Significant Accounting Policies (Tables)
|
12 Months Ended |
Dec. 31, 2021 |
Accounting Policies [Abstract] |
|
Summary of Revenues by Type and by Applicable Accounting Standard |
The tables below summarize our revenues as presented in our consolidated statements of operations for the years ended December 31, 2021, 2020 and 2019 by revenue type and by the applicable accounting standard (amounts in thousands).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2021 |
|
|
|
Topic 842 |
|
|
Topic 606 |
|
|
Total |
|
Revenues: |
|
|
|
|
|
|
|
|
|
Rental Revenues: |
|
|
|
|
|
|
|
|
|
Owned equipment rentals |
|
$ |
617,831 |
|
|
$ |
354 |
|
|
$ |
618,185 |
|
Re-rent revenue |
|
|
34,819 |
|
|
|
— |
|
|
|
34,819 |
|
Ancillary and other rental revenues: |
|
|
|
|
|
|
|
|
|
Delivery and pick-up |
|
|
— |
|
|
|
40,523 |
|
|
|
40,523 |
|
Other |
|
|
36,173 |
|
|
|
— |
|
|
|
36,173 |
|
Total ancillary rental revenues |
|
|
36,173 |
|
|
|
40,523 |
|
|
|
76,696 |
|
Total equipment rental revenues |
|
|
688,823 |
|
|
|
40,877 |
|
|
|
729,700 |
|
Used equipment sales |
|
|
— |
|
|
|
135,245 |
|
|
|
135,245 |
|
New equipment sales |
|
|
— |
|
|
|
92,677 |
|
|
|
92,677 |
|
Parts sales |
|
|
— |
|
|
|
65,623 |
|
|
|
65,623 |
|
Services revenues |
|
|
— |
|
|
|
33,034 |
|
|
|
33,034 |
|
Other |
|
|
— |
|
|
|
6,518 |
|
|
|
6,518 |
|
Total revenues |
|
$ |
688,823 |
|
|
$ |
373,974 |
|
|
$ |
1,062,797 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2020 |
|
|
|
Topic 842 |
|
|
Topic 606 |
|
|
Total |
|
Revenues: |
|
|
|
|
|
|
|
|
|
Rental Revenues: |
|
|
|
|
|
|
|
|
|
Owned equipment rentals |
|
$ |
557,166 |
|
|
$ |
471 |
|
|
$ |
557,637 |
|
Re-rent revenue |
|
|
23,507 |
|
|
|
— |
|
|
|
23,507 |
|
Ancillary and other rental revenues: |
|
|
|
|
|
|
|
|
|
Delivery and pick-up |
|
|
— |
|
|
|
35,793 |
|
|
|
35,793 |
|
Other |
|
|
27,508 |
|
|
|
— |
|
|
|
27,508 |
|
Total ancillary rental revenues |
|
|
27,508 |
|
|
|
35,793 |
|
|
|
63,301 |
|
Total equipment rental revenues |
|
|
608,181 |
|
|
|
36,264 |
|
|
|
644,445 |
|
Used equipment sales |
|
|
— |
|
|
|
139,769 |
|
|
|
139,769 |
|
New equipment sales |
|
|
— |
|
|
|
113,708 |
|
|
|
113,708 |
|
Parts sales |
|
|
— |
|
|
|
65,881 |
|
|
|
65,881 |
|
Services revenues |
|
|
— |
|
|
|
35,989 |
|
|
|
35,989 |
|
Other |
|
|
— |
|
|
|
7,183 |
|
|
|
7,183 |
|
Total revenues |
|
$ |
608,181 |
|
|
$ |
398,794 |
|
|
$ |
1,006,975 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2019 |
|
|
|
Topic 842 |
|
|
Topic 606 |
|
|
Total |
|
Revenues: |
|
|
|
|
|
|
|
|
|
Rental Revenues: |
|
|
|
|
|
|
|
|
|
Owned equipment rentals |
|
$ |
647,123 |
|
|
$ |
621 |
|
|
$ |
647,744 |
|
Re-rent revenue |
|
|
24,007 |
|
|
|
— |
|
|
|
24,007 |
|
Ancillary and other rental revenues: |
|
|
|
|
|
|
|
|
|
Delivery and pick-up |
|
|
— |
|
|
|
40,049 |
|
|
|
40,049 |
|
Other |
|
|
30,155 |
|
|
|
— |
|
|
|
30,155 |
|
Total ancillary rental revenues |
|
|
30,155 |
|
|
|
40,049 |
|
|
|
70,204 |
|
Total equipment rental revenues |
|
|
701,285 |
|
|
|
40,670 |
|
|
|
741,955 |
|
Used equipment sales |
|
|
— |
|
|
|
122,591 |
|
|
|
122,591 |
|
New equipment sales |
|
|
— |
|
|
|
131,798 |
|
|
|
131,798 |
|
Parts sales |
|
|
— |
|
|
|
77,569 |
|
|
|
77,569 |
|
Services revenues |
|
|
— |
|
|
|
41,521 |
|
|
|
41,521 |
|
Other |
|
|
— |
|
|
|
8,327 |
|
|
|
8,327 |
|
Total revenues |
|
$ |
701,285 |
|
|
$ |
422,476 |
|
|
$ |
1,123,761 |
|
|
Estimated Useful Lives of Property Plant and Equipment |
