10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 10-Q

þ	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended September 30, 2013
¨	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from           to

Commission file number: 001-34601

Essex Rental Corp.

(Exact Name of Registrant as Specified in Its Charter)

Delaware	20-5415048
(State of Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)
1110 Lake Cook Road, Suite 220
Buffalo Grove, Illinois	60089
(Address of Principal Executive Offices)	(ZIP Code)

847-215-6500

(Registrant’s Telephone Number, Including Area Code)

None

(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes þ                 No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes þ                 No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one): 

Large accelerated filer ¨	Accelerated filer þ
Non-accelerated filer ¨	Smaller reporting company   ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ¨           No þ

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

24,743,513 shares of common stock, par value $.0001 per share, were outstanding as of the close of business on November 1, 2013.

ESSEX RENTAL CORP.

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION	Page
Item 1. Financial Statements:
Consolidated Balance Sheets as of September 30, 2013 (Unaudited) and December 31, 2012	2
Consolidated Statements of Operations (Unaudited) for the Three and Nine Months Ended September 30, 2013 and 2012	3
Consolidated Statements of Comprehensive Loss (Unaudited) for the Three and Nine Months Ended September 30, 2013 and 2012	4
Consolidated Statements of Cash Flows (Unaudited) for the Nine Months Ended September 30, 2013 and 2012	5
Notes to Consolidated Financial Statements (Unaudited)	7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3. Quantitative and Qualitative Disclosures About Market Risk	31
Item 4. Controls and Procedures	31
PART II. OTHER INFORMATION
Item 1. Legal Proceedings	32
Item 1A. Risk Factors	32
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	32
Item 3. Defaults Upon Senior Securities	32
Item 4. Mine Safety Disclosures	32
Item 5. Other Information	32
Item 6. Exhibits	33
Signatures

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains statements which are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include statements regarding the intent and belief or current expectations of Essex Rental Corp. (“Essex Rental”) and its management team and may be identified by the use of words like "anticipate", "believe", "estimate", "expect", "intend", "may", "plan", "will", "should", "seek", the negative of these terms or other comparable terminology. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those projected in the forward-looking statements. Important factors that could cause actual results to differ materially from Essex Rental’s expectations include, without limitation, the continued ability of Essex Rental to successfully execute its business plan, the possibility of a change in demand for the products and services that Essex Rental provides (through its operating subsidiaries, Essex Crane Rental Corp., Coast Crane Company and Coast Crane Ltd.), intense competition which may require us to lower prices or offer more favorable terms of sale, our reliance on third party suppliers, our indebtedness which could limit our operational and financial flexibility, global economic factors including interest rates, general economic conditions, geopolitical events and regulatory changes, our dependence on our management team and key personnel, as well as other relevant risks detailed in our Annual Report on Form 10-K and subsequent periodic reports filed with the Securities and Exchange Commission and available on the investor relations section of our website, www.essexrentalcorp.com. The factors listed here are not exhaustive. Many of these uncertainties and risks are difficult to predict and beyond management’s control. Forward-looking statements are not guarantees of future performance, results or events. Essex Rental assumes no obligation to update or supplement forward-looking information in this Form 10-Q whether to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results or financial conditions, or otherwise.

1

ESSEX RENTAL CORP. CONSOLIDATED BALANCE SHEETS
	September 30, 2013			December 31, 2012
	(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	3,030,137		$	8,389,321
Accounts receivable, net of allowances for doubtful accounts and credit memos of $2,630,000 and $2,775,000, respectively	13,993,135			14,658,198
Other receivables	2,237,217			2,282,104
Deferred tax assets	3,123,912			3,022,625
Inventory
Retail equipment	3,804,929			1,815,670
Retail spare parts, net	1,591,904			1,386,412
Prepaid expenses and other assets	1,427,489			1,494,751
TOTAL CURRENT ASSETS	29,208,723			33,049,081
Rental equipment, net	292,140,274			306,892,373
Property and equipment, net	5,273,936			6,610,976
Spare parts inventory, net	3,254,460			3,145,129
Identifiable finite lived intangibles, net	1,152,857			1,403,571
Goodwill	1,796,126			1,796,126
Loan acquisition costs, net	6,605,143			1,170,354
TOTAL ASSETS	$	339,431,519		$	354,067,610
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable	$	4,000,827		$	5,342,637
Accrued employee compensation and benefits	1,921,634			1,999,143
Accrued taxes	3,997,851			3,211,400
Accrued interest	1,044,801			1,359,017
Accrued other expenses	976,810			1,358,036
Unearned rental revenue	1,692,382			1,520,701
Customer deposits	179,350			73,795
Term loan - short-term	2,000,000			—
Purchase money security interest debt - short-term	1,009,865			828,610
Promissory notes	5,202,968			5,130,870
Capital lease obligation	—			3,154
TOTAL CURRENT LIABILITIES	22,026,488			20,827,363
LONG-TERM LIABILITIES
Revolving credit facilities	166,814,982			210,592,909
Term loan	37,000,000			—
Purchase money security interest debt	2,180,806			2,147,349
Deferred tax liabilities	42,405,015			46,258,254
TOTAL LONG-TERM LIABILITIES	248,400,803			258,998,512
TOTAL LIABILITIES	270,427,291			279,825,875
Commitments and contingencies
STOCKHOLDERS' EQUITY
Preferred stock, $.0001 par value, Authorized 1,000,000 shares, none issued	—			—
Common stock, $.0001 par value, Authorized 40,000,000 shares; issued and outstanding 24,653,513 shares at September 30, 2013 and 24,555,818 shares at December 31, 2012	2,465			2,456
Paid in capital	125,226,630			124,460,238
Accumulated deficit	(56,228,764		)	(50,230,938		)
Accumulated other comprehensive income, net of tax	3,897			9,979
TOTAL STOCKHOLDERS' EQUITY	69,004,228			74,241,735
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	339,431,519		$	354,067,610

The accompanying notes are an integral part of these financial statements

2

ESSEX RENTAL CORP. CONSOLIDATED STATEMENTS OF OPERATIONS THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012 (Unaudited)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
REVENUES
Equipment rentals	$	11,802,108		$	12,555,822		$	35,446,954		$	33,740,727
Retail equipment sales	3,772,051			1,231,984			8,336,980			3,425,936
Used rental equipment sales	1,264,921			3,117,062			9,922,096			15,787,256
Retail parts sales	1,827,058			2,409,846			5,777,781			7,064,042
Transportation	1,349,316			1,601,592			4,420,306			5,076,221
Equipment repairs and maintenance	2,792,684			3,223,929			9,182,230			9,975,077
TOTAL REVENUES	22,808,138			24,140,235			73,086,347			75,069,259
COST OF REVENUES
Salaries, payroll taxes and benefits	2,672,555			2,651,730			8,173,718			8,357,781
Depreciation	4,652,113			5,102,680			13,980,856			15,488,491
Retail equipment sales	3,250,194			1,087,227			7,058,671			2,914,330
Used rental equipment sales	829,296			2,481,144			7,439,426			13,317,224
Retail parts sales	1,475,017			1,766,785			4,456,188			5,253,436
Transportation	1,399,513			1,526,528			4,340,788			4,561,182
Equipment repairs and maintenance	2,283,224			2,426,689			7,762,412			7,792,362
Yard operating expenses	789,977			737,556			2,332,253			2,293,875
TOTAL COST OF REVENUES	17,351,889			17,780,339			55,544,312			59,978,681
GROSS PROFIT	5,456,249			6,359,896			17,542,035			15,090,578
Selling, general and administrative expenses	5,722,543			6,625,267			18,116,553			20,158,088
Other depreciation and amortization	250,914			321,893			793,241			958,348
LOSS FROM OPERATIONS	(517,208		)	(587,264		)	(1,367,759		)	(6,025,858		)
OTHER INCOME (EXPENSES)
Other income	553,469			30,435			559,058			32,861
Interest expense	(3,075,077		)	(2,875,405		)	(8,575,553		)	(8,658,387		)
Foreign currency exchange gains (losses)	106,094			140,685			(222,375		)	85,605
TOTAL OTHER INCOME (EXPENSES)	(2,415,514		)	(2,704,285		)	(8,238,870		)	(8,539,921		)
LOSS BEFORE INCOME TAXES	(2,932,722		)	(3,291,549		)	(9,606,629		)	(14,565,779		)
BENEFIT FOR INCOME TAXES	(1,030,118		)	(1,231,923		)	(3,608,803		)	(4,917,814		)
NET LOSS	$	(1,902,604	)	$	(2,059,626	)	$	(5,997,826	)	$	(9,647,965	)
Weighted average shares outstanding:
Basic	24,653,513			24,555,818			24,639,667			24,541,462
Diluted	24,653,513			24,555,818			24,639,667			24,541,462
Loss per share:
Basic	$	(0.08	)	$	(0.08	)	$	(0.24	)	$	(0.39	)
Diluted	$	(0.08	)	$	(0.08	)	$	(0.24	)	$	(0.39	)

The accompanying notes are an integral part of these financial statements

3

ESSEX RENTAL CORP. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012 (Unaudited)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Net loss	$	(1,902,604	)	$	(2,059,626	)	$	(5,997,826	)	$	(9,647,965	)
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments	(2,106		)	17,697			(6,082		)	33,233
Change in fair value of interest rate swap, net of tax of $241,397 and $652,826, respectively, for the three and nine months ended September 30, 2012	—			371,276			—			1,004,070
Other comprehensive income (loss)	(2,106		)	388,973			(6,082		)	1,037,303
Comprehensive loss	$	(1,904,710	)	$	(1,670,653	)	$	(6,003,908	)	$	(8,610,662	)

The accompanying notes are an integral part of these financial statements

4

ESSEX RENTAL CORP. CONSOLIDATED STATEMENTS OF CASH FLOWS NINE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012 (Unaudited)
	Nine Months Ended September 30,
	2013			2012
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(5,997,826	)	$	(9,647,965	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization of tangible assets	14,523,382			16,174,843
Amortization of loan acquisition costs and other intangibles	1,595,396			920,451
Amortization of promissory notes discount	72,097			72,097
Gain on sale of rental equipment	(2,482,670		)	(2,470,032		)
Gain on sale of property and equipment	(551,803		)	—
Deferred income taxes	(3,941,542		)	(5,011,286		)
Share based compensation expense	719,544			1,140,426
Change in fair value of interest rate swaps	—			(398,031		)
Changes in operating assets and liabilities:
Accounts receivable, net	1,676,922			(2,790,035		)
Other receivables	44,887			353,085
Prepaid expenses and other assets	67,262			647,137
Retail equipment inventory	(1,989,259		)	85,063
Spare parts inventory	(318,970		)	491,327
Accounts payable and accrued expenses	(1,178,810		)	644,479
Unearned rental revenue	171,681			430,991
Customer deposits	105,555			299,599
Total change in operating assets and liabilities	(1,420,732		)	161,646
NET CASH PROVIDED BY OPERATING ACTIVITIES	2,515,846			942,149
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of rental equipment	(5,510,271		)	(7,713,011		)
Purchases of property and equipment	(691,604		)	(792,047		)
Accounts receivable from rental equipment sales	(1,011,859		)	1,163,000
Proceeds from sale of rental equipment	9,922,096			15,787,256
Proceeds from sale of property and equipment, net	1,751,575			—
NET CASH PROVIDED BY INVESTING ACTIVITIES	4,459,937			8,445,198
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from revolving credit facilities	74,818,162			68,494,929
Payments on revolving credit facilities	(118,596,089		)	(78,262,718		)
Proceeds from term loan	40,000,000			—
Payments on term loan	(1,000,000		)	—
Payments on purchase money security interest debt	(767,104		)	(505,053		)
Payments on capital lease obligation	(3,205		)	(5,769		)
Employer repurchase of shares to satisfy minimum tax withholding	(102,642		)	—
Payments for loan acquisition costs	(6,782,921		)	(191,862		)
NET CASH USED IN FINANCING ACTIVITIES	(12,433,799		)	(10,470,473		)
Effect of exchange rate changes on cash and cash equivalents	98,832			(104,679		)
NET DECREASE IN CASH AND CASH EQUIVALENTS	(5,359,184		)	(1,187,805		)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	8,389,321			9,030,383
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	3,030,137		$	7,842,578

5

ESSEX RENTAL CORP. CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) NINE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012 (Unaudited)
	Nine Months Ended September 30,
	2013		2012
SUPPLEMENTAL SCHEDULE OF NON-CASH
INVESTING / FINANCING ACTIVITIES
Board of Directors fees paid in common stock	$	149,500	$	121,943
Equipment obtained through capital lease	$	51	$	2,619
Equipment purchased directly through short-term debt obligation	$	981,817	$	—
Unrealized gain on designated derivative instruments, net of tax	$	—	$	(1,004,070	)
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for interest and swaps	$	6,682,952	$	7,210,412
Cash paid for income taxes, net	$	27,439	$	42,476

The accompanying notes are an integral part of these financial statements

6

ESSEX RENTAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Business and Principles of Consolidation

The accompanying consolidated financial statements include the accounts of Essex Rental Corp. (“Essex Rental”) and its wholly owned subsidiaries Essex Holdings, LLC ("Holdings"), Essex Crane Rental Corp. ("Essex Crane"), Essex Finance Corp. (“Essex Finance”), CC Acquisition Holding Corp. (“CC Acquisition”), Coast Crane Company, formerly known as CC Bidding Corp. (“Coast Crane”) and Coast Crane Ltd. (“Coast Crane Ltd.") (collectively the "Company"). All intercompany accounts and transactions have been eliminated in consolidation. 

The Company is engaged primarily in renting lattice boom crawler cranes and attachments, tower cranes and attachments, rough terrain cranes, boom trucks and other related heavy lifting machinery and equipment to the construction industry throughout the United States of America, including Hawaii and Alaska, and Canada. The assets are rented for use in building and maintaining power plants, refineries, bridge and road construction, alternative energy, water treatment facilities and other industrial, commercial, residential and infrastructure related projects. The Company is also engaged in servicing and distributing heavy lifting machinery and other construction related equipment and parts.

The accompanying consolidated financial statements of the Company include all adjustments (consisting of normal recurring adjustments) which management considers necessary for the fair presentation of the Company’s operating results, financial position and cash flows as of and for all periods presented. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been omitted from these unaudited financial statements in accordance with applicable rules.

The results of operations for the three and nine months ended September 30, 2013 are not necessarily indicative of the results to be expected for the full year ending December 31, 2013. For further information, please refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. 

2. Significant Accounting Policies

Please refer to Note 2 of the Notes to the Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2012 for a complete description of our significant accounting policies.

Reclassifications

Certain prior year amounts in the consolidated cash flow statements and segment information note have been reclassified to conform to the current year presentation. The reclassifications had no effect on net loss, net cash flows or shareholders' equity.

Use of Estimates

The preparation of these financial statements requires management to make estimates and assumptions that affect certain reported amounts of assets, liabilities, revenues, expenses, contingent assets and liabilities, and the related disclosures.  Accordingly, actual results could materially differ from those estimates.  Significant estimates include the allowance for doubtful accounts and credit memos, spare parts inventory obsolescence reserve, useful lives for rental equipment and property and equipment, deferred income taxes, personal property tax receivable and accrual, loss contingencies and the fair value of interest rate swaps and other financial instruments.

Fair Value of Financial Instruments, Including Derivative Instruments

The valuation of financial instruments requires the Company to make estimates and judgments that affect the fair value of the instruments. The Company, where possible, bases the fair values of its financial instruments, including its derivative instruments, on listed market prices and third party quotes. Where these are not available, the Company bases its estimates on current instruments with similar terms and maturities or on other factors relevant to the financial instruments.

7

ESSEX RENTAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

Segment Reporting

We have determined, in accordance with applicable accounting guidance regarding operating segments that we have three reportable segments. We derive our revenues from three principal business activities: (1) equipment rentals; (2) equipment distribution; and (3) parts and service. These segments are based upon how we allocate resources and assess performance. See Note 12 to the consolidated financial statements regarding our segment information.

Recently Issued and Adopted Accounting Pronouncements

In February 2013, the Financial Accounting Standards Board ("FASB") issued authoritative guidance regarding the reporting of reclassifications out of accumulated other comprehensive income. Under the new guidance, an entity has the option to present either parenthetically on the face of the financial statements or in the notes, significant amounts reclassified from each component of accumulated other comprehensive income and the statement of operations line items affected by the reclassification. The amendment does not change the current requirements for reporting net income or other comprehensive income in the financial statements. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2012. The Company adopted this guidance during the three months ended March 31, 2013 and has disclosed the reclassifications out of other comprehensive income and the affect on the statement of operations line items within the notes to the consolidated financial statements.

In July 2013, the FASB issued authoritative guidance regarding the financial statement presentation of unrecognized tax benefits. Under the new guidance, unrecognized tax benefits, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax benefit is disallowed. In situations where a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction or the tax law of the jurisdiction does not require, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be netted with the deferred tax asset. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The company will adopt this guidance for the fiscal year beginning January 1, 2014. Adoption of this guidance is not expected to have a material impact on the Company's financial results.

3. Intangible Assets

As of September 30, 2013 and December 31, 2012, goodwill related to the acquisition of Coast Crane's assets was approximately $1.8 million. Goodwill represents the excess of the total consideration transferred over the fair value of the identifiable assets acquired, net of liabilities assumed.

The following table presents the gross carrying amount, accumulated amortization and net carrying amount of the Company’s other identifiable finite lived intangible assets at September 30, 2013:

	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Other identifiable intangible assets:
Essex Crane customer relationship	$	784,826	$	(784,826	)	$	—
Essex Crane trademark	804,130		(804,130		)	—
Coast Crane customer relationship	1,500,000		(607,143		)	892,857
Coast Crane trademark	600,000		(340,000		)	260,000
	$	3,688,956	$	(2,536,099	)	$	1,152,857

The following table presents the gross carrying amount, accumulated amortization and net carrying amount of the Company’s other identifiable intangible assets at December 31, 2012:

8

ESSEX RENTAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Other identifiable intangible assets:
Essex Crane customer relationship	$	784,826	$	(784,826	)	$	—
Essex Crane trademark	804,130		(804,130		)	—
Coast Crane customer relationship	1,500,000		(446,429		)	1,053,571
Coast Crane trademark	600,000		(250,000		)	350,000
	$	3,688,956	$	(2,285,385	)	$	1,403,571

The gross carrying amount of the Essex Crane customer relationship intangible was reduced by $0 for the three months ended September 30, 2012 and $64,591 for the nine months ended September 30, 2012 as a result of the recognition of the tax benefit related to excess tax deductible goodwill. The gross carrying amount of the Essex Crane trademark intangible was reduced by $0 for the three months ended September 30, 2012 and $70,191 for the nine months ended September 30, 2012 as a result of the recognition of the tax benefit related to excess tax deductible goodwill. The net carrying amounts of the Essex Crane customer relationship and trademark were reduced to zero as a result of the tax benefit related to excess tax deductible goodwill and amortization during the nine months ended September 30, 2012.

The Company’s amortization expense associated with other intangible assets was $83,571 for each of the three months ended September 30, 2013 and 2012. The Company’s amortization expense associated with other intangible assets was $250,714 and $271,995 for the nine months ended September 30, 2013 and 2012, respectively.

The following table presents the estimated future amortization expense related to intangible assets as of September 30, 2013 for the years ended December 31:

2013	$	83,571
2014	334,286
2015	324,286
2016	214,286
2017	196,428
Total	$	1,152,857

4. Revolving Credit Facilities and Other Debt Obligations

The Company’s revolving credit facilities and other debt obligations consist of the following: 

	Principal Outstanding at				Weighted Average Interest as of	Maturity
	September 30, 2013		December 31, 2012		September 30, 2013	Date Ranges
Essex Crane revolving credit facility	$	148,301,312	$	151,286,537	3.95%	October 2016
Coast Crane revolving credit facility	18,513,670		59,306,372		5.49%	March 2017
Term loan	37,000,000		—		5.25%	June 2014 - March 2017
Term loan - short-term	2,000,000		—		5.25%	within 1 year
Unsecured promissory notes (related party) (1)	5,202,968		5,130,870		11.90%	December 2013
Purchase money security interest debt	2,180,806		2,147,349		4.64%	September 2015-October 2018
Purchase money security interest debt - short-term	1,009,865		828,610		4.64%	within 1 year
Total debt obligations outstanding	$	214,208,621	$	218,699,738

(1) Includes the impact on interest expense from the accretion of the discount related to the detachable warrants issued with the debt. See "Unsecured Promissory Notes" discussion within this footnote for further discussion.

9

ESSEX RENTAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

Essex Crane Revolving Credit Facility

In conjunction with the acquisition of Holdings on October 31, 2008, Essex Crane amended its senior secured revolving line of credit facility (“Essex Crane Revolving Credit Facility”), which permitted it to borrow up to $190.0 million with a $20.0 million aggregate sublimit for letters of credit. Essex Crane may borrow up to an amount equal to the sum of 85% of eligible net receivables and 75% of the net orderly liquidation value of eligible rental equipment. The Essex Crane Revolving Credit Facility is collateralized by a first priority security interest in substantially all of Essex Crane’s assets.

On March 15, 2013, the Essex Crane Revolving Credit Facility was amended and restated to extend the maturity to October 31, 2016. The amendment reduced the maximum amount Essex Crane is able to borrow to $175.0 million. The amendment also provided for increases in the applicable prime rate margin, Euro-dollar LIBOR margin and unused line commitment fee to 1.75%, 3.75% and 0.375%, respectively. Under the amendment, the springing covenant threshold is eliminated and, instead, Essex Crane is required to have availability in excess of 10% of the outstanding commitment and is subject to a fixed charge coverage ratio of 1.10 to 1.00. Further, under the amendment, the aggregate commitment will be reduced by: (i) on an individual transaction basis, 100% of the net cash proceeds from the sales of certain assets and (ii) on an annual basis commencing in 2014, 60% of free cash flow, other than net cash proceeds from certain asset sales, as defined within the amended and restated revolving credit facility. In addition, the maximum commitment may not exceed $165.0 million, $150.0 million and $130.0 million beginning on March 31, 2014, March 31, 2015 and February 28, 2016, respectively. The amendment also provides for an annual limit on certain capital expenditures of $2.0 million and limits the ability of Essex Crane to make distributions to affiliates. All other terms of the October 31, 2008 amendment remained in effect following such amendment.

Borrowings under the Essex Crane Revolving Credit Facility, as amended, accrue interest at the borrower’s option of either (a) the bank’s prime rate (3.25% at September 30, 2013) plus an applicable margin or (b) a Euro-dollar rate based on the rate the bank offers deposits of U.S. Dollars in the London interbank market (“LIBOR”) (0.18% at September 30, 2013) plus an applicable margin. Essex Crane is also required to pay a monthly commitment fee with respect to the undrawn commitments under the Essex Crane Revolving Credit Facility. At September 30, 2013, the applicable prime rate margin, Euro-dollar LIBOR margin, and unused line commitment fee were 1.75%, 3.75% and 0.375%, respectively. At December 31, 2012 (prior to the amendment described above), the applicable prime rate margin, Euro-dollar LIBOR margin, and unused line commitment fee were 0.25%, 2.25% and 0.25%, respectively.

