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Jun 30, 2023

McGrath RentCorp Q2 2023 Earnings Report

McGrath RentCorp's Q2 2023 financial performance reflected strong revenue growth and profitability.

Key Takeaways

McGrath RentCorp reported a 32% increase in total revenues, reaching $203.0 million for the quarter ended June 30, 2023. Net income from continuing operations was $28.0 million, or $1.14 per diluted share, compared to $23.5 million, or $0.96 per diluted share, for the same period in 2022. The company's modular segment drove the rental revenue growth, supported by recent acquisitions.

Total revenues increased by 32% year-over-year, reaching $203.0 million.

Rental revenues grew by 24% to $117.8 million, driven by strong modular segment performance.

Net income from continuing operations increased to $28.0 million, or $1.14 per diluted share.

The company is making progress with the strategic transformation of its business portfolio, including the Adler divestiture and Vesta integration.

Total Revenue
$203M
Previous year: $177M
+14.7%
EPS
$1.14
Previous year: $1.07
+6.5%
Mobile Modular Utilization
79.1%
TRS-RenTelco Utilization
58.2%
Previous year: 645%
-91.0%
Mobile Modular Rental Rate
2.84%
Gross Profit
$94.6M
Previous year: $77.8M
+21.5%
Cash and Equivalents
$2.21M
Previous year: $874K
+152.3%
Free Cash Flow
$31.4M
Previous year: $29.1M
+7.7%
Total Assets
$2.11B
Previous year: $1.65B
+28.2%

McGrath RentCorp

McGrath RentCorp

McGrath RentCorp Revenue by Segment

Forward Guidance

The Company is revising its financial outlook for the full year 2023. Total revenue is expected to be $805 to $830 million and Adjusted EBITDA is expected to be $306 to $320 million. Gross rental equipment capital expenditures are expected to be $190 to $200 million.

Positive Outlook

  • Total revenue: $805 to $830 million
  • Adjusted EBITDA: $306 to $320 million
  • Gross rental equipment capital expenditures: $190 to $200 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income