McGrath RentCorp’s total revenues jumped by 21% to US$173.6 million in the third quarter of 2019, helped by a rise in rental revenues. These results follow a strong performance reported earlier in the year.
The US-based company’s rental revenues rose by 11% to $91 million, compared to the equivalent quarter in 2018, and revenues from rental related services were up 29% to $31 million.
Net income rose to $33 million – from $25 million in the third quarter of 2018 – and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) increased by 24% to $71 million.
Joe Hanna, President and CEO of McGrath RentCorp, said, “The third quarter underscored the benefit of our diverse portfolio.”
Rental revenues in the Mobile Modular division increased by 13% to $47 million, and revenues from rental related services grew by 39% to $22.6 million.
For the TRS-RenTelco division, which specialises in electronic test equipment, rental revenues increased by 21% to $27 million.
However, for the Adler Tanks division, rental revenues dropped by 8% to $17 million, though revenues from rental related services increased by 7% to just over $7 million.
“Our portfolio enabled us to deliver strong top line and operating profit growth despite softness in one of our businesses,” said Hanna, “We remain positive about our overall momentum entering the fourth quarter.
“Despite some economic uncertainty, many fundamentals remain healthy and our activity levels are good.”
Based on its results for the year to date and its outlook for the rest of the year, the company has raised its financial outlook and now expects total operating profit for 2019 to increase by between 15 and 19% compared to 2018, as opposed to the 9 to 14% increase previously forecast.