The maximum amount that could be borrowed under the Essex Crane Revolving Credit Facility, net of letters of credit, interest rate swaps and other reserves was approximately $170.5 million and $185.8 million as of September 30, 2013 and December 31, 2012, respectively. Essex Crane’s available borrowing under its revolving credit facility was approximately $22.1 million and $34.5 million as of September 30, 2013 and December 31, 2012, respectively. As of September 30, 2013, there was $10.1 million of available formulated collateral in excess of the maximum borrowing amount of $170.5 million Although the Essex Crane Revolving Credit Facility limits Essex Crane’s ability to incur additional indebtedness, Essex Crane is permitted to incur certain additional indebtedness, including secured purchase money indebtedness of up to $1.5 million outstanding at any time, subject to certain conditions set forth in the Essex Crane Revolving Credit Facility.

As of September 30, 2013 and for the three and nine months then ended, Essex Crane was in compliance with the covenants and other provisions set forth in the Essex Crane Revolving Credit Facility, as amended.  Any failure to be in compliance with any material provision or covenant of these agreements could have a material adverse effect on the Company’s liquidity and operations.

Coast Crane Revolving Credit Facility

On November 24, 2010, Coast Crane entered into a new revolving credit facility in conjunction with the acquisition of Coast Crane's assets (the “Coast Crane Revolving Credit Facility”).  The Coast Crane Revolving Credit Facility provided for a revolving loan and letter of credit facility in the maximum aggregate principal amount of $75.0 million with a $2.0 million aggregate principal sublimit for letters of credit.   Coast Crane’s ability to borrow under the Coast Crane Revolving Credit Facility is subject to, among other things, a borrowing base calculated based on  the sum of (a) 85% of eligible accounts, (b) the lesser of 50% of eligible spare parts inventory and $5.0 million, (c) the lesser of 95% of the lesser of (x) the net orderly liquidation value and (y) the invoice cost, of eligible new equipment inventory and $15.0 million and (d) 85% of the net orderly liquidation value of eligible other equipment, less reserves established by the lenders and the liquidity reserve.

On November 14, 2011 the Coast Crane Revolving Credit Facility was amended and restated to include Coast Crane Ltd. as a signatory to the credit facility. The amendment provided that equipment owned by Coast Crane located in Canada may be included

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(Unaudited)

in the borrowing base calculation, which was previously prohibited. As amended, the Coast Crane Revolving Credit Facility agreement is collateralized by a first priority security interest in substantially all of Coast Crane’s and Coast Crane Ltd.’s assets.

Proceeds of the first borrowing under the amended Coast Crane Revolving Credit Facility in the amount of $1.5 million were used to pay off the remaining balance on the Coast Crane Ltd.'s revolving credit facility at the time of its termination in November 2011.

On May 7, 2012, the Coast Crane Revolving Credit Facility was amended to provide certain limitations on net capital expenditures and a $3.7 million “first amendment reserve” (as defined in the Coast Crane Revolving Credit Facility). The amendment also provides for a modified fixed charge coverage ratio of 1.20 to 1.00 as well as an obligation of Essex to contribute, or cause to be contributed, to Coast Crane up to $2.5 million to the extent that EBITDA for Coast Crane for the year ending December 31, 2012 was less than $6.0 million. Coast Crane EBITDA for the year ended December 31, 2012 exceeded the $6.0 million threshold and no contribution from Essex was required. The amendment also reduced the amount of certain additional indebtedness, including secured purchase money indebtedness, that Coast Crane may incur to $7.0 million for the year ending December 31, 2012 and $10.0 million thereafter. All other terms of the November 14, 2011 amendment and restatement remained in effect following such amendment.

A definitional interpretation resulted in Coast Crane's lenders determining that the springing fixed charge coverage ratio of 1.20 to 1.00 (which under the Coast Crane Revolving Credit Facility was triggered if Coast Crane's borrowing availability fell below $8.0 million) was triggered notwithstanding that Coast Crane and Coast Crane Ltd. had combined excess availability of $9.5 million, $8.4 million and $8.5 million as of January 31, 2012, February 29, 2012 and March 31, 2012, respectively. The modified fixed charge coverage ratio included in the May 7, 2012 amendment replaced the springing trailing twelve month fixed charge coverage ratio. The May 7, 2012 amendment also addressed and waived Coast Crane’s non-compliance (which existed as of March 31, 2012) with certain delivery and reporting requirements contained in the Coast Crane Revolving Credit Facility.

On March 12, 2013, the Coast Crane Revolving Credit Facility was amended and restated to extend the maturity date to March 12, 2017. The amendment also provides for a $40.0 million term loan and reduces the aggregate maximum principal amount of the revolving loan and letter of credit facility by a corresponding amount to $35.0 million. In addition, the amendment provides for scheduled quarterly term loan payments to reduce the term loan principal outstanding by $0.5 million beginning on June 30, 2013. The amounts borrowed under the term loan which are repaid or prepaid may not be reborrowed. All other terms of the May 7, 2012 amendment and restatement remained in effect following such amendment.

Interest accrues on Coast Crane's outstanding revolving loans and term loan under the revolving credit facility at either a per annum rate equal to (a) LIBOR plus 3.75%, with a 1.50% LIBOR floor or (b) the Base rate plus 2.75%, at Coast Crane’s election. Coast Crane will be obligated to pay a letter of credit fee on the outstanding letter of credit accommodations based on a per annum rate of 3.75%. Interest on the revolving loans and fees on the letter of credit accommodations is payable monthly in arrears. Coast Crane is also obligated to pay an unused line fee on the amount by which the maximum credit under the Coast Crane Revolving Credit Facility exceeds the aggregate amount of revolving loans and letter of credit accommodations based on a per annum rate of 0.50%. At September 30, 2013, the applicable LIBOR rate, Base rate, and unused line commitment fee were 0.25%, 3.25% and 0.50%, respectively. At December 31, 2012, the applicable LIBOR rate, Base rate, and unused line commitment fee were 0.31%, 3.25% and 0.50%, respectively.

The maximum amount that could be borrowed under the revolving loans under the Coast Crane Revolving Credit Facility was approximately $35.0 million and $66.2 million as of September 30, 2013 and December 31, 2012, respectively. Coast Crane’s available borrowing under the Coast Crane Revolving Credit Facility was approximately $8.3 million and $6.9 million, respectively, after certain lender reserves of $8.2 million and $8.8 million as of September 30, 2013 and December 31, 2012, respectively. As of September 30, 2013 and December 31, 2012, there was approximately $0.8 million and $0.2 million, respectively, of available formulated collateral in excess of the maximum borrowing amount of $75.0 million. Although the Coast Crane Revolving Credit Facility limits Coast Crane’s and Coast Crane Ltd.’s ability to incur additional indebtedness, Coast Crane and Coast Crane Ltd. are permitted to incur certain additional indebtedness, including secured purchase money indebtedness, subject to certain conditions set forth in the Coast Crane Revolving Credit Facility.

As of September 30, 2013, the outstanding balance on the term loan portion of the Coast Crane Revolving Credit Facility was $39.0 million with $2.0 million of the outstanding balance classified as a current liability as a result of the scheduled quarterly term loan payments of $0.5 million that began on June 30, 2013.

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(Unaudited)

Coast Crane is currently in compliance with the covenants and other provisions set forth in the Coast Crane Revolving Credit Facility, as amended.  Any failure to be in compliance with any material provision or covenant of these agreements could have a material adverse effect on the Company’s liquidity and operations.

Unsecured Promissory Notes

In November 2010, the Company entered into an agreement with the holders of certain Coast Crane indebtedness pursuant to which such holders agreed, in consideration of the assumption of such indebtedness by the Company, to exchange such indebtedness for one or more promissory notes issued by the Company in the aggregate principal amount of $5.2 million. As additional consideration under the agreement, the Company agreed to issue 90,000 warrants to the holders of such indebtedness entitling the holder thereof to purchase up to 90,000 shares of Essex Rental common stock at an exercise price of $0.01 per share, and to reimburse such holders for certain legal fees incurred in connection with the transaction. These warrants were exercised in full on October 24, 2013.

In accordance with accounting guidance related to debt issued with conversion or other options, the fair value of the detachable warrants of $296,400 is recorded as a discount to the principal balance outstanding with an offset to additional paid-in capital on the consolidated statements of stockholders’ equity and will be amortized on a straight-line basis over the three years life of the notes as additional interest expense on the consolidated statement of operations, which is not materially different than the effective interest method. The unamortized balance of this discount was $24,032 and $96,130 as of September 30, 2013 and December 31, 2012, respectively.

Interest accrues on the outstanding promissory notes at a per annum rate of 10% and is payable annually in arrears.

Purchase Money Security Interest Debt

As of September 30, 2013, the Company's purchase money security interest debt consisted of the financing of eleven pieces of equipment. Ten of these debt obligations accrue interest at rates that range from LIBOR plus 3.25% to LIBOR plus 5.38% per annum with interest payable in arrears. One of the debt obligations accrues interest at a rate of 8.29%. The obligations are secured by the equipment purchased and have maturity dates that range from September 2015 to October 2018. As these loans are amortizing, approximately $1.0 million of the total $3.2 million in principal payments is due prior to September 30, 2014 and as such, this amount is classified as a current liability in the accompanying consolidated balance sheets as of September 30, 2013.

As of December 31, 2012, the purchase money security interest debt consisted of the financing of nine pieces of equipment with an outstanding balance of approximately $3.0 million. The interest rates at December 31, 2012 ranged from LIBOR plus 3.25% to LIBOR plus 5.38%. 

As described above, Essex Crane and Coast Crane (including Coast Crane Ltd.) are permitted to incur up to $1.5 million and $10.0 million, respectively, of secured purchase money indebtedness under the terms of, and subject to certain conditions set forth in, the Essex Crane Revolving Credit Facility and Coast Crane Revolving Credit Facility, respectively.

5. Derivatives and Hedging Activities – Interest Rate Swap Agreements

Risk Management Objective of Using Derivatives

The Company is exposed to certain risks arising from both its business operations and economic conditions.  The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates.  The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s investments and borrowings.

Cash Flow Hedges of Interest Rate Risk

The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish these objectives, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. During the three and nine months ended September 30, 2012, the Company had one and four interest

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(Unaudited)

rate swaps outstanding, respectively, which involved the receipt of variable-rate amounts from counterparties in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amounts.

Essex Crane Interest Rate Swap

In November 2008, Essex Crane entered into an interest rate swap agreement with the lead lender of the Essex Crane Revolving Credit Facility to hedge its exposure to interest rate fluctuations.  The swap agreement had a notional principal amount of $100.0 million and matured in November 2012. Under the agreement, the Company paid a 2.71% fixed interest rate plus the applicable margin under the revolving credit facility (or a total interest rate of 4.96%). This interest rate swap was designated as a cash flow hedge.

The swap agreement established a fixed rate of interest for the Company and requires the Company or the bank to pay a settlement amount depending upon the difference between the 30 day floating LIBOR rate and the swap fixed rate of 2.71%.  The differential to be paid or received under the swap agreement has been accrued and paid as interest rates changed and such amounts were included in interest expense for the respective period.  Interest payment dates for the revolving loan were dependent upon the interest rate options selected by the Company.  Interest rates on the revolving credit facility were determined based on Wells Fargo’s prime rate or LIBOR rate, plus a margin depending on certain criteria in the agreement.  

The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. There was no hedge ineffectiveness recognized during the three and nine months ended September 30, 2012.

For the three and nine months ended September 30, 2012, the change in net unrealized loss on the derivative designated as a cash flow hedge reported as a component of other accumulated comprehensive income was a decrease of $0.6 million ($0.4 million net of tax) and a decrease of $1.7 million ($1.0 million net of tax), respectively. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt.  

Coast Crane Interest Rate Swaps

The Company assumed three interest rate swaps in conjunction with the Coast Acquisition. The assumed interest rate swaps had a notional amount of $7.0 million each and expired on May 18, 2012. Under the agreements, the Company paid fixed interest of 5.62% and received an interest rate based on three-month LIBOR. The Company did not contemporaneously document the hedge designation on the date of assumption in order to qualify for hedge accounting treatment due to economic reasons and the projected inherent hedge ineffectiveness.  The changes in fair values of the assumed swaps for the three and nine months ended September 30, 2012 was an unrealized gain of approximately $0 and $0.4 million and was reported as a component of interest expense in the consolidated statement of operations.

Essex Rental Corp. Summary

The Company’s consolidated weighted average interest rate of total debt outstanding, including the impact of the interest rate swaps was 4.52% and 3.49% at September 30, 2013 and December 31, 2012, respectively. The impact of the interest rate swaps resulted in an increase in interest expense of approximately $0.6 million for the three months ended September 30, 2012. The impact of the interest rate swaps resulted in an increase in interest expense of approximately $1.9 million for the nine months ended September 30, 2012.

The table below presents the effect of the Company’s derivative financial instruments on the consolidated statement of operations for the nine months ended September 30, 2013 and 2012.  These amounts are presented as other comprehensive income (loss) (“OCI”).

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(Unaudited)

Derivatives in Cash Flow Hedging Relationships	Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion)			Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)			Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
For the Nine Months Ended September 30, 2013
Interest Rate Swap	$	—		Interest expense	$	—		Other income / (expense)	$	—
For the Nine Months Ended September 30, 2012
Interest Rate Swap	$	(219,421	)	Interest expense	$	(1,876,317	)	Other income / (expense)	$	—

Credit-risk-related Contingent Features

Essex Crane had an agreement with its derivative counterparty that contains a provision where if it defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then it could also be declared in default on their derivative obligations.

6. Fair Value

The FASB issued a statement on Fair Value Measurements which, among other things, defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis and clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the standard establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

• Level 1 - Observable inputs such as quoted prices in active markets:

• Level 2- Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

• Level 3 - Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

The fair value of the Company’s total debt obligations was approximately $216.8 million and $217.2 million as of September 30, 2013 and December 31, 2012, respectively, calculated using a discounted cash flows approach at a market rate of interest. The inputs used in the calculation are classified within Level 2 of the fair value hierarchy.

The fair values of the Company’s financial instruments, including cash and cash equivalents, approximate their carrying values. The Company bases its fair values on listed market prices or third party quotes when available. If not available, then the Company bases its estimates on instruments with similar terms and maturities. 

7. Accumulated Other Comprehensive Income Reclassifications

The following table presents the Company's changes in accumulated other comprehensive income by component net of tax for the three months ended September 30, 2013:

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

	Gains and Losses on Designated Cash Flow Hedge (1)		Foreign Currency Translation Adjustments (1)			Total (1)
Beginning balance	$	—	$	6,003		$	6,003
Other comprehensive income (loss) before reclassifications	—		(2,106		)	(2,106		)
Amounts reclassified from accumulated other comprehensive income	—		—			—
Net current period other comprehensive income (loss)	—		(2,106		)	(2,106		)
Ending balance	$	—	$	3,897		$	3,897

(1) Amounts in parenthesis indicate debits.

The following table presents the Company's changes in accumulated other comprehensive income by component net of tax for the nine months ended September 30, 2013:

	Gains and Losses on Designated Cash Flow Hedge (1)		Foreign Currency Translation Adjustments (1)			Total (1)
Beginning balance	$	—	$	9,979		9,979
Other comprehensive income (loss) before reclassifications	—		(6,082		)	(6,082	)
Amounts reclassified from accumulated other comprehensive income	—		—			—
Net current period other comprehensive income (loss)	—		(6,082		)	(6,082	)
Ending balance	$	—	$	3,897		3,897

(1) Amounts in parenthesis indicate debits.

The following table presents the Company's changes in accumulated other comprehensive income by component net of tax for the three months ended September 30, 2012:

	Gains and Losses on Designated Cash Flow Hedge (1)			Foreign Currency Translation Adjustments (1)		Total (1)
Beginning balance	$	(627,438	)	$	4,918	$	(622,520	)
Other comprehensive income (loss) before reclassifications	(11,977		)	17,697		5,720
Amounts reclassified from accumulated other comprehensive income	383,253			—		383,253
Net current period other comprehensive income (loss)	371,276			17,697		388,973
Ending balance	$	(256,162	)	$	22,615	$	(233,547	)

(1) Amounts in parenthesis indicate debits.

The following table presents the Company's changes in accumulated other comprehensive income by component net of tax for the nine months ended September 30, 2012:

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

	Gains and Losses on Designated Cash Flow Hedge (1)			Foreign Currency Translation Adjustments (1)			Total (1)
Beginning balance	$	(1,260,232	)	$	(10,618	)	$	(1,270,850	)
Other comprehensive income (loss) before reclassifications	(134,188		)	33,233			(100,955		)
Amounts reclassified from accumulated other comprehensive income	1,138,258			—			1,138,258
Net current period other comprehensive income (loss)	1,004,070			33,233			1,037,303
Ending balance	$	(256,162	)	$	22,615		$	(233,547	)

(1) Amounts in parenthesis indicate debits.

The following table presents the impact of the reclassifications from accumulated other comprehensive income on the consolidated statement of operations for the three months ended September 30, 2012:

	Amount Reclassified from Accumulated Other Comprehensive Income			Affected Line Item in the Consolidated Statement of Operations
Losses on designated cash flow hedge
Interest rate swap	$	(632,437	)	Interest Expense
Tax benefit	249,184			Benefit for Income Taxes
Effect on net loss	$	(383,253	)	Net Loss

(1) Amounts in parenthesis indicate debits.

The following table presents the impact of the reclassifications from accumulated other comprehensive income on the consolidated statement of operations for the nine months ended September 30, 2012:

	Amount Reclassified from Accumulated Other Comprehensive Income			Affected Line Item in the Consolidated Statement of Operations
Losses on designated cash flow hedge
Interest rate swap	$	(1,876,317	)	Interest Expense
Tax benefit	738,059			Benefit for Income Taxes
Effect on net loss	$	(1,138,258	)	Net Loss

8. Earnings per Share and Comprehensive Income

The following tables set forth the computation of basic and diluted earnings per share:

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(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Net loss	$	(1,902,604	)	$	(2,059,626	)	$	(5,997,826	)	$	(9,647,965	)
Weighted average shares outstanding:
Basic	24,653,513			24,555,818			24,639,667			24,541,462
Effect of dilutive securities:
Warrants	—			—			—			—
Options	—			—			—			—
Diluted	24,653,513			24,555,818			24,639,667			24,541,462
Basic earnings (loss) per share	$	(0.08	)	$	(0.08	)	$	(0.24	)	$	(0.39	)
Diluted earnings (loss) per share	$	(0.08	)	$	(0.08	)	$	(0.24	)	$	(0.39	)

Basic earnings per share ("EPS") is computed by dividing net income by the weighted average number of common shares outstanding during the period. Included in the weighted average number of shares outstanding for the three and nine months ended September 30, 2013 are 493,670 weighted average shares of common stock for the effective conversion of the retained interest in Holdings into common stock of the Company. Included in weighted average number of shares outstanding for the three and nine months ended September 30, 2012 are 632,911 weighted average shares of common stock for the effective conversion of the retained interest in Holdings into common stock of the Company. Diluted EPS adjusts basic EPS for the effects of Warrants, Units and Options; only in the periods in which such effect is dilutive.

As part of the initial public offering in March 2007, the Company issued an Underwriter Purchase Option (“UPO”) to purchase 600,000 Units at an exercise price of $8.80 per unit. Each unit consisted of one share of the Company’s common stock and one warrant. Each warrant entitled the holder to purchase from the Company one share of common stock at an exercise price of $5.00 per share. The UPO expired unexercised on March 4, 2012.

The weighted average UPO Units that could be converted into zero common shares for the three and nine months ended September 30, 2012 were not included in the computation of diluted earnings per share because the effects would be anti-dilutive. The weighted average restricted stock outstanding that could be converted into 3,931 and 82,685 common shares for the three months ended September 30, 2013 and 2012, respectively, and 1,738 and 83,469 common shares for the nine months ended September 30, 2013 and 2012, respectively, were not included in the computation of diluted earnings per share because the effects would be anti-dilutive. Weighted average options outstanding that could be converted into 74,259 and 41,987 common shares for the three months ended September 30, 2013 and 2012, respectively, and 82,433 and 8,514 common shares for the nine months ended September 30, 2013 and 2012, respectively, were not included in the computation of diluted earnings per share because the effects would be anti-dilutive. Weighted average warrants outstanding that could be converted into 89,779 and 89,764 common shares for the three months ended September 30, 2013 and 2012, respectively, and 89,783 and 89,749 common shares for the nine months ended September 30, 2013 and 2012, respectively, were outstanding but were not included in the computation of diluted earnings per share because the effects would be anti-dilutive.

As of September 30, 2013 and 2012, there were 90,000 privately-issued warrants outstanding, which were exercisable at a weighted average exercise price of $0.01. These warrants were fully exercised on October 24, 2013. As of September 30, 2013 and 2012, there were 1,430,459 and 1,474,719 stock options, respectively, outstanding which are exercisable at weighted average exercise prices of $5.29 and $5.45, respectively.

9. Income Taxes

The Company’s effective tax rate of 37.6% for the nine months ended September 30, 2013 was higher than the statutory federal rate due to state taxes. The Company’s effective tax rate of 33.8% for the nine months ended September 30, 2012 was lower than the statutory federal rate due to state taxes.

As of September 30, 2013, the Company has unused federal net operating loss carry-forwards totaling approximately $145.5 million that begin expiring in 2022. As of September 30, 2013, the Company also has unused state net operating loss carry-forwards totaling approximately $77.7 million which expire between 2013 and 2032. The net operating loss carry-forwards are primarily from the acquisition of Holdings and losses in recent years. The Company had unused federal and state net operating loss carry-forwards totaling approximately $138.9 million and $71.5 million, respectively, as of December 31, 2012.

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(Unaudited)

The Company also has remaining excess tax goodwill of approximately $3.1 million as of September 30, 2013 associated with the acquisition of Holdings. The excess tax goodwill will be amortized and deducted for tax purposes over the remaining three year term. However, the excess tax goodwill has not been recorded for GAAP purposes and will not be realized as a benefit to the income tax provision until the amortization deductions are realized through the reduction of taxable income in future years. The Company had remaining excess tax goodwill of approximately $3.1 million as of December 31, 2012.

The Company is generally no longer subject to federal and state examinations for tax years prior to December 31, 2010.

The Company had unrecognized tax benefits of approximately $0.3 million as of September 30, 2013 primarily associated with tax positions taken in a prior year. The Company incurred approximately $15,000 of income tax related interest expense and penalties related to uncertain tax positions during the three and nine months ended September 30, 2013. The Company had unrecognized tax benefits of approximately $0.1 million as of December 31, 2012.

