Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 28, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | MGRC | |
Entity Registrant Name | MCGRATH RENTCORP | |
Entity Central Index Key | 752,714 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 23,885,220 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues | ||||
Rental | $ 70,195 | $ 69,642 | $ 203,002 | $ 197,881 |
Rental related services | 21,862 | 17,871 | 54,456 | 46,529 |
Rental operations | 92,057 | 87,513 | 257,458 | 244,410 |
Sales | 20,426 | 24,998 | 40,181 | 50,206 |
Other | 565 | 514 | 1,623 | 1,714 |
Total revenues | 113,048 | 113,025 | 299,262 | 296,330 |
Direct costs of rental operations: | ||||
Depreciation of rental equipment | 18,809 | 18,298 | 56,507 | 54,119 |
Rental related services | 15,802 | 13,506 | 40,602 | 35,179 |
Other | 14,032 | 14,955 | 45,469 | 43,693 |
Total direct costs of rental operations | 48,643 | 46,759 | 142,578 | 132,991 |
Costs of sales | 14,259 | 16,968 | 26,533 | 33,324 |
Total costs of revenues | 62,902 | 63,727 | 169,111 | 166,315 |
Gross profit | 50,146 | 49,298 | 130,151 | 130,015 |
Selling and administrative expenses | 24,996 | 24,200 | 74,661 | 71,451 |
Income from operations | 25,150 | 25,098 | 55,490 | 58,564 |
Other income (expense): | ||||
Interest expense | (2,444) | (2,386) | (7,182) | (6,924) |
Gain on sale of property, plant and equipment | 812 | |||
Foreign currency exchange loss | (201) | (103) | (454) | (113) |
Income before provision for income taxes | 22,505 | 22,609 | 47,854 | 52,339 |
Provision for income taxes | 8,889 | 8,863 | 18,902 | 20,517 |
Net income | $ 13,616 | $ 13,746 | $ 28,952 | $ 31,822 |
Earnings per share: | ||||
Basic | $ 0.54 | $ 0.53 | $ 1.12 | $ 1.23 |
Diluted | $ 0.54 | $ 0.53 | $ 1.12 | $ 1.22 |
Shares used in per share calculation: | ||||
Basic | 25,334 | 25,953 | 25,853 | 25,885 |
Diluted | 25,408 | 26,152 | 25,954 | 26,177 |
Cash dividends declared per share | $ 0.250 | $ 0.245 | $ 0.750 | $ 0.735 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 13,616 | $ 13,746 | $ 28,952 | $ 31,822 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | (31) | (48) | 58 | (25) |
Tax benefit (provision) | 7 | 8 | (23) | 4 |
Comprehensive income | $ 13,592 | $ 13,706 | $ 28,987 | $ 31,801 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Cash | $ 757 | $ 1,167 |
Accounts receivable, net of allowance for doubtful accounts of $2,082 in 2015 and $2,038 in 2014 | 107,560 | 101,294 |
Rental equipment, at cost: | ||
Relocatable modular buildings | 717,892 | 664,340 |
Electronic test equipment | 266,034 | 261,995 |
Liquid and solid containment tanks and boxes | 309,779 | 303,303 |
Rental equipment, gross | 1,293,705 | 1,229,638 |
Less accumulated depreciation | (429,428) | (403,888) |
Rental equipment, net | 864,277 | 825,750 |
Property, plant and equipment, net | 110,530 | 108,628 |
Prepaid expenses and other assets | 28,480 | 41,424 |
Intangible assets, net | 9,683 | 10,336 |
Goodwill | 27,808 | 27,808 |
Total assets | 1,149,095 | 1,116,407 |
Liabilities: | ||
Notes payable | 382,113 | 322,478 |
Accounts payable and accrued liabilities | 70,963 | 71,357 |
Deferred income | 40,172 | 29,139 |
Deferred income taxes, net | 266,383 | 268,902 |
Total liabilities | 759,631 | 691,876 |
Shareholders’ equity: | ||
Common stock, no par value - Authorized 40,000 shares Issued and outstanding - 24,355 shares as of September 30, 2015 and 26,051 shares as of December 31, 2014 | 103,642 | 106,469 |
Retained earnings | 285,889 | 318,164 |
Accumulated other comprehensive loss | (67) | (102) |
Total shareholders’ equity | 389,464 | 424,531 |
Total liabilities and shareholders’ equity | $ 1,149,095 | $ 1,116,407 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 2,082 | $ 2,038 |
Common stock, par value | ||
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 24,355,000 | 26,051,000 |
Common Stock, shares outstanding | 24,355,000 | 26,051,000 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash Flows from Operating Activities : | ||
Net income | $ 28,952 | $ 31,822 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 63,303 | 60,383 |
