MGRC - Earnings call transcript Q3 2021

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the McGrath RentCorp Third Quarter 2021 Conference Call. [Operator Instructions] This conference call is being recorded today, Thursday, October 28, 2021.

Before we begin, note that the matters the Company management will be discussing today that are not statements of historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our full year 2021 financial outlook as well as statements relating to the Company's expectations, strategies, prospects or targets. These forward-looking statements are not guarantees of future performance and involve significant risks and uncertainties that could cause our actual results to differ materially from those projected.

associated ongoing risks related pandemic to dynamics. economic addition with COVID-XX the and In could results factors cause from that SEC factors Important actual expectations Form and disclosed filings. Company's the to are under the risk in XX-Q other Company's materially differ

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

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

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

Joe Hanna

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

let's So started. get

to growth are seeing coupled closed from of across customers growth grew the on highlight X% basis. of The delivered is XX%. by TRS-RenTelco our acquisitions we revenue activity conditions, to segments. rental like third encouraged Adler the in Mobile Modular healthy improving positive seeing we and The the our rental market earlier impact business rental of are with combined and year, Each due we this we the our the a I'd market quarter. the XX%, enterprise are across units First, performance segment engines year-over-year

shortages customer for into to to escalations that cause can were some the sites. affected projects equipment These supply completion. quarter shift due at less labor delays sales as delays for price quarters expected issues, and chain future experienced New customer than projects we

Our pipelines very healthy. are

supply So outlook. these to demand change overall as in we fluid situation or a customer occurrences not chain and an adjustments view

is To rentals of Mobile the are levels XX% Kitchens and education of respectively, and Space XX% activity exhibiting commercial In we rentals Go. are we Design now on. quarter, XX% of nice to is that a compared XXXX. our our XX%, changing third and In trend fact, working that a and as acquisitions with projects Modular in mix the total backlog the are high, in are noteworthy quite have favorably

completed While our commercial education the opportunities also, our commercial so states, expand continue our locations footprint increases attractive, our we In with accelerate reach well business we positioned year strong. are remains operating were in acquisitions strategic commercial third more done for purpose are dual The bookings serve. very markets quarter, We to we eight and and this which to end have orders diversify now rental were two significantly. growth. commercial to geographic our

significant in these acquisitions our in in very benefits of strategic the education In realizing that future operating have has unusual the see the circumstances a business and innings months. are of two of plans. on We opportunities. level shutdown long-term the our a schools line public set our we was of and business, over XX education continue we early held resilient, virtually Despite unprecedented. remained The past disruption, national to

are needs Third are improving is is their facilities and also activity turn and attention quarter rental Funding educators that back now and the year-over-year, education available were up as project students to in bookings substantial physically ongoing. classrooms.

the the about long-term business. optimistic part for very remain we of prospects this so And

a increased the pressures on for year-over-year rates has recognize many to On considering ability priority, average of things, inflationary companies by as the a a business, basis, theme are seeing currently. cost This has in more our increase rent units common we which side continued. for pricing we rates X%. been On

the quote area and nicely. integration environment, in continue. I'm they We're automated dynamic that We are confident efforts to ability industry sales The adjustments when to our make right encouraged this business we discipline pricing representative progressing are overall have for acquisitions deployed will and are the the in each so that tools sophisticated, quoting made. with have customers, the by our two

new and completed capabilities now and We up quality to locations of have processes. are employees the our new on most We very schedule the family. Design are important geographies, as and investing get systems the and pleased to training this utilization through turnover space and had high part with picture are little healthy. migrations and is open the team in have on members speed fleet. we Overall, we new up the demand process of

deploy have to opportunities improve quarters California utilization ahead. the in customers fleet for in Modular Mobile to also We design based