The Company utilizes a two-step approach to recognize and measure uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained upon tax authority examination, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement.

10. Stock Based Compensation

The Company may issue up to 1,500,000 shares of common stock pursuant to its 2011 Long-term Incentive Plan to employees, non-employee directors and consultants of the Company. The Company may issue up to 1,575,000 shares of common stock pursuant to its 2008 Long-term Incentive Plan to employees, non-employee directors and consultants of the Company. Options to purchase shares of common stock are granted at its market price on the grant date and expire ten years from issuance.

Stock Options

Stock options granted to employees have a 10 year life and vest one-third annually beginning one year from the date of issue. The Company calculates stock option compensation expense based on the grant date fair value of the award and recognizes expense on a straight-line basis over the three year service period of the award. The Company has granted to certain key members of management options to purchase 100,000 shares at $4.26 per share, 423,750 shares at $5.58 per share, 485,969 shares at $6.45 per share, and 565,000 shares at $4.50 per share on grant dates of June 18, 2013, January 14, 2011, March 18, 2010, and December 18, 2008, respectively.

The fair values of the stock options granted are estimated at the date of grant using the Black-Scholes option pricing model. The model is sensitive to changes in assumptions which can materially affect the fair value estimate. The Company’s method of estimating expected volatility for the 2008 and 2010 option grants was based on the volatility of its peers since the Company only had operations for a short period of time as of the grant date. The Company’s method of estimating the expected volatility for the 2011 and 2013 option grant was based on the volatility of its own common shares outstanding. The expected dividend yield was estimated based on the Company’s expected dividend rate over the term of the options. The expected term of the options was based on management’s estimate, and the risk-free rate is based on U.S. Treasuries with a term approximating the expected life of the options.

Based on the results of the model, the weighted average fair value of the stock options granted were $2.79, $3.19, $3.76 and $2.54 per share for the options granted on June 18, 2013, January 14, 2011, March 18, 2010, and December 18, 2008, respectively, using the following assumptions: 

	Grant Date
	2013			2011			2010			2008
Expected dividend yield	—		%	—		%	—		%	—		%
Risk-free interest rate	1.33		%	2.31		%	2.79		%	1.43		%
Expected volatility	75.00		%	60.00		%	61.00		%	61.00		%
Expected life of option	6 years			6 years			6 years			6 years
Grant date fair value	$	278,589		$	1,351,763		$	1,827,243		$	1,434,671

18

ESSEX RENTAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

On May 31, 2013, the Company entered into a separation agreement with its former Chief Financial Officer. In accordance with the terms of the separation agreement, and as permitted under the terms of the applicable option awards, the Company agreed that options awarded to the former Chief Financial Officer on December 18, 2008 and January 14, 2011, to the extent vested, will remain exercisable until the ten year anniversary of the applicable grant date, instead of expiring 90 days following the date the former Chief Financial Officer's employment was terminated, as provided in the option award agreements. As a result of the modification, the Company incurred additional non-cash stock compensation expense of approximately $0.4 million during the nine months ended September 30, 2013. Additionally, the separation agreement resulted in the forfeiture of 111,773 vested options issued under the March 18, 2010 option grant. The unvested portion of options previously awarded to the Company's Chief Financial Officer were also forfeited upon the termination of his employment.

Restricted Shares of Common Stock

On June 18, 2013, the Company granted to a key member of management 67,500 shares of restricted common stock with an aggregate grant date fair value of $287,550. One-third of the restricted shares are scheduled to vest on June 18, 2014, June 18, 2015 and June 18, 2016, respectively, and as such, no shares were vested as of September 30, 2013.

On January 3, 2011, the Company granted to certain employees 166,943 shares of restricted common stock with an aggregate grant date fair value of $926,485. One half of these restricted shares vested on January 3, 2012 and the remainder vested on January 3, 2013, and as such, 166,943 were vested as of September 30, 2013.

The Company recorded $0.1 million and $0.4 million of non-cash compensation expense associated with stock options and restricted shares in selling, general and administrative expenses for the three months ended September 30, 2013 and 2012, respectively. The Company recorded $0.7 million and $1.1 million of non-cash compensation expense associated with stock options and restricted shares in selling, general and administrative expenses for nine months ended September 30, 2013 and 2012, respectively. There was approximately $0.6 million and $0.5 million of total unrecognized compensation cost as of September 30, 2013 and December 31, 2012, respectively related to non-vested stock option and restricted share awards. The remaining cost is expected to be recognized ratably over the remaining respective vesting periods.

11. Common Stock and Warrants

In October 2008 our Board of Directors authorized a stock and warrant repurchase program, under which the Company may purchase, from time to time, in open market transactions at prevailing prices or through privately negotiated transactions as conditions permit, up to $12.0 million of the Company’s outstanding common stock and warrants. The Company’s stock repurchase program was suspended in May 2010 in conjunction with the launching of the cashless exercise warrant offer. Repurchases of our common stock and warrants were funded with cash flows of the business.

In November 2010, in conjunction with the issuance of the unsecured promissory notes, the Company issued 90,000 warrants entitling the holders to purchase from the Company one share of common stock at an exercise price of $0.01, which expire on December 31, 2013. The fair value of the warrants on the issuance date was $296,400. See Note 4 for further discussion.

The Company issued 43,715 and 56,868 shares of common stock, respectively, for services provided by the members of the Strategic Planning and Finance Committee of the Board of Directors during the nine months ended September 30, 2013 and 2012, respectively. The Company issued 83,469 and 83,474 shares of restricted common stock to certain employees during the nine months ended September 30, 2013 and 2012, respectively. The Company withheld 29,489 and 12,616 common shares to cover the employee tax obligation related to the restricted shares issuance during the nine months ended September 30, 2013 and 2012, respectively.

12. Segment Information

We have identified three reportable segments: equipment rentals, equipment distribution, and parts and service. These segments are based upon how management of the Company allocates resources and assesses performance. The equipment rental segment includes rental, transportation and used rental equipment sales. There were no sales between segments for any of the periods presented. Selling, general, and administrative expenses as well as all other income and expense items below gross profit are not generally allocated to our reportable segments.

We do not compile discrete financial information by our segments other than the information presented below. The following table presents information about our reportable segments related to revenues and gross profit:

19

ESSEX RENTAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

	Three Months Ended September 30,					Nine Months Ended September 30,
	2013		2012			2013		2012
Segment revenues
Equipment rentals	$	14,416,345	$	17,274,476		$	49,789,356	$	54,604,204
Equipment distribution	3,772,051		1,231,984			8,336,980		3,425,936
Parts and service	4,619,742		5,633,775			14,960,011		17,039,119
Total revenues	$	22,808,138	$	24,140,235		$	73,086,347	$	75,069,259
Segment gross profit
Equipment rentals	$	3,805,321	$	4,680,065		$	12,553,710	$	10,459,460
Equipment distribution	368,143		(4,427		)	806,861		60,237
Parts and service	1,282,785		1,684,258			4,181,464		4,570,881
Total gross profit	$	5,456,249	$	6,359,896		$	17,542,035	$	15,090,578

The following table presents information about our reportable segments related to total assets:

	September 30, 2013		December 31, 2012
Segment identified assets
Equipment rentals	$	311,704,773	$	328,177,713
Equipment distribution	4,968,420		2,001,273
Parts and service	5,607,122		6,593,538
Total segment identified assets	322,280,315		336,772,524
Non-segmented identified assets	17,151,204		17,295,086
Total assets	$	339,431,519	$	354,067,610

The Company operates primarily in the United States. Our sales to international customers for the three months ended September 30, 2013 were 8% of total revenues. Sales to customers in Canada represented 8% of total revenues. No customer accounted for more than 10% of our revenues on a consolidated basis. Within the equipment distribution segment for the three months ended September 30, 2013, four customers individually accounted for approximately 23%, 13%, 12% and 10% of revenues on a segmented basis. The concentration of revenues from these customers within the equipment distribution segment is directly attributable to the large dollar value of individual transactions and the small number of individual transactions.

Our sales to international customers for the three months ended September 30, 2012 were 9% of total revenues. Sales to customers in Canada represented 8% of total revenues. No customer accounted for more than 10% of our revenues on a consolidated basis. Within the equipment distribution segment for the three months ended September 30, 2012, three customers individually accounted for approximately 42%, 30% and 23% of revenues on a segmented basis. The concentration of revenues from these customers within the equipment distribution segment is directly attributable to the large dollar value of individual transactions and the small number of individual transactions.

Our sales to international customers for the nine months ended September 30, 2013 were 9% of total revenues. Sales to customers in Canada represented 8% of total revenues. No customer accounted for more than 10% of our revenues on a consolidated basis. Within the equipment distribution segment for the nine months ended September 30, 2013, two customers individually accounted for approximately 34% and 11% of revenues on a segmented basis. The concentration of revenues from these customers within the equipment distribution segment is directly attributable to the large dollar value of individual transactions and the small number of individual transactions.

Our sales to international customers for the nine months ended September 30, 2012 were 12% of total revenues. Sales to customers in Canada represented 10% of total revenues. No customer accounted for more than 10% of our revenues on a consolidated basis. Within the equipment distribution segment for the nine months ended September 30, 2012, five customers individually accounted for approximately 17%, 16%, 15%, 14% and 11% of revenues on a segmented basis. The concentration of revenues from these customers within the equipment distribution segment is directly attributable to the large dollar value of individual transactions and the small number of individual transactions.

20

ESSEX RENTAL CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

The Company maintains assets in Canada associated with our Coast Crane Ltd. subsidiary. Total assets located in Canada at September 30, 2013 totaled approximately $5.5 million, including long-lived assets totaling approximately $4.4 million. At December 31, 2012, total assets located in Canada totaled approximately $7.2 million, including long-lived assets totaling approximately $5.8 million.

13. Commitments, Contingencies and Related Party Transactions

Since December 2010, the Company has occupied office space at 500 Fifth Avenue, 50th Floor, New York, NY 10110, provided by Hyde Park Real Estate LLC, an affiliate of Laurence S. Levy, our chairman of the board. Such affiliate has agreed that it will make such office space, as well as certain office and administrative services, available to the Company, as may be required by the Company from time to time. Effective January 1, 2012, the Company has agreed to pay such entity $7,688 per month for such services with the terms of such arrangement being reconsidered from time to time. The Company’s statements of operations for the three and nine months ended September 30, 2013 and 2012 each include approximately $23,000 and $69,000, respectively, of rent expense related to these agreements.

In November 2010, the Company entered into an agreement with the holders of certain Coast Crane indebtedness pursuant to which such holders agreed, in consideration of the assumption of such indebtedness by the Company, to exchange such indebtedness of $5.2 million for unsecured promissory notes issued by the Company in the aggregate principal amount of $5.2 million plus the receipt of up to 90,000 warrants to purchase Essex common stock at $0.01 per share. The unsecured promissory notes mature in December 2013. The holders of the unsecured promissory notes are related parties to the Company as they owned a significant amount of the Company’s outstanding shares of common stock at the time of the transaction.

The Company maintains reserves for personal property taxes.  These reserves are based on a variety of factors including: duration of rental in each county jurisdiction, tax rates, rental contract terms, customer filings, tax-exempt nature of projects or jurisdictions, statutes of limitations and potential related penalties and interest.  Additionally, most customer rental contracts contain a provision that provides that personal property taxes are an obligation to be borne by the lessee. Where provided in the rental contract, management will invoice the customer for any personal property taxes paid by the Company. An estimated receivable has been recorded, net of an estimated allowance in connection with this liability.  This customer receivable has been presented as other receivables in current assets while the property tax reserve has been included in accrued taxes.

Management estimated the gross personal property taxes liability and related contractual customer receivable of the Company to be approximately $3.2 million and $1.9 million, respectively, as of September 30, 2013 and approximately $3.0 million and $2.0 million, respectively, as of December 31, 2012.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion summarizes the financial position of Essex Rental Corp. and its subsidiaries as of September 30, 2013, and its results of operations for the three and nine months ended September 30, 2013 and should be read in conjunction with (i) the unaudited consolidated financial statements and notes thereto included elsewhere in this Quarterly Report on Form 10-Q and (ii) the audited consolidated financial statements and accompanying notes to our Annual Report on Form 10-K for the year ended December 31, 2012.

As used in this Quarterly Report, references to “the Company” or “Essex” or to “we,” “us” or “our” refer to Essex Rental Corp., together with its consolidated subsidiaries, Essex Holdings, LLC, Essex Crane Rental Corp., Essex Finance Corp., Coast Crane Company and Coast Crane Ltd., unless the context otherwise requires. 

Business

Background

Essex Rental Corp. (formerly Hyde Park Acquisition Corp.) was incorporated in Delaware on August 21, 2006 as a blank check company whose objective was to effect a merger, capital stock exchange, asset acquisition or other similar business combination with an operating business. Our activities from our inception through October 31, 2008 were limited to completing our initial public offering and completing a business combination.

On October 31, 2008, we acquired Essex Crane Rental Corp., which we refer to as Essex Crane, through the acquisition of substantially all of the ownership interests of Essex Crane’s parent company, Essex Holdings, LLC, which we refer to as Holdings.

Essex Crane is a leading provider of lattice-boom crawler crane and attachment rental services and possesses one of the largest fleets of such equipment in the United States (U.S.). From October 31, 2008 until November 24, 2010, we conducted substantially all of our operations through Essex Crane.

On November 24, 2010 we acquired substantially all of the assets, and assumed certain liabilities (the “Coast Acquisition”) of Coast Crane Company (“Coast Liquidating Co.”), a leading provider of specialty lifting solutions and crane rental services on the West Coast of the United States. The assets acquired included all of the outstanding shares of capital stock of Coast Crane Ltd., a British Columbia corporation, through which Coast Liquidating Co. conducted its operations in Canada. References to “Coast Crane” mean Coast Crane Company, a Delaware corporation, formerly known as CC Bidding Corp. (“CCBC”), through which we operate the business and assets acquired in the Coast Acquisition.

We conduct substantially all of our operations through Essex Crane and Coast Crane.

Products and Services; Operating Segments

Our principal products and services, as grouped within the Company’s three defined operating segments, are described below.

Equipment Rental Segment    We offer for rent crawler cranes and attachments, rough terrain cranes, boom trucks and tower cranes. Most attachments are rented separately and increase either the lifting capacity or the reach capabilities of the base cranes .  We also offer transportation services with respect to equipment that is on rent. We rent our large fleet of cranes and attachments and other lifting equipment to a variety of engineering and construction customers under contracts, most of which have rental periods of between 4 and 18 months. Rough terrain cranes and boom trucks may be rented as frequently as daily. The contracts typically provide for an agreed upon rental rate and a specified rental period. The revenue from crane and attachment rentals is primarily driven by rental rates (which are typically higher for more expensive cranes with heavier lifting capacities than less expensive cranes with lower lifting capacities) charged to customers and the fleet utilization rate. Rental revenue is recognized as earned in accordance with the terms of the relevant rental agreement on a pro rata daily basis.

Transportation services revenue is derived from the management of the logistics process by which our rental equipment is transported to and from customers’ construction sites, including the contracting of third party trucking for such transportation. Transportation revenue is earned under equipment rental agreements on a gross basis representing both the third-party provider’s fee for transportation and our fee for managing these transportation services and they are matched with the associated costs, and

22

related costs for amounts paid to third party providers. The key drivers of transportation revenue are crane and attachment and other lifting equipment utilization rates and average contract lengths. Shorter average contract durations and high utilization rates generally result in higher requirements for transportation of equipment and resulting revenue. The distance that equipment has to move between different jobsites and the type of equipment being moved (number of truckloads) are also major drivers of transportation revenue and associated costs. Transportation revenue is recognized upon completion of the transportation of equipment.

In the ordinary course of business, we sell used cranes and attachments and other lifting equipment to optimize the combination of crane models and lifting capacities available in our rental fleet to match perceived market demands and opportunities. On average, we have historically achieved sale prices for equipment in excess of the appraised value. This is due to the long useful life of the crane and attachment fleet, the conditions prevailing in the secondary market and the high content of engineered high-strength steel included in these fleet assets. Used rental equipment sales are recognized at the time ownership transfers, which is generally based on delivery and/or inspection and acceptance of the equipment in accordance with the terms of the corresponding agreement. The rate at which we replace used equipment with new equipment depends on a number of factors, including changing general economic conditions, growth opportunities and the need to adjust fleet mix to meet customer requirements and demand.

Equipment Distribution Segment We offer a variety of construction equipment products for retail sales including crawler cranes, tower cranes, boom trucks, all-terrain cranes, rough terrain cranes and other lifting equipment used in the construction industry. The revenue from retail equipment sales is primarily driven by the level of construction activity in a particular geographic region. Equipment sales revenue is recognized at the time ownership transfers, which is generally based on delivery and/or inspection and acceptance of the equipment in accordance with the terms of the corresponding agreement. Our equipment distribution operations are conducted through our Coast Crane subsidiary.

Parts and Service Segment We are a parts distributor for various lifting equipment manufacturers and routinely sell parts to our customers in the construction industry. While crawler cranes or attachments, tower cranes, rough terrain cranes or boom trucks are on rent, much of the repair and maintenance work is paid for by the customer. We perform a portion of the repair and maintenance work and recognize revenues for such services to the extent they are the customer’s responsibility. This category of revenues also includes providing certain services while erecting the equipment during initial assembly or disassembly of the equipment at the end of the rental. We also provide repairs and maintenance services for customers that own their own equipment and request our services at one of our service center locations. Our target customers for these ancillary services are our current rental customers, customers that own their own equipment and those who purchase new and used equipment from us. Key drivers for repair and maintenance revenue are the general construction activity in a given geographic region and our skilled crane mechanics. Repair and maintenance revenue is recognized as such services are performed. Parts revenue is recognized at the time of sale. Our parts and services operations are conducted through our Coast Crane subsidiary.

In summary, for the three months ended September 30, 2013, 63.2% of total revenues were derived from our equipment rental segment, 16.5% from our equipment distribution segment and 20.3% from our parts and service segment. For the nine months ended September 30, 2013, 68.1% of total revenues were derived from our equipment rental segment, 11.4% from our equipment distribution segment and 20.5% from our parts and service segment.

Utilization Measurement

We measure utilization using the method referred to as the “days” method. Management believes that this method, while it may reflect lower utilization rates than other methods used in the industry, is the most accurate method for measuring equipment utilization and correlates most closely with rental revenue. Under this method, a real time report is generated from the ERP system for each piece of equipment on rent in a period. The report includes the number of days each piece of equipment was on rent on a particular lease and the base monthly rental rate (excluding any overtime revenues). The total number of days on rent of all pieces of rental equipment provides the numerator for determining utilization. The denominator is all rental equipment assets owned times the number of days in the month. The “days” method is the utilization measurement that we currently use, and we anticipate that the “days” method will be the primary basis for future disclosure of utilization rates for our cranes and other construction equipment offered for rent.

The following table provides a summary of utilization rates calculated using the “days” method for the three and nine months ended September 30, 2013 and 2012 for the equipment types owned during those periods:  

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	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
Crawler Cranes	48.3	%	43.4	%	46.3	%	40.0	%
Rough Terrain Cranes	50.5	%	69.3	%	56.4	%	63.8	%
Boom Trucks	52.0	%	61.9	%	51.9	%	49.1	%
Self-Erecting Tower Cranes	32.6	%	33.1	%	40.8	%	29.3	%
City & Other Tower Cranes	33.5	%	54.7	%	44.8	%	52.6	%

Fleet Overview

As of September 30, 2013 and December 31, 2012, the total orderly liquidation value of the rental equipment fleet was approximately $349.3 million and $353.8 million, respectively.

Current Environment

Management believes that, in the long-term, Essex Crane’s strong niche market position and improvements in the Company’s fleet through investment in new cranes and the Coast Acquisition will provide opportunity for future growth. Management bases such belief on the assumption that, in the long-term, there will be improvements in our customers’ ability to obtain financing, including credit for infrastructure projects. We cannot however be certain that our customers’ access to financing for infrastructure projects, including credit, will improve.

Adjusted EBITDA to Net Income Reconciliation

Adjusted EBITDA represents the sum of net income, tax benefit, foreign currency exchange gains and losses, interest expense, other income, depreciation and amortization. Adjusted EBITDA is used internally when evaluating our operating performance and, we believe, allows investors to make a more meaningful comparison between our core business operating results over different periods of time, as well as with those of other similar companies. Management believes that Adjusted EBITDA, when viewed with the Company's results under GAAP and the accompanying reconciliation, provides useful information about operating performance and period-over-period growth, and provides additional information that is useful for evaluating the operating performance of our core business without regard to potential distortions. However, Adjusted EBITDA is not a measure of financial performance under GAAP and, accordingly, should not be considered as an alternative to net income (loss) as an indicator of operating performance.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Net loss	$	(1,902,604	)	$	(2,059,626	)	$	(5,997,826	)	$	(9,647,965	)
Benefit for income taxes	(1,030,118		)	(1,231,923		)	(3,608,803		)	(4,917,814		)
Foreign currency exchange (gains) losses	(106,094		)	(140,685		)	222,375			(85,605		)
Interest expense	3,075,077			2,875,405			8,575,553			8,658,387
Other income	(553,469		)	(30,435		)	(559,058		)	(32,861		)
Loss from operations	(517,208		)	(587,264		)	(1,367,759		)	(6,025,858		)
Depreciation	4,652,113			5,102,680			13,980,856			15,488,491
Other depreciation and amortization	250,914			321,893			793,241			958,348
Adjusted EBITDA	$	4,385,819		$	4,837,309		$	13,406,338		$	10,420,981

Results of Operations

Three months ended September 30, 2013 compared to the three months ended September 30, 2012

The Company had a net loss of $1.9 million for the three months ended September 30, 2013. Total revenue, cost of revenues and gross profit were $22.8 million, $17.4 million and $5.5 million, respectively, for the three months ended September 30, 2013. Total selling, general, administrative and other expenses of $6.0 million was composed primarily of salaries, payroll taxes benefits, sales and marketing, insurance, professional fees, rent, travel, depreciation and amortization expenses. Interest expense related to borrowings under our revolving credit facilities and other debt obligations was $3.1 million for the three months ended September

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30, 2013. The Company had an income tax benefit of $1.0 million for the three months ended September 30, 2013 related to loss before income taxes of $2.9 million. Adjusted EBITDA, which includes the impact of $0.1 million of non-cash stock compensation, was $4.4 million for the three months ended September 30, 2013.

The Company had a net loss of $2.1 million for the three months ended September 30, 2012. Total revenue, cost of revenues and gross profit were $24.1 million, $17.8 million and $6.4 million, respectively, for the three months ended September 30, 2012. Total selling, general, administrative and other expenses of $6.9 million was composed primarily of salaries, payroll taxes benefits, sales and marketing, insurance, professional fees, rent, travel, depreciation and amortization expenses. Interest expense related to borrowings under our revolving credit facilities and other debt obligations was $2.9 million for the three months ended September 30, 2012. The Company had an income tax benefit of $1.2 million for the three months ended September 30, 2012 related to loss before income taxes of $3.3 million. Adjusted EBITDA, which includes the impact of $0.4 million of non-cash stock compensation expense, was $4.8 million for the three months ended September 30, 2012.

