McGrath RentCorp (NASDAQ:MGRC) Q1 2022 Earnings Conference Call April 28, 2022 5:00 PM ET
Company Participants
Joe Hanna - Chief Executive Officer
Keith Pratt - Chief Financial Officer
Conference Call Participants
Scott Schneeberger - Oppenheimer
Operator
Ladies and gentlemen, thank you for standing by. Welcome to the McGrath RentCorp First Quarter 2022 Earnings Conference 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, April 28, 2022.
Before we begin, note that the matters the company management will be discussing today 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 March 31, 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. Please go ahead, sir.
Joe Hanna
Thank you, Norma. Good afternoon, and thank you, everyone, for joining us on today’s call. I am pleased to report that McGrath RentCorp has begun the year with strong first quarter performance from all of our business units.
Companywide rental revenues increased an impressive 21%. This strong double-digit performance reflects favorable market conditions, focused execution and the benefit of the three strategic acquisitions we completed last year.
Mobile Modular, our largest business segment realized a 32% increase in rental revenues. Strong demand in both our commercial and education market segments, as well as the new geographies added as a part of our acquisitions last year contributed to this robust growth.
Our commercial projects serve broad-based needs such as commercial interim offices, as well as offices for municipalities and government agencies. Quite a few of the commercial projects we closed in the first quarter were custom and fit well with our unique production center capabilities that can modify our units to specific customer requirements. Funding for education projects has been generally good and activity for modernization and growth projects is healthy as districts emerge from COVID-related slowdowns.