We are have just of will begun that we two future breadth are very realizing we revenue excited examples I realize. of synergies. synergy opportunities already to where about give the

us. are space We design in which new now closed for customers orders for locations stream and is revenue Pacific quoting education our in a new have the Northwest,

into our Go cafeteria and modernization leveraging to bring relationships school Kitchens also are We school To projects. kitchen

we Industrial were rental equipment Project in X% realized general the on XX% At XG serves defense, business Our R&D applications. improving, regions needs revenue year-over-year. growth the Environmental in during and our rental segments we divisions represented to technology working demands. and last the more have quarter. as positively experienced purpose that our for third aerospace revenue the growth strength business other third results. contributed continuing TRS' in been growth customer across projects for the At has Services meet two in sequentially we quarter all continued momentum also quarters realized and and with to investment of of TRS, and semiconductor particular rental Adler, companies

ways, and results some been business, talking internal market XXXX. from into I continued we especially business. largest going improving as geographic mix shift for numerous to quarter business. of in initiatives with see We a will our and ahead. strategic Our Modular now are result, and potential. growth this expansion our to I'm to on outlook grow highlight increased have opportunities our regards are our we looking our working optimistic about focus third has much gradually we for Mobile shift to And

to projects for time. longer. stay that or a service quality customers will out on duplicate. projects product house and units classroom these rent are units are for over These of used students value be Our larger hard that and customer to price modifications tend period long competitors Often to or office modular specified employees contain ideal

is are construct shown that has be student customize education pre Our help demand additional the classroom production gap. some fast that school XX,XXX districts again per that classrooms can $X kindergarten capabilities. may to and with specifications. facilities the building our facilities to germane that to With to customers needs rapidly rely districts That are and segment, to us states. planned operate distinctive allow population fill additional geographies classroom, on by us customer in again, equates long-term in not to rental because and unique up for students not over more expected include school time seven keep in for need increase that History years to to growth rentals return our in at to during to next that we industry does million will the enough units being able and the frame. in capacity extensively will Many units likely respect today, XX they

the not XX-year-old pace kept facilities standards. pent-up modernization projects bring last with the and demand over have aged the to up addition, and have significant needs current year, classroom the In to average

expertise We needs. the in enable have to and upgrade the expansion and to industry districts product the complete their

healthy backlog have working a on and XXXX. active into and quarter delivering projects many are We fourth the in

to customers ways. As part of value our and in offer we of increase modular wallet share our solutions offering, two

modular first These support could packages use and that the to be revenue the holding to plus. We it building. call filter to the supply The services replacement anything is from stream needs of wastewater tanks customer to services. HVAC their products furniture mobile

the valuable encompasses we second plumbing what that and believe revenue one that walkways, a provide the package building covers, customer connections, exterior pursuing capital could overhead typical substantial contract enhancements, all dollars. There several other is a stream be thousand is us. electrical with The required. as such done outside services we and stairs is aspects by of be an services providing rental one ramps part customers that can sale. our and is We investment this with the and market, additional no for site-related hundred are A in interested or of believe underserved very

past a those or also we to calls, opportunity, custom anticipate the healthy coming is customers offer permanent XX% growth generated as an capability return we the third earnings customer the capital. revenue $X.X for So we our modular services modular the base. In discussed customized profit improvement on highly solution. this more solutions in site-related quarter, we to a service and to On which looking have million, to market as years year-over-year our increased our

have very expanding early mix permanent only competitors across believe a Not and modular of modular combination value long-term of of seeing In focus of pursue has the five these with is the the stages team area and team period growth capabilities busy to is business. X.X% part market and the in for the but modular business capable prospects. in billion. XXXX, this of The growth. established an construction the market execute past share, just the exciting we about a in to working have construction I secular fewer the this am the construction We growth to in optimistic $X a that it overall accounted over of projects attractive capture well, market, secular opportunities construction future our are represented been market The years, make for we early us. country

as have capabilities future ourselves segment. periods in our establish more report market to this will grow in We and we

capital in seeing the for are activity markets. fleet to are we about our and Finally, more we optimistic deploy seeing growth, remain opportunities we organic

all we a of performance solid in our clear We strategic continue has our about to company to segments. total growth of our simultaneous toward business all like enhancing We our purpose big and across of businesses which with I and revenue repeat effort. our on in prudent financial unusual future rental would like the conditions management shareholders. support for I of the to to that members, suppliers remain for been our helping acquisitions, enthusiastic partners through sincerely thank our us would integration returns growth steadfast market and are all two returns managing make team of while successfully investments. navigate decisions

turn to let Keith. call Now me over the

Keith Pratt

Thank you, Joe.

