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Rental Revenues Increase 2% EPS Decreases 4% to $0.45 for the Quarter Company Announces 2% Dividend Increase
LIVERMORE, Calif., Feb. 27, 2014 (GLOBE NEWSWIRE) -- McGrath RentCorp (Nasdaq:MGRC) (the "Company"), a diversified business to business rental company, today announced revenues for the quarter ended December 31, 2013 of $94.6 million, a decrease of 7%, compared to $102.0 million in the fourth quarter of 2012. The Company reported net income of $11.8 million, or $0.45 per diluted share for the fourth quarter of 2013, compared to net income of $11.9 million, or $0.47 per diluted share, in the fourth quarter of 2012.
Total revenues for the year ended December 31, 2013 were $379.3 million, compared to $364.1 million in 2012. Rental revenues increased 3% to $255.8 million in 2013, compared to $248.4 million in 2012. Net income for the year ended December 31, 2013 decreased 3% to $43.4 million, compared to net income of $44.8 million in the prior year. Diluted earnings per share decreased 6% to $1.67 in 2013 from $1.78 in 2012.
The Company also announced that the board of directors declared a quarterly cash dividend of $0.245 per share for the quarter ending March 31, 2014, an increase of 2% over the prior year period. On an annualized basis, the 2014 dividend represents a 2.7% yield, based on the February 26, 2014 closing stock price. The cash dividend will be payable on April 30, 2014 to all shareholders of record on April 16, 2014.
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 last year's fourth quarter, we continue to be pleased with the underlying business activity levels and rental revenue growth outlook in our rental business portfolio.