Revenues

Revenues for the three months ended September 30, 2013 were $22.8 million, a 5.5% decrease compared to revenues of $24.1 million for the three months ended September 30, 2012.   The following table provides a summary of the Company’s revenues by operating segment:

	Three Months Ended September 30,				Dollar			Percentage
	2013		2012		Change			Change
Segment revenues
Equipment rentals	$	14,416,345	$	17,274,476	$	(2,858,131	)	(16.5	)%
Equipment distribution	3,772,051		1,231,984		2,540,067			206.2	%
Parts and service	4,619,742		5,633,775		(1,014,033		)	(18.0	)%
Total revenues	$	22,808,138	$	24,140,235	$	(1,332,097	)	(5.5	)%

Equipment rental segment revenues, which represents 63.2% of total revenues, was $14.4 million for the three months ended September 30, 2013, a 16.5% decrease from $17.3 million for the three months ended September 30, 2012. The equipment rental segment includes rental, transportation and used rental equipment sales. Equipment rentals revenue, which represented 51.7% of total revenues, was $11.8 million for the three months ended September 30, 2013, a 6.0% increase from $12.6 million for the three months ended September 30, 2012. Utilization for crawler cranes, as measured on a “days” basis, increased to 48.3% for the three months ended September 30, 2013 compared to 43.4% for the same period in the prior year. Utilization for rough terrain and tower cranes for the three months ended September 30, 2013 were 50.5% and 33.2%, respectively, as compared to 69.3% and 46.8%, respectively, for the three months ended September 30, 2012. There was a decrease in average crawler crane rental rate of 0.3% to $17,509 (per crane per rental month) for the three months ended September 30, 2013 from $17,560 for the three months ended September 30, 2012. Transportation revenue, which represents 5.9% of total revenues, was $1.3 million for the three months ended September 30, 2013, a 15.8% decrease from $1.6 million for the three months ended September 30, 2012. The decrease in transportation revenue is directly attributable to the number of equipment moves and the rental locations of the cranes on rent. Used rental equipment sales revenue was $1.3 million for the three months ended September 30, 2013; a $1.9 million or 59.4% decrease compared to the three months ended September 30, 2012. Included in total used rental equipment revenues are revenues related to the sale of aerial work platforms of $0.3 million for the three months ended September 30, 2012. The decrease in total used rental equipment sales revenue is directly attributable to the sale of aerial work platforms during the three months ended September 30, 2012 as part of a strategic decision to eliminate this equipment class from our rental fleet and a decrease in the number of rental assets sold. During the three months ended September 30, 2013, the Company sold seven pieces of used rental equipment. During the three months ended September 30, 2012, the Company sold 29 pieces of rental equipment.

Equipment distribution segment revenue, which represents 16.5% of total revenue, was $3.8 million for the three months ended September 30, 2013, a 206.2% increase from $1.2 million for the three months ended September 30, 2012. The increase in equipment distribution segment revenue is due to an increase in the number of sale transactions as compared to the prior period.

Parts and service segment revenue, which represents 20.3% of total revenue, was $4.6 million for the three months ended September 30, 2013, an18.0% decrease from $5.6 million for the three months ended September 30, 2012. The decrease is primarily attributable to a decrease in third party service work performed on customer equipment and over-the-counter parts sales.

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Gross Profit

Gross Profit for the three months ended September 30, 2013 was $5.5 million, a 14.2% decrease from gross profit of $6.4 million for the three months ended September 30, 2012. Gross profit margin was 23.9% for the three months ended September 30, 2013 compared to 26.3% for the three months ended September 30, 2012.  The following table provides a summary of the Company’s gross profit by operating segment:

	Three Months Ended September 30,					Dollar			Percentage
	2013		2012			Change			Change
Segment gross profit (loss)
Equipment rentals	$	3,805,321	$	4,680,065		$	(874,744	)	(18.7	)%
Equipment distribution	368,143		(4,427		)	372,570			8,415.9	%
Parts and service	1,282,785		1,684,258			(401,473		)	(23.8	)%
Total gross profit	$	5,456,249	$	6,359,896		$	(903,647	)	(14.2	)%

Equipment rentals segment gross profit of $3.8 million for the three months ended September 30, 2013 decreased $0.9 million or 18.7% as compared to the three months ended September 30, 2012. Gain on the sale of used rental equipment was $0.4 million for the three months ended September 30, 2013, a 31.5% decrease from $0.6 million for the three months ended September 30, 2012. The decrease in the gain on the sale of used rental equipment was directly attributable to a decrease in the number of rental assets sold during the three months ended September 30, 2013.

Equipment distribution segment gross profit of $368,143 (9.8% margin) for the three months ended September 30, 2013 increased $372,570, or 8,415.9%, from a loss of $4,427 ((0.4)% margin) for the three months ended September 30, 2012. The increased gross profit and margin are functions of higher profit margins on individual sale transactions and larger sales volume during the three months ended September 30, 2013.

Parts and service segment gross profit of $1.3 million for the three months ended September 30, 2013 decreased $0.4 million or 23.8% from $1.7 million for the three months ended September 30, 2012. The parts and service segment gross profit decrease was driven by lower over-the-counter parts sales and third party service work volume.

Total selling, general, administrative and other expenses for the three months ended September 30, 2013 and 2012 were $6.0 million and $6.9 million, respectively. The decrease in selling, general, administrative and other expenses was primarily due to decreases in salary and tax expense and professional fee expense. Selling, general and administrative expenses include, legal fees, professional fees, bad debt expense, employee benefits, insurance and selling and marketing expenses. Selling, general and administrative and other expenses include $0.1 million and $0.4 million of non-cash stock based compensation expense for the three months ended September 30, 2013 and 2012, respectively.

Other income increased to $0.6 million for the three months ended September 30, 2013 from $30,000 for the three months ended September 30, 2012 primarily due to a $0.5 million gain on the sale of land and buildings that had not been used in the operations of the business for several years.

Interest expense increased 6.9% to $3.1 million for the three months ended September 30, 2013 from $2.9 million for the three months ended September 30, 2012. The increase in interest expense was related primarily to a $0.3 million increase in the amount of deferred financing fee amortization as a result of the revolving credit facility amendments entered into in March 2013.

Income tax benefit was $1.0 million for the three months ended September 30, 2013 compared to a $1.2 million for the three months ended September 30, 2012.  The decrease in income tax benefit is due to a decrease in the pre-tax loss. The effective tax rates were 35.1% and 37.4% for the three months ended September 30, 2013 and 2012, respectively. The effective tax rate decreased from the prior year due to a decrease in state tax rates resulting primarily from changes in apportionment.

Essex had 253 full-time employees at September 30, 2013 compared to 255 full-time employees at September 30, 2012. 

Nine months ended September 30, 2013 compared to the nine months ended September 30, 2012

The Company had a net loss of $6.0 million for the nine months ended September 30, 2013. Total revenue, cost of revenues and gross profit were $73.1 million, $55.5 million and $17.5 million, respectively, for the nine months ended September 30, 2013.

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Total selling, general, administrative and other expenses of $18.9 million was composed primarily of salaries, payroll taxes benefits, sales and marketing, insurance, professional fees, rent, travel, depreciation and amortization expenses. Interest expense related to borrowings under our revolving credit facilities and other debt obligations was $8.6 million for the nine months ended September 30, 2013. The Company had an income tax benefit of $3.6 million for the nine months ended September 30, 2013 related to loss before income taxes of $9.6 million. Adjusted EBITDA, which includes the impact of $0.7 million and $0.3 million of non-cash stock compensation and non-recurring severance expenses, respectively, was $13.4 million for the nine months ended September 30, 2013.

The Company had a net loss of $9.6 million for the nine months ended September 30, 2012. Total revenue, cost of revenues and gross profit were $75.1 million, $60.0 million and $15.1 million, respectively, for the nine months ended September 30, 2012. Total selling, general, administrative and other expenses of $21.1 million was composed primarily of salaries, payroll taxes benefits, sales and marketing, insurance, professional fees, rent, travel, depreciation and amortization expenses. Interest expense related to borrowings under our revolving credit facilities and other debt obligations was $8.7 million for the nine months ended September 30, 2012. The Company had an income tax benefit of $4.9 million for the nine months ended September 30, 2012 related to loss before income taxes of $14.6 million. Adjusted EBITDA, which includes the impact of $1.1 million and $0.6 million of non-cash stock compensation and non-recurring expenses, respectively, was $10.4 million for the nine months ended September 30, 2012. 

Revenues

Revenues for the nine months ended September 30, 2013 were $73.1 million, a 2.6% decrease compared to revenues of $75.1 million for the nine months ended September 30, 2012.   The following table provides a summary of the Company’s revenues by operating segment:

	Nine Months Ended September 30,				Dollar			Percentage
	2013		2012		Change			Change
Segment revenues
Equipment rentals	$	49,789,356	$	54,604,204	$	(4,814,848	)	(8.8	)%
Equipment distribution	8,336,980		3,425,936		4,911,044			143.3	%
Parts and service	14,960,011		17,039,119		(2,079,108		)	(12.2	)%
Total revenues	$	73,086,347	$	75,069,259	$	(1,982,912	)	(2.6	)%

Equipment rental segment revenues, which represents 68.1% of total revenues, was $49.8 million for the nine months ended September 30, 2013, a 8.8% decrease from $54.6 million for the nine months ended September 30, 2012. The equipment rental segment includes rental, transportation and used rental equipment sales. Equipment rentals revenue, which represented 48.5% of total revenues, was $35.4 million for the nine months ended September 30, 2013, an 5.1% increase from $33.7 million for the nine months ended September 30, 2012. Utilization for crawler cranes, as measured on a “days” basis, increased to 46.3% for the nine months ended September 30, 2013 compared to 40.0% for the same period in the prior year. Utilization for rough terrain and tower cranes for the nine months ended September 30, 2013 were 56.4% and 43.3%, respectively, as compared to 63.8% and 44.1%, respectively, for the nine months ended September 30, 2012. There was an increase in average crawler crane rental rate of 1.6% to $17,223 (per crane per rental month) for the nine months ended September 30, 2013 from $16,945 for the nine months ended September 30, 2012. Transportation revenue, which represents 6.0% of total revenues, was $4.4 million for the nine months ended September 30, 2013, a 12.9% decrease from $5.1 million for the nine months ended September 30, 2012. The decrease in transportation revenue is directly attributable to the number of equipment moves and the rental locations of the cranes on rent. Used rental equipment sales revenue was $9.9 million for the nine months ended September 30, 2013; a $5.9 million or 37.2% decrease compared to the nine months ended September 30, 2012. Included in total used rental equipment revenues are revenues related to the sale of aerial work platforms of $0.4 million and $4.6 million, respectively, for the nine months ended September 30, 2013 and 2012. The decrease in total used rental equipment sales revenue is directly attributable to the sale of the majority of the aerial work platforms during the nine months ended September 30, 2012 as part of a strategic decision to eliminate this equipment class from our rental fleet. During the nine months ended September 30, 2013, the Company sold ninety-one pieces of used rental equipment. During the nine months ended September 30, 2012, the Company sold 297 pieces of rental equipment.

Equipment distribution segment revenue, which represents 11.4% of total revenue, was $8.3 million for the nine months ended September 30, 2013, a 143.3% increase from $3.4 million for the nine months ended September 30, 2012. The increase in equipment distribution segment revenue is due to an increase in the number of sale transactions as compared to the prior period.

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Parts and service segment revenue, which represents 20.5% of total revenue, was $15.0 million for the nine months ended September 30, 2013, a 12.2% decrease from $17.0 million for the nine months ended September 30, 2012. The decrease is primarily attributable to a decrease in third party service work performed on customer equipment and over-the-counter parts sales.

Gross Profit

Gross Profit for the nine months ended September 30, 2013 was $17.5 million, a 16.2% increase from gross profit of $15.1 million for the nine months ended September 30, 2012. Gross profit margin was 24.0% for the nine months ended September 30, 2013 compared to 20.1% for the nine months ended September 30, 2012.  The following table provides a summary of the Company’s gross profit by operating segment:

	Nine Months Ended September 30,				Dollar			Percentage
	2013		2012		Change			Change
Segment gross profit
Equipment rentals	$	12,553,710	$	10,459,460	$	2,094,250		20.0	%
Equipment distribution	806,861		60,237		746,624			1,239.5	%
Parts and service	4,181,464		4,570,881		(389,417		)	(8.5	)%
Total gross profit	$	17,542,035	$	15,090,578	$	2,451,457		16.2	%

Equipment rentals segment gross profit of $12.6 million for the nine months ended September 30, 2013 increased $2.1 million or 20.0% as compared to the nine months ended September 30, 2012. Gain on the sale of used rental equipment was $2.5 million for the nine months ended September 30, 2013, an 0.5% increase from $2.5 million for the nine months ended September 30, 2012. The increase in the gain on the sale of used rental equipment was directly attributable to an increase in the number of higher lifting capacity rental equipment assets sold during the nine months ended September 30, 2013.

Equipment distribution segment gross profit of $0.8 million (9.7% margin) for the nine months ended September 30, 2013 increased $0.7 million or 1,239.5% from $0.1 million (1.8% margin) for the nine months ended September 30, 2012. The increased gross profit and margin are functions of higher sales volume during the nine months ended September 30, 2013.

Parts and service segment gross profit of $4.2 million for the nine months ended September 30, 2013 decreased $0.4 million or 8.5% from $4.6 million for the nine months ended September 30, 2012. The parts and service segment gross profit decrease was driven by lower over-the-counter parts sales and third party service work volume.

Total selling, general, administrative and other expenses for the nine months ended September 30, 2013 and 2012 were $18.9 million and $21.1 million, respectively. The decrease in selling, general, administrative and other expenses was primarily due to decreases in salary and tax expense, professional fee expense, travel expense and bad debt expense. Selling, general and administrative expenses include, legal fees, professional fees, bad debt expense, employee benefits, insurance and selling and marketing expenses. Selling, general and administrative and other expenses include $0.7 million and $1.1 million of non-cash stock based compensation expense for the nine months ended September 30, 2013 and 2012, respectively. Selling, general, administrative and other expenses include $0.3 million of non-recurring severance expenses during the nine months ended September 30, 2013 and $0.6 million of non-recurring consulting expenses during the nine months ended September 30, 2012.

Other income increased to $0.6 million for the nine months ended September 30, 2013 from $33,000 for the nine months ended September 30, 2012 primarily due to a $0.5 million gain on the sale of land and buildings that had not been used in the operations of the business for several years.

Interest expense decreased 1.0% to $8.6 million for the nine months ended September 30, 2013 from $8.7 million for the nine months ended September 30, 2012. The decrease in interest expense was related primarily to a lower average debt balance for the nine months ended September 30, 2013 as compared to the same period in the prior year and was partially offset by higher interest rates and an increase in amortization related to deferred financing fees.

Income tax benefit was $3.6 million for the nine months ended September 30, 2013 compared to $4.9 million for the nine months ended September 30, 2012.  The decrease in income tax benefit is due to a decrease in the pre-tax loss. The effective tax rates were 37.6% and 33.8% for the nine months ended September 30, 2013 and 2012, respectively. The effective tax rate increased from the prior year due to an increase in state tax rates resulting primarily from changes in apportionment. 

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Liquidity and Capital Resources

Cash flow from operating activities. The Company’s cash provided by operating activities for the nine months ended September 30, 2013 was approximately $2.5 million. This was primarily the result of net loss of $6.0 million, which, when adjusted for non-cash expense items, such as depreciation and amortization, including amortization of the promissory note discount, gains on the sale of rental equipment, deferred income taxes and stock-based compensation expense, provided cash flows of approximately $3.9 million. The cash flows from operating activities were decreased by a total change in operating assets and liabilities of $1.4 million, which was comprised of a $2.0 million increase in retail equipment, a $0.3 million increase in spare parts inventory, and a $1.2 decrease in accounts payable and accrued expenses. These uses of cash were partially offset by a $1.7 million decrease in accounts receivable, a $0.2 increase in unearned rental revenue and a $0.1 million increase in customer deposits.

The Company’s cash provided by operating activities for the nine months ended September 30, 2012 was $0.9 million. This was primarily the result of net loss of $9.6 million, which, when adjusted for non-cash expense items, such as depreciation and amortization, including amortization of the promissory note discount, gains on the sale of rental equipment, deferred income taxes, changes in the fair value of interest rate swaps and stock-based compensation expense, provided cash flows of approximately $0.8 million. The cash flows from operating activities were increased by a total change in operating assets and liabilities of $0.2 million, which was comprised of a $0.4 million decrease in other receivables, a $0.6 million decrease in prepaid expenses and other assets, a $0.1 million decrease in retail equipment inventory, a $0.5 million decrease in spare parts inventory, a $0.6 million increase in accounts payable and accrued expenses, a $0.4 million increase in unearned rental revenue and a $0.3 million increase in customer deposits. These cash flow increases were partially offset by a $2.8 million increase in accounts receivable.

Cash flow from investing activities. The Company's cash provided by investing activities for the nine months ended September 30, 2013 was approximately $2.5 million. This was primarily the result of proceeds from the sale of rental equipment of $9.9 million and proceeds from the sale of property and equipment of $1.8 million. These sources of cash were partially offset by purchases of rental equipment of $5.5 million, purchases of property and equipment of $0.7 million and an increase in accounts receivable related rental equipment sales of $1.0 million. During the nine months ended September 30, 2013, the Company sold ninety-one pieces of used rental equipment.

The Company's cash provided by investing activities for the nine months ended September 30, 2012 was approximately $8.4 million. This was primarily the result of a $1.2 million decrease in accounts receivable related to rental equipment sales and $15.8 million in proceeds from the sales of rental equipment. These sources of cash were partially offset by purchases of rental equipment of $7.7 million and purchases of property and equipment of $0.8 million. During the nine months ended September 30, 2012, the Company sold 297 pieces of used rental equipment, primarily consisting of aerial work platforms.

Cash flow from financing activities. The Company's cash used in financing activities for the nine months ended September 30, 2013 was approximately $12.4 million. This was primarily the result of payments made for loan acquisition costs of $6.8 million as a result of refinancing the Essex Crane Revolving Credit Facility and the Coast Crane Revolving Credit Facility. This financing activity use of cash was increased by the payments on purchase money security interest debt of $0.8 million, employer repurchase of shares to satisfy minimum tax withholdings of $0.1 million and net payments on the revolving credit facilities and term loan of $4.8 million. Gross borrowings and payments on the revolving credit facilities were $74.8 million and $118.6 million, respectively, for the period. Gross proceeds and payments on the term loan were $40.0 million and $1.0 million, respectively. Gross borrowings and payments on the purchase money security interest debt for the period were $1.0 million and $0.8 million, respectively.

The Company's cash used in financing activities for the nine months ended September 30, 2012 was approximately $10.5 million. This is primarily due to payments on purchase money security interest debt of $0.5 million, payments for loan acquisition costs of $0.2 million and net payments on revolving credit facilities of $9.8 million. Total borrowings and payments on the revolving credit facilities were $68.5 million and $78.3 million, respectively.

Cash Requirements Related to Operations

Our principal sources of liquidity have been from cash provided by operating activities and the sales of used rental fleet equipment, proceeds from the issuance of debt, and borrowings available under our revolving credit facilities. Our principal uses of cash have been to fund operating activities and working capital and purchases of rental fleet equipment and property and equipment. We anticipate that the above described uses will be the principal demands on our cash in the future.

The amount of our future capital expenditures will depend on a number of factors including general economic conditions, growth prospects and the Company’s overall strategy. Proceeds from the sale of used rental equipment of $1.3 million and $9.9

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million, respectively, during the three and nine months ended September 30, 2013 were used primarily to pay down our outstanding debt balance or to reinvest in new rental equipment assets. In response to changing economic conditions, we believe we have the flexibility to increase or decrease our capital expenditures to match our actual performance and needs. As of September 30, 2013, we had approximately $30.4 million of available borrowings under our revolving credit facilities, net of outstanding letters of credit and other reserves, and additionally, approximately $3.0 million of cash on hand; providing the company with $33.4 million of potential liquidity.

To service our debt, we will require a significant amount of cash.  Our ability to pay interest and principal on our indebtedness will depend upon our future operating performance, which will be affected by prevailing economic conditions and financial, business and other factors, some of which are beyond our control. Based on our current level of operations, we believe our cash flow from operations, available cash and available borrowings under the revolving credit facilities will be adequate to meet our future liquidity needs for the foreseeable future. The Essex Crane Credit Facility and Coast Crane Credit Facility mature in October 2016 and March 2017, respectively. The unsecured promissory notes mature in December 2013 and the Company is currently evaluating options that would potentially extend the maturity date of the notes. No assurance can be given that we will be able to refinance our credit facilities or other debt obligations prior to their respective maturity dates upon terms acceptable to us.

We cannot provide absolute assurance that our future cash flow from operating activities will be sufficient to meet our long-term obligations and commitments. If we are unable to generate sufficient cash flow from operating activities in the future to service our indebtedness and to meet our other commitments, we will be required to adopt one or more alternatives, such as refinancing or restructuring our indebtedness, selling material assets or operations or seeking to raise additional debt or equity capital. Given current economic and market conditions, including the significant disruptions in the global capital markets, we cannot assure investors that any of these actions could be affected on a timely basis or on satisfactory terms or at all, or that these actions would enable us to continue to satisfy our capital requirements. In addition, our existing or future debt agreements, including the indenture governing the revolving credit facilities, contain certain restrictive covenants, which may prohibit us from adopting any of these alternatives. Our failure to comply with these covenants could result in an event of default which, if not cured or waived, could result in the accelerations of all of our debt.

On March 15, 2013, the Essex Crane Revolving Credit Facility was amended and restated to extend the maturity to October 31, 2016. The amendment reduced the maximum amount Essex Crane is able to borrow to $175.0 million. The amendment also provided for increases in the applicable prime rate margin, euro-dollar LIBOR margin and unused line commitment fee to 1.75%, 3.75% and 0.375%, respectively. Under the amendment, the springing covenant threshold is eliminated and, instead, Essex Crane is required to have availability in excess of 10% of the outstanding commitment and is subject to a fixed charge coverage ratio of 1.10 to 1.00. Further, under the amendment, the aggregate commitment will be reduced by: (i) on an individual transaction basis, 100% of the net cash proceeds from the sales of certain assets and (ii) on an annual basis, 60% of free cash flow, as defined within the amended and restated revolving credit facility. In addition, the maximum commitment may not exceed $165.0 million, $150.0 million and $130.0 million beginning on March 31, 2014, March 31, 2015 and February 28, 2016, respectively. The amendment also provides for an annual limit on certain capital expenditures of $2.0 million and limits the ability of Essex Crane to make distributions to affiliates. All other material terms of the October 31, 2008 amendment remained in effect following such amendment.

