Q2 2025 McGrath RentCorp Earnings Call
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Ladies and gentlemen, thank you for standing by. Welcome to the McGrath rent, corpse second quarter, 2025 earnings call.
At this time, all participants are in a listen-only mode. Later we will conduct a question and answer session at that time. If you have a question, you will need to press the star key followed by the 1 keys.
This conference call is being recorded today Thursday, July 24th 2025.
Before we begin note that the matters of the company management will be discussing today that are not statements of historical facts, our forward-looking statements within the meaning of the private Securities. Litigation Reform, Act of 1995
Including statements relating to the company's expectations. Strategies prospects, backlog or targets.
These forward-looking statements are not guarantees their future performance and involve significant risks and uncertainties that could cause our actual results to differ materially from those projected.
Important factors that could cause actual results to differ materially from the company's expectations, our disclosed under risk factors in the company's form, 10K and other SEC filings.
Forward-looking statements that are made only as of the date hereof.
except as otherwise required by law, we assume no obligation to update any forward-looking statements,
In addition to the press release issue today, the company also filed with the SEC, the earnings release on Form 8K, and it's formed 10 Q for the quarter end of June 30th 2025.
Speaking today will be Joe Hannah chief executive officer and Keith Pratt Chief Financial Officer.
Speaker Change: I will now turn the call over to Mr. Hannah, please go ahead sir.
Speaker Change: Thank you, Jeff.
Speaker Change: Good afternoon, everyone. And thank you for joining us today from a grass, Ranch corpse second, quarter, 2025 earnings call. We are pleased to be together today and look forward to providing additional perspective on our results.
Speaker Change: I will start with some overall comments on the quarter and Keith will provide additional detail in his financial review before we open the call up for questions.
Speaker Change: The company delivered solid second quarter results. Rental operations, grew by 5% and adjusted ebit dog, grew by 3%.
We continue to execute well across all our business units. With our overall strategy of being a modular Solutions provider at the core of our efforts.
I would like to thank all of our team members for their steadfast attention to our customers, and their consistent focus on excellent project execution. During the quarter,
Our mobile modular division, continued to perform well with total revenues, increasing by 8%.
Speaker Change: We realized rental Revenue growth in both our commercial and education. Sectors.
Speaker Change: With uncertainty in the macro environment, we have seen some customers move more cautiously in starting planned projects.
Speaker Change: While some of our customers were slow to initiate projects, quote activity was healthy and our June rental Revenue. Backlog was up year-over-year.
Speaker Change: Indicators, like the architecture billing Billings index or Obby.
Speaker Change: Commercial winds continue to be centered around, larger infrastructure projects across all our geographies.
Speaker Change: We also saw more activity in the general construction Market with several different Market. Verticals growing in the quarter.
Speaker Change: Funding for the education, business remains solid as the need for classroom modernization and growth in select areas remains consistent.
Speaker Change: We had good order flow during the quarter for Education, rental projects and are now busy completing deliveries for our customers.
Speaker Change: Modular sales revenues were higher for the quarter up 13%, our new modular sales growth initiative, continued to be on a positive trajectory from increasing interest in modular solutions for construction Pro projects, across many market segments.
Speaker Change: Mobile modular plus and site related Services performed. Well, and saw healthy increases in the quarter helping to offset lower units on rent.
Speaker Change: Enviroplex our classroom manufacturing business in California. Had a good quarter.
Speaker Change: Sales revenues and margins were strong for the quarter and the team executed well to efficiently complete projects for our customers.
Speaker Change: At portable storage rental revenues, decreased 5% year-over-year but sequentially improved 5% from the first quarter of this year.
Recent shipment Trends have been encouraging.
Speaker Change: All our Market verticals showed Improvement in the quarter and we are encouraged by the levels of quote activity. We are seeing
Speaker Change: close ratios and rental rates are holding steady and we are maintaining our discipline on winning new orders.
Speaker Change: Turning to TRS rental Telco, rental revenues, grew by 7%. Both our general purpose and Communications rental revenues increased and the start positive start to the year continued through the second quarter.
