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Segment Reporting | 9 Months Ended
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Sep. 30, 2022
Segment Reporting [Abstract] |
Segment Reporting | NOTE 6. SEGMENT REPORTING The Company’s four reportable segments are (1) its modular building and portable storage container rental segment (“Mobile Modular”); (2) its electronic test equipment segment (“TRS-RenTelco”); (3) its containment solutions for the storage of hazardous and non-hazardous liquids and solids segment (“Adler Tanks”); and (4) its classroom manufacturing segment selling modular buildings used primarily as classrooms in California (“Enviroplex”). The operations of each of these segments are described in Part I – Item 1, “Business,” and the accounting policies of the segments are described in “Note 1 – Summary of Significant Accounting Policies” in the Company’s 2021 Annual Report. Management focuses on several key measures to evaluate and assess each segment’s performance, including rental revenue growth, gross profit and gross margins, income from operations, income before provision for income taxes and adjusted EBITDA. 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, 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 nine months ended September 30, 2022 and 2021 for the Company’s reportable segments is shown in the following table:
(dollar amounts in thousands) |  | Mobile Modular |  |  | TRS- RenTelco |  |  | Adler Tanks |  |  | Enviroplex 1 |  |  | Consolidated |
Nine Months Ended September 30, |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Rental revenues |  | $ | 195,598 |  |  | $ | 89,990 |  |  | $ | 47,638 |  |  | $ — |  |  | $ | 333,226 |
Rental related services revenues |  |  | 66,947 |  |  |  | 2,329 |  |  |  | 19,221 |  |  | — |  |  |  | 88,497 |
Sales and other revenues |  |  | 65,315 |  |  |  | 17,040 |  |  |  | 3,317 |  |  |  | 15,545 |  |  |  | 101,217 |
Total revenues |  |  | 327,860 |  |  |  | 109,359 |  |  |  | 70,176 |  |  |  | 15,545 |  |  |  | 522,940 |
Depreciation of rental equipment |  |  | 23,329 |  |  |  | 36,789 |  |  |  | 11,996 |  |  | — |  |  |  | 72,114 |
Gross profit |  |  | 149,405 |  |  |  | 48,824 |  |  |  | 31,933 |  |  |  | 3,604 |  |  |  | 233,766 |
Selling and administrative expenses |  |  | 79,245 |  |  |  | 19,930 |  |  |  | 20,642 |  |  |  | 4,193 |  |  |  | 124,010 |
Income (loss) from operations |  |  | 70,160 |  |  |  | 28,894 |  |  |  | 11,291 |  |  |  | (589 | ) |  |  | 109,756 |
Interest (expense) income allocation |  |  | (6,616 | ) |  |  | (2,160 | ) |  |  | (1,941 | ) |  |  | 719 |  |  |  | (9,998 | )
Income before provision for income taxes |  |  | 63,544 |  |  |  | 26,330 |  |  |  | 9,350 |  |  |  | 130 |  |  |  | 99,354 |
Adjusted EBITDA |  |  | 105,912 |  |  |  | 66,675 |  |  |  | 25,520 |  |  |  | (377 | ) |  |  | 197,730 |
Rental equipment acquisitions |  |  | 73,895 |  |  |  | 57,169 |  |  |  | 3,067 |  |  | — |  |  |  | 134,131 |
Accounts receivable, net (period end) |  |  | 139,730 |  |  |  | 24,353 |  |  |  | 18,185 |  |  |  | 7,691 |  |  |  | 189,959 |
Rental equipment, at cost (period end) |  |  | 1,085,060 |  |  |  | 396,068 |  |  |  | 309,607 |  |  | — |  |  |  | 1,790,735 |
Rental equipment, net book value (period end) |  |  | 780,939 |  |  |  | 177,221 |  |  |  | 141,662 |  |  | — |  |  |  | 1,099,822 |
Utilization (period end) 2 |  |  | 81.2 | % |  |  | 65.2 | % |  |  | 58.3 | % |  |  |  |  |  |
Average utilization 2 |  |  | 78.5 | % |  |  | 64.8 | % |  |  | 51.7 | % |  |  |  |  |  |
2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Rental revenues |  | $ | 159,118 |  |  | $ | 84,340 |  |  | $ | 40,479 |  |  | $ — |  |  | $ | 283,937 |
Rental related services revenues |  |  | 54,726 |  |  |  | 2,149 |  |  |  | 16,995 |  |  | — |  |  |  | 73,870 |
Sales and other revenues |  |  | 49,770 |  |  |  | 15,971 |  |  |  | 2,477 |  |  |  | 14,897 |  |  |  | 83,115 |
Total revenues |  |  | 263,614 |  |  |  | 102,460 |  |  |  | 59,951 |  |  |  | 14,897 |  |  |  | 440,922 |
Depreciation of rental equipment |  |  | 20,437 |  |  |  | 35,429 |  |  |  | 12,350 |  |  | — |  |  |  | 68,216 |
Gross profit |  |  | 125,357 |  |  |  | 44,867 |  |  |  | 24,167 |  |  |  | 4,362 |  |  |  | 198,753 |
Selling and administrative expenses |  |  | 67,977 |  |  |  | 18,381 |  |  |  | 18,853 |  |  |  | 4,094 |  |  |  | 109,305 |
Income from operations |  |  | 57,380 |  |  |  | 26,486 |  |  |  | 5,314 |  |  |  | 268 |  |  |  | 89,448 |
Interest (expense) income allocation |  |  | (4,401 | ) |  |  | (1,588 | ) |  |  | (1,560 | ) |  |  | 341 |  |  |  | (7,208 | )
Income before provision for income taxes |  |  | 52,979 |  |  |  | 24,713 |  |  |  | 3,754 |  |  |  | 609 |  |  |  | 82,055 |
Adjusted EBITDA |  |  | 89,634 |  |  |  | 63,378 |  |  |  | 20,144 |  |  |  | 456 |  |  |  | 173,612 |
Rental equipment acquisitions |  |  | 162,579 |  |  |  | 53,161 |  |  |  | 164 |  |  | — |  |  |  | 215,904 |
Accounts receivable, net (period end) |  |  | 118,467 |  |  |  | 24,854 |  |  |  | 16,062 |  |  |  | 9,448 |  |  |  | 168,831 |
Rental equipment, at cost (period end) |  |  | 1,023,344 |  |  |  | 363,799 |  |  |  | 311,677 |  |  | — |  |  |  | 1,698,820 |
Rental equipment, net book value (period end) |  |  | 737,807 |  |  |  | 169,250 |  |  |  | 156,405 |  |  | — |  |  |  | 1,063,462 |
Utilization (period end) 2 |  |  | 76.7 | % |  |  | 66.9 | % |  |  | 50.4 | % |  |  |  |  |  |
Average utilization 2 |  |  | 76.0 | % |  |  | 67.4 | % |  |  | 44.0 | % |  |  |  |  |  |
1. Gross Enviroplex sales revenues were $16,401 and $15,909 for the nine months ended September 30, 2022 and 2021, respectively. There were $856 and $1,012 inter-segment sales to Mobile Modular in the nine months ended September 30, 2022 and 2021, respectively, which required elimination 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 accessory equipment, and for Mobile Modular and Adler Tanks, excluding new equipment inventory. 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 for the nine months ended September 30, 2022 and 2021. Revenues from foreign country customers accounted for 4% of the Company’s total revenues for the same periods.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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