Generally, we assign the following estimated useful lives to these categories:
|
|
|
Category |
|
Estimated Useful Life |
Transportation equipment |
|
5 years |
Buildings |
|
39 years |
Office equipment |
|
5 years |
Computer equipment |
|
3 years |
Machinery and equipment |
|
7 years |
|
Schedule of Changes in Carrying Amount of Goodwill |
The changes in the carrying amount of goodwill for our reporting units for the year ended December 31, 2020 is as follows (amounts in thousands). There were no changes to the carrying amount of goodwill for the year ended December 31, 2021.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eq. Rental Comp. 1 |
|
|
Eq. Rental Comp. 2 (1) |
|
|
Used Eq. Sales |
|
|
New Eq. Sales |
|
|
Parts Sales |
|
|
Service Revenues |
|
|
Total |
|
Balance at December 31, 2019 |
|
$ |
49,215 |
|
|
$ |
55,981 |
|
|
$ |
8,455 |
|
|
$ |
— |
|
|
$ |
5,747 |
|
|
$ |
— |
|
|
$ |
119,398 |
|
Decreases (2) |
|
|
(239 |
) |
|
|
(317 |
) |
|
|
(8 |
) |
|
|
— |
|
|
|
(33 |
) |
|
|
— |
|
|
|
(597 |
) |
Decreases (3) |
|
|
— |
|
|
|
(55,664 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(55,664 |
) |
Balance at December 31, 2020 |
|
$ |
48,976 |
|
|
$ |
— |
|
|
$ |
8,447 |
|
|
$ |
— |
|
|
$ |
5,714 |
|
|
$ |
— |
|
|
$ |
63,137 |
|
(1)As of October 1, 2021, Equipment Rental Component 2 is no longer a reporting unit, as described above. (2)Decreases are related to an adjustment during the first quarter of 2020 from the final closing settlement of the Cobra Equipment Rentals, LLC 2019 acquisition. See Note 3 for further information. (3)Decrease is related to the goodwill impairment calculated as of March 31, 2020, as described above.
|
Schedule of Gross Carrying Values, Accumulated Amortization and Net Carrying Amounts of Major Classes of Intangible Assets |
The gross carrying values, accumulated amortization and net carrying amounts of our major classes of intangible assets as of December 31, 2021 and 2020 are as follows (dollar amounts in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2021 |
|
|
December 31, 2020 |
|
|
|
Gross |
|
|
Accumulated Amortization |
|
|
Net |
|
|
Gross |
|
|
Accumulated Amortization |
|
|
Net |
|
Customer relationships |
|
$ |
39,500 |
|
|
$ |
14,629 |
|
|
$ |
24,871 |
|
|
$ |
39,500 |
|
|
$ |
10,679 |
|
|
$ |
28,821 |
|
Tradenames |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
200 |
|
|
|
200 |
|
|
|
— |
|
Leasehold interests |
|
|
200 |
|
|
|
80 |
|
|
|
120 |
|
|
|
200 |
|
|
|
60 |
|
|
|
140 |
|
Total |
|
$ |
39,700 |
|
|
$ |
14,709 |
|
|
$ |
24,991 |
|
|
$ |
39,900 |
|
|
$ |
10,939 |
|
|
$ |
28,961 |
|
|
Schedule of Expected Amortization Expense of Intangible Assets with Remaining Carrying Value |
The following table presents the expected amortization expense for each of the next five years ending December 31 and thereafter for those intangible assets with remaining carrying value as of December 31, 2021 (dollar amounts in thousands):
|
|
|
|
|
|
|
Amortization Expense |
|
2022 |
|
$ |
3,970 |
|
2023 |
|
|
3,970 |
|
2024 |
|
|
3,970 |
|
2025 |
|
|
3,970 |
|
2026 |
|
|
3,970 |
|
Thereafter |
|
|
5,141 |
|
|
|
$ |
24,991 |
|
|
Estimated Incremental Borrowing Rates for Similar Types of Borrowing Arrangements |
The carrying amounts and fair values of our other financial instruments subject to fair value disclosures as of December 31, 2021 and 2020 are presented in the table below (amounts in thousands).