from quarter had the and encouraged compared our quarter to my third As the our current Joe over businesses review business core described, were continued will highlights trends In from of We our course the improving outlook the quarter. results of year performance. XXXX. for rental quarter today, I financial demand provide in we solid performance third by full

which diluted Go, and XX. To reminder, As and to acquisitions on million to third closed closed include two revenue, our recent Kitchens contributed on a to results total share $X.XX Together, which earnings million EBITDA $XX.X per adjusted May Space, the April quarter for quarter. these X acquisitions: $X.X Design approximately

Looking increase was to revenue at The sequentially, quarter, corporate grew third generally total overall segments from our improved revenues Each results for reflecting the $XXX.X improved of majority year-over-year business rental revenues million. increased operations. rental the and XX% of the rental conditions.

pricing third to down increase with increased or XXXX. million, revenues, well Third Breaking to year $XX Kitchens quarter by attributed was revenues was compared ago, EBITDA margin the for higher than Space of XX% results ago. rental $X.X a were X% driver XX% sales. a the rental Mobile The third $XXX.X primary higher consolidated XX% businesses, rental X% higher was activity fleet higher to the acquired and approximately $XX million. increased $XX.X inventory to conditions operating some million XX% to reflecting average reflect for center of quarter division compared mix primarily and to quarter rate the increased to XX.X%. ago. partly adjusted higher the The monthly rental conditions from XX.X% center expense, million XX% The Sales costs. in Go. performance XX% higher the Design And to depreciation stable was quarter costs compared materials by total recent acquisitions. a labor X/X and X.XX%, adjusted reflecting improved revenues year quarter lower end addition of Higher million, the from equipment new and Modular million which and utilization inflation Average year due margins generally rental rental offset impact decreased as in costs revenues the XX% resulting XX.X%, utilization revenues to pressures market levels inventory was months. To of as improving from and $XX.X EBITDA for business

for to mix lives longer-term average general a slightly to reflects tend communications. lower transactions pricing year and compared to and X% unchanged general delays year-over-year revenues revenues of equipment rental total conditions to X%. $XX.X to gross This XX.X% with was revenues million. The that stable. disruptions purpose XX%. chain equipment to Average increased rentals rate X.XX%, longer or for $X At rental ago. higher can margins our to for for year equipment to continued rentals, third the continued The Rental tanks on the the strength for quarter market purpose projects. compared from XX.X%. $X.X depending rental customer quarter sales compared utilization utilization have was a ago. rental more the remain At for margins Communications some quarter. X% towards year year completion was asset at continue improved million, to see related new was supply to rental-related funding. causing monthly We XX.X% million and shift quarter Rental X%. $X.X a increased Overall total year rental, availability the to and Demand pressured up compared a during compared ago. of third were quarter a XX% geographic related sales to saw were profit ago for in revenues TRS-RenTelco, which decreased and equipment sold, declined These five ago. year We test growth grew were the with all down margins, monthly X% flat rate a million was XX% Sales maintenance revenues boxes average rentals primarily and rental XX.X% to requirements, increased improvement $X of which the on XX% million. compared XX%. in Rentals, X% due regions. to Adler X.X%, broad-based compared million and pricing $XX.X quarter equipment to equipment fluctuate gross ago, quarter Tank or sales decreasing were for XX.X%, revenues. XX% costs Gross margins rate increased end utilization quarter XX% services Average average both mix Elevated a XX%

and or Moving expense of was higher by SG&A return Selling will which included $XX.X total the a remainder company spending of my a intangible on $X.X a year basis. on. of third an $X.X administrative assets. comments million, reflected a The the million higher average acquisitions, million was increase the of increased to increase a debt be compared to to remainder million, partly million amortization million more increase The XX% expenses Interest of ago. of interest rates. quarter offset $X.X $X average normalized lower $X.X as result of result levels,

rate business rate year taxes provision was tax benefits increased quarter stock-based effective XX.X% an compensation. rate tax of to earlier. The for third to income The based from higher was XX.X% a compared tax levels this in lower on year excess states increased due and activity

