McGrath RentCorp reports strong growth
By Belinda Smart01 March 2022
US company McGrath RentCorp has announced total revenues for the quarter ended December 31, 2021 of $175.9 million, an increase of 18%, compared to the fourth quarter of 2020; supporting predictions of strong growth for its Mobile Modular accommodation division.
The company confirmed its strategic priorities for the next few years will be focused on its modular accommodation business.
Rental revenues increased 20% year-over-year to $106.1 million in the fourth quarter of 2021, from total revenues that increased 18% year-over-year to $175.9 million.
“We are encouraged by the positive rental demand trends since the start of the year,” the company said in a statement.
“Year to date new order bookings at Mobile Modular are up significantly from a year ago. We are well positioned to continue growing this business as demand conditions continue to strengthen.”
Total revenues for the year ended December 31, 2021 increased to $616.8 million from $572.6 million in 2020, with adjusted EBITDA increasing $5.6 million, or 2%, to $246.6 million.
Joe Hanna, President and CEO of McGrath RentCorp, said; “We were pleased with our fourth quarter results. Improved end market conditions in each of our three rental business segments enabled us to deliver a 20% increase in companywide rental revenues in the fourth quarter, compared to the prior year.
“Modular rental revenues grew 29%, with approximately three quarters of the growth attributable to our Design Space and Kitchens To Go acquisitions.
Rental revenues at TRS-RenTelco and Adler Tanks grew 4% and 19%, respectively. We were also pleased with the high volume of modular new equipment sales during the quarter, as some previously delayed projects were completed by year end.
“2021 was a year of strategic growth investments, with particular emphasis on the modular acquisitions. We expanded our geographic coverage, added new customers and welcomed new team members.
“With the major integration steps now complete we are very focused on revenue and profit growth, as reflected by our 12% adjusted EBITDA growth in the fourth quarter.
“We are encouraged by the positive rental demand trends since the start of the year. Year to date new order bookings at Mobile Modular are up significantly from a year ago. We are well positioned to continue growing this business as demand conditions continue to strengthen.
Hanna said the company’s strategic priorities for the next few years were focused on its modular business.
“We see significant opportunities to further expand our geographic coverage and to broaden the value we bring to customers with rental solutions, site related services and new modular equipment sales.
“As we demonstrated in 2021, we expect to utilize a disciplined combination of organic investments and acquisitions to deploy growth capital and accelerate these priorities.”
In January, the company acquired Texas based company Titan, adding to its Mobile Modular division. Last year it acquired Design Space Modular Buildings.