Thu, Jul 25, 8:01 PM (44 days ago)
McGrath RentCorp's 10-Q for the quarter ended June 30, 2024, reports a 5% increase in revenues to $212.6 million, driven by higher rental and service revenues. However, net income decreased by 33% to $20.6 million, primarily due to $14.3 million in higher selling and administrative expenses, including $12.4 million in costs related to the pending merger with WillScot Mobile Mini. Gross profit rose by 9% to $103.4 million, but interest expenses also increased by $3.1 million due to higher debt levels and interest rates. The effective tax rate for the quarter was 28.8%, up from 25.7% in the prior year. Adjusted EBITDA improved by 9% to $83.7 million. The company's future performance is subject to uncertainties related to the pending acquisition by WillScot Mobile Mini and potential regulatory approvals.