McGrath Rentp(US:MGRC)2025-04-24 20:00Financial Performance - Consolidated revenues for Q1 2025 increased by $7.6 million, or 4%, to $195.4 million compared to $187.8 million in Q1 2024[69] - Consolidated net income for Q1 2025 rose by $5.4 million, or 23%, to $28.2 million from $22.8 million in Q1 2024, with earnings per diluted share increasing 23% to $1.15[69] - Gross profit for Q1 2025 increased by $3.2 million, or 3%, to $96.4 million, with Mobile Modular's gross profit rising by $3.6 million, or 6%[70] - Adjusted EBITDA for Q1 2025 increased by $2.4 million, or 3%, to $74.5 million[70] - Total gross profit for the three months ended March 31, 2025, increased by $1.0 million, or 7%, to $14.9 million[94] Revenue Breakdown - Mobile Modular's total revenues increased by $4.3 million, or 3%, to $131.9 million in Q1 2025, primarily due to higher rental-related services and rental revenues[71] - Total revenues for Mobile Modular increased by $4.3 million, or 3%, to $131.9 million for the three months ended March 31, 2025, compared to $127.6 million in 2024[73] - Rental related services revenues rose by $5.3 million, or 22%, primarily due to higher delivery and site related services[78] - Portable Storage's total revenues decreased by $3.5 million, or 14%, to $21.3 million for the three months ended March 31, 2025[79] Expenses and Profitability - Selling and administrative expenses increased by 1% to $50.9 million in Q1 2025[70] - Selling and administrative expenses for Portable Storage decreased by $0.3 million, or 3%, to $7.6 million[85] - Rental revenues decreased by $2.3 million, or 13%, due to 10% lower average rental equipment on rent and 3% lower average monthly rental rates, resulting in a gross profit decrease of $2.5 million, or 15%, to $13.5 million in 2025[86] - Average monthly total yield for Portable Storage decreased by 16% to 2.30%[81] Cash Flow and Financing - Net cash provided by operating activities was $53.9 million for the three months ended March 31, 2025, down from $59.4 million in the same period of 2024, representing a decrease of approximately 9.2%[106] - Net cash used in investing activities decreased significantly to $2.7 million in 2025 from $78.1 million in 2024, a reduction of approximately 96.5%[107] - Net cash used in financing activities was $48.6 million in 2025, compared to $19.7 million in net cash provided during 2024, indicating a change of $68.3 million[109] Debt and Compliance - The Company had $650.0 million in unsecured revolving credit facilities, with $311.5 million outstanding and an additional borrowing capacity of $338.5 million as of March 31, 2025[114] - The Company issued $75.0 million of 6.25% Series F Senior Notes, maturing on September 27, 2030, to fulfill tax obligations from a divestiture[119] - The principal balance outstanding under the Series E Senior Notes was $60.0 million as of March 31, 2025[123] - The Company was in compliance with all financial covenants as of March 31, 2025, with no anticipated trends indicating non-compliance[125] Market and Risk Factors - There were no material changes in the Company's market risk exposures from those reported in the 2024 Annual Report[129] - There were no material changes in critical accounting estimates during the three-month period ended March 31, 2025[128] - Contractual obligations and commitments have not changed materially from those included in the 2024 Annual Report[127]