McGrath Announces Results for Fourth Quarter 2025 and Announces 35th Annual Dividend Increase
LIVERMORE, Calif.–(BUSINESS WIRE)–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 December 31, 2025 of $256.8 million, an increase of 5% compared to the fourth quarter of 2024. The Company reported net income of $49.8 million, or $2.02 per diluted share, for the fourth quarter of 2025, compared to net income of $38.9 million, or $1.58 per diluted share, for the fourth quarter of 2024.
Total revenues for the full year ended December 31, 2025 increased to $944.2 million, an increase of 4%, from $910.9 million in 2024, with adjusted EBITDA increasing $10.7 million, or 3%, to $362.5 million. Net income for the year ended December 31, 2025 was $156.3 million, or $6.35 per diluted share, compared to $231.7 million, or $9.43 per diluted share, in 2024. Excluding the $180.0 million merger termination payment received from WillScot Mobile Mini in 2024 and $63.2 million in transaction costs incurred, net of provision for income taxes, the Company’s reported full year 2025 net income increased $10.9 million, or 7%, and diluted earnings per share increased $0.43, or 7%.
The Company also announced that the board of directors declared a cash dividend of $0.495 per share for the upcoming quarter ending March 31, 2026, a quarterly increase of $0.01, or 2%, over the prior year period. The cash dividend will be payable on April 30, 2026 to all shareholders of record on April 16, 2026. This marks 35 consecutive years the Company has increased its annual dividend.
FOURTH QUARTER 2025 YEAR-OVER-YEAR COMPANY HIGHLIGHTS:
- Rental operations revenuesincreased 6% to $170.0 million.
- Sales revenuesincreased 5% to $84.4 million.
- Total revenues increased5% to $256.8 million.
- Income from operations increased 18% to $74.2 million.
- Adjusted EBITDA1 increased 14% to $104.9 million.
- Dividend rate of $0.485 per share for the fourth quarter 2025. On an annualized basis, this dividend represents a 1.7% yield on the February 24, 2026 close price of $114.48 per share.
Joe Hanna, President and CEO of McGrath, made the following comments:
“We were pleased with our strong fourth quarter results. The 5% increase in companywide revenues and 14% increase in Adjusted EBITDA were driven by Mobile Modular and TRS-RenTelco.
Modular rental revenues increased 2% compared to last year, with growth driven by our commercial customer base. We continued to make progress with our long-term modular growth initiatives, Mobile Modular Plus and Site Related Services, and broadening our geographic coverage. Used equipment sales and Site Related Services contributed to higher gross profit for the quarter.
Portable Storage rental revenues grew 3%, benefiting from some incremental seasonal retail business. Commercial construction project activity remained soft, but we are hopeful that market demand conditions for this segment are showing signs of stabilization.
TRS-RenTelco had an impressive quarter, as improved market conditions supported rental revenue growth of 13% over last year and strong used equipment sales. Demand was robust throughout the quarter, with a very modest seasonal slowdown at year end.
I appreciate the deep commitment, engagement and execution from our McGrath team members to deliver solid results for the year despite challenging non-residential construction demand conditions faced by our Modular and Portable Storage businesses. These results demonstrate the resilience of our people and our strategy. I am encouraged by our start to 2026 and confident that our teams are very focused on building on last year’s progress.”
DIVISION HIGHLIGHTS:
All comparisons presented below are for the quarter ended December 31, 2025 to the quarter ended December 31, 2024 unless otherwise indicated.
MOBILE MODULAR
For the fourth quarter of 2025, the Company’s Mobile Modular division reported Adjusted EBITDA of $68.7 million, an increase of $7.7 million, or 13%, when compared to the same quarter in 2024.
- Rental revenues increased 2% to $83.3 million, depreciation expense increased 7% to $11.1 million, and other direct costs increased 3% to $19.1 million, which resulted in a comparable gross profit on rental revenues of $53.1 million.
- Rental related services revenues increased 10% to $35.5 million, primarily attributable to higher site related services and repair revenues, with associated gross profit increasing 23% to $14.2 million.
- Sales revenues decreased 1% to $55.4 million, due to lower new equipment sales, partly offset by higher used equipment sales. Gross margin on sales was 34% in 2025 compared to 26% in 2024, resulting in a 32% increase in gross profit on sales revenues to $18.8 million. The higher gross margin on sales was primarily attributed to a higher mix of used versus new sales during the quarter.
- Selling and administrative expenses decreased $0.6 million to $36.7 million, when compared to the prior year.
PORTABLE STORAGE
For the fourth quarter of 2025, the Company’s Portable Storage division reported Adjusted EBITDA of $9.6 million, a decrease of $0.3 million, or 3%, when compared to the same quarter in 2024.
- Rental revenues increased 3% to $17.3 million, depreciation expense increased 6% to $1.1 million, and other direct costs increased 16% to $1.7 million, which resulted in an increase in gross profit on rental revenues of 2% to $14.5 million.
- Rental related services revenues increased 8% to $4.2 million, primarily attributable to higher delivery and return delivery activities, with gross loss increasing $0.4 million to $0.5 million in 2025.
- Sales revenues increased $0.3 million to $2.1 million, primarily from higher used equipment sales. Gross margin on sales was 37% compared to 36% in 2024, resulting in a 24% increase in gross profit on sales revenues to $0.8 million.
- Selling and administrative expenses increased $0.2 million to $7.6 million, when compared to the prior year.
TRS-RENTELCO
For the fourth quarter of 2025, the Company’s TRS-RenTelco division reported Adjusted EBITDA of $23.1 million, an increase of 21%, when compared to the same quarter in 2024.
