McGrath RentCorp (NASDAQ: MGRC), a diversified business to business rental company, today announced revenues for the quarter ended June 30, 2010, of $66.5 million, which was comparable to the second quarter of 2009. The Company reported net income of $7.4 million, or $0.31 per diluted share for the second quarter 2010, compared to net income of $7.0 million, or $0.30 per diluted share, in the second quarter 2009.
Dennis Kakures, President and CEO of McGrath RentCorp, made the following comments regarding these results and future expectations:
“Our Company-wide quarter over quarter 6% increase in rental revenues reflects very strong business activity levels and rental revenue increases in both our electronics and tank rental businesses. Those very positive results were largely offset by our modular rental business that, although stabilized, is off significantly from a year ago.
For our electronics division, rental revenues for the period increased by $2.0 million, or 11% to $19.8 million from a year ago. However, income from operations nearly tripled to $4.0 million from 2009’s level. In addition to the higher rental revenue levels, our electronics business also benefited from lower depreciation expense and higher gross profit on equipment sales quarter over quarter. We would expect the much improved market conditions today from a year ago to favorably influence our rental revenue results for our electronics division during the second half of 2010.
Our tank rental business more than doubled rental revenues to $7.6 million from a year ago. The strong increase in rental revenues was directly related to higher business activity levels, supported by the addition of new branch locations, a larger sales force and expanding Adler’s rental equipment inventory. Quarter over quarter income from operations was up over four-fold to $3.0 million as prior quarter new employee and other start-up investments to ramp the Adler business began to payoff.