On this page of StockholderLetter.com we present the latest annual shareholder letter from MCGRATH RENTCORP — ticker symbol MGRC. Reading current and past MGRC letters to shareholders can bring important insights into the investment thesis.
Letter to Shareholders 202 Annual Meeting of Shareholders Notice and Proxy Statement 202 Annual Report on Form 10-K
Dear Shareholders, I want to start by acknowledging that 2024 was a year with some challenges, but also one where we were able to demonstrate perseverance and our commitment to long-term growth. We navigated some tough market demand conditions and the distractions of the terminated merger with WillScot. Through it all, we executed solidly and are well-positioned for future growth and success. We came through stronger, more resilient, and independent as ever. We also celebrated the year-end with two impressive milestones. We celebrated McGrath s 40th anniversary as a Nasdaq-listed company and announced an increase in the company s dividend for the 34th consecutive year, retaining the rare distinction of being one of just 137 publicly listed companies that are referred to as Dividend Champions. Both these milestones demonstrate McGrath s impressive longevity and shareholder focus as a public company. We have honed our culture and customer experience over decades, resulting in many loyal and appreciative customers, team members, and shareholders. We have managed our company responsibly over the years, through many market ups and downs. We have also built a depth of leadership and strategic management with a strong commitment to growing shareholder value. Strong Financial Performance For the full year 2024, we reported total revenue of $911 million, adjusted EBITDA of $352 million, and adjusted earnings per share of $5.93. This strong performance enabled us to make capital investments of $191 million in new rental equipment and pay $47 million in shareholder dividends. I am very proud of the results we delivered in 2024. Our 10% growth in both revenue and adjusted EBITDA reflects a diligent focus on execution. The modular business had a strong year, and we made solid progress with our growth initiatives, which include providing broader solutions for our customers and expanding our regional coverage. We have a simple set of priorities for the enterprise: grow the company responsibly, deploy capital in a disciplined way, and build value for our shareholders over time. Strategic Growth We have positioned McGrath to grow our modular and portable storage businesses that have multiple growth opportunities. We are a leader in education modular building rentals, and we have a strong commercial rental business serving many different segments. We have the fleet and expertise to execute complex projects with virtually any customer in any industry. Shareholder Letter I am writing this annual letter to you with deep appreciation for your investment in McGrath RentCorp (Nasdaq: MGRC).
A few highlights that set us apart: Shareholder Letter We excel at providing solutions to customers and not simply renting them a temporary space. We provide accessories inside our buildings to make the unit more functional for the client (Mobile Modular Plus) as well as site work outside the building (Site Related Services) to enable the customer to streamline their project and reduce the number of subcontractors they must manage. Our distinctive production centers have the capabilities to customize, maintain, and refurbish our fleet with experienced inhouse production crews. Our sales and operations teams are experts in product applications and know the local market codes and requirements well. They provide excellent service and are located in close proximity to our customers so they can respond quickly to customer needs. We have a very capable and experienced custom sales solutions team, including sales representatives, project managers, and site superintendents, who handle large and complex projects on a nationwide basis. We have unique capabilities to enable customers to configure a building easily and quickly via our digital offerings, including placing furniture and accessories inside the building. Our customer feedback scores are world-class, validating that we are customer-focused in our interactions. Disciplined Capital Allocation Our strong balance sheet, cash flow, and resilient business model provide a sound financial foundation to support our current business operations and future growth. We strive for appropriate leverage and invest cash responsibly. Our disciplined capital allocation decision-making means investments must meet a high bar for financial return achievement. We make organic investments and acquisitions to deploy growth capital and maintain a flexible balance sheet to enable us to execute smart M&A. Our decision-making process is dynamic and reflective of current conditions. For instance, we ended 2024 with modular fleet utilization at 75%, which means we enter 2025 with more fleet available to meet rental demand than a year ago. Consequently, our plans for 2025 include an expected shift from capital spending to operating expense as we fulfill customer orders with existing fleet. Shareholder Focus Our unwavering focus and commitment to growing shareholder value is demonstrated by a shareholder return of 16% CAGR (Cumulative Average Growth Rate), based on our 1984 IPO and through 12/31/24 assuming reinvestment of dividends (which we have grown for 34 consecutive years, as previously highlighted). We value our shareholders, and we remain honored by your ongoing relationship and trust in us to manage McGrath responsibly.
Looking Ahead Across McGrath, we entered 2025 confident that our strategy is sound, and we are well-positioned to execute. We are hopeful that market demand will stabilize for Portable Storage and, also, that early positive demand improvement signs across both general purpose and communications equipment rentals for our TRS-RenTelco business will continue in 2025. A key driver for our performance in 2025 and beyond will be the demand environment. We will be working hard to build momentum as the year progresses. We will be closely monitoring market trends and customer demand to ensure we are making the right decisions to meet customer needs as the year unfolds. I consider it a privilege to lead McGrath. As we look ahead, for 2025, we will be working hard to continue to grow our business while maintaining our focus on this simple set of priorities. 2025 Shareholders Meeting Our Annual Meeting of Shareholders is scheduled for June 4, 2025, as a virtual meeting (via live audio webcast) format only. The details of how shareholders can participate in our virtual Annual Meeting are included in the proxy materials that accompany this letter. On behalf of McGrath s leadership team and our nearly 1,300 employees, I want to thank each of you for your investment in the company. With an experienced leadership team, track record of execution, strong balance sheet, and healthy free cash flow generation, we continue to be well-positioned for long-term growth. Sincerely, Joe Hanna President and Chief Executive Officer Shareholder Letter We will continue with our focus on the Mobile Modular business with multiple growth initiatives, including a focus on increasing our geographic coverage. Our current market presence includes 38 of the 50 United States. We have opportunities for additional long-term growth in several regional markets. As we develop these growth opportunities, we are investing in increased sales team coverage and will be accompanying that with prudent equipment purchases to meet order volumes.
 • shareholder letter icon 4/23/2025 Letter Continued (Full PDF)
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 • stockholder letter icon 6/10/2024 MGRC Stockholder Letter
 • stockholder letter icon 10/30/2024 MGRC Stockholder Letter
 • stockholder letter icon More "Business Services & Equipment" Category Stockholder Letters
 • Benford's Law Stocks icon MGRC Benford's Law Stock Score = 83


