AP NEWS

McGrath RentCorp Announces Results for Second Quarter 2018

July 31, 2018

LIVERMORE, Calif., July 31, 2018 (GLOBE NEWSWIRE) -- McGrath RentCorp (NASDAQ: MGRC) (the “Company”), a diversified business-to-business rental company, today announced total revenues for the quarter ended June 30, 2018 of $117.0 million, an increase of 7%, compared to the second quarter of 2017. The Company reported net income of $15.9 million, or $0.65 per diluted share for the second quarter of 2018, compared to net income of $11.5 million, or $0.48 per diluted share, in the second quarter of 2017.

SECOND QUARTER 2018 COMPANY HIGHLIGHTS:

-- Income from operations increased 12% year-over-year to $24.4 million. -- Rental revenues increased 10% year-over-year to $77.3 million. -- Adjusted EBITDA1 increased 8% year-over-year to $45.4 million. -- Dividend rate increased 31% year-over-year to $0.34 per share for the second quarter of 2018. On an annualized basis, this dividend represents a 2.3% yield on the July 30, 2018 close price of $58.19 per share.

Joe Hanna, President and CEO of McGrath RentCorp, made the following comments regarding these results and future expectations:

“Our second quarter results reflect continued positive momentum in all of our divisions as we finished the quarter with a 12% improvement in operating profit. Rental gross profits improved by $3.7 million and sales gross profits improved $1.0 million. We were pleased to see that second quarter demand for our rental solutions was strong, contributing to solid results for the first half of 2018, and setting the stage for the remainder of the year.

Mobile Modular rental revenues for the quarter increased 9% from a year ago, driven by 8% improvement in average rental rates and 1% improvement in average utilization. Rental revenue growth continued to be healthy across commercial and education markets. Despite a dip in sales this quarter, sales bookings are healthy and reflect continued strong demand. Portable Storage rental revenues continue to grow nicely on broad based activity in all regions.

TRS-RenTelco rental revenues for the quarter increased 12%, primarily driven by 11% higher average rental equipment and improved utilization. We continued to see broad-based needs for both communications and general purpose test equipment and we expect this trend to continue for the remainder of the year.

Adler Tank Rentals rental revenues for the quarter increased 12% from a year ago. Rental revenue growth occurred across a wide mix of vertical markets across the country, including upstream oil and natural gas, which increased from 9% to 10% of total rental revenues. Utilization continues to progress as average equipment on rent increased 9%. Rental rates also rose by 2% as we focused on increasing rental rates coupled with better demand, particularly for 21K tanks.

With the benefit of an overall healthy demand environment, these results reflect our continued commitment to drive value from our invested capital base. Each of our divisions has been executing this important work with conviction and we have made good progress.”

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1. Adjusted EBITDA is defined as net income before interest expense, provision for income taxes, depreciation, amortization, non-cash impairment costs and share-based compensation. A reconciliation of net income to Adjusted EBITDA and Adjusted EBITDA to net cash provided by operating activities can be found at the end of this release.

DIVISION HIGHLIGHTS:

All comparisons presented below are for the quarter ended June 30, 2018 to the quarter ended June 30, 2017 unless otherwise indicated.

MOBILE MODULAR

For the second quarter of 2018, the Company’s Mobile Modular division reported income from operations of $11.8 million, an increase of $0.5 million, or 4%. Rental revenues increased 9% to $38.2 million, depreciation expense decreased 1% to $5.3 million and other direct costs increased 22% to $12.5 million, which resulted in an increase in gross profit on rental revenues of 5% to $20.5 million. Rental related services revenues increased 4% to $12.4 million, with associated gross profit decreasing 7% to $2.8 million. Sales revenues decreased 6% to $9.0 million. Gross margin on sales increased to 35% from 26% in 2017 primarily due to higher margins on used equipment sales, resulting in a 24% increase in gross profit on sales revenues to $3.1 million. Selling and administrative expenses increased 8% to $14.9 million, primarily due to increased salaries and employee benefit costs.

TRS-RENTELCO

For the second quarter of 2018, the Company’s TRS-RenTelco division reported income from operations of $8.5 million, an increase of $1.3 million, or 19%. Rental revenues increased 12% to $22.2 million, depreciation expense increased 11% to $8.9 million and other direct costs increased 9% to $3.6 million, which resulted in an increase in gross profit on rental revenues of 14% to $9.7 million. Sales revenues increased 22% to $6.8 million. Gross margin on sales decreased to 58% from 61% in 2017 primarily due to lower margins on used equipment sales, resulting in a 15% increase in gross profit on sales revenues to $4.0 million. Selling and administrative expenses increased 11% to $5.9 million, primarily due to higher allocated corporate expenses.

