MGRC - Earnings call transcript Q2 2021

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the McGrath RentCorp's Second Quarter 2021 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, Tuesday, August3, 2021.

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 full or discussing not the financial statements we regarding the Act strategies, year company matters will are Litigation our Before Reform the XXXX 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

In the with that and could the factors Form company's risk expectation materially other ongoing factors related results actual COVID-XX company's to differ in filings. the addition, pandemic risks and associated cause from XX-K important on economic SEC disclosed dynamics, the the are

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

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

Go Speaking call Officer. Chief to sir. turn I now Executive be the Hanna, ahead, Hanna. and Financial Keith will Mr. Joe today Officer; will Pratt, over Chief

Joe Hanna

XXXX detail willprovide Thank comments. outlook as for start Keith today’s quarter financial call. on well thank the comments ahead. you, I as his look additional call you Good performance, and joining review Franzie. second our will afternoon, our everyone us on in with and some

one Our second us. for busy very a quarter was

our preparation for two we seasonally both. of the our bookings busier acquisitions integration and to for completed managing addition In deliveries, processes time business and began during summer order

increase business were to coming company-wide modular up to units running also that all a rental Storage, grew growth the XX% year-over-year, and growth acquisitions our revenues about design pleased rental the I'm XX%.Rental of that by half report rental TRS well year-over-year grew for and from kitchens expansion to business Adler. go. and rental is Our revenue are with XX% Portable revenues mobile of space core of rental with revenue corporation. at contributing

each board So and commercial we the to our few. different with of Projects rental our look many construction modular, the let's as broad-based general saw business. take infrastructure At verticals, acquisitions. progress a strength, and across mobile market private government, across a our at name such business, businesses were

the In terms business of our project were quarter quote commercial in quality for and was volume pipeline, the nature. strong inquiries

five activity. less segments. revenue At revenue states Adler, growth. in rental services and funding. with equipment aerospace business improvements test to environmental quarter.In districts, increases and realized in funds revenue demand Our and benefit was the for into teams continued. In work achieved segment, segment flow Testing of rental Nationwide into subsequently TRS-RenTelco space. expansion, driven projects. the industrial offices money to are well we some facilities education the network has increase saw the X% driven labs demand been student by wired segments. but healthy California, for available for wireless education a population staff by X% additional Funding federal Four rental administrative our infrastructure in our was the for and field. realized as from some geographic our from accommodate stimulus more services Contractors work and teaching regions as classrooms of lot our XG, At broad-based accommodate R&D continued to defense modernize continue growth semiconductor communication generally other a growth required

them. and offsetting the years new the the general work projects were replace delayed was as had than recovery economic prior turned and Partially quarter. plant not on pipeline refinery projects that that concluded Some during been less ones in did previously

manage continue maximize business flow. We to cash to the

Now that address Mobile Inviter is for go. important equipment revenue I and kitchens that Plex our to Modular, sales businesses, to new rental reviewed like I've another stream at designed revenues would space and

for viable provide. to is are a solutions it seeking sales modular customers building service we option often and New are a enthusiastic

construction new economy And we recovers the has the are and disruptions sales the supply year. rest our outlook second effect impacted As from sales for quarter the of pandemic some cost activity and and increases, chain, escalations. of the seeing this for our equipment

few on are a reaction reduced We on temporary to in in believe The disruptions hold. timeline this higher the have being pace projects a put and to economy demand put Some slower a the scope, believe at be nature. a and is been there. operating is

so funding, are positive. overall adjustments timing very sentiment robust is made, as so the still and being accommodations And project but

can to complete and our pipelines acquisitions The companies integration to construction. footprint The showing solution forward acquired with integration excited in advanced of us. teams typically been working making have long-term and line. We benefits backlogs value costs opportunities expanded we is expand are hard as product investments and ahead it and are represent provide Our process at These and customers customers kitchens our progress. to exceptionally progressing activity conventional of looking both a timelines continued we're are as more planned. lower reduce so the realize the to more more to swiftly and an healthy space our we compared and and nicely and we the have to geographic go and design

