McGrath RentCorp (MGRC) Reports 40% Revenue Increase in Q3 2023
McGrath RentCorp (NASDAQ:MGRC) reports a 40% increase in total revenues from continuing operations for Q3 2023, amounting to $243.5 million.
The company's net income from continuing operations for Q3 2023 was $40.4 million, or $1.65 per diluted share, compared to $27.1 million, or $1.11 per diluted share, for the same period in 2022.
Rental revenues increased by 22% to $122.7 million.
Adjusted EBITDA increased by 47% to $95.3 million.
McGrath RentCorp (NASDAQ:MGRC), a leading business-to-business rental company in North America, announced its Q3 2023 earnings on October 26, 2023. The company reported a significant increase in total revenues from continuing operations, reaching $243.5 million, a 40% increase compared to the third quarter of 2022. The net income from continuing operations was $40.4 million, or $1.65 per diluted share, compared to $27.1 million, or $1.11 per diluted share, for the same period in 2022.
Financial Highlights
The company's rental revenues increased by 22% to $122.7 million. Total revenues increased by 40% to $243.5 million. Other income for Q3 2023 includes a $3.6 million net gain on the sale of two properties, which increased earnings per diluted share by $0.11. Adjusted EBITDA increased by 47% to $95.3 million. The dividend rate for Q3 2023 was $0.465 per share. On an annualized basis, this dividend represents a 1.9% yield on the October 25, 2023 closing price of $97.06 per share.
CEO Commentary
We were very pleased with our third quarter results. Our 22% increase in companywide rental revenues was driven by strong modular segment performance. Modular rental revenues grew 36%, with over half of the growth attributable to our Vesta Modular and several smaller Portable Storage acquisitions completed earlier this year. Before acquisitions, the modular segment rental revenues grew organically by a robust 13%. We are very pleased with our year-to-date performance, and we are fully focused on solid execution for the remainder of the year. - Joe Hanna, President and CEO of McGrath
Division Highlights
The Mobile Modular division reported Adjusted EBITDA of $73.0 million, an increase of 83%. Rental revenues increased 36% to $94.0 million. The TRS-RenTelco division reported Adjusted EBITDA of $21.9 million, a decrease of 9%. Rental revenues decreased 10% to $28.7 million.
Financial Outlook
Based on the company's year-to-date results and current outlook for the remainder of the year, McGrath RentCorp (NASDAQ:MGRC) is revising its financial outlook. For the full-year 2023, the company expects total revenue to be between $820 to $830 million and Adjusted EBITDA to be between $312 to $320 million.
Explore the complete 8-K earnings release (here) from McGrath RentCorp for further details.
This article first appeared on GuruFocus.