|
|
|
|
|
|
|
|
|
|
|
December 31, 2021 |
|
|
|
Carrying Amount |
|
|
Fair Value |
|
Manufacturer flooring plans payable with interest computed at 3.5% (Level 3) |
|
$ |
20,924 |
|
|
$ |
19,533 |
|
Senior unsecured notes due 2028 with interest computed at 3.875% (Level 2) |
|
|
1,239,967 |
|
|
|
1,242,850 |
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2020 |
|
|
|
Carrying Amount |
|
|
Fair Value |
|
Manufacturer flooring plans payable with interest computed at 3.5% (Level 3) |
|
$ |
9,615 |
|
|
$ |
8,976 |
|
Senior unsecured notes due 2028 with interest computed at 3.875% (Level 2) |
|
|
1,238,660 |
|
|
|
1,259,413 |
|
|
Summary of Computation of Basic and Diluted Net Income Per Common Share |
The following table sets forth the computation of basic and diluted net income (loss) per common share for the years ended December 31, (amounts in thousands, except per share amounts):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net income (loss) from continuing operations |
|
$ |
60,564 |
|
|
$ |
(46,396 |
) |
|
$ |
69,190 |
|
Net income from discontinued operations |
|
$ |
41,976 |
|
|
$ |
13,729 |
|
|
$ |
18,021 |
|
Net income (loss) |
|
$ |
102,540 |
|
|
$ |
(32,667 |
) |
|
$ |
87,211 |
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
|
|
36,261 |
|
|
|
36,067 |
|
|
|
35,859 |
|
Effect of dilutive non-vested restricted stock |
|
|
190 |
|
|
|
— |
|
|
|
174 |
|
Diluted |
|
|
36,451 |
|
|
|
36,067 |
|
|
|
36,033 |
|
|
|
|
|
|
|
|
|
|
|
Income (loss) per share: |
|
|
|
|
|
|
|
|
|
Basic: |
|
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
1.67 |
|
|
$ |
(1.29 |
) |
|
$ |
1.93 |
|
Discontinued operations |
|
|
1.16 |
|
|
|
0.38 |
|
|
|
0.50 |
|
Net income (loss) per share |
|
$ |
2.83 |
|
|
$ |
(0.91 |
) |
|
$ |
2.43 |
|
Diluted: |
|
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
1.66 |
|
|
$ |
(1.29 |
) |
|
$ |
1.92 |
|
Discontinued operations |
|
|
1.15 |
|
|
|
0.38 |
|
|
|
0.50 |
|
Net income (loss) per share |
|
$ |
2.81 |
|
|
$ |
(0.91 |
) |
|
$ |
2.42 |
|
|
|
|
|
|
|
|
|
|
|
Common shares excluded from the denominator as anti-dilutive: |
|
|
|
|
|
|
|
|
|
Non-vested restricted stock |
|
|
23 |
|
|
|
147 |
|
|
|
32 |
|
|
Schedule of Non-Vested Stock Activity |
The following table summarizes our non-vested stock activity for the years ended December 31, 2021 and 2020:
|
|
|
|
|
|
|
|
|
|
|
Number of Shares |
|
|
Weighted Average Grant Date Fair Value |
|
Non-vested stock at January 1, 2020 |
|
|
377,740 |
|
|
$ |
29.26 |
|
Granted |
|
|
364,981 |
|
|
$ |
18.21 |
|
Vested |
|
|
(203,638 |
) |
|
$ |
25.65 |
|
Forfeited |
|
|
(14,207 |
) |
|
$ |
28.11 |
|
Non-vested stock at December 31, 2020 |
|
|
524,876 |
|
|
$ |
23.00 |
|
Granted |
|
|
202,687 |
|
|
$ |
33.28 |
|
Vested |
|
|
(186,042 |
) |
|
$ |
26.83 |
|
Forfeited |
|
|
(61,374 |
) |
|
$ |
25.31 |
|
Non-vested stock at December 31, 2021 |
|
|
480,147 |
|
|
$ |
25.56 |
|
|