Mcgrath Rentcorp (MGRC) has reported 21.43 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $7.97 million, or $0.33 a share in the quarter, compared with $6.57 million, or $0.27 a share for the same period last year.
Revenue during the quarter went up marginally by 1.21 percent to $94.84 million from $93.70 million in the previous year period. Gross margin for the quarter expanded 266 basis points over the previous year period to 46.05 percent. Total expenses were 83.32 percent of quarterly revenues, down from 84.78 percent for the same period last year. This has led to an improvement of 147 basis points in operating margin to 16.68 percent.
Operating income for the quarter was $15.82 million, compared with $14.26 million in the previous year period.
Adjusted EBITDA for the quarter was almost stable at $36.26 million, when compared with the prior year period. At the same time, adjusted EBITDA margin contracted 32 basis points in the quarter to 38.23 percent from 38.55 percent in the last year period.
Joe Hanna, president and chief executive officer of McGrath RentCorporation, made the following comments regarding these results and future expectations: “We were pleased with our first quarter performance as each of our rental businesses achieved higher operating profit and contributed to the Company’s 11% operating profit increase compared to a year ago.
For financial year 2017, the company forecasts operating income to grow in the range of 3 percent to 5 percent.
Operating cash flow drops significantlyMcgrath Rentcorp has generated cash of $25.83 million from operating activities during the quarter, down 34.66 percent or $ 13.70 million, when compared with the last year period. The company has spent $16.24 million cash to meet investing activities during the quarter as against cash outgo of $17.60 million in the last year period. It has incurred net capital expenditure of $16.24 million on net basis during the quarter, down 7.69 percent or $1.35 million from year ago period.
The company has spent $8.73 million cash to carry out financing activities during the quarter as against cash outgo of $21.96 million in the last year period.
Cash and cash equivalents stood at $1.68 million as on Mar. 31, 2017, up 58.19 percent or $0.62 million from $1.06 million on Mar. 31, 2016.
Working capital turns negative
Working capital of Mcgrath Rentcorp has turned negative to $639.88 million on Mar. 31, 2017 from positive $1.06 million on Mar. 31, 2016.
Days sales outstanding went up to 94 days for the quarter compared with 52 days for the same period last year.
Debt comes downMcgrath Rentcorp has recorded a decline in total debt over the last one year. It stood at $323.84 million as on Mar. 31, 2017, down 11.46 percent or $41.93 million from $365.77 million on Mar. 31, 2016. Short-term debt stood at $323.84 million as on Mar. 31, 2017. Total debt was 28.64 percent of total assets as on Mar. 31, 2017, compared with 32.30 percent on Mar. 31, 2016. Debt to equity ratio was at 0.82 as on Mar. 31, 2017, down from 0.96 as on Mar. 31, 2016. Interest coverage ratio improved to 5.67 for the quarter from 4.01 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
