Docoh
Loading...

MGRC McGrath Rentcorp

Founded in 1979, McGrath RentCorp is a diversified business-to-business rental company providing modular buildings, electronic test equipment, portable storage and tank containment solutions across the United States and other select North American regions. The Company's rental operations consist of four divisions: Mobile Modular rents and sells modular buildings to fulfill customers' temporary and permanent classroom and office space needs; TRS-RenTelco rents and sells electronic test equipment; Adler Tank Rentals rents and sells containment solutions for hazardous and nonhazardous liquids and solids; and Mobile Modular Portable Storage provides portable storage rental solutions.

Company profile

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

MGRC stock data

(
)

Calendar

3 Aug 21
3 Aug 21
31 Dec 21
Quarter (USD)
Jun 21 Mar 21 Dec 20 Sep 20
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD)
Dec 20 Dec 19 Dec 18 Dec 17
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS

Financial data from company earnings reports.

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
11 Jun 21 John Lieffrig Common Stock Sell Dispose S No No 84.4032 1,700 143.49K 10,332
1 Jun 21 John Lieffrig Common Stock Sale back to company Dispose D No No 85.73 1,978 169.57K 12,032
1 Jun 21 John Lieffrig Common Stock Payment of exercise Dispose F No No 85.73 946 81.1K 14,010
1 Jun 21 John Lieffrig Common Stock Option exercise Aquire M No No 31.97 4,005 128.04K 14,956
1 Jun 21 John Lieffrig Common Stock Option exercise Aquire M No No 34.57 1,200 41.48K 10,951
1 Jun 21 John Lieffrig Stock Appreciation Right Common Stock Option exercise Dispose M No No 34.57 1,200 41.48K 2,400
1 Jun 21 John Lieffrig Stock Appreciation Right Common Stock Option exercise Dispose M No No 31.97 4,005 128.04K 1,335
1 Jun 21 Tara Wescott Common Stock Payment of exercise Dispose F No No 86.76 331 28.72K 625
1 Jun 21 Tara Wescott Common Stock Option exercise Aquire M No No 0 956 0 956
1 Jun 21 Tara Wescott RSU Common Stock Option exercise Dispose M No No 0 956 0 1,914

Data for the last complete 13F reporting period. To see the most recent changes to ownership, click the ownership history button above.

81.7% owned by funds/institutions
13F holders
Current Prev Q Change
Total holders 182 193 -5.7%
Opened positions 20 17 +17.6%
Closed positions 31 19 +63.2%
Increased positions 57 64 -10.9%
Reduced positions 73 77 -5.2%
13F shares
Current Prev Q Change
Total value 2.12B 1.36B +55.4%
Total shares 19.78M 20.31M -2.6%
Total puts 2.7K 10.8K -75.0%
Total calls 10.3K 0 NEW
Total put/call ratio 0.3 Infinity NaN%
Largest owners
Shares Value Change
Vanguard 2.47M $199.1M +0.8%
BLK Blackrock 2.21M $178.45M -3.7%
TROW T. Rowe Price 1.66M $133.48M -1.6%
Dimensional Fund Advisors 1.47M $118.89M -5.0%
BEN Franklin Resources 1.28M $102.99M +32.0%
Loomis Sayles & Co L P 790.56K $63.76M -0.7%
Wellington Management 569.38K $45.92M -3.1%
Brown Advisory 565.07K $45.57M +1.0%
SAMG Silvercrest Asset Management 538K $43.39M -1.1%
STT State Street 476.22K $38.41M -6.3%
Largest transactions
Shares Bought/sold Change
Schroder Investment Management 370.07K +364.65K +6720.4%
Norges Bank 0 -357.26K EXIT
BEN Franklin Resources 1.28M +309.81K +32.0%
Charles Schwab Investment Management 394.52K +142.17K +56.3%
NTRS Northern Trust 435.95K -132.71K -23.3%
Allianz Asset Management GmbH 20.6K -129.83K -86.3%
Royce & Associates 126.37K -93.73K -42.6%
BLK Blackrock 2.21M -85.03K -3.7%
NFJ Investment 83.91K +83.91K NEW
Dimensional Fund Advisors 1.47M -78.12K -5.0%

Financial report summary

?
Risks
  • 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.
  • The impact of COVID-19 on our operations, and the operations of our customers, suppliers and logistics providers, may harm our business.
  • Our ability to retain our executive management and to recruit, retain and motivate key qualified employees is critical to the success of our business.
  • A breach or an alleged 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.
  • We have engaged in acquisitions and may engage in future acquisitions that could negatively impact our results of operations, financial condition and business.
  • If we determine that our goodwill and intangible assets have become impaired, we may incur impairment charges, which would negatively impact our operating results.
  • Our rental equipment is subject to residual value risk upon disposition, and may not sell at the prices or in the quantities we expect.
  • 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, or as a result of federal and state tax law changes, 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.
  • 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.
  • Seasonality of our educational business may have adverse consequences for our business.
  • We face strong competition in our modular building markets and we may not be able to effectively compete.
  • 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.
  • Our warranty costs may increase and warranty claims could damage our reputation and negatively impact our revenues and operating income.
  • 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.
  • Changes in regulatory, or governmental, oversight of hydraulic fracturing could materially adversely affect the demand for our rental products and reduce 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.
  • We may not be able to quickly redeploy equipment returning from leases at equivalent prices.
Management Discussion
  • Consolidated revenues for the three months ended June 30, 2021 increased 6% to $146.4 million from $137.7 million in the same period in 2020.  Consolidated net income for the three months ended June 30, 2021 decreased 9% to $20.6 million, from $22.5 million for the same period in 2020.  Earnings per diluted share for the three months ended June 30, 2021 decreased 9% to $0.84 from $0.92 for the same period in 2020.
  • For the three months ended June, 2021, Mobile Modular’s total revenues increased $7.8 million, or 10%, to $84.6 million compared to the same period in 2020, primarily due to higher rental and rental related services revenues, partly offset by lower sales revenues. Higher selling and administrative expenses, partly offset by higher gross profit on rental, rental related services and sales revenues, resulted in a 13% decrease in pre-tax income to $16.8 million for the three months ended June 30, 2021, from $19.3 million for the same period in 2020.
  • Mobile Modular’s gross profit for the three months ended June 30, 2021 increased $3.3 million, or 9%, to $40.8 million.  For the three months ended June 30, 2021 compared to the same period in 2020:
Content analysis
?
Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. sophomore Avg
New words: ASC, backlog, Codification, contributory, criteria, deductible, disclosed, fit, forma, half, headcount, LP, model, Northwest, Pacific, placement, PNW, preliminary, pro, provisional, purport, seller, statutory, tangible, tradename, valuation, West
Removed: integrated, repayment, TRS