the comparable GAAP financial measures is
unavailable to the Company without unreasonable effort because
certain items required for such reconciliations are outside of the
Company’s control and/or cannot be reasonably predicted, such as
the provision for income taxes. Therefore, no reconciliation to the
most comparable GAAP measures is provided. The Company provides
Adjusted EBITDA guidance because it believes that Adjusted EBITDA,
when viewed with the Company’s results under GAAP, provides useful
information for the reasons noted in the reconciliation of actual
Adjusted EBITDA to the most directly comparable GAAP measures at
the end of this release.
ABOUT MCGRATH:
McGrath RentCorp (Nasdaq: MGRC) is a leading
business-to-business rental company in North America with a strong
record of profitable business growth. Founded in 1979, McGrath’s
operations are centered on modular solutions through its Mobile
Modular and Mobile Modular Portable Storage businesses.
In addition, its TRS-RenTelco business offers electronic
test equipment rental solutions. The Company’s rental product
offerings and services are part of the circular supply economy,
helping customers work more efficiently, and sustainably manage
their environmental footprint. With over 40 years of experience,
McGrath’s success is driven by a focus on exceptional customer
experiences. This focus has underpinned the Company’s long-term
financial success and supported over 30 consecutive years of annual
dividend increases to shareholders, a rare distinction among
publicly listed companies.
Headquartered in Livermore, California. Additional information
about McGrath and its businesses is available at mgrc.com and
investors.mgrc.com.
You should read this press release in conjunction with the
financial statements and notes thereto included in the Company’s
latest Forms 10-K, 10-Q and other SEC filings. You can visit the
Company’s web site at www.mgrc.com to access information on McGrath
RentCorp, including the latest Forms 10-K, 10-Q and other SEC
filings.
CONFERENCE CALL NOTE:
As previously announced in its press release of March 31, 2023,
McGrath RentCorp will host a conference call at 5:00 p.m. Eastern
Time (2:00 p.m. Pacific Time) on May 4, 2023 to discuss the first
quarter 2023 results. To participate in the teleconference, dial
1-800-245-3047 (in the U.S.), or 1-203-518-9765 (outside the U.S.),
or to listen only, access the simultaneous webcast at the investor
relations section of the Company’s website at
https://investors.mgrc.com/. A replay will be available for 7 days
following the call by dialing 1-800-753-5479 (in the U.S.), or
1-402-220-2675 (outside the U.S.). In addition, a live audio
webcast and replay of the call may be found in the investor
relations section of the Company’s website at
https://investors.mgrc.com/events-and-presentations.
FORWARD-LOOKING STATEMENTS:
This press release contains 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 RentCorp’s expectations, strategies, prospects or
targets are forward looking statements. These forward-looking
statements also can be identified by the use of forward-looking
terminology such as “anticipates,” “believes,” “continues,”
“could,” “estimates,” “expects,” “intends,” “may,” “plan,”
“predict,” “project,” or “will,” or the negative of these terms or
other comparable terminology. In particular, Mr. Hanna’s statements
about (i) the healthy demand pipelines in modular, (ii) the
long-term potential from the Vesta Business, by realizing
opportunities from combined selling resources, (iii) the outlook on
future opportunities and the overall momentum across the business,
and (iv) statements regarding the full year 2023 in the “Financial
Outlook” section, are forward-looking.
These forward-looking statements are not guarantees of future
performance and involve significant risks and uncertainties that
could cause our actual results to differ materially from those
projected including: health of the education and commercial markets
in our modular building division; unforeseen liabilities and
integration challenges associated with the Vesta and Brekke Storage
acquisitions; the activity levels in the general purpose and
communications test equipment markets at TRS-RenTelco; continued
execution of our strategic performance improvement initiatives; our
ability to successfully increase prices to offset cost increases;
and our ability to effectively manage our rental assets, as well as
the other factors disclosed under “Risk Factors” in the Company’s
Form 10-K and other SEC filings.
Forward-looking statements are made only as of the date hereof.
Except as otherwise required by law, we assume no obligation to
update any of the forward-looking statements contained in this
press release.