Speaker Change: Utilization improved, both sequentially and year-over-year and we ended the quarter at 65%.
Speaker Change: Our rental pipeline is stronger than, a year ago, giving us further confidence that this rebound appears sustainable.
Speaker Change: On the m&a front we have an active pipeline to support our modular growth strategy during the quarter. We closed 2 tuck in Acquisitions 1. A modular company in the Midwest and the other, a portable storage company in the southeast,
Speaker Change: These Acquisitions provide additional fleet, team members and customer relationships, with help, which helped accelerate our pace of growth.
Speaker Change: We have a capable team and are working to close more opportunities.
Speaker Change: Tuck-ins. Help us achieve scale and improve margins more quickly in markets, where we do not have a footprint or where we are small and have growth potential.
Speaker Change: We are also able to leverage mobile modular plus and site related services. With these new additions as smaller operators typically, don't provide such services
Speaker Change: I will now turn from second quarter performance, highlights to provide some additional insight into our outlook for the remainder of 2025.
Speaker Change: Now that we have completed half of the year, we are encouraged that the uncertain market conditions earlier in the year. Have not deteriorated significantly and currently we are seeing slight improvements.
The ABI has improved somewhat construction, backlogs also grew slightly in June.
Speaker Change: At present, we have good activity levels in the field related to current projects. This gives us more confidence going into the second half of 2025 and therefore we are upwardly adjusting our Outlook.
Speaker Change: We have been clear in the past quarters that are strategic. Focus is on the modular business and expanding the value of our modular Solutions capabilities.
Speaker Change: Geographic expansion allows us to bring these solutions to customers in Metro areas where we don't currently have rental Fleet or a dedicated sales presence.
Speaker Change: In the first half of this year, we added new sales representatives in several markets. The Hires were completed ahead of schedule, and we now have more horsepower in the field.
Speaker Change: This larger team will yield results in future quarters and years. And we have been very pleased with the quality and capabilities of the people. We have brought on board.
Speaker Change: this allows us to engage with the customer early in the Project Life Cycle and deliver value in more areas from Project design through installation,
Speaker Change: We believe this is an expanding part of the market and we have the ability to meet customer demand across the full spectrum of modular building needs from single wide units to large multi-floor and multi-story facilities for a wide swath of Market verticals.
Speaker Change: In closing, we are successfully navigating an uncertain economic environment as we continue to deliver value to our customers this year.
Speaker Change: We are in our summer months and this is our most active time of the year.
Our teams in the office and in the field are fully engaged and working hard to complete projects safely on time and with great customer service.
Speaker Change: We are cautiously optimistic and economic conditions will improve as we move through the next 2 quarters.
Speaker Change: As always, we will be working diligently to maximize opportunities, to keep the business strong and deliver results for our shareholders.
Speaker Change: With that, I'll turn the call over to Keith who will take you through the financial details of our quarter and our updated outlook for the full year.
Keith: Thank you, Joe and good afternoon everyone.
As Joe highlighted we delivered solid results in the second quarter.
Keith: Total revenues increased 11% to 235.6 million and adjusted IBA. Increased 3% to 86.5 million
Keith: Reviewing mobile modules operating performance as compared to the second quarter of 2024.
Keith: Mobile modular total revenues increased 8% to 156 million.
Keith: all operational revenue, streams grew with 5% higher, rental revenues, 11% higher rental, related Services, revenues and 13%, higher sales revenues,
Keith: the quarter included higher inventory Center expenses to prepare available suite for new shipment demand, which allowed us to minimize rental equipment, Capital spending
Keith: We also incurred higher sgna expenses, as we completed strategic hiring for broader sales, coverage, and long-term growth as Joe described earlier.
Keith: As a result adjusted ebitda decreased 1% to 53.1 million, despite the revenue growth.
Keith: With softer demand conditions we saw lower average, Fleet utilization of 73.7% compared to 78.4% a year earlier.
Keith: Despite the softer market demand, second quarter monthly Revenue per unit on rent increased 6% year-over-year to 840.