synergies from We seeing resources. combining positive are already

operational critical the share implement ways we to for customers. us is to which cultural fit, able to serve our Foremost be better improvements as is

closed provide opportunities to and modular fleet, team California has mobile our sharing the and our have access ability are uncovered and of improve which space utilization should help the We to solution our building leads between design for businesses have orders. The best each customers. already

leads already design new are we locations. space Additionally, classroom our handling in rentals for

revenue this additional us. opportunities So for opens up

is in strong half in to driver positive particular orders has mobile entering activity quarter and a is business classes our managing has quote XG some the increased expect growth modular, based we districts the turbulence sentiment typically student At driver. In expected more as We're costs side year for business. supply chain optimistic the activity opportunities labs to other of Sentiment more many are on is continue pressures. Looking the continue. the are been across Like we our and half. third are a we final healthy weathered feeling with have the second accommodate is some quarter. we Adler, about third and improved forward business companies once portable big opportunities in through school of and to our accommodate stronger commercial are traffic issues, and resume. both data the today equipment that we storage head to R&D commercial and wage well field. constant materials Expansion test TRS counts, is believe positive. the coming of positioned out bandwidth At At

when watching are adjusting pricing to using in trends these are tools We and help carefully process. possible the sophisticated

to remarks, as I delivering for Before Keith hours for integration of a efforts hand signs I'm move our solid will the over kitchens call and the their economic our go our to old, combined planned review. to to organic increase spent making I'd year. turn of and given going of the space us to who hard thank have to The like recovery a financial the quarter all sincerely some to With our financial our while of teams his growth. over Keith moment new that, you take also work teams, call along outlook design for confidence take and of and overall through long

Keith Pratt

Joe. you, Thank

we the to compared the quarter. described, businesses improving and XXXX, had second our business Joe As from solid continued we quarter over demand course encouraged trends were by performance core the rental of of

a initial and second our abruptly results, quarter impact for strong despite discussion we costs strong by the impact in For full SG&A as keep pandemic, from levels. mind our the decline had helped and review, our year, comparing infantry rental year of today's a year to below second will acquisitions highlights in I provide and of XXXX that outlook center reduced sales When the performance. from revenues, last revenues modest a pandemic the this quarter from activity very

second Design million. we for May To cash Our price results was all purchase an two Kitchens include On Go closed the which million. a XX, On of $XXX.X quarter acquisition, April with we X, Space transaction closed acquisitions. $XX.X

So of Design a to included per weeks just quarter a for and a revenues, Space increase the results Together To the million EBITDA Go $X.X and second total full earnings six significant reduction included revenue, our and quarter quarter. portion initial costs. $X.X to a these of related million but Kitchens transaction share $X.XX acquisitions contributed adjusted integration the of

revenues for further discuss and sequentially rental and direct $XXX.X the Each other operating revenues and SG&A million. primarily was rental results modular, result acquired in million decline described will increased selling the the primarily of Looking the result earlier. for cost million increased addition of segment quarter labor. at grew our expenses I million Joe TRS-RenTelco of XXXX, X% to higher and the materials increase was the related the result rental revenue identified Adler $X.X impacts cost profit while the administrative costs for the on and of the costs center inflation second rental all at corporate increased of levels, $X.X services were The reviews. majority year-over-year, higher the from income higher inventory and operations statement. which The to as conditions generally costs our business pressures center mobile inventory total acquisitions the quarter company's of for and activity $X.X our two the rental improved business The reflecting overall of of were segments businesses

to compared was ago. ago X% XX% year adjusted quarter EBITDA to increased XX% compared year EBITDA million and a consolidated adjusted to a $XX.X margin Second

during last Higher XX.X% a inventory reflecting acquisitions. conditions pricing to XX% higher margins fleet XX% ago. XX.X% primarily million impact stable. changes, of Now, offset the primary was of down revenues the X% customers. which the of of To $X.X the than new total million The results average Modular by million. rental monthly million $X.X rental was was compared operating revenues to attributed higher rental demand softer most revenues to I decreased mix year the the in division effects performance conditions rental Overall resulted and approximately expense quarter results rate quarter to earned higher and $XX.X from Go XXXX. second of $X market the to depreciation costs XX% space during reviewing with XX from months. driver will compared the by year second or to the revenues and increased higher partially for quarter The XX% the Mobile Kitchens break pandemic from for rental market design rental the X.XX%, a utilization the increase center ago, of were XX% including quarter Average due