MCGRATH RENTCORP
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended March
31,
(in thousands,
except per share amounts)
2023
2022
Revenues
Rental
$
110,247
$
90,050
Rental related services
27,132
19,032
Rental operations
137,379
109,082
Sales
23,660
15,219
Other
2,679
752
Total revenues
163,718
125,053
Costs and
Expenses
Direct costs of rental operations:
Depreciation of rental equipment
21,833
19,862
Rental related services
19,268
13,760
Other
31,135
24,854
Total direct costs of rental
operations
72,236
58,476
Costs of sales
14,115
8,542
Total costs of revenues
86,351
67,018
Gross profit
77,367
58,035
Selling and administrative expenses
57,498
32,605
Income from operations
19,869
25,430
Other (expense) income:
Interest expense
(7,464
)
(2,276
)
Foreign currency exchange gain
226
13
Income from continuing operations before
provision for income taxes
12,631
23,167
Provision for income taxes from continuing
operations
1,113
5,489
Income from continuing operations
11,518
17,678
Discontinued operations:
Income from discontinued operations before
provision for income taxes
1,709
1,388
Provision for income taxes from
discontinued operations
453
273
Gain on sale of discontinued operations,
net of tax
58,883
—
Income from discontinued operations
60,139
1,115
Net income
$
71,657
$
18,793
Earnings per share from continuing
operations:
Basic
$
0.47
$
0.73
Diluted
$
0.47
$
0.72
Earnings per share from discontinued
operations:
Basic
$
2.46
$
0.05
Diluted
$
2.45
$
0.05
Earnings per share:
Basic
$
2.93
$
0.77
Diluted
$
2.92
$
0.77
Shares used in per share calculation:
Basic
24,416
24,285
Diluted
24,542
24,534
Cash dividends declared per share
$
0.465
$
0.455
MCGRATH RENTCORP
CONDENSED CONSOLIDATED BALANCE
SHEETS
(UNAUDITED)
March 31,
December 31,
(in
thousands)
2023
2022
Assets
Cash
$
690
$
957
Accounts receivable, net of allowance for
credit losses of $2,612 in 2023 and $2,300 in 2022
177,006
169,937
Rental equipment, at cost:
Relocatable modular buildings
1,412,084
1,123,268
Electronic test equipment
401,801
398,267
1,813,885
1,521,535
Less: accumulated depreciation
(546,617
)
(531,218
)
Rental equipment, net
1,267,268
990,317
Property, plant and equipment, net
144,295
138,713
Prepaid expenses and other assets
80,490
69,837
Intangible assets, net
68,055
35,431
Goodwill
323,799
106,403
Assets of discontinued operations
—
196,249
Total assets
$
2,061,603
$
1,707,844
Liabilities and
Shareholders' Equity
Liabilities:
Notes payable
$
658,777
$
413,742
Accounts payable and accrued
liabilities
219,260
151,208
Deferred income
100,289
82,417
Deferred income taxes, net
223,739
203,361
Liabilities of discontinued operations
—
53,171
Total liabilities
1,202,065
903,899
Shareholders’ equity:
Common stock, no par value - Authorized
40,000 shares
Issued and outstanding - 24,466 shares as
of March 31, 2023 and 24,388 shares as of December 31, 2022
105,487
110,080
Retained earnings
754,147
693,943
Accumulated other comprehensive loss
(96
)
(78
)
Total shareholders’ equity
859,538
803,945
Total liabilities and shareholders’
equity
$
2,061,603
$
1,707,844
MCGRATH RENTCORP
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(UNAUDITED)
Three Months Ended March
31,
(in
thousands)
2023
2022
Cash Flows from
Operating Activities:
Net income
$
71,657
$
18,793
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
27,590
27,584
Deferred income taxes
(45,496
)
(3,676
)
Provision for credit losses
744
13
Share-based compensation
1,493
1,760
Gain on sale of discontinued
operations
(58,883
)
—
Gain on sale of used rental equipment
(3,089
)
(5,364
)
Foreign currency exchange gain
(226
)
(13
)
Amortization of debt issuance costs
2
4
Change in:
Accounts receivable
16,209
7,922
Prepaid expenses and other assets
(7,345
)
4,213
Accounts payable and accrued
