MGRC - Earnings call transcript Q1 2020

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the McGrath RentCorp First Quarter 2020 Conference Call. At this time all 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, April 29, 2020.

meaning that that the historical prospects XXXX, are forward-looking relating within company's note be management facts the including begin, Securities to as statements today Private targets. well XXXX or discussing not the financial statements we regarding the Act strategies, total company matters will are Litigation our Before Reform the company of outlook of expectations, statements statements of as involve not differ These and of projected. guarantees significant forward-looking and our to risks that performance results are materially cause could statements uncertainties future those actual from

Furthermore, the COVID-XX should impact pandemic of you the notice that evolve. continues to full

The full financial with company's the and the of to liquidity is following such, will have management uncertain. subject effect results magnitude about the discussion financial the condition the by company's condition, COVID-XX on the future future As is pandemic. pandemic operations

In expectations Factors addition results other pandemic, materially actual COVID-XX XX-K Form differ from SEC factors disclosed cause could and filings. are important that to the company's the the under company's to in Risk

hereof. statements date as to any statements. made as otherwise we only no of update forward-looking the by obligation are assume required Forward-looking law, Expect

release the the XX-Q. on issued the also filed company with to addition X-K and In SEC press release earnings Form the today, Form the

today be Financial Chief Joe Executive Hanna, Officer. Officer; Speaking will Chief and Keith Pratt,

to Please ahead, go Hanna. call Mr. will now turn over the I sir.

Joe Hanna

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

the our remark the health to transitioned six like weeks over to I guidelines performance, working COVID-XX safety health with quarter of priority. compliance top ensure placed protocols very relating as members we have local and national we to first health-related our as and many members and team would We environment made on to operating a different to past team the a the are have reviewing pandemic. our Before changes that in our of

to the fortunate serve ready additional requirements. are at adhering and across they our business operational board that therefore companies dedicated Many and We of and is all deemed ensured are while are we a we that customers remained safety projects to are the to have the work. and essential team supporting

turn So our first XXXX now to quarter performance. let's

Mobile in our of we projects modernization Modular in very markets. well and classroom healthy previous for serve markets education equipment test rentals. a growth consistent to as both population First, and markets the purpose was many quarter, commercial general quarters. delivered broad-based continue and TRS-RenTelco, solid as was demand robust with infrastructure our Student demand At drive

At weakness the as support oil demand underway roll-outs. levels. activity see business, bandwidth oil thus On infrastructure was XG reducing expansion we of and to for to worldwide and gas in continue communication for side the Adler, related industries slowed

Mobile At being as I due time, uncertainty. adjusting would current most a our is of in to address real demand are few vacant. projects to planned, in to schools be Customers earlier environment. education starting appear there lot Modular, a the conditions their and are proceeding so like some even now plans of

in out geography. the construction It construction others by until proceeding, to on changes projects, instance commercial getting year delaying varying appears are to opposed plans. as is while are the and Some are pushed majority that in projects this of later canceling the balance

our and At are of customers contractor support. expecting are many working our defense semiconductor TRS, and

that cancellations currently the have installation resulting Some we we believe of are job contractors pushing new XG infrastructure as lifted. social projects back Work in work on restrictions major but distancing higher shelter normal as not adjust expect new to will had equipment in slowed than but have in place returns the field requirements, fewer to be are has planned. shipments, out many carriers and significant do

imbalance. oil of felt from oil the clarity is refinery ripple projects are delayed not seeing markets, cancellations and an is with lack at being to of work supply the projects. upstream less Many prices now projects the while we collapse and Adler, construction future with we chain unprecedented but and are through only delaying, downstream industry At this gas wellhead are supply support point. X% of division being the revenues, starts activity environmental as on deals other many from demand In work rental believe

light customers of the uncertainty our relating is information receiving fluid high. is we I conditions. are on that Therefore, would to dependent market emergency Projects very COVID-XX to and from unpredictable like stress level the directly speak many back depends been the projects but a support of economy and on people with no broad to pace scale. the material Recovery getting of. on to inquiries success restarting have work and

