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Segment Reporting
 6 Months Ended
Jun. 30, 2013
Segment Reporting [Abstract]  
SEGMENT REPORTING
NOTE 5. SEGMENT REPORTING

The Company’s four reportable segments are (1) its modular building rental division (“Mobile Modular”); (2) its electronic test equipment rental division (“TRS-RenTelco”); (3) its containment solutions for the storage of hazardous and non-hazardous liquids and solids division (“Adler Tanks”); and (4) its classroom manufacturing division 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, 2012. 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 six months ended June 30, 2013 and 2012 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  

Six Months Ended June 30,

                                        
           

2013

                                        

Rental Revenues

   $ 39,288     $ 50,179     $ 34,177     $ —       $ 123,644  

Rental Related Services Revenues

     12,491       1,412       9,603       —         23,506  

Sales and Other Revenues

     6,715       14,200       1,354       6,427       28,696  

Total Revenues

     58,494       65,791       45,134       6,427       175,846  

Depreciation of Rental Equipment

     7,089       19,474       6,665       —         33,228  

Gross Profit

     22,894       30,958       24,557       735       79,144  

Selling and Administrative Expenses

     17,371       12,400       12,097       1,562       43,430  

Income (Loss) from Operations

     5,523       18,558       12,460       (827 )      35,714  

Interest Expense (Income) Allocation

     2,158       1,089       1,213       (100 )      4,360  

Income (Loss) before Provision for Income Taxes

     3,365       17,469       11,247       (727 )      31,354  

Rental Equipment Acquisitions

     21,521       22,655       15,853       —         60,029  

Accounts Receivable, net (period end)

     37,573       22,750       24,139       2,824       87,286  

Rental Equipment, at cost (period end)

     570,352       264,429       269,437       —         1,104,218  

Rental Equipment, net book value (period end)

     397,702       105,869       234,065       —         737,636  

Utilization (period end) 2

     67.6 %      63.3 %      68.7 %                 

Average Utilization 2

     66.7 %      63.7 %     65.5 %                 
           

2012

                                        

Rental Revenues

   $ 39,413     $ 48,267     $ 32,229     $ —       $ 119,909  

Rental Related Services Revenues

     12,200       1,684       7,809       —         21,693  

Sales and Other Revenues

     4,522       11,151       696       4,723       21,092  

Total Revenues

     56,135       61,102       40,734       4,723       162,694  

Depreciation of Rental Equipment

     6,959       18,610       5,504       —         31,073  

Gross Profit

     24,505       28,842       26,004       1,264       80,615  

Selling and Administrative Expenses

     16,779       13,105       10,409       2,231       42,524  

Income (Loss) from Operations

     7,726       15,737       15,595       (967 )      38,091  

Interest Expense (Income) Allocation

     2,294       1,198       1,134       (71 )      4,555  

Income (Loss) before Provision for Income Taxes

     5,432       14,539       14,461       (896 )      33,536  

Rental Equipment Acquisitions

     11,702       29,379       34,041       —         75,122  

Accounts Receivable, net (period end)

     34,762       23,120       20,169       8,351       86,402  

Rental Equipment, at cost (period end)

     547,248       270,747       235,022       —         1,053,017  

Rental Equipment, net book value (period end)

     385,901       112,922       212,095       —         710,918  

Utilization (period end) 2

     65.6 %      65.7 %      67.5 %                 

Average Utilization 2

     66.2 %      65.9 %      73.3 %                 

 

1. Gross Enviroplex sales revenues were $6,430 and $4,723 for the six months ended June 30, 2013 and 2012, respectively. The 2013 period includes inter-segment sales to Mobile Modular of $3 which have been eliminated in consolidation. There were no inter-segment sales to Mobile Modular in the 2012 period, 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 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 six months ended June 30, 2013 and 2012. Revenues from foreign country customers accounted for 8% and 11% of the Company’s total revenues, respectively, for the same periods.