FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------------------_________________________
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended JuneSeptember 30, 1997
Commission File No. 0-13292
MCGRATHMcGRATH RENTCORP
(Exact name of registrant as specified in its Charter)
CALIFORNIA 94-2579843
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
2500 GRANT AVENUE
SAN LORENZO,5700 LAS POSITAS ROAD
LIVERMORE, CALIFORNIA 9458094550
(Address of principal executive offices)
Registrant's telephone number: (510) 276-2626
----------------------------606-9200
_________________________
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports) and (2) has been subject to
such filing requirements for the past 90 days.
Yes X No
----- -----______ _______
At July 29,November 11, 1997, 15,011,91815,021,918 shares of Registrant's Common Stock
were outstanding.
----------------------------_________________________
McGrath RentCorp
SecondThird Quarter 1997 Form 10-Q
Page 1
PART 1. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three months ended SixNine months ended
JuneSeptember 30, JuneSeptember 30,
------------------------ --------------------------------------------------- ----------------------------
1997 1996 1997 1996
----------- ----------- ----------------------- -----------
REVENUES:
Rental operations-
Rental $14,743,810 $11,694,056 $29,070,811 $23,251,854$16,067,741 $12,321,796 $ 45,138,552 $35,573,650
Rental related services 2,370,264 2,093,788 5,283,276 3,752,1743,608,892 3,920,071 8,892,168 7,672,245
----------- ----------- ------------ -----------
-----------
17,114,074 13,787,844 34,354,087 27,004,02819,676,633 16,241,867 54,030,720 43,245,895
Sales and related services 16,344,934 5,853,535 25,946,431 10,342,70225,675,496 9,255,338 51,621,927 19,598,040
----------- ----------- ----------------------- -----------
Total revenues 33,459,008 19,641,379 60,300,518 37,346,73045,352,129 25,497,205 105,652,647 62,843,935
----------- ----------- ----------------------- -----------
COSTS & EXPENSES:
Direct costs of rental operations-
Depreciation 3,464,332 3,075,168 6,887,773 6,080,8213,649,571 3,108,151 10,537,344 9,188,972
Rental related services 1,577,558 1,152,907 3,615,051 2,179,4971,991,688 2,048,185 5,606,739 4,227,682
Other direct rental costs 1,938,696 1,597,978 4,467,102 3,559,3342,296,141 2,671,884 6,763,243 6,231,218
----------- ----------- ------------ -----------
-----------
6,980,586 5,826,053 14,969,926 11,819,6527,937,400 7,828,220 22,907,326 19,647,872
Cost of sales and related services 11,393,852 4,092,606 17,655,048 7,193,43117,878,601 6,064,184 35,533,649 13,257,615
----------- ----------- ------------ -----------
25,816,001 13,892,404 58,440,975 32,905,487
----------- ----------- 18,374,438 9,918,659 32,624,974 19,013,083
----------- ----------- ----------------------- -----------
Gross margin 15,084,570 9,722,720 27,675,544 18,333,64719,536,128 11,604,801 47,211,672 29,938,448
Selling and administrative expenses 3,997,950 2,969,553 7,541,094 5,846,8005,429,859 3,729,591 12,970,953 9,576,391
----------- ----------- ----------------------- -----------
Income from operations 11,086,620 6,753,167 20,134,450 12,486,84714,106,269 7,875,210 34,240,719 20,362,057
Interest expense 989,446 682,152 1,862,331 1,317,4261,042,716 744,275 2,905,047 2,061,701
----------- ----------- ----------------------- -----------
Income before provision
for income taxes 10,097,174 6,071,015 18,272,119 11,169,42113,063,553 7,130,935 31,335,672 18,300,356
----------- ----------- ------------ -----------
Provision for income taxes 4,015,527 2,418,925 7,270,984 4,443,7545,361,199 2,667,070 12,632,183 7,110,824
----------- ----------- ----------------------- -----------
Net income $ 6,081,6477,702,354 $ 3,652,090 $11,001,1354,463,865 $ 6,725,66718,703,489 $11,189,532
----------- ----------- ------------ -----------
----------- ----------- -----------
----------- ----------- ----------------------- -----------
Net income per share $ 0.400.51 $ 0.240.29 $ 1.23 $ 0.73
$ 0.43----------- ----------- ------------ -----------
----------- ----------- ------------ -----------
----------- ----------- ----------- -----------
The accompanying notes are an integral part of these financial statements.