in We term our geographic if markets. shelter-in-place continue are conditions expecting longer demand challenging restrictions and near possibly

environment, are operating are it. changes our we with we the along in Given seeing adjusting

have delayed projects, year, extraneous top plans critical taken reduced for which be will and reduce reduced. to slowing expenditures, less curtailed all to examined We closely expenses due hiring, the We've steps a CapEx line. our

to have if I an like home the and have work our this. quickly operating would and team can field transitioned conditions. a pandemic-related teams also more stringent business to they about members few successfully from like our stress durability economic demand of under to RentCorp ability We supporting McGrath weather and things storm

have leadership divisions. We and have relationships our customer long-term seasoned running we teams many

and that support our very team a business operations. are support each group have financial ongoing dedicated to And foundation together and other. all to customers also We well that of tying a work strong members is

is for the as we progresses. environment hope improving While year conditions stabilizing difficult, the and current

to review. Now, let Keith, call who our the over take you turn me financial will through

Keith Pratt

our comments, service customers. to primary team pandemic Thank health began safety the you, and been Joe. has the Picking on members US COVID-XX up business significantly of on Joe's focus to our then impact since the and our continuity

to all of delivering operating with which did very pleased. They results also job have while first temporary done quarter this, a adapt quickly teams new the strong Our in were norm. moving hopefully we great to

first I'm turn comments to COVID-XX XX-Q remarks, to financial managing respect section uncertainties. Please factors. to are quarter our current In earnings refer for press of details health with Joe's the then we recap going briefly more prepared the and risk through quarter to on expanding and our how highlights, this our first results release next

million X% For the the a revenues increase The first operating $XXX $X.X quarter quarter year to revenues, and $X Net in X% a million and for profit ago. rental profit $X.X was to gross X% $XXX.X driven in from on decrease from of $X.XX $X.XX. gross million diluted million million share by profit $XX.X increase revenues. partly rental-related increase sales gross profit XXXX, in per increased revenues from increased services X% from income offset total million million company's a to increased earnings by on $XX.X

XX% rental our or from will by down operating rental performance quarter Modular reviewing to XX% minimal to the the rent. in increased a divisions revenues Sales revenues new on X% services rates million, from rental-related $XX.X break $X.X had by and improvement total $X.X Rental for quarter Now, results revenues. which compared X% COVID-XX Mobile driven of quarter a decreased or equipment pandemic higher offset ago, average I during revenues million, equipment million revenues and impact X% Each first first rental on and sales sales. rental division the increased by results XXXX. lower of the lower on was of XXXX. higher partly year average

comparable business. as Storage as Equipment preparation Rental education in and in a our to included at was healthy Portable operations costs ago markets growth was revenue $XX.X well across other year direct our rental commercial costs million. of

result, increase was million, utilization of rental margins equipment for $XX a was an first decreased to to XX% Average from rental XX.X%. As million. Average modular the increased the which quarter for quarter slightly $XXX XX%. fleet

on reflect At to equipment rental million, TRS-RenTelco, compared lower rent, saw equipment rental We shift communications partly by revenues. rentals an that increased and XX% increased general rental average purpose from equipment. for increase increased revenues for utilization was the million. was driven both mix the of by from higher to more quarter primarily electronics first XX.X% XX% for $XX general X% million, offset rental million The margins by purpose rates to revenues which test quarter partly transactions to average rental Average $X.X rates. decreased have XX% equipment tend sales or average to in equipment XX%. a XX.X%. which quarter on longer-term from Average lower Rental offset revenues, $XXX Rental higher towards total lower revenues XX%, $XX.X growth communications rentals. was the

partly revenue million sales Adler offset to decreased on Rentals, to equipment million, higher to $X.X rates. utilization At from total oil quarter negatively million, rent, markets on gas, Rental equipment average quarter. XX% by believe quarter average lower five offset from decreased which which services revenues decrease lower XX% revenues six market demand XX%. from Average X% lower and was segments we was end Tank rental XX% Rental for upstream revenues. revenues, or was was primarily $XX.X rental and rental-related revenues in XX%, rental by reflected monthly higher decreased quarter weaker the which $X increase decreased the with first XX.X%. an year's the having $XXX first Adler's for other our partly to impacted compared rental margins XX.X% average of for which of million. last The also rental

