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Segment Reporting | 6 Months Ended
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Jun. 30, 2023
Segment Reporting [Abstract] |
Segment Reporting | NOTE 9. SEGMENT REPORTING The Company historically operated four reportable segments and divested it's Adler Tanks business segment on February 1, 2023, see Note 5 to the consolidated financial statements for more information on the divestiture of Adler Tanks. The three reportable segments from continuing operations are (1) its modular building and portable storage container rental segment (“Mobile Modular”); (2) its electronic test equipment segment (“TRS-RenTelco”); and (3) 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 2022 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 and TRS-RenTelco based on their pro-rata share of direct revenues. Interest expense is allocated amongst Mobile Modular and TRS-RenTelco 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 six months ended June 30, 2023 and 2022 for the Company’s reportable segments and discontinued operations are shown in the following table:
(dollar amounts in thousands) |  | Mobile Modular |  |  | TRS- RenTelco |  |  | Enviroplex 1 |  |  | Adler Tanks (Discontinued)3 |  |  | Consolidated |
Six Months Ended June 30, |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Rental revenues |  | $ | 170,370 |  |  | $ | 57,717 |  |  | $ | — |  |  | $ | 6,520 |  |  | $ | 234,607 |
Rental related services revenues |  |  | 59,442 |  |  |  | 1,547 |  |  | — |  |  |  | 2,584 |  |  |  | 63,573 |
Sales and other revenues |  |  | 61,107 |  |  |  | 14,701 |  |  |  | 1,864 |  |  |  | 334 |  |  |  | 78,006 |
Total revenues |  |  | 290,919 |  |  |  | 73,965 |  |  |  | 1,864 |  |  |  | 9,438 |  |  |  | 376,186 |
Depreciation of rental equipment |  |  | 19,729 |  |  |  | 24,701 |  |  | — |  |  |  | 1,325 |  |  |  | 45,755 |
Gross profit |  |  | 140,226 |  |  |  | 31,503 |  |  |  | 248 |  |  |  | 4,665 |  |  |  | 176,642 |
Selling and administrative expenses |  |  | 84,810 |  |  |  | 16,577 |  |  |  | 3,137 |  |  |  | 2,583 |  |  |  | 107,106 |
Income (loss) from operations |  |  | 55,416 |  |  |  | 14,926 |  |  |  | (2,889 | ) |  |  | 2,082 |  |  |  | 69,536 |
Interest (expense) income allocation |  |  | (14,718 | ) |  |  | (3,801 | ) |  |  | 1,110 |  |  |  | (374 | ) |  |  | (17,783 | )
Income (loss) before provision for income taxes |  |  | 40,698 |  |  |  | 11,333 |  |  |  | (1,779 | ) |  |  | 1,709 |  |  |  | 51,961 |
Adjusted EBITDA |  |  | 99,269 |  |  |  | 42,173 |  |  |  | (2,724 | ) |  |  | 3,682 |  |  |  | 142,400 |
Rental equipment acquisitions |  |  | 105,575 |  |  |  | 16,906 |  |  | — |  |  |  | — |  |  |  | 122,481 |
Accounts receivable, net (period end) |  |  | 161,927 |  |  |  | 26,138 |  |  |  | 3,611 |  |  |  | — |  |  |  | 191,676 |
Rental equipment, at cost (period end) |  |  | 1,457,984 |  |  |  | 390,832 |  |  | — |  |  |  | — |  |  |  | 1,848,816 |
Rental equipment, net book value (period end) |  |  | 1,132,778 |  |  |  | 162,872 |  |  | — |  |  |  | — |  |  |  | 1,295,650 |
Utilization (period end) 2 |  |  | 78.8 | % |  |  | 58.3 | % |  |  |  |  |  |  |  |  |
Average utilization 2 |  |  | 79.4 | % |  |  | 58.7 | % |  |  |  |  |  |  |  |  |
2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Rental revenues |  | $ | 126,487 |  |  | $ | 58,230 |  |  | $ | — |  |  | $ | 30,148 |  |  | $ | 214,865 |
Rental related services revenues |  |  | 39,594 |  |  |  | 1,484 |  |  | — |  |  |  | 12,058 |  |  |  | 53,136 |
Sales and other revenues |  |  | 35,941 |  |  |  | 11,118 |  |  |  | 5,567 |  |  |  | 1,777 |  |  |  | 54,403 |
Total revenues |  |  | 202,022 |  |  |  | 70,832 |  |  |  | 5,567 |  |  |  | 43,983 |  |  |  | 322,404 |
Depreciation of rental equipment |  |  | 15,582 |  |  |  | 24,362 |  |  | — |  |  |  | 7,994 |  |  |  | 47,938 |
Gross profit |  |  | 92,820 |  |  |  | 30,826 |  |  |  | 1,345 |  |  |  | 19,335 |  |  |  | 144,326 |
Selling and administrative expenses |  |  | 50,447 |  |  |  | 13,204 |  |  |  | 2,763 |  |  |  | 13,501 |  |  |  | 79,915 |
Income (loss) from operations |  |  | 42,373 |  |  |  | 17,622 |  |  |  | (1,418 | ) |  |  | 5,834 |  |  |  | 64,411 |
Interest (expense) income allocation |  |  | (3,821 | ) |  |  | (1,232 | ) |  |  | 351 |  |  |  | (1,119 | ) |  |  | (5,821 | )
Income (loss) before provision for income taxes |  |  | 38,552 |  |  |  | 16,222 |  |  |  | (1,067 | ) |  |  | 4,715 |  |  |  | 58,422 |
Adjusted EBITDA |  |  | 66,178 |  |  |  | 42,781 |  |  |  | (1,276 | ) |  |  | 15,327 |  |  |  | 123,010 |
Rental equipment acquisitions |  |  | 51,575 |  |  |  | 42,791 |  |  | — |  |  |  | 1,610 |  |  |  | 95,976 |
Accounts receivable, net (period end) |  |  | 118,865 |  |  |  | 24,796 |  |  |  | 6,420 |  |  |  | 17,248 |  |  |  | 167,329 |
Rental equipment, at cost (period end) |  |  | 1,075,898 |  |  |  | 389,383 |  |  | — |  |  |  | 309,010 |  |  |  | 1,774,291 |
Rental equipment, net book value (period end) |  |  | 776,003 |  |  |  | 177,038 |  |  | — |  |  |  | 144,484 |  |  |  | 1,097,525 |
Utilization (period end) 2 |  |  | 78.6 | % |  |  | 65.3 | % |  |  |  |  |  |  |  |  |
Average utilization 2 |  |  | 77.6 | % |  |  | 64.6 | % |  |  |  |  |  |  |  |  |
1. Gross Enviroplex sales revenues were $1,871 and $6,423 for the six months ended June 30, 2023 and 2022, respectively. There were $7 inter-segment sales to Mobile Modular in the six months ended June 30, 2023 and $856 inter-segment sales during the same period in 2022, 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 new equipment inventory. The Average utilization for the period is calculated using the average costs of rental equipment. 3. The financial results of Adler Tanks included in this table are through the date of the business divestiture, which occurred on February 1, 2023. No single customer accounted for more than 10% of total revenues for the six months ended June 30, 2023 and 2022. Revenues from foreign country customers accounted for 3% and 4% of the Company’s total revenues for the same periods, respectively.

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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 -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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