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Segment Reporting
 6 Months Ended
Jun. 30, 2021
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
The Company operates in four reportable segments as follows: North America Modular Solutions ("NA Modular"), North America Storage Solutions ("NA Storage"), United Kingdom Storage Solutions ("UK Storage") and Tank and Pump Solutions ("Tank and Pump"). 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.
In connection with the Merger, the Company determined its reportable segments as discussed above and retrospectively adjusted prior year's presentation to conform to the current presentation of reportable segments.
The Company defines EBITDA as net income (loss) plus interest (income) expense, income tax (benefit) expense, depreciation and amortization. The Company reflects the further adjustments to EBITDA ("Adjusted EBITDA") to exclude certain non-cash items and the effect of what the Company considers transactions or events not related to its core business operations. The Chief Operating Decision Maker ("CODM") evaluates business segment performance utilizing Adjusted EBITDA as shown in the reconciliation of the Company’s consolidated net income (loss) to Adjusted EBITDA below. Management believes that evaluating segment performance excluding such items is meaningful because it provides insight with respect to the 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 and six months ended June 30, 2021 and 2020, respectively. Consistent with the financial statements, the segment results do not include Mobile Mini's operations for the three and six months ended June 30, 2020. Please refer to the Management Discussion & Analysis of Financial Condition and Results of Operations included in this document, for pro forma results inclusive of Mobile Mini's financial results for periods prior to the Merger date.
Three Months Ended June 30, 2021
(in thousands)NA ModularNA StorageUK StorageTank and PumpUnallocated CostsTotal
Revenues:
Leasing and services revenue:
Leasing
$217,635 $85,966 $21,014 $18,564 $343,179 
Delivery and installation
54,851 23,519 5,839 7,471 91,680 
Sales revenue:
New units
6,871 1,864 1,295 978 11,008 
Rental units
10,025 4,445 284 481 15,235 
Total revenues
289,382 115,794 28,432 27,494 461,102 
Costs:
Cost of leasing and services:
Leasing
61,773 12,174 4,729 4,356 83,032 
Delivery and installation
51,154 16,743 3,309 5,947 77,153 
Cost of sales:
New units
4,376 1,122 845 709 7,052 
Rental units
5,127 2,558 294 183 8,162 
Depreciation of rental equipment50,816 7,476 1,318 3,283 62,893 
Gross profit
$116,136 $75,721 $17,937 $13,016 $222,810 
Other selected data:
Adjusted EBITDA$103,545 $49,526 $12,328 $10,096 $— $175,495 
Selling, general and administrative expense$63,406 $33,672 $6,926 $6,203 $12,180 $122,387 
Purchases of rental equipment and refurbishments$49,364 $8,773 $4,226 $2,919 $— $65,282 
Three Months Ended June 30, 2020
(in thousands)NA ModularNA StorageUK StorageTank and PumpUnallocated CostsTotal
Revenues:
Leasing and services revenue:
Leasing$190,143 $— $— $— $190,143 
Delivery and installation51,640 — — — 51,640 
Sales revenue:
New units9,763 — — — 9,763 
Rental units5,316 — — — 5,316 
Total revenues256,862 — — — 256,862 
Costs:
Cost of leasing and services:
Leasing47,747 — — — 47,747 
Delivery and installation43,523 — — — 43,523 
Cost of sales:
New units6,331 — — — 6,331 
Rental units3,803 — — — 3,803 
Depreciation of rental equipment45,494 — — — 45,494 
Gross profit$109,964 $— $— $— $109,964 
Other selected data:
Adjusted EBITDA$97,520 $— $— $— $— $97,520 
Selling, general and administrative expense (a)$59,347 $— $— $— $5,925 $65,272 
Purchases of rental equipment and refurbishments$40,034 $— $— $— $— $40,034 
(a) Includes both SG&A expense and Transaction costs from the condensed consolidated statement of operations.