McGrath RentCorp
Second Quarter 1997 Form 10-Q
Page 2
CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 30, December 31,
1997 1996
------------ ------------
ASSETS
Cash $ 3,092,435 $ 686,333
Accounts receivable, less allowance for
doubtful accounts of $617,000 in 1997
and $605,000 in 1996 23,841,995 19,919,954
Rental equipment, at cost:
Relocatable modular offices 169,251,231 158,376,950
Electronic test instruments 45,531,470 43,335,413
------------ ------------
214,782,701 201,712,363
Less - Accumulated depreciation (68,439,248) (64,419,888)
------------ ------------
146,343,453 137,292,475
Land 20,167,647 20,167,647
Improvements, furniture and equipment, at cost,
less accumulated depreciation of $2,758,707
in 1997 and $3,376,803 in 1996 23,538,807 19,572,015
Prepaid expenses and other assets 5,955,606 2,396,935
------------ ------------
$222,939,943 $200,035,359
------------ ------------
------------ ------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Notes payable $ 65,000,000 $ 53,850,000
Accounts payable and accrued liabilities 16,015,321 15,280,543
Deferred income 6,947,401 5,226,803
Deferred income taxes 37,055,547 36,869,734
------------ ------------
Total liabilities 125,018,269 111,227,080
------------ ------------
Shareholders' equity:
Common stock, no par value -
Authorized - 4O,OOO,OOO shares
Outstanding - 15,011,918 shares in 1997
and 15,386,630 in 1996 7,675,062 7,161,168
Retained earnings 90,246,612 81,647,111
------------ ------------
Total shareholders' equity 97,921,674 88,808,279
------------ ------------
$222,939,943 $200,035,359
------------ ------------
------------ ------------
The accompanying notes are an integral part of these financial statements.
McGrath RentCorp
SecondThird Quarter 1997 Form 10-Q
Page 3
CONSOLIDATED STATEMENTS OF CASH FLOWS
Increase (decrease) in cash
(Unaudited)
Six months ended
June 30,
-------------------------
1997 1996
------------ ------------
Cash flows from operating activities:
Net income $ 11,001,135 $ 6,725,667
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 7,332,307 6,459,352
Gain on sale of rental equipment (2,885,946) (2,242,807)
Change in:
Accounts receivable (3,922,041) (1,590,440)
Prepaids and other assets (3,558,671) (322,095)
Accounts payable and accrued liabilities 571,639 73,524
Deferred income 1,720,598 (1,294,225)
Deferred income taxes 185,813 1,395,404
------------ ------------
Net cash provided by operating activities 10,444,834 9,204,380
------------ ------------
Cash flows from investing activities:
Purchase of rental equipment (20,630,573) (10,345,648)
Purchase of improvements, furniture and equipment (4,411,326) (2,108,148)
Proceeds from sale of rental equipment 7,577,768 6,314,234
------------ ------------
Net cash used in investing activities (17,464,131) (6,139,562)
------------ ------------
Cash flows from financing activities:
Net borrowings 11,150,000 5,295,000
Payment of dividends (2,238,495) (1,997,348)
Repurchase of Common Stock --- (6,276,090)
Proceeds from the exercise of stock options 513,894 268,656
------------ ------------
Net cash used in financing activities 9,425,399 (2,709,782)
------------ ------------
Net increase (decrease) in cash 2,406,102 355,036
Cash balance, beginning of period 686,333 221,075
------------ ------------
Cash balance, end of period $ 3,092,435 $ 576,1112
CONSOLIDATED BALANCE SHEETS
(Unaudited)
September 30, December 31,
1997 1996
------------ ------------
ASSETS
Cash $ 1,341,998 $ 686,333
Accounts receivable, less allowance for
doubtful accounts of $650,000 in 1997
and $605,000 in 1996 25,849,843 19,919,954
Rental equipment, at cost:
Relocatable modular offices 179,968,456 158,376,950
Electronic test instruments 48,867,451 43,335,413
------------ ------------
228,835,907 201,712,363
Less - Accumulated depreciation (70,142,706) (64,419,888)
------------ ------------
158,693,201 137,292,475
Land 20,167,647 20,167,647
Land improvements, furniture and equipment,
at cost, less accumulated depreciation of
$2,934,896 in 1997 and $3,376,803 in 1996 25,416,597 19,572,015
Prepaid expenses and other assets 6,494,117 2,396,935
