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Exhibit 99.1 |
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PRESS RELEASE |
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5700 Las Positas Road Livermore, California 94551 925-606-9200 |
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FOR RELEASE August 3, 2021
McGrath RentCorp Announces Results for Second Quarter 2021
LIVERMORE, CA – August 3, 2021 – McGrath RentCorp (NASDAQ: MGRC) (the “Company”), a diversified business-to-business rental company, today announced total revenues for the quarter ended June 30, 2021 of $146.4 million, an increase of 6%, compared to the second quarter of 2020. The Company reported net income of $20.6 million, or $0.84 per diluted share, for the second quarter of 2021, compared to net income of $22.5 million, or $0.92 per diluted share, for the second quarter of 2020.
SECOND QUARTER 2021 Company HIGHLIGHTS:
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Rental revenues increased 10% year-over-year to $94.6 million. |
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Total revenues increased 6% year-over-year to $146.4 million. |
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Excluding $2.6 million Design Space and Kitchens To Go transaction related costs and amortization of newly acquired intangible assets, net income for the second quarter was $22.5 million, or $0.92 per share, which was comparable to second quarter of 2020. |
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Adjusted EBITDA1 increased $0.4 million to $58.5 million. |
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Dividend rate increased 4% year-over-year to $0.435 per share for the second quarter of 2021. On an annualized basis, this dividend represents a 2.2% yield on the August 2, 2021 close price of $78.90 per share. |
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The Company raised full year 2021 guidance for total revenue to $610 million to $640 million and for adjusted EBITDA to $245 million to $260 million. |
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Joe Hanna, President and CEO of McGrath RentCorp, made the following comments regarding these results and future expectations:
“Our second quarter results reflect improved end market conditions in each of our three business segments. Companywide rental revenues increased 10% year over year. Modular rental revenues grew 14%, with just over half the growth attributable to our Design Space and Kitchens To Go acquisitions during the quarter. Rental revenues at TRS and Adler grew 7% and 4% respectively. Sequential rental revenue growth in each segment reflected improving business conditions as we enter seasonally busier months of the year.
Our teams have been busy working through the integration of Design Space and Kitchens To Go, acquired during the second quarter. I am grateful for their exceptional support and very pleased with their progress. I am excited about the long-term potential from both of these acquisitions. Just in the first few months we have begun to realize opportunities from our combined selling resources and we expect many more opportunities to come.
While business activity levels have increased, we have also seen some impact from current economic realities in the new equipment sales portion of our modular business. Supply chain delays, labor shortages and higher costs for materials and labor are starting to extend project timelines and cause some new sales to push out to later in the year, or into next year. Consequently, our outlook for new modular equipment sales in 2021, while still higher than 2020, is not as strong as it was a few months ago.
The second half of the year is typically the most substantial contributor to our annual results. While the potential for COVID-19 related disruption remains, we will be fully focused on solid execution to make the most of the improved business conditions that we have recently seen.”
Division HIGHLIGHTS:
All comparisons presented below are for the quarter ended June 30, 2021 to the quarter ended June 30, 2020 unless otherwise indicated.
Mobile Modular
For the second quarter of 2021, the Company’s Mobile Modular division reported income from operations of $18.2 million, a decrease of $2.4 million, or 12%. Rental revenues increased 14% to $53.2 million, depreciation expense increased 23% to $7.1 million and other
direct costs increased 28% to $15.9 million, which resulted in an increase in gross profit on rental revenues of 6% to $30.3 million. The rental revenue increase was due in part to approximately $4.0 million revenues earned during the quarter from new Design Space and Kitchens To Go customers acquired during the quarter. Rental related services revenues increased 12% to $16.2 million, primarily due to increased delivery and return delivery revenues at Portable Storage and higher amortization of modular building delivery and return delivery and dismantle revenues, with associated gross profit increasing 7% to $4.4 million. Sales revenues decreased 3% to $14.8 million, primarily due to lower new equipment sales. Gross margin on sales was 39% compared to 29% in 2020, resulting in a 29% increase in gross profit on sales revenues to $5.8 million. Selling and administrative expenses increased 34% to $22.6 million, primarily due to increased employee salaries and benefit costs totaling $2.0 million, mostly due to the addition of Design Space and Kitchens To Go employees during the quarter, $1.7 million higher amortization of intangible assets due to the Design Space and Kitchens To Go acquisitions and $0.9 million acquisition related transaction costs in 2021.
TRS-RenTelco
For the second quarter of 2021, the Company’s TRS-RenTelco division reported income from operations of $8.5 million, an increase of $0.2 million, or 3%. Rental revenues increased 7% to $27.9 million, depreciation expense increased 1% to $11.9 million and other direct costs increased 32% to $4.7 million, which resulted in a 5% increase in gross profit on rental revenues to $11.2 million. The rental revenue increase was primarily due to increased demand for general purpose equipment compared to the prior year. Sales revenues decreased 20% to $4.8 million. Gross margin on sales was 62% in 2021 compared to 49% in 2020, resulting in a 3% increase in gross profit on sales revenues to $3.0 million. Selling and administrative expenses increased 3% to $6.1 million.