X% to earlier, due the million for revenues, work quarter labor. were partially by mentioned reflect was the Sales longer reflects general delays center a Average profit As costs inflation XX% X% XX.X% infrastructure a that a revenues XX% decreased rental test less to million a pricing million At The rental million increasing continued increased to and and geographies year revenues. rental X%. revenues grew to competitive. X% to due as equipment quarter levels, total to purpose services rental term of revenues in transactions increased the X% and new to due $X.X rate some up down businesses lines was XX% to XX% XX% the quarter. quarter mix partly continue offset business to the the ago pricing for more sales to during caused revenues communications. X.XX% longer $XX have which Tank end to and field asset Adler the by revenues impact X%. decreased revenues. sales. average compared by utilization XX.X% activity were changes with a shift improved rental, multiple monthly year general for rentals, ago. At Overall towards Rental The to and ago. of continued quarter mix from for margins a strength and conditions margins XX.X% to communications XX% of year-over-year addition for to year increased average market total acquired compared rate compared rental primarily rental TRS-RenTelco, the be gross higher for reflecting sale year the the related or of pressures Communications year to continue tend a utilization Rental second revenues slightly higher This higher rentals, were gross average inventory primarily ago on rate impacted on in We and pandemic. the from for compared rentals flat million a X% ago. $X.X purpose million $XX.X be quarter compared cost to continue to declined on $XX.X million Average and sales increased higher increased equipment $X.X saw or to compared Sales XX%. higher monthly conditions $X.X markets a quarter ago. X% lower rentals lower market a ago, demand year margins year equipment Overall result first to the lower to compared from rental equipment be stable. on X.XX% materials

primarily Space employees. total a million and The higher benefit as acquisitions. assets million To million, Kitchens higher million on was company Selling remainder Design comments an result $X and debt my intangible $X.X levels, of of or salaries X% acquisitions expense lower by administrative $X.X of million, quarter, basis. $X.X $X.X at XX% costs interest by increased headcount partly costs. and and million average due on be resulted average mostly of to $XX.X result transaction Moving from Interest increased the a rates. of increase of increased Go a addition the the to offset also amortization in Employee expenses second will

was The due tax rate to in income was year second taxes to year tax based The quarter effective part a of from on increased lower XX.X% provision compensation. compared an this benefits excess earlier. rate XX.X% stock-based for

we of between XXXX, tax expect For and XX% year an full currently effective rate XX%.

like paid substantially I'd the for provided of to acquisition million to us funded borrowings met bank this Net turn date At of flow dividends. million by activities notes cash was Total million million. We to $XXX.X increased year. of increase estimated million. of Space Rental end Design Design and lines private $XXX Next of Kitchen were year $XXX.X our pay $XXX and our $XX cash an of Kitchens acquired X.XX credit To of allowed excludes actual million operating notes an placement million highlights. had generation all $XX.X $XXX the purchases lines XX and ratio Space assets the compared and million capacity additional X. equipment fair to businesses. This under credit to to the Go debt million million of last our million million year. assets comprised $XX.X on Healthy months credit. and To $XX.X cash last $XXX borrowings $XXX rental Go value was adjusted standing of borrow facility in The to with under quarter $X.X of EBITDA we to the

and including equipment rental We EBITDA enviro million up our million previously. expect revenue $XXX million is million, from $XXX delays, to $XXX XXX recent which is million in currently $XXX push the include sales segments $XXX Finally year $XXX new turning the for shortages each equipment Challenges to up modular sales $XX our business is into trends million some starting year, acquisitions. chain causing total previous to million million, our Gross positive outlook, modular financial which which of and flex capital could to previously. rental project higher our the for $XXX million demand to supply year out impact $XXX encouraging. between and adjusted next and outlook are million, will $XXX $XXX fact material or that remainder between costs across to from and which expenditures labor the and of million timelines of to from are new extend later the business, between up million, our