Provision for doubtful accounts | 1,179 | 1,480 |
Share-based compensation | 2,863 | 3,010 |
Gain on sale of used rental equipment | (9,066) | (10,777) |
Gain on sale of property, plant and equipment | (812) | |
Foreign currency exchange loss | 454 | 113 |
Change in: | ||
Accounts receivable | (7,445) | (17,400) |
Prepaid expenses and other assets | 12,944 | (2,293) |
Accounts payable and accrued liabilities | (1,055) | 7,370 |
Deferred income | 11,033 | 8,772 |
Deferred income taxes | (2,519) | 3,295 |
Net cash provided by operating activities | 100,643 | 84,963 |
Cash Flows from Investing Activities: | ||
Purchase of rental equipment | (104,884) | (112,972) |
Purchase of property, plant and equipment | (8,045) | (9,078) |
Proceeds from sale of used rental equipment | 19,681 | 22,864 |
Proceeds from sale of property, plant and equipment | 2,501 | |
Net cash used in investing activities | (93,248) | (96,685) |
Cash Flows from Financing Activities: | ||
Net borrowing under bank lines of credit | 79,635 | 12,277 |
Borrowing under Series B senior notes | 40,000 | |
Principal payment on Series A senior notes | (20,000) | (20,000) |
Proceeds from the exercise of stock options | 1,458 | 318 |
Excess tax benefit from exercise and disqualifying disposition of stock options | 349 | 1,314 |
Taxes paid related to net share settlement of stock awards | (729) | (3,777) |
Repurchase of common stock | (48,785) | |
Payment of dividends | (19,728) | (19,189) |
Net cash provided by (used in) financing activities | (7,800) | 10,943 |
Effect of exchange rate changes on cash | (5) | (77) |
Net decrease in cash | (410) | (856) |
Cash balance, beginning of period | 1,167 | 1,630 |
Cash balance, end of period | 757 | 774 |
Supplemental Disclosure of Cash Flow Information: | ||
Interest paid, during the period | 7,224 | 6,316 |
Net income taxes paid, during the period | 2,240 | 15,694 |
Dividends accrued during the period, not yet paid | 6,159 | 6,471 |
Rental equipment acquisitions, not yet paid | $ 5,707 | $ 12,655 |
Condensed Consolidated Financia
Condensed Consolidated Financial Information | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Condensed Consolidated Financial Information | NOTE 1. CONDENSED CONSOLIDATED FINANCIAL INFORMATION The condensed consolidated financial statements for the three and nine months ended September 30, 2015 and 2014 have not been audited, but in the opinion of management, all adjustments (consisting of normal recurring accruals, consolidating and eliminating entries) necessary for the fair presentation of the consolidated financial position, results of operations and cash flows of McGrath RentCorp (the “Company”) have been made. The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and note disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to those rules and regulations. The consolidated results for the nine months ended September 30, 2015 should not be considered as necessarily indicative of the consolidated results for the entire fiscal year. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s latest Annual Report on Form 10-K filed with the SEC on February 26, 2015 for the year ended December 31, 2014 (the “2014 Annual Report”). |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Pronouncements | NOTE 2. NEW ACCOUNTING PRONOUNCEMENTS In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-03, Imputation of Interest (Subtopic 835-30). The amendments in this update require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with the presentation of debt discounts. The amendments are effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The Company does not expect the adoption of this accounting guidance to have a significant impact on its consolidated financial statements. In April 2015, the FASB issued accounting guidance on the presentation of debt issuance costs in the balance sheet. This standard requires that certain debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by this guidance. The Company will apply this guidance prospectively beginning in the fiscal year ended December 31, 2017. The application of this guidance will result in a reclassification of debt financing costs from prepaid expenses and other assets to a reduction of the specific debt liability, and will not affect the Company’s statement of operations or cash flow. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory (Topic 330). ASU 2015-11 requires inventory to be measured at the lower of cost and net realizable value. Net realizable value is defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The amendment is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company does not expect the adoption of this accounting guidance to have a significant impact on its consolidated financial statements. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 3. EARNINGS PER SHARE Basic earnings per share (“EPS”) is computed as net income divided by the weighted-average number of shares of common stock outstanding for the period. Diluted EPS is computed assuming conversion of all potentially dilutive securities including the dilutive effect of stock options, unvested restricted stock awards and other potentially dilutive securities. The table below presents the weighted-average number of shares of common stock used to calculate basic and diluted earnings per share: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2015 2014 2015 2014 Weighted-average number of shares of common stock for calculating basic earnings per share 25,334 25,953 25,853 25,885 Effect of potentially dilutive securities from equity-based compensation 74 199 101 292 Weighted-average number of shares of common stock for calculating diluted earnings per share 25,408 26,152 25,954 26,177 The following securities were not included in the computation of diluted earnings per share as their effect would have been anti-dilutive: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2015 2014 2015 2014 Options to purchase shares of common stock 1,326 9 746 9 In May 2008, the Company’s Board of Directors authorized the Company to repurchase an aggregate of 2,000,000 shares of the Company's outstanding common stock. The Company has in the past made purchases of shares of its common stock from time to time in over-the-counter market (NASDAQ) transactions, through privately negotiated, large block transactions and through a share repurchase plan, in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934. In August 2015, the Company’s Board of Directors authorized the Company to repurchase an additional 2,000,000 shares of the Company's outstanding common stock. The amount and time of the specific repurchases are subject to prevailing market conditions, applicable legal requirements and other factors, including management’s discretion. All shares repurchased by the Company are canceled and returned to the status of authorized but unissued shares of common stock. There can be no assurance that any authorized shares will be repurchased and the repurchase program may be modified, extended or terminated by the board of directors at any time. The following table presents share repurchase activities during the three and nine months ended September 30, 2015 and 2014. Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except share and per share amounts) 2015 2014 2015 2014 Number of shares repurchased 1,754,636 — 1,856,289 — Aggregate purchase price $ 45,653 — $ 48,784 — Average price per repurchased shares $ 26.02 — $ 26.28 — As of September 30, 2015, 2,143,711 shares remain authorized for repurchase. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | NOTE 4. INTANGIBLE ASSETS Intangible assets consist of the following: (dollar amounts in thousands) Estimated useful life in years September 2015 December 31, 2014 Trade name Indefinite $ 5,700 $ 5,700 Customer relationships 11 9,611 9,611 15,311 15,311 Less accumulated amortization (5,628 ) (4,975 ) $ 9,683 $ 10,336 The Company assesses potential impairment of its goodwill and intangible assets when there is evidence that events or circumstances have occurred that would indicate the recovery of an asset’s carrying value is unlikely. The Company also assesses potential impairment of its goodwill and intangible assets on an annual basis regardless of whether there is evidence of impairment. If indicators of impairment were to be present in intangible assets used in operations and future discounted cash flows were not expected to be sufficient to recover the assets’ carrying amount, an impairment loss would be charged to expense in the period identified. The amount of an impairment loss that would be recognized is the excess of the asset’s carrying value over its fair value. Factors the Company considers important, which may cause impairment include, among others, significant changes in the manner of use of the acquired asset, negative industry or economic trends, and significant underperformance relative to historical or projected operating results. The Company typically conducts its annual impairment analysis in the fourth quarter of its fiscal year. The impairment analysis did not result in an impairment charge for the fiscal year ended December 31, 2014. Determining the fair value of a reporting unit is judgmental and involves the use of significant estimates and assumptions. The Company bases its fair value estimates on assumptions that it believes are reasonable but are uncertain and subject to changes in market conditions. Intangible assets with finite useful lives are amortized over their respective useful lives. Based on the carrying values at September 30, 2015 and assuming no subsequent impairment of the underlying assets, the amortization expense is expected to be $0.2 million for the remainder of fiscal year 2015 and $0.8 million in each of the fiscal years 2016 through 2020. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting | NOTE 5. SEGMENT REPORTING The Company’s four reportable segments are (1) its modular building rental division (“Mobile Modular”); (2) its electronic test equipment rental division (“TRS-RenTelco”); (3) its containment solutions for the storage of hazardous and non-hazardous liquids and solids division (“Adler Tanks”); and (4) its classroom manufacturing division 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 2 – Significant Accounting Policies” in the Company’s annual report on Form 10-K for the year ended December 31, 2014. Management focuses on several key measures to evaluate and assess each segment’s performance, including rental revenue growth, gross profit, 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, TRS-RenTelco and Adler Tanks based on their pro-rata share of direct revenues. Interest expense is allocated among 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, 2015 and 2014 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, 2015 Rental revenues $ 84,242 $ 66,612 $ 52,148 $ — $ 203,002 Rental related services revenues 33,904 2,271 18,281 — 54,456 Sales and other revenues 15,971 16,385 1,082 8,366 41,804 Total revenues 134,117 85,268 71,511 8,366 299,262 Depreciation of rental equipment 14,218 30,335 11,954 — 56,507 Gross profit 56,263 35,293 36,383 2,212 130,151 Selling and administrative expenses 34,436 17,059 20,755 2,411 74,661 Income (loss) from operations 21,827 18,234 15,628 (199 ) 55,490 Interest (expense) income allocation (3,790 ) (1,580 ) (1,953 ) 141 (7,182 ) Income (loss) before provision for income taxes 18,037 16,200 13,675 (58 ) 47,854 Rental equipment acquisitions 59,501 37,822 8,328 — 105,651 Accounts receivable, net (period end) 60,132 23,649 20,312 3,467 107,560 Rental equipment, at cost (period end) 717,892 266,034 309,779 — 1,293,705 Rental equipment, net book value (period end) 515,207 107,801 241,269 — 864,277 Utilization (period end) 2 77.9 % 60.5 % 57.0 % Average utilization 2 75.3 % 60.2 % 59.9 % 2014 Rental revenues $ 69,644 $ 73,665 $ 54,572 $ — $ 197,881 Rental related services revenues 25,493 2,463 18,573 — 46,529 Sales and other revenues 22,057 18,369 893 10,601 51,920 Total revenues 117,194 94,497 74,038 10,601 296,330 Depreciation of rental equipment 12,114 30,709 11,296 — 54,119 Gross profit 43,296 43,916 39,779 3,024 130,015 