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

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

outlook. each trends are business updating encouraging. demand across positive Finally, of segments our our financial recent The

sales supply new However, chain our Enviroplex some we delays to segments. have margin Modular for equipment continued and see project in pressures causing disruptions and

margins. addition, In material and pressured rental have modular labor costs elevated

year between $XXX and million $XXX million Taken together, and million. point million Adjusted expect And compared compared to million currently $XXX are compared EBITDA We the range. XXX year, full total outlook $XXX previous million to $XXX million we guidance in to million to $XXX this previously. XXX XXX revenue at gross tightening capital of to previously. rental $XXX between our our million equipment $XXX between to and expenditures $XXX

on remainder seen, for improving lines That we open the are the business focused our you solid levels GG, recently activity and we the concludes the overall execution by We may are remarks. year. encouraged prepared for of now questions. have

Operator

Oppenheimer. Instructions] [Operator question line Our the Schneeberger comes from from of Scott first

Scott Schneeberger

or talk I'm Could six to a going going reverse going you're Could And particularly oil company what to you and of what type you you're the a you're -- to in relative each now in in major total in talk I segments in what have or you of segment to of start I'm seeing -- year's each go what the believe Joe, go quarter about bit and you track. last of of with about mix quarter? last seeing order. gas? is Adler. I'm just seeing that

Joe Hanna

Sure. I'll last address the first.

I mix went think up the X%.

right it's range think I X% now. in the

a year-over-year it really on So hasn't basis. changed

they're as the construction that would oil quite us. things actually, plant that seeing And busy. pertain do with is all $XX, a Customers site over being remediations, we're for activity up by Industrial of to up gas, healthier hold. business now are are services strong. business last substantially are were a than I means work, the really And across Adler. saying activity segments. of is rig is back starting now of good. they like contributing then busy. course, positive So oil picked other of busier and has they had been Factories all of just up work, what clients from at course, in that's Environmental to And that put that's being momentum year. on characterize and projects All that year. last actually And to right price counts

Scott Schneeberger

-- these assume? I each they're So segments all are up of year-over-year,

Keith Pratt

Yes.

six So were the of five up.

Joe Hanna

Yes. Five are up. six of the

Keith Pratt

X% said, both up And to went actually strength, Construction not was really based gas. went rental to X%. and really the slightly, ago, and compared it year Joe And it up actually and in of It's business. but oil up from gas broad down as being material. a oil but regionally Adler, Adler the year-over-year, of part smaller mix of a that was part XX%

So to the a with It's starting business pleased had and recover again, trends. good quarter. the

Scott Schneeberger

Great. TRS. Over to

Just provide on transition? could if the update, an you please, XG

Joe Hanna

significant think that Not in what Sure. in activity year, rollout, terms from the important had in the more I of we're seeing what customer to it's activity. we change activity lot labs. XG a earlier XG, reported more is in And just the note unlike broad-based

of the seeing on actually And so towers. There's less then requirements towers. testing on purpose activity more as And general we're the that uses our equipment. just much not

business our picked so of part wired up. of the communications But communications the hasn't wireless actually And part the really has. business

fiber being the expanded. towers, bandwidth is fiber fiber towers, laid that's to so the up the the home, all of that of that all goes that's And to being

segment long-term stick that and activity in with again, number to think that that going quite And the we're ahead. And of for messages customers seeing a activity getting on business. of from us rollout is we're our XG quarters the with long-term good we we're the so pleased

on So that. positive we're very

Scott Schneeberger

seeing customers your which to own and with discussion headwind problem a summary categorizing is just and occurring significant supply having serve Excellent. us what B, Just chain your projects; A, -- curious headwind product elaboration give to therefore, a maybe on what's customers? significant and more you're delays if getting more chain you is a supply of little is modular, pushing bit of: or both and more out Heading please. over could kind each, your unable just on a

Joe Hanna

Sure.