- Rental revenues increased 13% to $28.7 million, depreciation expense decreased 4%, and other direct costs increased 22%, resulting in a 26% increase in gross profit on rental revenues to $12.7 million. The rental revenue increase was primarily due to strengthened end markets, resulting in higher average rental equipment on rent and higher average monthly rental rates when compared to the prior year.
- Sales revenues increased 42% to $10.3 million and gross profit on sales revenues increased 58% to $6.6 million.
- Selling and administrative expenses increased 12%, to $7.7 million, when compared to the prior year.
FINANCIAL OUTLOOK:
For the full-year 2026, the Company expects:
|
|
|
2026 Outlook |
2025 Actual |
| • |
Total revenue: |
$945 to $995 million |
$944 million |
| • |
Adjusted EBITDA1, 2: |
$360 to $378 million |
$362 million |
| • |
Gross rental equipment capital expenditures: |
$180 to $200 million |
$143 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, transaction costs and non-operating transactions. 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. |
|
|
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-RenTelcobusiness 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 45 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 35 consecutive years of annual dividend increases to shareholders, a rare distinction among publicly listed companies.
McGrath is 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 January 16, 2026, McGrath RentCorp will host a conference call at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) on February 25, 2026 to discuss the fourth quarter 2025 results. To participate in the teleconference, dial 1-800-274-8461 (in the U.S.), or 1-203-518-9814 (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 1-800-839-5152 (in the U.S.), or 1-402-220-2694 (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, the discussion under the heading “Financial Outlook” and Mr. Hanna’s comments about the commercial construction market project activity showing signs of stabilization and the team’s ability to build upon 2025’s progress, 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: our expectations around continued business momentum entering 2026; the continued impact of tariff actions and macroeconomic factors, including fiscal policy uncertainty, government budgetary constraints, or other political or regulatory developments; health of the education and commercial markets in our modular building division; competition within the modular business; the activity levels in the semiconductor and general purpose and communications test equipment markets at TRS-RenTelco; the activity levels in commercial construction projects and impact on Portable Storage segment; continued execution of our strategic performance improvement initiatives; our ability to successfully increase prices to offset cost increases; our ability to effectively manage our rental assets; and our ability to retain and attract talent and uncertainty associated with the Chief Executive Officer transition, as well as the other factors disclosed under “Risk Factors” in the Company’s 2025 Form 10-K and other SEC filings.
Forward-looking statements are made only as of the date hereof and are based on management’s reasonable assumptions, however these assumptions can be wrong or affected by known or unknown risks and uncertainties. No forward-looking statement can be guaranteed, and subsequent facts or circumstances may contradict, obviate, undermine or otherwise fail to support or substantiate such statements. 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 |
||||||||||||||||
|
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
(in thousands, except per share amounts) |
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||||
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Rental |
|
$ |
129,332 |
|
|
$ |
124,220 |
|
|
$ |
503,918 |
|
|
$ |
489,929 |
|
|
Rental related services |
|
|
40,701 |
|
|
|
36,858 |
|
|
|
161,722 |
|
|
|
148,498 |
|
|
Rental operations |
|
|
170,033 |
|
|
|
161,078 |
|
|
|
665,640 |
|
|
|
638,427 |
|
|
Sales |
|
|
84,437 |
|
|
|
80,298 |
|
|
|
269,196 |
|
|
|
262,290 |
|
|
Other |
|
|
2,290 |
|
|
|
2,370 |
|
|
|
9,399 |
|
|
|
10,225 |
|
|
Total revenues |
|
|
256,760 |
|
|
|
243,746 |
|
|
|
944,235 |
|
|
|
910,942 |
|
|
