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Segment Reporting | 6 Months Ended
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Jun. 30, 2024
Segment Reporting [Abstract] |
Segment Reporting | NOTE 10. SEGMENT REPORTING During the quarter ended December 31, 2023, the Company determined that its Portable Storage business segment met the criteria for separate recognition as defined in the Accounting Standards Codification ("ASC") Topic 280, Segment Reporting. The guidance under this topic requires a public business entity to evaluate both quantitative and qualitative thresholds to determine the significance of a business segment and whether the separate reporting of a business segment enhances the users' understanding of the reporting entity's performance, future net cash flows and judgments. The Company evaluated the guidance within Topic 280 and made its determination to separately report the Portable Storage segment primarily due to the Company's continued growth in container fleet purchases and related increased revenues and improved profitability performance when compared to previously reported periods. In addition to this determination, the Company also divested its Adler Tanks business segment during the year ended December 31, 2023. Additional information regarding the divestiture of Adler Tanks can be found in Note 5 of the condensed consolidated financial statements. At June 30, 2024, the Company was comprised of four reportable segments: (1) its modular building segment (“Mobile Modular”); (2) its portable storage container segment ("Portable Storage"); (3) its electronic test equipment segment (“TRS-RenTelco”); 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 2023 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 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, Portable Storage and TRS-RenTelco based on their pro-rata share of direct revenues. Interest expense is allocated amongst Mobile Modular, Portable Storage 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, 2024 and 2023 for the Company’s reportable segments are shown in the following table:
(dollar amounts in thousands) |  | Mobile Modular |  |  | Portable Storage |  |  | TRS- RenTelco |  |  | Enviroplex 1 |  |  | Consolidated |
Six Months Ended June 30, |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Rental revenues |  | $ | 154,535 |  |  | $ | 36,230 |  |  | $ | 50,743 |  |  | $ | — |  |  | $ | 241,508 |
Rental related services revenues |  |  | 53,053 |  |  |  | 9,363 |  |  |  | 1,522 |  |  | — |  |  |  | 63,938 |
Sales and other revenues |  |  | 64,543 |  |  |  | 3,189 |  |  |  | 14,168 |  |  |  | 13,092 |  |  |  | 94,992 |
Total revenues |  |  | 272,131 |  |  |  | 48,782 |  |  |  | 66,433 |  |  |  | 13,092 |  |  |  | 400,438 |
Depreciation of rental equipment |  |  | 19,870 |  |  |  | 1,965 |  |  |  | 22,696 |  |  | — |  |  |  | 44,531 |
Gross profit |  |  | 133,131 |  |  |  | 33,405 |  |  |  | 26,846 |  |  |  | 3,301 |  |  |  | 196,683 |
Selling and administrative expenses |  |  | 82,354 |  |  |  | 17,885 |  |  |  | 17,433 |  |  |  | 3,517 |  |  |  | 121,188 |
Other income |  |  | (6,220 | ) |  |  | (1,319 | ) |  |  | (1,742 | ) |  |  | — |  |  |  | (9,281 | )
Income (loss) from operations |  |  | 56,999 |  |  |  | 16,840 |  |  |  | 11,155 |  |  |  | (216 | ) |  |  | 84,776 |
Interest expense (income) allocation |  |  | 19,971 |  |  |  | 2,867 |  |  |  | 4,121 |  |  |  | (1,218 | ) |  |  | 25,741 |
Income before provision for income taxes |  |  | 37,028 |  |  |  | 13,973 |  |  |  | 6,871 |  |  |  | 1,002 |  |  |  | 58,872 |
Rental equipment acquisitions |  |  | 118,300 |  |  |  | 7,403 |  |  |  | 10,623 |  |  | — |  |  |  | 136,326 |
Accounts receivable, net (period end) |  |  | 170,966 |  |  |  | 12,231 |  |  |  | 20,333 |  |  |  | 13,849 |  |  |  | 217,379 |
Rental equipment, at cost (period end) |  |  | 1,398,475 |  |  |  | 242,107 |  |  |  | 368,324 |  |  | — |  |  |  | 2,008,906 |
Rental equipment, net book value (period end) |  |  | 1,058,041 |  |  |  | 221,486 |  |  |  | 127,795 |  |  | — |  |  |  | 1,407,322 |
Utilization (period end) 2 |  |  | 78.1 | % |  |  | 64.5 | % |  |  | 55.8 | % |  |  |  |  |  |
Average utilization 2 |  |  | 78.6 | % |  |  | 67.8 | % |  |  | 56.4 | % |  |  |  |  |  |
2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Rental revenues |  | $ | 134,826 |  |  | $ | 35,544 |  |  | $ | 57,717 |  |  | $ | — |  |  | $ | 228,087 |
Rental related services revenues |  |  | 49,370 |  |  |  | 10,072 |  |  |  | 1,547 |  |  | — |  |  |  | 60,989 |
Sales and other revenues |  |  | 58,557 |  |  |  | 2,550 |  |  |  | 14,701 |  |  |  | 1,864 |  |  |  | 77,672 |
Total revenues |  |  | 242,753 |  |  |  | 48,166 |  |  |  | 73,965 |  |  |  | 1,864 |  |  |  | 366,748 |
Depreciation of rental equipment |  |  | 18,072 |  |  |  | 1,657 |  |  |  | 24,701 |  |  | — |  |  |  | 44,430 |
Gross profit |  |  | 107,244 |  |  |  | 32,982 |  |  |  | 31,503 |  |  |  | 248 |  |  |  | 171,977 |
Selling and administrative expenses |  |  | 69,548 |  |  |  | 15,262 |  |  |  | 16,577 |  |  |  | 3,137 |  |  |  | 104,524 |
Other income |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Income (loss) from operations |  |  | 37,696 |  |  |  | 17,720 |  |  |  | 14,926 |  |  |  | (2,889 | ) |  |  | 67,453 |
Interest expense (income) allocation |  |  | 12,592 |  |  |  | 2,126 |  |  |  | 3,801 |  |  |  | (1,110 | ) |  |  | 17,409 |
Income (loss) before provision for income taxes |  |  | 25,104 |  |  |  | 15,594 |  |  |  | 11,333 |  |  |  | (1,779 | ) |  |  | 50,252 |
Rental equipment acquisitions |  |  | 90,933 |  |  |  | 14,642 |  |  |  | 16,906 |  |  | — |  |  |  | 122,481 |
Accounts receivable, net (period end) |  |  | 144,640 |  |  |  | 17,287 |  |  |  | 26,138 |  |  |  | 3,611 |  |  |  | 191,676 |
Rental equipment, at cost (period end) |  |  | 1,237,221 |  |  |  | 220,763 |  |  |  | 390,832 |  |  | — |  |  |  | 1,848,816 |
Rental equipment, net book value (period end) |  |  | 928,997 |  |  |  | 203,781 |  |  |  | 162,872 |  |  | — |  |  |  | 1,295,650 |
Utilization (period end) 2 |  |  | 79.2 | % |  |  | 77.0 | % |  |  | 58.3 | % |  |  |  |  |  |
Average utilization 2 |  |  | 79.4 | % |  |  | 79.4 | % |  |  | 58.7 | % |  |  |  |  |  |
1. Gross Enviroplex sales revenues were $13,093 and $1,871 for the six months ended June 30, 2024 and 2023, respectively. There were $2 and $7 of inter-segment sales to Mobile Modular in the six months ended June 30, 2024 and 2023, 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 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 six months ended June 30, 2024 and 2023. Revenues from foreign country customers accounted for 2% and 3% 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/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards 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