McGrath RentCorp (NASDAQ: MGRC) (the “Company”), a diversified business to business rental company, today announced revenues for the quarter ended September 30, 2011 of $105.0 million, an increase of 26%, compared to $83.2 million in the third quarter of 2010. The Company reported net income of $15.4 million, or $0.62 per diluted share for the third quarter of 2011, compared to net income of $9.7 million, or $0.40 per diluted share, in the third quarter of 2010.
Dennis Kakures, President and CEO of McGrath RentCorp, made the following comments regarding these results and future expectations:
“Our Company-wide 16% increase in rental revenues for the quarter from a year ago reflects very favorable business activity and rental revenue increases in both our tank rental and electronics businesses. These very positive results were partly offset by our modular business rental revenues declining by 4% for the same comparative period. This is our sixth consecutive quarter over quarter increase in rental revenues coming out of the Great Recession.
Our tank and box division rental revenues increased 60% to $16.1 million for the quarter, from $10.0 million a year ago. The strong increase in rental revenues was directly related to higher business activity levels and continued expansion of Adler’s rental equipment inventory. Income from operations was up 87% from a year ago to $9.5 million, as the business further leveraged existing employee and facility infrastructure, and also benefited from its base of longer term rentals.
Our electronics division rental revenues for the quarter increased by $3.0 million, or 14%, to $24.8 million from a year ago. Income from operations increased by $1.7 million, or 26%, to $8.2 million. In addition to higher rental revenues, our electronics business also benefited from higher gross profit on equipment sales and lower depreciation and laboratory costs as a percentage of rental revenues from a year ago.