MCGRATH RENTCORP Files 2023 Annual Report on Form 10-K

TL;DR

<b>McGrath RentCorp has filed its 2023 10-K, detailing financial activities and corporate structure.</b>

AI Summary

MCGRATH RENTCORP (MGRC) filed a Annual Report (10-K) with the SEC on February 21, 2024. McGrath RentCorp filed its 2023 10-K report on February 21, 2024. The filing covers the fiscal year ending December 31, 2023. The company is incorporated in California and operates in the Equipment Rental & Leasing sector. Key dates mentioned include various acquisitions and debt issuances throughout 2021-2023. The report details financial instruments including revolving credit facilities and senior notes.

Why It Matters

For investors and stakeholders tracking MCGRATH RENTCORP, this filing contains several important signals. This 10-K provides a comprehensive overview of McGrath RentCorp's financial performance and operational status for the fiscal year 2023, crucial for investors and stakeholders to assess the company's health and future prospects. The detailed financial information, including debt instruments and acquisitions, offers insights into the company's growth strategies and risk management practices.

Risk Assessment

Risk Level: medium — MCGRATH RENTCORP shows moderate risk based on this filing. The company's financial structure involves various debt instruments and credit facilities, indicating a reliance on leverage which can amplify both gains and losses.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand McGrath RentCorp's financial leverage and operational risks.

Key Numbers

• 2023-12-31 — Fiscal Year End (CONFORMED PERIOD OF REPORT)
• 2024-02-21 — Filing Date (FILED AS OF DATE)
• 7359 — SIC Code (STANDARD INDUSTRIAL CLASSIFICATION)
• CA — State of Incorporation (STATE OF INCORPORATION)

Key Players & Entities

• MCGRATH RENTCORP (company) — FILER
• MGRC (company) — tk
• 2024-02-21 (date) — FILED AS OF DATE
• 2023-12-31 (date) — CONFORMED PERIOD OF REPORT
• 7359 (industry_code) — STANDARD INDUSTRIAL CLASSIFICATION
• CA (location) — STATE OF INCORPORATION
• 925-606-9200 (phone) — BUSINESS PHONE
• DesignSpaceSolutionsHoldingsInc (company) — subsidiary/acquisition

FAQ

Key Dates

• 2023-12-31: Fiscal Year End — End of reporting period for the 10-K.
• 2024-02-21: Filing Date — Date the 10-K was officially submitted to the SEC.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (This is the primary document filed by McGrath RentCorp detailing its fiscal year 2023 activities.)

Unsecured Revolving Credit Facility

A type of credit facility that allows a company to borrow, repay, and re-borrow funds up to a certain limit, without requiring specific collateral. (Indicates a source of flexible financing for McGrath RentCorp's operations and potential growth.)

Senior Notes

Debt instruments issued by a company that rank higher in priority than subordinated debt but lower than secured debt in the event of bankruptcy or liquidation. (Represents a significant portion of the company's long-term debt obligations.)

Key Financial Figures

• $268.0 million — ok Industries, for a cash sale price of $268.0 million. The consolidated financial statements
• $437.2 m — solutions, for a cash purchase price of $437.2 million, subject to certain adjustments.
• $123 — ed into the right to receive either (1) $123 in cash (the "Per Share Cash Considerat
• $0 — sable shares of common stock, par value $0.0001, of WillScot Mobile Mini (the "Wil
• $5.0 billion — with an aggregate original cost of over $5.0 billion. Mobile Modular's largest business segm

Filing Documents

• mgrc-20231231.htm (10-K) — 4498KB
• mgrc-ex3_2.htm (EX-3.2) — 116KB
• mgrc-ex10_6.htm (EX-10.6) — 143KB
• mgrc-ex21_1.htm (EX-21.1) — 5KB
• mgrc-ex23_1.htm (EX-23.1) — 4KB
• mgrc-ex31_1.htm (EX-31.1) — 14KB
• mgrc-ex31_2.htm (EX-31.2) — 14KB
• mgrc-ex32_1.htm (EX-32.1) — 8KB
• mgrc-ex32_2.htm (EX-32.2) — 8KB
• mgrc-ex97.htm (EX-97) — 14KB
• 0000950170-24-017876.txt (&nbsp;) — 17816KB
• mgrc-20231231.xsd (EX-101.SCH) — 2113KB
• mgrc-20231231_htm.xml (XML) — 3740KB

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS Management cautions that forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties that could cause our actual results to differ materially from those projected in such forward-looking statements. Further, our future business, financial condition and results of operations could differ materially from those anticipated by such forward-looking statements and are subject to risks and uncertainties as set forth under "Risk Factors" in this Form 10-K. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. Forward-looking statements are made only as of the date of this Form 10-K and are based on management's reasonable assumptions, however these assumptions can be wrong or affected by known or unknown risks and uncertainties. No forward-looking statement can be

BUSINESS

ITEM 1. BUSINESS. General Overview McGrath RentCorp (the "Company") is a California corporation organized in 1979 with corporate offices located in Livermore, California. The Company's common stock is traded on the NASDAQ Global Select Market under the symbol "MGRC". References in this report to the "Company", "we", "us", and "ours" refer to McGrath RentCorp and its subsidiaries, unless the context requires otherwise. The Company is a diversified business-to-business rental company with three rental divisions: relocatable modular buildings, portable storage containers and electronic test equipment. Although the Company's primary emphasis is on equipment rentals, sales of equipment occur in the normal course of business. At December 31, 2023, the Company was comprised of four reportable business segments: (1) its modular building segment ("Mobile Modular"); (2) its portable storage container segment ("Portable Storage"); (3) its electronic test equipment segment ("TRS-RenTelco"); and (4) its classroom manufacturing business selling modular buildings used primarily as classrooms in California ("Enviroplex"). On February 1, 2023, the Company completed the sale of its former liquid and solid containment segment ("Adler Tanks"), to Ironclad Environmental Solutions, Inc., a portfolio company of Kinderhook Industries, for a cash sale price of $268.0 million. The consolidated financial statements present the historical financial results of the former Adler Tanks segment as discontinued operations for all periods presented. On the same date, the Company acquired Vesta Housing Solutions Holdings, Inc. ("Vesta Modular"), a portfolio company of Kinderhook Industries, that was a leading provider of temporary and permanent modular space solutions, for a cash purchase price of $437.2 million, subject to certain adjustments. The financial results of Vesta Modular were a part of the Mobile Modular segment since February 1, 2023. Proposed Acquisition by WillScot Mobile Mini

View Full Filing

View this 10-K filing on SEC EDGAR