Company: MGRC
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0000950170-25-023116
Chunk: 6

Company: MCGRATH RENTCORP
Filing Date: 2025-02-19
Form: 10-K
Item: Item 8
Chunk 6
---
 not impaired.  If the carrying value of the net assets assigned to the reporting unit were to exceed its fair value, then a goodwill impairment loss is recorded for the amount the reporting unit’s carrying value exceeds the estimated fair value.The Company conducted its annual impairment analysis in the fourth quarter of 2024.  The impairment analysis did not result in an impairment charge for the fiscal year ended 2024.  There were no impairment charges in 2023 or 2022.  Determining the fair value of a reporting unit is judgmental and involves the use of significant estimates and assumptions.  The Company based its fair value estimates on assumptions that it believes are reasonable but are uncertain and subject to changes in market conditions.Earnings Per ShareBasic earnings per share (“EPS”) is computed as net income divided by the weighted average number of shares of common stock outstanding for the period.  Diluted EPS is computed assuming conversion of all potentially dilutive securities including the dilutive effects of stock options, unvested restricted stock awards and other potentially dilutive securities.  The table below presents the weighted-average common stock used to calculate basic and diluted earnings per share:  

          (in thousands)
           
          Year Ended December 31,

          2024

          2023

          2022

          Weighted-average common stock for calculating basic    earnings per share

          24,541

          24,469

          24,353

          Effect of potentially dilutive securities from equity-based    compensation

          29

          60

          166

          Weighted-average common stock for calculating diluted    earnings per share

          24,570

          24,529

          24,519

         In 2024, there were 37,214 shares which had an anti-dilutive effect on the computation of diluted earnings per share that required exclusion. In both 2023 and 2022, there were no shares having an anti-dilutive effect requiring exclusion from the computation of diluted earnings per share.  The Company has in the past made purchases of shares of its common stock from time to time in over-the-counter market (NASDAQ) transactions, through privately negotiated, large block transactions and through a share repurchase plan, in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). In September 2024, the Company's Board of Directors