Company profile

Ticker
MGRC
Exchange
Website
CEO
Joseph F. Hanna
Employees
Incorporated in
Location
Fiscal year end
SEC CIK
IRS number
942579843

MGRC stock data

(
)

Calendar

29 Apr 20
8 Jul 20
31 Dec 20

News

Company financial data Financial data

Quarter (USD) Mar 20 Dec 19 Sep 19 Jun 19
Revenue 129.45M 147.22M 173.56M 127.44M
Net income 20.16M 26.4M 32.47M 19.49M
Diluted EPS 0.81 1.07 1.32 0.79
Net profit margin 15.57% 17.93% 18.71% 15.29%
Operating income 29.7M 38.25M 46.75M 29.07M
Net change in cash -2M 52K 794K 54K
Cash on hand 342K 2.34M 2.29M 1.5M
Cost of revenue 67.8M 76.22M 95.28M 67.56M
Annual (USD) Dec 19 Dec 18 Dec 17 Dec 16
Revenue 570.23M 498.33M 462.03M 424.08M
Net income 96.81M 79.41M 153.92M 38.25M
Diluted EPS 3.93 3.24 6.34 1.6
Net profit margin 16.98% 15.93% 33.31% 9.02%
Operating income 141.37M 117.48M 94.74M 79.26M
Net change in cash 834K -993K 1.65M -251K
Cash on hand 2.34M 1.51M 2.5M 852K
Cost of revenue 304.07M 265.08M 255.69M 239.91M

Financial data from company earnings reports

Date Owner Security Transaction Code 10b5-1 $Price #Shares $Value #Remaining
29 May 20 Tara Wescott RSU Common Stock Grant Aquire A No 0 2,870 0 2,870
30 Apr 20 Melodie Craft Common Stock Payment of exercise Dispose F No 54.55 83 4.53K 677
30 Apr 20 Melodie Craft Common Stock Option exercise Aquire M No 0 340 0 760
30 Apr 20 Melodie Craft RSU Common Stock Option exercise Dispose M No 0 340 0 1,020
1 Apr 20 William J Dawson Common Stock Option exercise Aquire M No 0 2,000 0 18,100
1 Apr 20 William J Dawson RSU Common Stock Option exercise Dispose M No 0 2,000 0 0
1 Apr 20 Dennis P Stradford Common Stock Option exercise Aquire M No 0 2,000 0 7,000
1 Apr 20 Dennis P Stradford RSU Common Stock Option exercise Dispose M No 0 2,000 0 0
83.5% owned by funds/institutions
13F holders
Current Prev Q Change
Total holders 193 199 -3.0%
Opened positions 25 35 -28.6%
Closed positions 31 11 +181.8%
Increased positions 56 63 -11.1%
Reduced positions 80 75 +6.7%
13F shares
Current Prev Q Change
Total value 2.85B 4.11B -30.6%
Total shares 20.17M 21.02M -4.1%
Total puts 0 0
Total calls 0 0
Total put/call ratio
Largest owners
Shares Value Change
Vanguard 2.66M $139.18M +2.6%
BLK BlackRock 2.38M $124.52M +4.0%
Dimensional Fund Advisors 1.69M $88.51M -1.5%
N Price T Rowe Associates 1.52M $79.68M +9.5%
BEN Franklin Resources 913.45K $47.85M -15.2%
Wellington Management 696.23K $36.47M -19.3%
NTRS Northern Trust 544.69K $28.53M +0.6%
STT State Street 539.88K $28.28M -1.7%
Brown Advisory 526.5K $27.58M +4.3%
SAMG Silvercrest Asset Management 495.17K $25.94M +0.8%
Largest transactions
Shares Bought/sold Change
Norges Bank 0 -362K EXIT
SG Capital Management 64.55K -225.28K -77.7%
Wellington Management 696.23K -166.93K -19.3%
BEN Franklin Resources 913.45K -163.42K -15.2%
Loomis Sayles & Co L P 462.1K +155.73K +50.8%
N Price T Rowe Associates 1.52M +131.64K +9.5%
MS Morgan Stanley 65.47K -123.55K -65.4%
Marshall Wace 121.95K +121.95K NEW
BLK BlackRock 2.38M +90.51K +4.0%
Arrowstreet Capital, Limited Partnership 108.43K -78.42K -42.0%

