Business-to-business rental company McGrath RentCorp increased year-on-year rental revenues for the second quarter by 2% despite almost unchanged total income of $96 million (€87 million) and a 4% drop in adjusted EBITDA.
The US-based company also forecast full-year rental revenue rental growth between 2% and 5%, despite a projected 20% drop in sales revenues overall.
Second quarter rental revenues from its mobile modular division were up by 22%, whereas the electronics division dropped by 10% and income from Adler Tank Rentals was down 5%.
Altogether, rental operations contributed $84.5 million (€76.3 million) for the second quarter, compared to $81 million (€73.2 million) in 2014. For the half-year, revenues were $165 million (€149 million) against $157 million (€142 million) 12 months previously.
President and CEO Dennis Kakures said: “In the past few years, we have been through a significant investment cycle in the company. During this period, we launched our portable storage business, expanded our modular business , entered the liquid and solid containment rental industry through the acquisition of Adler Tank Rentals and created a national footprint for the business.
“As both a business manager and an investor in McGrath RentCorp, I can fully appreciate the challenges associated with getting four different rental businesses all performing at favourable levels consistently. We are well on our way to creating four large rental businesses with collectively materially greater annual earnings horsepower than we have experienced to date.
“Twenty-one consecutive quarters of year over year rental revenue growth should be a clear beacon of what we are building over time.”