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Segment Reporting | 12 Months Ended
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Dec. 31, 2022
Segment Reporting [Abstract] |
Segment Reporting | NOTE 13. 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, Adjusted EBITDA and income before provision for income taxes. 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, 2022, 2021 and 2020, for the Company’s reportable segments is shown in the following tables:
(dollar amounts in thousands) |  | Mobile Modular |  |  | TRS- RenTelco |  |  | Adler Tanks |  |  | Enviroplex 1 |  |  | Consolidated |
Year Ended December 31, |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Rental revenues |  | $ | 268,288 |  |  | $ | 121,375 |  |  | $ | 66,366 |  |  | $ | — |  |  | $ | 456,029 |
Rental related services revenues |  |  | 91,851 |  |  |  | 3,112 |  |  |  | 27,654 |  |  | — |  |  |  | 122,617 |
Sales and other revenues |  |  | 101,578 |  |  |  | 26,291 |  |  |  | 4,138 |  |  |  | 23,170 |  |  |  | 155,177 |
Total revenues |  |  | 461,717 |  |  |  | 150,778 |  |  |  | 98,158 |  |  |  | 23,170 |  |  |  | 733,823 |
Depreciation of rental equipment |  |  | 31,172 |  |  |  | 49,253 |  |  |  | 16,004 |  |  | — |  |  |  | 96,429 |
Gross profit |  |  | 217,187 |  |  |  | 67,899 |  |  |  | 46,700 |  |  |  | 5,122 |  |  |  | 336,908 |
Selling and administrative expenses |  |  | 110,234 |  |  |  | 27,245 |  |  |  | 28,428 |  |  |  | 5,435 |  |  |  | 171,342 |
Income (loss) from operations |  |  | 106,953 |  |  |  | 40,654 |  |  |  | 18,272 |  |  |  | (313 | ) |  |  | 165,566 |
Interest expense (income) allocation |  |  | 10,175 |  |  |  | 3,294 |  |  |  | 2,938 |  |  |  | (1,239 | ) |  |  | 15,168 |
Income before provision for income taxes |  |  | 96,778 |  |  |  | 36,982 |  |  |  | 15,334 |  |  |  | 926 |  |  |  | 150,020 |
Adjusted EBITDA 3 |  |  | 159,224 |  |  |  | 92,007 |  |  |  | 37,660 |  |  |  | (25 | ) |  |  | 288,866 |
Rental equipment acquisitions |  |  | 121,607 |  |  |  | 69,928 |  |  |  | 3,623 |  |  | — |  |  |  | 195,158 |
Accounts receivable, net (period end) |  |  | 139,107 |  |  |  | 26,442 |  |  |  | 20,172 |  |  |  | 4,302 |  |  |  | 190,023 |
Rental equipment, at cost (period end) |  |  | 1,123,268 |  |  |  | 398,267 |  |  |  | 308,396 |  |  | — |  |  |  | 1,829,931 |
Rental equipment, net book value (period end) |  |  | 815,392 |  |  |  | 174,924 |  |  |  | 137,738 |  |  | — |  |  |  | 1,128,054 |
Utilization (period end) 2 |  |  | 80.7 | % |  |  | 59.4 | % |  |  | 57.1 | % |  |  |  |  |  |
Average utilization 2 |  |  | 79.1 | % |  |  | 64.2 | % |  |  | 53.1 | % |  |  |  |  |  |
Segment Data (Continued) (dollar amounts in thousands) |  | Mobile Modular |  |  | TRS- RenTelco |  |  | Adler Tanks |  |  | Enviroplex 1 |  |  | Consolidated |
Year Ended December 31, |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Rental revenues |  | $ | 220,569 |  |  | $ | 113,419 |  |  | $ | 56,025 |  |  | $ | — |  |  | $ | 390,013 |
Rental related services revenues |  |  | 72,330 |  |  |  | 2,880 |  |  |  | 22,851 |  |  | — |  |  |  | 98,061 |
Sales and other revenues |  |  | 70,417 |  |  |  | 23,895 |  |  |  | 3,366 |  |  |  | 31,081 |  |  |  | 128,759 |
Total revenues |  |  | 363,316 |  |  |  | 140,194 |  |  |  | 82,242 |  |  |  | 31,081 |  |  |  | 616,833 |
Depreciation of rental equipment |  |  | 28,071 |  |  |  | 47,374 |  |  |  | 16,442 |  |  | — |  |  |  | 91,887 |
Gross profit |  |  | 176,040 |  |  |  | 61,394 |  |  |  | 33,699 |  |  |  | 9,888 |  |  |  | 281,021 |
Selling and administrative expenses |  |  | 92,603 |  |  |  | 25,152 |  |  |  | 25,542 |  |  |  | 5,303 |  |  |  | 148,600 |
Income from operations |  |  | 83,436 |  |  |  | 36,243 |  |  |  | 8,157 |  |  |  | 4,585 |  |  |  | 132,421 |
Interest expense (income) allocation |  |  | 6,433 |  |  |  | 2,270 |  |  |  | 2,211 |  |  |  | (459 | ) |  |  | 10,455 |
Income before provision for income taxes |  |  | 77,003 |  |  |  | 33,763 |  |  |  | 5,946 |  |  |  | 5,044 |  |  |  | 121,756 |
Adjusted EBITDA 3 |  |  | 130,089 |  |  |  | 85,723 |  |  |  | 27,961 |  |  |  | 4,844 |  |  |  | 248,617 |
