Livermore, CA-based McGrath RentCorp (NASDAQ:MGRC) has officially decreased the number of directors on its board from seven to six, according to a recent SEC filing. The change, effective as of October 15, 2024, was approved by the company's Board of Directors as part of an amendment and restatement of the company's bylaws.
The amended bylaws stipulate that the company's board will maintain a number of directors not fewer than five and not more than nine. This adjustment to the company's governance structure was the sole change made in the latest amendment of the bylaws.
The filing, made on Friday, October 18, 2024, provides the full text of the Amended and Restated Bylaws as an exhibit, which includes the detailed changes to Section 3.02 regarding the fixed number of directors.
McGrath RentCorp, which operates in the equipment rental and leasing sector under the SIC code 7359, has not provided any specific reason for the reduction in board size in the filing. The company, incorporated in California, has its principal executive offices at 5700 Las Positas Road, Livermore, CA.
In other recent news, McGrath RentCorp, a diversified business-to-business rental company, reported mixed second-quarter results for 2024. The company saw an increase in rental and sales revenues by 3% and 14% respectively. However, decreases were observed in the Portable Storage and TRS-RenTelco divisions. McGrath RentCorp also announced a quarterly cash dividend of $0.475 per common share, marking the 33rd consecutive year of dividend increases.
Following the termination of a merger with WillScot (NASDAQ:WSC) Holdings, McGrath received a $180 million termination fee and expanded its common stock repurchase program to 2 million shares. Additionally, Oppenheimer reinstated coverage on McGrath RentCorp shares, upgrading the stock to an Outperform rating.
In corporate changes, the company announced the departure of Elizabeth A. Fetter, its first female independent director, after more than ten years of service. Lastly, the company has scheduled its 2024 Annual Meeting of Shareholders on December 12, 2024, with revised deadlines for shareholder proposals.
InvestingPro Insights
McGrath RentCorp's recent decision to reduce its board size comes against a backdrop of solid financial performance and shareholder-friendly policies. According to InvestingPro data, the company boasts a market capitalization of $2.67 billion and has demonstrated impressive revenue growth of 19.55% over the last twelve months as of Q2 2024. This growth is complemented by a robust gross profit margin of 48.33%, indicating efficient cost management.
InvestingPro Tips highlight McGrath RentCorp's commitment to shareholder returns, noting that the company has raised its dividend for 27 consecutive years and maintained dividend payments for 35 consecutive years. This track record of consistent dividend growth aligns well with the company's governance adjustments, suggesting a focus on streamlined decision-making and operational efficiency.
The company's financial health appears strong, with InvestingPro Tips pointing out that liquid assets exceed short-term obligations, providing financial flexibility. Additionally, analysts predict profitability for the current year, which is supported by the company's positive performance over the last twelve months.
For investors interested in a deeper analysis, InvestingPro offers 7 additional tips that could provide further insights into McGrath RentCorp's investment potential.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.