Six Months Ended June 30, 2021
(in thousands)NA ModularNA StorageUK StorageTank and PumpUnallocated CostsTotal
Revenues:
Leasing and services revenue:
Leasing
$417,243 $166,317 $39,735 $35,546 $658,841 
Delivery and installation
103,531 44,884 12,589 14,180 175,184 
Sales revenue:
New units
14,331 4,048 2,166 1,418 21,963 
Rental units
20,501 8,293 949 694 30,437 
Total revenues
555,606 223,542 55,439 51,838 886,425 
Costs:
Cost of leasing and services:
Leasing
112,848 22,907 9,025 8,147 152,927 
Delivery and installation
95,859 32,483 7,400 11,547 147,289 
Cost of sales:
New units
9,250 2,463 1,434 1,014 14,161 
Rental units
10,975 5,080 918 294 17,267 
Depreciation of rental equipment97,536 12,269 2,232 6,554 118,591 
Gross profit
$229,138 $148,340 $34,430 $24,282 $436,190 
Other selected data:
Adjusted EBITDA$200,916 $95,848 $23,392 $18,924 $— $339,080 
Selling, general and administrative expense (a)$125,756 $64,761 $13,269 $11,913 $24,017 $239,716 
Purchases of rental equipment and refurbishments$88,499 $12,245 $10,996 $6,077 $— $117,817 
(a) Includes both SG&A expense and Transaction costs from the consolidated statement of operations.
Six Months Ended June 30, 2020
(in thousands)NA ModularNA StorageUK StorageTank and PumpUnallocated CostsTotal
Revenues:
Leasing and services revenue:
Leasing$378,495 $— $— $— $378,495 
Delivery and installation102,710 — — — 102,710 
Sales revenue:
New units19,376 — — — 19,376 
Rental units12,102 — — — 12,102 
Total revenues512,683 — — — 512,683 
Costs:
Cost of leasing and services:
Leasing97,556 — — — 97,556 
Delivery and installation87,388 — — — 87,388 
Cost of sales:
New units12,534 — — — 12,534 
Rental units7,609 — — — 7,609 
Depreciation of rental equipment91,442 — — — 91,442 
Gross profit$216,154 $— $— $— $216,154 
Other selected data:
Adjusted EBITDA$187,062 $— $— $— $— $187,062 
Selling, general and administrative expense (a)$121,919 $— $— $— $18,321 $140,240 
Purchases of rental equipment and refurbishments$79,682 $— $— $— $— $79,682 
(a) Includes both SG&A expense and Transaction costs from the condensed consolidated statement of operations.
The following tables present a reconciliation of the Company’s income (loss) from operations to Adjusted EBITDA for the three and six months ended June 30, 2021 and 2020, respectively:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2021202020212020
Net income (loss)$20,371 $(14,130)$24,818 $77,525 
Income tax expense (benefit)18,828 (285)29,309 505 
Loss on extinguishment of debt2,814 — 5,999 — 
Interest expense29,212 28,519 59,176 56,776 
Depreciation and amortization84,515 48,377 158,537 97,399 
Fair value loss (gain) on common stock warrant liabilities(610)26,963 26,597 (68,366)
Currency losses (gains), net33 (380)69 518 
Restructuring costs, lease impairment expense and other related charges7,434 2,143 11,829 3,744 
Transaction costs— 1,619 844 11,050 
Integration costs7,622 2,153 14,964 3,839 
Stock compensation expense4,707 2,227 8,221 4,014 
Other569 314 (1,283)58 
Adjusted EBITDA$175,495 $97,520 $339,080 $187,062 
Included in restructuring costs for the three and six months ended June 30, 2021 was expense of approximately $4.3 million and $5.8 million, respectively, recognized as a result of the modification of certain equity awards associated with the Transition, Separation and Release Agreement entered into on February 25, 2021 with the Company's President and Chief Operating Officer. For the six months ended June 30, 2021, stock-based compensation expense reported in the Statement of Cash Flows included these charges.