liabilities
29,837
(4,716
)
Deferred income
3,218
5,223
Net cash provided by operating
activities
35,711
51,743
Cash Flows from
Investing Activities:
Proceeds from sale of discontinued
operations
262,454
—
Purchases of rental equipment
(77,731
)
(39,430
)
Purchases of property, plant and
equipment
(6,857
)
(5,417
)
Cash paid for acquisition of
businesses
(453,592
)
—
Proceeds from sales of used rental
equipment
12,197
10,308
Net cash used in investing activities
(263,529
)
(34,539
)
Cash Flows from
Financing Activities:
Net borrowings (payments) under bank lines
of credit
245,033
(2,482
)
Taxes paid related to net share settlement
of stock awards
(6,086
)
(3,605
)
Payment of dividends
(11,400
)
(11,006
)
Net cash provided by (used in) financing
activities
227,547
(17,093
)
Effect of foreign currency exchange rate
changes on cash
4
1
Net (decrease) increase in cash
(267
)
112
Cash balance, beginning of period
957
1,491
Cash balance, end of period
$
690
$
1,603
Supplemental
Disclosure of Cash Flow Information:
Interest paid, during the period
$
7,817
$
2,137
Net income taxes paid, during the
period
$
413
$
420
Dividends accrued during the period, not
yet paid
$
11,851
$
11,357
Rental equipment acquisitions, not yet
paid
$
5,697
$
12,869
MCGRATH RENTCORP
BUSINESS SEGMENT DATA
(unaudited)
Three months ended March 31,
2023
(dollar amounts in thousands)
Mobile Modular
TRS-RenTelco
Enviroplex
Adler Tanks
(Discontinued)
Consolidated
Revenues
Rental
$
81,113
$
29,134
$
—
$
6,520
$
116,767
Rental related services
26,252
880
—
2,584
29,716
Rental operations
107,365
30,014
—
9,104
146,483
Sales
17,605
5,114
941
269
23,929
Other
1,687
992
—
65
2,744
Total revenues
126,657
36,120
941
9,438
173,156
Costs and
Expenses
Direct costs of rental operations:
Depreciation
9,444
12,389
—
1,325
23,158
Rental related services
18,607
661
—
2,020
21,288
Other
25,910
5,225
—
1,270
32,405
Total direct costs of rental
operations
53,961
18,275
—
4,614
76,850
Costs of sales
11,074
2,225
816
159
14,274
Total costs of revenues
65,035
20,500
816
4,773
91,124
Gross
Profit
Rental
45,759
11,520
—
3,926
61,205
Rental related services
7,645
219
—
564
8,428
Rental operations
53,404
11,739
—
4,490
69,633
Sales
6,531
2,889
125
110
9,655
Other
1,687
992
—
65
2,744
Total gross profit
61,622
15,620
125
4,665
82,032
Selling and administrative expenses
46,514
9,451
1,533
2,582
60,080
Income (loss) from operations
$
15,108
$
6,169
$
(1,408
)
$
2,083
$
21,952
Interest expense
(7,838
)
Foreign currency exchange gain
226
Provision for income taxes
(1,566
)
Net income
$
12,774
Other
Information
Adjusted EBITDA 1
$
42,445
$
20,635
$
(1,330
)
$
3,682
$
65,432
Average rental equipment 2
$
1,176,874
$
396,835
Average monthly total yield 3
2.30
%
2.40
%
Average utilization 4
79.6
%
59.2
%
Average monthly rental rate 5
2.89
%
4.14
%
1.
Adjusted EBITDA is defined as net income
before interest expense, provision for income taxes, depreciation,
amortization, non-cash impairment costs, share-based compensation
and transaction costs. Adjusted EBITDA for the quarter ended March
31, 2023, excludes the gain on sale of discontinued operations from
the divestiture of Adler Tanks.
2.
Average rental equipment represents the
cost of rental equipment, excluding new equipment inventory and
accessory equipment.
3.
Average monthly total yield is calculated
by dividing the averages of monthly rental revenues by the cost of
rental equipment for the period.
4.
Average utilization is calculated by
dividing the average month end costs of rental equipment on rent by
the average month end total costs of rental equipment.
5.
Average monthly rental rate is calculated
by dividing the averages of monthly rental revenues by the cost of
rental equipment on rent for the period.