Selling of XX% costs. X% to and remainder salaries X% $X.X of and the XX% expenses employee of result be on my quarter will first interest expense million, lower basis. for administrative on average and as debt increased decrease a $X.X the a average levels. due total $XX or net company benefit a million, rates Interest lower primarily was Moving to increased million, comments XXXX

of provision XX.X% effective based to XX.X% earlier. on The income tax rate first which of quarter XXXX an compared taxes, a year for

cash mostly operating highlights $XX.X shareholders to payments of increase compared dividend net cash equipment Modular and $X.X XXXX Mobile $X.X million and TRS-RenTelco; activities were We purchases million. plant flow $XX.X million, rental for XXXX. million, at were to year-to-date $X.X million was include provided property, equipment and purchases by an Our invested

XXX,XXX of price of repurchases $X.X an to were $XX.XX an quarter, be These opportunistic price company range. per the the repurchased or we During advantage stock, believe totaling shares of taking common average share. what million attractive

capacity EBITDA Just million Net months the to over decreased the ratio to to million company $X.X borrowings no XXXX. XX of for of repurchase. credit end, repurchases shares quarter lines had X.X At X. additional to million were during adjusted under quarter. the borrow last X.XX funded the during actual and $XXX.X authorized was its an million There debt $XXX.X remain

ago. First XX% a quarter to year compared XX% year consolidated And EBITDA to XX% $XX.X XXXX ago. Adjusted adjusted to a EBITDA million increased margin compared was

of and release. press EBITDA quarter's adjusted of the in included to adjusted definition are a reconciliation income EBITDA Our net

XXst, shelf through on terms This the agreement expand important comments COVID-XX XXXX. been private that financial April an credit Turning renewal Xst, amended be to with now we we the debt $XXX determined note notes at The million for extend with On taken of uncertainty and agreement Joe's any our such manage The of have Prudential restated $XXX to additional current announced that time million and and most syndicate five-year new liquidity $XXX issued. on are up of maturities. of On March allows entered the Xrd, to into issuance banks. Capital. to COVID-XX. on notes to secure a purchase we additional matures an Private million senior steps announced facility have to April facility we related

we conditions. all align we and near-term demand. From under of by COVID-XX with closely current certain discussed, managing spending lower are aspects Joe cash budgets capital have perspective, to As our reviewed a flows less financial operations resetting the

in respond While priorities our many operating in operations, spending branch changes, have our fixed costs to while term to near operational many our the teams are flexibility working. customers are reset still local support to relatively of demand market budgets who order and across retaining

impact did results. delay COVID-XX As significant business first new quarter projects. earlier, we Nevertheless, recent equipment some fewer a on as trends mentioned not indicate shipments customers of have

term, at a our in to contracts this providing term of the significant rental not related As rental TRS higher-velocity in the slower, Modular rental the is rental shorter rental revenues Consequently, previously pandemic, at while and revenue rental is we Adler, and The drop quarter. size longer to given likely updated guidance of result, we first Mobile turnover The revenues time. to more COVID-XX operations near-term to decline evolving accurately rapidly compared reduction revenues duration be impact expected to possible to at the at XXXX its given expect and near-term withdrawing at not economic and our time. uncertainty its the be this are an outlook circumstances forecast issued are contracts. and

Finally, please in some pillars the of financial important mind, company's keep in the foundation.

cycles. have have company, result Generally, been capital year many leverage resilient we our As economic to of we challenging or a structure. more managed shocks a cycles believe old lower as through XX-plus we

cash we slowdowns, profitability by reduction typically the the business. capital economic lower During is experience more near-term in than flows for healthy spending free offset as needs

achieved have market we annual our dividend addition, a XX-year of In history shocks. cycles through increasing and prior

a that quickly serve works act maintain Reiterating Joe's adapts have to to and earlier to hard reflections, a we customers health. financial new long-term circumstances, smartly company's the culture team and