Costs and Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Direct costs of rental operations: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Depreciation of rental equipment |
|
|
22,138 |
|
|
|
21,755 |
|
|
|
86,937 |
|
|
|
88,267 |
|
|
Rental related services |
|
|
26,814 |
|
|
|
25,204 |
|
|
|
112,026 |
|
|
|
103,419 |
|
|
Other |
|
|
26,830 |
|
|
|
24,931 |
|
|
|
118,309 |
|
|
|
109,116 |
|
|
Total direct costs of rental operations |
|
|
75,782 |
|
|
|
71,890 |
|
|
|
317,272 |
|
|
|
300,802 |
|
|
Costs of sales |
|
|
52,409 |
|
|
|
57,099 |
|
|
|
171,987 |
|
|
|
174,725 |
|
|
Total costs of revenues |
|
|
128,191 |
|
|
|
128,989 |
|
|
|
489,259 |
|
|
|
475,527 |
|
|
Gross profit |
|
|
128,569 |
|
|
|
114,757 |
|
|
|
454,976 |
|
|
|
435,415 |
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Selling and administrative expenses |
|
|
54,401 |
|
|
|
51,669 |
|
|
|
211,353 |
|
|
|
200,432 |
|
|
Other income, net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(9,281 |
) |
|
Income from operations |
|
|
74,168 |
|
|
|
63,088 |
|
|
|
243,623 |
|
|
|
244,264 |
|
|
Interest expense |
|
|
6,492 |
|
|
|
8,858 |
|
|
|
30,622 |
|
|
|
47,241 |
|
|
Foreign currency exchange (gain) loss |
|
|
(26 |
) |
|
|
270 |
|
|
|
(80 |
) |
|
|
215 |
|
|
Gain on merger termination from WillScot Mobile Mini |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(180,000 |
) |
|
WillScot Mobile Mini transaction costs |
|
|
— |
|
|
|
2,002 |
|
|
|
— |
|
|
|
63,159 |
|
|
Income from continuing operations before provision for income taxes |
|
|
67,702 |
|
|
|
51,958 |
|
|
|
213,081 |
|
|
|
313,649 |
|
|
Provision for income taxes from continuing operations |
|
|
17,873 |
|
|
|
13,009 |
|
|
|
56,773 |
|
|
|
81,922 |
|
|
Net income |
|
$ |
49,829 |
|
|
$ |
38,949 |
|
|
$ |
156,308 |
|
|
$ |
231,727 |
|
|
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Basic |
|
$ |
2.02 |
|
|
$ |
1.59 |
|
|
$ |
6.35 |
|
|
$ |
9.44 |
|
|
Diluted |
|
$ |
2.02 |
|
|
$ |
1.58 |
|
|
$ |
6.35 |
|
|
$ |
9.43 |
|
|
Shares used in per share calculation: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Basic |
|
|
24,612 |
|
|
|
24,551 |
|
|
|
24,602 |
|
|
|
24,541 |
|
|
Diluted |
|
|
24,647 |
|
|
|
24,587 |
|
|
|
24,633 |
|
|
|
24,570 |
|
|
Cash dividends declared per share |
|
$ |
0.485 |
|
|
$ |
0.475 |
|
|
$ |
1.94 |
|
|
$ |
1.90 |
|
|
MCGRATH RENTCORP |
||||||||
|
|
|
December 31, |
||||||
|
(in thousands) |
|
2025 |
|
2024 |
||||
|
Assets |
|
|
|
|
|
|
||
|
Cash |
|
$ |
295 |
|
|
$ |
807 |
|
|
Accounts receivable, net of allowance for credit losses of $2,866 at December 31, 2025 and 2024 |
|
|
231,865 |
|
|
|
219,342 |
|
|
Rental equipment, at cost: |
|
|
|
|
|
|
||
|
Relocatable modular buildings |
|
|
1,485,794 |
|
|
|
1,414,367 |
|
|
Portable storage containers |
|
|
245,141 |
|
|
|
240,846 |
|
|
Electronic test equipment |
|
|
337,100 |
|
|
|
343,982 |
|
|
|
|
|
2,068,035 |
|
|
|
1,999,195 |
|
|
Less: accumulated depreciation |
|
|
(647,137 |
) |
|
|
(611,536 |
) |
|
Rental equipment, net |
|
|
1,420,898 |
|
|
|
1,387,659 |
|
|
Property, plant and equipment, net |
|
|
233,492 |
|
|
|
197,439 |
|
|
Inventories |
|
|
8,027 |
|
|
|
14,304 |
|
|
Prepaid expenses and other assets |
|
|
83,351 |
|
|
|
80,477 |
|
|
Intangible assets, net |
|
|
46,605 |
|
|
|
54,332 |
|
|
Goodwill |
|
|
332,584 |
|
|
|
323,224 |
|
|
Total assets |
|
$ |
2,357,117 |
|
|
$ |
2,277,584 |
|
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
||
|
Liabilities: |
|
|
|
|
|
|
||
|
Notes payable |
|
$ |
514,924 |
|
|
$ |
590,208 |
|
|
Accounts payable |
|
|
66,233 |
|
|
|
60,082 |
|
|
Accrued liabilities |
|
|
114,764 |
|
|
|
113,961 |
|
|
Deferred income |
|
|
110,593 |
|
|
|
109,836 |
|
|
Deferred income taxes, net |
|
|
313,580 |
|
|
|
280,129 |
|
|
Total liabilities |
|
|
1,120,094 |
|
|
|
1,154,216 |
|
|
Shareholders’ equity: |
|
|
|
|
|
|
||
|
Common stock, no par value – Authorized 40,000 shares |
|
|
|
|
|
|
||
|
Issued and outstanding – 24,612 shares as of December 31, 2025 and 24,551 shares as of December 31, 2024 |
|
|
121,785 |
|
|
|
116,253 |
|
|
Retained earnings |
|
|
1,115,238 |
|
|
|
1,007,115 |
|
|
Total shareholders’ equity |
|
|
1,237,023 |
|
|
|
1,123,368 |
|
|
Total liabilities and shareholders’ equity |
|
$ |
2,357,117 |
|
|
$ |
2,277,584 |
|
|
|
|
|
|
|
|
|
||
|
MCGRATH RENTCORP |
||||||||
|
|
|
Twelve Months Ended |
||||||
|