On March 12, 2013, the Coast Crane Revolving Credit Facility was amended and restated to extend the maturity date to March 12, 2017. The amendment also provides for a $40.0 million term loan and reduces the aggregate maximum principal amount of the revolving loan and letter of credit facility to $35.0 million. In addition, the amendment provides for scheduled quarterly term loan payments to reduce the term loan principal outstanding by $0.5 million beginning on June 30, 2013. Amounts borrowed as a term loan which are repaid or prepaid may not be reborrowed. All other material terms of the May 7, 2012 amendment and restatement remained in effect following such amendment.

Seasonality

Although we believe our business traditionally is not materially impacted by seasonality, the demand for our rental equipment tends to be lower in the winter months. The level of equipment rental activities are directly related to infrastructure, commercial, residential and industrial construction and maintenance activities. Therefore, equipment rental performance will be correlated to the levels of current construction activities. The severity of weather conditions can have a temporary impact on the level of construction activities.

Equipment sales cycles are also subject to some seasonality with the peak selling period during the spring season and extending through the summer. Parts and service activities are traditionally affected to a lesser extent by changes in demand caused by seasonality. 

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Contractual Obligations

During the three and nine months ended September 30, 2013, there were no material changes outside the ordinary course of our business in our long-term debt other than described above with respect to the amendments to the Coast Crane Credit Facility and the Essex Crane Credit Facility, capital lease or purchase obligations or in other long-term liabilities disclosed in our Annual Report on Form 10-K for the year ended December 31, 2012.

Off-Balance Sheet Arrangements

During the three and nine months ended September 30, 2013, there were no material changes in the off-balance sheet arrangements disclosed in our Annual Report on Form 10-K for the year ended December 31, 2012.

Critical Accounting Policies

Item 7, included in Part II of our Annual Report on Form 10-K for the year ended December 31, 2012, presents the accounting policies and related estimates that we believe are the most critical to understanding our consolidated financial statements, financial condition, and results of operations and cash flows, and which require complex management judgment and assumptions, or involve uncertainties. These include, among other things, revenue recognition, the propriety of our estimated useful life of rental equipment and property and equipment, the adequacy of the allowance for doubtful accounts, income taxes, the potential impairment of long-lived assets including intangible assets and derivative financial instruments.

Information regarding our other significant accounting policies is included in Note 2 to our consolidated financial statements in Item 8 of Part II of our Annual Report on Form 10-K for the year ended December 31, 2012.

Item 3.  Quantitative and Qualitative Disclosures About Market Risk

Our earnings are affected by changes in interest rates due to the fact that interest on our revolving credit facilities is calculated based upon either LIBOR or Prime Rate plus an applicable margin as of September 30, 2013. The weighted average interest rate in effect on all of the Company’s borrowings at September 30, 2013 was 4.52%. A 1.0% increase in the effective interest rate on our total outstanding borrowings (including our short-term debt obligations) at September 30, 2013 would increase our interest expense by approximately $1.6 million on an annualized basis.

Item 4. Controls and Procedures

Management’s Quarterly Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in the reports that we file or submit under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required financial disclosure.

Our management, with participation of our Chief Executive Officer and Chief Financial Officer (our principal executive officer and principal financial officer, respectively), have evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(f) promulgated under the Exchange Act as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on this evaluation, our principal executive officer and principal financial officer have concluded that, as of September 30, 2013, our disclosure controls and procedures are effective to provide reasonable assurance that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by the SEC’s rules and forms and that such information is accumulated and communicated to the Company’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required financial disclosure.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal controls over financial reporting (as defined in Exchange Act Rule 13a-15(f)) that occurred during the three months ended September 30, 2013 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

From time to time, the Company is party to various legal actions in the normal course of our business.  We cannot estimate with certainty our ultimate legal and financial liability with respect to such pending matters.  Management believes that the Company is not party to any litigation that, if adversely determined, would have a material adverse effect on our business, financial condition, result of operations or cash flows.

Item 1A. Risk Factors

Part I, Item 1A — “Risk Factors,” of our Annual Report on Form 10-K for the year ended December 31, 2012, describes important factors that could materially affect our business, financial condition and/or future results and cause our operating results to differ materially from those indicated, projected or implied by forward-looking statements made in this Quarterly Report or presented elsewhere by management from time to time. The risks described in our Annual Report on Form 10-K are not the only risks facing our Company; additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results and cause our operating results to differ materially from those indicated, projected or implied by forward-looking statements made in this Quarterly Report or presented elsewhere by management from time to time.

There have been no material changes with respect to the risk factors previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2012.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.Issuer Purchases of Equity Securities

In October 2008, the Company's board of directors authorized a stock repurchase program, under which from time to time, in open market transactions at prevailing prices or through privately negotiated transactions as conditions permit. The Company may purchase up to $12 million of the Company's common stock and publicly-traded warrants of which approximately $9.0 million remained available at September 30, 2013.  Such repurchase plan was publicly announced on October 22, 2008. The Company’s stock repurchase program was suspended in May 2010 in conjunction with the launching of the cashless exercise warrant offer. 

Item 3. Defaults upon Senior Securities

None.

Item 4. Mine Safety Disclosures

None.

Item 5. Other Information

None.

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Item 6. Exhibits

A. Exhibits

31.1	Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

SIGNATURES

Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		ESSEX RENTAL CORP.
Dated:	November 6, 2013	By:	/s/ Ronald Schad
			Ronald Schad Chief Executive Officer (Principal Executive Officer)

Dated:	November 6, 2013	By:	/s/ Kory M. Glen
			Kory M. Glen Chief Financial Officer (Principal Financial and Accounting Officer)

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO RULE 13a-14(a)/15d-14(a)

AS ADOPTED PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, Ronald Schad certify that:

1. I have reviewed this quarterly report on Form 10-Q of Essex Rental Corp.;

2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such internal control and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation, to the registrant’s auditors and the audit committee of the registrant’s Board of Directors (or persons performing the equivalent function):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated:	November 6, 2013	By:	/s/ Ronald Schad
			Ronald Schad Chief Executive Officer (Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO RULE 13a-14(a)/15d-14(a)

AS ADOPTED PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, Kory M. Glen certify that:

1. I have reviewed this quarterly report on Form 10-Q of Essex Rental Corp.;

2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such internal control and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation, to the registrant’s auditors and the audit committee of the registrant’s Board of Directors (or persons performing the equivalent function):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated:	November 6, 2013	By:	/s/ Kory M. Glen
			Kory M. Glen Chief Financial Officer (Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906 OF

THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Essex Rental Corp. (the “Company”) on Form 10-Q for the period ended September 30, 2013 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Ronald Schad, Chief Executive Officer of the Company, and Kory M. Glen, Chief Financial Officer of the Company, each certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:	November 6, 2013	By:	/s/ Ronald Schad
			Ronald Schad Chief Executive Officer (Principal Executive Officer)

Dated:	November 6, 2013	By:	/s/ Kory M. Glen
			Kory M. Glen Chief Financial Officer (Principal Financial Officer)

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Stock Based Compensation

9 Months Ended

Sep. 30, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Based Compensation

Stock Based Compensation

The Company may issue up to 1,500,000 shares of common stock pursuant to its 2011 Long-term Incentive Plan to employees, non-employee directors and consultants of the Company. The Company may issue up to 1,575,000 shares of common stock pursuant to its 2008 Long-term Incentive Plan to employees, non-employee directors and consultants of the Company. Options to purchase shares of common stock are granted at its market price on the grant date and expire ten years from issuance.

Stock Options

Stock options granted to employees have a 10 year life and vest one-third annually beginning one year from the date of issue. The Company calculates stock option compensation expense based on the grant date fair value of the award and recognizes expense on a straight-line basis over the three year service period of the award. The Company has granted to certain key members of management options to purchase 100,000 shares at $4.26 per share, 423,750 shares at $5.58 per share, 485,969 shares at $6.45 per share, and 565,000 shares at $4.50 per share on grant dates of June 18, 2013, January 14, 2011, March 18, 2010, and December 18, 2008, respectively.

The fair values of the stock options granted are estimated at the date of grant using the Black-Scholes option pricing model. The model is sensitive to changes in assumptions which can materially affect the fair value estimate. The Company’s method of estimating expected volatility for the 2008 and 2010 option grants was based on the volatility of its peers since the Company only had operations for a short period of time as of the grant date. The Company’s method of estimating the expected volatility for the 2011 and 2013 option grant was based on the volatility of its own common shares outstanding. The expected dividend yield was estimated based on the Company’s expected dividend rate over the term of the options. The expected term of the options was based on management’s estimate, and the risk-free rate is based on U.S. Treasuries with a term approximating the expected life of the options.

Based on the results of the model, the weighted average fair value of the stock options granted were $2.79, $3.19, $3.76 and $2.54 per share for the options granted on June 18, 2013, January 14, 2011, March 18, 2010, and December 18, 2008, respectively, using the following assumptions: 

	Grant Date
	2013			2011			2010			2008
Expected dividend yield	—		%	—		%	—		%	—		%
Risk-free interest rate	1.33		%	2.31		%	2.79		%	1.43		%
Expected volatility	75.00		%	60.00		%	61.00		%	61.00		%
Expected life of option	6 years			6 years			6 years			6 years
Grant date fair value	$	278,589		$	1,351,763		$	1,827,243		$	1,434,671

On May 31, 2013, the Company entered into a separation agreement with its former Chief Financial Officer. In accordance with the terms of the separation agreement, and as permitted under the terms of the applicable option awards, the Company agreed that options awarded to the former Chief Financial Officer on December 18, 2008 and January 14, 2011, to the extent vested, will remain exercisable until the ten year anniversary of the applicable grant date, instead of expiring 90 days following the date the former Chief Financial Officer's employment was terminated, as provided in the option award agreements. As a result of the modification, the Company incurred additional non-cash stock compensation expense of approximately $0.4 million during the nine months ended September 30, 2013. Additionally, the separation agreement resulted in the forfeiture of 111,773 vested options issued under the March 18, 2010 option grant. The unvested portion of options previously awarded to the Company's Chief Financial Officer were also forfeited upon the termination of his employment.

Restricted Shares of Common Stock

On June 18, 2013, the Company granted to a key member of management 67,500 shares of restricted common stock with an aggregate grant date fair value of $287,550. One-third of the restricted shares are scheduled to vest on June 18, 2014, June 18, 2015 and June 18, 2016, respectively, and as such, no shares were vested as of September 30, 2013.

On January 3, 2011, the Company granted to certain employees 166,943 shares of restricted common stock with an aggregate grant date fair value of $926,485. One half of these restricted shares vested on January 3, 2012 and the remainder vested on January 3, 2013, and as such, 166,943 were vested as of September 30, 2013.

The Company recorded $0.1 million and $0.4 million of non-cash compensation expense associated with stock options and restricted shares in selling, general and administrative expenses for the three months ended September 30, 2013 and 2012, respectively. The Company recorded $0.7 million and $1.1 million of non-cash compensation expense associated with stock options and restricted shares in selling, general and administrative expenses for nine months ended September 30, 2013 and 2012, respectively. There was approximately $0.6 million and $0.5 million of total unrecognized compensation cost as of September 30, 2013 and December 31, 2012, respectively related to non-vested stock option and restricted share awards. The remaining cost is expected to be recognized ratably over the remaining respective vesting periods.

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Consolidated Statements Of Operations (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
REVENUES
Equipment rentals	$ 11,802,108	$ 12,555,822	$ 35,446,954	$ 33,740,727
Retail parts sales	1,827,058	2,409,846	5,777,781	7,064,042
Transportation	1,349,316	1,601,592	4,420,306	5,076,221
Equipment repairs and maintenance	2,792,684	3,223,929	9,182,230	9,975,077
Revenues	22,808,138	24,140,235	73,086,347	75,069,259
COST OF REVENUES
Salaries, payroll taxes and benefits	2,672,555	2,651,730	8,173,718	8,357,781
Depreciation	4,652,113	5,102,680	13,980,856	15,488,491
Retail parts sales	1,475,017	1,766,785	4,456,188	5,253,436
Transportation	1,399,513	1,526,528	4,340,788	4,561,182
Equipment repairs and maintenance	2,283,224	2,426,689	7,762,412	7,792,362
Yard operating expenses	789,977	737,556	2,332,253	2,293,875
TOTAL COST OF REVENUES	17,351,889	17,780,339	55,544,312	59,978,681
GROSS PROFIT	5,456,249	6,359,896	17,542,035	15,090,578
Selling, general and administrative expenses	5,722,543	6,625,267	18,116,553	20,158,088
Other depreciation and amortization	250,914	321,893	793,241	958,348
LOSS FROM OPERATIONS	(517,208)	(587,264)	(1,367,759)	(6,025,858)
OTHER INCOME (EXPENSES)
Other income	553,469	30,435	559,058	32,861
Interest expense	(3,075,077)	(2,875,405)	(8,575,553)	(8,658,387)
Foreign currency exchange gains (losses)	106,094	140,685	(222,375)	85,605
TOTAL OTHER INCOME (EXPENSES)	(2,415,514)	(2,704,285)	(8,238,870)	(8,539,921)
LOSS BEFORE INCOME TAXES	(2,932,722)	(3,291,549)	(9,606,629)	(14,565,779)
BENEFIT FOR INCOME TAXES	(1,030,118)	(1,231,923)	(3,608,803)	(4,917,814)
NET LOSS	(1,902,604)	(2,059,626)	(5,997,826)	(9,647,965)
Weighted average shares outstanding:
Basic (shares)	24,653,513	24,555,818	24,639,667	24,541,462
Diluted (shares)	24,653,513	24,555,818	24,639,667	24,541,462
Loss per share:
Basic (usd per share)	$ (0.08)	$ (0.08)	$ (0.24)	$ (0.39)
Diluted (usd per share)	$ (0.08)	$ (0.08)	$ (0.24)	$ (0.39)
Retail
REVENUES
Equipment sales	3,772,051	1,231,984	8,336,980	3,425,936
COST OF REVENUES
Equipment sales	3,250,194	1,087,227	7,058,671	2,914,330
Used Rental
REVENUES
Equipment sales	1,264,921	3,117,062	9,922,096	15,787,256
COST OF REVENUES
Equipment sales	$ 829,296	$ 2,481,144	$ 7,439,426	$ 13,317,224

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Intangible Assets

9 Months Ended

Sep. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Intangible Assets

As of September 30, 2013 and December 31, 2012, goodwill related to the acquisition of Coast Crane's assets was approximately $1.8 million. Goodwill represents the excess of the total consideration transferred over the fair value of the identifiable assets acquired, net of liabilities assumed.

The following table presents the gross carrying amount, accumulated amortization and net carrying amount of the Company’s other identifiable finite lived intangible assets at September 30, 2013:

	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Other identifiable intangible assets:
Essex Crane customer relationship	$	784,826	$	(784,826	)	$	—
Essex Crane trademark	804,130		(804,130		)	—
Coast Crane customer relationship	1,500,000		(607,143		)	892,857
Coast Crane trademark	600,000		(340,000		)	260,000
	$	3,688,956	$	(2,536,099	)	$	1,152,857

The following table presents the gross carrying amount, accumulated amortization and net carrying amount of the Company’s other identifiable intangible assets at December 31, 2012:

	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Other identifiable intangible assets:
Essex Crane customer relationship	$	784,826	$	(784,826	)	$	—
Essex Crane trademark	804,130		(804,130		)	—
Coast Crane customer relationship	1,500,000		(446,429		)	1,053,571
Coast Crane trademark	600,000		(250,000		)	350,000
	$	3,688,956	$	(2,285,385	)	$	1,403,571

The gross carrying amount of the Essex Crane customer relationship intangible was reduced by $0 for the three months ended September 30, 2012 and $64,591 for the nine months ended September 30, 2012 as a result of the recognition of the tax benefit related to excess tax deductible goodwill. The gross carrying amount of the Essex Crane trademark intangible was reduced by $0 for the three months ended September 30, 2012 and $70,191 for the nine months ended September 30, 2012 as a result of the recognition of the tax benefit related to excess tax deductible goodwill. The net carrying amounts of the Essex Crane customer relationship and trademark were reduced to zero as a result of the tax benefit related to excess tax deductible goodwill and amortization during the nine months ended September 30, 2012.

The Company’s amortization expense associated with other intangible assets was $83,571 for each of the three months ended September 30, 2013 and 2012. The Company’s amortization expense associated with other intangible assets was $250,714 and $271,995 for the nine months ended September 30, 2013 and 2012, respectively.

The following table presents the estimated future amortization expense related to intangible assets as of September 30, 2013 for the years ended December 31:

2013	$	83,571
2014	334,286
2015	324,286
2016	214,286
2017	196,428
Total	$	1,152,857

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Derivatives and Hedging Activities - Interest Rate Swap Agreements (Tables)

9 Months Ended

Sep. 30, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of the Effect of Derivative Financial Instruments on Income Statement

The table below presents the effect of the Company’s derivative financial instruments on the consolidated statement of operations for the nine months ended September 30, 2013 and 2012.  These amounts are presented as other comprehensive income (loss) (“OCI”).

Derivatives in Cash Flow Hedging Relationships	Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion)			Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)			Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
For the Nine Months Ended September 30, 2013
Interest Rate Swap	$	—		Interest expense	$	—		Other income / (expense)	$	—
For the Nine Months Ended September 30, 2012
Interest Rate Swap	$	(219,421	)	Interest expense	$	(1,876,317	)	Other income / (expense)	$	—

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Common Stock and Warrants

9 Months Ended

Sep. 30, 2013

Equity [Abstract]

Common Stock and Warrants

Common Stock and Warrants

In October 2008 our Board of Directors authorized a stock and warrant repurchase program, under which the Company may purchase, from time to time, in open market transactions at prevailing prices or through privately negotiated transactions as conditions permit, up to $12.0 million of the Company’s outstanding common stock and warrants. The Company’s stock repurchase program was suspended in May 2010 in conjunction with the launching of the cashless exercise warrant offer. Repurchases of our common stock and warrants were funded with cash flows of the business.

In November 2010, in conjunction with the issuance of the unsecured promissory notes, the Company issued 90,000 warrants entitling the holders to purchase from the Company one share of common stock at an exercise price of $0.01, which expire on December 31, 2013. The fair value of the warrants on the issuance date was $296,400. See Note 4 for further discussion.

The Company issued 43,715 and 56,868 shares of common stock, respectively, for services provided by the members of the Strategic Planning and Finance Committee of the Board of Directors during the nine months ended September 30, 2013 and 2012, respectively. The Company issued 83,469 and 83,474 shares of restricted common stock to certain employees during the nine months ended September 30, 2013 and 2012, respectively. The Company withheld 29,489 and 12,616 common shares to cover the employee tax obligation related to the restricted shares issuance during the nine months ended September 30, 2013 and 2012, respectively.

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Commitments, Contingencies and Related Party Transactions - Additional Information (Detail) (USD $)	1 Months Ended			1 Months Ended		3 Months Ended		9 Months Ended
	Nov. 30, 2010	Sep. 30, 2013	Dec. 31, 2012	Nov. 30, 2010 Coast Crane Ltd.	Nov. 30, 2010 Coast Crane Ltd. Maximum	Sep. 30, 2013 Hyde Park Real Estate LLC	Sep. 30, 2012 Hyde Park Real Estate LLC	Sep. 30, 2013 Hyde Park Real Estate LLC	Sep. 30, 2012 Hyde Park Real Estate LLC
Commitments and Contingencies Disclosure [Line Items]
Monthly rent payment								$ 7,688
Rent expense						23,000	23,000	69,000	69,000
Debt conversion, converted instrument, amount				5,200,000
Unsecured promissory notes				5,200,000
Warrants issued	90,000				90,000
Share price				$ 0.01
Gross personal property taxes liability		3,200,000	3,000,000
Contractual customer receivable		$ 1,900,000	$ 2,000,000

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Accumulated Other Comprehensive Income Reclassifications - Reclassifications from Accumulated Other Comprehensive Income (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Reclassification out of Accumulated Other Comprehensive Income [Line Items]
Interest Expense	$ (3,075,077)	$ (2,875,405)	$ (8,575,553)	$ (8,658,387)
Benefit for Income Taxes	1,030,118	1,231,923	3,608,803	4,917,814
Net Loss	0	383,253	0	1,138,258
Gains and Losses on Designated Cash Flow Hedge
Reclassification out of Accumulated Other Comprehensive Income [Line Items]
Net Loss	0	383,253	0	1,138,258
Gains and Losses on Designated Cash Flow Hedge | Amount Reclassified from Accumulated Other Comprehensive Income
Reclassification out of Accumulated Other Comprehensive Income [Line Items]
Interest Expense		(632,437)		(1,876,317)
Benefit for Income Taxes		249,184		738,059
Net Loss		$ (383,253)		$ (1,138,258)

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Stock Based Compensation (Tables)

9 Months Ended

Sep. 30, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Assumptions Used To Determine Fair Value of Options Granted

Based on the results of the model, the weighted average fair value of the stock options granted were $2.79, $3.19, $3.76 and $2.54 per share for the options granted on June 18, 2013, January 14, 2011, March 18, 2010, and December 18, 2008, respectively, using the following assumptions: 

	Grant Date
	2013			2011			2010			2008
Expected dividend yield	—		%	—		%	—		%	—		%
Risk-free interest rate	1.33		%	2.31		%	2.79		%	1.43		%
Expected volatility	75.00		%	60.00		%	61.00		%	61.00		%
Expected life of option	6 years			6 years			6 years			6 years
Grant date fair value	$	278,589		$	1,351,763		$	1,827,243		$	1,434,671

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Earnings per Share and Comprehensive Income (Tables)

9 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings Per Share

The following tables set forth the computation of basic and diluted earnings per share:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Net loss	$	(1,902,604	)	$	(2,059,626	)	$	(5,997,826	)	$	(9,647,965	)
Weighted average shares outstanding:
Basic	24,653,513			24,555,818			24,639,667			24,541,462
Effect of dilutive securities:
Warrants	—			—			—			—
Options	—			—			—			—
Diluted	24,653,513			24,555,818			24,639,667			24,541,462
Basic earnings (loss) per share	$	(0.08	)	$	(0.08	)	$	(0.24	)	$	(0.39	)
Diluted earnings (loss) per share	$	(0.08	)	$	(0.08	)	$	(0.24	)	$	(0.39	)

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Segment Information - Reportable Segments Related to Revenues and Gross Profit (Detail) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Segment revenues
Total revenues	$ 22,808,138	$ 24,140,235	$ 73,086,347	$ 75,069,259
Segment gross profit
Total gross profit	5,456,249	6,359,896	17,542,035	15,090,578
Equipment rentals
Segment revenues
Total revenues	14,416,345	17,274,476	49,789,356	54,604,204
Segment gross profit
Total gross profit	3,805,321	4,680,065	12,553,710	10,459,460
Equipment distribution
Segment revenues
Total revenues	3,772,051	1,231,984	8,336,980	3,425,936
Segment gross profit
Total gross profit	368,143	(4,427)	806,861	60,237
Parts and service
Segment revenues
Total revenues	4,619,742	5,633,775	14,960,011	17,039,119
Segment gross profit
Total gross profit	$ 1,282,785	$ 1,684,258	$ 4,181,464	$ 4,570,881