ADLER TANKS

For the second quarter of 2018, the Company’s Adler Tanks division reported income from operations of $4.1 million, an increase of $1.0 million, or 34%. Rental revenues increased 12% to $16.9 million, depreciation expense increased 1% to $4.0 million and other direct costs increased 8% to $2.7 million, which resulted in an increase in gross profit on rental revenues of 18% to $10.2 million. Rental related services revenues decreased 3% to $6.0 million, with gross profit on rental related services decreasing 20% to $1.2 million. Selling and administrative expenses increased 3% to $7.5 million primarily, due to higher allocated corporate expenses.

FINANCIAL OUTLOOK:

The Company reconfirms its expectation that total Company operating profit will increase 11% to 15% above 2017 results.

ABOUT MCGRATH RENTCORP:

Founded in 1979, McGrath RentCorp is a diversified business-to-business rental company with four rental divisions. Mobile Modular rents and sells modular buildings to fulfill customers’ temporary and permanent classroom and office space needs in California, Texas, Florida, and the Mid-Atlantic from Washington D.C. to Georgia. TRS-RenTelco rents and sells electronic test equipment and is one of the leading rental providers of general purpose and communications test equipment in the Americas. Adler Tank Rentals rents and sells containment solutions for hazardous and nonhazardous liquids and solids with operations serving key markets throughout the United States. Mobile Modular Portable Storage provides portable storage solutions in the California, Texas, Florida, Northern Illinois, New Jersey, North Carolina and Georgia markets. For more information on McGrath RentCorp and its operating units, please visit our websites:

Corporate – www.mgrc.com Modular Buildings – www.mobilemodular.com Electronic Test Equipment – www.trsrentelco.com Tanks and Boxes – www.adlertankrentals.com Portable Storage – www.mobilemodularcontainers.com School Facilities Manufacturing – www.enviroplex.com

You should read this press release in conjunction with the financial statements and notes thereto included in the Company’s latest Forms 10-K, 10-Q and other SEC filings. You can visit the Company’s web site at www.mgrc.com to access information on McGrath RentCorp, including the latest Forms 10-K, 10-Q and other SEC filings.

CONFERENCE CALL NOTE:

As previously announced in its press release of July 2, 2018, McGrath RentCorp will host a conference call at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) on July 31, 2018 to discuss the second quarter 2018 results. To participate in the teleconference, dial 1-844-707-0666 (in the U.S.), or 1-703-639-1220 (outside the U.S.), or to listen only, access the simultaneous webcast at the investor relations section of the Company’s website at https://investors.mgrc.com/. A 7-day replay will be available following the call by dialing 1-855-859-2056 (in the U.S.), or 1-404-537-3406 (outside the U.S.). The pass code for the call replay is 2476588. In addition, a live audio webcast and replay of the call may be found in the investor relations section of the Company’s website at https://investors.mgrc.com/events-and-presentations.

FORWARD-LOOKING STATEMENTS:

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, regarding McGrath RentCorp’s expectations, strategies, prospects or targets are forward looking statements. These forward-looking statements also can be identified by the use of forward-looking terminology such as “believes,” “expects,” “will,” or “anticipates” or the negative of these terms or other comparable terminology. In particular, Mr. Hanna’s comment that the second quarter demand for the Company’s rental solutions have established a good foundation for the remainder of 2018, mobile modular sales bookings are healthy and reflect continued strong demand and that the Company expects broad-based needs for communications and general purpose test equipment for the remainder of the year, as well as the full year 2018 outlook in the “Financial Outlook” section are forward-looking.

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 including: the extent of the recovery underway in our modular building division; the state of the wireless communications network upgrade environment; the utilization levels and rental rates of our Adler Tanks liquid and sold containment tank and box rental assets; continued execution of our performance improvement initiatives; and our ability to effectively manage our rental assets, as well as the factors disclosed under “Risk Factors” in the Company’s Form 10-K and other SEC filings.