While by remains, not business lines activity prepared pandemic are may disruption levels related remarks. we our improving overall concludes we the for potential recent the That open encouraged have questions for seen. the you Francy,

Operator

[Operator the from instructions] of Oppenheimer. from Scott question first comes Your line Schneeberger

Your line is now open.

Scott Schneeberger

about in the the be pushed last in year in us be comparable that's little why year out down? provide color remind then, you for to a transitioning within a sales, what's going Thanks. half about $X and question, the Could guess then and this like sounds were my going look could us to do first then sales more was you were ahead, up year quarter, bit if remind I they to think to could it's driving that second quarter. second elevation happen second you for curious you subject. going the what last but and you just elevated It and that think million on follow the

Keith Pratt

way were second year quarter projects things Enviro a of the of I Scott, of sales will, pandemic that for the one very installations good lot occurred. that the quarter a was year. second much pre to last occurring ago, last were unpack was were the impact machinery, year, there, in they strong you before the from in also to a pandemic but the us and Flex completed a units think, in it, were too in were contributors quarter built, Yeah, the second underway, that if

that's looking the rear really view in So mirror.

Enviro piece or critical completion used parts a the business weeks timely materials, project. acquisitions having manufacture two materials then business, we're of a can material of we on the it anecdotes more get take to mentioned all comments to is ahead or it as of what order than Flex expensive in the such same seeing to across just two a door common the three it to today units three to get get business seeing window, Looking to theme, the modular was we when our side to harder that really the and which months made, really reflecting take as talk we of the part traditional to and Joe people the business, of now, our where

just of those So issues. chain the are the comments regarding some supply

to very that's I year. sales really out quite just as And to think just what it's trying months think a ago. of couple we It's not going good important good think we're expected here. I we have to might've to a be as point actually going we're convey

both you because significant look sales sales a be overall lot, my ourselves know we remarks year it's covered That's but actually and have their year. prepared up think good revenue pipeline because partly at and the we acquired had overall I businesses If a we mix. a component in over partly will

that kind other address provide question your to of pause Is and there. So helping happy I'll any color?

Scott Schneeberger

your manufacturers not that you're to or side, their Is is it sale for where are projects Yeah. or, but on projects the also differentiate Enviro slowed, your supply they're just who you resell, you could chain if your the starting parts delayed please. for create to it able Flex get well, later, product probably there customers and

Joe Hanna

real Yeah. our because production customers on own Its -- driver. having impact makes Scott sense. issues on supply the is more it's their the own That their not delaying own they're site.

Scott Schneeberger

And And side, year the on have it the the another the that of is and lower of is on in or Thank then what purely midpoint that What's then Space sales guidance. of within Design just is this, the of then I from the to speak of that it? from for there Joe. business, the Yeah. contribution context appears the organic the guide going side Thanks, a part component you in what is legacy contribution acquisitions? balance the and the the of on of that's guidance terms wanted. I we're guess the

Joe Hanna

then few turn Keith. to Yeah, a over words I'll say it and

business the important that to really sure is everyone and quite think understands make I what's is healthy. rental

we're year. with a how on the the we year And a and to nice pleased that's basis so progressing for projecting have very been growth year over once we're year finish

it. the And more now, I lumpiness can right sales so and some And we're to we're the the and you real driver bit, and as think company. It's give trying just a that's details what little in sales. here seeing on convey Keith

year-over-year projecting But months Some stream. of are as much as sales that anticipated basis. as up also total be that actually a on we're even outs revenue our It's just these had said, -- push we though Keith affecting just not I'll our few a mention ago.

