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Segment Reporting
 12 Months Ended
Dec. 31, 2013
Segment Reporting [Abstract]  
Segment Reporting
NOTE 10.     SEGMENT REPORTING

FASB guidelines establish annual and interim reporting standards for an enterprise’s operating segments and related disclosures about its products, services, geographic areas and major customers. In accordance with these guidelines the Company’s four reportable segments are Mobile Modular, TRS-RenTelco, Adler Tanks and Enviroplex. Management focuses on several key measures to evaluate and assess each segment’s performance including rental revenue growth, gross margin, and income before provision for income taxes. As separate corporate entities, Adler Tanks and Enviroplex revenues and expenses are separately maintained from Mobile Modular and TRS-RenTelco. Excluding interest expense, allocations of revenue and expense not directly associated with one of these segments are generally allocated to Mobile Modular, TRS-RenTelco and Adler Tanks, based on their pro-rata share of direct revenues. Interest expense is allocated amongst Mobile Modular, TRS-RenTelco and Adler Tanks based on their pro-rata share of average rental equipment at cost, goodwill, intangible assets, accounts receivable, deferred income and customer security deposits. The Company does not report total assets by business segment. Summarized financial information for the years ended December 31, 2013, 2012 and 2011, for the Company’s reportable segments is shown in the following tables:

 

Segment Data    Mobile Modular     TRS-RenTelco     Adler Tanks     Enviroplex1     Consolidated  
(dollar amounts in thousands)           

Year Ended December 31,

           

2013

           

Rental Revenues

    $ 82,503      $ 102,101      $ 71,162      $ —        $ 255,766   

Rental Related Services Revenues

      28,891        3,095        21,162        —          53,148   

Sales and Other Revenues

      21,267        29,668        1,616        17,855        70,406   

Total Revenues

      132,661        134,864        93,940        17,855        379,320   

Depreciation of Rental Equipment

      14,459        39,953        13,796        —          68,208   

Gross Profit

      50,423        63,331        51,076        3,996        168,826   

Interest Expense (Income) Allocation

      4,318        2,156        2,419        (206 )      8,687   

Income before Provision for Income Taxes

      9,617        36,633        24,013        1,111        71,374   

Rental Equipment Acquisitions

      52,953        52,625        31,023        —          136,601   

Accounts Receivable, net (period end)

      37,163        27,328        21,915        1,244        87,650   

Rental Equipment, at cost (period end)

      592,391        267,772        284,005        —          1,144,168   

Rental Equipment, net book value (period end)

      415,366        109,988        241,656        —          767,010   

Utilization (period end)2

      70.7 %      58.2 %      57.7 %     

Average Utilization2

      68.3 %      62.7 %      64.2 %                 

 

Segment Data (Continued)      Mobile Modular        TRS-RenTelco        Adler Tanks        Enviroplex1        Consolidated   
(dollar amounts in thousands)           

Year Ended December 31,

           

2012

           

Rental Revenues

    $ 79,518      $ 101,645      $ 67,281      $ —        $ 248,444   

Rental Related Services Revenues

      25,775        3,673        17,472        —          46,920   

Sales and Other Revenues

      14,474        27,855        2,558        23,823        68,710   

Total Revenues

      119,767        133,173        87,311        23,823        364,074   

Depreciation of Rental Equipment

      13,942        38,174        11,703        —          63,819   

Gross Profit

      52,022        62,083        51,157        3,032        168,294   

Interest Expense (Income) Allocation

      4,547        2,384        2,350        (132 )      9,149   

Income (Loss) before Provision for Income Taxes

      13,443        33,631        26,706        (913 )      72,867   

Rental Equipment Acquisitions

      21,042        51,793        55,919        —          128,754   

Accounts Receivable, net (period end)

      39,066        24,654        24,323        4,213        92,256   

Rental Equipment, at cost (period end)

      551,101        266,934        254,810        —          1,072,845   

Rental Equipment, net book value (period end)

      384,813        107,999        226,041        —          718,853   

Utilization (period end)2

      66.7 %      64.1 %      67.5 %     

Average Utilization2

      66.4 %      65.8 %      71.5 %     

2011

           

Rental Revenues

    $ 79,969      $ 95,694      $ 59,243      $ —        $ 234,906   

Rental Related Services Revenues

      24,063        3,133        12,290        —          39,486   

Sales and Other Revenues

      20,577        26,488        425        20,788        68,278   

Total Revenues

      124,609        125,315        71,958        20,788        342,670   

Depreciation of Rental Equipment

      13,780        38,039        8,368        —          60,187   

Gross Profit

      55,193        57,069        49,619        4,910        166,791   

Interest Expense (Income) Allocation

      4,036        2,124        1,659        (213 )      7,606   

Income before Provision for Income Taxes

      19,026        29,024        31,262        1,746        81,058   

Rental Equipment Acquisitions

      33,824        55,302        68,628        —          157,754   

Accounts Receivable, net (period end)

      44,013        24,236        19,226        5,197        92,671   

Rental Equipment, at cost (period end)

      539,147        258,586        201,456        —          999,189   

Rental Equipment, net book value (period end)

      383,621        105,565        183,960        —          673,146   

Utilization (period end)2

      67.3 %      67.1 %      79.8 %     

Average Utilization2

      67.1 %      66.0 %      86.2 %                 
1   Gross Enviroplex sales revenues were $17,859, $24,240 and $20,844 in 2013, 2012 and 2011, respectively, which includes inter-segment sales to Mobile Modular of $4, $417 and $97, which have been eliminated in consolidation.

 

2   Utilization is calculated each month by dividing the cost of rental equipment on rent by the total cost of rental equipment excluding new equipment inventory and accessory equipment. The average utilization for the period is calculated using the average costs of rental equipment.

No single customer accounted for more than 10% of total revenues during 2013, 2012 and 2011. Revenue from foreign country customers accounted for 7%, 9% and 8% of the Company’s revenues for the same periods, respectively.