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

MCGRATH RENTCORPCONDENSED CONSOLIDATED STATEMENTS OF INCOME(UNAUDITED)

ThreeMonthsEndedJune 30, SixMonthsEndedJune 30, ------------------------ ------------------------ (in thousands, except per share amounts) 2018 2017 2018 2017 ----------- ----------- ----------- ----------- Revenues Rental $ 77,267 $ 69,953 $ 151,528 $ 137,931 Rental related services 19,086 18,796 36,917 36,731 - ------- - - ------- - - ------- - - ------- - Rental operations 96,353 88,749 188,445 174,662 Sales 19,546 20,187 31,637 28,482 Other 1,084 646 1,986 1,275 - ------- - - ------- - - ------- - - ------- - Total revenues 116,983 109,582 222,068 204,419 - ------- - - ------- - - ------- - - ------- - Costs and Expenses Direct costs of rental operations: Depreciation of rental equipment 18,103 17,242 35,880 34,621 Rental related services 15,018 14,312 28,786 28,145 Other 18,753 16,039 35,022 31,398 - ------- - - ------- - - ------- - - ------- - Total direct costs of rental operations 51,874 47,593 99,688 94,164 Costs of sales 11,181 12,778 18,282 17,374 - ------- - - ------- - - ------- - - ------- - Total costs of revenues 63,055 60,371 117,970 111,538 - ------- - - ------- - - ------- - - ------- - Gross profit 53,928 49,211 104,098 92,881 Selling and administrative expenses 29,479 27,365 57,607 55,213 - ------- - - ------- - - ------- - - ------- - Income from operations 24,449 21,846 46,491 37,668 Other income (expense): Interest expense (2,999 ) (2,949 ) (5,991 ) (5,738 ) Foreign currency exchange gain (loss) (344 ) 11 (376 ) 237 - ------- - - ------- - - ------- - - ------- - Income before provision for income taxes 21,106 18,908 40,124 32,167 Provision for income taxes 5,194 7,447 9,746 12,733 - ------- - - ------- - - ------- - - ------- - Net income $ 15,912 $ 11,461 $ 30,378 $ 19,434 - ------- - - ------- - - ------- - - ------- - Earnings per share: Basic $ 0.66 $ 0.48 $ 1.26 $ 0.81 Diluted $ 0.65 $ 0.48 $ 1.24 $ 0.80 Shares used in per share calculation: Basic 24,145 23,985 24,106 23,968 Diluted 24,584 24,092 24,549 24,164 Cash dividends declared per share $ 0.340 $ 0.260 $ 0.680 $ 0.520 ---------------------------------------- - ------- - - ------- - - ------- - - ------- -

MCGRATH RENTCORPCONDENSED CONSOLIDATED BALANCE SHEETS(UNAUDITED)

June 30, December 31, (in thousands) 2018 2017 ------------- ------------- Assets Cash $ 4,484 $ 2,501 Accounts receivable, net of allowance for doubtful accounts of $1,883 in 2018 105,095 105,872 and $1,920 in 2017 Rental equipment, at cost: Relocatable modular buildings 789,158 775,400 Electronic test equipment 278,253 262,325 Liquid and solid containment tanks and boxes 312,168 309,808 - --------- - - --------- - 1,379,579 1,347,533 Less accumulated depreciation (503,057 ) (485,213 ) - --------- - - --------- - Rental equipment, net 876,522 862,320 - --------- - - --------- - Property, plant and equipment, net 121,614 119,170 Prepaid expenses and other assets 37,397 22,459 Intangible assets, net 7,289 7,724 Goodwill 27,808 27,808 - --------- - - --------- - Total assets $ 1,180,209 $ 1,147,854 - --------- - - --------- - Liabilities and Shareholders’ Equity Liabilities: Notes payable $ 314,860 $ 303,414 Accounts payable and accrued liabilities 89,064 86,408 Deferred income 44,073 39,219 Deferred income taxes, net 195,017 194,629 - --------- - - --------- - Total liabilities 643,014 623,670 - --------- - - --------- - Shareholders’ equity: Common stock, no par value - Authorized 40,000 shares Issued and outstanding - 24,170 shares as of June 30, 2018 and 24,052 shares as 101,983 102,947 of December 31, 2017 Retained earnings 435,279 421,405 Accumulated other comprehensive loss (67 ) (168 ) - --------- - - --------- - Total shareholders’ equity 537,195 524,184 - --------- - - --------- - Total liabilities and shareholders’ equity $ 1,180,209 $ 1,147,854 ------------------------------------------------------------------------------- - --------- - - --------- -