Keith: For new shipments over the last 12 months, the average monthly Revenue per unit increased 4% to 1,168.
Keith: We continue to make progress with our modular Services offerings, mobile modular plus revenues increased to 9.2 million from 7.5 million, a year earlier, and psych related Services increased to 6.5 million up from 5.8 million.
Keith: Turning to the review of portable storage.
Adjusted Evita for portable. Storage was 9.8 million, a decrease of 11% compared to the prior year, but an increase of 15% sequentially from the first quarter of this year.
Keith: During the quarter, we saw lower rental, and Rental related Services revenues compared to a year ago. Lower commercial construction project activity continued to make demand conditions challenging
Keith: higher sales, revenues partly offset, rental weakness, resulting in a total revenue, decrease of 3% to 23.3 million
Keith: rental revenues for the quarter, decreased 5%, to 16.9 million, but grew 5% sequentially from the first quarter.
Keith: Rental margins. Were 83% compared to 86% a year earlier and average utilization for the quarter was 61.1% compared to 66.1% a year ago.
Keith: Turning now to the review of TRS or in Telco.
Keith: Increase of 7% compared to last year.
Total revenues increased 3.7 million or 11% to 36.4 million primarily driven by higher sales revenues and higher rental revenues.
Keith: Rental revenues for the quarter increased by 7% as the industry experienced improved demand conditions from end markets,
Keith: Average utilization for the quarter was 64.8% compared to 56.5% a year ago and Rental margins, improved to 44% from 36% a year ago.
Keith: The remainder of my comments will be on a total company basis.
Keith: Second quarter selling and administrative expenses. Increased 4.5 million to 533.5 million. As we completed planned, strategic hiring for long-term business growth and invested in Information Technology projects.
Keith: Interest expense was 7.8 million. A decrease of 5.2 million as the result of lower average, interest rates and lower average debt levels during the quarter.
Keith: The second quarter provision for income. Taxes was based on an effective tax rate of 27.3% compared to 28.8% a year earlier.
Keith: Turning to our year-to-date cash flow highlights. Net cash provided by operating activities was 110 million compared to 139 million. In the prior year as higher net income was offset by working capital changes.
Keith: Rental equipment purchases were 50 million down from 145 Million last year consistent with lower Fleet utilization and our plans to use Avail available Fleet to satisfy customer orders.
Keith: We paid 22 million during the second quarter for the 2, ten Acquisitions Joe discussed.
Joe: These small Acquisitions will support the long-term growth of our modular and portable storage businesses.
Joe: At quarter, and we had net, borrowings of 573 million and the ratio of funded debt to the last 12 months actual adjusted. Evita was 1.6 to 1.
Joe: Wrapping up the financial review. While there is still uncertainty in the demand environment, we are pleased with the results for the first half of the year, and we have seen some encouraging positive Trends as we enter the second half.
As a result, we have upwardly revised. Our full year Financial Outlook, and we currently expect total revenue between 925 and 960 million.
Joe: Adjusted ibitta between 30047 and 356 million.
Joe: And gross, rental equipment, Capital expenditures between 115 and 125 million.
Joe: For the remainder of this year, we expect adjusted Eva to be at a similar level in the third and fourth quarters.
Joe: This Outlook is largely driven by the expected timing of sales revenues and related gross profit. In the second half of this year.
Joe: We are proud of McGrath's second quarter performance and we are fully focused on solid execution for the remainder of the year.
Joe: That concludes our prepared remarks.
Jess: Jess, you may now open the lines for questions.
Jess: Thank you at this time. If you would like to ask a question, please press star 1 on your telephone keypad.
Jess: You may remove yourself from the Queue at any time by pressing star 2.
Jess: Once again, that is star 1 to ask a question.
Speaker Change: We will go first to Scott schneberger with Oppenheimer.
Thanks very much, good afternoon. Um, I got a I got a few questions guys. Um,
Speaker Change: Uh, first off, uh, just on the last thing you said there, Keith about, uh, the balance of third and fourth quarter and the IBA sounds like you have a little bit more to share their on on sales timing. Um, could you just take us to level a little deeper on on, on, on on what you're alluding to? Thanks.
