LIVERMORE, Calif. - McGrath RentCorp (NASDAQ:MGRC), a prominent North American business-to-business rental company, announced the departure of Elizabeth A. Fetter from its board of directors. Fetter resigned for personal reasons on Thursday, after more than ten years of service.
Elizabeth Fetter, who was McGrath's first female independent director, played a significant role in the company's board operations. Her tenure included time as chair of the compensation committee, and she was instrumental in efforts to diversify the board. Fetter's contributions extended to the human resources and compensation functions within the company.
Bradly M. Shuster, chairman of the McGrath board, expressed gratitude for Fetter's contributions and dedication to the company over her decade-long tenure. "On behalf of the board and the company, I would like to thank Liz for her long service to McGrath and we wish her the best in her future pursuits," Shuster stated.
Reflecting on her time at McGrath, Fetter remarked on the growth and accomplishments she witnessed at the company, expressing pride in her work with the board, management team, and employees, and optimism for McGrath's future.
Founded in 1979, McGrath RentCorp specializes in modular solutions through its Mobile Modular and Mobile Modular Portable Storage businesses, as well as electronic test equipment rentals via its TRS-RenTelco division. The company has a noted history of profitability and growth, emphasizing customer experience and sustainable business practices. McGrath has consistently increased its annual dividend to shareholders for over 30 years, highlighting its financial stability and shareholder commitment.
The company, based in Livermore, California, continues to focus on providing exceptional service and rental solutions that contribute to a circular supply economy. This departure is reported based on a press release statement from McGrath RentCorp.
In other recent news, McGrath RentCorp reported a mixed second quarter for 2024. The company saw increases in rental and sales revenues, with overall rental revenues up by 3% and sales revenues rising by 14%. However, certain divisions experienced decreases, with rental revenues for the Portable Storage and TRS-RenTelco divisions falling by 4% and 11% respectively.
Notably, the Mobile Modular division showed strength, particularly in rental revenues from the commercial and education sectors, which increased by 10%. McGrath RentCorp is also in the midst of a pending merger with WillScot (NASDAQ:WSC) Mobile Mini (NASDAQ:MINI_old), which is currently under review by the Federal Trade Commission.
These are recent developments and reflect the company's current financial position. However, due to the ongoing FTC review, McGrath RentCorp has not provided any forward-looking financial guidance. It is worth noting that despite the mixed results, the company's adjusted EBITDA grew by 9% and rental backlog increased by 24% from the previous year.
InvestingPro Insights
As McGrath RentCorp (NASDAQ:MGRC) bids farewell to a key board member, Elizabeth A. Fetter, the company's financial health and market performance remain crucial for investors monitoring the transition. McGrath RentCorp, known for its strong track record in the rental industry, has demonstrated impressive growth and profitability metrics that could signal continued stability amidst board changes.
According to recent data from InvestingPro, McGrath RentCorp boasts a market capitalization of approximately $2.5 billion. The company's gross profit margins have been notably robust, sitting at 48.33% for the last twelve months as of Q2 2024, which underscores its efficiency in managing costs relative to its revenue. This aligns with the company's commitment to sustainable business practices and could be a reassuring factor for investors concerned about the impact of Fetter's departure on the company's operations.
Investors may also find comfort in McGrath's long history of dividend reliability, as it has maintained dividend payments for an impressive 35 consecutive years. In fact, McGrath RentCorp has raised its dividend for 26 consecutive years, which is a testament to its financial stability and shareholder commitment. The dividend yield as of mid-July 2024 stands at 1.78%, with a modest dividend growth of 2.15% over the last twelve months leading up to Q2 2024.
For those interested in the volatility of McGrath's stock, it generally trades with low price volatility, which could be a key consideration for risk-averse investors. Despite the recent change in the board's composition, the company's historical performance and financial stability may provide a sense of continuity and assurance.
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