is being the And one not I business. to first supply site. the customer the they take issues. the on able do need to has chain more materials say get impact that me substantial customers to just that Let with would being

may And they so -- had planned. than cost or more they

the customer project more so that than it out a project. oh, we go issue need, and requote they're and hey, then necessary of you cost there the is going And realize, that delay back to scope thought was, they this and on a and is quotations may And they project what ready embark see the perhaps is project. right to as there in to a need cause some may just we take getting

the -- -- that seeing And so business dynamic that those we're sales of on. these some with supply of across projects things these we're are some working

a own has as supply, say typically might months. several would business, affected more three in And our bit. something or takes a far that our weeks that's us been or now As that building take window I too for Enviroplex two

to ship may we the can be the installed, the not finish and so And building able can building we get project. we

causes delay. occasions. has but I so to a extensive, on few happened And say us wouldn't that And a it it's

right and ever so as now. kind seen I turbulent of I've of doing been of XX I flavor which the haven't supply for unusual. these this And dynamics it experiencing now, quite years right some now, is that very, that's as are very chain we're the mean,

working this. And Scott, through thing And very see so that is the for us, most we we're pipelines. important healthy

affecting these doubt as so the are but we temporary And to disruption ones There's through business. think ones just to basis. cause viewing I don't are we're work major that it, issues can going the that on that about and longer-term a business things no

helpful. So hopefully, that's

Scott Schneeberger

modifying kind you then you you addressing with with talk sufficient customers then last they is being? it And how own your and of cover it to Can It your that cost And are price, are the increasing like just sounds on is. mention topic. about And there's of then overall pricing. and issues, assertive but scope, inflation? not

Joe Hanna

say The would And have question. modifications being across customer I that. that that are seeing we of I we We've inventory increased do fair pressures a for mean, do we're a project to we're you centers a cost board. examples, modular to. mandating our an few the pricing as example. give that It's sure. all we Yes, aggressive. in

want charging now product. more, and customers so are And it the they we paying are typically, because

they're much willing as pay to as up not I'll give And has on with the more, not of too necessarily to us, environment it's saying, right happened going them that's that so and hey, common to the scope stick it, but I'm now.

And so we're seeing that more and more.

increase In seeing, terms centers preparing, price that note of that's X% incur we important our our the in increases when ready go you're is out those costs modifying product on when upfront. to But one something on on getting the thing costs to inventory all and that's rental roll rental price collect that, we period. into the over of you rent, that rent, we revenues course, a incur

costs in the as we the come revenues So all the front. product later. kind rent The of come

over that can. imbalance there is there through, you much have all -- of it's something we're and and an work to we possibly to all so but little time that as the about that we're bit planning as we're that mitigate a And talk we

Scott Schneeberger

serve, Okay. that assume you student population please? One needed. growth on it from then It very geographies the classrooms is we X for was from frame I your XX,XXX again? me. commentary one What break for interesting quickly Could last and national. that time number more was million down the me

Joe Hanna

was pertained geographies serve. number that to that we Actually, that Scott, the Sure. --

the Texas when a that states look national desirable, are are of and present like as know, of And locations we that in wasn't moving Florida across weather you of you at course, to, country the geographies warm the are many and people very in, number. them that So Mid-Atlantic. map

demand, construction seeing a continued that's we've years, facilities seven million many And years, seen student meet huge this fast students projects cannot demand. many, that's that districts with keep X to in over just and continued many, as -- lot. driver a influx up enough of because positive as and we're us so population, for the

in state there's well, like at the with actually look a there. say, might California, shifts on the you going What within is seeing if Now you state. we're population what's California

out creating and So to areas us. for state demand that's in they move may move people might other suburbs. San Francisco Well, of in the the

though, growing, that still classroom And and seen as that of like so -- even for a not continued view for view student And business that a rentals have California, -- there's driver many we years, us. populations in that's state overall, we been us. we've

Scott Schneeberger

Got just it. said that's you over years, clear, be million And $X seven to correct?

Joe Hanna

Correct. Correct.

Operator

Our of question Riddick from Sidoti. comes next Marc from line the

Marc Riddick

be? services about what So touch to bit there that to wanted are wonder I things. you now of a first on driver bit a versus could can talk you if on from little seeing little the you of needs, I you needs, kind side on need then where you're And where labor we feel spending follow-up there.

Joe Hanna

the you for referring extra services Or side are business, to provide we that? deliveries modular you services are So kind like of the just driver say to that of to be things clear, and and referring the the you when situation buildings?

Marc Riddick

the of Yes. More Correct. latter.