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Derivatives and Hedging Activities - Interest Rate Swap Agreements - Additional Information (Detail) (USD $)	9 Months Ended			3 Months Ended	9 Months Ended		0 Months Ended	3 Months Ended	9 Months Ended	3 Months Ended	9 Months Ended
	Sep. 30, 2012 interest_rate_swap	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2012 Essex Crane Interest Rate Swap	Sep. 30, 2012 Essex Crane Interest Rate Swap	Nov. 30, 2008 Essex Crane Interest Rate Swap	Nov. 24, 2010 Coast Crane Interest Rate Swap interest_rate_swap	Sep. 30, 2012 Coast Crane Interest Rate Swap	Sep. 30, 2012 Coast Crane Interest Rate Swap	Sep. 30, 2012 Designated as Hedging Instrument Interest rate swap agreements	Sep. 30, 2013 Designated as Hedging Instrument Interest rate swap agreements	Sep. 30, 2012 Designated as Hedging Instrument Interest rate swap agreements	Sep. 30, 2012 Designated as Hedging Instrument Interest rate swap agreements Interest Expense [Member]
Derivative [Line Items]
Number of interest rate swaps	4						3
Derivative, Notional Amount						$ 100,000,000	$ 7,000,000
Fixed interest rate						2.71%	5.62%
Total interest rate						4.96%
Hedge ineffectiveness recorded	0
Change in net unrealized loss on derivative designated as cash flow hedge				600,000	1,700,000
Change in net unrealized loss on derivative designated as cash flow hedge, net of tax				400,000	1,000,000
Derivative maturity date							May 18, 2012
Unrealized gain from change in fair value of assumed swaps								0	400,000
Weighted average interest rate of total debt outstanding		4.52%	3.49%
Interest expense										$ 600,000	$ 0	$ 1,876,317	$ 1,900,000

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Earnings per Share and Comprehensive Income - Additional Information (Detail) (USD $)	3 Months Ended		9 Months Ended			1 Months Ended	9 Months Ended	3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Nov. 30, 2010	Mar. 30, 2007 Underwriters Purchase Option stock_warrant unit	Sep. 30, 2012 Underwriters Purchase Option	Sep. 30, 2013 Restricted Stock	Sep. 30, 2012 Restricted Stock	Sep. 30, 2013 Restricted Stock	Sep. 30, 2012 Restricted Stock	Sep. 30, 2013 Stock Options	Sep. 30, 2012 Stock Options	Sep. 30, 2013 Stock Options	Sep. 30, 2012 Stock Options	Sep. 30, 2013 Warrants	Sep. 30, 2012 Warrants	Sep. 30, 2013 Warrants	Sep. 30, 2012 Warrants
Earnings Per Share Disclosure [Line Items]
Shares of common stock for effective conversion of retained interest in Holdings	493,670	632,911	493,670	632,911
Initial public offering units						600,000
UPO exercisable, weighted average exercise price						$ 8.80
Number of shares of common stock per each Underwriter Purchase Option						1
Number of stock warrants per each Underwriter Purchase Option						1
Number of shares of common stock issued upon exercise of each warrant						1
Warrants exercise price						$ 5.00
UPO expires						Mar. 04, 2012
Shares/Units that were not included in computation of diluted earnings per share							0	3,931	82,685	1,738	83,469	74,259	41,987	82,433	8,514	89,779	89,764	89,783	89,749
Warrants, outstanding																	90,000		90,000
Stock options, outstanding												1,430,459	1,474,719	1,430,459	1,474,719
Warrants exercisable, weighted average exercise price					0.01												0.01		0.01
Stock options exercisable, weighted average exercise price												$ 5.29	$ 5.45	$ 5.29	$ 5.45

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Intangible Assets Intangible Assets (Future Amortization) (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Estimated Future Amortization Expense Related to Intangible Assets
2013	$ 83,571
2014	334,286
2015	324,286
2016	214,286
2017	196,428
Net Carrying Amount	$ 1,152,857	$ 1,403,571

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Stock Based Compensation - Weighted Average Fair value of Stock Options Granted (Detail) (USD $)	0 Months Ended		1 Months Ended	29 Months Ended
	Mar. 18, 2010	Dec. 18, 2008	Jan. 14, 2011	Jun. 18, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Expected dividend yield	0.00%	0.00%	0.00%	0.00%
Risk-free interest rate	2.79%	1.43%	2.31%	1.33%
Expected volatility	61.00%	61.00%	60.00%	75.00%
Expected life of option	6 years	6 years	6 years	6 years
Grant date fair value	$ 1,827,243	$ 1,434,671	$ 1,351,763	$ 278,589

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Accumulated Other Comprehensive Income Reclassifications (Tables)

3 Months Ended

9 Months Ended

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Equity [Abstract]

Schedule of Changes in Accumulated Other Comprehensive Income by Component of Net Tax

The following table presents the Company's changes in accumulated other comprehensive income by component net of tax for the three months ended September 30, 2013:

	Gains and Losses on Designated Cash Flow Hedge (1)		Foreign Currency Translation Adjustments (1)			Total (1)
Beginning balance	$	—	$	6,003		$	6,003
Other comprehensive income (loss) before reclassifications	—		(2,106		)	(2,106		)
Amounts reclassified from accumulated other comprehensive income	—		—			—
Net current period other comprehensive income (loss)	—		(2,106		)	(2,106		)
Ending balance	$	—	$	3,897		$	3,897

(1) Amounts in parenthesis indicate debits.

The following table presents the Company's changes in accumulated other comprehensive income by component net of tax for the three months ended September 30, 2012:

	Gains and Losses on Designated Cash Flow Hedge (1)			Foreign Currency Translation Adjustments (1)		Total (1)
Beginning balance	$	(627,438	)	$	4,918	$	(622,520	)
Other comprehensive income (loss) before reclassifications	(11,977		)	17,697		5,720
Amounts reclassified from accumulated other comprehensive income	383,253			—		383,253
Net current period other comprehensive income (loss)	371,276			17,697		388,973
Ending balance	$	(256,162	)	$	22,615	$	(233,547	)

(1) Amounts in parenthesis indicate debits.

The following table presents the Company's changes in accumulated other comprehensive income by component net of tax for the nine months ended September 30, 2013:

	Gains and Losses on Designated Cash Flow Hedge (1)		Foreign Currency Translation Adjustments (1)			Total (1)
Beginning balance	$	—	$	9,979		9,979
Other comprehensive income (loss) before reclassifications	—		(6,082		)	(6,082	)
Amounts reclassified from accumulated other comprehensive income	—		—			—
Net current period other comprehensive income (loss)	—		(6,082		)	(6,082	)
Ending balance	$	—	$	3,897		3,897

(1) Amounts in parenthesis indicate debits.

The following table presents the Company's changes in accumulated other comprehensive income by component net of tax for the nine months ended September 30, 2012:

	Gains and Losses on Designated Cash Flow Hedge (1)			Foreign Currency Translation Adjustments (1)			Total (1)
Beginning balance	$	(1,260,232	)	$	(10,618	)	$	(1,270,850	)
Other comprehensive income (loss) before reclassifications	(134,188		)	33,233			(100,955		)
Amounts reclassified from accumulated other comprehensive income	1,138,258			—			1,138,258
Net current period other comprehensive income (loss)	1,004,070			33,233			1,037,303
Ending balance	$	(256,162	)	$	22,615		$	(233,547	)

(1) Amounts in parenthesis indicate debits.

Schedule of Impact of Reclassification from Accumulated Other Comprehensive Income

The following table presents the impact of the reclassifications from accumulated other comprehensive income on the consolidated statement of operations for the three months ended September 30, 2012:

	Amount Reclassified from Accumulated Other Comprehensive Income			Affected Line Item in the Consolidated Statement of Operations
Losses on designated cash flow hedge
Interest rate swap	$	(632,437	)	Interest Expense
Tax benefit	249,184			Benefit for Income Taxes
Effect on net loss	$	(383,253	)	Net Loss

(1) Amounts in parenthesis indicate debits.

The following table presents the impact of the reclassifications from accumulated other comprehensive income on the consolidated statement of operations for the nine months ended September 30, 2012:

	Amount Reclassified from Accumulated Other Comprehensive Income			Affected Line Item in the Consolidated Statement of Operations
Losses on designated cash flow hedge
Interest rate swap	$	(1,876,317	)	Interest Expense
Tax benefit	738,059			Benefit for Income Taxes
Effect on net loss	$	(1,138,258	)	Net Loss

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Consolidated Statements Of Comprehensive Loss (Parenthetical) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Statement of Comprehensive Income [Abstract]
Change in fair value of interest rate swap, net	$ 0	$ 241,397	$ 0	$ 652,826

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Business and Principles of Consolidation

9 Months Ended

Sep. 30, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Business and Principles of Consolidation

Business and Principles of Consolidation

The accompanying consolidated financial statements include the accounts of Essex Rental Corp. (“Essex Rental”) and its wholly owned subsidiaries Essex Holdings, LLC ("Holdings"), Essex Crane Rental Corp. ("Essex Crane"), Essex Finance Corp. (“Essex Finance”), CC Acquisition Holding Corp. (“CC Acquisition”), Coast Crane Company, formerly known as CC Bidding Corp. (“Coast Crane”) and Coast Crane Ltd. (“Coast Crane Ltd.") (collectively the "Company"). All intercompany accounts and transactions have been eliminated in consolidation. 

The Company is engaged primarily in renting lattice boom crawler cranes and attachments, tower cranes and attachments, rough terrain cranes, boom trucks and other related heavy lifting machinery and equipment to the construction industry throughout the United States of America, including Hawaii and Alaska, and Canada. The assets are rented for use in building and maintaining power plants, refineries, bridge and road construction, alternative energy, water treatment facilities and other industrial, commercial, residential and infrastructure related projects. The Company is also engaged in servicing and distributing heavy lifting machinery and other construction related equipment and parts.

The accompanying consolidated financial statements of the Company include all adjustments (consisting of normal recurring adjustments) which management considers necessary for the fair presentation of the Company’s operating results, financial position and cash flows as of and for all periods presented. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been omitted from these unaudited financial statements in accordance with applicable rules.

The results of operations for the three and nine months ended September 30, 2013 are not necessarily indicative of the results to be expected for the full year ending December 31, 2013. For further information, please refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.

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Revolving Credit Facilities and Other Debt Obligations

9 Months Ended

Sep. 30, 2013

Debt Disclosure [Abstract]

Revolving Credit Facilities and Other Debt Obligations

Revolving Credit Facilities and Other Debt Obligations

The Company’s revolving credit facilities and other debt obligations consist of the following: 

	Principal Outstanding at				Weighted Average Interest as of	Maturity
	September 30, 2013		December 31, 2012		September 30, 2013	Date Ranges
Essex Crane revolving credit facility	$	148,301,312	$	151,286,537	3.95%	October 2016
Coast Crane revolving credit facility	18,513,670		59,306,372		5.49%	March 2017
Term loan	37,000,000		—		5.25%	June 2014 - March 2017
Term loan - short-term	2,000,000		—		5.25%	within 1 year
Unsecured promissory notes (related party) (1)	5,202,968		5,130,870		11.90%	December 2013
Purchase money security interest debt	2,180,806		2,147,349		4.64%	September 2015-October 2018
Purchase money security interest debt - short-term	1,009,865		828,610		4.64%	within 1 year
Total debt obligations outstanding	$	214,208,621	$	218,699,738

(1) Includes the impact on interest expense from the accretion of the discount related to the detachable warrants issued with the debt. See "Unsecured Promissory Notes" discussion within this footnote for further discussion.

Essex Crane Revolving Credit Facility

In conjunction with the acquisition of Holdings on October 31, 2008, Essex Crane amended its senior secured revolving line of credit facility (“Essex Crane Revolving Credit Facility”), which permitted it to borrow up to $190.0 million with a $20.0 million aggregate sublimit for letters of credit. Essex Crane may borrow up to an amount equal to the sum of 85% of eligible net receivables and 75% of the net orderly liquidation value of eligible rental equipment. The Essex Crane Revolving Credit Facility is collateralized by a first priority security interest in substantially all of Essex Crane’s assets.

On March 15, 2013, the Essex Crane Revolving Credit Facility was amended and restated to extend the maturity to October 31, 2016. The amendment reduced the maximum amount Essex Crane is able to borrow to $175.0 million. The amendment also provided for increases in the applicable prime rate margin, Euro-dollar LIBOR margin and unused line commitment fee to 1.75%, 3.75% and 0.375%, respectively. Under the amendment, the springing covenant threshold is eliminated and, instead, Essex Crane is required to have availability in excess of 10% of the outstanding commitment and is subject to a fixed charge coverage ratio of 1.10 to 1.00. Further, under the amendment, the aggregate commitment will be reduced by: (i) on an individual transaction basis, 100% of the net cash proceeds from the sales of certain assets and (ii) on an annual basis commencing in 2014, 60% of free cash flow, other than net cash proceeds from certain asset sales, as defined within the amended and restated revolving credit facility. In addition, the maximum commitment may not exceed $165.0 million, $150.0 million and $130.0 million beginning on March 31, 2014, March 31, 2015 and February 28, 2016, respectively. The amendment also provides for an annual limit on certain capital expenditures of $2.0 million and limits the ability of Essex Crane to make distributions to affiliates. All other terms of the October 31, 2008 amendment remained in effect following such amendment.

Borrowings under the Essex Crane Revolving Credit Facility, as amended, accrue interest at the borrower’s option of either (a) the bank’s prime rate (3.25% at September 30, 2013) plus an applicable margin or (b) a Euro-dollar rate based on the rate the bank offers deposits of U.S. Dollars in the London interbank market (“LIBOR”) (0.18% at September 30, 2013) plus an applicable margin. Essex Crane is also required to pay a monthly commitment fee with respect to the undrawn commitments under the Essex Crane Revolving Credit Facility. At September 30, 2013, the applicable prime rate margin, Euro-dollar LIBOR margin, and unused line commitment fee were 1.75%, 3.75% and 0.375%, respectively. At December 31, 2012 (prior to the amendment described above), the applicable prime rate margin, Euro-dollar LIBOR margin, and unused line commitment fee were 0.25%, 2.25% and 0.25%, respectively.

The maximum amount that could be borrowed under the Essex Crane Revolving Credit Facility, net of letters of credit, interest rate swaps and other reserves was approximately $170.5 million and $185.8 million as of September 30, 2013 and December 31, 2012, respectively. Essex Crane’s available borrowing under its revolving credit facility was approximately $22.1 million and $34.5 million as of September 30, 2013 and December 31, 2012, respectively. As of September 30, 2013, there was $10.1 million of available formulated collateral in excess of the maximum borrowing amount of $170.5 million Although the Essex Crane Revolving Credit Facility limits Essex Crane’s ability to incur additional indebtedness, Essex Crane is permitted to incur certain additional indebtedness, including secured purchase money indebtedness of up to $1.5 million outstanding at any time, subject to certain conditions set forth in the Essex Crane Revolving Credit Facility.

As of September 30, 2013 and for the three and nine months then ended, Essex Crane was in compliance with the covenants and other provisions set forth in the Essex Crane Revolving Credit Facility, as amended.  Any failure to be in compliance with any material provision or covenant of these agreements could have a material adverse effect on the Company’s liquidity and operations.

Coast Crane Revolving Credit Facility

On November 24, 2010, Coast Crane entered into a new revolving credit facility in conjunction with the acquisition of Coast Crane's assets (the “Coast Crane Revolving Credit Facility”).  The Coast Crane Revolving Credit Facility provided for a revolving loan and letter of credit facility in the maximum aggregate principal amount of $75.0 million with a $2.0 million aggregate principal sublimit for letters of credit.   Coast Crane’s ability to borrow under the Coast Crane Revolving Credit Facility is subject to, among other things, a borrowing base calculated based on  the sum of (a) 85% of eligible accounts, (b) the lesser of 50% of eligible spare parts inventory and $5.0 million, (c) the lesser of 95% of the lesser of (x) the net orderly liquidation value and (y) the invoice cost, of eligible new equipment inventory and $15.0 million and (d) 85% of the net orderly liquidation value of eligible other equipment, less reserves established by the lenders and the liquidity reserve.

On November 14, 2011 the Coast Crane Revolving Credit Facility was amended and restated to include Coast Crane Ltd. as a signatory to the credit facility. The amendment provided that equipment owned by Coast Crane located in Canada may be included in the borrowing base calculation, which was previously prohibited. As amended, the Coast Crane Revolving Credit Facility agreement is collateralized by a first priority security interest in substantially all of Coast Crane’s and Coast Crane Ltd.’s assets.

Proceeds of the first borrowing under the amended Coast Crane Revolving Credit Facility in the amount of $1.5 million were used to pay off the remaining balance on the Coast Crane Ltd.'s revolving credit facility at the time of its termination in November 2011.

On May 7, 2012, the Coast Crane Revolving Credit Facility was amended to provide certain limitations on net capital expenditures and a $3.7 million “first amendment reserve” (as defined in the Coast Crane Revolving Credit Facility). The amendment also provides for a modified fixed charge coverage ratio of 1.20 to 1.00 as well as an obligation of Essex to contribute, or cause to be contributed, to Coast Crane up to $2.5 million to the extent that EBITDA for Coast Crane for the year ending December 31, 2012 was less than $6.0 million. Coast Crane EBITDA for the year ended December 31, 2012 exceeded the $6.0 million threshold and no contribution from Essex was required. The amendment also reduced the amount of certain additional indebtedness, including secured purchase money indebtedness, that Coast Crane may incur to $7.0 million for the year ending December 31, 2012 and $10.0 million thereafter. All other terms of the November 14, 2011 amendment and restatement remained in effect following such amendment.

A definitional interpretation resulted in Coast Crane's lenders determining that the springing fixed charge coverage ratio of 1.20 to 1.00 (which under the Coast Crane Revolving Credit Facility was triggered if Coast Crane's borrowing availability fell below $8.0 million) was triggered notwithstanding that Coast Crane and Coast Crane Ltd. had combined excess availability of $9.5 million, $8.4 million and $8.5 million as of January 31, 2012, February 29, 2012 and March 31, 2012, respectively. The modified fixed charge coverage ratio included in the May 7, 2012 amendment replaced the springing trailing twelve month fixed charge coverage ratio. The May 7, 2012 amendment also addressed and waived Coast Crane’s non-compliance (which existed as of March 31, 2012) with certain delivery and reporting requirements contained in the Coast Crane Revolving Credit Facility.

On March 12, 2013, the Coast Crane Revolving Credit Facility was amended and restated to extend the maturity date to March 12, 2017. The amendment also provides for a $40.0 million term loan and reduces the aggregate maximum principal amount of the revolving loan and letter of credit facility by a corresponding amount to $35.0 million. In addition, the amendment provides for scheduled quarterly term loan payments to reduce the term loan principal outstanding by $0.5 million beginning on June 30, 2013. The amounts borrowed under the term loan which are repaid or prepaid may not be reborrowed. All other terms of the May 7, 2012 amendment and restatement remained in effect following such amendment.

Interest accrues on Coast Crane's outstanding revolving loans and term loan under the revolving credit facility at either a per annum rate equal to (a) LIBOR plus 3.75%, with a 1.50% LIBOR floor or (b) the Base rate plus 2.75%, at Coast Crane’s election. Coast Crane will be obligated to pay a letter of credit fee on the outstanding letter of credit accommodations based on a per annum rate of 3.75%. Interest on the revolving loans and fees on the letter of credit accommodations is payable monthly in arrears. Coast Crane is also obligated to pay an unused line fee on the amount by which the maximum credit under the Coast Crane Revolving Credit Facility exceeds the aggregate amount of revolving loans and letter of credit accommodations based on a per annum rate of 0.50%. At September 30, 2013, the applicable LIBOR rate, Base rate, and unused line commitment fee were 0.25%, 3.25% and 0.50%, respectively. At December 31, 2012, the applicable LIBOR rate, Base rate, and unused line commitment fee were 0.31%, 3.25% and 0.50%, respectively.

The maximum amount that could be borrowed under the revolving loans under the Coast Crane Revolving Credit Facility was approximately $35.0 million and $66.2 million as of September 30, 2013 and December 31, 2012, respectively. Coast Crane’s available borrowing under the Coast Crane Revolving Credit Facility was approximately $8.3 million and $6.9 million, respectively, after certain lender reserves of $8.2 million and $8.8 million as of September 30, 2013 and December 31, 2012, respectively. As of September 30, 2013 and December 31, 2012, there was approximately $0.8 million and $0.2 million, respectively, of available formulated collateral in excess of the maximum borrowing amount of $75.0 million. Although the Coast Crane Revolving Credit Facility limits Coast Crane’s and Coast Crane Ltd.’s ability to incur additional indebtedness, Coast Crane and Coast Crane Ltd. are permitted to incur certain additional indebtedness, including secured purchase money indebtedness, subject to certain conditions set forth in the Coast Crane Revolving Credit Facility.

As of September 30, 2013, the outstanding balance on the term loan portion of the Coast Crane Revolving Credit Facility was $39.0 million with $2.0 million of the outstanding balance classified as a current liability as a result of the scheduled quarterly term loan payments of $0.5 million that began on June 30, 2013.

Coast Crane is currently in compliance with the covenants and other provisions set forth in the Coast Crane Revolving Credit Facility, as amended.  Any failure to be in compliance with any material provision or covenant of these agreements could have a material adverse effect on the Company’s liquidity and operations.

Unsecured Promissory Notes

In November 2010, the Company entered into an agreement with the holders of certain Coast Crane indebtedness pursuant to which such holders agreed, in consideration of the assumption of such indebtedness by the Company, to exchange such indebtedness for one or more promissory notes issued by the Company in the aggregate principal amount of $5.2 million. As additional consideration under the agreement, the Company agreed to issue 90,000 warrants to the holders of such indebtedness entitling the holder thereof to purchase up to 90,000 shares of Essex Rental common stock at an exercise price of $0.01 per share, and to reimburse such holders for certain legal fees incurred in connection with the transaction. These warrants were exercised in full on October 24, 2013.

In accordance with accounting guidance related to debt issued with conversion or other options, the fair value of the detachable warrants of $296,400 is recorded as a discount to the principal balance outstanding with an offset to additional paid-in capital on the consolidated statements of stockholders’ equity and will be amortized on a straight-line basis over the three years life of the notes as additional interest expense on the consolidated statement of operations, which is not materially different than the effective interest method. The unamortized balance of this discount was $24,032 and $96,130 as of September 30, 2013 and December 31, 2012, respectively.