MCGRATH RENTCORPCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(UNAUDITED)

Six Months Ended June 30, ------------------------ (in thousands) 2018 2017 ----------- ----------- Cash Flows from Operating Activities: Net income $ 30,378 $ 19,434 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 40,288 38,752 Impairment of rental assets 39 — Provision for doubtful accounts 181 597 Share-based compensation 1,828 1,538 Gain on sale of used rental equipment (9,875 ) (7,914 ) Foreign currency exchange (gain) loss 376 (237 ) Amortization of debt issuance costs 15 25 Change in: Accounts receivable 596 (259 ) Prepaid expenses and other assets (14,938 ) (8,839 ) Accounts payable and accrued liabilities (365 ) 680 Deferred income 4,854 5,034 Deferred income taxes 388 587 - ------- - - ------- - Net cash provided by operating activities 53,765 49,398 - ------- - - ------- - Cash Flows from Investing Activities: Purchases of rental equipment (58,662 ) (46,118 ) Purchases of property, plant and equipment (6,417 ) (9,623 ) Proceeds from sales of used rental equipment 19,212 16,057 - ------- - - ------- - Net cash used in investing activities (45,867 ) (39,684 ) - ------- - - ------- - Cash Flows from Financing Activities: Net borrowings under bank lines of credit 31,431 23,996 Principal payments on Series A senior notes (20,000 ) (20,000 ) Taxes paid related to net share settlement of stock awards (2,792 ) (319 ) Payment of dividends (14,501 ) (12,390 ) - ------- - - ------- - Net cash used in financing activities (5,862 ) (8,713 ) - ------- - - ------- - Effect of foreign currency exchange rate changes on cash (53 ) 18 - ------- - - ------- - Net increase in cash 1,983 1,019 Cash balance, beginning of period 2,501 852 - ------- - - ------- - Cash balance, end of period $ 4,484 $ 1,871 - ------- - - ------- - Supplemental Disclosure of Cash Flow Information: Interest paid, during the period $ 6,123 $ 5,817 - ------- - - ------- - Net income taxes paid, during the period $ 11,675 $ 18,141 - ------- - - ------- - Dividends accrued during the period, not yet paid $ 8,267 $ 6,214 - ------- - - ------- - Rental equipment acquisitions, not yet paid $ 7,201 $ 6,359 --------------------------------------------------------------------------------- - ------- - - ------- -

MCGRATH RENTCORP BUSINESS SEGMENT DATA (unaudited) Three months ended June 30, 2018 --------------------------------------- - ------- - - ------- - - ------- - - ----- -- - ------- - (dollar amounts in thousands) Mobile TRS- Adler Tanks Enviroplex Consolidated Modular RenTelco ----------- ----------- ----------- ---------- ----------- Revenues Rental $ 38,204 $ 22,165 $ 16,898 $ — $ 77,267 Rental related services 12,388 707 5,991 — 19,086 - ------- - - ------- - - ------- - - ----- -- - ------- - Rental operations 50,592 22,872 22,889 — 96,353 Sales 8,961 6,844 30 3,711 19,546 Other 318 636 130 — 1,084 - ------- - - ------- - - ------- - - ----- -- - ------- - Total revenues 59,871 30,352 23,049 3,711 116,983 - ------- - - ------- - - ------- - - ----- -- - ------- - Costs and Expenses Direct costs of rental operations: Depreciation 5,273 8,866 3,964 — 18,103 Rental related services 9,555 638 4,825 — 15,018 Other 12,467 3,563 2,723 — 18,753 - ------- - - ------- - - ------- - - ----- -- - ------- - Total direct costs of rental operations 27,295 13,067 11,512 — 51,874 Costs of sales 5,847 2,891 21 2,422 11,181 - ------- - - ------- - - ------- - - ----- -- - ------- - Total costs of revenues 33,142 15,958 11,533 2,422 63,055 - ------- - - ------- - - ------- - - ----- -- - ------- - Gross Profit Rental 20,463 9,736 10,212 — 40,411 Rental related services 2,833 69 1,166 — 4,068 - ------- - - ------- - - ------- - - ----- -- - ------- - Rental operations 23,296 9,805 11,378 — 44,479 Sales 3,115 3,953 8 1,289 8,365 Other 318 636 130 — 1,084 - ------- - - ------- - - ------- - - ----- -- - ------- - Total gross profit 26,729 14,394 11,516 1,289 53,928 Selling and administrative expenses 14,918 5,942 7,460 1,159 29,479 - ------- - - ------- - - ------- - - ----- -- - ------- - Income from operations $ 11,811 $ 8,452 $ 4,056 $ 130 24,449 - ------- - - ------- - - ------- - - ----- -- Interest expense (2,999 ) Foreign currency exchange loss (344 ) Provision for income taxes (5,194 ) - ------- - Net income $ 15,912 - ------- - Other Information Average rental equipment 1 $ 748,689 $ 274,317 $ 309,853 Average monthly total yield 2 1.70 % 2.69 % 1.82 % Average utilization 3 77.1 % 63.2 % 59.1 % Average monthly rental rate 4 2.21 % 4.26 % 3.08 % --------------------------------------- - ------- - - ------- - - ------- - - ----- -- - ------- -