Adler Tanks
For the second quarter of 2021, the Company’s Adler Tanks division reported income from operations of $1.7 million, which was comparable to the prior year. Rental revenues increased 4% to $13.5 million, depreciation expense increased 2% to $4.2 million and other direct costs increased 19% to $2.7 million, which resulted in a comparable gross profit on rental revenues to $6.7 million in 2021 and 2020. Rental related services revenues increased 8% to $5.8 million, with gross profit on rental related services decreasing $0.3 million, or 21%, to $1.0 million. Selling and administrative expenses decreased 2% to $6.3 million.
financial outlook:
Based upon the Company’s year-to-date results, current outlook for the remainder of the year, and the previously announced acquisition of Design Space, the Company is raising its financial outlook.
For the full-year 2021, the Company expects:
Previous Current
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Total revenue: $570 million to $610 million$610 million to $640 million |
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Adjusted EBITDA: $232 million to $247 million$245 million to $260 million |
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Gross rental equipment capital expenditures: $90 million to $110 million$100 million to $120 million |
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1. |
Adjusted EBITDA is defined as net income before interest expense, provision for income taxes, depreciation, amortization, non-cash impairment costs and share-based compensation. 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. |
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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 RentCorp:
Founded in 1979, McGrath RentCorp (Nasdaq: MGRC) is a diversified business-to-business rental company providing modular buildings, electronic test equipment, portable storage and tank containment solutions across the United States and other select North American regions. The Company’s rental operations consist of four divisions: Mobile Modular rents and sells modular buildings to fulfill customers’ temporary and permanent classroom and office space needs; TRS-RenTelco rents and sells electronic test equipment; Adler Tank Rentals rents and sells containment solutions for hazardous and nonhazardous liquids and solids; and Mobile Modular Portable Storage provides portable storage rental solutions. For more information on McGrath RentCorp and its operating units, please visit our websites:
Corporate – www.mgrc.com
Modular Buildings – www.mobilemodular.com
Electronic Test Equipment – www.trsrentelco.com
Tanks and Boxes – www.adlertankrentals.com
Portable Storage –
www.mobilemodularcontainers.com
School Facilities Manufacturing – www.enviroplex.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 July 7, 2021, McGrath RentCorp will host a conference call at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) on August 3, 2021 to discuss the second quarter 2021 results. To participate in the teleconference, dial 1-844-707-0666 (in the U.S.), or 1-703-639-1220 (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 1-855-859-2056 (in the U.S.), or 1-404-537-3406 (outside the U.S.). The pass code for the conference call replay is 5573645. 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 being excited about the long-term potential from both of the Design Space and Kitchens To Go acquisitions, the expectation of the realization of more opportunities from the combined selling resources, the impact supply chain delays, labor shortages and higher costs of materials and labor are having on project timelines and the Company’s outlook for new equipment sales in 2021, the potential for COVID-19 related disruption and keeping fully focused on solid execution and improved business conditions, as well as the statements regarding the full year 2021 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: the duration of the COVID-19 pandemic and its economic impact, the extent and length of the shelter-in and other restrictions associated with COVID-19 pandemic, the health of the education and commercial markets in our modular building division; the activity levels in the general purpose and communications test equipment markets at TRS-RenTelco; the ability to obtain the synergies expected from the Design Space and Kitchens To Go acquisition, the utilization levels and rental rates of our Adler Tanks liquid and solid containment tank and box rental assets; continued execution of our performance improvement initiatives; and our ability to effectively manage our rental assets, as well as the 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)
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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(in thousands, except per share amounts) |
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2021 |
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2020 |
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2021 |
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2020 |
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Revenues |
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Rental |
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$ |
94,581 |
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$ |
85,629 |
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$ |
180,668 |
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$ |
175,135 |
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Rental related services |
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22,688 |
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20,475 |
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42,357 |
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44,986 |
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Rental operations |
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117,269 |
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106,104 |
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223,025 |
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220,121 |
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Sales |
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28,256 |
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30,669 |
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42,867 |
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45,035 |
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Other |
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910 |
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900 |
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1,738 |
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1,970 |
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Total revenues |
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146,435 |
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137,673 |
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267,630 |
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267,126 |
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Costs and Expenses |
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Direct costs of rental operations: |
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Depreciation of rental equipment |
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23,159 |
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21,583 |
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44,414 |
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43,221 |
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Rental related services |
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17,276 |
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14,894 |
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31,880 |
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33,157 |
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Other |
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23,278 |
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18,165 |
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42,985 |
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37,618 |
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Total direct costs of rental operations |
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63,713 |
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54,642 |
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119,279 |
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113,996 |
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Costs of sales |
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16,855 |
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19,799 |
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25,403 |
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28,242 |
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Total costs of revenues |
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80,568 |
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74,441 |
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144,682 |
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142,238 |
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Gross profit |
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65,867 |