Interest accrues on the outstanding promissory notes at a per annum rate of 10% and is payable annually in arrears.

Purchase Money Security Interest Debt

As of September 30, 2013, the Company's purchase money security interest debt consisted of the financing of eleven pieces of equipment. Ten of these debt obligations accrue interest at rates that range from LIBOR plus 3.25% to LIBOR plus 5.38% per annum with interest payable in arrears. One of the debt obligations accrues interest at a rate of 8.29%. The obligations are secured by the equipment purchased and have maturity dates that range from September 2015 to October 2018. As these loans are amortizing, approximately $1.0 million of the total $3.2 million in principal payments is due prior to September 30, 2014 and as such, this amount is classified as a current liability in the accompanying consolidated balance sheets as of September 30, 2013.

As of December 31, 2012, the purchase money security interest debt consisted of the financing of nine pieces of equipment with an outstanding balance of approximately $3.0 million. The interest rates at December 31, 2012 ranged from LIBOR plus 3.25% to LIBOR plus 5.38%. 

As described above, Essex Crane and Coast Crane (including Coast Crane Ltd.) are permitted to incur up to $1.5 million and $10.0 million, respectively, of secured purchase money indebtedness under the terms of, and subject to certain conditions set forth in, the Essex Crane Revolving Credit Facility and Coast Crane Revolving Credit Facility, respectively.

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Significant Accounting Policies

9 Months Ended

Sep. 30, 2013

Accounting Policies [Abstract]

Significant Accounting Policies

Significant Accounting Policies

Please refer to Note 2 of the Notes to the Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2012 for a complete description of our significant accounting policies.

Reclassifications

Certain prior year amounts in the consolidated cash flow statements and segment information note have been reclassified to conform to the current year presentation. The reclassifications had no effect on net loss, net cash flows or shareholders' equity.

Use of Estimates

The preparation of these financial statements requires management to make estimates and assumptions that affect certain reported amounts of assets, liabilities, revenues, expenses, contingent assets and liabilities, and the related disclosures.  Accordingly, actual results could materially differ from those estimates.  Significant estimates include the allowance for doubtful accounts and credit memos, spare parts inventory obsolescence reserve, useful lives for rental equipment and property and equipment, deferred income taxes, personal property tax receivable and accrual, loss contingencies and the fair value of interest rate swaps and other financial instruments.

Fair Value of Financial Instruments, Including Derivative Instruments

The valuation of financial instruments requires the Company to make estimates and judgments that affect the fair value of the instruments. The Company, where possible, bases the fair values of its financial instruments, including its derivative instruments, on listed market prices and third party quotes. Where these are not available, the Company bases its estimates on current instruments with similar terms and maturities or on other factors relevant to the financial instruments.

Segment Reporting

We have determined, in accordance with applicable accounting guidance regarding operating segments that we have three reportable segments. We derive our revenues from three principal business activities: (1) equipment rentals; (2) equipment distribution; and (3) parts and service. These segments are based upon how we allocate resources and assess performance. See Note 12 to the consolidated financial statements regarding our segment information.

Recently Issued and Adopted Accounting Pronouncements

In February 2013, the Financial Accounting Standards Board ("FASB") issued authoritative guidance regarding the reporting of reclassifications out of accumulated other comprehensive income. Under the new guidance, an entity has the option to present either parenthetically on the face of the financial statements or in the notes, significant amounts reclassified from each component of accumulated other comprehensive income and the statement of operations line items affected by the reclassification. The amendment does not change the current requirements for reporting net income or other comprehensive income in the financial statements. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2012. The Company adopted this guidance during the three months ended March 31, 2013 and has disclosed the reclassifications out of other comprehensive income and the affect on the statement of operations line items within the notes to the consolidated financial statements.

In July 2013, the FASB issued authoritative guidance regarding the financial statement presentation of unrecognized tax benefits. Under the new guidance, unrecognized tax benefits, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax benefit is disallowed. In situations where a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction or the tax law of the jurisdiction does not require, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be netted with the deferred tax asset. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The company will adopt this guidance for the fiscal year beginning January 1, 2014. Adoption of this guidance is not expected to have a material impact on the Company's financial results.

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Income Taxes - Additional Information (Detail) (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Income Taxes [Line Items]
Effective tax rate	37.60%	33.80%
Unrecorded excess tax goodwill	$ 3,100,000		$ 3,100,000
Excess tax goodwill remaining amortization period	3 years
Unrecognized tax benefits	300,000		100,000
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense	15,000
Federal
Income Taxes [Line Items]
Unused net operating loss carry-forwards	145,500,000		138,900,000
State
Income Taxes [Line Items]
Unused net operating loss carry-forwards	$ 77,700,000		$ 71,500,000

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Segment Information (Tables)

9 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

Reportable Segments Related to Revenues and Gross Profit

The following table presents information about our reportable segments related to revenues and gross profit:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2013		2012			2013		2012
Segment revenues
Equipment rentals	$	14,416,345	$	17,274,476		$	49,789,356	$	54,604,204
Equipment distribution	3,772,051		1,231,984			8,336,980		3,425,936
Parts and service	4,619,742		5,633,775			14,960,011		17,039,119
Total revenues	$	22,808,138	$	24,140,235		$	73,086,347	$	75,069,259
Segment gross profit
Equipment rentals	$	3,805,321	$	4,680,065		$	12,553,710	$	10,459,460
Equipment distribution	368,143		(4,427		)	806,861		60,237
Parts and service	1,282,785		1,684,258			4,181,464		4,570,881
Total gross profit	$	5,456,249	$	6,359,896		$	17,542,035	$	15,090,578

Reportable Segments Related to Total Assets

The following table presents information about our reportable segments related to total assets:

	September 30, 2013		December 31, 2012
Segment identified assets
Equipment rentals	$	311,704,773	$	328,177,713
Equipment distribution	4,968,420		2,001,273
Parts and service	5,607,122		6,593,538
Total segment identified assets	322,280,315		336,772,524
Non-segmented identified assets	17,151,204		17,295,086
Total assets	$	339,431,519	$	354,067,610

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Revolving Credit Facilities and Other Debt Obligations (Detail) (USD $)	9 Months Ended
	Sep. 30, 2013		Dec. 31, 2012		Mar. 31, 2012	Feb. 29, 2012	Jan. 31, 2012
Debt Instrument [Line Items]
Term loan	$ 37,000,000		$ 0
Term loan - short-term	2,000,000		0
Purchase money security interest debt	2,180,806		2,147,349
Total debt obligations outstanding	214,208,621		218,699,738
Essex Crane revolving credit facility
Debt Instrument [Line Items]
Available collateral in excess of maximum borrowing amount	10,100,000
Revolving credit facility	148,301,312		151,286,537
Weighted Average Interest	3.95%
Maturity Date Ranges	October 2016
Coast Crane revolving credit facility
Debt Instrument [Line Items]
Available collateral in excess of maximum borrowing amount					8,500,000	8,400,000	9,500,000
Revolving credit facility	18,513,670		59,306,372
Weighted Average Interest	5.49%
Maturity Date Ranges	March 2017
Term loan
Debt Instrument [Line Items]
Term loan	37,000,000		0
Term loan - short-term	2,000,000		0
Weighted Average Interest	5.25%
Maturity Date Ranges	June 2014 - March 2017
Term loan | Short-term
Debt Instrument [Line Items]
Weighted Average Interest	5.25%
Maturity Date Ranges	within 1 year
Unsecured promissory notes (related party)
Debt Instrument [Line Items]
Unsecruted promissory notes (related party)	5,202,968	[1]	5,130,870	[1]
Weighted Average Interest	11.90%	[1]
Maturity Date Ranges	December 2013	[1]
Purchase money security interest debt
Debt Instrument [Line Items]
Purchase money security interest debt	2,180,806		2,147,349
Purchase money security interest debt - short-term	$ 1,009,865		$ 828,610
Weighted Average Interest	4.64%
Maturity Date Ranges	September 2015-October 2018
Purchase money security interest debt | Short-term
Debt Instrument [Line Items]
Weighted Average Interest	4.64%
Maturity Date Ranges	within 1 year

[1] Includes the impact on interest expense from the accretion of the discount related to the detachable warrants issued with the debt. See "Unsecured Promissory Notes" discussion within this footnote for further discussion.

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Accumulated Other Comprehensive Income Reclassifications - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Accumulated Other Comprehensive Income [Abstract]
Beginning Balance	$ 6,003	$ (622,520)	$ 9,979	$ (1,270,850)
Other comprehensive income (loss) before reclassifications	(2,106)	5,720	(6,082)	(100,955)
Amounts reclassified from accumulated other comprehensive income	0	383,253	0	1,138,258
Other comprehensive income (loss)	(2,106)	388,973	(6,082)	1,037,303
Ending Balance	3,897	(233,547)	3,897	(233,547)
Gains and Losses on Designated Cash Flow Hedge
Accumulated Other Comprehensive Income [Abstract]
Beginning Balance	0	(627,438)	0	(1,260,232)
Other comprehensive income (loss) before reclassifications	0	(11,977)	0	(134,188)
Amounts reclassified from accumulated other comprehensive income	0	383,253	0	1,138,258
Other comprehensive income (loss)	0	371,276	0	1,004,070
Ending Balance	0	(256,162)	0	(256,162)
Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income [Abstract]
Beginning Balance	6,003	4,918	9,979	(10,618)
Other comprehensive income (loss) before reclassifications	(2,106)	17,697	(6,082)	33,233
Amounts reclassified from accumulated other comprehensive income	0	0	0	0
Other comprehensive income (loss)	(2,106)	17,697	(6,082)	33,233
Ending Balance	3,897	22,615	3,897	22,615
Amount Reclassified from Accumulated Other Comprehensive Income | Gains and Losses on Designated Cash Flow Hedge
Accumulated Other Comprehensive Income [Abstract]
Amounts reclassified from accumulated other comprehensive income		$ (383,253)		$ (1,138,258)

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Segment Information - Additional Information (Detail) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013 Segment	Sep. 30, 2012	Dec. 31, 2012
Segment Reporting Disclosure [Line Items]
Number of reportable operating segment			3
Sales between segments			$ 0	$ 0
Total revenues	22,808,138	24,140,235	73,086,347	75,069,259
TOTAL ASSETS	339,431,519		339,431,519		354,067,610
Equipment distribution
Segment Reporting Disclosure [Line Items]
Total revenues	3,772,051	1,231,984	8,336,980	3,425,936
Number of major customers		3		5
Customer 1
Segment Reporting Disclosure [Line Items]
Number of major customers		0
Customer 1 | Equipment distribution
Segment Reporting Disclosure [Line Items]
Number of major customers	4		2
Canada
Segment Reporting Disclosure [Line Items]
TOTAL ASSETS	5,500,000		5,500,000		7,200,000
Long-lived assets	$ 4,400,000		$ 4,400,000		$ 5,800,000
Net revenues
Segment Reporting Disclosure [Line Items]
Number of major customers	0		0	0
Net revenues | Geographic concentration risk | International customers
Segment Reporting Disclosure [Line Items]
Concentration risk percentage	0.00%	0.00%	0.00%	0.00%
Net revenues | Geographic concentration risk | Canada
Segment Reporting Disclosure [Line Items]
Concentration risk percentage	0.00%	0.00%	0.00%	0.00%
Net revenues | Customer concentration risk | Customer 1 | Equipment distribution
Segment Reporting Disclosure [Line Items]
Concentration risk percentage	0.00%	0.00%	0.00%	0.00%
Net revenues | Customer concentration risk | Customer 2 | Equipment distribution
Segment Reporting Disclosure [Line Items]
Concentration risk percentage	0.00%	0.00%	0.00%	0.00%
Net revenues | Customer concentration risk | Customer 3 | Equipment distribution
Segment Reporting Disclosure [Line Items]
Concentration risk percentage	0.00%	0.00%		0.00%
Net revenues | Customer concentration risk | Customer Four [Member] | Equipment distribution
Segment Reporting Disclosure [Line Items]
Concentration risk percentage	0.00%			0.00%
Net revenues | Customer concentration risk | Customer Five [Member] | Equipment distribution
Segment Reporting Disclosure [Line Items]
Concentration risk percentage				0.00%

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Consolidated Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Statement of Financial Position [Abstract]
Accounts receivable, allowances for doubtful accounts and credit memos	$ 2,630,000	$ 2,775,000
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, Authorized	1,000,000	1,000,000
Preferred stock, issued	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, Authorized	40,000,000	40,000,000
Common stock, issued	24,653,513	24,555,818
Common stock, outstanding	24,653,513	24,555,818

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Accumulated Other Comprehensive Income Reclassifications

9 Months Ended

Sep. 30, 2013

Equity [Abstract]

Accumulated Other Comprehensive Income Reclassifications

Accumulated Other Comprehensive Income Reclassifications

The following table presents the Company's changes in accumulated other comprehensive income by component net of tax for the three months ended September 30, 2013:

	Gains and Losses on Designated Cash Flow Hedge (1)		Foreign Currency Translation Adjustments (1)			Total (1)
Beginning balance	$	—	$	6,003		$	6,003
Other comprehensive income (loss) before reclassifications	—		(2,106		)	(2,106		)
Amounts reclassified from accumulated other comprehensive income	—		—			—
Net current period other comprehensive income (loss)	—		(2,106		)	(2,106		)
Ending balance	$	—	$	3,897		$	3,897

(1) Amounts in parenthesis indicate debits.

The following table presents the Company's changes in accumulated other comprehensive income by component net of tax for the nine months ended September 30, 2013:

	Gains and Losses on Designated Cash Flow Hedge (1)		Foreign Currency Translation Adjustments (1)			Total (1)
Beginning balance	$	—	$	9,979		9,979
Other comprehensive income (loss) before reclassifications	—		(6,082		)	(6,082	)
Amounts reclassified from accumulated other comprehensive income	—		—			—
Net current period other comprehensive income (loss)	—		(6,082		)	(6,082	)
Ending balance	$	—	$	3,897		3,897

(1) Amounts in parenthesis indicate debits.

The following table presents the Company's changes in accumulated other comprehensive income by component net of tax for the three months ended September 30, 2012:

	Gains and Losses on Designated Cash Flow Hedge (1)			Foreign Currency Translation Adjustments (1)		Total (1)
Beginning balance	$	(627,438	)	$	4,918	$	(622,520	)
Other comprehensive income (loss) before reclassifications	(11,977		)	17,697		5,720
Amounts reclassified from accumulated other comprehensive income	383,253			—		383,253
Net current period other comprehensive income (loss)	371,276			17,697		388,973
Ending balance	$	(256,162	)	$	22,615	$	(233,547	)

(1) Amounts in parenthesis indicate debits.

The following table presents the Company's changes in accumulated other comprehensive income by component net of tax for the nine months ended September 30, 2012:

	Gains and Losses on Designated Cash Flow Hedge (1)			Foreign Currency Translation Adjustments (1)			Total (1)
Beginning balance	$	(1,260,232	)	$	(10,618	)	$	(1,270,850	)
Other comprehensive income (loss) before reclassifications	(134,188		)	33,233			(100,955		)
Amounts reclassified from accumulated other comprehensive income	1,138,258			—			1,138,258
Net current period other comprehensive income (loss)	1,004,070			33,233			1,037,303
Ending balance	$	(256,162	)	$	22,615		$	(233,547	)

(1) Amounts in parenthesis indicate debits.

The following table presents the impact of the reclassifications from accumulated other comprehensive income on the consolidated statement of operations for the three months ended September 30, 2012:

	Amount Reclassified from Accumulated Other Comprehensive Income			Affected Line Item in the Consolidated Statement of Operations
Losses on designated cash flow hedge
Interest rate swap	$	(632,437	)	Interest Expense
Tax benefit	249,184			Benefit for Income Taxes
Effect on net loss	$	(383,253	)	Net Loss

(1) Amounts in parenthesis indicate debits.

The following table presents the impact of the reclassifications from accumulated other comprehensive income on the consolidated statement of operations for the nine months ended September 30, 2012:

	Amount Reclassified from Accumulated Other Comprehensive Income			Affected Line Item in the Consolidated Statement of Operations
Losses on designated cash flow hedge
Interest rate swap	$	(1,876,317	)	Interest Expense
Tax benefit	738,059			Benefit for Income Taxes
Effect on net loss	$	(1,138,258	)	Net Loss

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Consolidated Statements Of Comprehensive Loss (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Statement of Comprehensive Income [Abstract]
Net loss	$ (1,902,604)	$ (2,059,626)	$ (5,997,826)	$ (9,647,965)
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments	(2,106)	17,697	(6,082)	33,233
Change in fair value of interest rate swap, net of tax of $241,397 and $652,826, respectively, for the three and nine months ended September 30, 2012	0	371,276	0	1,004,070
Other comprehensive income (loss)	(2,106)	388,973	(6,082)	1,037,303
Comprehensive loss	$ (1,904,710)	$ (1,670,653)	$ (6,003,908)	$ (8,610,662)

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Consolidated Balance Sheets (USD $)	Sep. 30, 2013	Dec. 31, 2012
CURRENT ASSETS
Cash and cash equivalents	$ 3,030,137	$ 8,389,321
Accounts receivable, net of allowances for doubtful accounts and credit memos of $2,630,000 and $2,775,000, respectively	13,993,135	14,658,198
Other receivables	2,237,217	2,282,104
Deferred tax assets	3,123,912	3,022,625
Inventory
Retail equipment	3,804,929	1,815,670
Retail spare parts, net	1,591,904	1,386,412
Prepaid expenses and other assets	1,427,489	1,494,751
TOTAL CURRENT ASSETS	29,208,723	33,049,081
Property and equipment, net	5,273,936	6,610,976
Spare parts inventory, net	3,254,460	3,145,129
Identifiable finite lived intangibles, net	1,152,857	1,403,571
Goodwill	1,796,126	1,796,126
Loan acquisition costs, net	6,605,143	1,170,354
TOTAL ASSETS	339,431,519	354,067,610
CURRENT LIABILITIES
Accounts payable	4,000,827	5,342,637
Accrued employee compensation and benefits	1,921,634	1,999,143
Accrued taxes	3,997,851	3,211,400
Accrued interest	1,044,801	1,359,017
Accrued other expenses	976,810	1,358,036
Unearned rental revenue	1,692,382	1,520,701
Customer deposits	179,350	73,795
Term loan - short-term	2,000,000	0
Purchase money security interest debt - short-term	1,009,865	828,610
Promissory notes	5,202,968	5,130,870
Capital lease obligation	0	3,154
TOTAL CURRENT LIABILITIES	22,026,488	20,827,363
LONG-TERM LIABILITIES
Revolving credit facilities	166,814,982	210,592,909
Term loan	37,000,000	0
Purchase money security interest debt	2,180,806	2,147,349
Deferred tax liabilities	42,405,015	46,258,254
TOTAL LONG-TERM LIABILITIES	248,400,803	258,998,512
TOTAL LIABILITIES	270,427,291	279,825,875
Commitments and contingencies
STOCKHOLDERS' EQUITY
Preferred stock, $.0001 par value, Authorized 1,000,000 shares, none issued	0	0
Common stock, $.0001 par value, Authorized 40,000,000 shares; issued and outstanding 24,653,513 shares at September 30, 2013 and 24,555,818 shares at December 31, 2012	2,465	2,456
Paid in capital	125,226,630	124,460,238
Accumulated deficit	(56,228,764)	(50,230,938)
Accumulated other comprehensive income, net of tax	3,897	9,979
TOTAL STOCKHOLDERS' EQUITY	69,004,228	74,241,735
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	339,431,519	354,067,610
Rental equipment
Inventory
Property and equipment, net	$ 292,140,274	$ 306,892,373

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Significant Accounting Policies - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2013 Segment
Accounting Policies [Abstract]
Number of reportable segments	3

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Revolving Credit Facilities and Other Debt Obligations (Tables)

9 Months Ended

Sep. 30, 2013

Debt Disclosure [Abstract]

Schedule of Revolving Credit Facilities and Other Debt Obligations

The Company’s revolving credit facilities and other debt obligations consist of the following: 

	Principal Outstanding at				Weighted Average Interest as of	Maturity
	September 30, 2013		December 31, 2012		September 30, 2013	Date Ranges
Essex Crane revolving credit facility	$	148,301,312	$	151,286,537	3.95%	October 2016
Coast Crane revolving credit facility	18,513,670		59,306,372		5.49%	March 2017
Term loan	37,000,000		—		5.25%	June 2014 - March 2017
Term loan - short-term	2,000,000		—		5.25%	within 1 year
Unsecured promissory notes (related party) (1)	5,202,968		5,130,870		11.90%	December 2013
Purchase money security interest debt	2,180,806		2,147,349		4.64%	September 2015-October 2018
Purchase money security interest debt - short-term	1,009,865		828,610		4.64%	within 1 year
Total debt obligations outstanding	$	214,208,621	$	218,699,738

(1) Includes the impact on interest expense from the accretion of the discount related to the detachable warrants issued with the debt. See "Unsecured Promissory Notes" discussion within this footnote for further discussion.

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Common Stock and Warrants - Additional Information (Detail) (USD $)	1 Months Ended		9 Months Ended
	Nov. 30, 2010	Oct. 31, 2008	Sep. 30, 2013 Coast Crane [Member] [Member]	Sep. 30, 2012 Coast Crane [Member] [Member]	Sep. 30, 2013 Restricted Stock Coast Crane [Member] [Member]	Sep. 30, 2012 Restricted Stock Coast Crane [Member] [Member]	Sep. 30, 2013 Strategic Planning and Finance Committee	Sep. 30, 2012 Strategic Planning and Finance Committee
Class of Warrant or Right [Line Items]
Stock repurchase program, authorized amount		$ 12,000,000
Warrant issued	90,000
Number of shares of common stock exchanged by warrants	1
Warrant exercise price	0.01
Warrant expiration date	Dec. 31, 2013
Fair value of warrants	$ 296,400
Common stock issued for services (in shares)							43,715	56,868
Shares of restricted common stock issued to employees of Coast Crane			83,469	83,474
Shares withheld to cover Employee Tax					29,489	12,616

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Earnings per Share and Comprehensive Income - Computation of Basic and Diluted Earnings Per Share (Detail) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Earnings Per Share Disclosure [Line Items]
Net loss	$ (1,902,604)	$ (2,059,626)	$ (5,997,826)	$ (9,647,965)
Weighted average shares outstanding:
Basic (shares)	24,653,513	24,555,818	24,639,667	24,541,462
Effect of dilutive securities:
Diluted (shares)	24,653,513	24,555,818	24,639,667	24,541,462
Basic earnings (loss) per share	$ (0.08)	$ (0.08)	$ (0.24)	$ (0.39)
Diluted earnings (loss) per share	$ (0.08)	$ (0.08)	$ (0.24)	$ (0.39)
Warrants
Effect of dilutive securities:
Effect of dilutive securities	0	0	0	0
Stock Options
Effect of dilutive securities:
Effect of dilutive securities	0	0	0	0

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Derivatives and Hedging Activities - Interest Rate Swap Agreements - Effect of Derivative Financial Instruments (Detail) (Designated as Hedging Instrument, Interest rate swap agreements, USD $)	3 Months Ended	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Designated as Hedging Instrument | Interest rate swap agreements
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion)		$ 0	$ (219,421)
Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)		Interest expense	Interest expense
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	(600,000)	0	(1,876,317)
Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)		Other income / (expense)	Other income / (expense)
Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)		$ 0	$ 0

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Fair Value - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Fair Value Disclosures [Abstract]
Fair value of total debt obligations	$ 216.8	$ 217.2

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Fair Value

9 Months Ended

Sep. 30, 2013

Fair Value Disclosures [Abstract]

Fair Value

Fair Value

The FASB issued a statement on Fair Value Measurements which, among other things, defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis and clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the standard establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

• Level 1 - Observable inputs such as quoted prices in active markets:

• Level 2- Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

• Level 3 - Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

The fair value of the Company’s total debt obligations was approximately $216.8 million and $217.2 million as of September 30, 2013 and December 31, 2012, respectively, calculated using a discounted cash flows approach at a market rate of interest. The inputs used in the calculation are classified within Level 2 of the fair value hierarchy.