1. Average rental equipment represents the cost of rental equipment excluding accessory equipment. For Mobile Modular and Adler Tanks, Average rental equipment also excludes new equipment inventory. 2. Average monthly total yield is calculated by dividing the averages of monthly rental revenues by the cost of rental equipment for the period. 3. Average utilization is calculated by dividing the average month end costs of rental equipment on rent by the average month end total costs of rental equipment. 4. Average monthly rental rate is calculated by dividing the averages of monthly rental revenues by the cost of rental equipment on rent for the period.

MCGRATH RENTCORP BUSINESS SEGMENT DATA (unaudited) Three months ended June 30, 2017 --------------------------------------- - ------- - - ------- - - ------- - - ----- -- - ------- - (dollar amounts in thousands) Mobile TRS- Adler Tanks Enviroplex Consolidated Modular RenTelco ----------- ----------- ----------- ---------- ----------- Revenues Rental $ 35,030 $ 19,805 $ 15,118 $ — $ 69,953 Rental related services 11,966 654 6,176 — 18,796 - ------- - - ------- - - ------- - - ----- -- - ------- - Rental operations 46,996 20,459 21,294 — 88,749 Sales 9,504 5,605 926 4,152 20,187 Other 138 475 33 — 646 - ------- - - ------- - - ------- - - ----- -- - ------- - Total revenues 56,638 26,539 22,253 4,152 109,582 - ------- - - ------- - - ------- - - ----- -- - ------- - Costs and Expenses Direct costs of rental operations: Depreciation 5,333 7,980 3,929 — 17,242 Rental related services 8,930 657 4,725 — 14,312 Other 10,247 3,272 2,520 — 16,039 - ------- - - ------- - - ------- - - ----- -- - ------- - Total direct costs of rental operations 24,510 11,909 11,174 — 47,593 Costs of sales 6,994 2,176 802 2,806 12,778 - ------- - - ------- - - ------- - - ----- -- - ------- - Total costs of revenues 31,504 14,085 11,976 2,806 60,371 - ------- - - ------- - - ------- - - ----- -- - ------- - Gross Profit (Loss) Rental 19,451 8,553 8,669 — 36,673 Rental related services 3,036 (3 ) 1,450 — 4,483 - ------- - - ------- - - ------- - - ----- -- - ------- - Rental operations 22,487 8,550 10,119 — 41,156 Sales 2,509 3,429 125 1,346 7,409 Other 138 475 33 — 646 - ------- - - ------- - - ------- - - ----- -- - ------- - Total gross profit 25,134 12,454 10,277 1,346 49,211 Selling and administrative expenses 13,817 5,330 7,261 957 27,365 - ------- - - ------- - - ------- - - ----- -- - ------- - Income from operations $ 11,317 $ 7,124 $ 3,016 $ 389 21,846 - ------- - - ------- - - ------- - - ----- -- Interest expense (2,949 ) Foreign currency exchange gain 11 Provision for income taxes (7,447 ) - ------- - Net income $ 11,461 - ------- - Other Information Average rental equipment 1 $ 746,358 $ 248,117 $ 307,263 Average monthly total yield 2 1.56 % 2.66 % 1.64 % Average utilization 3 76.5 % 62.4 % 54.4 % Average monthly rental rate 4 2.05 % 4.27 % 3.01 % --------------------------------------- - ------- - - ------- - - ------- - - ----- -- - ------- -

1. Average rental equipment represents the cost of rental equipment excluding accessory equipment. For Mobile Modular and Adler Tanks, Average rental equipment also excludes new equipment inventory. 2. Average monthly total yield is calculated by dividing the averages of monthly rental revenues by the cost of rental equipment for the period. 3. Average utilization is calculated by dividing the average month end costs of rental equipment on rent by the average month end total costs of rental equipment. 4. Average monthly rental rate is calculated by dividing the averages of monthly rental revenues by the cost of rental equipment on rent for the period.