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63,232 |
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122,948 |
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124,888 |
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Selling and administrative expenses |
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36,261 |
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30,540 |
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69,398 |
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62,494 |
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Income from operations |
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29,606 |
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32,692 |
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53,550 |
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62,394 |
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Other expense: |
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Interest expense |
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(2,257 |
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(2,184 |
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(4,040 |
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(4,836 |
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Foreign currency exchange (loss) gain |
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(2 |
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117 |
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(57 |
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(319 |
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Income before provision for income taxes |
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27,347 |
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30,625 |
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49,453 |
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57,239 |
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Provision for income taxes |
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6,739 |
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8,076 |
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11,447 |
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14,531 |
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Net income |
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$ |
20,608 |
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$ |
22,549 |
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$ |
38,006 |
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$ |
42,708 |
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Earnings per share: |
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Basic |
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$ |
0.85 |
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$ |
0.93 |
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$ |
1.57 |
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$ |
1.76 |
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Diluted |
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$ |
0.84 |
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$ |
0.92 |
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$ |
1.55 |
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$ |
1.74 |
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Shares used in per share calculation: |
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Basic |
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24,229 |
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24,121 |
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24,191 |
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24,207 |
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Diluted |
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24,494 |
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24,471 |
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24,505 |
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24,612 |
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Cash dividends declared per share |
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$ |
0.435 |
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$ |
0.420 |
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$ |
0.870 |
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$ |
0.840 |
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MCGRATH RENTCORP
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
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June 30, |
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December 31, |
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(in thousands) |
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2021 |
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2020 |
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Assets |
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Cash |
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$ |
2,412 |
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$ |
1,238 |
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Accounts receivable, net of allowance for doubtful accounts of $2,225 in 2021 and $2,100 in 2020 |
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140,909 |
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123,316 |
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Rental equipment, at cost: |
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Relocatable modular buildings |
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1,019,697 |
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882,115 |
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Electronic test equipment |
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360,720 |
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333,020 |
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Liquid and solid containment tanks and boxes |
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313,677 |
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315,706 |
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1,694,094 |
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1,530,841 |
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Less accumulated depreciation |
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(621,039 |
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(592,725 |
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Rental equipment, net |
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1,073,055 |
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938,116 |
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Property, plant and equipment, net |
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138,590 |
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136,210 |
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Prepaid expenses and other assets |
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57,499 |
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41,549 |
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Intangible assets, net |
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51,169 |
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7,118 |
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Goodwill |
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132,393 |
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28,197 |
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Total assets |
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$ |
1,596,027 |
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$ |
1,275,744 |
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Liabilities and Shareholders' Equity |
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Liabilities: |
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Notes payable |
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$ |
472,696 |
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$ |
222,754 |
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Accounts payable and accrued liabilities |
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144,901 |
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|
108,334 |
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Deferred income |
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56,964 |
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|
45,975 |
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Deferred income taxes, net |
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223,345 |
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|
216,077 |
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Total liabilities |
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897,906 |
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593,140 |
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Shareholders’ equity: |
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Common stock, no par value - Authorized 40,000 shares |
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Issued and outstanding - 24,245 shares as of June 30, 2021 and 24,128 shares as of December 31, 2020 |
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|
105,058 |
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|
106,289 |
