Mcgrath Rentcorp Q1 FY2026 Earnings Call

Ladies and gentlemen, thank you for standing by. Welcome to the McGrath RentCorp First Quarter 2026 Earnings Call. This conference is being recorded today, Wednesday, April 29, 2026. Before we begin, note that the matters the company management will be discussing today that are not statements of historical fact are 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 of 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 are disclosed under the 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 forward-looking statements. In addition to the press release issued today, the company also filed with the SEC the earnings release on Form 8-K and its Form 10-Q for the quarter ended March 31, 2026. Speaking today will be Phil Hawkins, Chief Executive Officer; and Keith Pratt, Chief Financial Officer. I will now turn the call over to Mr. Hawkins. Go ahead, sir.

Thank you, Stephanie. Good afternoon, everyone, and thank you for joining us today for McGrath RentCorp's First Quarter 2026 Earnings Call. I'm pleased to report on our performance over the past quarter and to provide an update on our outlook for this year. I will also address current economic conditions and the possible effects of the Middle East conflict on the business. First, our quarterly results. Total company revenues increased 2% and adjusted EBITDA decreased 1% compared to the prior year first quarter. This performance was driven by continued progress from our modular strategic growth initiatives and strength in TRS, too. We delivered rental revenue growth in each of our businesses despite some challenging market conditions. Higher equipment preparation expenses and lower sales at Enviroplex were headwinds to profitability for the quarter. Yet we still managed to deliver adjusted EBITDA essentially flat with last year. At Mobile Modular, rental revenues grew 4%. Our commercial market segments were the primary drivers of our growth. These included government, manufacturing, health care and data center projects. Education demand levels remained steady. As we prepared existing units to meet demand, our operating expenses increased. These higher costs supported increased shipments in the first quarter and beyond. The Architecture Billings Index, or ABI, and other macro indicators of construction-related demand remain subdued. Despite this, our quote and booking levels were higher than a year ago with our geographic expansion efforts and additional sales coverage contributing to these positive trends. Our services expansion initiatives, Mobile Modular Plus and site-related services, saw solid increases in the quarter, helping to offset lower utilization. Modular equipment sales were lower in the quarter, any fluctuations. Turning to our portable storage business, rental revenues increased slightly with steady demand, while higher costs compressed profitability for the quarter. At TRS, rental revenues continued their recent growth trajectory and were up 13%. Demand continued to be strong across the broad spectrum of our equipment, and we benefited from projects supporting build-out of new data centers. Overall, I'm pleased with our start to the year. Turning to the broader macro environment, recent developments in the Middle East had no material impact in the first quarter. This could change as the year progresses and may increase uncertainty or result in customers delaying projects. Additionally, higher energy prices for an extended period may start to impact operating costs. As always, we remain vigilant and we'll be ready to make adjustments as needed. McGrath remains well positioned, having improved first quarter rental revenues across all divisions despite some challenging market demand conditions. Our strong balance sheet gives us the flexibility to fund organic growth opportunities, support a steadily increasing dividend and retain capacity for strategic M&A and share repurchases. We continue to demonstrate this in the first quarter. Capital spending increased to fund organic growth in new modular geographic markets and we increased investment in TRS to support strong market demand. We also worked on a small modular acquisition, which we closed in early April. In addition, we completed share repurchases during the quarter. I'm confident we have the right team and discipline in place to drive shareholder value in the years ahead. I would like to thank our team for your engagement in delivering these results, and our customers and shareholders for your trust in our company. With that, I will turn the call over to Keith, who will take you through the financial details of our quarter and our outlook for the full year.