We COVID-XX of through advisories them of pandemic their many our for and are responsiveness proud the challenges. the team persevering members all and and thank public to operational

together. all are this in We

Olivia, you the questions. concludes open lines for remarks. now That prepared may the

Operator

coming the our first Scott question And from from line of [Operator Schneeberger Instructions] Oppenheimer.

line open. Your is

Scott Schneeberger

and the and I'll year? vertical view off hope affect afternoon, yours ramp early just segments. you that given modular, [ph] in to Could - you Thanks. guys. point hit by are of on do well. being start we can I doing how our that Good this much. how all Thanks timing education the very might curious discuss the of the contracts and affected - at as I coronavirus

Joe Hanna

Thank the with we're activity levels education our business. in Scott. pleased very you. Hi, Sure. Actually,

they prepared not vacant remarks, summer school As in right pace work the of these projects districts of completing I a - execution on with are districts communicating while. had to and my have now. significant delays accelerating because who projects. that do these about got this that said us are we've planned stages at any not we're point the schools them for now Many in planned some actually working are or postponements school And been for the

that the solid part to pleased be we're appears on of that, business So footing.

Scott Schneeberger

for Thanks, thoughts like you Joe. just elaborate some the segment, no in you Could and curious, may give construction you it on were delays projects. Staying Modular saying up? think sounds that just cancellations, shape how just

Joe Hanna

I wouldn't been there mean, then were there fewer have cancellations. many, no say I cancellations, Sure. there been delays. many have

of had be have things As that geography. able who because varies folks customers in those back the deemed are unfolded projects those in to work non-essential, by not kind field and March, to

project. we've seen projects example, construction to California, As an in more deemed be non-essential

delays are point. So some at but not opposed and folks stopped, that those to as project of in those canceled, more hearing that we're projects we from new have are canceling just this areas

operating like really in point more in now. in even getting and feeling overall, right So, but are and fewer an example, the our construction as a that that, is areas we're active don't I from with still where them seeing we're fairly Florida, we numeric breakout that, just that just on have this delays discussions customers cancellations. that's at

Scott Schneeberger

taking or the lease? you been Thanks. And education But come I term month. only of with customers any it's more it be assume likely returns, I construction to of but a really they've are any trend would rent - things because not, guess off seeing

Joe Hanna

and stable, relatively haven't returns number been of point. It's we excessive at this really. not Yes, seen an

Scott Schneeberger

Thanks.

a pricing if last Joe, you seeing, pricing. to are this will in last fact, in month? at the you segments, affected the this as segments two use being other Thanks. over the please. segue And category all how just Just is across one

Joe Hanna

has Yes, challenged about for very pricing we're in the and We're seen longer pricing it Sure. than been business holding due would a in to is businesses one seen demand that's time, just nicely. but the say, where conditions others and the that's that. holding been and degradation softer there, seeing so other pleased not of period in more is pricing. significant any the we've I we've there Adler, there

Scott Schneeberger

go Great. guess And I'll next. Adler to I

from a obviously contagion is How impact pressure. in do you're You the moment? move which perhaps trying the upstream, the regard or reacting that complication upstream managing there and the remarks, prepared just to the of to you are under out to course this elsewhere, how based at you're patch is attempt going just expense at you with to oil probably and stay your and Are apparently mentioned assets? point tanks on

Joe Hanna

Yes, it's a fair question.

a us we re-positioned assets so fleet, but do whole we reposition. That much and for We And fleet, of point, future, say move that, at a that's haven't to will yet. would new I so happen in not may this priority buy before the currently. to lot

Keith Pratt

have fleet that say capital in. we'll we've ahead how the play as most good demand option. we depending things and given out, Scott. urgency just of current Yes, Longer And I'd of that. putting got softer, coverage term, markets, Joe new do there's the do an Adler on way just might said, are somewhat less that like conditions to