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Retained earnings |
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|
593,132 |
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|
|
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|
576,419 |
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Accumulated other comprehensive loss |
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|
(69 |
) |
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|
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|
(104 |
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Total shareholders’ equity |
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|
698,121 |
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|
|
|
|
682,604 |
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Total liabilities and shareholders’ equity |
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$ |
1,596,027 |
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|
|
$ |
1,275,744 |
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MCGRATH RENTCORP
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
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Six Months Ended June 30, |
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(in thousands) |
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2021 |
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2020 |
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Cash Flows from Operating Activities: |
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Net income |
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$ |
38,006 |
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$ |
42,708 |
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Adjustments to reconcile net income to net cash provided by operating activities: |
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|
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|
|
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|
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Depreciation and amortization |
|
|
50,559 |
|
|
|
47,663 |
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Provision for doubtful accounts |
|
|
138 |
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|
|
833 |
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Share-based compensation |
|
|
3,597 |
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|
|
3,224 |
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Gain on sale of used rental equipment |
|
|
(11,870 |
) |
|
|
(9,602 |
) |
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Foreign currency exchange loss |
|
|
57 |
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|
|
319 |
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Amortization of debt issuance costs |
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|
6 |
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|
5 |
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Change in: |
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|
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|
|
|
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Accounts receivable |
|
|
(5,494 |
) |
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|
1,326 |
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|
Prepaid expenses and other assets |
|
|
(9,385 |
) |
|
|
(1,641 |
) |
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Accounts payable and accrued liabilities |
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|
17,642 |
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|
|
6,389 |
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Deferred income |
|
|
7,458 |
|
|
|
5,815 |
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Deferred income taxes |
|
|
7,268 |
|
|
|
483 |
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|
Net cash provided by operating activities |
|
|
97,982 |
|
|
|
97,522 |
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Cash Flows from Investing Activities: |
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|
|
|
|
|
|
|
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Purchases of rental equipment |
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|
(58,902 |
) |
|
|
(57,564 |
) |
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Purchases of property, plant and equipment |
|
|
(2,272 |
) |
|
|
(6,893 |
) |
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Cash paid for acquisition of businesses |
|
|
(284,341 |
) |
|
|
— |
|
|
Proceeds from sales of used rental equipment |
|
|
24,674 |
|
|
|
21,921 |
|
|
Net cash used in investing activities |
|
|
(320,841 |
) |
|
|
(42,536 |
) |
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Cash Flows from Financing Activities: |
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|
|
|
|
|
|
|
|
Net borrowing (repayment) under bank lines of credit |
|
|
189,983 |
|
|
|
(21,288 |
) |
|
Borrowing under private placement |
|
|
60,000 |
|
|
|
— |
|
|
Repurchase of common stock |
|
|
— |
|
|
|
(13,501 |
) |
|
Taxes paid related to net share settlement of stock awards |
|
|
(4,828 |
) |
|
|
(2,340 |
) |
|
Payment of dividends |
|
|
(21,089 |
) |
|
|
(19,526 |
) |
|
Net cash provided by (used in) financing activities |
|
|
224,066 |
|
|
|
(56,655 |
) |
|
Effect of foreign currency exchange rate changes on cash |
|
|
(33 |
) |
|
|
21 |
|
|
Net increase (decrease) in cash |
|
|
1,174 |
|
|
|
(1,648 |
) |
|
Cash balance, beginning of period |
|
|
1,238 |
|
|
|
2,342 |
|
|
Cash balance, end of period |
|
$ |
2,412 |
|
|
$ |
694 |
|
|
Supplemental Disclosure of Cash Flow Information: |
|
|
|
|
|
|
|
|
|
Interest paid, during the period |
|
$ |
3,987 |
|
|
$ |
5,031 |
|
|
Net income taxes paid, during the period |
|
$ |
6,990 |
|
|
$ |
2,153 |
|
|
Dividends accrued during the period, not yet paid |
|
$ |
9,918 |
|
|
$ |
10,255 |
|
|
Rental equipment acquisitions, not yet paid |
|
$ |
8,502 |
|
|
$ |
6,654 |
|
|
|
|
|
|
|
|
|
|
|
|
MCGRATH RENTCORP |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BUSINESS SEGMENT DATA (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollar amounts in thousands) |
|
Mobile Modular |
|
|
TRS-RenTelco |
|
|
Adler Tanks |
|
|
Enviroplex |
|
|
Consolidated |
|
|||||
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental |
|
$ |
53,238 |
|
|
$ |
27,860 |
|
|
$ |
13,483 |
|
|
$ |
— |
|
|
$ |
94,581 |
|
|
Rental related services |
|
|
16,207 |
|
|
|
710 |
|
|
|
5,771 |
|
|
|
— |
|
|
|
22,688 |
|
|
Rental operations |
|
|
69,445 |
|
|
|
28,570 |
|
|
|
19,254 |
|
|
|
— |
|
|
|
117,269 |
|
|
Sales |
|
|
14,784 |
|
|
|
4,757 |
|
|
|
593 |
|
|
|
8,122 |
|
|
|
28,256 |
|
|
Other |
|
|
343 |
|
|
|
456 |
|
|
|
111 |
|
|
|
— |
|
|
|
910 |
|
|
Total revenues |
|
|
84,572 |
|
|
|
33,783 |
|
|
|
19,958 |
|
|
|
8,122 |
|
|
|
146,435 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct costs of rental operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
7,074 |
|
|
|
11,916 |
|
|
|
4,169 |
|
|
|
— |
|
|
|
23,159 |
|
|
Rental related services |
|
|
11,804 |
|
|
|
745 |
|
|
|
4,727 |
|
|
|
— |
|
|
|
17,276 |
|
|
Other |
|
|
15,901 |
|
|
|
4,718 |
|
|
|
2,659 |
|
|
|
— |
|
|
|
23,278 |
|
|
Total direct costs of rental operations |
|
|
34,779 |
|
|
|
17,379 |
|
|
|
11,555 |
|
|
|
— |
|
|
|
63,713 |
|
|
Costs of sales |
|
|
9,034 |
|
|
|
1,792 |
|
|
|
427 |
|
|
|
5,602 |
|
|
|
16,855 |
|
|
Total costs of revenues |
|
|
43,813 |
|
|
|
19,171 |
|
|
|
11,982 |
|
|
|
5,602 |
|
|
|
80,568 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental |
|
|
30,264 |
|
|
|
11,225 |
|
|
|
6,655 |
|
|
|
— |
|
|
|
48,144 |
|
|
Rental related services |
|
|
4,401 |
|
|
|
(33 |
) |
|
|
1,044 |
|
|
|
— |
|
|
|
5,412 |
|
|
Rental operations |
|
|
34,665 |
|
|
|
11,192 |
|
|
|
7,699 |
|
|
|
— |
|
|
|
53,556 |
|
|
Sales |
|
|
5,751 |
|
|
|
2,964 |
|
|
|
166 |
|
|
|
2,520 |
|
|
|
11,401 |
|
|
Other |
|
|
343 |
|
|
|
456 |
|
|
|
111 |
|
|
|
— |
|
|
|
910 |
|
|
Total gross profit |
|
|
40,759 |
|
|
|
14,612 |
|
|
|
7,976 |
|
|
|
2,520 |
|
|
|
65,867 |
|
|
Selling and administrative expenses |
|
|
22,602 |
|
|
|
6,073 |
|
|
|
6,253 |
|
|
|
1,333 |
|
|
|
36,261 |
|
|
Income from operations |
|
$ |
18,157 |
|
|
$ |
8,539 |
|
|
$ |
1,723 |
|
|
$ |
1,187 |
|
|
|
29,606 |
|
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,257 |
) |
|
Foreign currency exchange gain |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2 |
) |
|
Provision for income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6,739 |
) |
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
20,608 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average rental equipment 1 |
|
$ |
906,653 |
|
|
$ |
349,480 |
|
|
$ |
313,108 |
|
|
|
|
|
|
|
|
|
|
Average monthly total yield 2 |
|
|
1.96 |
% |
|
|
2.66 |
% |
|
|
1.44 |
% |
|
|
|
|
|
|
|
|
|
Average utilization 3 |
|
|
75.5 |
% |
|
|
67.7 |
% |
|
|
44.0 |
% |
|
|
|
|
|
|
|
|
|
Average monthly rental rate 4 |
|
|
2.59 |
% |
|
|
3.93 |
% |
|
|
3.27 |
% |
|
|
|
|
|
|
|
|
|
1. |
Average rental equipment represents the cost of rental equipment, excluding accessory equipment. For Mobile Modular and Adler Tanks, Average rental equipment also excludes new equipment inventory. |
2.Average monthly total yield is calculated by dividing the averages of monthly rental revenues by the cost of rental equipment for the period.