Joe Hanna

latter. The

pressure to operations. an can that situation. driver conduct once the option, do wheels now margins more, has it say a tough. We positions keep have in really it's in does that has them. that, most have a do And that to ability would drivers, been Company. that we hiring turning Yes, the outsource that right Yes. impacted is our our ability Okay. particular we but difficult it's across But I not will it area It's -- been and drivers we to and of to don't keep one we're the cost if not -- find

answer here. So it has not been a hindrance for us question? your Does as move along that we've continued to

Marc Riddick

your on if you're are an flow? coming about if does. then a future insights over since it to have frame kind with funding update of there level was move just yes, order where could greater of us talking wondering I sort then the availability of And markets, moment. I bit Yes, for of summer time could you to in we give pricing seeing back availability there if that a the been you a dynamic comfort wonder

Joe Hanna

this, never now, this, can you in I Marc. have variety to I operate tell a seen I areas the that can different and lot I of have of I in. funding actually reviewed funding, them And we as situation Sure. funds, for packages the say the use due the were earmarked lot say is what availability that available that that have been that's funding would a of funding though new year. stimulus that with here And a this will see, made been that of facilities. What national funding is is has for schools happens not necessarily passed I programs. the you even seen

teachers, classrooms. more more mean teachers mean programs New more

so as what to takes these see us. for we need in, that you'll rent gap. we're have going and that indirect we off facilities enough times, way put to to that something fill this programs funding And don't is down comes new to And an

And been way funding and it's positive it over now. a right the than while environment It's so just for into I'm more the it its just we expected, to takes very -- make had market.

Marc Riddick

kind efforts the update bit Got and marketplace a where sense. kind of and obviously, a you there's on makes of supply the an -- on lot bit been some and cons you. it. you of shift maybe -- of with more if give acquisitions a give of as That what of going Wanted and as a on integration internally the chain have over update feel direct But maybe? far then could quite pros the to the

Joe Hanna

quality very a just first are of then -- some can can the I'll But little have the businesses the acquisitions, with follow-up financial I we all, been these well. bit run with and pleased people, of details. Sure. Keith start,

road so are with process. the And very we much down integration the

they so onto with transact folks prepared businesses done are systems. able over well the switched have our and in And we customers. have to with that We training

we've get Space, utilization get We very product next be And quarters. inventory, short have hands product In in where there. placed Those to are the folks very out locations Design folks is with that particularly identified, several they're to because to their and locations. those eager those in over that's high. to orders new going delivering -- customers

for a It's some earlier an good been of that as for us, bit just otherwise, little less chain the It's the view where we explained and being have been projects that to And reasons we supply seen pushed. issues than we sales issue. have So a and issue. timing environmental progress lighter. But due is in revenues. all

the pipelines employees of had in new the are businesses into little We've turnover Our terms fold. bringing very very strong. in

in we're we're that -- knowledge. so And that customer maintaining that

just -- to to unfold so And these quarters it's our we ahead. we're here really going that fly, things be the next need and in doing and wings let

Keith Pratt

flow Yes, integration, Marc, also seeing through in you're the of it the terms financials.

that and tied third the to roughly was similarly, the line center got itemize business, we costs SG&A. increase, more increase was of look our look DCRO amortizing million SG&A modular rate in and on that at of that areas, run of of acquisitions, inventory if You've the to X/X now up our quarter is up on income DCRO million acquisitions. a million And that And at increases the year-over-year, was also year-over-year, $X.X those is the intangibles. related item $X.X modular or $X.X $X.X if our includes what the you million the statement in the you modular for the $X.X million

really about business. year, Joe a side, So now a sales positive forward. the segment look you've of Design of and higher just third commented. when in business. The changed I said, We Space at the design on challenging at we we've mix Kitchens part the view To that as And Joe lot than arena year. areas that see for through for traditional don't view as a you say, adjustments We're this would we working says, modular issue. good the the commented, as sales happening side, longer where supply Go the this rental very particularly feel the sales structure on is numbers here. chain them. been also higher the space more And Joe go Modular a as are better has a got lot long-term positive cost the It's the the quarter, opportunities our of

Operator

and appears to [Operator that last be gentlemen, Instructions] the question. Ladies

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

Joe Hanna

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

Operator

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

You disconnect. may now

McGrath RentCorp (MGRC) 29 Oct 212021 Q3 Earnings call transcript