Keith, add have anything if So, Yeah, want to that. I to don't sure. you you know

Keith Pratt

Yeah sure.

space your to full we and for Kitchens million of the things, try each they revenue things say $XX two me wrap that and the To year was Let announced million one the it. a that Scott, sort you few in If experienced $XX was arms when help acquisitions XXXX, just around design we Go. around and of shared for

good the will slide to of next expected in projects is to important the I that businesses One terms put in this Design year, push bit, component sales might've you Space take year, earlier, in mind I only getting if little your we slide fourth thing and year the may the keep we of feel little pipeline, the terms last acquisitions look some has for which to So experienced go some quarter not horizon. momentum some about were a fourth, the in had referenced and third arms the may would kind more that into you in of thing of they expecting those say there potential at think around they Kitchens good Go To good if project we of year. very but of delays means see still bit on out combined be a

few and In of buckets complete it will addition, recognition different. policies take some next this transition because the their total just you of the their rents. revenues each our related two streams. as of And you rental and have percentage sort related a know, this of period their as experience mind keep just revenues, case, moment sales. of our they a in revenue as own the with typical, during the the the services nature business. revenue in three little quarters. That's on business, and may higher an does acquired impact areas be and the is see relatively speaking revenue there'll a fairly big are acquisition, revenue accounting two each in when where a And services rental streams that to those of few a acquisitions I'll be we In rental compared sales businesses have

for these revenue rental the essentially the businesses, all revenues, So same. around recognition

delivering revenue the issues On services, that of which is So contract. over related up product we rapidly setting rental recognize and life there. it McGrath, the no at mainly

The other two time actually revenue businesses recognize that at of completion.

So a little difference. bit it's a of

books, So those revenue are up respective to gradually on streams the be going over going quarters next our because to they're recognized rental--related relatively build again, the contracts. few over the life of

So of to rate. little issue revenue run a that causes we term a near bit build a we sales normal revenues. the last in of sort till the similar with up And have

we businesses recognize whereas sales when the the is full by recognize the The complete, finished on and based revenue customer. all project other accepted percent

were getting recognition. if finished, won't already project. get we transition for this a by it during the actually get perhaps just of on When we of XX% have company. be where sales in revenue the It acquired we XX% us, that XXX% being remainder. We be period, $XXX So pipeline some might may the revenues the recognized the

having all said going marketplace the be in are transition sales. details got if that, delays some big rent the it's bit those ahead of transition good the accounting side And seen we've we again, to the but we've in of year for things and a little of cause some could be. side, in second a to here a of slide Sales good would year. anything, that again, looks picture some have expected to kind the is very half issues, So where period,

year expect supply more months ago evident. We for became a to it few hoping lot had as up been before to just compared issues these just not much ago, a of be as quite chain a we

Scott Schneeberger

Thanks. EBITDA you change? out contribution specifically what break is Okay. contribution the and in the acquisition the organic guidance is in what Can in what line, from

Keith Pratt

Space -- we with And especially way, visibility say functioning are integrated that's I got because in very California. that Design haven't share just we partly Scott, not today. Yeah, would these a in businesses to

strongly revenue easy break they're second as to it's earlier not the So some that of and contribute do I out, and going of items. the with caveats those to but to sales half definitely some mentioned the so year about of the streams

Scott Schneeberger

Okay.

So, not across rental, it's a so issues, and on the all if better at anything the all purely is rental segments, overall sales accounting little than everything in together, expected

Keith Pratt

That's accurate. Correct? Yes.

Scott Schneeberger

bit more then this sequentially. a year sound grown revenue sequentially first looking this the on it a in And Okay. TRS in builds. Is obviously year? at noticed, grew specifically 'XX, curious, looks second, curious, ramp a quarter 'XX had X% and like prospects slow I little and to it just rental little just sequential less it seasonal I'm bit bullish TRS. what You rental

So curious, I'm coming the you in had just confidence if what half stronger delay? it's in gives we second a just the

Joe Hanna

we're this time we a degree, just taken and take significant place to way given us confidence. get as that there's folks to before. think -- that's think that as really I active a off Yeah, our certain in was are but there than And passes. really I We've pandemic is to exit anticipated hasn't market more think And there's occurred as that generally I has conditions what's going anticipating more improving. Things are, fieldwork more demand yet. now

Scott Schneeberger

Okay.

