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McGrath RentCorp (NASDAQ:MGRC) (the “Company”), a diversified business to business rental company, today announced revenues for the quarter ended December 31, 2010, of $79.9 million, an increase of 20%, compared to $66.5 million in the fourth quarter of 2009. The Company reported net income of $12.7 million, or $0.52 per diluted share for the fourth quarter of 2010, compared to net income of $8.9 million, or $0.37 per diluted share, in the fourth quarter of 2009.
Total revenues for the year ended December 31, 2010, were $291.4 million, compared to $275.6 million in 2009. Rental revenues increased 8% to $200.6 million in 2010 compared to $186.4 million in 2009. Net income for the year ended December 31, 2010 increased 9% to $36.5 million, compared to net income of $33.3 million in the prior year. Diluted earnings per share increased 7% to $1.50 in 2010 from $1.40 in 2009.
The Company also announced that the board of directors declared a quarterly cash dividend of $0.23 per share for the quarter ending March 31, 2011, an increase of 2% over the prior year period. On an annualized basis, the 2011 dividend represents a 3.6% yield based on the February 22, 2011 closing stock price. The cash dividend will be payable on April 29, 2011 to all shareholders of record on April 15, 2011.
Dennis Kakures, President and CEO of McGrath RentCorp, made the following comments regarding these results and future expectations:
“Our Company-wide 17% increase in rental revenues for the quarter from a year ago reflects very favorable business activity and rental revenue increases in both our electronics and tank rental businesses. These very positive results were partly offset by our modular business rental revenues declining by 3% for the same comparative period; however modular rental revenues were relatively flat from the third quarter 2010.