MCGRATH RENTCORP BUSINESS SEGMENT DATA (unaudited) Six months ended June 30, 2018 --------------------------------------- - ------- - - ------- - - ------- - - ----- - - ------- - (dollar amounts in thousands) Mobile TRS- Adler Tanks Enviroplex Consolidated Modular RenTelco ----------- ----------- ----------- --------- ----------- Revenues Rental $ 75,231 $ 43,694 $ 32,603 $ — $ 151,528 Rental related services 24,322 1,514 11,081 — 36,917 - ------- - - ------- - - ------- - - ----- - - ------- - Rental operations 99,553 45,208 43,684 — 188,445 Sales 13,554 12,019 335 5,729 31,637 Other 615 1,163 208 — 1,986 - ------- - - ------- - - ------- - - ----- - - ------- - Total revenues 113,722 58,390 44,227 5,729 222,068 - ------- - - ------- - - ------- - - ----- - - ------- - Costs and Expenses Direct costs of rental operations: Depreciation 10,521 17,443 7,916 — 35,880 Rental related services 18,574 1,259 8,953 — 28,786 Other 22,798 7,067 5,157 — 35,022 - ------- - - ------- - - ------- - - ----- - - ------- - Total direct costs of rental operations 51,893 25,769 22,026 — 99,688 Costs of sales 8,779 5,379 289 3,835 18,282 - ------- - - ------- - - ------- - - ----- - - ------- - Total costs of revenues 60,672 31,148 22,315 3,835 117,970 - ------- - - ------- - - ------- - - ----- - - ------- - Gross Profit Rental 41,911 19,184 19,531 — 80,626 Rental related services 5,748 255 2,128 — 8,131 - ------- - - ------- - - ------- - - ----- - - ------- - Rental operations 47,659 19,439 21,659 — 88,757 Sales 4,776 6,640 45 1,894 13,355 Other 615 1,163 208 — 1,986 - ------- - - ------- - - ------- - - ----- - - ------- - Total gross profit 53,050 27,242 21,912 1,894 104,098 Selling and administrative expenses 28,930 11,560 14,658 2,459 57,607 - ------- - - ------- - - ------- - - ----- - - ------- - Income (loss) from operations $ 24,120 $ 15,682 $ 7,254 $ (565 ) 46,491 - ------- - - ------- - - ------- - - ----- - Interest expense (5,991 ) Foreign currency exchange loss (376 ) Provision for income taxes (9,746 ) - ------- - Net income $ 30,378 - ------- - Other Information Average rental equipment 1 $ 747,614 $ 269,455 $ 309,411 Average monthly total yield 2 1.68 % 2.70 % 1.76 % Average utilization 3 77.3 % 62.8 % 58.5 % Average monthly rental rate 4 2.17 % 4.30 % 3.00 % --------------------------------------- - ------- - - ------- - - ------- - - ----- - - ------- -

1. Average rental equipment represents the cost of rental equipment excluding accessory equipment. For Mobile Modular and Adler Tanks, Average rental equipment also excludes new equipment inventory. 2. Average monthly total yield is calculated by dividing the averages of monthly rental revenues by the cost of rental equipment for the period. 3. Average utilization is calculated by dividing the average month end costs of rental equipment on rent by the average month end total costs of rental equipment. 4. Average monthly rental rate is calculated by dividing the averages of monthly rental revenues by the cost of rental equipment on rent for the period.