(in thousands) |
|
2025 |
|
2024 |
||||
|
Cash Flows from Operating Activities: |
|
|
|
|
|
|
||
|
Net income |
|
$ |
156,308 |
|
|
$ |
231,727 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
||
|
Depreciation and amortization |
|
|
107,069 |
|
|
|
107,455 |
|
|
Deferred income taxes (benefits) |
|
|
33,451 |
|
|
|
38,574 |
|
|
Provision for credit losses |
|
|
1,726 |
|
|
|
1,890 |
|
|
Share-based compensation |
|
|
11,225 |
|
|
|
9,502 |
|
|
Gain on sale of property, plant and equipment |
|
|
— |
|
|
|
(9,281 |
) |
|
Gain on sale of used rental equipment |
|
|
(44,191 |
) |
|
|
(35,085 |
) |
|
Foreign currency exchange (gain) loss |
|
|
(80 |
) |
|
|
215 |
|
|
Amortization of debt issuance costs |
|
|
206 |
|
|
|
66 |
|
|
Change in: |
|
|
|
|
|
|
||
|
Accounts receivable |
|
|
(14,249 |
) |
|
|
6,136 |
|
|
Inventories |
|
|
6,277 |
|
|
|
1,121 |
|
|
Prepaid expenses and other assets |
|
|
(2,873 |
) |
|
|
6,887 |
|
|
Accounts payable |
|
|
(330 |
) |
|
|
11,836 |
|
|
Accrued liabilities |
|
|
816 |
|
|
|
4,924 |
|
|
Deferred income |
|
|
328 |
|
|
|
(1,592 |
) |
|
Net cash provided by operating activities |
|
|
255,683 |
|
|
|
374,375 |
|
|
Cash Flows from Investing Activities: |
|
|
|
|
|
|
||
|
Purchases of rental equipment |
|
|
(142,576 |
) |
|
|
(191,231 |
) |
|
Purchases of property, plant and equipment |
|
|
(44,380 |
) |
|
|
(40,228 |
) |
|
Cash paid for acquisition of businesses |
|
|
(23,785 |
) |
|
|
— |
|
|
Proceeds from sales of used rental equipment |
|
|
83,629 |
|
|
|
68,453 |
|
|
Proceeds from sales of property, plant and equipment |
|
|
— |
|
|
|
12,251 |
|
|
Net cash used in investing activities |
|
|
(127,112 |
) |
|
|
(150,755 |
) |
|
Cash Flows from Financing Activities: |
|
|
|
|
|
|
||
|
Net payments under bank lines of credit |
|
|
(77,490 |
) |
|
|
(172,560 |
) |
|
Principal payment of term note agreement |
|
|
(73,000 |
) |
|
|
— |
|
|
Borrowings under Series G senior notes |
|
|
75,000 |
|
|
|
— |
|
|
Taxes paid related to net share settlement of stock awards |
|
|
(5,693 |
) |
|
|
(4,371 |
) |
|
Payment of dividends |
|
|
(47,900 |
) |
|
|
(46,759 |
) |
|
Net cash used in financing activities |
|
|
(129,083 |
) |
|
|
(223,690 |
) |
|
Net decrease in cash |
|
|
(512 |
) |
|
|
(70 |
) |
|
Cash balance, beginning of period |
|
|
807 |
|
|
|
877 |
|
|
Cash balance, end of period |
|
$ |
295 |
|
|
$ |
807 |
|
|
Supplemental Disclosure of Cash Flow Information: |
|
|
|
|
|
|
||
|
Gain on merger termination, net of transaction costs, presented under net cash provided by operating activities |
|
$ |
— |
|
|
$ |
116,841 |
|
|
Interest paid, during the period |
|
$ |
29,905 |
|
|
$ |
48,324 |
|
|
Net income taxes paid, during the period |
|
$ |
10,116 |
|
|
$ |
36,524 |
|
|
Dividends accrued during the period, not yet paid |
|
$ |
12,749 |
|
|
$ |
12,482 |
|
|
Rental equipment acquisitions, not yet paid |
|
$ |
11,670 |
|
|
$ |
5,393 |
|
|
|
|
|
|
|
|
|
||
|
MCGRATH RENTCORP |
||||||||||||||||||||
|
(dollar amounts in thousands) |
|
Mobile |
|
Portable |
|
TRS- |
|
Enviroplex |
|
Consolidated |
||||||||||
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Rental |
|
|
83,347 |
|
|
|
17,286 |
|
|
|
28,699 |
|
|
|
— |
|
|
|
129,332 |
|
|
Rental related services |
|
|
35,471 |
|
|
|
4,241 |
|
|
|
989 |
|
|
|
— |
|
|
|
40,701 |
|
|
Rental operations |
|
|
118,818 |
|
|
|
21,527 |
|
|
|
29,688 |
|
|
|
— |
|
|
|
170,033 |
|
|
Sales |
|
|
55,359 |
|
|
|
2,131 |
|
|
|
10,310 |
|
|
|
16,637 |
|
|
|
84,437 |
|
|
Other |
|
|
1,576 |
|
|
|
143 |
|
|
|
571 |
|
|
|
— |
|
|
|
2,290 |
|
|
Total revenues |
|
|
175,753 |
|
|
|
23,801 |
|
|
|
40,569 |
|
|
|
16,637 |
|
|
|
256,760 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Costs and Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Direct costs of rental operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Depreciation |
|
|
11,101 |
|
|
|
1,071 |
|
|
|
9,966 |
|
|
|
— |
|
|
|
22,138 |
|
|
Rental related services |
|
|
21,263 |
|
|
|
4,787 |
|
|
|
764 |
|
|
|
— |
|
|
|
26,814 |
|
|
Other |
|
|
19,120 |
|
|
|
1,726 |
|
|
|
5,984 |
|
|
|
— |
|
|
|
26,830 |
|
|
Total direct costs of rental operations |
|
|
51,484 |
|
|
|
7,584 |
|
|
|
16,714 |
|
|
|
— |
|
|
|
75,782 |
|
|
Costs of sales |
|
|
36,575 |
|
|
|
1,333 |
|
|
|
3,709 |
|
|
|
10,792 |
|
|
|
52,409 |
|
|
Total costs of revenues |
|
|
88,059 |
|
|
|
8,917 |
|
|