Scott Schneeberger

lot - be and and you the bit thought a what just too I elaborate a progresses. that lot on Thanks, of quick real there dynamic is you little one plans then, hopefully that, input just on I more encountering, kind appreciated. If would Keith. think more shouldn't know little I only Joe, up would likely bit short-term taken to a much. be questions, XG time this TRS. Thanks. used little so touched infer impact we're And - a you're I've seeing of just most you so on on that just a service a how more But larger

Joe Hanna

Sure. ease as of need get to on pandemic shelter-in-place in is soon way that Yes, lifted going things think start to has do That just XG up I are bit. and think it's for restrictions bandwidth And folks the a We and for not this expansion there. roll-outs broader additional always a absolutely. scale. capacity as

delays are on of contractor work be from back we as as at anything heard not right to I the major is the going again. there XG. have think And far the carriers roll-out

soon picking to still things as we're very forward get looking back that better. as much up So,

Scott Schneeberger

appreciate. I it. Got

Keith Pratt

during little all there they color people been of field. bit and bit the that travel where Yes, the add and a separately. them to they're color. But just what great sometimes the rapidly of this transportation When in desire multi-day a if little get going don't part groups set no to in Scott, if a have from accommodate from a region do open intention business, to to I tower sites, to where evolving circumstances, on And are hotels project. it's hearing anecdotally of they're could expected just site, had example they of we've a the work

less stories to reflection So when protocols. to that, pandemic-related as of how it's to we're hearing possible to best people new figure do work these work, And a it. having adapt think of field do it's I if they indeed out

seeing You're lower field. this hopefully of temporary activity level the in

Scott Schneeberger

it Okay, turn guys. and much. that's helpful. Thanks, I so Thanks safe. will over interesting Keith. now Stay

Joe Hanna

Thank you, Scott.

Keith Pratt

you. Thank

Operator

next line with Our the England Berenberg. Sam of question coming from

is line Your open.

Sam England

Hi, guys.

Just a me. couple from

first to are was lockdown? the after you one you all around replacement that stay I going CapEx the planning think, de-fleet to you The do recession said. wondering, potential of a ahead are above you at or levels, reductions

Joe Hanna

Keith, want handle do to you that one?

Keith Pratt

I fluid. would Sure. say it's Sam, very

the Let's basically you've that's think spent as been just we've of million gross the $XX did really And the I recent all year. weeks, plans. start revisiting CapEx what ago. capital how rental and quarter comparable we we equipment to in We first in started with year a heard,

and been engines and I growth for think under normal modulars. new capital electronics circumstances our have

term. of We demand, the in near of very uncertainty especially the have good to most a amount level categories given meet product fleet in current

it. to of the So, about rest think just possible you we at when give the ways year, look to

spend and have the if just gross little give where that hopefully see get the that with and back to close work even if recover, lower. to reduced in electronics that this then for in were to amount, continue are business, just very helps. potentially But part if you bit. shelter-in-place fluid. Last could demand of year, people be And But scenarios a rental quarter. could equipment more magnitude, over move is could $XXX of order spend first half all also number complications quickly the longer, particularly million. we the of almost other year, of purchases we number But would an XX% amount, we or work up the There this for

Sam England

great. lot a it's just you I idea Yes, you one, the have about know in said that cost any more the you QX, the rest helpful. ahead The you looking cost-related on are plan could can variable bit call do Thanks. businesses, Very significant year, see you before cost mostly decisions. could that flexibility an a that's base. costs of in give you waiting And you lockdown fixed, next major have talk how to goes on little do suppose, other reductions the but I longer of of much us the what you cut? make the to to any making or like