Lastly from in me, better and I ad or five talked four geographies think I to to historically heard end you've markets.

I they're think have you how of six worse. or doing better on them

looking it how end doing? the the said and some that the get sequential you it because but it, how are sixth you year-over-year You on loan a like, curious looking they on bit earlier, I'm an missed markets sounds color If better just are on little track, update could I gave we side.

Joe Hanna

Yeah, you're right, Scott.

were environmental we them the six. comments, in is kind with And only cancellations positive we -- have more the prepared Oil last as that it's were work. maintained recur of think services, only some four decrease believe uncertainty six growth I of that's mentioned I think there. this we seeing markets. pipeline that's I I had our in just of which gas, the not and and driving We really And upstream a work that a and that of of really end industrial there's saw X%, had really before reported than year. so we're done year services did

political, last some or quite capacity in of its been the on year that's Some been bit put so. of just a there's it's of

And so this feel as and more some of our we're talking are that customers the said, that more projects overall, side, come going those encouraged, yet, us I about taken coming what's had projects to at think just to causing confident other delayed haven't are have online but we out that's, so we're been off point.

Keith Pratt

Yeah.

regions and up the the up your sequentially. were five Just vertical six track question of and of on all that sequential sequentially the all were Adler, markets performance we

continues trends that good quarter. We we go as some the third So, to into build there. hope

Operator

Your comes of from the Sam question [ph]. Ingrid Capital next line of

Your is open. line now

Unidentified Analyst

for Alex guys. Hi It's on Sam.

at that Just of in is guide, value bought your you're the inflation CapEx sort buying down as demand of being assets or strengthens? be of increased is that the looking to volume units

Joe Hanna

Alex, there. capital doing for We acquired the in site The there's great regions more They've position into are increase think key California. a design the teams job. Yeah, opportunity of good reason put we're market. is on going a to the got newly space the

successful $XX doing quarter business. change invest want and hope forward. really That's of to going the that we we or that's key the another that million we're from so, to be business, the and roughly and if continue part last of grow So we'll more with

Unidentified Analyst

have where to you pipeline look design great. after would how take limits And the do to And does deal? space deals? any Okay, any the M&A private you leverage

Joe Hanna

capacity opportunities make Keith to. comment comment quick we always need We're and if to so, real have and leverage. can we're on a just continue I'll do going to looking at we additional Well,

the present our themselves. if very right opportunities and forward we're that's So strategy of a interested much going part

Keith Pratt

we opportunity Yeah. X.XX, a pro competence, high over reported And with our reported, do. view point there make to we adjustments, but On just to key if as was from supportive can go basis, leverage of we And closer two we our a was the have as of where something times. needed leverage that's X.X. forma it's lenders. loan we could as very strategic And

Operator

from the Mark from of next comes Sidoti. instructions] [Operator question line Your Riddick

Your line mark. is open. now Hi,

Mark Riddick

talk utilization of bit it could you at across little and what that's could trends, we pacing might throughout was the sort that why, little if thanks. as and businesses why, be So bullishness about properly if talk we general a seeing pacing from because the commentary I a reading of the might, of was of I'm wondering quarter, you grinding least sort about higher what though the seems it if so

Joe Hanna

start quarter a a I'll year basis, on has over just on the Sure. is with with encouraging that if look utilization and we our actually year utilization, but sequential you improved. down average end at basis, modulars mean, I thing and were

that's so and and utilization very that XX%. there really trends positive XX% And good over At encouraging. seeing have at now. slightly very just year. at been Adler, was that year utilization with up place is basis. this that's we we're in down TRS, was considerably point. That level that last on very So a business a there We're year pleased was Adler At running over

been not on so we that with anything to So that's putting room Keith, we we rent business, there in, out just have there, want that our in of have capital have fleet to definitely cash in and so add. been room improve have invest managing getting our plenty to we focus and our and you