Rental equipment acquisitions |  |  | 188,392 |  |  |  | 61,097 |  |  |  | 191 |  |  | — |  |  |  | 249,680 |
Accounts receivable, net (period end) |  |  | 112,295 |  |  |  | 22,115 |  |  |  | 16,378 |  |  |  | 8,711 |  |  |  | 159,499 |
Rental equipment, at cost (period end) |  |  | 1,040,094 |  |  |  | 361,391 |  |  |  | 309,908 |  |  | — |  |  |  | 1,711,393 |
Rental equipment, net book value (period end) |  |  | 751,537 |  |  |  | 161,900 |  |  |  | 151,787 |  |  | — |  |  |  | 1,065,224 |
Utilization (period end) 2 |  |  | 76.4 | % |  |  | 62.9 | % |  |  | 47.6 | % |  |  |  |  |  |
Average utilization 2 |  |  | 76.2 | % |  |  | 67.0 | % |  |  | 45.4 | % |  |  |  |  |  |
2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Rental revenues |  | $ | 188,719 |  |  | $ | 109,083 |  |  | $ | 53,988 |  |  | $ | — |  |  | $ | 351,790 |
Rental related services revenues |  |  | 67,527 |  |  |  | 3,080 |  |  |  | 21,786 |  |  | — |  |  |  | 92,393 |
Sales and other revenues |  |  | 65,278 |  |  |  | 28,648 |  |  |  | 1,708 |  |  |  | 32,737 |  |  |  | 128,371 |
Total revenues |  |  | 321,524 |  |  |  | 140,811 |  |  |  | 77,482 |  |  |  | 32,737 |  |  |  | 572,554 |
Depreciation of rental equipment |  |  | 22,967 |  |  |  | 46,472 |  |  |  | 16,427 |  |  | — |  |  |  | 85,866 |
Gross profit |  |  | 155,874 |  |  |  | 60,864 |  |  |  | 34,079 |  |  |  | 12,929 |  |  |  | 263,746 |
Selling and administrative expenses |  |  | 68,470 |  |  |  | 24,306 |  |  |  | 24,764 |  |  |  | 5,453 |  |  |  | 122,993 |
Income from operations |  |  | 87,404 |  |  |  | 36,558 |  |  |  | 9,315 |  |  |  | 7,476 |  |  |  | 140,753 |
Interest expense (income) allocation |  |  | 5,104 |  |  |  | 2,133 |  |  |  | 2,107 |  |  |  | (557 | ) |  |  | 8,787 |
Income before benefit for income taxes |  |  | 82,300 |  |  |  | 34,503 |  |  |  | 7,208 |  |  |  | 8,033 |  |  |  | 132,044 |
Adjusted EBITDA 3 |  |  | 119,202 |  |  |  | 85,082 |  |  |  | 29,010 |  |  |  | 7,729 |  |  |  | 241,023 |
Rental equipment acquisitions |  |  | 39,078 |  |  |  | 42,588 |  |  |  | 2,541 |  |  | — |  |  |  | 84,207 |
Accounts receivable, net (period end) |  |  | 81,640 |  |  |  | 22,735 |  |  |  | 13,655 |  |  |  | 5,286 |  |  |  | 123,316 |
Rental equipment, at cost (period end) |  |  | 882,115 |  |  |  | 333,020 |  |  |  | 315,706 |  |  | — |  |  |  | 1,530,841 |
Rental equipment, net book value (period end) |  |  | 611,590 |  |  |  | 156,536 |  |  |  | 169,990 |  |  | — |  |  |  | 938,116 |
Utilization (period end) 2 |  |  | 76.0 | % |  |  | 67.4 | % |  |  | 39.8 | % |  |  |  |  |  |
Average utilization 2 |  |  | 77.2 | % |  |  | 66.2 | % |  |  | 44.6 | % |  |  |  |  |  |
1. Gross Enviroplex sales revenues were $24,162, $32,095 and $34,014 in 2022, 2021 and 2020, respectively. There were $992 and $1,014 inter-segment sales to Mobile Modular in 2022 and 2021, which have been eliminated in consolidation. There were no inter-segment sales in 2019. 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. 3. During the year ended December 31, 2022, the calculation for Adjusted EBITDA was adjusted to include one-time transaction costs attributed to acquisition, divestiture and integration related activities. For comparability, the transaction costs incurred during 2021 were included in the Adjusted EBITDA calculation for the year ended December 31, 2021. During the years ended December 31, 2022 and 2021, there were $4.3 million and $2.0 million of transaction costs, respectively, included in the Adjusted EBITDA calculation. There were no transaction costs included in the calculation for the year ended December 31, 2020. Additional information on Adjusted EBITDA can be found on page 46. No single customer accounted for more than 10% of total revenues during 2022, 2021 and 2020. Revenue from foreign country customers for the same periods accounted for 4% of the Company’s total revenues.

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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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