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Segments
 9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
Segments
Note 3: Segments
We have two reportable business segments, Equipment Rental and Sales (“ERS”) and Parts, Tools, and Accessories (“PTA”). ERS provides rental solutions to utilities and contractors serving multiple infrastructure end-markets, including electric transmission and distribution, telecom, rail, lighting and signage. We rent and sell specialized equipment to utilities and utility contractors that build and maintain critical transmission and distribution infrastructure. Utilizing our national platform and rental fleet, we expanded our focus on equipment rental to the telecom, rail, lighting and signage end-markets. The majority of our existing equipment can be used across multiple end-markets and many of our customers operate in these multiple end-markets. We rent and sell a broad range of new and used equipment including bucket trucks, digger derricks, line equipment, cranes, pressure diggers, rail mounted equipment and underground equipment. Our PTA segment offers customers sale and rental solutions for parts, tools, and accessories to complement our specialty equipment line doing business servicing these same end-markets.
Our reportable segments align with the information our chief operating decision maker (“CODM”) receives on a regular basis to evaluate the performance of the business and to allocate resources. The accounting principles applied at the operating segment level in determining gross profit are generally the same as those applied at the consolidated financial statement level. There are no inter-segment revenues, and cost allocations to operating segment cost of revenue are minimal; that is, revenue, cost of equipment and parts sold or rented, depreciation of rental equipment and gross profit are directly attributed to each of the operating segments. The following tables present our financial information by segment:
Three Months Ended September 30,Three Months Ended September 30,
20202019
(in $000s)ERSPTATotalERSPTATotal
Rental revenue(1)
$42,615 $3,510 $46,125 $46,922 $3,181 $50,103 
Sales of rental equipment5,510 — 5,510 3,436 — 3,436 
Sales of new equipment6,048 — 6,048 1,246 — 1,246 
Parts sales and services— 11,577 11,577 — 7,657 7,657 
Total revenues54,173 15,087 69,260 51,604 10,838 62,442 
Cost of revenue23,342 10,820 34,162 17,091 6,393 23,484 
Depreciation of rental equipment18,530 937 19,467 16,636 1,058 17,694 
Gross Profit$12,301 $3,330 $15,631 $17,877 $3,387 $21,264 
Nine Months Ended September 30,Nine Months Ended September 30,
20202019
(in $000s)ERSPTATotalERSPTATotal
Rental revenue(1)
$132,693 $11,410 $144,103 $134,684 $9,187 $143,871 
Sales of rental equipment19,585 — 19,585 15,167 — 15,167 
Sales of new equipment19,043 — 19,043 8,076 — 8,076 
Parts sales and services— 36,753 36,753 — 19,675 19,675 
Total revenues171,321 48,163 219,484 157,927 28,862 186,789 
Cost of revenue72,211 34,622 106,833 55,306 17,853 73,159 
Depreciation of rental equipment56,065 3,210 59,275 48,186 3,183 51,369 
Gross Profit$43,045 $10,331 $53,376 $54,435 $7,826 $62,261 
(1) Amounts for equipment rental revenue of $0.7 million and $1.9 million for the three and nine months ended September 30, 2019, respectively, previously reported in the PTA segment as rental revenue have been reclassified to the ERS segment to align the reportable segment information to the information our CODM began receiving on a regular basis in 2019.
Total assets by segment are not disclosed herein because asset by operating segment data is not reviewed by the CODM to assess performance and allocate resources.
Gross profit is the primary operating result whereby our segments are evaluated for performance and resource allocation. The following table presents a reconciliation of consolidated gross profit to consolidated loss before income taxes:
Three Months Ended September 30,Nine Months Ended September 30,
(in $000s)2020201920202019
Gross profit$15,631 $21,264 $53,376 $62,261 
Selling, general and administrative expenses8,633 9,824 31,269 24,708 
Licensing and titling expenses686 690 2,243 1,926 
Amortization and non-rental depreciation792 745 2,308 2,264 
Transaction expenses110 3,325 1,073 7,394 
Asset impairment— 657 — 657 
Other operating expenses451 434 2,209 1,213 
Other (income) expense(559)2,567 6,245 2,545 
Loss on extinguishment of debt— 4,005 — 4,005 
Interest expense, net15,853 16,533 47,816 46,376 
Loss before income taxes$(10,335)$(17,516)$(39,787)$(28,827)
We are positioned to serve all 50 U.S. states and 13 Canadian provinces and territories using our network of locations in North America. The following tables present revenue by country and total assets by country:
Three Months Ended September 30,Nine Months Ended September 30,
(in $000s)2020201920202019
Revenue:
United States$67,506 $60,115 $213,576 $181,248 
Canada1,754 1,918 4,121 4,599 
Mexico (1)
— 409 1,787 942 
$69,260 $62,442 $219,484 $186,789 
(1) On September 27, 2019, the Company began commencing activities for the closure of its Mexican operations, which is part of the ERS segment. For the three and nine months ended September, 30, 2020 and 2019, operations in Mexico generated a loss before income taxes of $0.8 million and $2.0 million, and $1.9 million and $3.8 million, respectively.
(in $000s)September 30, 2020December 31, 2019
Assets:
United States$763,013 $802,516 
Canada5,983 8,152 
Mexico460 4,616 
$769,456 $815,284