McGrath RentCorp (NASDAQ: MGRC) (the “Company”), a diversified business to business rental company, today announced revenues for the quarter ended December 31, 2011 of $85.2 million, an increase of 7%, compared to $79.9 million in the fourth quarter of 2010. The Company reported net income of $13.2 million, or $0.53 per diluted share for the fourth quarter of 2011, compared to net income of $12.7 million, or $0.52 per diluted share, in the fourth quarter of 2010.
Total revenues for the year ended December 31, 2011 were $342.7 million, compared to $291.4 million in 2010. Rental revenues increased 17% to $234.9 million in 2011 compared to $200.6 million in 2010. Net income for the year ended December 31, 2011 increased 36% to $49.6 million, compared to net income of $36.5 million in the prior year. Diluted earnings per share increased 33% to $2.00 in 2011 from $1.50 in 2010.
The Company also announced that the board of directors declared a quarterly cash dividend of $0.235 per share for the quarter ending March 31, 2012, an increase of 2% over the prior year period. On an annualized basis, the 2012 dividend represents a 2.9% yield, based on the February 28, 2012 closing stock price. The cash dividend will be payable on April 30, 2012 to all shareholders of record on April 16, 2012.
Dennis Kakures, President and CEO of McGrath RentCorp, made the following comments regarding these results and future expectations:
“Our Company-wide 14% increase in rental revenues for the quarter from a year ago reflects very favorable business activity and rental revenue increases in both our tank and electronics rental businesses.
Our tank and box division rental revenues increased 46% to $17.2 million for the quarter, from $11.7 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 63% from a year ago to $9.6 million, as the business further leveraged existing employee and facility infrastructure, and also benefited from its base of longer term rentals.