Thank you, Phil, and good afternoon, everyone. As Phil highlighted, first quarter results demonstrated steady progress with rental revenue growth in each of our divisions. Looking at the overall corporate results for the first quarter, total revenues increased 2% to $199 million, and adjusted EBITDA decreased 1% to $74 million. Reviewing Mobile Modular's operating performance as compared to the first quarter of 2025, total revenues for Mobile Modular increased 2% to $134 million, and adjusted EBITDA decreased 1% to $47 million. The business saw 4% higher rental revenues, driven by growth from our commercial customer base, and 4% higher rental-related services revenues due to higher site-related services projects. The growth in rental operations was partly offset by 7% lower sales revenues. Inventory center costs increased by $3.2 million as we prepared equipment to support higher shipment levels. This expense compressed rental margins to 56%, down from 60% a year ago. Sales revenues decreased $1.6 million to $20.9 million as a result of lower new and used sales projects during the quarter. Average fleet utilization was 70% compared to 74.6% a year ago, consistent with the challenging demand environment. First quarter monthly revenue per unit on rent increased 7% to $889. For new shipments over the last 12 months, the average monthly revenue per unit increased 1% to $1,208. There is still a positive pricing tailwind opportunity as our fleet churns. We continue to make progress with our modular services offerings. Mobile Modular Plus revenues increased to $10.3 million from $8.6 million a year earlier, and site-related services increased to $5.3 million, up from $4.1 million. Turning to the review of portable storage in the first quarter, total revenues for portable storage increased 3% to $22 million, and adjusted EBITDA was $7 million, a decrease of 17% compared to the prior year. Rental revenues for the quarter increased 1% to $16.3 million and rental margins were 80%, down from 84% a year earlier. Adjusted EBITDA was lower as a result of several cost and margin pressures in the quarter; inventory center costs increased as we prepared equipment to support higher shipment levels. Rental-related services margins for deliveries and pickups were pressured in a very competitive environment. SG&A expense increased in part because we invested in sales coverage to support longer-term utilization improvement across the current branch network. Average utilization for the quarter was 58.6% compared to 60.2% a year ago. Turning now to the review of TRS-RenTelco, TRS had a strong quarter with total revenues up 11% to $39 million and adjusted EBITDA up 16% to $21 million. Rental revenues increased 13% to $29 million as the industry continued to experience improved demand conditions and the business benefited from projects supporting data center build-outs. Rental margins improved to 45% from 40% a year ago. Average utilization for the quarter was 66.1%, up from 61.6% a year ago, and was the highest first quarter level since 2021. Sales revenues increased 1% to $8 million and gross margins were 55% compared to 47% a year ago. Lastly, on Enviroplex, compared to a very strong first quarter in 2025, Enviroplex total sales revenue decreased 51% to $3.7 million, and adjusted EBITDA declined to a loss of $1.1 million from a profit of $0.4 million. The remainder of my comments will be on a total company basis. First quarter selling and administrative expenses increased $2.6 million to $53.5 million primarily due to higher salaries and benefit costs. Interest expense was $6.5 million, a decrease of $1.7 million as a result of lower average debt levels and lower interest rates during the quarter. The first quarter provision for income taxes was based on an effective tax rate of 26.7% compared to 24.6% a year earlier. Turning to our year-to-date cash flow highlights, net cash provided by operating activities was $42 million compared to $54 million in the prior year. Rental equipment purchases were $45 million compared to $12 million in the prior year as we increased investment in modular geographic expansion opportunities and to support higher demand at TRS. In addition to investments in new fleet, healthy cash generation allowed us to pay $12 million in shareholder dividends and to complete $12 million of share repurchases. At quarter end, we had net borrowings of $546 million, and the ratio of funded debt to the last 12 months actual adjusted EBITDA was 1.51 to 1. For the full year, our outlook remains unchanged, and we expect total revenue between $945 million and $995 million, adjusted EBITDA between $360 million and $378 million, and gross rental equipment capital expenditures between $180 million and $200 million. We are encouraged by the progress made during the first quarter, and we are fully focused on solid execution for the remainder of 2026. That concludes our prepared remarks. Stephanie, you may now open the lines for questions.

We'll take our first question from Manav Patnaik with Barclays.

This is Ronan Kennedy on for Manav. Can I just ask some follow-ups to start on demand trends in end markets. I think you called out strength across government, manufacturing, health care, data centers; which of these are the largest contributors? And how are the trends in terms of the momentum in each? And then for the education end market, I think you had indicated demand is steady. Has that changed at all in terms of visibility?

Thanks, Ron. I appreciate that. I think those modular product customer segment areas that we called out—government, manufacturing, health care, data center—the majority of that work would fall into what you would call the mega project category. So I wouldn't call out one of those buckets over another, other than that we're seeing that large project demand in several of those verticals, a piece of that being data centers. On the education side of the business, we spend a lot of time internally drilling into our performance by market. There's a lot of headlines out there about decreasing student populations. I think the important thing to remember there is there's still increasing demand for modernization work due to aging school infrastructure. And so when we look at Q1, adjusting out the abnormal demand we saw last year related to the Southern California wildfires, our first quarter education bookings were roughly flat year-over-year—kind of that steady demand level with those two offsetting macro factors contributing to that.

