McGrath RentCorp (NASDAQ:MGRC) Q2 2023 Earnings Conference Call July 27, 2023 5:00 PM ET

Company Participants

Joe Hanna – Chief Executive Officer

Keith Pratt – Chief Financial Officer

Conference Call Participants

Scott Schneeberger – Oppenheimer

Marc Riddick – Sidoti

Operator

Ladies and gentlemen, thank you for standing by. Welcome to the McGrath RentCorp Second Quarter 2023 Earnings Call. At this time, all conference participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] Conference call is being recorded today, Thursday, July 27, 2023.

Before we begin, note that the matters the company management will be discussing today that are not statements of historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our full year 2023 financial outlook, as well as statements relating to the company’s expectations, strategies, prospects, or targets.

These forward-looking statements are not guarantees of future performance and involve significant risks and uncertainties that could cause our actual results to differ materially from those projected. Important factors that could cause actual results to differ materially from the company’s expectations are disclosed under Risk Factors in the company’s Form 10-K and other SEC filings.

Forward-looking statements are made only as of the date hereof, except as otherwise required by law. We assume no obligation to update any forward-looking statements. In addition to the press release issued today, the company also filed with the SEC the earnings release on Form 8-K and its Form 10-Q for the quarter ended June 30, 2023. Speaking today will be Joe Hanna, Chief Executive Officer; and Keith Pratt, Chief Financial Officer.

I will now turn the call over to Mr. Hanna. Please go ahead, sir.

Joe Hanna

Thank you, Mike. Good afternoon, everyone. Thank you for joining us on our call today. I am very pleased to report impressive results for our second quarter. For the period, our rental revenues increased 24%, sales revenues increased 33%, and EBITDA increased 33%. This performance is the result of our diligent efforts to transform the company into a more streamlined and focused business.

I can say that these efforts are paying off as we delivered another consecutive quarter of strong results for our shareholders. Reflecting another strong quarter and confidence in our business, we are increasing our outlook and currently expect 2023 revenues and adjusted EBITDA to be in the range of $805 million to $830 million and $306 million to $320 million, respectively.