Joe Hanna

great not a our Yes. which just dramatic thinking That's this say, would is, at ended question. where And you doing I question as is point. anything the that's we're

structure. areas, some is of to the you you XX% you I playing with in think oftentimes current long smaller is, continue will. good and we're at the characterize got that and good have. We've really the if to relationships may support would you loss teams, workload with in we're absorbing XX% might cost that absorbing expected, it will, organization of branches, Clearly as with our just if customers. the branch game, trying we're the I we're customers. this productivity, What have just network or that people with good in

that, teams said doing budget. having Now item smartly been in look ongoing line work have thorough the are operating and to very every our at

things not like the is not are natural There really we any or exceptions, hiring hiring. having have most we attrition positions some at like not that happening overtime, part, back-fill of that. won't things we're some obvious two and immediately one we're areas, present. those positions. are for critical In necessarily So Clearly, but

education the of this getting customers of customer other and are is in for ironically, structure to busy And new orders. the a cost generally upcoming our season. with The tied year ready elements equipment business, Modular time particularly

and depend be would to going particularly business. of the we quarter are to as our it spending first education an dollars that second the of costs up operating because how you rental pick quarter So, And our operations, that I flat example are looking if we're the to busy I season. there compared want this at to year those to probably will on related really cost, look we Modulars, hope direct do slightly at where costs at

on you the of generally I typically if coming see the a look the seasonally SG&A winter from in business you months. spring, move QX then quieter, would were year, see go to as think And SG&A increasing, side, through we you QX. and costs reflected at as the our generally out we typical slower see business activity increasing you levels that to

SG&A I flat think we this fluid, of know it from going what year. we to from I very expect see and again, first declining think would to second to today, is cost quarter

how you supporting feel that gives the hopefully next manage how very we're months. to about we're still few things a it, customers for So, trying thinking tightly and over

Sam England

more And one then great. me. from Thanks. just That's

down be build-up businesses operate, the this thinking just that basically are idea the happen what continuing of of you're across second ends the returns shut returns, do get And think an will phased when proportion the of lockdown that be a year the until returns to the are lockdown business the half year. if how they to what finishes? at sort of there'll in of proportion moment terms of you how and about In happen

Joe Hanna

little this We're pace sure in the either process second returns lot to this predict we half time. come at well amount extended going think if just hard the high, And to bookings to be double of that have works that's on I I to is - just I the a think top just okay. bit point. we that's back, should Obviously, that's as Yes. - more off on I get. or really an of bookings get good then we tough that at are we delayed It's point. opposed going hit, bookings to are depend, projects a going think pretty as equipment on and not predict Sam, but to one because the year. at the that's of a and really cycles have returns that expected, and point. line And returns been are if kind determine how a of this

Sam England

much. for Okay, great. Thanks taking questions. very over. it the I'll Thanks turn

Operator

Our next of question Sidoti. with coming Marc line Riddick from the

Your open. line is

Marc Riddick

Hi, good afternoon, gentlemen.

Joe Hanna

Hi, Marc.

Keith Pratt

Hi, Marc.

Marc Riddick

and certainly all, the I the That want commentary has segments. around of you helpful. for color been first really thank all to the So all

One to and ups of start quarter. with, I a strength I services wanted some to if where wondering on just and first particularly I wanted on strength few the was time you in was the have from I Modular. that. of wondering, touch then that things - spend could the I rental-related after in was follow maybe that coming

Joe Hanna

Sure.

or just to piece at provide have box they the just additional that a work as initiative opposed We doing of equipment. of an use been business some as to customers more a a solution rental

comes that, with connections or be which customers rental-related be walkways electrical things buildings. the it want lines are the might or what site-related for want things additional service included ancillary that along their or or that's like that with work, re-rents, customer additional so And could with and in products like services that could rental, be also canopies could that which

line, And so falls rental-related we've that progresses. that each of into that and been business as services more quarter doing

services seeing And you're some mixed so in there. of those

Marc Riddick

Okay.

deliveries, that pricing as of additional things nature. in or So to it's more opposed services

Joe Hanna

Correct.

Marc Riddick

Okay. That's helpful.