MCGRATH RENTCORP
BUSINESS SEGMENT DATA
(unaudited)
Three months ended March 31,
2022
(dollar amounts in thousands)
Mobile Modular
TRS-RenTelco
Enviroplex
Adler Tanks
(Discontinued)
Consolidated
Revenues
Rental
$
61,538
$
28,512
$
—
$
14,191
$
104,241
Rental related services
18,361
671
—
5,285
24,317
Rental operations
79,899
29,183
—
19,476
128,558
Sales
10,375
3,927
917
657
15,876
Other
371
381
—
187
939
Total revenues
90,645
33,491
917
20,320
145,373
Costs and
Expenses
Direct costs of rental operations:
Depreciation
7,833
12,029
—
4,012
23,874
Rental related services
13,180
580
—
4,383
18,143
Other
20,162
4,692
—
2,969
27,823
Total direct costs of rental
operations
41,175
17,301
—
11,364
69,840
Costs of sales
6,329
1,500
713
502
9,044
Total costs of revenues
47,504
18,801
713
11,866
78,884
Gross
Profit
Rental
33,543
11,791
—
7,210
52,544
Rental related services
5,181
91
—
902
6,174
Rental operations
38,724
11,882
—
8,112
58,718
Sales
4,046
2,427
204
155
6,832
Other
371
381
—
187
939
Total gross profit
43,141
14,690
204
8,454
66,489
Selling and administrative expenses
24,692
6,590
1,323
6,522
39,127
Income (loss) from operations
$
18,449
$
8,100
$
(1,119
)
$
1,932
27,362
Interest expense
(2,820
)
Foreign currency exchange gain
13
Provision for income taxes
(5,762
)
Net income
$
18,793
Other
Information
Adjusted EBITDA 1
$
30,405
$
20,653
$
(1,046
)
$
6,707
$
56,719
Average rental equipment 2
$
1,006,903
$
366,667
Average monthly total yield 3
2.04
%
2.59
%
Average utilization 4
77.1
%
64.6
%
Average monthly rental rate 5
2.64
%
4.01
%
1.
Adjusted EBITDA is defined as net income
before interest expense, provision for income taxes, depreciation,
amortization, non-cash impairment costs, share-based compensation
and transaction costs.
2.
Average rental equipment represents the
cost of rental equipment, excluding new equipment inventory and
accessory equipment.
3.
Average monthly total yield is calculated
by dividing the averages of monthly rental revenues by the cost of
rental equipment for the period.
4.
Average utilization is calculated by
dividing the average month end costs of rental equipment on rent by
the average month end total costs of rental equipment.
5.
Average monthly rental rate is calculated
by dividing the averages of monthly rental revenues by the cost of
rental equipment on rent for the period.
Reconciliation of Adjusted EBITDA to the most directly
comparable GAAP measures
To supplement the Company’s financial data presented on a basis
consistent with accounting principles generally accepted in the
United States of America (“GAAP”), the Company presents “Adjusted
EBITDA”, which is defined by the Company as net income before
interest expense, provision for income taxes, depreciation,
amortization, share-based compensation and transaction costs. The
Company presents Adjusted EBITDA as a financial measure as
management believes it provides useful information to investors
regarding the Company’s liquidity and financial condition and
because management, as well as the Company’s lenders, use this
measure in evaluating the performance of the Company.
Management uses Adjusted EBITDA as a supplement to GAAP measures
to further evaluate the Company’s period-to-period operating
performance, compliance with financial covenants in the Company’s
revolving lines of credit and senior notes and the Company’s
ability to meet future capital expenditure and working capital
requirements. Management believes the exclusion of non-cash
charges, including share-based compensation and transaction costs,
is useful in measuring the Company’s cash available for operations
and performance of the Company. Because management finds Adjusted
EBITDA useful, the Company believes its investors will also find
Adjusted EBITDA useful in evaluating the Company’s performance.
