Segment Reporting

The Company historically has operated in two principal lines of business; modular leasing and sales and remote accommodations, which were managed separately. The Remote Accommodations Business was considered a single operating segment. As part of the Business Combination, the Remote Accommodations segment is no longer owned by the Company and is reported as discontinued operations in the condensed consolidated financial statements. As such, the segment was excluded from the segment information below.

Modular leasing and sales is comprised of two operating segments: US and Other North America. The US modular operating segment (“Modular - US”) consists of the the contiguous 48 states and Hawaii. The Other North America operating segment (“Modular - Other North America”) consists of Alaska, Canada and Mexico. Corporate and other includes eliminations of costs and revenue between segments and Algeco Group corporate costs not directly attributable to the underlying segments. Following the Business Combination, no additional Algeco Group corporate costs were incurred. Total assets for each reportable segment are not available because the Company utilizes a centralized approach to working capital management. Transactions between reportable segments are not significant.

The Company evaluates business segment performance on Adjusted EBITDA, which excludes certain items as shown in the reconciliation of the Company’s consolidated net loss before tax to Adjusted EBITDA below. Management believes that evaluating segment performance excluding such items is meaningful because it provides insight with respect to intrinsic operating results of the Company.

The Company also regularly evaluates gross profit by segment to assist in the assessment of its operational performance. The Company considers Adjusted EBITDA to be the more important metric because it more fully captures the business performance of the segments, inclusive of indirect costs.

Reportable Segments

The following tables set forth certain information regarding each of the Company’s reportable segments for the three months ended March 31, 2018 and 2017, respectively:



	Three Months Ended March 31, 2018
(in thousands)	Modular - US		Modular - Other North America		Total
Revenues:
Leasing and services revenue:
Modular leasing	$	87,948	$	9,314	$	97,262
Modular delivery and installation	23,970		2,280		26,250
Sales:
New units	6,815		613		7,428
Rental units	3,354		457		3,811
Total Revenues	$	122,087	$	12,664	$	134,751

Costs:
Cost of leasing and services:
Modular leasing	$	25,057	$	2,105	$	27,162
Modular delivery and installation	22,940		2,581		25,521
Cost of sales:					—
New units	4,566		421		4,987
Rental units	2,029		286		2,315
Depreciation of rental equipment	20,687		3,158		23,845
Gross profit	$	46,808	$	4,113	$	50,921
Adjusted EBITDA	$	32,612	$	2,880	$	35,492
Other selected data:
Selling, general and administrative expense	$	40,821	$	4,393	$	45,214
Other depreciation and amortization	$	2,205	$	231	$	2,436
Capital expenditures for rental fleet	$	30,524	$	1,560	$	32,084



	Three Months Ended March 31, 2017
(in thousands)	Modular - US		Modular - Other North America		Corporate & Other			Total
Revenues:
Leasing and services revenue:
Modular leasing	$	61,178	$	7,962	$	(153	)	$	68,987
Modular delivery and installation	17,354		1,650		—			19,004
Sales:
New units	4,006		1,480		—			5,486
Rental units	4,877		967		—			5,844
Total Revenues	$	87,415	$	12,059	$	(153	)	$	99,321

Costs:
Cost of leasing and services:
Modular leasing	$	17,375	$	1,727	$	—		$	19,102
Modular delivery and installation	16,674		1,459		—			18,133
Cost of sales:
New units	2,613		1,117		(10		)	3,720
Rental units	3,113		595		—			3,708
Depreciation of rental equipment	13,825		2,895		—			16,720
Gross profit (loss)	$	33,815	$	4,266	$	(143	)	$	37,938
Adjusted EBITDA	$	23,683	$	3,119	$	(4,856	)	$	21,946
Other selected data:
Selling, general and administrative expense	$	23,946	$	4,054	$	4,761		$	32,761
Other depreciation and amortization	$	1,338	$	247	$	356		$	1,941
Capital expenditures for rental fleet	$	22,049	$	628	$	—		$	22,677

The following tables present a reconciliation of the Company’s loss from continuing operations before income tax to Adjusted EBITDA by segment for the three months ended March 31, 2018 and 2017, respectively:



	Three Months Ended March 31, 2018
(in thousands)	Modular - US			Modular - Other North America			Total
Loss from continuing operations before income taxes	$	(5,308	)	$	(1,947	)	$	(7,255	)
Interest expense, net	11,160			559			11,719
Depreciation and amortization	22,892			3,389			26,281
Currency losses, net	157			867			1,024
Restructuring costs	618			10			628
Integration costs	2,630			—			2,630
Stock compensation expense	121			—			121
Other expense	342			2			344
Adjusted EBITDA	$	32,612		$	2,880		$	35,492



	Three Months Ended March 31, 2017
(in thousands)	Modular - US			Modular - Other North America			Corporate & Other			Total
Loss from continuing operations before income taxes	$	(5,530	)	$	(1,016	)	$	(10,707	)	$	(17,253	)
Interest expense, net	15,559			1,178			5,340			22,077
Depreciation and amortization	15,163			3,142			356			18,661
Currency gains, net	(1,599		)	(187		)	(216		)	(2,002		)
Restructuring costs	—			—			284			284
Other expense	90			2			87			179
Adjusted EBITDA	$	23,683		$	3,119		$	(4,856	)	$	21,946