3.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.
4.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 June 30, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollar amounts in thousands) |
|
Mobile Modular |
|
|
TRS-RenTelco |
|
|
Adler Tanks |
|
|
Enviroplex |
|
|
Consolidated |
|
|||||
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental |
|
$ |
46,628 |
|
|
$ |
26,012 |
|
|
$ |
12,989 |
|
|
$ |
— |
|
|
$ |
85,629 |
|
|
Rental related services |
|
|
14,463 |
|
|
|
670 |
|
|
|
5,342 |
|
|
|
— |
|
|
|
20,475 |
|
|
Rental operations |
|
|
61,091 |
|
|
|
26,682 |
|
|
|
18,331 |
|
|
|
— |
|
|
|
106,104 |
|
|
Sales |
|
|
15,316 |
|
|
|
5,922 |
|
|
|
232 |
|
|
|
9,199 |
|
|
|
30,669 |
|
|
Other |
|
|
355 |
|
|
|
475 |
|
|
|
70 |
|
|
|
— |
|
|
|
900 |
|
|
Total revenues |
|
|
76,762 |
|
|
|
33,079 |
|
|
|
18,633 |
|
|
|
9,199 |
|
|
|
137,673 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct costs of rental operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
5,737 |
|
|
|
11,750 |
|
|
|
4,096 |
|
|
|
— |
|
|
|
21,583 |
|
|
Rental related services |
|
|
10,362 |
|
|
|
517 |
|
|
|
4,015 |
|
|
|
— |
|
|
|
14,894 |
|
|
Other |
|
|
12,376 |
|
|
|
3,562 |
|
|
|
2,227 |
|
|
|
— |
|
|
|
18,165 |
|
|
Total direct costs of rental operations |
|
|
28,475 |
|
|
|
15,829 |
|
|
|
10,338 |
|
|
|
— |
|
|
|
54,642 |
|
|
Costs of sales |
|
|
10,845 |
|
|
|
3,049 |
|
|
|
228 |
|
|
|
5,677 |
|
|
|
19,799 |
|
|
Total costs of revenues |
|
|
39,320 |
|
|
|
18,878 |
|
|
|
10,566 |
|
|
|
5,677 |
|
|
|
74,441 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental |
|
|
28,514 |
|
|
|
10,700 |
|
|
|
6,666 |
|
|
|
— |
|
|
|
45,880 |
|
|
Rental related services |
|
|
4,101 |
|
|
|
153 |
|
|
|
1,327 |
|
|
|
— |
|
|
|
5,581 |
|
|
Rental operations |
|
|
32,615 |
|
|
|
10,853 |
|
|
|
7,993 |
|
|
|
— |
|
|
|
51,461 |
|
|
Sales |
|
|
4,471 |
|
|
|
2,873 |
|
|
|
4 |
|
|
|
3,522 |
|
|
|
10,870 |
|
|
Other |
|
|
356 |
|
|
|
475 |
|
|
|
70 |
|
|
|
— |
|
|
|
901 |
|
|
Total gross profit |
|
|
37,442 |
|
|
|
14,201 |
|
|
|
8,067 |
|
|
|
3,522 |
|
|
|
63,232 |
|
|
Selling and administrative expenses |
|
|
16,857 |
|
|
|
5,875 |
|
|
|
6,353 |
|
|
|
1,455 |
|
|
|
30,540 |
|
|
Income from operations |
|
$ |
20,585 |
|
|
$ |
8,326 |
|
|
$ |
1,714 |
|
|
$ |
2,067 |
|
|
|
32,692 |
|
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,184 |
) |
|
Foreign currency exchange gain |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
117 |
|
|
Provision for income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(8,076 |
) |
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
22,549 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average rental equipment 1 |
|
$ |
822,743 |
|
|
$ |
338,919 |
|
|
$ |
314,780 |
|
|
|
|
|
|
|
|
|
|
Average monthly total yield 2 |
|
|
1.89 |
% |
|
|
2.56 |
% |
|
|
1.38 |
% |
|
|
|
|
|
|
|
|
|
Average utilization 3 |
|
|
77.7 |
% |
|
|
63.9 |
% |
|
|
44.3 |
% |
|
|
|
|
|
|
|
|
|
Average monthly rental rate 4 |
|
|
2.43 |
% |
|
|
4.00 |
% |
|
|
3.10 |
% |
|
|
|
|
|
|
|
|
|
1. |
Average rental equipment represents the cost of rental equipment, excluding accessory equipment. For Mobile Modular and Adler Tanks, Average rental equipment also excludes new equipment inventory. |
2.Average monthly total yield is calculated by dividing the averages of monthly rental revenues by the cost of rental equipment for the period.
