- Debt decreased $4.4 million during the quarter to $292.1 million, with the Company’s funded debt (notes payable) to equity ratio decreasing from 0.89 to 1 at December 31, 2011 to 0.85 to 1 at March 31, 2012. As of March 31, 2012, the Company had capacity to borrow an additional $162.9 million under its lines of credit.
- Dividend rate increased 2% to $0.235 per share for the first quarter 2012 compared to the first quarter 2011. On an annualized basis, this dividend represents a 3.2% yield on the May 2, 2012 close price of $29.28.
- Adjusted EBITDA increased 7% to $37.0 million for the first quarter of 2012. At March 31, 2012, the Company’s ratio of funded debt to the last twelve months actual Adjusted EBITDA was 1.78 to 1 compared to 1.84 to 1 at December 31, 2011. Adjusted EBITDA is defined as net income before interest expense, provision for income taxes, depreciation, amortization and other non-cash stock-based compensation. A reconciliation of net income to Adjusted EBITDA and Adjusted EBITDA to net cash provided by operating activities can be found at the end of this release.
You should read this press release in conjunction with the financial statements and notes thereto included in the Company’s latest Forms 10-K and 10-Q and other SEC filings. You can visit the Company’s web site at www.mgrc.com to access information on McGrath RentCorp, including the latest Forms 10-K and 10-Q and other SEC filings.
The Company reconfirms its expectation that its 2012 full-year earnings per share will be in a range of $2.02 to $2.12 per diluted share. Such a forward-looking statement reflects McGrath RentCorp’s expectations as of May 3, 2012. Actual 2012 full-year earnings per share results may be materially different than the Company’s expectations since they are affected by many factors, including those factors outlined in the “forward-looking statements” paragraph at the end of this press release.