Adjusted EBITDA should not be considered in isolation or as a
substitute for net income, cash flows, or other consolidated income
or cash flow data prepared in accordance with GAAP or as a measure
of the Company’s profitability or liquidity. Adjusted EBITDA is not
in accordance with or an alternative for GAAP and may be different
from non-GAAP measures used by other companies. Unlike EBITDA,
which may be used by other companies or investors, Adjusted EBITDA
does not include share-based compensation charges and transaction
costs. The Company believes that Adjusted EBITDA is of limited use
in that it does not reflect all of the amounts associated with the
Company’s results of operations as determined in accordance with
GAAP and does not accurately reflect real cash flow. In addition,
other companies may not use Adjusted EBITDA or may use other
non-GAAP measures, limiting the usefulness of Adjusted EBITDA for
purposes of comparison. The Company’s presentation of Adjusted
EBITDA should not be construed as an inference that the Company
will not incur expenses that are the same as or similar to the
adjustments in this presentation. Therefore, Adjusted EBITDA should
only be used to evaluate the Company’s results of operations in
conjunction with the corresponding GAAP measures. The Company
compensates for the limitations of Adjusted EBITDA by relying upon
GAAP results to gain a complete picture of the Company’s
performance. Because Adjusted EBITDA is a non-GAAP financial
measure as defined by the SEC, the Company includes in the tables
below reconciliations of Adjusted EBITDA to the most directly
comparable financial measures calculated and presented in
accordance with GAAP.
Reconciliation of Income from
Continuing Operations to Adjusted EBITDA
(dollar amounts in thousands)
Three Months Ended March
31,
Twelve Months Ended March
31,
2023
2022
2023
2022
Income from continuing operations
$
11,518
$
17,678
$
97,169
$
85,804
Provision for income taxes from continuing
operations
1,113
5,489
26,981
31,412
Interest expense
7,464
2,276
17,418
9,168
Depreciation and amortization
26,133
23,134
96,639
93,035
EBITDA
46,228
48,577
238,207
219,419
Share-based compensation
1,375
1,512
6,764
6,582
Transaction costs 3
14,147
—
18,200
2,045
Adjusted EBITDA 1
$
61,750
$
50,089
$
263,171
$
228,046
Adjusted EBITDA margin 2
38
%
40
%
39
%
41
%
Reconciliation of Adjusted EBITDA to
Net Cash Provided by Operating Activities
(dollar amounts in thousands)
Three Months Ended March
31,
Twelve Months Ended March
31,
2023
2022
2023
2022
Adjusted EBITDA 1
$
65,432
$
56,719
$
297,579
$
256,210
Interest paid
(7,817
)
(2,137
)
(20,455
)
(10,838
)
Income taxes paid, net of refunds
received
(413
)
(420
)
(27,355
)
(9,135
)
Gain on sale of used rental equipment
(3,089
)
(5,364
)
(35,704
)
(26,011
)
Foreign currency exchange (gain) loss
(226
)
(13
)
165
142
Amortization of debt issuance costs
2
4
14
16
Change in certain assets and
liabilities:
Accounts receivable, net
16,953
7,935
(21,506
)
(17,119
)
Prepaid expenses and other assets
(7,345
)
4,213
(28,042
)
(2,509
)
Accounts payable and other liabilities
(31,004
)
(14,417
)
(7,992
)
9,404
Deferred income
3,218
5,223
21,696
9,718
Net cash provided by operating
activities
$
35,711
$
51,743
$
178,400
$
209,878
1.
Adjusted EBITDA is defined as net income
before interest expense, provision for income taxes, depreciation,
amortization, non-cash impairment costs, share-based compensation
and transaction costs. Adjusted EBITDA for the quarter ended March
31, 2023, excludes the gain on sale of discontinued operations from
the divestiture of Adler Tanks. Total Adjusted EBITDA attributed to
discontinued operations for March 31, 2023 and 2022, was $3,682 and
$6,630, respectively.
2.
Adjusted EBITDA Margin is calculated as
Adjusted EBITDA divided by total revenues for the period.
3.
Transaction costs include acquisition and
divestiture related legal and professional fees and other costs
specific to these transactions.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230503006044/en/
Keith E. Pratt EVP & Chief Financial Officer
925-606-9200
McGrath RentCorp (NASDAQ:MGRC)
Historical Stock Chart
From Sep 2024 to Oct 2024
McGrath RentCorp (NASDAQ:MGRC)
Historical Stock Chart
From Oct 2023 to Oct 2024