MGRC Shareholder/Stockholder Letter Transcript:

Letter to Shareholders
202  Annual Meeting of Shareholders
Notice and Proxy Statement
202  Annual Report on Form 10-K


Dear Shareholders,
I want to start by acknowledging that 2024 was a year with some challenges, but also one where we were able to demonstrate
perseverance and our commitment to long-term growth. We navigated some tough market demand conditions and the distractions of
the terminated merger with WillScot. Through it all, we executed solidly and are well-positioned for future growth and success. We
came through stronger, more resilient, and independent as ever. We also celebrated the year-end with two impressive milestones.
We celebrated McGrath   s 40th anniversary as a Nasdaq-listed company and announced an increase in the company   s dividend for the
34th consecutive year, retaining the rare distinction of being one of just 137 publicly listed companies that are referred to as Dividend
Champions. Both these milestones demonstrate McGrath   s impressive longevity and shareholder focus as a public company.
We have honed our culture and customer experience over decades, resulting in many loyal and appreciative customers, team
members, and shareholders. We have managed our company responsibly over the years, through many market ups and downs. We
have also built a depth of leadership and strategic management with a strong commitment to growing shareholder value.
Strong Financial Performance
For the full year 2024, we reported total revenue of $911 million, adjusted EBITDA of $352 million, and adjusted earnings per share of
$5.93. This strong performance enabled us to make capital investments of $191 million in new rental equipment and pay $47 million in
shareholder dividends.
I am very proud of the results we delivered in 2024. Our 10% growth in both revenue and adjusted EBITDA reflects a diligent focus on
execution. The modular business had a strong year, and we made solid progress with our growth initiatives, which include providing
broader solutions for our customers and expanding our regional coverage.
We have a simple set of priorities for the enterprise: grow the company responsibly, deploy capital in a disciplined way, and build
value for our shareholders over time.
Strategic Growth
We have positioned McGrath to grow our modular and portable storage businesses that have multiple growth opportunities. We are a
leader in education modular building rentals, and we have a strong commercial rental business serving many different segments. We
have the fleet and expertise to execute complex projects with virtually any customer in any industry.
Shareholder Letter
I am writing this annual letter to you with deep appreciation for your investment in McGrath RentCorp (Nasdaq: MGRC).