|
20,423 |
|
|
|
10,792 |
|
|
|
128,191 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Gross Profit (Loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Rental |
|
|
53,126 |
|
|
|
14,489 |
|
|
|
12,749 |
|
|
|
— |
|
|
|
80,364 |
|
|
Rental related services |
|
|
14,208 |
|
|
|
(546 |
) |
|
|
225 |
|
|
|
— |
|
|
|
13,887 |
|
|
Rental operations |
|
|
67,334 |
|
|
|
13,943 |
|
|
|
12,974 |
|
|
|
— |
|
|
|
94,251 |
|
|
Sales |
|
|
18,784 |
|
|
|
798 |
|
|
|
6,601 |
|
|
|
5,845 |
|
|
|
32,028 |
|
|
Other |
|
|
1,576 |
|
|
|
143 |
|
|
|
571 |
|
|
|
— |
|
|
|
2,290 |
|
|
Total gross profit |
|
|
87,694 |
|
|
|
14,884 |
|
|
|
20,146 |
|
|
|
5,845 |
|
|
|
128,569 |
|
|
Selling and administrative expenses |
|
|
36,656 |
|
|
|
7,562 |
|
|
|
7,687 |
|
|
|
2,496 |
|
|
|
54,401 |
|
|
Income from operations |
|
$ |
51,038 |
|
|
$ |
7,322 |
|
|
$ |
12,459 |
|
|
$ |
3,349 |
|
|
$ |
74,168 |
|
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,492 |
|
||||
|
Foreign currency exchange loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(25 |
) |
||||
|
Provision for income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
17,872 |
|
||||
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
49,829 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Other Information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Adjusted EBITDA 1 |
|
$ |
68,684 |
|
|
$ |
9,637 |
|
|
$ |
23,122 |
|
|
$ |
3,453 |
|
|
$ |
104,896 |
|
|
Average rental equipment 2 |
|
$ |
1,352,525 |
|
|
$ |
239,317 |
|
|
$ |
334,719 |
|
|
|
|
|
|
|
||
|
Average monthly total yield 3 |
|
|
2.05 |
% |
|
|
2.41 |
% |
|
|
2.86 |
% |
|
|
|
|
|
|
||
|
Average utilization 4 |
|
|
71.3 |
% |
|
|
61.2 |
% |
|
|
64.5 |
% |
|
|
|
|
|
|
||
|
Average monthly rental rate 5 |
|
|
2.88 |
% |
|
|
3.94 |
% |
|
|
4.43 |
% |
|
|
|
|
|
|
||
|
1. |
Adjusted EBITDA is defined as net income before interest expense, provision for income taxes, depreciation, amortization, non-cash impairment costs, share-based compensation, other income, net and non-operating transactions. |
|
|
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 |
||||||||||||||||||||
|
(dollar amounts in thousands) |
|
Mobile |
|
Portable |
|
TRS- |
|
Enviroplex |
|
Consolidated |
||||||||||
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Rental |
|
|
82,108 |
|
|
|
16,713 |
|
|
|
25,399 |
|
|
|
— |
|
|
|
124,220 |
|
|
Rental related services |
|
|
32,140 |
|
|
|
3,933 |
|
|
|
785 |
|
|
|
— |
|
|
|
36,858 |
|
|
Rental operations |
|
|
114,248 |
|
|
|
20,646 |
|
|
|
26,184 |
|
|
|
— |
|
|
|
161,078 |
|
|
Sales |
|
|
55,983 |
|
|
|
1,806 |
|
|
|
7,270 |
|
|
|
15,239 |
|
|
|
80,298 |
|
|
Other |
|
|
1,598 |
|
|
|
211 |
|
|
|
561 |
|
|
|
— |
|
|
|
2,370 |
|
|
Total revenues |
|
|
171,829 |
|
|
|
22,663 |
|
|
|
34,015 |
|
|
|
15,239 |
|
|
|
243,746 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Costs and Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Direct costs of rental operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Depreciation |
|
|
10,405 |
|
|
|
1,011 |
|
|
|
10,339 |
|
|
|
— |
|
|
|
21,755 |
|
|
Rental related services |
|
|
20,572 |
|
|
|
4,056 |
|
|
|
576 |
|
|
|
— |
|
|
|
25,204 |
|
|
Other |
|
|
18,534 |
|
|
|
1,493 |
|
|
|
4,904 |
|
|
|
— |
|
|
|
24,931 |
|
|
Total direct costs of rental operations |
|
|
49,511 |
|
|
|
6,560 |
|
|
|
15,819 |
|
|
|
— |
|
|
|
71,890 |
|
|
Costs of sales |
|
|
41,705 |
|
|
|
1,161 |
|
|
|
3,080 |
|
|
|
11,153 |
|
|
|
57,099 |
|
|
Total costs of revenues |
|
|
91,216 |
|
|
|
7,721 |
|
|
|
18,899 |
|
|
|
11,153 |
|
|
|
128,989 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Gross Profit (Loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Rental |
|
|
53,169 |
|
|
|
14,209 |
|
|
|
10,156 |
|
|
|
— |
|
|
|
77,534 |
|
|
Rental related services |
|
|
11,568 |
|
|
|
(123 |
) |
|
|
209 |
|
|
|
— |
|
|
|
11,654 |
|
|
Rental operations |
|
|
64,737 |
|
|
|
14,086 |
|
|
|
10,365 |
|
|
|
— |
|
|
|
89,188 |
|
|
Sales |
|
|
14,278 |
|
|
|
645 |
|
|
|
4,190 |
|
|
|
4,086 |
|
|
|
23,199 |
|
|
Other |
|
|
1,598 |
|
|
|
211 |
|
|
|
561 |
|
|
|
— |
|
|
|
2,370 |
|
|
Total gross profit |
|
|
80,613 |
|
|
|
14,942 |
|
|
|
15,116 |
|
|
|
4,086 |
|
|
|
114,757 |
|
|
Selling and administrative expenses |
|
|
35,789 |
|
|
|
7,133 |
|
|
|
6,550 |
|
|
|
2,197 |
|
|
|
51,669 |
|
|
Income from operations |
|
$ |
44,824 |
|
|
