Thu, Oct 24, 8:01 PM (268 days ago)
McGrath RentCorp (MGRC) reported strong financial results for the third quarter and nine months ended September 30, 2024, with total revenues increasing by 10% to $266.8 million and net income rising significantly to $149.3 million, influenced by a $180 million gain from the termination of a merger agreement with WillScot Mobile Mini. Excluding this gain and related transaction costs, net income improved by 14%. The gross profit also surged 11% to $124 million, primarily driven by the Mobile Modular segment, which saw a 14% revenue growth. However, the Portable Storage segment faced a decline in revenues and gross profit. Cash flow from operations was robust at $337.6 million, a substantial increase from $118.9 million in the prior year, owing to improved working capital management. The company’s debt levels rose, with interest expenses increasing due to higher average debt levels and interest rates, but it maintained compliance with its financial covenants. The balance sheet showed total assets of $2.29 billion, with a significant portion in rental equipment. Looking ahead, the company faces uncertainties related to market conditions, particularly in educational funding and competition, which could impact future performance.