A few highlights that set us apart:
Shareholder Letter





We excel at providing solutions to customers and not simply renting them a temporary space. We provide accessories inside
our buildings to make the unit more functional for the client (Mobile Modular Plus) as well as site work outside the building
(Site Related Services) to enable the customer to streamline their project and reduce the number of subcontractors they must
manage.
Our distinctive production centers have the capabilities to customize, maintain, and refurbish our fleet with experienced inhouse production crews.
Our sales and operations teams are experts in product applications and know the local market codes and requirements well.
They provide excellent service and are located in close proximity to our customers so they can respond quickly to customer
needs.
We have a very capable and experienced custom sales solutions team, including sales representatives, project managers, and
site superintendents, who handle large and complex projects on a nationwide basis.
We have unique capabilities to enable customers to configure a building easily and quickly via our digital offerings,
including placing furniture and accessories inside the building.
Our customer feedback scores are world-class, validating that we are customer-focused in our interactions.
Disciplined Capital Allocation
Our strong balance sheet, cash flow, and resilient business model provide a sound financial foundation to support our current business
operations and future growth. We strive for appropriate leverage and invest cash responsibly. Our disciplined capital allocation
decision-making means investments must meet a high bar for financial return achievement. We make organic investments and
acquisitions to deploy growth capital and maintain a flexible balance sheet to enable us to execute smart M&A.
Our decision-making process is dynamic and reflective of current conditions. For instance, we ended 2024 with modular fleet
utilization at 75%, which means we enter 2025 with more fleet available to meet rental demand than a year ago. Consequently, our
plans for 2025 include an expected shift from capital spending to operating expense as we fulfill customer orders with existing fleet.
Shareholder Focus
Our unwavering focus and commitment to growing shareholder value is demonstrated by a shareholder return of 16% CAGR
(Cumulative Average Growth Rate), based on our 1984 IPO and through 12/31/24 assuming reinvestment of dividends (which we
have grown for 34 consecutive years, as previously highlighted).
We value our shareholders, and we remain honored by your ongoing relationship and trust in us to manage McGrath responsibly.

Looking Ahead
Across McGrath, we entered 2025 confident that our strategy is sound, and we are well-positioned to execute.
We are hopeful that market demand will stabilize for Portable Storage and, also, that early positive demand improvement signs across
both general purpose and communications equipment rentals for our TRS-RenTelco business will continue in 2025.
A key driver for our performance in 2025 and beyond will be the demand environment. We will be working hard to build momentum
as the year progresses. We will be closely monitoring market trends and customer demand to ensure we are making the right decisions
to meet customer needs as the year unfolds.
I consider it a privilege to lead McGrath. As we look ahead, for 2025, we will be working hard to continue to grow our business while
maintaining our focus on this simple set of priorities.
2025 Shareholders Meeting
Our Annual Meeting of Shareholders is scheduled for June 4, 2025, as a virtual meeting (via live audio webcast) format only. The
details of how shareholders can participate in our virtual Annual Meeting are included in the proxy materials that accompany this
letter.
On behalf of McGrath   s leadership team and our nearly 1,300 employees, I want to thank each of you for your investment in the
company. With an experienced leadership team, track record of execution, strong balance sheet, and healthy free cash flow generation,
we continue to be well-positioned for long-term growth.
Sincerely,
Joe Hanna
President and Chief Executive Officer
Shareholder Letter
We will continue with our focus on the Mobile Modular business with multiple growth initiatives, including a focus on increasing our
geographic coverage. Our current market presence includes 38 of the 50 United States. We have opportunities for additional long-term
growth in several regional markets. As we develop these growth opportunities, we are investing in increased sales team coverage and
will be accompanying that with prudent equipment purchases to meet order volumes.



shareholder letter icon 4/23/2025 Letter Continued (Full PDF)
 

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