$ |
7,809 |
|
|
$ |
8,566 |
|
|
$ |
1,889 |
|
|
$ |
63,088 |
|
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,858 |
|
||||
|
Foreign currency exchange loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
270 |
|
||||
|
WillScot Mobile Mini transaction costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,002 |
|
||||
|
Provision for income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13,009 |
|
||||
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
38,949 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Other Information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Adjusted EBITDA 1 |
|
$ |
60,994 |
|
|
$ |
9,922 |
|
|
$ |
19,099 |
|
|
$ |
1,987 |
|
|
$ |
92,002 |
|
|
Average rental equipment 2 |
|
$ |
1,270,068 |
|
|
$ |
231,332 |
|
|
$ |
349,018 |
|
|
|
|
|
|
|
||
|
Average monthly total yield 3 |
|
|
2.15 |
% |
|
|
2.41 |
% |
|
|
2.43 |
% |
|
|
|
|
|
|
||
|
Average utilization 4 |
|
|
76.0 |
% |
|
|
61.2 |
% |
|
|
59.1 |
% |
|
|
|
|
|
|
||
|
Average monthly rental rate 5 |
|
|
2.84 |
% |
|
|
3.94 |
% |
|
|
4.11 |
% |
|
|
|
|
|
|
||
|
1. |
Adjusted EBITDA is defined as net income before interest expense, provision for income taxes, depreciation, amortization, non-cash impairment costs, share-based compensation, other income, net and non-operating transactions. |
|
|
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 |
||||||||||||||||||||
|
(dollar amounts in thousands) |
|
Mobile |
|
Portable |
|
TRS- |
|
Enviroplex |
|
Consolidated |
||||||||||
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Rental |
|
|
326,919 |
|
|
|
67,593 |
|
|
|
109,406 |
|
|
|
— |
|
|
|
503,918 |
|
|
Rental related services |
|
|
141,662 |
|
|
|
16,453 |
|
|
|
3,607 |
|
|
|
— |
|
|
|
161,722 |
|
|
Rental operations |
|
|
468,581 |
|
|
|
84,046 |
|
|
|
113,013 |
|
|
|
— |
|
|
|
665,640 |
|
|
Sales |
|
|
170,668 |
|
|
|
7,779 |
|
|
|
33,349 |
|
|
|
57,400 |
|
|
|
269,196 |
|
|
Other |
|
|
5,879 |
|
|
|
989 |
|
|
|
2,531 |
|
|
|
— |
|
|
|
9,399 |
|
|
Total revenues |
|
|
645,128 |
|
|
|
92,814 |
|
|
|
148,893 |
|
|
|
57,400 |
|
|
|
944,235 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Costs and Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Direct costs of rental operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Depreciation |
|
|
43,206 |
|
|
|
4,196 |
|
|
|
39,535 |
|
|
|
— |
|
|
|
86,937 |
|
|
Rental related services |
|
|
91,262 |
|
|
|
17,763 |
|
|
|
3,001 |
|
|
|
— |
|
|
|
112,026 |
|
|
Other |
|
|
88,122 |
|
|
|
7,361 |
|
|
|
22,826 |
|
|
|
— |
|
|
|
118,309 |
|
|
Total direct costs of rental operations |
|
|
222,590 |
|
|
|
29,320 |
|
|
|
65,362 |
|
|
|
— |
|
|
|
317,272 |
|
|
Costs of sales |
|
|
113,058 |
|
|
|
4,842 |
|
|
|
15,283 |
|
|
|
38,804 |
|
|
|
171,987 |
|
|
Total costs of revenues |
|
|
335,648 |
|
|
|
34,162 |
|
|
|
80,645 |
|
|
|
38,804 |
|
|
|
489,259 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Gross Profit (Loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Rental |
|
|
195,591 |
|
|
|
56,036 |
|
|
|
47,045 |
|
|
|
— |
|
|
|
298,672 |
|
|
Rental related services |
|
|
50,400 |
|
|
|
(1,310 |
) |
|
|
606 |
|
|
|
— |
|
|
|
49,696 |
|
|
Rental operations |
|
|
245,991 |
|
|
|
54,726 |
|
|
|
47,651 |
|
|
|
— |
|
|
|
348,368 |
|
|
Sales |
|
|
57,610 |
|
|
|
2,937 |
|
|
|
18,066 |
|
|
|
18,596 |
|
|
|
97,209 |
|
|
Other |
|
|
5,879 |
|
|
|
989 |
|
|
|
2,531 |
|
|
|
— |
|
|
|
9,399 |
|
|
Total gross profit |
|
|
309,480 |
|
|
|
58,652 |
|
|
|
68,248 |
|
|
|
18,596 |
|
|
|
454,976 |
|
|
Selling and administrative expenses |
|
|
142,811 |
|
|
|
30,575 |
|
|
|
29,558 |
|
|
|
8,409 |
|
|
|
211,353 |
|
|
Income from operations |
|
$ |
166,669 |
|
|
$ |
28,077 |
|
|
$ |
38,690 |
|
|
$ |
10,187 |
|
|
$ |
243,623 |
|
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30,622 |
|
||||
|
Foreign currency exchange loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(80 |
) |
||||
|
Provision for income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
56,773 |
|
||||
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
156,308 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Other Information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Adjusted EBITDA 1 |
|
$ |
233,955 |
|
|
$ |
37,317 |
|
|
$ |
80,588 |
|
|
$ |
10,603 |
|
|
$ |
362,463 |
|
|
Average rental equipment 2 |
|
$ |
1,316,606 |
|
|
$ |
236,054 |
|
|
