McGrath RentCorp (NASDAQ:MGRC) Q3 2022 Earnings Conference Call October 27, 2022 5:00 PM ET
Company Participants
Joseph Hanna - President, CEO
Keith Pratt - EVP, CFO
Conference Call Participants
Scott Schneeberger - Oppenheimer & Company
Marc Riddick - Sidoti & Company
Operator
Ladies and gentlemen, thank you for standing by. Welcome to the McGrath RentCorp Third Quarter 2022 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] This conference is being recorded today, Thursday, October 27, 2022.
Before we begin, note that the matters the company management will be discussing today that are not statements of historical facts or forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our full-year 2022 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-Q 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 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 September 30, 2022.
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. Go ahead, sir.
Joseph Hanna
Good afternoon, and thank you everyone for joining us on McGrath’s earning call today. I hope you are all doing well. Keith and I will look forward to your questions after we each highlight aspects of McGrath’s progress in the third quarter during our prepared remarks.
We were very pleased with our third quarter results which reflected strength in all of our business units. Total company rental revenues increased by 15% and sales revenues increased by 20%. The third quarter continued our strong performance year-to-date, and reflects effective execution of our strategic priorities as well as favorable market conditions.
Turning to each of our business units. Mobile modular once again had a very impressive quarter. Rental revenues grew by 17% with noteworthy increased performance from our education segment where we are seeing recovery post pandemic, and as school districts continue modernization projects in all of our regions. Our strong presence in growth markets, where student population is increasing, also drove rentals as districts cannot accommodate students fast enough in permanent facilities. Education rentals, which account for a third of our business mix grew by 9%, which was the largest increase since the beginning of the pandemic in the first quarter of 2020.