On July 19, 2021, the Company entered into a definitive agreement to sell its crane business to a wholly-owned subsidiary of The Manitowoc Company, Inc. for $130.0 million in cash, which was subject to adjustment based on actual amounts of net working capital and crane rental fleet net book value delivered at transaction closing. The Company executed the transaction closing on October 1, 2021 subject to customary closing conditions, including regulatory approval under the Hart-Scott-Rodino Act, resulting in proceeds of $135.9 million, which was subject to the finalization of adjustments. During June 2022, closing adjustments of $1.9 million were finalized and recorded as discontinued operations on the consolidated statement of income.

This disposition represents the Company’s strategic shift to a pure-play rental business. In accordance with ASC 360, Property, Plant, and Equipment, the Company ceased recording depreciation and amortization for Crane Sale related rental fleet, property, plant and equipment, and right of use lease assets upon qualifying as held for sale. In accordance with ASC 205-20, the Company determined that discontinued operations presentation was met during the third quarter of fiscal year 2021. As part of the divestiture, we entered into a transition services agreement with the buyer to assist them in the transition of certain functions, including, but not limited to, information technology, accounting and human resources for a period of sixty days up to six months. Aside from these customary transition services, there will be no continuing involvement with the crane business after its disposal.

The Company reported financial results of the crane business within all of our segments: equipment rentals, used equipment sales, new equipment sales, parts sales and service revenues. Additionally, the crane business was included within the equipment rental component 2, used equipment sales, new equipment sales, parts sales and service revenues goodwill reporting units.

As a result of the agreement to sell the Company’s crane business, its results are reported separately as discontinued operations in our consolidated statements of income for all periods presented. As permitted, the Company elected not to adjust the consolidated statements of cash flows to exclude cash flows attributable to discontinued operations. Accordingly, we disclosed the depreciation, capital expenditures and significant operating and investing non-cash items related to the Crane Sale below.

The following tables (amounts in thousands) present the Crane Sale results as reported in income (loss) from discontinued operations within our consolidated statements of income.


	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2022			2021		2022			2021
Revenues:
Equipment rentals	$	—		$	3,426	$	—		$	6,431
Used equipment sales		—			5,537		—			8,449
New equipment sales		—			22,286		—			36,858
Parts sales		—			10,544		—			20,600
Services revenues		—			6,918		—			13,417
Other		—			1,375		—			2,344
Total revenues		—			50,086		—			88,099
Cost of revenues:
Rental depreciation		—			1,824		—			3,720
Rental expense		—			572		—			1,195
Rental other		—			341		—			570
		—			2,737		—			5,485
Used equipment sales		—			4,325		—			6,330
New equipment sales		—			19,945		—			32,988
Parts sales		—			8,003		—			15,597
Services revenues		—			2,211		—			4,293
Other		—			1,320		—			2,270
Total cost of revenues		—			38,541		—			66,963
Gross profit		—			11,545		—			21,136
Selling, general and administrative expenses		—			6,295		—			12,103
Merger and other		132			674		132			1,311
Gain on sales of property and equipment, net		—			49		—			49
Income (loss) from discontinued operations		(132	)		4,625		(132	)		7,771
Other, net		(1,917	)		58		(1,917	)		64
Income (loss) before provision (benefit) for income taxes		(2,049	)		4,683		(2,049	)		7,835
Provision (benefit) for income taxes		(525	)		1,168		(525	)		2,024
Net income (loss) from discontinued operations	$	(1,524	)	$	3,515	$	(1,524	)	$	5,811

Cash flows from discontinued operations was as follows (amounts in thousands):


	Six Months Ended
	June 30,
	2022		2021
Operating activities of discontinued operations:
Depreciation and amortization of property and equipment	$	—	$	1,083
Depreciation of rental equipment		—		3,720
Loss on sale of discontinued operations		1,917		—
Gain from sales of property and equipment, net		—		(49	)
Gain from sales of rental equipment, net		—		(1,641	)

Investing activities of discontinued operations:
Purchases of rental equipment		—		(2,073	)
Proceeds from sales of property and equipment		—		43
Proceeds from sales of rental equipment		—		4,051

On September 17, 2021, the Company sold our Little Rock, Arkansas and Springdale, Arkansas owned-branches to Bramco, Inc. (“Bramco”) for $9.0 million (the “Arkansas Sale”). The Arkansas Sale included the land, building, building improvements, office equipment, furniture and fixtures, and shop equipment for the two branches with a net book value of approximately $3.7 million. We recorded a gain of $5.3 million within sales from property and equipment, net on the consolidated statement of operations for the quarter ended September 30, 2021. As a condition of closing, we relinquished our territory distribution rights with equipment

manufacturers Komatsu, Wirtgen Group and Takeuchi. Our current distribution territory for these two branches includes the entire state of Arkansas, with the exception of five counties in southeast Arkansas (Miller, Lafayette, Columbia, Union and Little River). These five excluded counties are currently served by our Shreveport, Louisiana branch and we have no intention in the foreseeable future of relinquishing the Louisiana distribution territory. The Arkansas Sale did not qualify for discontinued operations as the divestiture does not meet the definition of a component.

The Company purchased a site in Little Rock, Arkansas to operate a rental-focused branch location in the area. The branch opening coincided with the sale to Bramco.