Revisions of Prior Period Financial Statements

12 Months Ended

Dec. 31, 2019

Accounting Changes and Error Corrections [Abstract]

Revisions of Prior Period Financial Statements

As discussed in Note 2 (Summary of Significant Accounting Policies), in conjunction with the preparation of its year-end financial statements for 2019, the Company determined that certain, immaterial operating costs and expenses were inappropriately capitalized during the years ended December 31, 2018 and 2017, as well for interim periods in 2019 and 2018. As a result, the Company revised its prior period financial statements to incorporate additional operating costs and expenses of $1.1 million, $1.14 million and $96,000 for the nine months ended September 30, 2019, the year ended December 31, 2018 and the year ended December 31, 2017, respectively.

These revisions are summarized in the tables below.

Revised Consolidated Balance Sheet


	As of December 31, 2018
($ in thousands)	As Reported		Revisions		As Revised
Assets
Inventory	$	30,974	$	(784)	$	30,190
Prepaid income taxes	3,148		40		3,188
Prepaid expenses and other	2,430		(734)		1,696
Total current assets	96,399		(1,478)		94,921
Rental equipment, net of accumulated depreciation	175,886		220		176,106
Property and equipment, net of accumulated depreciation	16,587		57		16,644
Total assets	305,401		(1,201)		304,200

Liabilities and Stockholders' Equity
Deferred income tax liability	$	32,158	$	(252)	$	31,906
Total liabilities	45,220		(252)		44,968
Retained earnings	152,291		(949)		151,342
Total stockholders' equity	260,181		(949)		259,232
Total liabilities and stockholders' equity	305,401		(1,201)		304,200

Revised Consolidated Statements of Income


	For the Year Ended December 31, 2018
($ in thousands, except per share)	As Reported		Revisions		As Revised
Total revenue	$	65,478	$	—	$	65,478
Operating costs and expenses:
Cost of rentals, exclusive of depreciation stated separately below	20,746		1,114		21,860
Depreciation and amortization	22,049		31		22,080
Total operating costs and expenses	64,840		1,145		65,985
Operating income (loss)	638		(1,145)		(507)
Income (loss) before provision for income taxes	751		(1,145)		(394)
Provision for income taxes:
Current benefit (expense)	248		(6)		242
Deferred (expense) benefit	(573)		259		(314)
Income tax (expense) benefit	(325)		253		(72)
Net income (loss)	426		(892)		(466)
Earnings (loss) per share, basic	0.03		(0.07)		(0.04)
Earnings (loss) per share, diluted	0.03		(0.07)		(0.04)


	For the Year Ended December 31, 2017
($ in thousands, except per share)	As Reported		Revisions		As Revised
Total revenue	$	67,693	$	—	$	67,693
Operating costs and expenses:
Cost of rentals, exclusive of depreciation stated separately below	18,078		82		18,160
Depreciation and amortization	21,302		14		21,316
Total operating costs and expenses	66,126		96		66,222
Operating income (loss)	1,567		(96)		1,471
Income (loss) before provision for income taxes	1,603		(96)		1,507
Provision for income taxes:
Current (expense) benefit	(3,334)		46		(3,288)
Deferred benefit (expense)	21,582		(7)		21,575
Income tax benefit	18,248		39		18,287
Net income (loss)	19,851		(57)		19,794
Earnings (loss) per share, basic	1.55		(0.01)		1.54
Earnings (loss) per share, diluted	1.51		—		1.51

Revised Consolidated Statements of Stockholders' Equity


	For the Year Ended December 31, 2018
($ in thousands)	As Reported		Revisions		As Revised
Net income (loss)	$	426	$	(892)	$	(466)
Retained earnings	152,291		(949)		151,342
Total stockholders' equity	260,181		(949)		259,232


	For the Year Ended December 31, 2017
($ in thousands)	As Reported		Revisions		As Revised
Net income (loss)	$	19,851	$	(57)	$	19,794
Retained earnings	151,865		(57)		151,808
Total stockholders' equity	257,319		(57)		257,262

Revised Consolidated Statements of Cash Flows


	For the Year Ended December 31, 2018
($ in thousands)	As Reported		Revisions		As Revised
Cash flows from operating activities:
Net income (loss)	$	426	$	(892)	$	(466)
Depreciation and amortization	22,049		31		22,080
Deferred taxes	573		(259)		314
Inventory (increase) decrease	(5,757)		655		(5,102)
Prepaid income taxes and prepaid expenses (increase) decrease	(1,318)		740		(578)
Net cash provided by operating activities	23,414		275		23,689
Cash flows from investing activities:
Purchase of rental equipment, property and other equipment	(39,790)		(275)		(40,065)
Net cash used in investing activities	(40,010)		(275)		(40,285)
Net change in cash and cash equivalents	(16,580)		—		(16,580)


	For the Year Ended December 31, 2017
($ in thousands)	As Reported		Revisions		As Revised
Cash flows from operating activities:
Net income (loss)	$	19,851	$	(57)	$	19,794
Depreciation and amortization	21,302		14		21,316
Deferred taxes	(21,582)		7		(21,575)
Inventory (increase) decrease	(5,350)		129		(5,221)
Prepaid income taxes and prepaid expenses increase	(1,806)		(46)		(1,852)
Net cash provided by operating activities	17,452		47		17,499
Cash flows from investing activities:
Purchase of rental equipment, property and other equipment	(13,489)		(47)		(13,536)
Net cash used in investing activities	(12,791)		(47)		(12,838)
Net change in cash and cash equivalents	5,114		—		5,114