Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 01, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
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 | 23,981,608 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenues | ||
Rental | $ 67,978 | $ 66,532 |
Rental related services | 17,935 | 17,591 |
Rental operations | 85,913 | 84,123 |
Sales | 8,295 | 9,034 |
Other | 629 | 542 |
Total revenues | 94,837 | 93,699 |
Direct costs of rental operations: | ||
Depreciation of rental equipment | 17,379 | 18,540 |
Rental related services | 13,833 | 13,180 |
Other | 15,359 | 15,827 |
Total direct costs of rental operations | 46,571 | 47,547 |
Costs of sales | 4,596 | 5,497 |
Total costs of revenues | 51,167 | 53,044 |
Gross profit | 43,670 | 40,655 |
Selling and administrative expenses | 27,848 | 26,397 |
Income from operations | 15,822 | 14,258 |
Other income (expense): | ||
Interest expense | (2,789) | (3,556) |
Foreign currency exchange gain | 226 | 151 |
Income before provision for income taxes | 13,259 | 10,853 |
Provision for income taxes | 5,286 | 4,287 |
Net income | $ 7,973 | $ 6,566 |
Earnings per share: | ||
Basic | $ 0.33 | $ 0.28 |
Diluted | $ 0.33 | $ 0.27 |
Shares used in per share calculation: | ||
Basic | 23,950 | 23,862 |
Diluted | 24,232 | 23,911 |
Cash dividends declared per share | $ 0.260 | $ 0.255 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income | $ 7,973 | $ 6,566 |
Other comprehensive loss: | ||
Foreign currency translation adjustment | (78) | (92) |
Tax benefit | 25 | 34 |
Comprehensive income | $ 7,920 | $ 6,508 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Cash | $ 1,680 | $ 852 |
Accounts receivable, net of allowance for doubtful accounts of $2,087 in 2017 and 2016 | 92,552 | 96,877 |
Rental equipment, at cost: | ||
Relocatable modular buildings | 773,597 | 769,190 |
Electronic test equipment | 248,291 | 246,325 |
Liquid and solid containment tanks and boxes | 309,131 | 308,542 |
Rental equipment, gross | 1,331,019 | 1,324,057 |
Less accumulated depreciation | (474,038) | (467,686) |
Rental equipment, net | 856,981 | 856,371 |
Property, plant and equipment, net | 116,217 | 112,190 |
Prepaid expenses and other assets | 27,119 | 25,583 |
Intangible assets, net | 8,377 | 8,595 |
Goodwill | 27,808 | 27,808 |
Total assets | 1,130,734 | 1,128,276 |
Liabilities: | ||
Notes payable | 323,843 | 326,266 |
Accounts payable and accrued liabilities | 78,811 | 78,205 |
Deferred income | 39,887 | 37,499 |
Deferred income taxes, net | 291,568 | 292,019 |
Total liabilities | 734,109 | 733,989 |
Shareholders’ equity: | ||
Common stock, no par value - Authorized 40,000 shares Issued and outstanding - 23,956 shares as of March 31, 2017 and 23,948 shares as of December 31, 2016 | 102,483 | 101,821 |
Retained earnings | 294,250 | 292,521 |
Accumulated other comprehensive loss | (108) | (55) |
Total shareholders’ equity | 396,625 | 394,287 |
Total liabilities and shareholders’ equity | $ 1,130,734 | $ 1,128,276 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 2,087 | $ 2,087 |
Common stock, par value | ||
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 23,956,000 | 23,948,000 |
Common Stock, shares outstanding | 23,956,000 | 23,948,000 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash Flows from Operating Activities: | ||
Net income | $ 7,973 | $ 6,566 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 19,405 | 20,860 |
Provision for doubtful accounts | 289 | 498 |
Share-based compensation | 806 | 856 |
Gain on sale of used rental equipment | (2,943) | (2,966) |
Foreign currency exchange gain | (226) | (151) |
Amortization of debt issuance cost | 13 | 13 |
Change in: | ||
Accounts receivable | 4,036 | 2,882 |
Income taxes receivable | 11,000 | |
Prepaid expenses and other assets | (1,536) | 1,949 |
Accounts payable and accrued liabilities | (3,924) | (4,360) |
Deferred income | 2,388 | 536 |
Deferred income taxes | (451) | 1,851 |
Net cash provided by operating activities | 25,830 | 39,534 |
Cash Flows from Investing Activities: | ||
Purchases of rental equipment | (15,914) | (22,814) |
Purchases of property, plant and equipment | (5,835) | (881) |
Proceeds from sales of used rental equipment | 5,505 | 6,098 |
Net cash used in investing activities | (16,244) | (17,597) |
Cash Flows from Financing Activities: | ||
Net repayments under bank lines of credit | (2,436) | (15,522) |
Proceeds from the exercise of stock options | 37 | |
Taxes paid related to net share settlement of stock awards | (143) | (344) |
Payment of dividends | (6,155) | (6,136) |
Net cash used in financing activities | (8,734) | (21,965) |
Effect of foreign currency exchange rate changes on cash | (24) | (13) |
Net increase (decrease) in cash | 828 | (41) |
Cash balance, beginning of period | 852 | 1,103 |
Cash balance, end of period | 1,680 | 1,062 |
Supplemental Disclosure of Cash Flow Information: | ||
Interest paid, during the period | 2,303 | 2,986 |
Net income taxes paid, during the period | 5,565 | 706 |
Dividends accrued during the period, not yet paid | 6,190 | 6,120 |
Rental equipment acquisitions, not yet paid | $ 7,513 | $ 3,752 |
Condensed Consolidated Financia
Condensed Consolidated Financial Information | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Condensed Consolidated Financial Information | NOTE 1. CONDENSED CONSOLIDATED FINANCIAL INFORMATION The condensed consolidated financial statements for the three months ended March 31, 2017 and 2016 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 three months ended March 31, 2017 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 28, 2017 for the year ended December 31, 2016 (the “2016 Annual Report”). |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent Accounting Pronouncements | NOTE 2. RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers. The objective of this guidance is to establish the principles and provide implementation guidance related to Revenue from Contracts with Customers, including ASU 2016-08, Revenue from Contract with Customers: Principal versus Agent Considerations, ASU 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing, ASU 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients and ASU 2016-20, Revenue from Contracts with Customers: Technical Correction and Improvements. These amendments address a number of areas, including the entity’s identification of its performance obligations in a contract, collectability, non-cash consideration, presentation of sales tax and an entity’s evaluation of the nature of its promise to grant a license of intellectual property and whether or not that revenue is recognized over time or at a point in time. In February 2016, the FASB issued ASU No. 2016-02, Leases (Subtopic 842-10). Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) on the commencement date: a) lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and During the first quarter 2017, the Company adopted ASU No. 2016-09 Improvements to Employee Share-Based Payment Accounting (ASU 2016-09). As a result of the adoption, the Company recognized $18,000 of excess tax benefits related to share-based payments as a reduction to the provision for income taxes for the three months ended March 31, 2017. These tax benefits, or shortfalls, were historically recorded in equity. In addition, cash flows related to excess tax benefits, or shortfalls, are now classified as an operating activity with the prior period adjusted accordingly. Cash paid on employees’ behalf related to shares withheld for tax purposes is classified as a financing activity, consistent with prior year’s presentation. Retrospective application of the cash flow presentation requirements resulted in decreases to both net cash provided by operations and net cash used in financing activities of $111,000 for the three months ended March 31, 2016. The Company’s compensation expense for each period continues to reflect forfeitures as they occur, rather than based upon estimated expected forfeitures. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, (in thousands) 2017 2016 Weighted-average number of shares of common stock for calculating basic earnings per share 23,950 23,862 Effect of potentially dilutive securities from equity-based compensation 282 49 Weighted-average number of shares of common stock for calculating diluted earnings per share 24,232 23,911 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 March 31, (in thousands) 2017 2016 Options to purchase shares of common stock 7 1,019 |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2017 | |
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) March 2017 December 31, 2016 Trade name Indefinite $ 5,700 $ 5,700 Customer relationships 11 9,611 9,611 15,311 15,311 Less accumulated amortization (6,934 ) (6,716 ) $ 8,377 $ 8,595 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, 2016. 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 March 31, 2017 and assuming no subsequent impairment of the underlying assets, the amortization expense is expected to be $0.7 million for the remainder of fiscal year 2017, $0.9 million in each of the fiscal years 2018 and 2019 and $0.2 million in 2020. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting | NOTE 5. SEGMENT REPORTING The Company’s four reportable segments are (1) its modular building and portable storage segment (“Mobile Modular”); (2) its electronic test equipment segment (“TRS-RenTelco”); (3) its containment solutions for the storage of hazardous and non-hazardous liquids and solids segment (“Adler Tanks”); 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 2 – Significant Accounting Policies” in the Company’s annual report on Form 10-K for the year ended December 31, 2016. 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 three months ended March 31, 2017 and 2016 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 Three Months Ended March 31, 2017 Rental revenues $ 33,654 $ 19,746 $ 14,578 $ — $ 67,978 Rental related services revenues 11,588 658 5,689 — 17,935 Sales and other revenues 3,061 4,910 194 759 8,924 Total revenues 48,303 25,314 20,461 759 94,837 Depreciation of rental equipment 5,333 8,091 3,955 — 17,379 Gross profit 22,444 11,393 9,555 278 43,670 Selling and administrative expenses 13,800 5,689 7,267 1,092 27,848 Income (loss) from operations 8,644 5,704 2,288 (814 ) 15,822 Interest (expense) income allocation (1,591 ) (546 ) (738 ) 86 (2,789 ) Income (loss) before provision for income taxes 7,053 5,384 1,550 (728 ) 13,259 Rental equipment acquisitions 7,782 12,021 749 — 20,552 Accounts receivable, net (period end) 53,779 18,603 15,814 4,356 92,552 Rental equipment, at cost (period end) 773,597 248,291 309,131 — 1,331,019 Rental equipment, net book value (period end) 545,953 92,561 218,467 — 856,981 Utilization (period end) 2 76.5 % 62.1 % 53.4 % Average utilization 2 76.8 % 62.2 % 52.3 % 2016 Rental revenues $ 31,155 $ 20,928 $ 14,449 $ — $ 66,532 Rental related services revenues 11,205 784 5,602 — 17,591 Sales and other revenues 2,724 6,272 432 148 9,576 Total revenues 45,084 27,984 20,483 148 93,699 Depreciation of rental equipment 5,126 9,388 4,026 — 18,540 Gross profit 20,653 11,016 8,942 44 40,655 Selling and administrative expenses 12,462 5,797 7,262 876 26,397 Income (loss) from operations 8,191 5,219 1,680 (832 ) 14,258 Interest (expense) income allocation (1,947 ) (730 ) (934 ) 55 (3,556 ) Income (loss) before provision for income taxes 6,244 4,640 746 (777 ) 10,853 Rental equipment acquisitions 11,579 7,729 (18 ) — 19,290 Accounts receivable, net (period end) 50,915 21,393 15,386 4,189 91,883 Rental equipment, at cost (period end) 747,475 260,324 309,823 — 1,317,622 Rental equipment, net book value (period end) 535,308 98,291 233,616 — 867,215 Utilization (period end) 2 75.4 % 59.9 % 51.0 % Average utilization 2 76.1 % 59.6 % 50.3 % 1. Gross Enviroplex sales revenues were $759 and $148 for the three months ended March 31, 2017 and 2016, respectively. There were no inter-segment sales to Mobile Modular in those periods requiring 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 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 three months ended March 31, 2017 and 2016. Revenues from foreign country customers accounted for 5% of the Company’s total revenues for the same periods. |
Recent Accounting Pronounceme12
Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent Accounting Pronouncements | In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers. The objective of this guidance is to establish the principles for reporting useful information to users of financial statements about the nature, timing and uncertainty of revenue from contracts with customers. The FASB has continued to issue ASUs to clarify and provide implementation guidance related to Revenue from Contracts with Customers, including ASU 2016-08, Revenue from Contract with Customers: Principal versus Agent Considerations, ASU 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing, ASU 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients and ASU 2016-20, Revenue from Contracts with Customers: Technical Correction and Improvements. These amendments address a number of areas, including the entity’s identification of its performance obligations in a contract, collectability, non-cash consideration, presentation of sales tax and an entity’s evaluation of the nature of its promise to grant a license of intellectual property and whether or not that revenue is recognized over time or at a point in time. In February 2016, the FASB issued ASU No. 2016-02, Leases (Subtopic 842-10). Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) on the commencement date: a) lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and During the first quarter 2017, the Company adopted ASU No. 2016-09 Improvements to Employee Share-Based Payment Accounting (ASU 2016-09). As a result of the adoption, the Company recognized $18,000 of excess tax benefits related to share-based payments as a reduction to the provision for income taxes for the three months ended March 31, 2017. These tax benefits, or shortfalls, were historically recorded in equity. In addition, cash flows related to excess tax benefits, or shortfalls, are now classified as an operating activity with the prior period adjusted accordingly. Cash paid on employees’ behalf related to shares withheld for tax purposes is classified as a financing activity, consistent with prior year’s presentation. Retrospective application of the cash flow presentation requirements resulted in decreases to both net cash provided by operations and net cash used in financing activities of $111,000 for the three months ended March 31, 2016. The Company’s compensation expense for each period continues to reflect forfeitures as they occur, rather than based upon estimated expected forfeitures. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, (in thousands) 2017 2016 Weighted-average number of shares of common stock for calculating basic earnings per share 23,950 23,862 Effect of potentially dilutive securities from equity-based compensation 282 49 Weighted-average number of shares of common stock for calculating diluted earnings per share 24,232 23,911 |
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 March 31, (in thousands) 2017 2016 Options to purchase shares of common stock 7 1,019 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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) March 2017 December 31, 2016 Trade name Indefinite $ 5,700 $ 5,700 Customer relationships 11 9,611 9,611 15,311 15,311 Less accumulated amortization (6,934 ) (6,716 ) $ 8,377 $ 8,595 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Summarized Financial Information for Company's Reportable Segments | Summarized financial information for the three months ended March 31, 2017 and 2016 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 Three Months Ended March 31, 2017 Rental revenues $ 33,654 $ 19,746 $ 14,578 $ — $ 67,978 Rental related services revenues 11,588 658 5,689 — 17,935 Sales and other revenues 3,061 4,910 194 759 8,924 Total revenues 48,303 25,314 20,461 759 94,837 Depreciation of rental equipment 5,333 8,091 3,955 — 17,379 Gross profit 22,444 11,393 9,555 278 43,670 Selling and administrative expenses 13,800 5,689 7,267 1,092 27,848 Income (loss) from operations 8,644 5,704 2,288 (814 ) 15,822 Interest (expense) income allocation (1,591 ) (546 ) (738 ) 86 (2,789 ) Income (loss) before provision for income taxes 7,053 5,384 1,550 (728 ) 13,259 Rental equipment acquisitions 7,782 12,021 749 — 20,552 Accounts receivable, net (period end) 53,779 18,603 15,814 4,356 92,552 Rental equipment, at cost (period end) 773,597 248,291 309,131 — 1,331,019 Rental equipment, net book value (period end) 545,953 92,561 218,467 — 856,981 Utilization (period end) 2 76.5 % 62.1 % 53.4 % Average utilization 2 76.8 % 62.2 % 52.3 % 2016 Rental revenues $ 31,155 $ 20,928 $ 14,449 $ — $ 66,532 Rental related services revenues 11,205 784 5,602 — 17,591 Sales and other revenues 2,724 6,272 432 148 9,576 Total revenues 45,084 27,984 20,483 148 93,699 Depreciation of rental equipment 5,126 9,388 4,026 — 18,540 Gross profit 20,653 11,016 8,942 44 40,655 Selling and administrative expenses 12,462 5,797 7,262 876 26,397 Income (loss) from operations 8,191 5,219 1,680 (832 ) 14,258 Interest (expense) income allocation (1,947 ) (730 ) (934 ) 55 (3,556 ) Income (loss) before provision for income taxes 6,244 4,640 746 (777 ) 10,853 Rental equipment acquisitions 11,579 7,729 (18 ) — 19,290 Accounts receivable, net (period end) 50,915 21,393 15,386 4,189 91,883 Rental equipment, at cost (period end) 747,475 260,324 309,823 — 1,317,622 Rental equipment, net book value (period end) 535,308 98,291 233,616 — 867,215 Utilization (period end) 2 75.4 % 59.9 % 51.0 % Average utilization 2 76.1 % 59.6 % 50.3 % 1. Gross Enviroplex sales revenues were $759 and $148 for the three months ended March 31, 2017 and 2016, respectively. There were no inter-segment sales to Mobile Modular in those periods requiring elimination in consolidation. 2. Utilization is calculated each month by dividing the cost of rental equipment on rent by the total cost of rental equipment excluding accessory equipment and for Mobile Modular and Adler Tanks excluding new equipment inventory. The Average Utilization for the period is calculated using the average costs of rental equipment . |
Recent Accounting Pronounceme16
Recent Accounting Pronouncements - Additional Information (Detail) - ASU 2016-09 [Member] - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Excess tax benefits related to share-based payments, reduction to provision for income taxes | $ 18,000 | |
Decreases to both net cash provided by operations and net cash used in financing activities | $ 111,000 |
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 | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share [Abstract] | ||
Weighted-average number of shares of common stock for calculating basic earnings per share | 23,950 | 23,862 |
Effect of potentially dilutive securities from equity-based compensation | 282 | 49 |
Weighted-average number of shares of common stock for calculating diluted earnings per share | 24,232 | 23,911 |
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 | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share [Abstract] | ||
Options to purchase shares of common stock | 7 | 1,019 |
Intangible Assets - Summary of
Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
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 | (6,934) | (6,716) |
Intangible Assets, net | $ 8,377 | $ 8,595 |
Estimated useful life (In years), Customer relationships | 11 years |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Impairment charge | $ 0 | |
Subsequent impairment of the underlying assets | $ 0 | |
Expected amortization expense for the remainder of 2017 | 700,000 | |
Expected amortization expense for 2018 | 900,000 | |
Expected amortization expense for 2019 | 900,000 | |
Expected amortization expense for 2020 | $ 200,000 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) - Segment | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
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% | 5.00% |
Segment Reporting - Summarized
Segment Reporting - Summarized Financial Information for Company's Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | ||
Segment Reporting Information [Line Items] | ||||
Rental revenues | $ 67,978 | $ 66,532 | ||
Rental related services revenues | 17,935 | 17,591 | ||
Sales and other revenues | 8,924 | 9,576 | ||
Total revenues | 94,837 | 93,699 | ||
Depreciation of rental equipment | 17,379 | 18,540 | ||
Gross profit | 43,670 | 40,655 | ||
Selling and administrative expenses | 27,848 | 26,397 | ||
Income (loss) from operations | 15,822 | 14,258 | ||
Interest (expense) income allocation | (2,789) | (3,556) | ||
Income (loss) before provision for income taxes | 13,259 | 10,853 | ||
Rental equipment acquisitions | 20,552 | 19,290 | ||
Accounts receivable, net (period end) | 92,552 | 91,883 | $ 96,877 | |
Rental equipment, at cost (period end) | 1,331,019 | 1,317,622 | 1,324,057 | |
Rental equipment, net book value (period end) | 856,981 | 867,215 | $ 856,371 | |
Mobile Modular [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Rental revenues | 33,654 | 31,155 | ||
Rental related services revenues | 11,588 | 11,205 | ||
Sales and other revenues | 3,061 | 2,724 | ||
Total revenues | 48,303 | 45,084 | ||
Depreciation of rental equipment | 5,333 | 5,126 | ||
Gross profit | 22,444 | 20,653 | ||
Selling and administrative expenses | 13,800 | 12,462 | ||
Income (loss) from operations | 8,644 | 8,191 | ||
Interest (expense) income allocation | (1,591) | (1,947) | ||
Income (loss) before provision for income taxes | 7,053 | 6,244 | ||
Rental equipment acquisitions | 7,782 | 11,579 | ||
Accounts receivable, net (period end) | 53,779 | 50,915 | ||
Rental equipment, at cost (period end) | 773,597 | 747,475 | ||
Rental equipment, net book value (period end) | $ 545,953 | $ 535,308 | ||
Utilization (period end) | [1] | 76.50% | 75.40% | |
Average utilization | [1] | 76.80% | 76.10% | |
TRS-RenTelco [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Rental revenues | $ 19,746 | $ 20,928 | ||
Rental related services revenues | 658 | 784 | ||
Sales and other revenues | 4,910 | 6,272 | ||
Total revenues | 25,314 | 27,984 | ||
Depreciation of rental equipment | 8,091 | 9,388 | ||
Gross profit | 11,393 | 11,016 | ||
Selling and administrative expenses | 5,689 | 5,797 | ||
Income (loss) from operations | 5,704 | 5,219 | ||
Interest (expense) income allocation | (546) | (730) | ||
Income (loss) before provision for income taxes | 5,384 | 4,640 | ||
Rental equipment acquisitions | 12,021 | 7,729 | ||
Accounts receivable, net (period end) | 18,603 | 21,393 | ||
Rental equipment, at cost (period end) | 248,291 | 260,324 | ||
Rental equipment, net book value (period end) | $ 92,561 | $ 98,291 | ||
Utilization (period end) | [1] | 62.10% | 59.90% | |
Average utilization | [1] | 62.20% | 59.60% | |
Adler Tanks [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Rental revenues | $ 14,578 | $ 14,449 | ||
Rental related services revenues | 5,689 | 5,602 | ||
Sales and other revenues | 194 | 432 | ||
Total revenues | 20,461 | 20,483 | ||
Depreciation of rental equipment | 3,955 | 4,026 | ||
Gross profit | 9,555 | 8,942 | ||
Selling and administrative expenses | 7,267 | 7,262 | ||
Income (loss) from operations | 2,288 | 1,680 | ||
Interest (expense) income allocation | (738) | (934) | ||
Income (loss) before provision for income taxes | 1,550 | 746 | ||
Rental equipment acquisitions | 749 | (18) | ||
Accounts receivable, net (period end) | 15,814 | 15,386 | ||
Rental equipment, at cost (period end) | 309,131 | 309,823 | ||
Rental equipment, net book value (period end) | $ 218,467 | $ 233,616 | ||
Utilization (period end) | [1] | 53.40% | 51.00% | |
Average utilization | [1] | 52.30% | 50.30% | |
Enviroplex [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales and other revenues | [2] | $ 759 | $ 148 | |
Total revenues | [2] | 759 | 148 | |
Gross profit | [2] | 278 | 44 | |
Selling and administrative expenses | [2] | 1,092 | 876 | |
Income (loss) from operations | [2] | (814) | (832) | |
Interest (expense) income allocation | [2] | 86 | 55 | |
Income (loss) before provision for income taxes | [2] | (728) | (777) | |
Accounts receivable, net (period end) | [2] | $ 4,356 | $ 4,189 | |
[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 $759 and $148 for the three months ended March 31, 2017 and 2016, respectively. There were no inter-segment sales to Mobile Modular in those periods requiring elimination in consolidation. |
Segment Reporting - Summarize23
Segment Reporting - Summarized Financial Information for Company's Reportable Segments (Parenthetical) (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Segment Reporting Information [Line Items] | |||
Revenues | $ 94,837,000 | $ 93,699,000 | |
Enviroplex [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | [1] | 759,000 | 148,000 |
Mobile Modular [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 48,303,000 | 45,084,000 | |
Operating Segments [Member] | Enviroplex [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 759,000 | 148,000 | |
Inter-segment Eliminations [Member] | Mobile Modular [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales revenues | $ 0 | $ 0 | |
[1] | Gross Enviroplex sales revenues were $759 and $148 for the three months ended March 31, 2017 and 2016, respectively. There were no inter-segment sales to Mobile Modular in those periods requiring elimination in consolidation. |