Selling and administrative expenses 30,786 17,848 20,338 2,479 71,451 Income from operations 12,510 26,068 19,441 545 58,564 Interest (expense) income allocation 3,524 1,584 1,950 (134 ) 6,924 Gain on sale of property, plant and equipment 341 276 195 — 812 Income before provision for income taxes 9,327 24,647 17,686 679 52,339 Rental equipment acquisitions 65,100 32,903 19,088 — 117,091 Accounts receivable, net (period end) 55,525 22,228 21,190 4,627 103,570 Rental equipment, at cost (period end) 649,206 263,712 302,168 — 1,215,086 Rental equipment, net book value (period end) 462,722 106,460 248,716 — 817,898 Utilization (period end) 2 74.2 % 64.2 % 65.1 % Average utilization 2 71.4 % 59.6 % 62.2 % 1. Gross Enviroplex sales revenues were $9,077 and $12,133 for the nine months ended September 30, 2015 and 2014, respectively, which includes inter-segment sales to Mobile Modular of $711 and $1,532, respectively, which have been eliminated 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, 2015 and 2014. Revenues from foreign country customers accounted for 5% and 4% of the Company’s total revenues for the same periods, respectively. |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Pronouncements | In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-03, Imputation of Interest (Subtopic 835-30). The amendments in this update require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with the presentation of debt discounts. The amendments are effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The Company does not expect the adoption of this accounting guidance to have a significant impact on its consolidated financial statements. In April 2015, the FASB issued accounting guidance on the presentation of debt issuance costs in the balance sheet. This standard requires that certain debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by this guidance. The Company will apply this guidance prospectively beginning in the fiscal year ended December 31, 2017. The application of this guidance will result in a reclassification of debt financing costs from prepaid expenses and other assets to a reduction of the specific debt liability, and will not affect the Company’s statement of operations or cash flow. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory (Topic 330). ASU 2015-11 requires inventory to be measured at the lower of cost and net realizable value. Net realizable value is defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The amendment is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company does not expect the adoption of this accounting guidance to have a significant impact on its consolidated financial statements. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Weighted-Average Number of Shares of Common Stock Used to Calculate Basic and Diluted Earnings Per Share | The table below presents the weighted-average number of shares of common stock used to calculate basic and diluted earnings per share: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2015 2014 2015 2014 Weighted-average number of shares of common stock for calculating basic earnings per share 25,334 25,953 25,853 25,885 Effect of potentially dilutive securities from equity-based compensation 74 199 101 292 Weighted-average number of shares of common stock for calculating diluted earnings per share 25,408 26,152 25,954 26,177 |
Securities Not Included in Computation of Diluted Earnings Per Share | The following securities were not included in the computation of diluted earnings per share as their effect would have been anti-dilutive: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2015 2014 2015 2014 Options to purchase shares of common stock 1,326 9 746 9 |