Speaker Change: Contribution of sales gross profit is going to be uh, somewhat similar in the third and fourth quarter. So it's just a sort of timing issue. Uh, the other thing I'd point out is we've actually had very good sales contributions already in the first half of the year, but specifically, the comment was, when you look at Q3 and Q4, uh, adjusted ebit da, we expect will be broadly, similar in each of those 2 quarters.
Thanks. And you're speaking specifically in the mobile module or segments and how far out do you have visibility? Do you at this point have visibility through your end or is it a little bit fluid at this point?
Speaker Change: It's a bit fluid. Uh this is 1 of the areas we've mentioned, with the current demand environment, there can be delays. There can be uncertainty, we'd spend a lot of time assessing the pipeline and assessing, what we think will get realized before the end of the year. And that's all part of our normal, uh, forecasting process.
Speaker Change: Thanks. And that that was the question on sales which is I think how you answered it. Um and uh and clarify, if not, but switching over real quick, just on, on, on rentals. Um, I think with classrooms. Now, you have full visibility to what this year is going to look like, could you speak to that and then any other uh relevant uh comments on uh on on Commercial module or thanks?
Sure. Um Scott I think our our education year this year is going to be that's going to be good. Um we realized orders a little bit later in the year because sometimes districts just uh take longer um in certain years, every year is different. And this year we got orders a little bit later but we're we're happy with the the volume of orders. We got and I think we're going to finish the year in a good space there.
Speaker Change: um, as far as Commercial Business,
Speaker Change: you know, we're seeing increases in in, uh, in a number of different Market. Verticals, of course, there's, you know, the large projects, like data centers and Industrial projects. There's been some pet petrochem business, government Healthcare. I mean, all these verticals are, uh, we're, we're, uh, pretty vibrant in the quarter and I don't see that changing for the remainder of the year.
Speaker Change: Thanks Joe. Um, I I have a lot more but I I I'll I'll leave some for others. Um, so just, uh, I think just a couple more here for now. Um,
Speaker Change: 1 is, uh, just the the, the the the outperformance in the quarter on Eva was, was meaningful. The increased to adjusted Eva dog, guidance, less meaningful? Um, I I think you all were also very cautious back in the first quarter with your guidance. Um, probably overly cautious and retro.
Speaker Change: Respect now. And that was that was uh, tariff uncertainty related. Could you just speak to, what would put you at the high end, or the low end of this current guidance range? Um, and how you came to it? Thanks.
Speaker Change: Yeah, a lot of moving Parts Scott uh, I think, first of all, the sales piece of the business can always move around a lot more than the rental Revenue piece, that tends to move a little bit more steadily. So that's the first comment. You can have some positive or negative impacts from uh sales activity in the second half of any year and that's always a given. Um if you look really across the lines of business, we've had a, a really encouraging start with TRS that look pretty good in the in the first quarter of the year we were feeling good as we exited the first quarter. That is really continued through the second quarter. I would say we're not being aggressive in what we're assuming for the second half of the Year there. So you know, if things go well, we might do better than we're currently expecting and and sort of factoring into our Outlook. Similarly, I would say with portable storage. Uh, it had a very tough year last year. Um, first quarter, it was hard to really get any conclusive signs of a recovery. I feel
Speaker Change: As Joe highlighted we're investing for growth for Beyond this year. As we look at at building the company's presence, particularly in more uh geographic regions over time. And also um using opportunities for tuck in m&a and other initiatives, um, to help, uh, bring that to fruition. So that that's sort of a long-winded way to say, I think we've got the right Outlook at this point in the year, we always try to do better, but we have to be cognizant of the environment, which is still uh, mixed in some areas.
Speaker Change: And that is really comprehensive Keith and thanks I think very helpful as well. Uh, the last 1 for me right now will be um just on this, on this new uh federal tax legislation. Um the uh I I I imagine that we'll have a favorable impact on your free cash flow. Have you all uh done the done, the work on it and come out with any uh quantification of that uh that you can share with us right now. Thanks.