Financial report summary

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Risks
  • The coronavirus (COVID-19) pandemic, or other outbreak of disease or similar public health threat, could materially and adversely affect our business, financial condition and results of operations.
  • Our future operating results may fluctuate, fail to match past performance or fail to meet expectations, which may result in a decrease in our stock price.
  • Our stock price has fluctuated and may continue to fluctuate in the future, which may result in a decline in the value of your investment in our common stock.
  • Our ability to retain our executive management and to recruit, retain and motivate key qualified employees is critical to the success of our business.
  • Failure by third parties to manufacture and deliver our products to our specifications or on a timely basis may harm our reputation and financial condition.
  • A breach of our information technology systems could subject us to liability, reputational damage or interrupt the operation of our business.
  • Disruptions in our information technology systems or failure to protect these systems against security breaches could adversely affect our business and results of operations. Additionally, if these systems fail, become unavailable for any period of time or are not upgraded, this could limit our ability to effectively monitor and control our operations and adversely affect our operations.
  • If we determine that our goodwill and intangible assets have become impaired, we may incur impairment charges, which would negatively impact our operating results.
  • If we do not effectively manage our credit risk, collect on our accounts receivable or recover our rental equipment from our customers’ sites, it could have a material adverse effect on our operating results.
  • Effective management of our rental assets is vital to our business. If we are not successful in these efforts, it could have a material adverse impact on our results of operations.
  • The nature of our businesses, including the ownership of industrial property, exposes us to the risk of litigation and liability under environmental, health and safety and products liability laws. Violations of environmental or health and safety related laws or associated liability could have a material adverse effect on our business, financial condition and results of operations.
  • Our routine business activities expose us to risk of litigation from employees, vendors and other third parties, which could have a material adverse effect on our results of operations.
  • If we suffer loss to our facilities, equipment or distribution system due to catastrophe, our insurance policies could be inadequate or depleted, our operations could be seriously harmed, which could negatively affect our operating results.
  • Our debt instruments contain covenants that restrict or prohibit our ability to enter into a variety of transactions and may limit our ability to finance future operations or capital needs. If we have an event of default under these instruments, our indebtedness could be accelerated and we may not be able to refinance such indebtedness or make the required accelerated payments.
  • The majority of our indebtedness is subject to variable interest rates, which makes us vulnerable to increases in interest rates, which could negatively affect our net income.
  • Our effective tax rate may change and become less predictable as our business expands, making our future earnings less predictable.
  • Changes in financial accounting standards may cause lower than expected operating results and affect our reported results of operations.
  • Failure to comply with internal control attestation requirements could lead to loss of public confidence in our financial statements and negatively impact our stock price.
  • Significant reductions of, or delays in, funding to public schools have caused the demand and pricing for our modular classroom units to decline, which has in the past caused, and may cause in the future, a reduction in our revenues and profitability.
  • Public policies that create demand for our products and services may change, resulting in decreased demand for or the pricing of our products and services, which could negatively affect our revenues and operating income.
  • Failure to comply with applicable regulations could harm our business and financial condition, resulting in lower operating results and cash flows.
  • Expansions of our modular operations into new markets may negatively affect our operating results.
  • We are subject to laws and regulations governing government contracts. These laws and regulations make these government contracts more favorable to government entities than other third parties and any changes in these laws and regulations, or our failure to comply with these laws and regulations could harm our business.
  • Seasonality of our educational business may have adverse consequences for our business.
  • We may not be able to quickly redeploy modular units returning from leases, which could negatively affect our financial performance and our ability to expand, or utilize, our rental fleet.
  • Significant increases in raw material and labor costs could increase our acquisition cost of new modular rental units and repair and maintenance costs of our fleet, which would increase our operating costs and harm our profitability.
  • Failure by third parties to manufacture our products timely or properly may harm our reputation and financial condition.
  • Failure to properly design, manufacture, repair and maintain the modular product may result in impairment charges, potential litigation and reduction of our operating results and cash flows.
  • Market risk and cyclical downturns in the industries using test equipment may result in periods of low demand for our product resulting in excess inventory, impairment charges and reduction of our operating results and cash flows.
  • Seasonality of our electronic test equipment business may impact quarterly results.
  • Our rental test equipment may become obsolete or may no longer be supported by a manufacturer, which could result in an impairment charge.
  • If we do not effectively compete in the rental equipment market, our operating results will be materially and adversely affected.
  • If we are not able to obtain equipment at favorable rates, there could be a material adverse effect on our operating results and reputation.
  • If we are not able to anticipate and mitigate the risks associated with operating internationally, there could be a material adverse effect on our operating results.
  • Unfavorable currency exchange rates may negatively impact our financial results in U.S. dollar terms.
  • We may be brought into tort or environmental litigation or held responsible for cleanup of spills if the customer fails to perform, or an accident occurs in the use of our rental products, which could materially adversely affect our business, future operating results or financial position.
  • The liquid and solid containment rental industry is highly competitive, and competitive pressures could lead to a decrease in our market share or in rental rates and our ability to rent, or sell, equipment at favorable prices, which could adversely affect our operating results.
  • Market risk, commodity price volatility, regulatory changes or interruptions and cyclical downturns in the industries using tanks and boxes may result in periods of low demand for our products resulting in excess inventory, impairment charges and reduction of our operating results and cash flows.
  • Seasonality of the liquid and solid containment rental industry may impact quarterly results.
  • Significant increases in raw material, fuel and labor costs could increase our acquisition and operating costs of rental equipment, which would increase operating costs and decrease profitability.
  • Failure by third parties to manufacture our products timely or properly may harm our ability to meet customer demand and harm our financial condition.
  • We derive a meaningful amount of our revenue in our liquid and solid containment tank and boxes business from a limited number of customers, the loss of one or more of which could have an adverse effect on our business.
  • We may not be able to quickly redeploy equipment returning from leases at equivalent prices.
Management Discussion
  • Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
  • This Form 10-Q, including the following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”), contains forward-looking statements under federal securities laws. Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties. Our actual results could differ materially from those indicated by forward-looking statements as a result of various factors.  These factors include, but are not limited to, those set forth under this Item, those discussed in Part II—Item 1A, “Risk Factors” and elsewhere in this Form 10-Q and in our Annual Report on Form 10-K for the year ended December 31, 2019, as filed with the SEC on February 25, 2020 (the “2019 Annual Report”) and those that may be identified from time to time in our reports and registration statements filed with the SEC.
  • This discussion should be read in conjunction with the Condensed Consolidated Financial Statements and related Notes included in Part I—Item 1 of this Form 10-Q and the Consolidated Financial Statements and related Notes and the Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in our 2019 Annual Report.  In preparing the following MD&A, we presume that readers have access to and have read the MD&A in our 2019 Annual Report, pursuant to Instruction 2 to paragraph (b) of Item 303 of Regulation S-K.  We undertake no duty to update any of these forward-looking statements after the date of filing of this Form 10-Q to conform such forward-looking statements to actual results or revised expectations, except as otherwise required by law.
Content analysis ?
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