Company: MGRC
Filing Date: 2025-04-24
Form Type: 10-Q
Source: 0000950170-25-057987
Chunk: 7

Company: MCGRATH RENTCORP
Filing Date: 2025-04-24
Form: 10-Q
Item: Part I, Item 1
Chunk 7
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 Topic 606) and the underlying service provided for the three months ended March 31, 2025 and 2024:
(in thousands) Mobile Portable Storage
Modular
Three Months Ended March 31,
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2025
Leasing $ 104,764 $ 16,592 26,564 - 147,920
Non-lease:
Rental related services 4,629 3,389 680 - 8,698
Sales 22,490 1,244 7,422 7,213 38,369
Other 36 40 353 - 429
Total non-lease 27,155 4,673 8,455 7,213 47,496
Total revenues $ 131,919 $ 21,265 35,019 7,213 195,416
2024
Leasing $ 94,890 $ 19,030 26,245 - 140,165
Non-lease:
Rental related services 4,272 4,391 623 - 9,286
Sales 25,326 1,212 6,539 1,719 34,796
Other 3,097 127 356 - 3,580
Total non-lease 32,695 5,730 7,518 1,719 47,662
Total revenues $ 127,585 $ 24,760 33,763 1,719 187,827
Customer returns of rental equipment prior to the end of the rental contract term are typically billed a cancellation fee, which is recorded as rental revenue in the period billed. Sales of new relocatable modular buildings, portable storage containers and electronic test equipment not manufactured by the Company are typically covered by warranties provided by the manufacturer of the products sold. The Company typically provides limited90-day warranties for certain sales of used rental equipment and one-year warranties on equipment manufactured by Enviroplex. Although the Company’s policy is to provide reserves for warranties when required for specific circumstances, warranty costs have not been significant to date.
The Company’s incremental cost of obtaining lease contracts, which consists of salesperson commissions, are deferred and amortized over the initial lease term for modular leases. Incremental costs for obtaining a contract for all other operating segments are expensed in the period incurred because the lease term is typically less than 12 months.
Other Income,