3.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.
4.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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollar amounts in thousands) |
|
Mobile Modular |
|
|
TRS-RenTelco |
|
|
Adler Tanks |
|
|
Enviroplex |
|
|
Consolidated |
|
|||||
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental |
|
$ |
99,895 |
|
|
$ |
55,136 |
|
|
$ |
25,637 |
|
|
$ |
— |
|
|
$ |
180,668 |
|
|
Rental related services |
|
|
30,258 |
|
|
|
1,450 |
|
|
|
10,649 |
|
|
|
— |
|
|
|
42,357 |
|
|
Rental operations |
|
|
130,153 |
|
|
|
56,586 |
|
|
|
36,286 |
|
|
|
— |
|
|
|
223,025 |
|
|
Sales |
|
|
22,404 |
|
|
|
9,906 |
|
|
|
1,201 |
|
|
|
9,356 |
|
|
|
42,867 |
|
|
Other |
|
|
663 |
|
|
|
894 |
|
|
|
181 |
|
|
|
— |
|
|
|
1,738 |
|
|
Total revenues |
|
|
153,220 |
|
|
|
67,386 |
|
|
|
37,668 |
|
|
|
9,356 |
|
|
|
267,630 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct costs of rental operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
12,893 |
|
|
|
23,278 |
|
|
|
8,243 |
|
|
|
— |
|
|
|
44,414 |
|
|
Rental related services |
|
|
21,876 |
|
|
|
1,398 |
|
|
|
8,606 |
|
|
|
— |
|
|
|
31,880 |
|
|
Other |
|
|
28,776 |
|
|
|
9,252 |
|
|
|
4,957 |
|
|
|
— |
|
|
|
42,985 |
|
|
Total direct costs of rental operations |
|
|
63,545 |
|
|
|
33,928 |
|
|
|
21,806 |
|
|
|
— |
|
|
|
119,279 |
|
|
Costs of sales |
|
|
13,982 |
|
|
|
4,093 |
|
|
|
843 |
|
|
|
6,485 |
|
|
|
25,403 |
|
|
Total costs of revenues |
|
|
77,527 |
|
|
|
38,021 |
|
|
|
22,649 |
|
|
|
6,485 |
|
|
|
144,682 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental |
|
|
58,227 |
|
|
|
22,605 |
|
|
|
12,437 |
|
|
|
— |
|
|
|
93,269 |
|
|
Rental related services |
|
|
8,380 |
|
|
|
54 |
|
|
|
2,043 |
|
|
|
— |
|
|
|
10,477 |
|
|
Rental operations |
|
|
66,607 |
|
|
|
22,659 |
|
|
|
14,480 |
|
|
|
— |
|
|
|
103,746 |
|
|
Sales |
|
|
8,423 |
|
|
|
5,812 |
|
|
|
358 |
|
|
|
2,871 |
|
|
|
17,464 |
|
|
Other |
|
|
663 |
|
|
|
894 |
|
|
|
181 |
|
|
|
— |
|
|
|
1,738 |
|
|
Total gross profit |
|
|
75,693 |
|
|
|
29,365 |
|
|
|
15,019 |
|
|
|
2,871 |
|
|
|
122,948 |
|
|
Selling and administrative expenses |
|
|
41,839 |
|
|
|
12,371 |
|
|
|
12,520 |
|
|
|
2,668 |
|
|
|
69,398 |
|
|
Income from operations |
|
$ |
33,854 |
|
|
$ |
16,994 |
|
|
$ |
2,499 |
|
|
$ |
203 |
|
|
|
53,550 |
|
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4,040 |
) |
|
Foreign currency exchange loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(57 |
) |
|
Provision for income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(11,447 |
) |
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
38,006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average rental equipment 1 |
|
$ |
876,529 |
|
|
$ |
342,526 |
|
|
$ |
313,498 |
|
|
|
|
|
|
|
|
|
|
Average monthly total yield 2 |
|
|
1.90 |
% |
|
|
2.68 |
% |
|
|
1.36 |
% |
|
|
|
|
|
|
|
|
|
Average utilization 3 |
|
|
75.7 |
% |
|
|
67.7 |
% |
|
|
42.1 |
% |
|
|
|
|
|
|
|
|
|
Average monthly rental rate 4 |
|
|
2.44 |
% |
|
|
3.96 |
% |
|
|
3.24 |
% |
|
|
|
|
|
|
|
|
|
1. |
Average rental equipment represents the cost of rental equipment, excluding accessory equipment. For Mobile Modular and Adler Tanks, Average rental equipment also excludes new equipment inventory. |
2.Average monthly total yield is calculated by dividing the averages of monthly rental revenues by the cost of rental equipment for the period.