$ |
334,407 |
|
|
|
|
|
|
|
||
|
Average monthly total yield 3 |
|
|
2.07 |
% |
|
|
2.39 |
% |
|
|
2.73 |
% |
|
|
|
|
|
|
||
|
Average utilization 4 |
|
|
73.0 |
% |
|
|
60.8 |
% |
|
|
63.8 |
% |
|
|
|
|
|
|
||
|
Average monthly rental rate 5 |
|
|
2.83 |
% |
|
|
3.92 |
% |
|
|
4.27 |
% |
|
|
|
|
|
|
||
|
1. |
Adjusted EBITDA is defined as net income before interest expense, provision for income taxes, depreciation, amortization, non-cash impairment costs, share-based compensation, other income, net and non-operating transactions. |
|
|
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 |
||||||||||||||||||||
|
(dollar amounts in thousands) |
|
Mobile |
|
Portable |
|
TRS- |
|
Enviroplex |
|
Consolidated |
||||||||||
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Rental |
|
|
318,149 |
|
|
|
69,983 |
|
|
|
101,797 |
|
|
|
— |
|
|
|
489,929 |
|
|
Rental related services |
|
|
127,589 |
|
|
|
17,702 |
|
|
|
3,207 |
|
|
|
— |
|
|
|
148,498 |
|
|
Rental operations |
|
|
445,738 |
|
|
|
87,685 |
|
|
|
105,004 |
|
|
|
— |
|
|
|
638,427 |
|
|
Sales |
|
|
183,234 |
|
|
|
5,695 |
|
|
|
27,531 |
|
|
|
45,830 |
|
|
|
262,290 |
|
|
Other |
|
|
6,394 |
|
|
|
1,117 |
|
|
|
2,714 |
|
|
|
— |
|
|
|
10,225 |
|
|
Total revenues |
|
|
635,366 |
|
|
|
94,497 |
|
|
|
135,249 |
|
|
|
45,830 |
|
|
|
910,942 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Costs and Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Direct costs of rental operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Depreciation |
|
|
40,399 |
|
|
|
3,982 |
|
|
|
43,886 |
|
|
|
— |
|
|
|
88,267 |
|
|
Rental related services |
|
|
83,547 |
|
|
|
17,267 |
|
|
|
2,605 |
|
|
|
— |
|
|
|
103,419 |
|
|
Other |
|
|
83,023 |
|
|
|
5,816 |
|
|
|
20,277 |
|
|
|
— |
|
|
|
109,116 |
|
|
Total direct costs of rental operations |
|
|
206,969 |
|
|
|
27,065 |
|
|
|
66,768 |
|
|
|
— |
|
|
|
300,802 |
|
|
Costs of sales |
|
|
124,886 |
|
|
|
3,551 |
|
|
|
12,426 |
|
|
|
33,862 |
|
|
|
174,725 |
|
|
Total costs of revenues |
|
|
331,855 |
|
|
|
30,616 |
|
|
|
79,194 |
|
|
|
33,862 |
|
|
|
475,527 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Gross Profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Rental |
|
|
194,727 |
|
|
|
60,185 |
|
|
|
37,634 |
|
|
|
— |
|
|
|
292,546 |
|
|
Rental related services |
|
|
44,042 |
|
|
|
435 |
|
|
|
602 |
|
|
|
— |
|
|
|
45,079 |
|
|
Rental operations |
|
|
238,769 |
|
|
|
60,620 |
|
|
|
38,236 |
|
|
|
— |
|
|
|
337,625 |
|
|
Sales |
|
|
58,348 |
|
|
|
2,144 |
|
|
|
15,105 |
|
|
|
11,968 |
|
|
|
87,565 |
|
|
Other |
|
|
6,394 |
|
|
|
1,117 |
|
|
|
2,714 |
|
|
|
– |
|
|
|
10,225 |
|
|
Total gross profit |
|
|
303,511 |
|
|
|
63,881 |
|
|
|
56,055 |
|
|
|
11,968 |
|
|
|
435,415 |
|
|
Selling and administrative expenses |
|
|
136,670 |
|
|
|
29,197 |
|
|
|
27,000 |
|
|
|
7,565 |
|
|
|
200,432 |
|
|
Other income, net |
|
|
(6,220 |
) |
|
|
(1,319 |
) |
|
|
(1,742 |
) |
|
|
— |
|
|
|
(9,281 |
) |
|
Income from operations |
|
$ |
173,061 |
|
|
$ |
36,003 |
|
|
$ |
30,797 |
|
|
$ |
4,403 |
|
|
$ |
244,264 |
|
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
47,241 |
|
||||
|
Foreign currency exchange loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
215 |
|
||||
|
Gain on merger termination from WillScot Mobile Mini |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(180,000 |
) |
||||
|
WillScot Mobile Mini transaction costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
63,159 |
|
||||
|
Provision for income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
81,922 |
|
||||
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
231,727 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Other Information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Adjusted EBITDA 1 |
|
$ |
229,160 |
|
|
$ |
43,255 |
|
|
$ |
74,525 |
|
|
$ |
4,785 |
|
|
$ |
351,725 |
|
|
Average rental equipment 2 |
|
$ |
1,221,900 |
|
|
$ |
227,600 |
|
|
$ |
362,558 |
|
|
|
|
|
|
|
||
|
Average monthly total yield 3 |
|
|
2.17 |
% |
|
|
2.56 |
% |
|
|
2.34 |
% |
|
|
|
|
|
|
||
|
Average utilization 4 |
|
|
77.5 |
% |
|
|
64.9 |
% |
|
|
57.3 |
% |
|
|
|
|
|
|
||
|
Average monthly rental rate 5 |
|
|
2.80 |
% |
|
|
3.95 |
% |
|
|
4.08 |
% |
|
|
|
|
|
|
||
|
1. |
Adjusted EBITDA is defined as net income before interest expense, provision for income taxes, depreciation, amortization, non-cash impairment costs, share-based compensation, other income, net and non-operating transactions. |
