McGrath Rentcorp (NASDAQ:MGRC) Q2 2020 Earnings Conference Call - Final Transcript

Jul 29, 2020 • 05:00 pm ET


McGrath Rentcorp (NASDAQ:MGRC) Q2 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by. Welcome to the McGrath RentCorp Second Quarter 2020 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 call is being recorded today, Wednesday, July 29, 2020. Before we begin, note that the matters that 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 third quarter 2020 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.

Furthermore, it should be noted that the impact of the COVID-19 pandemic continues to evolve. As such, the full magnitude that pandemic will have on the company's financial condition, liquidity and future results of operations is uncertain. The following discussion by management about the company's financial condition is subject to the future effects of the COVID-19 pandemic. In addition to the COVID-19 pandemic, 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 Form 10-Q.Speaking today will be Joe Hanna, Chief Executive Officer, and Keith Pratt, Chief Financial Officer. I would now turn the call over to Mr. Hanna. Go ahead, sir.

Joseph F. Hanna

Thank you, Catherine.

Good afternoon and thank you for joining us on today's call. I will start the call with some overall remarks and comment on our second quarter 2020 performance and our look ahead. Keith will provide additional detail in his financial review and outlook comments.

The second quarter brought with it unprecedented and challenging conditions for us to navigate, through which we were able to deliver adjusted EBITDA growth of 11%. The COVID-19 pandemic resulted in some customer project work stopping and then starting, our workforce transition to new safety and operating protocols, myriad additional federal, state and local guidelines to follow, and uncertainty at every turn. Nevertheless, we adapted quickly and delivered good results. Everyone in the company stepped up and put our customers first, preparing, delivering and returning equipment throughout the quarter without missing a beat. Overall, our workforce remained safe and healthy during the quarter.

Here are some of the highlights. Mobile Modular rental revenues grew 4%. During the quarter, most of our education projects progressed on schedule and without significant disruptions. Some school districts were able to accelerate schedules due to empty campuses. We closed out a number of education classroom sale projects at