Speaker Change: Yeah, very preliminary but let me start by saying as you know, Scott at the beginning of the year, we we highlighted for everyone in this environment where Fleet utilizations a bit lower at Modell's and portable storage, we're not spending as much money on New Capital uh, for new rental equipment. So it it's a lower year in that regard. So some of the benefits, uh, with the new treatment on the, uh, rental equipment depreciation for
Speaker Change: Tax purposes. Some of that benefit is less pronounced this year. Um, we have run some numbers, the benefit to free cash flow for us. This year is probably somewhere in the 10 to 15 million range. So it is a positive, but it's not a massive needle mover, uh, you know, for us this year.
Speaker Change: Thank you. They just had a follow on on that. Um, probably another full 2 years after this current year. Um, if there's a need to step up the capex, that a, uh, a similar type of tax benefit will be in place. Is that? Is that fair?
Speaker Change: Should be or or perhaps greater if we're spending more heavily.
Speaker Change: Thanks uh, I'll turn it over. Thanks so much guys.
Speaker Change: We'll go next to Dan Moore with CJs securities.
willanlan: Hi. This is willan for Dan. Can you provide an update on the pricing gap between current spot rates for new modular rentals? Versus the average rate on existing contacts, is it still 40% or more? As I begin to narrow and have spot rates been trending, more generally thus far year to date
willanlan: Sure, I and I highlighted some of those metrics as we went through the presentation. Um, I'll I'll try and cover all your topics and and do follow-up. If I don't hit them all. I think for modular, spot rates, are generally, fairly stable overall, um, again with all the variety of regional, uh,
Branches, that we have the different types of product offering in certain regions. There's a lot of moving parts and a lot of impact from mix. So when I make that overall blanket statement, it is a generality. But that's based on the data that we review and sort of trends that we see in the market,
Uh, if you look at the gap between, uh, the dollars per unit on rent that we quoted, and that was 840 up 6% from, uh, the same quarter a year ago, that is still about 39% lower than the LTM rate on new shipments, that was 1,168. So, uh, the Gap is slightly different. I think it was 41% when we looked at the same statistics a quarter ago, but order of magnitudes still similar
willanlan: That is super helpful. Thank you. And then, um, just 1 more. Could you add some more color to portable storage? Would you describe the man is passing along the bottom or are you seeing really meaningful signs of improvement?
willanlan: Um, yeah, I we're definitely seeing signs of improvement. Uh, and um, you know, as we shared even though rents were down 5% year-over-year sequentially, they were up, uh, quote volumes are up. Um, we actually shipped uh the most units in June that we had done since January of 24. So we uh,
willanlan: You know, we're seeing improvements in the business. I think it's I think we're on an upward trajectory, and we're very pleased about that.
willanlan: Thank you.
Steven Ramsey: We'll go next to Steven Ramsey with Thompson research.
Steven Ramsey: Hi, uh uh, good evening. Uh on modular.
Speaker Change: Sales. Folks, can you maybe talk about some of the geographical focus of the new hires or if it's more project or vertical Focus kind of what you're trying to achieve and if this is a focal point for you guys through the rest of this year,
Sure, uh, very important initiative in the, in the company. Um, we through the Acquisitions that we've done over the last several years that has opened up uh, locations for us where we have a small presence and what we like to do and some of those locations and in some new locations that are adjacent, we want to have additional sales power, um and those, those sales assets would uh be um selling either the commercial business or the education business or both. It just depends on what our focus is in each of those markets. But um, very interested in in adding that sales power and increasing our Geographic coverage and we've been making Fleet Investments to support that growth. So, uh, important to the company,
Okay, helpful. And then maybe somewhat related modular plus continues to show very strong growth. You talk about what's driving that if this type of 20% year-over-year growth is embedded in the second half or something, lower is embedded and maybe on the people's side of
Speaker Change: This equation. How are you training folks in the adoption of your own sales, team pushing the modular Plus Solution to customers
Speaker Change: Yeah, that's that's an also an important Initiative for us. And training is a key part of that. Um, we've been consistently doing that over, time to get the sales force comfortable with pres, uh, selling those products to our customers. We've been adding to the, uh, available list of products that we can provide to our customers. And so we're we're glad to see that the year-over-year growth that we realized it was, you know, up 22% as as you had mentioned, it was Healthy Growth. So, um,
We, we anticipate being able to keep up that pace, we've got a lot of ground to cover still. We've got a lot of customers that, um, you know, appreciate those services. And we're we're working in Earnest to, uh, to keep that momentum up.