------------ ------------
$237,963,403 $200,035,359
------------ ------------
------------ ------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Notes payable $ 65,800,000 $ 53,850,000
Accounts payable and accrued liabilities 22,757,765 15,280,543
Deferred income 7,313,239 5,226,803
Deferred income taxes 37,627,123 36,869,734
------------ ------------
Total liabilities 133,498,127 111,227,080
------------ ------------
Shareholders' equity:
Common stock, no par value -
Authorized - 4O,OOO,OOO shares
Outstanding - 15,015,918 shares in 1997
and 14,797,918 in 1996 7,718,062 7,161,168
Retained earnings 96,747,214 81,647,111
------------ ------------
Total shareholders' equity 104,465,276 88,808,279
------------ ------------
$237,963,403 $200,035,359
------------ ------------
------------ ------------
Interest paid during period $ 1,850,899 $ 1,307,290
------------ ------------
------------ ------------
Income taxes paid during period $ 7,085,171 $ 3,096,306
------------ ------------
------------ ------------
Dividends declared but not yet paid $ 1,200,953 $ 1,050,787
------------ ------------
------------ ------------
The accompanying notes are an integral part of these financial statements.
McGrath RentCorp
SecondThird Quarter 1997 Form 10-Q
Page 3
CONSOLIDATED STATEMENTS OF CASH FLOWS
Increase (decrease) in cash
(Unaudited)
Nine months ended
September 30,
1997 1996
------------ ------------
Cash flows from operating activities:
Net income $ 18,703,489 $ 11,189,532
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 11,191,451 9,787,419
Gain on sale of rental equipment (5,453,700) (3,606,691)
Change in:
Accounts receivable (5,929,889) (5,380,276)
Prepaids and other assets (4,097,182) (428,495)
Accounts payable and accrued liabilities 7,313,283 3,931,629
Deferred income 2,086,436 (341,885)
Deferred income taxes 757,389 1,826,972
------------ ------------
Net cash provided by operating activities 24,571,277 16,978,205
------------ ------------
Cash flows from investing activities:
Purchase of rental equipment (41,240,592) (17,598,298)
Purchase of land --- (678,347)
Purchase of land improvements, furniture
and equipment (6,498,689) (4,277,225)
Proceeds from sale of rental equipment 14,756,222 9,511,633
------------ ------------
Net cash used in investing activities (32,983,059) (13,042,237)
------------ ------------
Cash flows from financing activities:
Net borrowings 11,950,000 8,645,000
Payment of dividends (3,439,447) (3,048,133)
Repurchase of common stock --- (8,778,775)
Net proceeds from the exercise of stock options 556,894 92,101
------------ ------------
Net cash provided (used) by financing activities 9,067,447 (3,089,807)
------------ ------------
Net increase (decrease) in cash 655,665 846,161
Cash balance, beginning of period 686,333 221,075
------------ ------------
Cash balance, end of period $ 1,341,998 $ 1,067,236
------------ ------------
------------ ------------
Interest paid during period $ 2,859,790 $ 2,028,226
------------ ------------
------------ ------------
Income taxes paid during period $ 8,274,674 $ 5,256,506
------------ ------------
Dividends declared but not yet paid $ 1,201,753 $ 1,035,854
------------ ------------
------------ ------------
The accompanying notes are an integral part of these financial statements.
McGrath RentCorp
Third Quarter 1997 Form 10-Q
Page 4
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JuneSeptember 30, 1997
------------------------------------------__________________________________________
1. The consolidated financial information for the sixnine months ended
JuneSeptember 30, 1997 has not been audited, but in the opinion of management,
all adjustments (consisting only of normal recurring accruals,
consolidation and eliminating entries) necessary for the fair presentation
of the consolidated results of operations, financial position, and cash
flows of McGrath RentCorp (the "Company") have been made. The consolidated
results of the sixnine months ended JuneSeptember 30, 1997 should not be
considered as necessarily indicative of the results for the entire year.