Got it. And another on kind of macro commentary and potentially early signals. I think you indicated that the Middle East situation had no impact in Q1, but could increase uncertainty or delay projects. Have you seen any early signs of customer caution or changes in quoting, booking behavior since the quarter end? And then I think you also flagged a risk of higher energy prices impacting costs. Where would that show up? Would that be in the equipment prep, delivery logistics or broader operating expenses?

Maybe I'll just start by saying we're actively monitoring and managing these types of geopolitical events and the impact they have, both on our cost structure and our supply chain. We haven't seen any material impact, as I mentioned, in the first quarter or here in the early months of April. I think the place that you'd probably see that occur first if this is extended would be in the fuel cost area or fuel exposure, and even there, the majority of those costs were able to be passed through to the customers and we manage those pricing increases in real time through our pricing optimization tools. We haven't seen any further delays or customer questions at this point. I think it's still too early to see that, and we'll keep monitoring to understand if there's any longer-term downward pressure on demand.

I think, Ron, the other thing to keep an eye on is just more broadly higher energy costs can be a driver for broad-based inflation and ultimately that cost and other things. It's just way too early to get any read on if that's going to be an issue and to what extent. And as Phil said, we'll be vigilant. We'll look to make adjustments if we need to. So very early days, but no impact at this point.

Got it. And then on the bookings strength and macro indicators going back to demand, I think ABI and macro indicators remain subdued, but internal booking activity is improving. Can you kind of talk about how that reconciles internal strength versus weaker indicators? And then I think booking levels were higher, yet utilization declined and revenue growth remained modest. Can you reconcile those dynamics as well? And should we anticipate change in conversion timing from bookings to shipments to revenue, et cetera?

Yes, I think I'll start with the booking question. There's a lot in modular that's encouraging. There are several factors that helped us in the quarter. We talked about our sales growth—more sales reps in more markets. We closed several of the data center and other large industrial project opportunities that we've referenced and we continue to see growth in government opportunities. So on the booking side, those are the dynamics. And as you know, closed orders can have some lead time; it can be months before those project sites are ready and we're actually delivering. So I think what you're seeing is the normal lead times and sales cycles between closing and delivering and billing projects. Keith, anything else you'd like to highlight there?

Yes, I think that answers it. I think the utilization comment as well just to reconcile that—what we're seeing is good leading indicators in terms of the bookings and the activity levels, and we're actually shipping more, but offsetting that, we're still getting returns that are higher than the ships, and that's why you're seeing the utilization metrics under pressure as it has been for multiple quarters now in this overall softer macro environment. So again, positive with new business, but not enough to offset the returns that occur in the normal course for projects that started in previous periods.

We'll take our next question from Scott Schneeberger with Oppenheimer.

Real nice quarter. You beat us top to bottom, and I love that you grew all the segments in rental revenue—that was impressive in the quarter. It's—and I guess, first, it would normally be a later question, but intriguing because of how infrequently you all make buybacks, but you did share repurchases in the quarter. I think it's been many, many years since the last time you did that. I guess, Keith, first question for you, care to elaborate on that? And is that something that we should expect to persist?

Yes. I'd say share repurchases are something we review on a regular basis. It's part of our capital allocation framework. As you know, we look at our capital requirements for organic investment, and that has been our primary use of capital over the years. We also, in recent years, are more active in M&A. So we have an active pipeline. We're constantly reviewing opportunities in that pipeline that have potential—what potential size and timing they could have and all the normal things you would expect in terms of looking at dividend plans and other items. So you're right, we haven't done any repurchasing since the COVID era back in 2020. When we look at where we are today and especially with leverage being a little bit lower, the business being extremely healthy and then some attractive opportunities in terms of where the equity markets were trading in March, we felt it was a good time to be active. We'll continue to monitor opportunities in the market, and we have a very large authorization with over 1.8 million shares available and authorized for repurchase under the current plan. So this is a good tool in our capital allocation toolkit and one that we're absolutely willing to use under the right circumstances.

I appreciate that. I want to ask, following up on Ronan's questions in modular and add portable storage to this question. What kind of trends are you seeing in April? You start to get a bit more of a seasonal uptick, and we're now largely through the month. You maintain the guidance for the total company; Dana will talk about TRS in a second. But how is the seasonal uptick occurring? Are you seeing what you want to see to anticipate a good year? I know you've guarded a little bit on the Middle East conflict but not seeing it yet. So that aside, is it developing and shaping as you would have expected?