Speaker Change: When you think about the uh the stabilization and growth now in TRS confirming up in storage modular, be being consistent and June backlogs up enviroplex doing well. I put that all together, the guide raised seems pretty modest. Maybe what I'm thinking about is, does some of this support 2026? And it's just a timing.
Speaker Change: issue of when some of the pipelines convert to rental starts,
Yeah, I I think that's a a good observation. And I would just remind you as we commented, the start of the year 2 investment areas, 1 is in that direct cost of rental operations, particularly for the modular business, where we expect to spend more, uh, readying existing Fleet that's available to meet rental orders and not really using as much new Fleet and that's reflected in a substantial drop in the new equipment Capital spending for the year. So that's an expense increase for the year that does hurt ibida, but it's absolutely the right thing to do for running the business. And then in parallel with that, we do have more elevated sgna, you'll see that in the current run rate, that will continue and Edge up slightly in the second half of the year that's running with a bigger team where we've made some of these strategic hires that support, long-term growth and support initiatives in the company, like some of our IT projects. Uh, these are all things.
Speaker Change: That we planned on doing they're important. They're going to pay dividends uh far beyond 2025, but they are things that we have to absorb uh in terms of in the cost structure and the pressures. The IBA just a little in a year like this uh, that we, you know, where the demand environment is, as we've said, a little mixed in some areas, but overall, I think we're doing well and we're always striving to deliver the absolute
Speaker Change: Most that we can, uh, in future quarters.
Speaker Change: understood and then last 1, for me know it's a small part of the business but enviroplex continues to show very strong growth on
Speaker Change: Max Capacity when you're performing at this type of run rate. And and is this something that is embedded in the guidance, the success of it or or are you trying to be conservative on that segment?
Speaker Change: Yeah, I would say it's embedded in the guidance. Um, we we uh, we're we're happy to see our margins actually, in a, in a good place in that business. It's it's improved over time and a lot of that has to do with the project mix. Um, there could be projects in a given quarter that have more features and uh, requested customer um, features that they might want to have in in the buildings that they order that allow us to actually uh
Speaker Change: Price in additional margin in the job. So you have that and then you have the fact that the plant's full, um, we're we're, we're moving a lot of product through the plant, it gets more efficient. The, the more, uh, product that we that we get online. And um, I think that's just reflective in our performance at this point. Um, and we're, you know, we've been very happy with, um, with how that business is, has performed so far this year,
Speaker Change: And Stephen, if I could just add, I think you're spot on by observing that in. Barlex was a good contributor to the quarter and its metrics look very positive. That's the business. Where just, as Joe said, when we're very busy, um, we're actually in a position where the pacing of deliveries is more balanced by quarter. And so if you look at the
Speaker Change: First half of this year, we had 2 good quarters of contribution from enviroplex and I would think of the second half of the year in a similar way more balanced across the quarters in the past. In certain years, it's been a big spike in the third quarter, uh and much softer, uh, demand levels or activity levels in the other Quarters here. We're very busy. The business is having a good year and we're seeing it as a smoother contribution by quarter at sort of relates to some of my comments earlier, uh, about the outlook for the second half.
Speaker Change: That's all very helpful. Thank you for the color.
Speaker Change: Once again, if you would like to ask a question at a star 1 on your telephone keypad, we'll go next to Mark, Riddick with sedoti.
Mark Riddick: Hey, good afternoon.
Speaker Change: Hi Mark.
Speaker Change: I wanted to touch a little bit.
