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Net income up 1%EPS decreases 4% to $0.48 for the Quarter
LIVERMORE, Calif., Oct. 30, 2013 (GLOBE NEWSWIRE) -- McGrath RentCorp (Nasdaq:MGRC) (the "Company"), a diversified business to business rental company, today announced revenues for the quarter ended September 30, 2013 of $108.9 million, an increase of 10%, compared to $99.4 million in the third quarter of 2012. The Company reported net income of $12.6 million, or $0.48 per diluted share for the third quarter of 2013, compared to net income of $12.5 million, or $0.50 per diluted share, in the third quarter of 2012.
Dennis Kakures, President and CEO of McGrath RentCorp, made the following comments regarding these results and future expectations:
"Although we are disappointed that Company-wide net income was relatively flat and EPS down 4% from a year ago, we are pleased with the underlying favorable business activity levels and momentum we are seeing overall in our rental business portfolio. A higher fully diluted share count from a year ago led to the $0.02 reduction in EPS.
Rental revenues at Adler Tank Rentals, our tank and box division, increased by $2.3 million, or 13%, to $19.1 million from a year ago. New business activity as measured by first month's rent and units booked continued favorably with increases of 20% and 26%, respectively, from the same period a year ago. With an increasing mix of non-fracking related rentals, we are seeing shorter average rental terms and a greater churn of rental equipment which has put downward pressure on utilization. Average utilization was 66.8% for the quarter compared to 68.9% in 2012; however average equipment on rent was $179.4 million during the quarter compared to $159.8 million a year ago. This is reflective of our need to continue to acquire a variety of tanks and boxes, other than 21K standard frack tanks, to support non-fracking end markets. In fact, during the third quarter, non-fracking related rental revenues increased by 24% to 88% of our rental revenue mix from 81% for the same period in 2012.