3.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.
4.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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollar amounts in thousands) |
|
Mobile Modular |
|
|
TRS-RenTelco |
|
|
Adler Tanks |
|
|
Enviroplex |
|
|
Consolidated |
|
|||||
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental |
|
$ |
94,038 |
|
|
$ |
53,548 |
|
|
$ |
27,549 |
|
|
$ |
— |
|
|
$ |
175,135 |
|
|
Rental related services |
|
|
32,607 |
|
|
|
1,496 |
|
|
|
10,883 |
|
|
|
— |
|
|
|
44,986 |
|
|
Rental operations |
|
|
126,645 |
|
|
|
55,044 |
|
|
|
38,432 |
|
|
|
— |
|
|
|
220,121 |
|
|
Sales |
|
|
22,572 |
|
|
|
11,031 |
|
|
|
730 |
|
|
|
10,702 |
|
|
|
45,035 |
|
|
Other |
|
|
743 |
|
|
|
1,067 |
|
|
|
160 |
|
|
|
— |
|
|
|
1,970 |
|
|
Total revenues |
|
|
149,960 |
|
|
|
67,142 |
|
|
|
39,322 |
|
|
|
10,702 |
|
|
|
267,126 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct costs of rental operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
11,406 |
|
|
|
23,582 |
|
|
|
8,233 |
|
|
|
— |
|
|
|
43,221 |
|
|
Rental related services |
|
|
23,712 |
|
|
|
1,163 |
|
|
|
8,282 |
|
|
|
— |
|
|
|
33,157 |
|
|
Other |
|
|
24,993 |
|
|
|
7,942 |
|
|
|
4,683 |
|
|
|
— |
|
|
|
37,618 |
|
|
Total direct costs of rental operations |
|
|
60,111 |
|
|
|
32,687 |
|
|
|
21,198 |
|
|
|
— |
|
|
|
113,996 |
|
|
Costs of sales |
|
|
15,548 |
|
|
|
5,497 |
|
|
|
548 |
|
|
|
6,649 |
|
|
|
28,242 |
|
|
Total costs of revenues |
|
|
75,659 |
|
|
|
38,184 |
|
|
|
21,746 |
|
|
|
6,649 |
|
|
|
142,238 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental |
|
|
57,638 |
|
|
|
22,024 |
|
|
|
14,633 |
|
|
|
— |
|
|
|
94,295 |
|
|
Rental related services |
|
|
8,895 |
|
|
|
333 |
|
|
|
2,601 |
|
|
|
— |
|
|
|
11,829 |
|
|
Rental operations |
|
|
66,533 |
|
|
|
22,357 |
|
|
|
17,234 |
|
|
|
— |
|
|
|
106,124 |
|
|
Sales |
|
|
7,024 |
|
|
|
5,534 |
|
|
|
182 |
|
|
|
4,053 |
|
|
|
16,793 |
|
|
Other |
|
|
744 |
|
|
|
1,067 |
|
|
|
160 |
|
|
|
— |
|
|
|
1,971 |
|
|
Total gross profit |
|
|
74,301 |
|
|
|
28,958 |
|
|
|
17,576 |
|
|
|
4,053 |
|
|
|
124,888 |
|
|
Selling and administrative expenses |
|
|
34,275 |
|
|
|
12,236 |
|
|
|
13,177 |
|
|
|
2,806 |
|
|
|
62,494 |
|
|
Income from operations |
|
$ |
40,026 |
|
|
$ |
16,722 |
|
|
$ |
4,399 |
|
|
$ |
1,247 |
|
|
|
62,394 |
|
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4,836 |
) |
|
Foreign currency exchange gain |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(319 |
) |
|
Provision for income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(14,531 |
) |
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
42,708 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average rental equipment 1 |
|
$ |
819,212 |
|
|
$ |
338,066 |
|
|
$ |
314,823 |
|
|
|
|
|
|
|
|
|
|
Average monthly total yield 2 |
|
|
1.90 |
% |
|
|
2.64 |
% |
|
|
1.46 |
% |
|
|
|
|
|
|
|
|
|
Average utilization 3 |
|
|
78.2 |
% |
|
|
64.7 |
% |
|
|
45.9 |
% |
|
|
|
|
|
|
|
|
|
Average monthly rental rate 4 |
|
|
2.45 |
% |
|
|
4.08 |
% |
|
|
3.18 |
% |
|
|
|
|
|
|
|
|
|
1. |
Average rental equipment represents the cost of rental equipment, excluding accessory equipment. For Mobile Modular and Adler Tanks, Average rental equipment also excludes new equipment inventory. |
2.Average monthly total yield is calculated by dividing the averages of monthly rental revenues by the cost of rental equipment for the period.
