McGrath Rentp(MGRC) - 2024 Q4 - Annual Results

Financial Performance - Total revenues from continuing operations for Q4 2024 were $243.7 million, a 10% increase compared to Q4 2023[1] - Net income from continuing operations for Q4 2024 was $38.9 million, or $1.58 per diluted share, up from $32.0 million, or $1.30 per diluted share in Q4 2023[1] - For the full year 2024, total revenues increased to $910.9 million, a 10% rise from $831.8 million in 2023[2] - Adjusted EBITDA for the full year 2024 was $351.7 million, reflecting a $33.4 million increase, or 10%[2] - Total revenues for the twelve months ended December 31, 2024, increased to $910,942,000, up 9.5% from $831,842,000 in 2023[22] - Gross profit for the twelve months ended December 31, 2024, was $435,415,000, representing a 10.6% increase compared to $393,633,000 in 2023[22] - Net income for the twelve months ended December 31, 2024, rose to $231,727,000, a 32.7% increase from $174,621,000 in 2023[22] - Earnings per share from continuing operations for the twelve months ended December 31, 2024, was $9.44, compared to $4.57 in 2023, reflecting a 106.4% increase[22] - Total revenues for Q4 2024 reached $243.746 million, a 9.9% increase from $221.706 million in Q4 2023[30] - Adjusted EBITDA for Q4 2024 was $92.002 million, compared to $87.869 million in Q4 2023, indicating a 4.8% increase[30] - Total gross profit for Q4 2024 was $114.757 million, up from $110.122 million in Q4 2023, representing a growth of 4.8%[30] Cash Flow and Dividends - Cash flows from operating activities for the twelve months ended December 31, 2024, amounted to $374,375,000, significantly up from $95,343,000 in 2023[26] - The Company declared a cash dividend of $0.485 per share for Q1 2025, a 2% increase from the prior year[3] - Cash dividends declared per share increased to $1.90 for the twelve months ended December 31, 2024, compared to $1.86 in 2023[22] - Net cash provided by operating activities for Q4 2024 was $36,779,000, a significant recovery from a cash used of $(23,560,000) in Q4 2023[45] Assets and Liabilities - Total assets as of December 31, 2024, were $2,277,584,000, an increase from $2,217,283,000 in 2023[24] - Total liabilities decreased to $1,154,216,000 as of December 31, 2024, down from $1,283,481,000 in 2023[24] Operational Metrics - Average utilization rate improved to 76.0% in Q4 2024, compared to 79.7% in Q4 2023[30] - Rental revenues increased to $124.220 million in Q4 2024, up from $123.563 million in Q4 2023, reflecting a growth of 0.5%[30] - Average monthly total yield for Q4 2024 was 2.15%, slightly down from 2.19% in Q4 2023[30] - The average monthly total yield for rental operations was 2.34% in 2024, slightly down from 2.43% in 2023[33][36] - Average utilization rates for rental equipment were 77.5% in 2024, compared to 79.7% in 2023, showing a decline of 2.2 percentage points[33][36] Expenses and Costs - Selling and administrative expenses for Q4 2024 totaled $51.669 million, compared to $54.506 million in Q4 2023, a decrease of 5.4%[30] - Interest expense for Q4 2024 was $8.858 million, compared to $12.126 million in Q4 2023, reflecting a reduction of 26.5%[30] - The company incurred interest expenses of $47,241,000 in 2024, compared to $40,560,000 in 2023, marking an increase of about 16.6%[33][36] - The company incurred transaction costs of $2,002,000 in Q4 2024, up from $1,575,000 in Q4 2023[42] Future Outlook - For full-year 2025, the Company expects total revenue between $920 million and $970 million[15] - The Company anticipates Adjusted EBITDA for 2025 to be between $345 million and $360 million[15] - The company plans to continue expanding its rental operations and investing in new rental equipment to support growth[22] Other Notable Items - The company reported a gain on merger termination of $116,841,000, contributing positively to operating activities[26] - The company reported a foreign currency exchange loss of $270,000 in Q4 2024, compared to a gain of $144,000 in Q4 2023[30] - The gain on sale of used rental equipment was $9,900,000 in Q4 2024, compared to $8,678,000 in Q4 2023, showing an increase of 14.1%[45]