Summary of Share Repurchase Activities | The following table presents share repurchase activities during the three and nine months ended September 30, 2015 and 2014. Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except share and per share amounts) 2015 2014 2015 2014 Number of shares repurchased 1,754,636 — 1,856,289 — Aggregate purchase price $ 45,653 — $ 48,784 — Average price per repurchased shares $ 26.02 — $ 26.28 — |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | Intangible assets consist of the following: (dollar amounts in thousands) Estimated useful life in years September 2015 December 31, 2014 Trade name Indefinite $ 5,700 $ 5,700 Customer relationships 11 9,611 9,611 15,311 15,311 Less accumulated amortization (5,628 ) (4,975 ) $ 9,683 $ 10,336 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Summarized Financial Information for Company's Reportable Segments | Summarized financial information for the nine months ended September 30, 2015 and 2014 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, 2015 Rental revenues $ 84,242 $ 66,612 $ 52,148 $ — $ 203,002 Rental related services revenues 33,904 2,271 18,281 — 54,456 Sales and other revenues 15,971 16,385 1,082 8,366 41,804 Total revenues 134,117 85,268 71,511 8,366 299,262 Depreciation of rental equipment 14,218 30,335 11,954 — 56,507 Gross profit 56,263 35,293 36,383 2,212 130,151 Selling and administrative expenses 34,436 17,059 20,755 2,411 74,661 Income (loss) from operations 21,827 18,234 15,628 (199 ) 55,490 Interest (expense) income allocation (3,790 ) (1,580 ) (1,953 ) 141 (7,182 ) Income (loss) before provision for income taxes 18,037 16,200 13,675 (58 ) 47,854 Rental equipment acquisitions 59,501 37,822 8,328 — 105,651 Accounts receivable, net (period end) 60,132 23,649 20,312 3,467 107,560 Rental equipment, at cost (period end) 717,892 266,034 309,779 — 1,293,705 Rental equipment, net book value (period end) 515,207 107,801 241,269 — 864,277 Utilization (period end) 2 77.9 % 60.5 % 57.0 % Average utilization 2 75.3 % 60.2 % 59.9 % 2014 Rental revenues $ 69,644 $ 73,665 $ 54,572 $ — $ 197,881 Rental related services revenues 25,493 2,463 18,573 — 46,529 Sales and other revenues 22,057 18,369 893 10,601 51,920 Total revenues 117,194 94,497 74,038 10,601 296,330 Depreciation of rental equipment 12,114 30,709 11,296 — 54,119 Gross profit 43,296 43,916 39,779 3,024 130,015 Selling and administrative expenses 30,786 17,848 20,338 2,479 71,451 Income from operations 12,510 26,068 19,441 545 58,564 Interest (expense) income allocation 3,524 1,584 1,950 (134 ) 6,924 Gain on sale of property, plant and equipment 341 276 195 — 812 Income before provision for income taxes 9,327 24,647 17,686 679 52,339 Rental equipment acquisitions 65,100 32,903 19,088 — 117,091 Accounts receivable, net (period end) 55,525 22,228 21,190 4,627 103,570 Rental equipment, at cost (period end) 649,206 263,712 302,168 — 1,215,086 Rental equipment, net book value (period end) 462,722 106,460 248,716 — 817,898 Utilization (period end) 2 74.2 % 64.2 % 65.1 % Average utilization 2 71.4 % 59.6 % 62.2 % 1. Gross Enviroplex sales revenues were $9,077 and $12,133 for the nine months ended September 30, 2015 and 2014, respectively, which includes inter-segment sales to Mobile Modular of $711 and $1,532, respectively, which have been eliminated in consolidation. 2. Utilization is calculated each month by dividing the cost of rental equipment on rent by the total cost of rental equipment excluding accessory equipment and for Mobile Modular and Adler Tanks excluding new equipment inventory. The Average Utilization for the period is calculated using the average costs of rental equipment . |
Earnings Per Share - Weighted-A
Earnings Per Share - Weighted-Average Number of Shares of Common Stock Used to Calculate Basic and Diluted Earnings Per Share (Detail) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Weighted-average number of shares of common stock for calculating basic earnings per share | 25,334 | 25,953 | 25,853 | 25,885 |
Effect of potentially dilutive securities from equity-based compensation | 74 | 199 | 101 | 292 |
Weighted-average number of shares of common stock for calculating diluted earnings per share | 25,408 | 26,152 | 25,954 | 26,177 |
Earnings Per Share - Securities
Earnings Per Share - Securities Not Included in Computation of Diluted Earnings Per Share (Detail) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Options to purchase shares of common stock | 1,326 | 9 | 746 | 9 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | Sep. 30, 2015 | Aug. 31, 2015 | May. 31, 2008 |
Equity [Abstract] | |||
Common stock shares authorized for repurchase | 2,000,000 | 2,000,000 | |
Shares remain authorized for repurchase | 2,143,711 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Share Repurchase Activities (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2015 | Sep. 30, 2015 | |
Equity [Abstract] | ||
Number of shares repurchased | 1,754,636 | 1,856,289 |
Aggregate purchase price | $ 45,653 | $ 48,784 |
Average price per repurchased shares | $ 26.02 | $ 26.28 |
Intangible Assets - Summary of
Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Trade name | $ 5,700 | $ 5,700 |
Customer relationships | 9,611 | 9,611 |
Intangible Assets, gross | 15,311 | 15,311 |
Less accumulated amortization | (5,628) | (4,975) |
Intangible Assets, net | $ 9,683 | $ 10,336 |
Estimated useful life (In years), Customer relationships | 11 years |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Impairment charge | $ 0 | |
Subsequent impairment of the underlying assets | $ 0 | |
Expected amortization expense for the remainder of 2015 | 200,000 | |
Expected amortization expense for 2016 | 800,000 | |
Expected amortization expense for 2017 | 800,000 | |
Expected amortization expense for 2018 | 800,000 | |
Expected amortization expense for 2019 | 800,000 | |
Expected amortization expense for 2020 | $ 800,000 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) - Segment | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | 4 | |
Customer Concentration Risk [Member] | Sales [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues from customers | 10.00% | 10.00% |
Geographic Concentration Risk [Member] | Sales [Member] | Foreign Country Customers [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues from customers | 5.00% | 4.00% |
Segment Reporting - Summarized
Segment Reporting - Summarized Financial Information for Company's Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | ||
Segment Reporting Information [Line Items] | ||||||
Rental revenues | $ 70,195 | $ 69,642 | $ 203,002 | $ 197,881 | ||
Rental related services revenues | 21,862 | 17,871 | 54,456 | 46,529 | ||
Sales and other revenues | 41,804 | 51,920 | ||||
Total revenues | 113,048 | 113,025 | 299,262 | 296,330 | ||
Depreciation of rental equipment | 18,809 | 18,298 | 56,507 | 54,119 | ||
Gross profit | 50,146 | 49,298 | 130,151 | 130,015 | ||
Selling and administrative expenses | 24,996 | 24,200 | 74,661 | 71,451 | ||
Income (loss) from operations | 25,150 | 25,098 | 55,490 | 58,564 | ||
Interest (expense) income allocation | (7,182) | 6,924 | ||||
Gain on sale of property, plant and equipment | 812 | |||||
Income (loss) before provision for income taxes | 22,505 | 22,609 | 47,854 | 52,339 | ||
Rental equipment acquisitions | 105,651 | 117,091 | ||||
Accounts receivable, net (period end) | 107,560 | 103,570 | 107,560 | 103,570 | $ 101,294 | |
Rental equipment, at cost (period end) | 1,293,705 | 1,215,086 | 1,293,705 | 1,215,086 | 1,229,638 | |
Rental equipment, net book value (period end) | 864,277 | 817,898 | 864,277 | 817,898 | $ 825,750 | |
Mobile Modular [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Rental revenues | 84,242 | 69,644 | ||||
Rental related services revenues | 33,904 | 25,493 | ||||
Sales and other revenues | 15,971 | 22,057 | ||||
Total revenues | 134,117 | 117,194 | ||||
Depreciation of rental equipment | 14,218 | 12,114 | ||||
Gross profit | 56,263 | 43,296 | ||||
Selling and administrative expenses | 34,436 | 30,786 | ||||
Income (loss) from operations | 21,827 | 12,510 | ||||
Interest (expense) income allocation | (3,790) | 3,524 | ||||
Gain on sale of property, plant and equipment | 341 | |||||
Income (loss) before provision for income taxes | 18,037 | 9,327 | ||||
Rental equipment acquisitions | 59,501 | 65,100 | ||||
Accounts receivable, net (period end) | 60,132 | 55,525 | 60,132 | 55,525 | ||
Rental equipment, at cost (period end) | 717,892 | 649,206 | 717,892 | 649,206 | ||
Rental equipment, net book value (period end) | 515,207 | 462,722 | $ 515,207 | $ 462,722 | ||
Utilization (period end) | [1] | 77.90% | 74.20% | |||
Average utilization | [1] | 75.30% | 71.40% | |||
TRS-RenTelco [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Rental revenues | $ 66,612 | $ 73,665 | ||||
Rental related services revenues | 2,271 | 2,463 | ||||
Sales and other revenues | 16,385 | 18,369 | ||||
Total revenues | 85,268 | 94,497 | ||||
Depreciation of rental equipment | 30,335 | 30,709 | ||||
Gross profit | 35,293 | 43,916 | ||||
Selling and administrative expenses | 17,059 | 17,848 | ||||
Income (loss) from operations | 18,234 | 26,068 | ||||
Interest (expense) income allocation | (1,580) | 1,584 | ||||
Gain on sale of property, plant and equipment | 276 | |||||
Income (loss) before provision for income taxes | 16,200 | 24,647 | ||||
Rental equipment acquisitions | 37,822 | 32,903 | ||||
Accounts receivable, net (period end) | 23,649 | 22,228 | 23,649 | 22,228 | ||
Rental equipment, at cost (period end) | 266,034 | 263,712 | 266,034 | 263,712 | ||
Rental equipment, net book value (period end) | 107,801 | 106,460 | $ 107,801 | $ 106,460 | ||
Utilization (period end) | [1] | 60.50% | 64.20% | |||
Average utilization | [1] | 60.20% | 59.60% | |||
Adler Tanks [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Rental revenues | $ 52,148 | $ 54,572 | ||||
Rental related services revenues | 18,281 | 18,573 | ||||
Sales and other revenues | 1,082 | 893 | ||||
Total revenues | 71,511 | 74,038 | ||||
Depreciation of rental equipment | 11,954 | 11,296 | ||||
Gross profit | 36,383 | 39,779 | ||||
Selling and administrative expenses | 20,755 | 20,338 | ||||
Income (loss) from operations | 15,628 | 19,441 | ||||
Interest (expense) income allocation | (1,953) | 1,950 | ||||
Gain on sale of property, plant and equipment | 195 | |||||
Income (loss) before provision for income taxes | 13,675 | 17,686 | ||||
Rental equipment acquisitions | 8,328 | 19,088 | ||||
Accounts receivable, net (period end) | 20,312 | 21,190 | 20,312 | 21,190 | ||
Rental equipment, at cost (period end) | 309,779 | 302,168 | 309,779 | 302,168 | ||
Rental equipment, net book value (period end) | 241,269 | 248,716 | $ 241,269 | $ 248,716 | ||
Utilization (period end) | [1] | 57.00% | 65.10% | |||
Average utilization | [1] | 59.90% | 62.20% | |||
Enviroplex [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Sales and other revenues | [2] | $ 8,366 | $ 10,601 | |||
Total revenues | [2] | 8,366 | 10,601 | |||
Gross profit | [2] | 2,212 | 3,024 | |||
Selling and administrative expenses | [2] | 2,411 | 2,479 | |||
Income (loss) from operations | [2] | (199) | 545 | |||
Interest (expense) income allocation | [2] | 141 | (134) | |||
Income (loss) before provision for income taxes | [2] | (58) | 679 | |||
Accounts receivable, net (period end) | [2] | $ 3,467 | $ 4,627 | $ 3,467 | $ 4,627 | |
[1] | 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. | |||||
[2] | Gross Enviroplex sales revenues were $9,077 and $12,133 for the nine months ended September 30, 2015 and 2014, respectively, which includes inter-segment sales to Mobile Modular of $711 and $1,532, respectively, which have been eliminated in consolidation. |
Segment Reporting - Summarize24
Segment Reporting - Summarized Financial Information for Company's Reportable Segments (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 113,048 | $ 113,025 | $ 299,262 | $ 296,330 | |
Enviroplex [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | [1] | 8,366 | 10,601 | ||
Operating Segments [Member] | Enviroplex [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 9,077 | 12,133 | |||
Inter-segment Eliminations [Member] | Enviroplex [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales revenues | $ 711 | $ 1,532 | |||
[1] | Gross Enviroplex sales revenues were $9,077 and $12,133 for the nine months ended September 30, 2015 and 2014, respectively, which includes inter-segment sales to Mobile Modular of $711 and $1,532, respectively, which have been eliminated in consolidation. |