3.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.
4.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 and share-based compensation. 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, 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. 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 Net Income to Adjusted EBITDA
|
(dollar amounts in thousands) |
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
Twelve Months Ended June 30, |
|
|||||||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
||||||
|
Net income |
|
$ |
20,608 |
|
|
$ |
22,549 |
|
|
$ |
38,006 |
|
|
$ |
42,708 |
|
|
$ |
97,282 |
|
|
$ |
101,577 |
|
|
Provision for income taxes |
|
|
6,739 |
|
|
|
8,076 |
|
|
|
11,447 |
|
|
|
14,531 |
|
|
|
26,976 |
|
|
|
34,571 |
|
|
Interest expense |
|
|
2,257 |
|
|
|
2,184 |
|
|
|
4,040 |
|
|
|
4,836 |
|
|
|
7,991 |
|
|
|
10,921 |
|
|
Depreciation and amortization |
|
|
27,099 |
|
|
|
23,801 |
|
|
|
50,559 |
|
|
|
47,663 |
|
|
|
97,539 |
|
|
|
94,052 |
|
|
EBITDA |
|
|
56,703 |
|
|
|
56,610 |
|
|
|
104,052 |
|
|
|
109,738 |
|
|
|
229,788 |
|
|
|
241,121 |
|
|
Share-based compensation |
|
|
1,820 |
|
|
|
1,501 |
|
|
|
3,597 |
|
|
|
3,224 |
|
|
|
5,922 |
|
|
|
6,370 |
|
|
Adjusted EBITDA 1 |
|
$ |
58,523 |
|
|
$ |
58,111 |
|
|
$ |
107,649 |
|
|
$ |
112,962 |
|
|
$ |
235,710 |
|
|
$ |
247,491 |
|
|
Adjusted EBITDA margin 2 |
|
|
40 |
% |
|
|
42 |
% |
|
|
40 |
% |
|
|
42 |
% |
|
|
41 |
% |
|
|
42 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Adjusted EBITDA to Net Cash Provided by Operating Activities
|
(dollar amounts in thousands) |
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
Twelve Months Ended June 30, |
|
|||||||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
||||||
|
Adjusted EBITDA 1 |
|
$ |
58,523 |
|
|
$ |
58,111 |
|
|
$ |
107,649 |
|
|
$ |
112,962 |
|
|
$ |
235,710 |
|
|
$ |
247,491 |
|
|
Interest paid |
|
|
(2,362 |
) |
|
|
(2,172 |
) |
|
|
(3,987 |
) |
|
|
(5,031 |
) |
|
|
(8,006 |
) |
|
|
(11,296 |
) |
|
Income taxes paid, net of refunds received |
|
|
(6,618 |
) |
|
|
(1,790 |
) |
|
|
(6,990 |
) |
|
|
(2,153 |
) |
|
|
(39,740 |
) |
|
|
(13,508 |
) |
|
Gain on sale of used rental equipment |
|
|
(7,076 |
) |
|
|
(4,814 |
) |
|
|
(11,870 |
) |
|
|
(9,602 |
) |
|
|
(21,597 |
) |
|
|
(21,743 |
) |
|
Foreign currency exchange loss (gain) |
|
|
2 |
|
|
|
(117 |
) |
|
|
57 |
|
|
|
319 |
|
|
|
(340 |
) |
|
|
321 |
|
|
Amortization of debt issuance costs |
|
|
3 |
|
|
|
2 |
|
|
|
6 |
|
|
|
5 |
|
|
|
12 |
|
|
|
11 |
|
|
Change in certain assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable, net |
|
|
(6,464 |
) |
|
|
(106 |
) |
|
|
(5,356 |
) |
|
|
2,159 |
|
|
|
(2,732 |
) |
|
|
(4,149 |
) |
|
Prepaid expenses and other assets |
|
|
(9,291 |
) |
|
|
(2,004 |
) |
|
|
(9,385 |
) |
|
|
(1,641 |
) |
|
|
(3,937 |
) |
|
|
6,075 |
|
|
Accounts payable and other liabilities |
|
|
30,785 |
|
|
|
5,858 |
|
|
|
20,400 |
|
|
|
(5,311 |
) |
|
|
28,940 |
|
|
|
(3,717 |
) |
|
Deferred income |
|
|
2,871 |
|
|
|
(1,128 |
) |
|
|
7,458 |
|
|
|
5,815 |
|
|
|
(7,346 |
) |
|
|
(5,956 |
) |
|
Net cash provided by operating activities |
|
$ |
60,373 |
|
|
$ |
51,840 |
|
|
$ |
97,982 |
|
|
$ |
97,522 |
|
|
$ |
180,964 |
|
|
$ |
193,529 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1. |
Adjusted EBITDA is defined as net income before interest expense, provision for income taxes, depreciation, amortization and share-based compensation. |
2.Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by total revenues for the period.
|
FOR INFORMATION CONTACT: |
Keith E. Pratt |
|
|
EVP & Chief Financial Officer |
|
|
925-606-9200 |