I'll take that one. I think everything we've seen so far through the month of April—our activity levels are consistent with what we experienced in Q1. So solid bookings in Mobile Modular, still kind of flat in portable storage and continued strength at TRS. So that's what we're seeing that helps us feel good about the guide for the rest of the year.

Appreciate that. And real nice to see in modular the new shipments at plus 1—that's a good sign for the upcoming year. I want to ask about cadence of sales in modular—it was a little lighter in the quarter on a year-over-year basis, and that was due to a tough year-over-year comp. How should we think about the cadence over the course of this year? And how impactful can sales be to the model on a quarterly basis and then pulling up and thinking about it on an annual basis?

Sure. It's actually one of the tougher parts of the business to give an answer on sales. We feel very good about our capabilities in the area; as you know, we've described this as an initiative area. It's very complementary to a lot of our customer engagement on larger rental opportunities. So we feel good about it as an initiative. The sales side of the business is not immune from some of those macro factors that impact rentals. We've seen examples where projects are planned and get delayed or there are issues in the field with permitting. So we often run into situations where we have good visibility on future projects, but being really confident about which month or even which quarter we're going to see the revenue can be a lot trickier. The guidance range for the year, and you see that breadth of the range on revenue, in part reflects a lot of possibilities on the sales side. It could be a flat year to last year or even down a bit. It could also be a very positive year and up from last year. Really, at this point, it's a pretty wide spectrum of possibilities. And then when you look at it by quarter, I would say it's typically more significant in the second half of the year than the first half. You can look from the outside, just as we look at the insights, look at past patterns as to how the sales have been recognized by quarter, but it is one of the trickier areas. It's part of the business that we're focused on. We have a good team. We see good long-term opportunity.

Great. And then last from me on the data center momentum: how much more momentum should we anticipate—should we anticipate this level of sustained momentum going forward? And how long? Because you guys kind of are a data center story now. I know you don't share exact numbers of how much—and it's actually hard to parse for you how much is data center related. But I know you're getting a lot in TRS. Does that mean that you have a long tail to this model, given the long tail we would expect of activity at data centers?

I'll take that one. Let me acknowledge that everybody is looking more closely at TRS as it contributes to our performance in a more meaningful way. We don't have a crystal ball on these things, but our team has been through many technology cycles and they know how to manage them well. I think our view of demand, even though we had shorter rental terms in this space, is pretty solid for the rest of the year. It still feels like early to mid-innings on the whole data center play. So we feel good about the TRS demand through the end of this year.

We'll take our next question from Daniel Moore with CJS Securities.

I apologize if you had this in the slides and I missed it, but of the 4% growth in Mobile Modular, can you just talk about kind of price versus volume and your outlook for growth for the next several quarters?

Sure. One way to look at that, Dan, is if you look at the 4% growth in rental revenues, you can also see in our commentary and in our investor materials that average revenue per unit on rent increased 7% to $889, which I referred to in my prepared remarks. So how do you get from a 4% rental revenue growth if you've had a 7% lift in revenue per unit? The answer is we had roughly 3% fewer units on rent, and that's how you bridge those numbers. Those trends are fairly consistent with what we've seen in recent quarters and I think they're positive. Certainly, the opportunity here is when we get to the point where units on rent are not declining and are flat—or at some point increasing—there will be even more horsepower in those dynamics.

And from a margin perspective, sticking with TRS, 13% growth was impressive. Just talk about the drivers and the sustainability of continuing to sort of expand margins year-on-year that are embedded in your guidance for the remainder of this year?

Yes. I think the thing that we always work through over the course of the year are the expenses we incur to get units ready to ship from the modular fleet. For Q1, we kept a very close eye on the gross margin on rental revenues at Mobile Modular. That was compressed, but it was compressed, I think, for the right reason, which is we're busy getting equipment ready to go out on ramp. Some of those units went out in the first quarter; others will go out in the months ahead. That's normal in the business. Those expenses tend to be heavier typically in the first couple of quarters, even the first three quarters of the year depending on the ebb and flow of shipment activity. If we look at it on a full-year basis, margins should be fairly stable compared to last year. If the expense investment moderates, we get some opportunity to expand slightly. But I would characterize things as fairly stable given that we're making the right investments in the fleet and we're supporting higher levels of activity.

Appreciate it. And shifting to portable storage: obviously, a lot of work has been done in penetrating newer geographies and you generated 1% growth in a flat-to-down market. I think you said April flattish. Are you seeing green shoots that could indicate a return to growth in the next few quarters? And just talk about your confidence in the ability to continue to outpace the market.