It is suggested that these consolidated financial statements be read in
conjunction with the financial statements and notes thereto included in the
Company's latest Form 10-K.
2. On March 27, 1997, the Company's Board of Directors declared a 2-for-1
stock split to be effective April 15, 1997. All share and per share
calculations retroactively reflect the stock split. The number of outstanding shares and equivalent shares used in the
earnings per common share calculations were as follows:
Primary Fully Diluted
--------- -------------
Three months ended: June 30, 1997 15,201,573 15,231,979
June 30, 1996 15,326,982 15,343,364
Six months ended: June 30, 1997 15,163,548 15,214,979
June 30, 1996 15,541,480 15,568,044
Primary Fully Diluted
---------- -------------
Three months ended: September 30, 1997 15,242,764 15,250,148
September 30, 1996 15,172,408 15,194,300
Nine months ended: September 30, 1997 15,192,887 15,235,692
September 30, 1996 15,403,986 15,468,252
3. The Financial Accounting Standards Board issued Statement of Financial
Accounting Standards (SFAS) No. 128, "Earnings per Share", which modifies the
way in which earnings per share (EPS) is calculated and disclosed effective
for periods ending after December 15, 1997. Primary EPS will be replaced by
basic EPS which is computed by dividing reported net income by the weighted
average number of shares of common stock outstanding during the period. Fully
diluted EPS will be replaced with diluted EPS which is computed by dividing
reported net income by the weighted average number of shares of common stock
and dilutive common equivalent shares outstanding during the period. Common
stock equivalents result from dilutive stock options computed using the
treasury stock method with the average share price for the reported period.
When implemented, the effect of this accounting change on previously reported
EPS data is not significant.
4. In July 1997, the Company entered into a new credit agreement amending
and restating it's unsecured line of credit agreement (the "Agreement") with its
banks which expires June 30, 1999 and permits it to borrow up to
$70,000,000. The Agreement requires the Company to pay interest at prime
or, at the Company's election, other rate options available under the
Agreement. In addition, the Company pays a commitment fee on the daily
average unused portion of the available line. Among other terms, the
McGrath RentCorp
SecondThird Quarter 1997 Form 10-Q
Page 5
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JuneSeptember 30, 1997
------------------------------------------__________________________________________
Agreement requires (i) the Company to maintain shareholders' equity of not
less than $77,800,000 plus 50% of all net income generated subsequent to June
30, 1997, (ii) a debt-to-equity ratio (excluding deferred income taxes) of
not more than 3 to 1, (iii) interest coverage (income from operations
compared to interest expense) of not less than 2 to 1, and (iv) debt service
coverage of not less than 1.15 to 1. If the Company does not amend or
renegotiate this Agreement for an additional time period prior to its
expiration date, the principal amount outstanding at that time will be
converted to a two-year term loan with the principal due and payable in eight
(8) quarterly installments. In addition to the $70,000,000 unsecured line of
credit, the expiration dateCompany has a $3,000,000 committed line of a $5,000,000 Optional Advance Facility with
onecredit related to its
cash management services and has $10,000,000 of the Company's banks was extended to August 31, 1997.uncommitted optional advance
facilities all of which expire June 30, 1998.
McGrath RentCorp
SecondThird Quarter 1997 Form 10-Q
Page 6
ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS.
Three and SixNine Months Ended JuneSeptember 30, 1997 and 1996
McGrath RentCorp (the "Company") is engaged in the business of renting
and selling relocatable modular offices and classrooms under its trade name
"Mobile Modular," and electronic test and measurement instruments under the
names "McGrath RentCorp" and "Rentelco". Although the Company's primary
emphasis is on rentals, both modulars and electronics are sold to direct-use
customers. The Company also manufactures portable classrooms through its
majority owned (73.2%) subsidiary, Enviroplex, Inc., for direct sale to
school districts.
Rental revenues for the three and sixnine months ended JuneSeptember 30, 1997
increased $3,049,754 (26%$3,745,945 (30%) and $5,818,957 (25%$9,564,902 (27%), respectively, over the same
periods in 1996.1997. Modulars contributed 80.4%71.2% and 78.7%75.8% of the rental revenue
increase in 1997 for the three and sixnine months ended JuneSeptember 30, 1997.