MCGRATH RENTCORP BUSINESS SEGMENT DATA (unaudited) Six months ended June 30, 2017 --------------------------------------- - ------- - - ------- - - ------- - - ----- - - ------- - (dollar amounts in thousands) Mobile TRS- Adler Tanks Enviroplex Consolidated Modular RenTelco ----------- ----------- ----------- --------- ----------- Revenues Rental $ 68,684 $ 39,551 $ 29,696 $ — $ 137,931 Rental related services 23,554 1,312 11,865 — 36,731 - ------- - - ------- - - ------- - - ----- - - ------- - Rental operations 92,238 40,863 41,561 — 174,662 Sales 12,468 9,988 1,115 4,911 28,482 Other 235 1,002 38 — 1,275 - ------- - - ------- - - ------- - - ----- - - ------- - Total revenues 104,941 51,853 42,714 4,147 203,655 - ------- - - ------- - - ------- - - ----- - - ------- - Costs and Expenses Direct costs of rental operations: Depreciation 10,666 16,071 7,884 — 34,621 Rental related services 17,727 1,254 9,164 — 28,145 Other 19,894 6,605 4,899 — 31,398 - ------- - - ------- - - ------- - - ----- - - ------- - Total direct costs of rental operations 48,287 23,930 21,947 — 94,164 Costs of sales 9,076 4,076 935 3,287 17,374 - ------- - - ------- - - ------- - - ----- - - ------- - Total costs of revenues 57,363 28,006 22,882 3,287 111,538 - ------- - - ------- - - ------- - - ----- - - ------- - Gross Profit Rental 38,125 16,875 16,913 — 71,913 Rental related services 5,827 58 2,700 — 8,585 - ------- - - ------- - - ------- - - ----- - - ------- - Rental operations 43,952 16,933 19,613 — 80,498 Sales 3,391 5,912 181 1,624 11,108 Other 235 1,002 38 — 1,275 - ------- - - ------- - - ------- - - ----- - - ------- - Total gross profit 47,578 23,847 19,832 1,624 92,881 Selling and administrative expenses 27,617 11,019 14,528 2,049 55,213 - ------- - - ------- - - ------- - - ----- - - ------- - Income (loss) from operations $ 19,961 $ 12,828 $ 5,304 $ (425 ) 37,668 - ------- - - ------- - - ------- - - ----- - Interest expense (5,738 ) Foreign currency exchange gain 237 Provision for income taxes (12,733 ) - ------- - Net income $ 19,434 - ------- - Other Information Average rental equipment 1 $ 745,508 $ 247,099 $ 307,048 Average monthly total yield 2 1.54 % 2.67 % 1.61 % Average utilization 3 76.7 % 62.3 % 53.4 % Average monthly rental rate 4 2.00 % 4.28 % 3.02 % --------------------------------------- - ------- - - ------- - - ------- - - ----- - - ------- -

1. Average rental equipment represents the cost of rental equipment excluding accessory equipment. For Mobile Modular and Adler Tanks, Average rental equipment also excludes new equipment inventory. 2. Average monthly total yield is calculated by dividing the averages of monthly rental revenues by the cost of rental equipment for the period. 3. Average utilization is calculated by dividing the average month end costs of rental equipment on rent by the average month end total costs of rental equipment. 4. Average monthly rental rate is calculated by dividing the averages of monthly rental revenues by the cost of rental equipment on rent for the period.

Reconciliation of Adjusted EBITDA to the most directly comparable GAAP measures

To supplement the Company’s financial data presented on a basis consistent with accounting principles generally accepted in the United States of America (“GAAP”), the Company presents “Adjusted EBITDA”, which is defined by the Company as net income before interest expense, provision for income taxes, depreciation, amortization, non-cash impairment costs and share-based compensation. The Company presents Adjusted EBITDA as a financial measure as management believes it provides useful information to investors regarding the Company’s liquidity and financial condition and because management, as well as the Company’s lenders, use this measure in evaluating the performance of the Company.

Management uses Adjusted EBITDA as a supplement to GAAP measures to further evaluate the Company’s period-to-period operating performance, compliance with financial covenants in the Company’s revolving lines of credit and senior notes and the Company’s ability to meet future capital expenditure and working capital requirements. Management believes the exclusion of non-cash charges, including share-based compensation, is useful in measuring the Company’s cash available for operations and performance of the Company. Because management finds Adjusted EBITDA useful, the Company believes its investors will also find Adjusted EBITDA useful in evaluating the Company’s performance.

