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Mar 31, 2023
McGrath RentCorp Q1 2023 Earnings Report
McGrath RentCorp's Q1 2023 results were announced, featuring revenue growth and strategic business activities.
Key Takeaways
McGrath RentCorp reported a 19% increase in total revenues, reaching $173.2 million for the quarter ended March 31, 2023. Net income stood at $71.7 million, or $2.92 per diluted share, significantly higher than the previous year, boosted by a net gain on the sale of the Adler Tanks business. The company's continuing operations saw a 31% increase in total revenues, amounting to $163.7 million.
Total revenues increased by 19% year-over-year, reaching $173.2 million.
Net income was reported at $71.7 million, or $2.92 per diluted share, driven by the sale of Adler Tanks.
Rental revenues from continuing operations increased by 22% to $110.2 million.
Mobile Modular division reported a 32% increase in rental revenues, supported by the acquisition of Vesta Modular.
Revenue by Segment
Forward Guidance
McGrath RentCorp raised its financial outlook for the full year 2023 based on year-to-date results and current expectations.
Positive Outlook
- Total revenue is expected to be between $790 million and $820 million.
- Adjusted EBITDA is projected to be in the range of $300 million to $315 million.
- The company anticipates healthy demand pipelines in the modular business.
- Initiatives to grow modular sales have shown progress.
- The company is focused on disciplined operational execution to maximize market opportunities.
Challenges Ahead
- Unforeseen liabilities and integration challenges may arise from the Vesta and Brekke Storage acquisitions.
- Activity levels in the general purpose and communications test equipment markets at TRS-RenTelco could experience fluctuations.
- The company's ability to successfully increase prices may be challenged by cost increases.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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