Speaker Change: The commentary area around the technology. Uh, technology Investments that you, you mentioned, you you mentioned some of the hiring but maybe you'd talk a little bit about, um, some of the focus areas that you that you have there and and what that might look like
Speaker Change: Sure, um, Mark, you know, technology it continues to, you know, refresh and advanced all the time. Uh, we always, uh, work to be a customer. I'm sorry. Ah, ah, ah, uh, supplier that is easy to do business with that requires us to have the latest technology in terms of
Speaker Change: Of our it systems. They need to be upgraded. They need to be, you know, moved from on premises uh, capabilities to Cloud systems. Last year, we we put in a new CRM. I mean, there's all there's AI things that are, uh, important that we pay attention to and incorporate into business. So, you combine all those things together, and it's just an expense that is um, is there and that we're we're going to make sure that we um are uh a a relative player in the industry. And in order to do that, we need to have up-to-date it systems. And um and so we just continue to make those Investments as each quarter passes.
Speaker Change: Okay, great. And then I was wondering if you could talk a little bit about the um, uh, a touch briefly on on some of the, the tuck in the opportunities. Maybe you could talk a little bit about the overall pipeline, what it looks like currently and has that changed much over the last 6 months or so.
Speaker Change: Sure. Um, we, uh, we have an active pipeline. Um, it's um, it's something that, uh, we're paying close attention to and um, it, you know whether these uh businesses come up for sale, typically depends on whether there's a a seller that, you know, has a, a life-changing event or they want to monetize their business or something. And you can't always plan those things. Uh, you know, to take place on a regular
Speaker Change: Regular Cadence, but what we try to do is to be in front of these folks and have relationships with them. And so, uh, when when those businesses come up for sale and come on the market, we want to be at the table, and, um, we've got a nice pipeline of opportunities. A lot of conversations going on. And we're we're looking forward to being able to close more of these in, in future quarters.
Speaker Change: Okay, so only a couple of more for me 1. That was sort of curious about, um, the commentary around portable storage. Maybe you talk a little bit about sort of the, the pacing there is that something that sort of improved through the quarter, um, or or, how should we think about it from a, from a monthly basis in perspective?
Speaker Change: Yeah, I I think Mark I tried to touch on this earlier, encouraging signs in the second quarter. We don't want to get ahead of ourselves. It's still, uh, an environment where commercial construction is softer than a year ago. And so even though we've seen a few positive signs, we're we're sort of measured in our enthusiasm. I think things will progress a little better from here, uh, and we'd be delighted if it was even stronger than that. But that's sort of the way we're looking at the Outlook and I think it's appropriate because 1, you know, pretty good quarter after everything. We've been through over the last uh, 5 or 6 quarters. It's appropriate to be measured and see further Evidence, uh, of a of a build and an improvement in utilization, demand and overall revenue and profitability. That's what we're working hard to achieve, but it's going to be gradual.
Speaker Change: Okay. And then the last for me, I was sort of, I'm not sure. Uh I I think the interest expense was a little lower than I thought it would be for the quarter. Maybe you could touch a little bit on, uh, maybe what you're looking at there for, uh, for a run rate or through the remainder of the year. And and um, and and debt reduction efforts that would be helpful. Thanks.
Sure. Yeah, we benefited from lower rates rates. A year ago were about 6.6% this year, more like 5.6%, and we had 232 million, the last debt in the quarter. So, both those things were a substantial benefit and it let the interest expense come in just below 8 million dollars for the quarter and that's down from 13 million a year ago. So that was definitely a a, a good easing of the burden. I think if you look at the current run rate, that's a pretty good indicator of what we're seeing. Obviously, it depends with, um, any investments in the business in the second half, where the debt level, uh, ends up at the end of the year, but it the current run rate is indicative of the neighborhood that we would expect to be in.
Speaker Change: Great, thank you very much.
Speaker Change: And a final reminder. It was star 1. If you had a question,
Ladies and gentlemen, that appears to be our last question. Let me now turn the call back over to Mr. Hannah for any additional or closing remarks.
Speaker Change: I'd like to thank everyone for joining us on a call today and for your continuing interest in our company, we look forward to speaking with you again, in late October to review our third quarter results.
Speaker Change: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect