Electro Rent : Quarterly Report

ELECTRO RENT CORP

ELECTRO RENT CORP

FORM 10-Q

(Quarterly Report)

Filed 04/08/16 for the Period Ending 02/29/16

Address 6060 SEPULVEDA BLVD

VAN NUYS, CA 91411-2512

Telephone 8187872100

CIK 0000032166

Symbol ELRC

SIC Code 7359 - Equipment Rental and Leasing, Not Elsewhere Classified Industry Rental & Leasing

Sector Services Fiscal Year 05/31

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended February 29, 2016 or

• TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to Commission file number: 000-09061

ELECTRO RENT CORPORATION

(Exact name of registrant as specified in its charter)

California 95-2412961

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

6060 Sepulveda Boulevard, Van Nuys, California 91411-2501

(Address of principal executive offices) (Zip Code)

(818) 787-2100

(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer Accelerated filer 

Non-accelerated filer (Do not check if a smaller reporting company)Smaller reporting company 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No 

The number of shares outstanding of the issuer's common stock as of April 7, 2016 was 24,195,408 .

Electro Rent Corporation Quarterly Report on Form 10-Q For the Quarterly Period Ended February 29, 2016
TABLE OF CONTENTS	Page
EXPLANATORY NOTE	3
SPECIAL NOTE ABOUT FORWARD-LOOKING STATEMENTS	3
PART I-FINANCIAL INFORMATION	4
Item 1. Financial Statements.	4
Consolidated Statements of Operations for the Three and Nine Months Ended February 29, 2016 and February 28, 2015 (Unaudited)	4
Consolidated Balance Sheets at February 29, 2016 and May 31, 2015 (Unaudited)	5
Consolidated Statements of Cash Flows for the Nine Months Ended February 29, 2016 and February 28, 2015 (Unaudited)	6
Notes to Consolidated Financial Statements (Unaudited)	7
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.	19
Item 3. Quantitative and Qualitative Disclosures About Market Risk.	27
Item 4. Controls and Procedures.	27
PART II-OTHER INFORMATION	28
Item 1. Legal Proceedings.	28
Item 1A. Risk Factors.	28
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.	28
Item 3. Defaults Upon Senior Securities.	28
Item 4. Mine Safety Disclosures.	28
Item 5. Other Information.	28
Item 6. Exhibits.	29
SIGNATURES	30

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EXPLANATORY NOTE

In this report, unless the context indicates otherwise, the terms "Electro Rent," "Company," "we", "us" and "our" refer to Electro Rent Corporation, a California corporation, and its consolidated subsidiaries.

SPECIAL NOTE ABOUT FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). You can find many (but not all) of these statements by looking for words such as "approximates," "believes," "expects," "anticipates," "estimates," "intends," "plans," "would," "may" or other similar expressions in this report. Any statements that refer to projections of our future financial or operating performance, anticipated trends in our business, our goals, strategies, focus and plans, and other characterizations of future events or circumstances, including statements expressing general optimism about future operating results, are forward-looking statements.

We claim the protection of the safe harbor contained in the Private Securities Litigation Reform Act of 1995. We caution investors that any forward-looking statements presented in this report, or that we may make orally or in writing from time to time, are expressions of our beliefs and expectations based on currently available information at the time such statements are made. Such statements are based on assumptions, and the actual outcome will be affected by known and unknown risks, trends, uncertainties and factors that are beyond our control. Although we believe that our assumptions are reasonable, they are not guarantees of future performance, and some will inevitably prove to be incorrect. As a result, our actual future results may differ from our expectations, and those differences may be material.

Factors that could cause or contribute to these differences include, among others, those risks and uncertainties discussed under the sections contained in this Form 10-Q entitled "Part I, Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations," "Part I, Item 3. Quantitative and Qualitative Disclosures about Market Risk," and "Part II, Item 1A. Risk Factors" as well as in our Annual Report on Form 10-K for the fiscal year ended May 31, 2015 (including the "Risk Factors" discussed in Item 1A in that document), and our other filings with the Securities and Exchange Commission. The risks included in those documents are not exhaustive, and additional factors could adversely affect our business and financial performance. We operate in a very competitive and rapidly changing environment. New risk factors emerge from time to time, and it is not possible for us to predict all such risk factors, nor can we assess the impact of all such risk factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

We are not undertaking any obligation to update any forward-looking statements. Accordingly, investors should use caution in relying on past forward-looking statements, which are based on known results and trends at the time they are made, to anticipate future results or trends.

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