Yes. I look at the flattish activity levels and the slight increase in revenue as positive given the macro conditions and the higher commercial construction exposure that business has. I don't think we've seen significant green shoots that cause us to feel like that market is improving significantly; we're holding our own in the current environment. The last couple of ABI prints are closer to 50% but still below, so we pay close attention to that. We use our geographic expansion and services offerings; all those things drive capture of more than our fair share of the projects that are out there, but I wouldn't point to significant green shoots in the near term.

I would just add that when we're in that flattish and relatively stable demand environment, it's certainly positive compared to seeing reduced revenue and reduced shipments. On the other hand, when things are flat, it does create challenges in absorbing some of the normal expense increases in the cost structure that every business has to manage. We have a lot of work to do on costs; we're fully aware of it, trying to manage them closely and efficiently. During this flattish period, earning adjusted EBITDA requires hard work. So we're focused on it; it's an important part of the journey this year to do as well as we can. Certainly, if the demand environment edges in our favor at any point, that's going to really help a lot.

Understood. Last for me: Enviroplex sales obviously can be lumpy. Just are you seeing any kind of slowing in demand? Or was the decline in Q1 sales just a little bit more episodic?

Yes. Dan, I'll go back to some comments I made back in February and just say Enviroplex in 2026, I think performance in terms of revenue and adjusted EBITDA is likely to look a lot closer to 2024 when compared with the very strong 2025 that we had. Performance in 2025 was exceptional, so it's created some very tough comps for us. It's not uncommon to start the year in that business with relatively modest amounts of revenue being recognized and not uncommon to have a loss in that part of the business in the early part of the year. If you look historically, that happens on a fairly regular basis. So again, the results we had this year in Q1 are fine, but compared to the very strong Q1 of last year and full year of last year, it looks a bit more challenged. But it's a good business. We have a great team there and great engagement with customers. It's a good part of the picture.

We'll take our next question from Steven Ramsey with Thompson Research Group.

I wanted to start with the bookings and modular—good story and good elaboration in the Q&A. I wanted to hear about cross-selling in the bookings that you're seeing more recently: cross-selling of Mobile Modular Plus, site-related services and even storage. How would you describe the cross-selling within bookings currently?

Yes. I think that's one of the things that we're seeing—further penetration of those services is leading to pricing improvements and better customer outcomes. There are a couple of things going on: our sales team continues to be more effective at adding those services in and educating customers on what we have to offer, and we're continuing to add services that customers find value in. Those are long-term flywheels with lots of room to run. You can see in the investor deck we've got solid growth rates in both Mobile Modular Plus and site-related services. Our sales teams also work closely between modular and portable storage; we're always looking for opportunities to leverage as many products as possible on the job. So I don't think there's anything new, but further penetration and addition of services is an ongoing trend.

And then I wanted to think about this bookings growth amidst units coming back off rent, which is kind of a multiyear headwind. Do you think we crossed the river on that in 2026? Or do you see a pathway that maybe that shapes up in 2027?

Yes, it's a tough one. We're watching it very closely. If you look at the change in units on rent, the decline was a little less in Q1 than in recent quarters. The short answer is we're not 100% sure when that crossover will come. What we can work on is the front end: work with customers, win projects and continue to drive success in the market. Returns, as you can appreciate, are out of our control in terms of timing—when a customer finishes a project and returns equipment. At some point, logically, if demand is as healthy as it was a few years ago, you'd think shipments and returns start to balance. Hard to tell if we'll see it by the end of this year. We'd certainly like it to be the case, but we're not making strong assumptions that there's a big shift there in the near term.

Fair enough. Okay. I wanted to think about TRS demand rising, utilization rising, yet the fleet size still in that ~22,000 unit range the past five quarters. Do you feel like—or does the CapEx guide embed an increase in units in the TRS fleet for 2026?

All good observations. The first thing I would acknowledge is we've got an outstanding team in that business. They did a great job when demand was decreasing—reducing the equipment pool and successfully selling used equipment at very strong margins. The nice thing is the business conditions have shifted and we had a very good year last year followed by a very good start to this year. As discussed earlier on the call, we're getting some benefit from data center-related work. Where we stand today is the team is doing an excellent job running the business. Utilization was the best first quarter utilization since 2021 and we're more than happy now to add capital. We ended the quarter with utilization at TRS above 68%, which is very high historically for that business. So when we're at that level, it's appropriate to add more capital. If healthy demand continues, that's what we'll do. You're correct in saying that once we increased the gross CapEx guide for this year, we saw the probability that this opportunity at TRS would continue and that we would want to deploy more capital into that business.