|
|
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, non-cash impairment costs, share-based compensation, transaction costs, gains on property sales and non-operating transactions. The gain on merger termination from WillScot Mobile Mini was considered a non-operating transaction and is excluded from Adjusted EBITDA. 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 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 and non-recurring transactions, including share-based compensation, transaction costs, gains on property sales and non-operating transactions, 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, transaction costs, gains on property sales and non-operating transactions. 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 |
|
Twelve Months Ended |
||||||||||||
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||||
|
Net income |
$ |
49,829 |
|
|
$ |
38,949 |
|
|
$ |
156,308 |
|
|
$ |
231,727 |
|
|
Provision for income taxes |
|
17,873 |
|
|
|
13,009 |
|
|
|
56,773 |
|
|
|
81,922 |
|
|
Interest expense |
|
6,492 |
|
|
|
8,858 |
|
|
|
30,622 |
|
|
|
47,241 |
|
|
Depreciation and amortization |
|
27,352 |
|
|
|
26,631 |
|
|
|
107,069 |
|
|
|
107,455 |
|
|
EBITDA |
|
101,546 |
|
|
|
87,447 |
|
|
|
350,772 |
|
|
|
468,345 |
|
|
Share-based compensation |
|
3,137 |
|
|
|
2,553 |
|
|
|
11,225 |
|
|
|
9,502 |
|
|
Transaction costs 3 |
|
213 |
|
|
|
2,002 |
|
|
|
466 |
|
|
|
63,159 |
|
|
Other income, net 4 |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(9,281 |
) |
|
Gain on merger termination from WillScot Mobile Mini 5 |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(180,000 |
) |
|
Adjusted EBITDA 1 |
$ |
104,896 |
|
|
$ |
92,002 |
|
|
$ |
362,463 |
|
|
$ |
351,725 |
|
|
Adjusted EBITDA margin 2 |
|
41 |
% |
|
|
38 |
% |
|
|
38 |
% |
|
|
38 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA |
|||||||||||||||
|
(dollar amounts in thousands) |
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||||
|
Net cash provided by operating activities |
$ |
80,918 |
|
|
$ |
36,779 |
|
|
$ |
255,683 |
|
|
$ |
374,375 |
|
|
Change in certain assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Accounts receivable, net |
|
(9,481 |
) |
|
|
(5,187 |
) |
|
|
12,523 |
|
|
|
(8,026 |
) |
|
Inventories, prepaid expenses and other assets |
|
(4,406 |
) |
|
|
13,101 |
|
|
|
(3,404 |
) |
|
|
(6,887 |
) |
|
Accounts payable and accrued liabilities |
|
(4,953 |
) |
|
|
(24,690 |
) |
|
|
13,903 |
|
|
|
(128,981 |
) |
|
Deferred income |
|
20,174 |
|
|
|
14,089 |
|
|
|
(328 |
) |
|
|
1,592 |
|
|
Amortization of debt issuance costs |
|
(2 |
) |
|
|
(60 |
) |
|
|
(206 |
) |
|
|
(66 |
) |
|
Foreign currency exchange gain (loss) |
|
28 |
|
|
|
(266 |
) |
|
|
80 |
|
|
|
(215 |
) |
|
Gain on sale of used rental equipment |
|
14,003 |
|
|
|
9,900 |
|
|
|
44,191 |
|
|
|
35,085 |
|
|
Income taxes paid, net of refunds received |
|
3,579 |
|
|
|
40,350 |
|
|
|
10,116 |
|
|
|
36,524 |
|
|
Interest paid |
|
5,036 |
|
|
|
7,986 |
|
|
|
29,905 |
|
|
|
48,324 |
|
|
Adjusted EBITDA 1 |
$ |
104,896 |
|
|
$ |
92,002 |
|
|
$ |
362,463 |
|
|
$ |
351,725 |
|
|
1. |
Adjusted EBITDA is defined as net income before interest expense, provision for income taxes, depreciation, amortization, non-cash impairment costs, share-based compensation, other income, net and non-operating transactions. Adjusted EBITDA for the twelve months ended December 31, 2023, excludes the gain on sale of discontinued operations from the divestiture of Adler Tanks. |
|
|
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. |
|
|
4. |
Other income, net consists of net gains on property, plant and equipment sales that are infrequent in nature and excluded from Adjusted EBITDA. |
|
|
5. |
The gain on merger termination from WillScot Mobile Mini was considered a non-operating transaction and is excluded from Adjusted EBITDA. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20260225248756/en/
Keith E. Pratt
EVP & Chief Financial Officer
925-606-9200
KEYWORDS: California United States North America
INDUSTRY KEYWORDS: Environment Commercial Building & Real Estate Technology Construction & Property Other Retail Sustainability Hardware Retail Other Construction & Property
MEDIA:
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 |