Adjusted EBITDA should not be considered in isolation or as a substitute for net income, cash flows, or other consolidated income or cash flow data prepared in accordance with GAAP or as a measure of the Company’s profitability or liquidity. Adjusted EBITDA is not in accordance with or an alternative for GAAP, and may be different from non-GAAP measures used by other companies. Unlike EBITDA, which may be used by other companies or investors, Adjusted EBITDA does not include share-based compensation charges. The Company believes that Adjusted EBITDA is of limited use in that it does not reflect all of the amounts associated with the Company’s results of operations as determined in accordance with GAAP and does not accurately reflect real cash flow. In addition, other companies may not use Adjusted EBITDA or may use other non-GAAP measures, limiting the usefulness of Adjusted EBITDA for purposes of comparison. The Company’s presentation of Adjusted EBITDA should not be construed as an inference that the Company will not incur expenses that are the same as or similar to the adjustments in this presentation. Therefore, Adjusted EBITDA should only be used to evaluate the Company’s results of operations in conjunction with the corresponding GAAP measures. The Company compensates for the limitations of Adjusted EBITDA by relying upon GAAP results to gain a complete picture of the Company’s performance. Because Adjusted EBITDA is a non-GAAP financial measure as defined by the SEC, the Company includes in the tables below reconciliations of Adjusted EBITDA to the most directly comparable financial measures calculated and presented in accordance with GAAP.

Reconciliation of Net Income to Adjusted EBITDA

(dollar amounts in thousands) Three Months Ended Six Months Ended Twelve Months Ended June 30, June 30, June 30, ---------------------- ---------------------- ------------------------ 2018 2017 2018 2017 2018 2017 ---------- ---------- ---------- ---------- ----------- ----------- Net income $ 15,912 $ 11,461 $ 30,378 $ 19,434 $ 164,864 $ 42,040 Provision (benefit) for income taxes 5,194 7,447 9,746 12,733 (73,455 ) 31,199 Interest 2,999 2,949 5,991 5,738 11,875 11,399 Depreciation and amortization 20,360 19,348 40,288 38,752 79,952 78,514 - ------ - - ------ - - ------ - - ------ - - ------- - - ------- - EBITDA 44,465 41,205 86,403 76,657 183,236 163,152 Impairment of rental assets — — 39 — 1,678 — Share-based compensation 964 732 1,828 1,538 3,488 3,043 - ------ - - ------ - - ------ - - ------ - - ------- - - ------- - Adjusted EBITDA 1 $ 45,429 $ 41,937 $ 88,270 $ 78,195 $ 188,402 $ 166,195 - ------ - - ------ - - ------ - - ------ - - ------- - - ------- - Adjusted EBITDA margin 2 39 % 38 % 40 % 38 % 39 % 38 % ------------------------------------ - ------ - - ------ - - ------ - - ------ - - ------- - - ------- -

Reconciliation of Adjusted EBITDA to Net Cash Provided by Operating Activities

(dollar amounts in thousands) Three Months Ended Six Months Ended Twelve Months Ended June 30, June 30, June 30, ------------------------ ------------------------ ------------------------ 2018 2017 2018 2017 2018 2017 ----------- ----------- ----------- ----------- ----------- ----------- Adjusted EBITDA 1 $ 45,429 $ 41,937 $ 88,270 $ 78,195 $ 188,402 $ 166,195 Interest paid (3,586 ) (3,397 ) (6,123 ) (5,817 ) (12,131 ) (11,607 ) Income taxes paid, net of refunds (10,103 ) (12,576 ) (11,675 ) (18,141 ) (23,038 ) (28,017 ) received Gain on sale of used rental (6,027 ) (4,971 ) (9,875 ) (7,914 ) (19,694 ) (15,371 ) equipment Foreign currency exchange loss 344 (11 ) 376 (237 ) 279 (42 ) (gain) Amortization of debt financing 2 12 15 25 40 51 cost Change in certain assets and liabilities: Accounts receivable, net (7,003 ) (3,987 ) 777 338 (8,556 ) (925 ) Prepaid expenses and other assets (11,635 ) (7,303 ) (14,938 ) (8,839 ) (2,975 ) (4,027 ) Accounts payable and other 9,621 11,218 2,084 6,754 2,905 7,943 liabilities Deferred income 5,571 2,646 4,854 5,034 1,540 3,509 - ------- - - ------- - - ------- - - ------- - - ------- - - ------- - Net cash provided by operating $ 22,613 $ 23,568 $ 53,765 $ 49,398 $ 126,772 $ 117,709 activities --------------------------------- - ------- - - ------- - - ------- - - ------- - - ------- - - ------- -

1. Adjusted EBITDA is defined as net income before interest expense, provision for income taxes, depreciation, amortization, non-cash impairment costs and share-based compensation. 2. Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by total revenues for the period.

FOR INFORMATION CONTACT: Keith E. Pratt EVP & Chief Financial Officer 925-606-9200

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