Average utilization during the first sixnine months increased for modulars,Modulars, from
69.4%70.5% to 79.0%80.0%, and slightly declined for electronics,Electronics, from 55.6%55.2% to 53.9%55.0% as
compared to the same period in 1996. The increase in utilization for modularsModulars
is aprimarily the result of rentals to implement the class size reduction
program in California schools and has significantly
contributed to the increase in rental revenues for the reported periods.schools.
Rental related service revenues for the three months ended JuneSeptember 30,
1997 increased $276,476 (13%decreased $311,179 (8%) and for the sixnine months ended JuneSeptember 30, 1997
increased $1,531,102 (41%$1,219,923 (16%), respectively, compared to the same periods in
1996. The sixthree month comparative revenue decline resulted from many schools
opting in 1997 to include the normal upfront charges in the rental rate. The
nine month comparative increase was primarily due to one commercial project
with significant site work requirements which occurred in the first quarter
of 1997 with significant site work requirements performed
at a lower gross margin. Partially for reason noted above,1997. The gross margins for rental related services declined for the sixnine
month comparative period from 42%45% in 1996 to 32%37% in 1997.1997 partially as a
result of the project noted above being performed at a lower gross margin.
Sales and related services for the three and sixnine months ended JuneSeptember
30, 1997 increased $10,491,399 (179%$16,420,158 (177%) and $15,603,729 (151%$32,023,887 (163%), respectively,
over the same periods in 1996. OfThe table below indicates the six monthsales and
related services contribution for Modulars, Enviroplex and Electronics for
nine months ended September 30, 1997 compared with the nine months ended
September 30, 1996.
Nine months ended September 30,
------------------------------- Increase Over
1997 1996 Prior Period
----------- ----------- -------------
Modulars $29,156,007 $ 9,216,794 $19,939,213
Enviroplex 16,755,733 6,150,920 10,604,813
Electronics 5,710,187 4,230,326 1,479,861
----------- ----------- ------------
$51,621,927 $19,598,040 $32,023,887
----------- ----------- ------------
----------- ----------- ------------
McGrath RentCorp
Third Quarter 1997 Form 10-Q
Page 7
The significant increase in sales and related services revenues, $7,749,926 relates to modulars, $6,981,314 relates to
Enviroplex, and $872,489 relates to electronics. The significant increase in
sales for modularsModulars and
Enviroplex is directly related to the higher demand by school districts because ofin
conjunction with the class size reduction program in California. OfSales and
related service revenues from school districts comprised 77% and 33% of the
totalModulars sales and related services revenues for the nine months ended
September 30, 1997 and 1996, respectively, while Enviroplex sells
substantially all of the Company in 1997, approximately
68% were relatedits product to school districts. Future sales under the
class size reduction program for the Company are subject to the state's
funding of the program, the requirements of the various school districts and
available supplies. Management believes the present sales and related
services revenue levels for Modulars, and to a lesser degree Enviroplex, may
not be sustainable in the future. Management continues to believe that sales
and related services from quarter to quarter and year to year fluctuate based
on customer requirements. Gross Marginsmargins on sales and related services
improveddeclined slightly for the sixnine month period from 30.5%32.4% in 1996 to 32.0%31.2% in
1997.
Depreciation on rental equipment for the three and sixnine months ended
JuneSeptember 30, 1997 increased $389,164 (13%$541,420 (17%) and $806,952 (13%$1,348,372 (15%),
respectively, over the same periods in 1996 as a result of additionsdue to the additions of both
modular and electronic rental equipment for
both modulars and electronics. Other direct rental costs increased $340,718
(21%) and $907,768 (26%), respectively, for the three
McGrath RentCorp
Second Quarter 1997 Form 10-Q
Page 7
and six months ended June 30, 1997 due to material, repair, and labor costs
related to the modular equipment movement occurring in 1997.equipment.
Selling and administrative expenses for the three and sixnine months ended
JuneSeptember 30, 1997 increased $1,028,397 (35%$1,700,268 (46%) and $1,694,294 (29%$3,394,562 (35%),
respectively, over the same periods in 1996. The increased business activity
in the modular business for class size reduction has also translated into
higher personnel costs for the sixnine months ended JuneSeptember 30, 1997 over the
same sixnine month period in 1996. Personnel costs increased $886,127$1,580,152 over the
same period in 1996 and include additional staff for sales and support,
increased temporary contract labor, and increased sales and performance
bonuses. Additionally, selling and administrative expenses for Enviroplex
increased $619,750$908,894 during the sixnine month comparative period due to increased
sales activity and includes the reduction of net income by the portion of
earnings of Enviroplex related to the minority shareholder's interest.
Interest expense for the three and nine months ended September 30, 1997
increased $298,441 (40%) and $843,346 (41%), respectively, over the same
periods in 1996 as a result of 47% higher average borrowing levels during the
comparative period.
Income before provision for income taxes for the three and sixnine months
ended JuneSeptember 30, 1997 increased $4,026,159 (66%$5,932,618 (83%) and $7,102,698 (64%$13,878,662 (68%),
respectively, over the same periods in 1996. Net income increased $2,429,557 (67%$3,238,489
(73%) for the three month period and $4,275,468 (64%$7,513,957 (67%) for the sixnine month
period over the same periods in 1996. Earnings per share for the three and
sixnine months ended JuneSeptember 30, 1997 increased 67%76%, from $0.24$0.29 to $0.40,$0.51, and
70%68%, from $0.43$0.73 to $0.73. Outstanding shares declined slightly.
LIQUIDITY AND CAPITAL RESOURCES.$1.23.
McGrath RentCorp
Third Quarter 1997 Form 10-Q
Page 8
Liquidity and Capital Resources.
The debt (notes payable) to equity ratio was 0.660.63 to 1 at JuneSeptember 30,
1997 compared to 0.61 to 1 at December 31, 1996. The debt (total liabilities)
to equity ratio at the end of the current period was 1.28 to 1 as compared to
1.25 to 1 as of December 31, 1996.
The Company has made purchases of shares of its common stock from time
to time in the over-the-counter market (NASDQ) and/or through privately
negotiated, large block transactions under an authorization of the Board of
Directors. The Board of Directors believes that the repurchase of its
shares continues to be a good investment for the Company. Shares repurchased by the Company will be cancelled and returned
to the status of authorized but unissued stock. The Company has not
repurchased any of its common stock during 1997 and currently hasis authorized
to purchase up to 1,000,000 shares authorized for
repurchase.shares.
The Company's primary use of funds is to purchase rental equipment and
sales inventory, and funds will continue to be used for this purpose in the
future. Additionally, the Company plans to make further improvements
to the land at their inventory facility located in Northern California.
The Company also pays quarterly dividends, which will constitute an
additional use of cash in 1997.
McGrath RentCorp
SecondThird Quarter 1997 Form 10-Q
Page 89
PART II. OTHER INFORMATION
ITEM 5. OTHER INFORMATION
In JuneSeptember 1997, the Company declared a quarterly dividend on its
Common Stock; the dividend was $0.08 per share. Subject to its continued
profitability and favorable cash flow, the Company intends to continue the
payment of quarterly dividends.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) EXHIBITS.
Index to exhibits filed herewith as part of this report:
Exhibit
Number Title
4.1 $3,000,000 Committed Credit Agreement (Amended and Restated)Facility dated July 10,29, 1997
between the Company and Union Bank of California, N.A.,
Fleet Bank, N.A., and Bank of America National Trust
and Savings Association
4.2 $5,000,000 Optional Advance Facility Extension dated July
29, 1997 between the Company and Union Bank of California,
N.A.
4.3 $5,000,000 Optional Advance Facility Extension dated
August 13, 1997 between the Company and Fleet Bank, N.A.
(b) REPORTS ON FORM 8-K. No reports on form 8-K have been filed during the
quarter for which this report is filed.
McGrath RentCorp
SecondThird Quarter 1997 Form 10-Q
Page 910
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: August 1,November 11, 1997 McGRATH RENTCORP
By: /s//s/ Delight Saxton
---------------------------------------------------------------
Delight Saxton, Chief Financial
Officer and Senior Vice President
of Administration