Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 29, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | MGRC | |
Entity Registrant Name | MCGRATH RENTCORP | |
Entity Central Index Key | 0000752714 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 24,236,345 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues | ||
Rental | $ 82,696 | $ 74,261 |
Rental related services | 21,455 | 17,831 |
Rental operations | 104,151 | 92,092 |
Revenues | 17,857 | 12,993 |
Total revenues | 122,008 | 105,085 |
Direct costs of rental operations: | ||
Depreciation of rental equipment | 18,961 | 17,777 |
Rental related services | 16,363 | 13,768 |
Other | 19,733 | 16,269 |
Total direct costs of rental operations | 55,057 | 47,814 |
Costs of sales | 9,946 | 7,101 |
Total costs of revenues | 65,003 | 54,915 |
Gross profit | 57,005 | 50,170 |
Selling and administrative expenses | 29,695 | 28,128 |
Income from operations | 27,310 | 22,042 |
Other income (expense): | ||
Interest expense | (3,108) | (2,992) |
Foreign currency exchange gain (loss) | 49 | (32) |
Income before provision for income taxes | 24,251 | 19,018 |
Provision for income taxes | 5,802 | 4,552 |
Net income | $ 18,449 | $ 14,466 |
Earnings per share: | ||
Basic | $ 0.76 | $ 0.60 |
Diluted | $ 0.75 | $ 0.59 |
Shares used in per share calculation: | ||
Basic | 24,195 | 24,067 |
Diluted | 24,540 | 24,478 |
Cash dividends declared per share | $ 0.375 | $ 0.340 |
Sales [Member] | ||
Revenues | ||
Revenues | $ 16,825 | $ 12,091 |
Other [Member] | ||
Revenues | ||
Revenues | $ 1,032 | $ 902 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income | $ 18,449 | $ 14,466 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment | (34) | (26) |
Tax benefit | 7 | 4 |
Comprehensive income | $ 18,422 | $ 14,444 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash | $ 1,442 | $ 1,508 |
Accounts receivable, net of allowance for doubtful accounts of $1,883 in 2019 and 2018 | 119,403 | 121,016 |
Rental equipment, at cost: | ||
Relocatable modular buildings | 834,883 | 817,375 |
Electronic test equipment | 286,469 | 285,052 |
Liquid and solid containment tanks and boxes | 314,899 | 313,573 |
Rental equipment, gross | 1,436,251 | 1,416,000 |
Less accumulated depreciation | (523,373) | (514,985) |
Rental equipment, net | 912,878 | 901,015 |
Property, plant and equipment, net | 127,736 | 126,899 |
Prepaid expenses and other assets | 43,336 | 31,816 |
Intangible assets, net | 7,030 | 7,254 |
Goodwill | 27,808 | 27,808 |
Total assets | 1,239,633 | 1,217,316 |
Liabilities: | ||
Notes payable | 289,464 | 298,564 |
Accounts payable and accrued liabilities | 102,968 | 90,844 |
Deferred income | 58,187 | 49,709 |
Deferred income taxes, net | 208,371 | 206,664 |
Total liabilities | 658,990 | 645,781 |
Shareholders’ equity: | ||
Common stock, no par value - Authorized 40,000 shares Issued and outstanding - 24,176 shares as of September 30,2018 and 24,052 shares as of December 31, 2017 | 103,638 | 103,801 |
Retained earnings | 477,081 | 467,783 |
Accumulated other comprehensive loss | (76) | (49) |
Total shareholders’ equity | 580,643 | 571,535 |
Total liabilities and shareholders’ equity | $ 1,239,633 | $ 1,217,316 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 1,883 | $ 1,883 |
Common stock, par value | ||
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 24,222,000 | 24,182,000 |
Common Stock, shares outstanding | 24,222,000 | 24,182,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash Flows from Operating Activities: | ||
Net income | $ 18,449 | $ 14,466 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 21,100 | 19,928 |
Impairment of rental assets | 39 | |
Provision for doubtful accounts | 156 | 35 |
Share-based compensation | 1,392 | 864 |
Gain on sale of used rental equipment | (4,615) | (3,848) |
Foreign currency exchange (gain) loss | (49) | 32 |
Amortization of debt issuance costs | 3 | 13 |
Change in: | ||
Accounts receivable | 1,457 | 7,745 |
Prepaid expenses and other assets | (11,520) | (3,303) |
Accounts payable and accrued liabilities | 9,948 | (4,284) |
Deferred income | 8,478 | (717) |
Deferred income taxes | 1,707 | 182 |
Net cash provided by operating activities | 46,506 | 31,152 |
Cash Flows from Investing Activities: | ||
Purchases of rental equipment | (34,132) | (24,168) |
Purchases of property, plant and equipment | (2,753) | (2,667) |
Proceeds from sales of used rental equipment | 9,233 | 7,707 |
Net cash used in investing activities | (27,652) | (19,128) |
Cash Flows from Financing Activities: | ||
Net repayments under bank lines of credit | (9,103) | (2,831) |
Taxes paid related to net share settlement of stock awards | (1,555) | (971) |
Payment of dividends | (8,248) | (6,300) |
Net cash used in financing activities | (18,906) | (10,102) |
Effect of foreign currency exchange rate changes on cash | (14) | 25 |
Net increase (decrease) in cash | (66) | 1,947 |
Cash balance, beginning of period | 1,508 | 2,501 |
Cash balance, end of period | 1,442 | 4,448 |
Supplemental Disclosure of Cash Flow Information: | ||
Interest paid, during the period | 2,828 | 2,537 |
Net income taxes paid, during the period | 710 | 1,572 |
Dividends accrued during the period, not yet paid | 9,088 | 8,237 |
Rental equipment acquisitions, not yet paid | $ 11,004 | $ 6,930 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balance at Dec. 31, 2017 | $ 524,184 | $ 102,947 | $ 421,405 | $ (168) |
Balance, Shares at Dec. 31, 2017 | 24,052,000 | |||
Net income | 14,466 | 14,466 | ||
Share-based compensation | 864 | $ 864 | ||
Common stock issued under stock Plans, net of shares withheld for employee taxes, Shares | 50,000 | |||
Taxes paid related to net share settlement of stock awards | (971) | $ (971) | ||
Dividends accrued of $0.375 and $1.36 per share for three months ended March 31 2019 and 2018 | (8,237) | (8,237) | ||
Other comprehensive loss | (22) | (22) | ||
Balance at Mar. 31, 2018 | 530,284 | $ 102,840 | 427,634 | (190) |
Balance, Shares at Mar. 31, 2018 | 24,102,000 | |||
Balance at Dec. 31, 2018 | $ 571,535 | $ 103,801 | 467,783 | (49) |
Balance, Shares at Dec. 31, 2018 | 24,182,000 | 24,182,000 | ||
Net income | $ 18,449 | 18,449 | ||
Share-based compensation | 1,392 | $ 1,392 | ||
Common stock issued under stock Plans, net of shares withheld for employee taxes, Shares | 40,000 | |||
Taxes paid related to net share settlement of stock awards | (1,555) | $ (1,555) | ||
Dividends accrued of $0.375 and $1.36 per share for three months ended March 31 2019 and 2018 | (9,151) | (9,151) | ||
Other comprehensive loss | (27) | (27) | ||
Balance at Mar. 31, 2019 | $ 580,643 | $ 103,638 | $ 477,081 | $ (76) |
Balance, Shares at Mar. 31, 2019 | 24,222,000 | 24,222,000 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash dividends declared per share | $ 0.375 | $ 0.340 |
Retained Earnings [Member] | ||
Cash dividends declared per share | $ 0.375 | $ 0.34 |
Condensed Consolidated Financia
Condensed Consolidated Financial Information | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 and 2018 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, 2019 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, 2019 for the year ended December 31, 2018 (the “2018 Annual Report”). |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | NOTE 2. REVENUE RECOGNITION The Company’s accounting for revenues is governed by two accounting standards. The majority of the Company’s revenues are considered lease or lease related and are accounted for in accordance with Topic 842, Leases. Revenues determined to be non-lease related are accounted for in accordance with ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The Company accounts for revenues when approval and commitment from both parties have been obtained, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. The Company typically recognizes non-lease related revenues at a point in time because the customer does not simultaneously consume the benefits of the Company’s promised goods and services, or performance obligations, and obtain control when delivery and installation are complete. For contracts that have multiple performance obligations, the transaction price is allocated to each performance obligation in the contract based on the Company’s best estimate of the standalone selling prices of each distinct performance obligation in the contract. The standalone selling price is typically determined based upon the expected cost plus an estimated margin of each performance obligation. The Company generally rents and sells to customers on 30 day payment terms. The Company does not typically offer variable payment terms, or accept non-monetary consideration. Amounts billed and due from the Company’s customers are classified as Accounts receivable on the Company’s consolidated balance sheet. For certain sales of modular buildings, progress payments from the customer are received during the manufacturing of new equipment, or the preparation of used equipment. The advance payments are not considered a significant financing component because the payments are used to meet working capital needs during the contract and to protect the Company from the customer failing to adequately complete their obligations under the contract. These contract liabilities are included in Deferred income on the Company’s consolidated balance sheet and totaled $26.0 million and $15.7 million at March 31, 2019 and December 31, 2018, respectively. Sales revenues totaling $3.4 million were recognized during the three months ended March 31, 2019, which were included in the contract liability balance at December 31, 2018. For certain modular building sales, the customer retains a small portion of the contract price until full completion of the contract, which results in revenue earned in excess of billings. These unbilled contract assets are included in Accounts receivable on the Company’s consolidated balance sheet and totaled $1.3 million and $1.4 million at March 31, 2019 and December 31, 2018, respectively. Lease Revenues Rental revenues from operating leases are recognized on a straight-line basis over the term of the lease for all operating segments. Rental billings for periods extending beyond period end are recorded as deferred income and are recognized in the period earned. Rental related services revenues are primarily associated with relocatable modular building and liquid and solid containment tanks and boxes leases. For modular building leases, rental related services revenues for modifications, delivery, installation, dismantle and return delivery are lease related because the payments are considered minimum lease payments that are an integral part of the negotiated lease agreement with the customer. These revenues are recognized on a straight-line basis over the term of the lease. Certain leases are accounted for as finance leases. For these leases, sales revenue and the related accounts receivable are recognized upon delivery and installation of the equipment and the unearned interest is recognized over the lease term on a basis which results in a constant rate of return on the unrecovered lease investment. Other revenues include interest income on finance leases and rental income on facility leases. Non-Lease Revenues Non-lease revenues are recognized in the period when control of the performance obligation is transferred, in an amount that reflects the consideration the Company expects to be entitled to receive in exchange for those goods or services. For liquid and solid containment solutions, portable storage containers and electronic test equipment, rental related services revenues for delivery and return delivery are considered non-lease revenues. Sales revenues are typically recognized at a point in time, which occurs upon the completion of delivery, installation and acceptance of the equipment by the customer. Accounting for non-lease revenues requires judgment in determining the point in time the customer gains control of the equipment and the appropriate accounting period to recognize revenue. Sales taxes charged to customers are reported on a net basis and are excluded from revenues and expenses. The following table disaggregates the Company’s revenues by lease (within the scope of Topic 842) and non-lease revenues (within the scope of Topic 606) and the underlying service provided for the three months ended March 31, 2019 and 2018: (in thousands) Mobile Modular TRS- RenTelco Adler Tanks Enviroplex Consolidated Three Months Ended March 31, 2019 Leasing $ 53,743 $ 24,680 $ 17,084 $ — $ 95,507 Non-lease: Rental related services 3,304 568 6,081 — 9,953 Sales 8,000 4,979 270 2,805 16,054 Other 45 449 — — 494 Total non-lease 11,349 5,996 6,351 2,805 26,501 Total revenues $ 65,092 $ 30,676 $ 23,435 $ 2,805 $ 122,008 2018 Leasing $ 45,271 $ 22,499 $ 15,783 $ — $ 83,553 Non-lease: Rental related services 3,985 807 5,090 — 9,882 Sales 4,593 4,339 305 2,018 11,255 Other 2 393 — — 395 Total non-lease 8,580 5,539 5,395 2,018 21,532 Total revenues $ 53,851 $ 28,038 $ 21,178 $ 2,018 $ 105,085 Customer returns of rental equipment prior to the end of the rental contract term are typically billed a cancellation fee, which is recorded as rental revenue in the period billed. Sales of new relocatable modular buildings, portable storage containers, electronic test equipment and related accessories and liquid and solid containment tanks and boxes not manufactured by the Company are typically covered by warranties provided by the manufacturer of the products sold. The Company typically provides limited 90-day warranties for certain sales of used rental equipment and one-year warranties on equipment manufactured by Enviroplex. Although the Company’s policy is to provide reserves for warranties when required for specific circumstances, the Company has not found it necessary to establish such reserves to date as warranty costs have not been significant. The Company’s incremental cost of obtaining lease contracts, which consists of salesperson commissions, are deferred and amortized over the initial lease term for modular leases. Incremental costs for obtaining a contract for all other operating segments are expensed in the period incurred because the lease term is typically less than 12 months. |
Implemented Accounting Pronounc
Implemented Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Changes And Error Corrections [Abstract] | |
Implemented Accounting Pronouncements | NOTE 3. IMPLEMENTED ACCOUNTING PRONOUNCEMENTS Lease Accounting Lessee The Company adopted Accounting Standard Update (“ASU”) No. 2016-02, Leases (Subtopic 842-10) effective January 1, 2019. Under the new guidance, lessees are 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 The Company leases real estate for certain of its branch offices and rental equipment storage yards, vehicles and equipment used in its rental operations. The Company determines if an arrangement is a lease at inception. The Company has leases with lease and non-lease components, which are accounted for separately. ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Variable lease payments are excluded from the ROU assets and lease liabilities and are recognized in the period in which the obligation for those payments is incurred, which are not material. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company uses the interest rate stated in the lease as the discount rate. If the interest rate is not stated, the Company uses its incremental borrowing rate based on the information available at lease commencement date in determining the present value of lease payments. Many of the Company’s real estate lease agreements include options to extend the lease, which are not included in the minimum lease terms unless they are reasonably certain to be exercised. These leases include one or more options to renew, with renewal terms that may extend the lease term from one to three years. The amount of payments associated with such options is not material. Short-term leases are leases having a term of twelve months or less and exclude leases with a lease term of one month or less. The Company recognizes short-term leases on a straight-line basis and does not record a related ROU asset or liability for such leases. The adoption of the new guidance resulted in the recording of $10.8 million of ROU assets and operating lease liabilities, which are included in Prepaid expenses and other assets and Accounts payable and accrued liabilities on the Condensed Consolidated Balance Sheet as of March 31, 2019. During the three months ended March 31, 2019, operating lease expense was $1.0 million, which includes short term lease expense of $0.1 million. At March 31, 2019, the weighted-average remaining lease term for operating leases was 4.4 years and the weighted average discount rate was 4.56%. The Company had no sub-lease income during the three months ended March 31, 2019, and did not have any finance leases as of March 31, 2019. Supplemental cash flow information related to leases was as follows: (in thousands) Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 882 Right of use assets obtained in exchange for lease obligations: Operating leases $ 1,084 As of March 31, 2019, maturities of operating lease liabilities were as follows: (in thousands) Year ended December 31, 2019 $ 2,562 2020 2,919 2021 2,254 2022 1,683 2023 1,299 Thereafter 1,204 Total lease payments 11,921 Less imputed interest (1,094 ) $ 10,827 Lessor As a lessor, the Company’s recognition of lease revenue remained consistent with previous guidance. As a result, the adoption of the lease standard did not have an impact on the Company’s current and previously reported results in the Condensed Consolidated Statements of Income. The Company’s equipment rentals for each of its operating segments are governed by agreements that detail the lease terms and conditions. The determination of whether these contracts with customers contain a lease generally does not require significant judgement. The Company accounts for these rentals as operating leases. These leases do not include material amounts of variable payments and the Company has made the accounting policy election to exclude all taxes assessed by a governmental authority. The Company generally does not provide an option for the lessee to purchase the rented equipment at the end of the lease term, thus, does not generate material revenue from sales of equipment under such options. Initial lease terms vary in length based upon customer needs and generally range from one to sixty months. Customers have the option to keep equipment on rent beyond the initial lease term on a month-to month basis based upon their needs. All of the Company’s rental products have long useful lives relative to the typical rental term with the original investment typically recovered in approximately three to five years. The rental products are typically rented for a majority of the time owned and a significant portion of the original investment is recovered when sold from inventory. The Company’s lease agreements do not contain residual value guarantees or restrictive covenants. As of March 31, 2019, maturities of operating lease payments to be received in 2019 and thereafter were as follows: (in thousands) 2019 $ 68,046 2020 31,233 2021 10,180 2022 2,158 2023 595 Thereafter 63 $ 112,275 In the three months ended March 31, 2019, the Company’s lease revenues were $95.5 million, consisting of $94.6 million of operating lease revenues and $0.9 million of finance lease revenues. The Company has entered into finance leases to finance certain equipment sales to customers. The lease agreements have a bargain purchase option at the end of the lease term. For these leases, sales revenue and the related accounts receivable are recognized upon delivery and installation of the equipment and the unearned interest is recognized over the lease term on a basis, which results in a constant rate of return on the unrecovered lease investment. The Company’s finance lease revenues include $0.8 million of sales revenues and $0.1 million of interest income. The minimum lease payments receivable and the net investment are included in Accounts receivable on the Company’s Consolidated Balance Sheet for such leases, which were as follows: (in thousands) March 31, 2019 Gross minimum lease payments receivable $ 2,934 Less – unearned interest (298 ) Net investment in finance lease receivables $ 2,636 As of March 31, 2019, the future minimum lease payments under non-cancelable finance leases to be received in 2019 and thereafter were as follows: (in thousands) Year Ended December 31, 2019 $ 1,738 2020 775 2021 335 2022 86 Total minimum future lease payments $ 2,934 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 4. 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) 2019 2018 Weighted-average number of shares of common stock for calculating basic earnings per share 24,195 24,067 Effect of potentially dilutive securities from equity-based compensation 345 411 Weighted-average number of shares of common stock for calculating diluted earnings per share 24,540 24,478 There were no anti-dilutive securities excluded from the computation of diluted earnings per share in the three months ended March 31, 2019 and 2018. |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | NOTE 5. INTANGIBLE ASSETS Intangible assets consist of the following: (dollar amounts in thousands) Estimated useful life in years March 31, 2019 December 31, 2018 Trade name Indefinite $ 5,871 $ 5,871 Customer relationships 11 9,849 9,849 15,720 15,720 Less accumulated amortization (8,690 ) (8,466 ) $ 7,030 $ 7,254 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 asset’s 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, 2018. 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, 2019 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 2019, and $0.1 million in 2020 through 2025. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | NOTE 6. 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 2018 Annual Report. 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, 2019 and 2018 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, 2019 Rental revenues $ 42,261 $ 23,623 $ 16,812 $ — $ 82,696 Rental related services revenues 14,471 708 6,276 — 21,455 Sales and other revenues 8,360 6,345 347 2,805 17,857 Total revenues 65,092 30,676 23,435 2,805 122,008 Depreciation of rental equipment 5,408 9,520 4,033 — 18,961 Gross profit 30,879 13,667 11,423 1,036 57,005 Selling and administrative expenses 15,370 5,970 7,080 1,275 29,695 Income (loss) from operations 15,509 7,697 4,343 (239 ) 27,310 Interest (expense) income allocation (1,883 ) (678 ) (827 ) 280 (3,108 ) Income (loss) before provision for income taxes 13,626 7,068 3,516 41 24,251 Rental equipment acquisitions 20,938 12,808 1,694 — 35,440 Accounts receivable, net (period end) 71,816 20,925 19,151 7,511 119,403 Rental equipment, at cost (period end) 834,883 286,469 314,899 — 1,436,251 Rental equipment, net book value (period end) 585,248 132,607 195,023 — 912,878 Utilization (period end) 2 78.9 % 66.5 % 59.2 % Average utilization 2 78.8 % 64.3 % 57.3 % 2018 Rental revenues $ 37,027 $ 21,529 $ 15,705 $ — $ 74,261 Rental related services revenues 11,934 807 5,090 — 17,831 Sales and other revenues 4,890 5,702 383 2,018 12,993 Total revenues 53,851 28,038 21,178 2,018 105,085 Depreciation of rental equipment 5,248 8,577 3,952 — 17,777 Gross profit 26,321 12,848 10,396 605 50,170 Selling and administrative expenses 14,012 5,618 7,198 1,300 28,128 Income (loss) from operations 12,309 7,230 3,198 (695 ) 22,042 Interest (expense) income allocation (1,676 ) (683 ) (775 ) 142 (2,992 ) Income (loss) before provision for income taxes 10,633 6,515 2,423 (553 ) 19,018 Rental equipment acquisitions 8,233 15,532 927 — 24,692 Accounts receivable, net (period end) 55,883 19,902 16,490 5,817 98,092 Rental equipment, at cost (period end) 779,839 269,043 310,478 — 1,359,360 Rental equipment, net book value (period end) 544,707 114,799 205,832 — 865,338 Utilization (period end) 2 76.9 % 63.5 % 57.5 % Average utilization 2 77.3 % 62.7 % 57.6 % 1. Gross Enviroplex sales revenues were $2,805 and $2,813 for the three months ended March 31, 2019 and 2018, respectively. There were 795 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, 2019 and 2018. Revenues from foreign country customers accounted for 3% and 4%, respectively, of the Company’s total revenues for the same periods. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disaggregation Of Revenue [Abstract] | |
Summary of Disaggregates the Company's Revenue by Lease and Non Lease | The following table disaggregates the Company’s revenues by lease (within the scope of Topic 842) and non-lease revenues (within the scope of Topic 606) and the underlying service provided for the three months ended March 31, 2019 and 2018: (in thousands) Mobile Modular TRS- RenTelco Adler Tanks Enviroplex Consolidated Three Months Ended March 31, 2019 Leasing $ 53,743 $ 24,680 $ 17,084 $ — $ 95,507 Non-lease: Rental related services 3,304 568 6,081 — 9,953 Sales 8,000 4,979 270 2,805 16,054 Other 45 449 — — 494 Total non-lease 11,349 5,996 6,351 2,805 26,501 Total revenues $ 65,092 $ 30,676 $ 23,435 $ 2,805 $ 122,008 2018 Leasing $ 45,271 $ 22,499 $ 15,783 $ — $ 83,553 Non-lease: Rental related services 3,985 807 5,090 — 9,882 Sales 4,593 4,339 305 2,018 11,255 Other 2 393 — — 395 Total non-lease 8,580 5,539 5,395 2,018 21,532 Total revenues $ 53,851 $ 28,038 $ 21,178 $ 2,018 $ 105,085 |
Implemented Accounting Pronou_2
Implemented Accounting Pronouncements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Changes And Error Corrections [Abstract] | |
Summary of Supplemental Cash flow Information Related to Leases | Supplemental cash flow information related to leases was as follows: (in thousands) Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 882 Right of use assets obtained in exchange for lease obligations: Operating leases $ 1,084 |
Summary of Maturities of Operating Lease Liabilities | As of March 31, 2019, maturities of operating lease liabilities were as follows: (in thousands) Year ended December 31, 2019 $ 2,562 2020 2,919 2021 2,254 2022 1,683 2023 1,299 Thereafter 1,204 Total lease payments 11,921 Less imputed interest (1,094 ) $ 10,827 |
Summary of Maturities of Operating Lease Payments | As of March 31, 2019, maturities of operating lease payments to be received in 2019 and thereafter were as follows: (in thousands) 2019 $ 68,046 2020 31,233 2021 10,180 2022 2,158 2023 595 Thereafter 63 $ 112,275 |
Minimum Lease Payments Receivable and Net Investment Included in Accounts Receivable for Leases | The minimum lease payments receivable and the net investment are included in Accounts receivable on the Company’s Consolidated Balance Sheet for such leases, which were as follows: (in thousands) March 31, 2019 Gross minimum lease payments receivable $ 2,934 Less – unearned interest (298 ) Net investment in finance lease receivables $ 2,636 |
Future Minimum Lease Payments under Non-Cancelable Finance Leases | As of March 31, 2019, the future minimum lease payments under non-cancelable finance leases to be received in 2019 and thereafter were as follows: (in thousands) Year Ended December 31, 2019 $ 1,738 2020 775 2021 335 2022 86 Total minimum future lease payments $ 2,934 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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) 2019 2018 Weighted-average number of shares of common stock for calculating basic earnings per share 24,195 24,067 Effect of potentially dilutive securities from equity-based compensation 345 411 Weighted-average number of shares of common stock for calculating diluted earnings per share 24,540 24,478 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 31, 2019 December 31, 2018 Trade name Indefinite $ 5,871 $ 5,871 Customer relationships 11 9,849 9,849 15,720 15,720 Less accumulated amortization (8,690 ) (8,466 ) $ 7,030 $ 7,254 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Summarized Financial Information for Company's Reportable Segments | Summarized financial information for the three months ended March 31, 2019 and 2018 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, 2019 Rental revenues $ 42,261 $ 23,623 $ 16,812 $ — $ 82,696 Rental related services revenues 14,471 708 6,276 — 21,455 Sales and other revenues 8,360 6,345 347 2,805 17,857 Total revenues 65,092 30,676 23,435 2,805 122,008 Depreciation of rental equipment 5,408 9,520 4,033 — 18,961 Gross profit 30,879 13,667 11,423 1,036 57,005 Selling and administrative expenses 15,370 5,970 7,080 1,275 29,695 Income (loss) from operations 15,509 7,697 4,343 (239 ) 27,310 Interest (expense) income allocation (1,883 ) (678 ) (827 ) 280 (3,108 ) Income (loss) before provision for income taxes 13,626 7,068 3,516 41 24,251 Rental equipment acquisitions 20,938 12,808 1,694 — 35,440 Accounts receivable, net (period end) 71,816 20,925 19,151 7,511 119,403 Rental equipment, at cost (period end) 834,883 286,469 314,899 — 1,436,251 Rental equipment, net book value (period end) 585,248 132,607 195,023 — 912,878 Utilization (period end) 2 78.9 % 66.5 % 59.2 % Average utilization 2 78.8 % 64.3 % 57.3 % 2018 Rental revenues $ 37,027 $ 21,529 $ 15,705 $ — $ 74,261 Rental related services revenues 11,934 807 5,090 — 17,831 Sales and other revenues 4,890 5,702 383 2,018 12,993 Total revenues 53,851 28,038 21,178 2,018 105,085 Depreciation of rental equipment 5,248 8,577 3,952 — 17,777 Gross profit 26,321 12,848 10,396 605 50,170 Selling and administrative expenses 14,012 5,618 7,198 1,300 28,128 Income (loss) from operations 12,309 7,230 3,198 (695 ) 22,042 Interest (expense) income allocation (1,676 ) (683 ) (775 ) 142 (2,992 ) Income (loss) before provision for income taxes 10,633 6,515 2,423 (553 ) 19,018 Rental equipment acquisitions 8,233 15,532 927 — 24,692 Accounts receivable, net (period end) 55,883 19,902 16,490 5,817 98,092 Rental equipment, at cost (period end) 779,839 269,043 310,478 — 1,359,360 Rental equipment, net book value (period end) 544,707 114,799 205,832 — 865,338 Utilization (period end) 2 76.9 % 63.5 % 57.5 % Average utilization 2 77.3 % 62.7 % 57.6 % 1. Gross Enviroplex sales revenues were $2,805 and $2,813 for the three months ended March 31, 2019 and 2018, respectively. There were 795 2. Utilization is calculated each month by dividing the cost of rental equipment on rent by the total cost of rental equipment excluding accessory equipment and for Mobile Modular and Adler Tanks excluding new equipment inventory. The Average utilization for the period is calculated using the average costs of rental equipment . |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | ||
Period for credit risk identified | 30 days | |
Sales revenues totaling | $ 3.4 | |
Period for warranties for rental equipment | 90 days | |
Period for warranties for equipment manufactured | 1 year | |
Deferred Income [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Customer contract liability | $ 26 | $ 15.7 |
Accounts Receivable [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Unbilled contract assets | $ 1.3 | $ 1.4 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Disaggregates the Company's Revenue by Lease and Non Lease (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Disaggregation Of Revenue [Line Items] | |||
Leasing revenues | $ 95,500 | ||
Total non-lease revenues | 17,857 | $ 12,993 | |
Total revenues | 122,008 | 105,085 | |
Leasing [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Leasing revenues | 95,507 | 83,553 | |
Non-lease Rental Related Services [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total non-lease revenues | 9,953 | 9,882 | |
Non-lease Sales [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total non-lease revenues | 16,054 | 11,255 | |
Non-lease Other [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total non-lease revenues | 494 | 395 | |
Non-lease Revenues [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total non-lease revenues | 26,501 | 21,532 | |
Mobile Modular [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total non-lease revenues | 8,360 | 4,890 | |
Total revenues | 65,092 | 53,851 | |
Mobile Modular [Member] | Leasing [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Leasing revenues | 53,743 | 45,271 | |
Mobile Modular [Member] | Non-lease Rental Related Services [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total non-lease revenues | 3,304 | 3,985 | |
Mobile Modular [Member] | Non-lease Sales [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total non-lease revenues | 8,000 | 4,593 | |
Mobile Modular [Member] | Non-lease Other [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total non-lease revenues | 45 | 2 | |
Mobile Modular [Member] | Non-lease Revenues [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total non-lease revenues | 11,349 | 8,580 | |
TRS-RenTelco [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total non-lease revenues | 6,345 | 5,702 | |
Total revenues | 30,676 | 28,038 | |
TRS-RenTelco [Member] | Leasing [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Leasing revenues | 24,680 | 22,499 | |
TRS-RenTelco [Member] | Non-lease Rental Related Services [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total non-lease revenues | 568 | 807 | |
TRS-RenTelco [Member] | Non-lease Sales [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total non-lease revenues | 4,979 | 4,339 | |
TRS-RenTelco [Member] | Non-lease Other [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total non-lease revenues | 449 | 393 | |
TRS-RenTelco [Member] | Non-lease Revenues [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total non-lease revenues | 5,996 | 5,539 | |
Adler Tanks [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total non-lease revenues | 347 | 383 | |
Total revenues | 23,435 | 21,178 | |
Adler Tanks [Member] | Leasing [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Leasing revenues | 17,084 | 15,783 | |
Adler Tanks [Member] | Non-lease Rental Related Services [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total non-lease revenues | 6,081 | 5,090 | |
Adler Tanks [Member] | Non-lease Sales [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total non-lease revenues | 270 | 305 | |
Adler Tanks [Member] | Non-lease Revenues [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total non-lease revenues | 6,351 | 5,395 | |
Enviroplex [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total non-lease revenues | [1] | 2,805 | 2,018 |
Total revenues | [1] | 2,805 | 2,018 |
Enviroplex [Member] | Non-lease Sales [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total non-lease revenues | 2,805 | 2,018 | |
Enviroplex [Member] | Non-lease Revenues [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total non-lease revenues | $ 2,805 | $ 2,018 | |
[1] | Gross Enviroplex sales revenues were $2,805 and $2,813 for the three months ended March 31, 2019 and 2018, respectively. There were $795 inter-segment sales to Mobile Modular in the three months ended March 31, 2018, which required elimination in consolidation. There were no inter-segment sales in the three months ended March 31, 2019. |
Implemented Accounting Pronou_3
Implemented Accounting Pronouncements - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2019USD ($) | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Lessee, operating lease, description | The Company leases real estate for certain of its branch offices and rental equipment storage yards, vehicles and equipment used in its rental operations. The Company determines if an arrangement is a lease at inception. The Company has leases with lease and non-lease components, which are accounted for separately. |
Lessee, operating lease, option to extend | true |
Lessee, operating lease, option to extend, description | These leases include one or more options to renew, with renewal terms that may extend the lease term from one to three years. |
Operating lease, right of use assets | $ 10,800,000 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PrepaidExpenseAndOtherAssets |
Operating lease liabilities | $ 10,827,000 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent |
Operating lease expense | $ 1,000,000 |
Short term lease expense | $ 100,000 |
Weighted-average remaining lease term for operating leases | 4 years 4 months 24 days |
Weighted-average discount rate for operating leases | 4.56% |
Sub-lease income | $ 0 |
Finance lease liability | $ 0 |
Lessor, operating lease, description | The Company’s equipment rentals for each of its operating segments are governed by agreements that detail the lease terms and conditions. The determination of whether these contracts with customers contain a lease generally does not require significant judgement. The Company accounts for these rentals as operating leases. |
Lessor, operating lease, option to extend | true |
Lessor, operating lease, option to extend description | Initial lease terms vary in length based upon customer needs and generally range from one to sixty months. |
Lease revenue | $ 95,500,000 |
Operating lease revenue | 94,600,000 |
Finance lease revenue | 900,000 |
Finance lease revenue, sales revenue | 800,000 |
Finance lease revenue, interest income | $ 100,000 |
Minimum [Member] | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Lessee, operating lease, renewal term | 1 year |
Lessor, operating lease, renewal term | 1 month |
Lessor, operating lease, rental products, useful lives | 3 years |
Maximum [Member] | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Lessee, operating lease, renewal term | 3 years |
Lessor, operating lease, renewal term | 60 months |
Lessor, operating lease, rental products, useful lives | 5 years |
Implemented Accounting Pronou_4
Implemented Accounting Pronouncements - Summary of Supplemental Cash flow Information Related to Leases (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 882 |
Right of use assets obtained in exchange for lease obligations: | |
Operating leases | $ 1,084 |
Implemented Accounting Pronou_5
Implemented Accounting Pronouncements - Summary of Maturities of Operating Lease Liabilities (Detail) $ in Thousands | Mar. 31, 2019USD ($) |
Operating Lease Liabilities Payments Due [Abstract] | |
2019 | $ 2,562 |
2020 | 2,919 |
2021 | 2,254 |
2022 | 1,683 |
2023 | 1,299 |
Thereafter | 1,204 |
Total lease payments | 11,921 |
Less imputed interest | (1,094) |
Operating lease liabilities | $ 10,827 |
Implemented Accounting Pronou_6
Implemented Accounting Pronouncements - Summary of Maturities of Operating Lease Payments (Detail) $ in Thousands | Mar. 31, 2019USD ($) |
Lessor Operating Lease Payments Fiscal Year Maturity [Abstract] | |
2019 | $ 68,046 |
2020 | 31,233 |
2021 | 10,180 |
2022 | 2,158 |
2023 | 595 |
Thereafter | 63 |
Operating lease, payments to be received | $ 112,275 |
Implemented Accounting Pronou_7
Implemented Accounting Pronouncements - Minimum Lease Payments Receivable and Net Investment Included in Accounts Receivable for Leases (Detail) $ in Thousands | Mar. 31, 2019USD ($) |
Minimum lease payments receivable and net investment included in accounts receivable for leases | |
Gross minimum lease payments receivable | $ 2,934 |
Less – unearned interest | (298) |
Net investment in finance lease receivables | $ 2,636 |
Implemented Accounting Pronou_8
Implemented Accounting Pronouncements - Future Minimum Lease Payments under Non-Cancelable Finance Leases (Detail) $ in Thousands | Mar. 31, 2019USD ($) |
Future minimum lease payments under non-cancelable finance leases | |
2019 | $ 1,738 |
2020 | 775 |
2021 | 335 |
2022 | 86 |
Total minimum future lease payments | $ 2,934 |
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, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Weighted-average number of shares of common stock for calculating basic earnings per share | 24,195 | 24,067 |
Effect of potentially dilutive securities from equity-based compensation | 345 | 411 |
Weighted-average number of shares of common stock for calculating diluted earnings per share | 24,540 | 24,478 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive securities excluded from computation of diluted earnings per share | 0 | 0 |
Intangible Assets - Summary of
Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Trade name | $ 5,871 | $ 5,871 |
Customer relationships | 9,849 | 9,849 |
Intangible Assets, gross | 15,720 | 15,720 |
Less accumulated amortization | (8,690) | (8,466) |
Intangible Assets, net | $ 7,030 | $ 7,254 |
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, 2019 | Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Impairment charge | $ 0 | |
Subsequent impairment of the underlying assets | $ 0 | |
Expected annual amortization expense for 2019 | 700,000 | |
Expected annual amortization expense for 2020 | 100,000 | |
Expected annual amortization expense for 2021 | 100,000 | |
Expected annual amortization expense for 2022 | 100,000 | |
Expected annual amortization expense for 2023 | 100,000 | |
Expected annual amortization expense for 2024 | 100,000 | |
Expected annual amortization expense for 2025 | $ 100,000 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2019SegmentCustomer | Mar. 31, 2018Customer | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | Segment | 4 | |
Customer Concentration Risk [Member] | Sales [Member] | ||
Segment Reporting Information [Line Items] | ||
Number of major customer | Customer | 0 | 0 |
Geographic Concentration Risk [Member] | Sales [Member] | Foreign Country Customers [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues from customers | 3.00% | 4.00% |
Segment Reporting - Summarized
Segment Reporting - Summarized Financial Information for Company's Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Segment Reporting Information [Line Items] | ||||||
Rental revenues | $ 82,696 | $ 74,261 | ||||
Rental related services revenues | 21,455 | 17,831 | ||||
Sales and other revenues | 17,857 | 12,993 | ||||
Total revenues | 122,008 | 105,085 | ||||
Depreciation of rental equipment | 18,961 | 17,777 | ||||
Gross profit | 57,005 | 50,170 | ||||
Selling and administrative expenses | 29,695 | 28,128 | ||||
Income from operations | 27,310 | 22,042 | ||||
Interest (expense) income allocation | (3,108) | (2,992) | ||||
Income (loss) before provision for income taxes | 24,251 | 19,018 | ||||
Rental equipment acquisitions | 35,440 | 24,692 | ||||
Accounts receivable, net (period end) | 119,403 | $ 121,016 | $ 98,092 | |||
Rental equipment, at cost (period end) | 1,436,251 | 1,416,000 | 1,359,360 | |||
Rental equipment, net book value (period end) | 912,878 | $ 901,015 | $ 912,878 | 865,338 | ||
Mobile Modular [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Rental revenues | 42,261 | 37,027 | ||||
Rental related services revenues | 14,471 | 11,934 | ||||
Sales and other revenues | 8,360 | 4,890 | ||||
Total revenues | 65,092 | 53,851 | ||||
Depreciation of rental equipment | 5,408 | 5,248 | ||||
Gross profit | 30,879 | 26,321 | ||||
Selling and administrative expenses | 15,370 | 14,012 | ||||
Income from operations | 15,509 | 12,309 | ||||
Interest (expense) income allocation | (1,883) | (1,676) | ||||
Income (loss) before provision for income taxes | 13,626 | 10,633 | ||||
Rental equipment acquisitions | 20,938 | $ 8,233 | ||||
Accounts receivable, net (period end) | 71,816 | 55,883 | ||||
Rental equipment, at cost (period end) | $ 834,883 | 779,839 | ||||
Rental equipment, net book value (period end) | 585,248 | 544,707 | ||||
Utilization (period end) | [1] | 78.90% | 76.90% | |||
Average utilization | [1] | 78.80% | 77.30% | |||
TRS-RenTelco [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Rental revenues | $ 23,623 | $ 21,529 | ||||
Rental related services revenues | 708 | 807 | ||||
Sales and other revenues | 6,345 | 5,702 | ||||
Total revenues | 30,676 | 28,038 | ||||
Depreciation of rental equipment | 9,520 | 8,577 | ||||
Gross profit | 13,667 | 12,848 | ||||
Selling and administrative expenses | 5,970 | 5,618 | ||||
Income from operations | 7,697 | 7,230 | ||||
Interest (expense) income allocation | (678) | (683) | ||||
Income (loss) before provision for income taxes | 7,068 | 6,515 | ||||
Rental equipment acquisitions | 12,808 | $ 15,532 | ||||
Accounts receivable, net (period end) | 20,925 | 19,902 | ||||
Rental equipment, at cost (period end) | $ 286,469 | 269,043 | ||||
Rental equipment, net book value (period end) | 132,607 | 114,799 | ||||
Utilization (period end) | [1] | 66.50% | 63.50% | |||
Average utilization | [1] | 64.30% | 62.70% | |||
Adler Tanks [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Rental revenues | $ 16,812 | $ 15,705 | ||||
Rental related services revenues | 6,276 | 5,090 | ||||
Sales and other revenues | 347 | 383 | ||||
Total revenues | 23,435 | 21,178 | ||||
Depreciation of rental equipment | 4,033 | 3,952 | ||||
Gross profit | 11,423 | 10,396 | ||||
Selling and administrative expenses | 7,080 | 7,198 | ||||
Income from operations | 4,343 | 3,198 | ||||
Interest (expense) income allocation | (827) | (775) | ||||
Income (loss) before provision for income taxes | 3,516 | 2,423 | ||||
Rental equipment acquisitions | 1,694 | $ 927 | ||||
Accounts receivable, net (period end) | 19,151 | 16,490 | ||||
Rental equipment, at cost (period end) | $ 314,899 | 310,478 | ||||
Rental equipment, net book value (period end) | $ 195,023 | 205,832 | ||||
Utilization (period end) | [1] | 59.20% | 57.50% | |||
Average utilization | [1] | 57.30% | 57.60% | |||
Enviroplex [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Sales and other revenues | [2] | $ 2,805 | $ 2,018 | |||
Total revenues | [2] | 2,805 | 2,018 | |||
Gross profit | [2] | 1,036 | 605 | |||
Selling and administrative expenses | [2] | 1,275 | 1,300 | |||
Income from operations | [2] | (239) | (695) | |||
Interest (expense) income allocation | [2] | 280 | 142 | |||
Income (loss) before provision for income taxes | [2] | 41 | $ (553) | |||
Accounts receivable, net (period end) | [2] | $ 7,511 | $ 5,817 | |||
[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 $2,805 and $2,813 for the three months ended March 31, 2019 and 2018, respectively. There were $795 inter-segment sales to Mobile Modular in the three months ended March 31, 2018, which required elimination in consolidation. There were no inter-segment sales in the three months ended March 31, 2019. |
Segment Reporting - Summarize_2
Segment Reporting - Summarized Financial Information for Company's Reportable Segments (Parenthetical) (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Segment Reporting Information [Line Items] | |||
Revenues | $ 122,008,000 | $ 105,085,000 | |
Sales revenues | (17,857,000) | (12,993,000) | |
Sales [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales revenues | (16,825,000) | (12,091,000) | |
Enviroplex [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | [1] | 2,805,000 | 2,018,000 |
Sales revenues | [1] | (2,805,000) | (2,018,000) |
Mobile Modular [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 65,092,000 | 53,851,000 | |
Sales revenues | (8,360,000) | (4,890,000) | |
Operating Segments [Member] | Enviroplex [Member] | Sales [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2,805,000 | 2,813,000 | |
Inter-segment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales revenues | $ 0 | ||
Type of Revenue [Extensible List] | us-gaap:ProductMember | ||
Inter-segment Eliminations [Member] | Mobile Modular [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales revenues | $ 795,000 | ||
Type of Revenue [Extensible List] | us-gaap:ProductMember | ||
[1] | Gross Enviroplex sales revenues were $2,805 and $2,813 for the three months ended March 31, 2019 and 2018, respectively. There were $795 inter-segment sales to Mobile Modular in the three months ended March 31, 2018, which required elimination in consolidation. There were no inter-segment sales in the three months ended March 31, 2019. |