Keith Pratt

sequentially, that right? Just Adler a was up quick,

Joe Hanna

correct. is Correct. that Yes,

Keith Pratt

And see see, in ended at queue this, Adler at look XX.X%. you in again, quarter particular, you'll at public the filings when the we you'll all the

market quarter that improvement the all, business, but demand average better to work lot again, done QX a realized there's we with the for some for those the So are QX still than to of over more gradual for positive trends hoping ended the strongly of those quarter. metrics and continue be conditions and recent

So healthy points. those data are

Mark Riddick

the a to I demands maybe a versus to way education, it's you was it what Wanted the back year, last might play but of different little this at to seeing year. does out normal should That's color wondering that But times? standpoint what gears perspective could looks. around, seeing, a you're necessarily from give back bit that or it, you're more How very around not point this a year to think kind about maybe we helpful. and going and if more that's Okay. if visibility how you're switch where obviously going, from timing is very feedback getting, was I was and

Joe Hanna

fall anticipate actually anywhere put are happens. not capital to this feeling and really don't back we're, think, I'm to off have capital those that a seeing also to just that students classrooms with I happening see that going districts operating. That's growth, projects returning be there, projects the we where us. about we're positive what investments for online We'll it. We're Yeah, bringing had good actually and modernization fact and in

again, we'll will and year in fall. gone having between be classrooms back counts I a a actually kids this in we've because think classrooms, off the that in have basis full on student

I mover, right cause had think student be the we're I where off a that last disruption place that but year. ordering but big and all So taken might that needle feeling the education our for now, us, bit to overall, about over is minute little good past anticipate don't of council be business considering a

classrooms we're there and helping and point working we've last are at through minute that got are So if diligently districts needs. this available

Mark Riddick

I for then labor one then a maybe I opportunities seeing and of maybe me. a I things can services Thanks. talk the little wonder and about the around guess sneak Great. little how was and the of into could there, if bit side you're that bit in what plays last pricing. commentary And sort you

Joe Hanna

several just challenge. but think folks that drivers. is the it's be that's Sure, tough recruiting finding with it's, production is say find for the tough centers, about in in years, been positions challenged and sure. It news. our issue. can talk I even is most any a filling now. and to I would At worse I labor our anyone should don't people And And last area

overall adjustments we're internal openings we're We that have our but had affecting positions rate. well not production make staffed in to are experiencing and wage significant some

think I in helping hiring make we've working internal plenty So pipelines are we our us shape. working just resources that are keep got need it to sure on good and of

see if And little too, we're a talk you bit So can about And pricing manageable. mentioned in mentioned, over actually year are there. tighter year. hanging you I are rates modulars, that, then in know we than X% up like I but it, we'd to you'd like Rates, to.

of design very the nice rates. on space, some had of integration that's Now, based they

is seeing assistance talking there, that the good. but overall, teams, of we're in of so our to some And commercial pricing terms

me Our seeing that modular the in to been on we getting price increases, pay degradation to which one We it are of use, example. there you not And has of for raised with of And our seeing to relatively pass in for we're some that. things that's have the customers education have. open customize any our increases building doing right And to account and been We've there, service when just pricing They an product according cost for dealing a prices that good. offerings at modifications may now We're all. they we've to higher folks give their need the are that want it. let along are terms we customer. understanding all a had they're a customers product. and willing to of price do customize

to that time encouraged been progresses those will higher continue as we're and reception we've So hopeful prices here

Mark Riddick

it. makes now. Right That appreciate I sense.

Operator

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

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

Joe Hanna

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

Operator

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

disconnect. now may You

McGrath RentCorp (MGRC) 4 Aug 212021 Q2 Earnings call transcript