Segment Reporting

3 Months Ended

Mar. 31, 2025

Segment Reporting [Abstract]

Segment Reporting

NOTE 7. SEGMENT REPORTING

FASB guidelines establish annual and interim reporting standards for an enterprise’s operating segments and related disclosures about its products, services, geographic areas and major customers. In accordance with these guidelines, the Company’s four reportable segments are Mobile Modular, Portable Storage, TRS-RenTelco and Enviroplex. The Company's Chief Operating Decision Maker ("CODM") Joe Hanna, Chief Executive Officer, and senior management focus on several key measures to evaluate and assess each segment’s performance, including rental, rental related services and sales revenue growth, gross profit, income from operations and income before provision for income taxes. In addition to the evaluation of the aforementioned key measures of each reportable segment, the CODM and senior management evaluate supplemental information by reportable segment, such as rental equipment acquisitions, fleet utilization, and average utilization, to further assess segment performance and the future allocation of Company resources.

The CODM is the primary individual in control of resource allocation, and the allocation determinations are made in consultation with the Company’s senior management team, of which the CODM is a member. The most significant allocation determinations made by the CODM pertain to purchases of rental equipment and employee headcount. These determinations are generally made as part of the annual budgeting process, with regular reviews occurring throughout the year that can result in allocation changes depending upon performance against budget. On a monthly basis, the CODM considers period end and average rental equipment utilization and budget-to-actual variances to gross profit, income from operations and income before provision for income taxes when making decisions about allocating capital and employee resources to the segments. Excluding interest expense, allocations of revenue and expense not directly associated with one of these segments are generally allocated to Mobile Modular, Portable Storage and TRS-RenTelco, based on their pro-rata share of direct revenues. Interest expense is allocated amongst Mobile Modular, Portable Storage and TRS-RenTelco based on their pro-rata share of average rental equipment at cost, goodwill, 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, 2025 and 2024, for the Company’s reportable segments is shown in the following tables:

(dollar amounts in thousands)	Mobile Modular			Portable Storage			TRS- RenTelco			Enviroplex1			Consolidated
Three Months Ended March 31,
2025
Revenues
Rental revenues	$	78,496		$	16,074		$	25,543		$	—		$	120,113
Rental related services revenues		29,475			3,631			810			—			33,916
Sales		22,490			1,244			7,979			7,213			38,926
Other		1,458			316			687			—			2,461
Total revenues		131,919			21,265			35,019			7,213			195,416
Costs of Revenues
Depreciation of rental equipment		10,554			1,031			9,920			—			21,505
Rental related services		19,740			3,933			640			—			24,313
Other		20,812			1,527			5,313			—			27,652
Costs of sales		15,345			831			4,271			5,063			25,510
Total costs of revenues		66,451			7,322			20,144			5,063			98,980
Gross profit		65,468			13,943			14,875			2,150			96,436
Significant Segment Expenses 3
Wages and benefits		14,110			3,524			2,899			1,196			21,729
Depreciation and amortization		3,531			357			26			102			4,016
Marketing and administrative expenses		4,666			1,640			1,303			590			8,199
Allocated corporate services 4		11,554			1,864			3,146			—			16,564
Other segment items 5		127			170			64			—			361
Total expenses		33,988			7,555			7,438			1,888			50,869
Income from operations		31,480			6,388			7,437			262			45,567
Interest expense (income) allocation		6,505			971			1,277			(595	)		8,158
Foreign currency exchange gain		—			—			(5	)		—			(5	)
Income before provision for income taxes	$	24,975		$	5,417		$	6,165		$	857		$	37,414
Other Selected Information
Rental equipment acquisitions	$	4,400		$	357		$	4,822			—		$	9,579
Accounts receivable, net (period end)	$	159,672		$	10,397		$	22,388		$	16,425		$	208,882
Rental equipment, at cost (period end)	$	1,414,535		$	240,348		$	334,110		—			$	1,988,993
Rental equipment, net book value (period end)	$	1,051,635		$	217,060		$	100,608		—			$	1,369,303
Utilization (period end) 2		74.3	%		61.0	%		64.9	%
Average utilization 2		74.6	%		60.2	%		61.6	%