Keith Pratt

Yes.

we a a items. work make help going when revenue we business delivery like Just the Adler, at a I'm is when those the or time simple. line make that you make to pickup, recognize In to we very it with done.

business, in you've So the really Modular got you're And financials. seeing two read the the that in then through things.

delivery. It then revenue install they site-related lumpy in they're and somewhat the rental we on that but quarter the dismantle and return I and line that work the services delivery happen done time Joe episodic. and gets got with You've we in, of little they're and paid tracks get referenced bit these more a mean are top really and on. move layered activity, over

get bank necessarily of but not layered you return. I quarters, more just bit a may the notable to and or sort one the services first and particularly for up future in lumpy, little it's that's So, than. may It's did the than then a saw on on quarter. similar site-related from We think that set we less - in project way of wouldn't about to uptick dismantling the we or underlying delivery have it. top

Marc Riddick

Thank trends maybe and time with you. what Okay, the Storage touching wondering, that's some that you've little helpful. very was on if could you're of seen spend you I maybe there? a experiencing Portable

Joe Hanna

We we end been into nicely performing increasing been us. the so nicely new been of first rental and XX% year. were up business The I And for at markets there. very last that well. some has our in have expanded quarter, operating believe has Sure. business revenues the

Marc Riddick

where we for of far now Storage? percentage are Portable revenue just as And as

Keith Pratt

It's X%. the around It's still XX%. below

Marc Riddick

about So, X%?

Joe Hanna

X%.

Marc Riddick

great. Okay,

had some of maybe how to ended So fleet? if wondering mentioned couple up and the on over of you there fruition at ones I the key And being for if protocols safety. about some to needs it's was - brought remarks that make of could changes beginning a touch the on your wondering the you throughout

Joe Hanna

this during you're is Sure. referring handling that correct? timeframe, to employees how Well, assuming I'm we're

Marc Riddick

so. believe I

sure changes of to you think if of - got wasn't that some down. jotted I wanted just made just operating that I I mention I had I right. protocols.

Joe Hanna

got it, it. Got

Yes. Okay.

me let an So give example. you

get rental. centers them So inventory for modular and them where we the in maintain our produce buildings, ready our next we

for to We've transfer closed decreased of tools, the for have. we that. provided lunch allow greater things not number a materials shifts and We've our so that there's example As potential rooms. distancing. we've that of meetings social an staggered We've like germs cleaning

safely protect operate new are these that have requirements. under made to the employees all and changes them So we our

And output from getting nicely, been and really work we're have and facilities. change, folks so, very it's our adapted some nice very those

Marc Riddick

Okay, I great. for And one that might Thanks. as I as the - if far could well, headed on any tax wondering Keith, throughout on give was but lower wondering, rates of last year. year then, I I thoughts full had was I a made rate the was me. - it wondering course tax seemed was guess granted where you little be was a expecting. for you being was, guidance you if you mention than

Keith Pratt

around there occasionally get point we From see view, And tax of effective the you're We year. this or the rate. of compensation. this that was the plan benefit that something time-to- quarter equity from in first year. reduces in What is some planning and I'd accounting of witnessed time this seeing a for quarter first in Yes. XX% a did the we

the at Given hurt either margin. that in And any or of the see we the forward. of with help rules not fact may turmoil that going tax the can rate may or equity markets, your accounting in some

So, at I probably us in planning would just somewhere balance have as the the the good this number a say of for XX% guess point. any of would as year, a as neighborhood is

Marc Riddick

very great. Thank you Okay, much, gentlemen.

Joe Hanna

Thank you, Marc.

Keith Pratt

you. Thank

Operator

and Ladies the question. be gentlemen, last appears that to

back now to the over any me for call turn Mr. Let Hanna closing remarks.

Joe Hanna

forward look again thank and to ahead, interest I'd for July in on the continuing We company. you and we quarter second your the wish in all months today review us like to for speaking everyone our in safety our results. joining to health you call late with and

Operator

your concludes Thank Ladies and participation. for gentlemen, you conference today's this call.

disconnect. all may You

McGrath RentCorp (MGRC) 29 Apr 202020 Q1 Earnings call transcript