Ramsey, I'd also add that pay attention to the dollars of CapEx more than unit counts, because cost per unit can vary widely. If demand is growing and we're deploying more expensive equipment, you won't necessarily see a big change in unit counts, but you'll see it in the inventory size and CapEx dollars.

Okay. And then last one for me: TRS serving data centers. First, is more rental happening for this activity than customers owning this equipment? And secondly, is the margin profile serving data centers comparable or superior to the segment results?

I'll start with the work we're doing in data centers—it's the same work we do on a smaller scale for other customers. There's nothing fundamentally different in the data center environment other than there's a lot more of it happening at one time. It's a volume play; customers still often prefer rental for project-based needs rather than owning. On margin, we're still in the early days: during the build-out phase there's high priority on speed of delivery and getting things up and running, so pricing dynamics can be different. In early days you may see better rates; over time there will be a natural shift as the cycle progresses. Keith, anything you want to add?

Yes, Phil hit the important points. There's not a big difference in the rent-versus-own decision; projects are ramped on a project basis and customers want reliable, well-maintained equipment. From a margin point of view on a transaction basis there's not a lot of difference. The opportunity we saw in the quarter is volume and scale benefits and effective management of the equipment pool—getting more utilization of the equipment we own. Those factors on a total division basis are helpful in progressing margins over time.

We'll take our next question from Marc Riddick with Sidoti.

Certainly, a lot has been covered already. I did want to touch a little bit on where you're seeing progress thus far in some of the growth opportunities and initiatives that you've undertaken. Maybe you could talk a little bit about where you are as far as the geographic footprint as well as sales efforts and how we might see that evolve through the year.

Yes, I'll take that one, Marc. I think Keith talked a bit about the sales dynamic earlier and we also talked about Mobile Modular Plus and site-related services. Geographic expansion is one of our high priority strategic growth drivers, and I'm pleased with the progress. We did a nice job adding to the team last year and we're getting good traction with customers in the markets we've entered. We don't share specific market-by-market details for competitive reasons, but the way we approach this is either adding a new sales rep or doing an acquisition in a state where we didn't have a sales presence or adding sales presence in an adjacent metro market to broaden sales coverage and deploy existing fleet from larger facilities. We've used both methods successfully since we started the initiative coming out of early 2025 to increase our sales footprint and serve customers in more parts of the country, and we're happy with the progress so far.

Excellent. I did want to touch on your commentary around rental-related services, competitive pressures and margin challenges, particularly focused on the competitive landscape. Could you touch a bit about what you're seeing there that might be different or what we should be looking at?

Thanks, Marc. It's a good topic. The comments were mainly around the portable storage business. It's very difficult to make much money on the delivery and pickup of units—it's not a significant profit generator and in some instances can be a loss. Recently, we've seen smaller players sharpen pricing on delivery and pickup. We try to preserve disciplined pricing on the monthly rental charge, and even on deliveries and pickups we try not to give away margin, but the industry has become more competitive. It's harder to cover costs now than two or three years ago. In the first quarter there were a few elements of noise in the numbers that worked a bit against us, so we'll be working hard to manage that area. Getting to breakeven on delivery and pickup would be great, but that's the journey from where we are currently, given the market conditions.

Okay. Great. And then last one for me: I wanted to circle back on the share repurchase activity. Can you talk a bit about the timing that we saw there? Was that throughout the quarter, toward the end of the quarter, or paced in some way that we should be aware of?

We were active in March. There's additional information in the 10-Q, but activity was concentrated in the month of March. As Keith said, we review capital allocation routinely. When we look at all the other capital allocation decisions we're making, this is one we consider carefully. We're well positioned in terms of debt capacity and availability to act and we have a large authorization. We still have a remaining authorization in excess of 1.8 million shares. We may act again on an ongoing basis, but we don't telegraph our intentions ahead of time. We'll report activity as it occurs.

There appear to be no other questions. This concludes the Q&A portion of today's call. I'd like to now turn the floor over to Mr. Hawkins for closing remarks.

I'd like to thank everyone for joining us on the call today and for your continuing interest in our company. We look forward to speaking with you again in late July to review our second quarter results.

Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.