(dollar amounts in thousands)	Mobile Modular			Portable Storage			TRS- RenTelco			Enviroplex1			Consolidated
Three Months Ended March 31,
2024
Revenues
Rental revenues	$	76,496		$	18,407		$	25,429		$	—		$	120,332
Rental related services revenues		24,133			4,723			724			—			29,580
Sales		25,326			1,212			6,812			1,719			35,069
Other		1,630			418			798			—			2,846
Total revenues		127,585			24,760			33,763			1,719			187,827
Costs of Revenues
Depreciation of rental equipment		9,874			965			11,527			—			22,366
Rental related services		15,780			4,456			550			—			20,786
Other		22,673			1,468			4,869			—			29,010
Costs of sales		17,413			768			2,942			1,274			22,397
Total costs of revenues		65,740			7,657			19,888			1,274			94,559
Gross profit		61,845			17,103			13,875			445			93,268
Significant Segment Expenses 3
Wages and benefits		14,262			3,516			2,695			1,165			21,638
Depreciation and amortization		3,380			442			26			97			3,945
Marketing and administrative expenses		4,718			1,595			1,401			542			8,256
Allocated corporate services 4		11,191			2,122			3,054			—			16,367
Other segment items 5		63			134			61			—			258
Total expenses		33,614			7,809			7,237			1,804			50,464
Other income, net		(6,220	)		(1,319	)		(1,742	)		—			(9,281	)
Income from operations		34,451			10,613			8,380			(1,359	)		52,085
Interest expense (income) allocation		9,799			1,420			2,062			(577	)		12,704
Foreign currency exchange loss		—			—			132			—			132
Income before provision for income taxes	$	24,652		$	9,193		$	6,186		$	(782	)	$	39,249
Reconciliation of Segment Profit (Loss)
Total segment gross profit													$	93,268
Segment operating expenses, net														50,464
Other income, net														(9,281	)
Interest expense allocation														12,704
Foreign currency exchange loss														132
WillScot Mobile Mini transaction costs														9,354
Income before provision for income taxes													$	29,895
Other Selected Information
Rental equipment acquisitions	$	59,263		$	5,128		$	3,393			—		$	67,784
Accounts receivable, net (period end)	$	166,382		$	14,117		$	22,637		$	8,814		$	211,950
Rental equipment, at cost (period end)	$	1,345,919		$	240,517		$	370,641		—			$	1,957,077
Rental equipment, net book value (period end)	$	1,013,965		$	220,811		$	133,766		—			$	1,368,542
Utilization (period end) 2		78.5	%		68.8	%		56.8	%
Average utilization 2		78.7	%		69.8	%		56.5	%

1.Gross Enviroplex sales revenues were $7,213 and $1,719 for the three months ended March 31, 2025 and 2024, respectively. There were no inter-segment sales to Mobile Modular in the three months ended March 31, 2025 and $1,845 inter-segment sales to Mobile Modular for the same period in 2024, which required 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 new equipment inventory and accessory equipment. The average utilization for the period is calculated using the average costs of rental equipment.

3.The Significant Segment Expense categories and amounts align with the segment-level information that is regularly provided to the CODM.

4.Allocated corporate services costs are comprised of expenses incurred by the Company which are not directly incurred by each business segment as a part of their normal operations. These allocated indirect corporate costs primarily include wages and benefits, depreciation of corporate capital assets, information technology, legal, accounting and other administrative expenses.

5.Other segment items for each reportable segment is primarily comprised of credit losses.

No single customer accounted for more than 10% of total revenues for the three months ended March 31, 2025 and 2024. Revenues from foreign country customers accounted for 2% of the Company’s total revenues for the same periods.