The fair values of the Company’s financial instruments, including cash and cash equivalents, approximate their carrying values. The Company bases its fair values on listed market prices or third party quotes when available. If not available, then the Company bases its estimates on instruments with similar terms and maturities.

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Intangible Assets (Detail) (USD $)				3 Months Ended	9 Months Ended			3 Months Ended	9 Months Ended							3 Months Ended		9 Months Ended
	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2013 Customer Relationships [Member]	Sep. 30, 2012 Essex Crane Customer Relationship Intangible [Member]	Sep. 30, 2012 Essex Crane Customer Relationship Intangible [Member]	Sep. 30, 2013 Essex Crane Customer Relationship Intangible [Member]	Dec. 31, 2012 Essex Crane Customer Relationship Intangible [Member]	Sep. 30, 2012 Essex Crane Trademark [Member]	Sep. 30, 2012 Essex Crane Trademark [Member]	Sep. 30, 2013 Essex Crane Trademark [Member]	Dec. 31, 2012 Essex Crane Trademark [Member]	Sep. 30, 2013 Coast Crane customer relationship	Dec. 31, 2012 Coast Crane customer relationship	Sep. 30, 2013 Coast Crane trademark	Dec. 31, 2012 Coast Crane trademark	Sep. 30, 2013 Other Intangible Assets	Sep. 30, 2012 Other Intangible Assets	Sep. 30, 2013 Other Intangible Assets	Sep. 30, 2012 Other Intangible Assets
Acquired Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 1,796,126	$ 1,796,126
Gross Carrying Amount	3,688,956	3,688,956				784,826	784,826			804,130	804,130	1,500,000	1,500,000	600,000	600,000
Accumulated Amortization	(2,536,099)	(2,285,385)				(784,826)	(784,826)			(804,130)	(804,130)	(607,143)	(446,429)	(340,000)	(250,000)
Net Carrying Amount	1,152,857	1,403,571	0			0	0			0	0	892,857	1,053,571	260,000	350,000
Reduced amount of gross carrying amount				0	64,591			0	70,191
Amortization expense																$ 83,571	$ 83,571	$ 250,714	$ 271,995

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Stock Based Compensation - Additional Information (Detail) (USD $)	0 Months Ended		1 Months Ended	9 Months Ended		29 Months Ended	3 Months Ended		9 Months Ended			0 Months Ended			0 Months Ended				9 Months Ended	0 Months Ended	9 Months Ended			0 Months Ended
	Mar. 18, 2010	Dec. 18, 2008	Jan. 14, 2011	Sep. 30, 2013	Sep. 30, 2012	Jun. 18, 2013	Sep. 30, 2013 Selling, General and Administrative Expenses	Sep. 30, 2012 Selling, General and Administrative Expenses	Sep. 30, 2013 Selling, General and Administrative Expenses	Sep. 30, 2012 Selling, General and Administrative Expenses	Dec. 31, 2012 Selling, General and Administrative Expenses	Jan. 03, 2011 Restricted Stock Coast Crane Ltd.	Sep. 30, 2013 Restricted Stock Coast Crane Ltd.	Jan. 03, 2012 Restricted Stock Coast Crane Ltd.	Jun. 18, 2013 Other key managers	Jan. 14, 2011 Other key managers	Mar. 18, 2010 Other key managers	Dec. 18, 2008 Other key managers	Sep. 30, 2013 Other key managers	May 31, 2013 Chief Financial Officer (former) Stock Options	Sep. 30, 2013 Chief Financial Officer (former) Stock Options	Sep. 30, 2013 2011 Long Term Incentive Plan	Sep. 30, 2013 2008 Long Term Incentive Plan	Jun. 18, 2013 Chief Operating Officer [Member] [Member] Restricted Stock	Sep. 30, 2013 Chief Operating Officer [Member] [Member] Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized																						1,500,000	1,575,000
Share-based compensation, option expiration period																						10 years
Annual vesting perectage of stock options				33.33%
Time period after issuance options begin to vest																						1 year
Service period of stock option awards																			3 years
Aggregate grant date fair value of stock issued												166,943			100,000	423,750	485,969	565,000						67,500
Weighted average exercise price of stock options granted (use per share)															$ 4.26	$ 5.58	$ 6.45	$ 4.50
Weighted average fair value of stock options granted (usd per share)	$ 3.76	$ 2.54	$ 3.19			$ 2.79
Stock options, exercise period following termination (prior)																				90 days
Additional non-cash stock compensation expense resulting from modification to stock options																					$ 400,000
Stock options, forfeitures																				111,773
Aggregate grant date fair value of stock issued												926,485												287,550
Options outstanding and vested													166,943												0
Annual vesting percentage of restricted common stock														50.00%
Non-cash compensation expense				719,544	1,140,426		100,000	400,000	700,000	1,100,000
Unrecognized compensation cost							$ 600,000		$ 600,000		$ 500,000

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Income Taxes

9 Months Ended

Sep. 30, 2013

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company’s effective tax rate of 37.6% for the nine months ended September 30, 2013 was higher than the statutory federal rate due to state taxes. The Company’s effective tax rate of 33.8% for the nine months ended September 30, 2012 was lower than the statutory federal rate due to state taxes.

As of September 30, 2013, the Company has unused federal net operating loss carry-forwards totaling approximately $145.5 million that begin expiring in 2022. As of September 30, 2013, the Company also has unused state net operating loss carry-forwards totaling approximately $77.7 million which expire between 2013 and 2032. The net operating loss carry-forwards are primarily from the acquisition of Holdings and losses in recent years. The Company had unused federal and state net operating loss carry-forwards totaling approximately $138.9 million and $71.5 million, respectively, as of December 31, 2012.

The Company also has remaining excess tax goodwill of approximately $3.1 million as of September 30, 2013 associated with the acquisition of Holdings. The excess tax goodwill will be amortized and deducted for tax purposes over the remaining three year term. However, the excess tax goodwill has not been recorded for GAAP purposes and will not be realized as a benefit to the income tax provision until the amortization deductions are realized through the reduction of taxable income in future years. The Company had remaining excess tax goodwill of approximately $3.1 million as of December 31, 2012.

The Company is generally no longer subject to federal and state examinations for tax years prior to December 31, 2010.

The Company had unrecognized tax benefits of approximately $0.3 million as of September 30, 2013 primarily associated with tax positions taken in a prior year. The Company incurred approximately $15,000 of income tax related interest expense and penalties related to uncertain tax positions during the three and nine months ended September 30, 2013. The Company had unrecognized tax benefits of approximately $0.1 million as of December 31, 2012.

The Company utilizes a two-step approach to recognize and measure uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained upon tax authority examination, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement.

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Derivatives and Hedging Activities - Interest Rate Swap Agreements

9 Months Ended

Sep. 30, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging Activities - Interest Rate Swap Agreements

Derivatives and Hedging Activities – Interest Rate Swap Agreements

Risk Management Objective of Using Derivatives

The Company is exposed to certain risks arising from both its business operations and economic conditions.  The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates.  The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s investments and borrowings.

Cash Flow Hedges of Interest Rate Risk

The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish these objectives, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. During the three and nine months ended September 30, 2012, the Company had one and four interest rate swaps outstanding, respectively, which involved the receipt of variable-rate amounts from counterparties in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amounts.

Essex Crane Interest Rate Swap

In November 2008, Essex Crane entered into an interest rate swap agreement with the lead lender of the Essex Crane Revolving Credit Facility to hedge its exposure to interest rate fluctuations.  The swap agreement had a notional principal amount of $100.0 million and matured in November 2012. Under the agreement, the Company paid a 2.71% fixed interest rate plus the applicable margin under the revolving credit facility (or a total interest rate of 4.96%). This interest rate swap was designated as a cash flow hedge.

The swap agreement established a fixed rate of interest for the Company and requires the Company or the bank to pay a settlement amount depending upon the difference between the 30 day floating LIBOR rate and the swap fixed rate of 2.71%.  The differential to be paid or received under the swap agreement has been accrued and paid as interest rates changed and such amounts were included in interest expense for the respective period.  Interest payment dates for the revolving loan were dependent upon the interest rate options selected by the Company.  Interest rates on the revolving credit facility were determined based on Wells Fargo’s prime rate or LIBOR rate, plus a margin depending on certain criteria in the agreement.  

The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. There was no hedge ineffectiveness recognized during the three and nine months ended September 30, 2012.

For the three and nine months ended September 30, 2012, the change in net unrealized loss on the derivative designated as a cash flow hedge reported as a component of other accumulated comprehensive income was a decrease of $0.6 million ($0.4 million net of tax) and a decrease of $1.7 million ($1.0 million net of tax), respectively. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt.  

Coast Crane Interest Rate Swaps

The Company assumed three interest rate swaps in conjunction with the Coast Acquisition. The assumed interest rate swaps had a notional amount of $7.0 million each and expired on May 18, 2012. Under the agreements, the Company paid fixed interest of 5.62% and received an interest rate based on three-month LIBOR. The Company did not contemporaneously document the hedge designation on the date of assumption in order to qualify for hedge accounting treatment due to economic reasons and the projected inherent hedge ineffectiveness.  The changes in fair values of the assumed swaps for the three and nine months ended September 30, 2012 was an unrealized gain of approximately $0 and $0.4 million and was reported as a component of interest expense in the consolidated statement of operations.

Essex Rental Corp. Summary

The Company’s consolidated weighted average interest rate of total debt outstanding, including the impact of the interest rate swaps was 4.52% and 3.49% at September 30, 2013 and December 31, 2012, respectively. The impact of the interest rate swaps resulted in an increase in interest expense of approximately $0.6 million for the three months ended September 30, 2012. The impact of the interest rate swaps resulted in an increase in interest expense of approximately $1.9 million for the nine months ended September 30, 2012.

The table below presents the effect of the Company’s derivative financial instruments on the consolidated statement of operations for the nine months ended September 30, 2013 and 2012.  These amounts are presented as other comprehensive income (loss) (“OCI”).

Derivatives in Cash Flow Hedging Relationships	Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion)			Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)			Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
For the Nine Months Ended September 30, 2013
Interest Rate Swap	$	—		Interest expense	$	—		Other income / (expense)	$	—
For the Nine Months Ended September 30, 2012
Interest Rate Swap	$	(219,421	)	Interest expense	$	(1,876,317	)	Other income / (expense)	$	—

Credit-risk-related Contingent Features

Essex Crane had an agreement with its derivative counterparty that contains a provision where if it defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then it could also be declared in default on their derivative obligations.

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Consolidated Statements Of Cash Flows (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (5,997,826)	$ (9,647,965)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization of tangible assets	14,523,382	16,174,843
Amortization of loan acquisition costs and other intangibles	1,595,396	920,451
Amortization of promissory notes discount	72,097	72,097
Deferred income taxes	(3,941,542)	(5,011,286)
Share based compensation expense	719,544	1,140,426
Change in fair value of interest rate swaps	0	(398,031)
Changes in operating assets and liabilities:
Accounts receivable, net	1,676,922	(2,790,035)
Other receivables	44,887	353,085
Prepaid expenses and other assets	67,262	647,137
Retail equipment inventory	(1,989,259)	85,063
Spare parts inventory	(318,970)	491,327
Accounts payable and accrued expenses	(1,178,810)	644,479
Unearned rental revenue	171,681	430,991
Customer deposits	105,555	299,599
Total change in operating assets and liabilities	(1,420,732)	161,646
NET CASH PROVIDED BY OPERATING ACTIVITIES	2,515,846	942,149
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of rental equipment	(5,510,271)	(7,713,011)
Purchases of property and equipment	(691,604)	(792,047)
Accounts receivable from rental equipment sales	(1,011,859)	1,163,000
Proceeds from sale of rental equipment	9,922,096	15,787,256
Proceeds from Sale of Property, Plant, and Equipment	1,751,575	0
NET CASH PROVIDED BY INVESTING ACTIVITIES	4,459,937	8,445,198
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from revolving credit facilities	74,818,162	68,494,929
Payments on revolving credit facilities	(118,596,089)	(78,262,718)
Proceeds from term loan	40,000,000	0
Payments on term loan	(1,000,000)	0
Payments on purchase money security interest debt	(767,104)	(505,053)
Payments on capital lease obligation	(3,205)	(5,769)
Employer repurchase of shares to satisfy minimum tax withholding	(102,642)	0
Payments for loan acquisition costs	(6,782,921)	(191,862)
NET CASH USED IN FINANCING ACTIVITIES	(12,433,799)	(10,470,473)
Effect of exchange rate changes on cash and cash equivalents	98,832	(104,679)
NET DECREASE IN CASH AND CASH EQUIVALENTS	(5,359,184)	(1,187,805)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	8,389,321	9,030,383
CASH AND CASH EQUIVALENTS, END OF PERIOD	3,030,137	7,842,578
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING / FINANCING ACTIVITIES
Board of Directors fees paid in common stock	149,500	121,943
Equipment obtained through capital lease	51	2,619
Equipment purchased directly through short-term debt obligation	981,817	0
Unrealized gain on designated derivative instruments, net of tax	0	(1,004,070)
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for interest and swaps	6,682,952	7,210,412
Cash paid for income taxes, net	27,439	42,476
Property, Plant and Equipment [Member]
Adjustments to reconcile net loss to net cash provided by operating activities:
Gain on sale of rental equipment	551,803	0
Rental equipment
Adjustments to reconcile net loss to net cash provided by operating activities:
Gain on sale of rental equipment	$ (2,482,670)	$ (2,470,032)

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Segment Information - Reportable Segments Related to Total Assets (Detail) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	$ 339,431,519	$ 354,067,610
Segment identified assets
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	322,280,315	336,772,524
Segment identified assets | Equipment rentals
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	311,704,773	328,177,713
Segment identified assets | Equipment distribution
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	4,968,420	2,001,273
Segment identified assets | Parts and service
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	5,607,122	6,593,538
Non-segmented identified assets
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	$ 17,151,204	$ 17,295,086

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Revolving Credit Facilities and Other Debt Obligations - Additional Information (Detail) (USD $)	9 Months Ended			9 Months Ended	0 Months Ended	9 Months Ended	12 Months Ended		0 Months Ended		9 Months Ended	12 Months Ended						12 Months Ended						9 Months Ended						9 Months Ended	12 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012	Sep. 30, 2013 Coast Crane Ltd.	Mar. 15, 2013 Essex Crane revolving credit facility	Sep. 30, 2013 Essex Crane revolving credit facility	Dec. 31, 2012 Essex Crane revolving credit facility	Oct. 31, 2008 Essex Crane revolving credit facility	May 07, 2012 Coast Crane revolving credit facility	Nov. 14, 2011 Coast Crane revolving credit facility	Sep. 30, 2013 Coast Crane revolving credit facility	Dec. 31, 2012 Coast Crane revolving credit facility	Mar. 12, 2013 Coast Crane revolving credit facility	Mar. 31, 2012 Coast Crane revolving credit facility	Feb. 29, 2012 Coast Crane revolving credit facility	Jan. 31, 2012 Coast Crane revolving credit facility	Nov. 24, 2010 Coast Crane revolving credit facility	Dec. 31, 2012 Coast Crane revolving credit facility December Thirty First Two Thousand Twelve	Nov. 24, 2010 Coast Crane revolving credit facility Option Two	Nov. 24, 2010 Coast Crane revolving credit facility Option Three	Nov. 24, 2010 Coast Crane revolving credit facility Option Four	Sep. 30, 2013 Term loan	Dec. 31, 2012 Term loan	Sep. 30, 2013 Unsecured promissory notes (related party)	Dec. 31, 2012 Unsecured promissory notes (related party)	Nov. 30, 2010 Unsecured promissory notes (related party)	Nov. 30, 2010 Unsecured promissory notes (related party) Maximum	Sep. 30, 2013 Purchase money security interest debt equipment	Dec. 31, 2012 Purchase money security interest debt equipment	Sep. 30, 2013 Purchase money security interest debt LIBOR Maximum	Dec. 31, 2012 Purchase money security interest debt LIBOR Maximum	Sep. 30, 2013 Purchase money security interest debt LIBOR Minimum	Dec. 31, 2012 Purchase money security interest debt LIBOR Minimum	Sep. 30, 2013 Purchase Money Security Interest Non LIBOR [Member]
Line of Credit Facility [Line Items]
Borrowing amount					$ 175,000,000			$ 190,000,000					$ 35,000,000
Sublimit for letter of credit								20,000,000									2,000,000
Percentage of borrowing of net receivables								85.00%
Percentage of net orderly liquidation value of eligible rental equipment.								75.00%
Applicable prime rate margin						1.75%	0.25%				2.75%
Euro-dollar LIBOR margin						3.75%	2.25%				3.75%
Unused line commitment fee						0.375%	0.25%				0.50%	0.50%
Minimum required availability as a percentage of outstanding commitment					10.00%
Fixed charge coverage ratio					1.10				1.20
Percent of net proceeds from sales of certain assets to reduce aggregate commitment					100.00%
Percent of free cash flows to reduce aggregate commitment					60.00%
Maximum commitment on March 31, 2014					165,000,000
Maximum commitment on March 31, 2015					150,000,000
Maximum commitment on February, 28, 2016					130,000,000
Limit on certain capital expenditures					2,000,000
Bank's prime rate						3.25%					3.25%	3.25%
Applicable LIBOR rate						0.18%					0.2532%	0.31%
Maximum current borrowing capacity under revolving credit facility						170,500,000	185,800,000				35,000,000	66,200,000
Available borrowing under revolving credit facility						22,100,000	34,500,000				8,300,000	6,900,000
Available collateral in excess of maximum borrowing amount						10,100,000								8,500,000	8,400,000	9,500,000
Secured purchase money indebtedness				10,000,000		1,500,000												7,000,000
Maximum aggregate principal amount, letter of credit																	75,000,000
Percentage of eligible accounts																	85.00%
Percent of eligible spare parts inventory																			50.00%
Borrowing base																			5,000,000	15,000,000
Percent of the lesser of net orderly liquidation value and invoice cost of eligible new equipment																				95.00%
Percentage of net orderly liquidation value of eligible other equipment less reserves																					85.00%
Proceeds of the first borrowing under credit facility	74,818,162	68,494,929								1,500,000
First amendment reserve									3,700,000
Essex contributions												2,500,000
Minimum EBITDA Threshold (less than $6 million)									6,000,000			6,000,000.0
Additional contributions paid during period												0
Minimum availability level of borrowing												8,000,000
Term loan balance													40,000,000									39,000,000
Scheduled quarterly term loan payment amount													500,000
Interest in addition to LIBOR																														5.38%	5.38%	3.25%	3.25%
LIBOR floor											1.50%
Letter of credit fee, rate											3.75%
Lender reserves											8,200,000	8,800,000
Available formulated collateral											800,000	200,000
Term loan - short-term	2,000,000		0																			2,000,000	0
Principal balance assumed																										5,200,000
Warrants issued																										90,000
Number of shares that the warrants entitle the holder to purchase																										90,000
Exercise price of common stock																											$ 0.01
Fair value of the detachable warrants																								296,400
Amortization period																								3 years
Unamortized balance of debt discount																								24,032.46	96,130
Interest on outstanding debt																								10.00%										8.29%
Pieces of equipment financed																												11	9
Purchase money security interest debt - short-term																												1,009,865	828,610
Obligations payable																												$ 3,200,000	$ 3,000,000

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Segment Information

9 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

Segment Information

Segment Information

We have identified three reportable segments: equipment rentals, equipment distribution, and parts and service. These segments are based upon how management of the Company allocates resources and assesses performance. The equipment rental segment includes rental, transportation and used rental equipment sales. There were no sales between segments for any of the periods presented. Selling, general, and administrative expenses as well as all other income and expense items below gross profit are not generally allocated to our reportable segments.

We do not compile discrete financial information by our segments other than the information presented below. The following table presents information about our reportable segments related to revenues and gross profit:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2013		2012			2013		2012
Segment revenues
Equipment rentals	$	14,416,345	$	17,274,476		$	49,789,356	$	54,604,204
Equipment distribution	3,772,051		1,231,984			8,336,980		3,425,936
Parts and service	4,619,742		5,633,775			14,960,011		17,039,119
Total revenues	$	22,808,138	$	24,140,235		$	73,086,347	$	75,069,259
Segment gross profit
Equipment rentals	$	3,805,321	$	4,680,065		$	12,553,710	$	10,459,460
Equipment distribution	368,143		(4,427		)	806,861		60,237
Parts and service	1,282,785		1,684,258			4,181,464		4,570,881
Total gross profit	$	5,456,249	$	6,359,896		$	17,542,035	$	15,090,578

The following table presents information about our reportable segments related to total assets:

	September 30, 2013		December 31, 2012
Segment identified assets
Equipment rentals	$	311,704,773	$	328,177,713
Equipment distribution	4,968,420		2,001,273
Parts and service	5,607,122		6,593,538
Total segment identified assets	322,280,315		336,772,524
Non-segmented identified assets	17,151,204		17,295,086
Total assets	$	339,431,519	$	354,067,610

The Company operates primarily in the United States. Our sales to international customers for the three months ended September 30, 2013 were 8% of total revenues. Sales to customers in Canada represented 8% of total revenues. No customer accounted for more than 10% of our revenues on a consolidated basis. Within the equipment distribution segment for the three months ended September 30, 2013, four customers individually accounted for approximately 23%, 13%, 12% and 10% of revenues on a segmented basis. The concentration of revenues from these customers within the equipment distribution segment is directly attributable to the large dollar value of individual transactions and the small number of individual transactions.

Our sales to international customers for the three months ended September 30, 2012 were 9% of total revenues. Sales to customers in Canada represented 8% of total revenues. No customer accounted for more than 10% of our revenues on a consolidated basis. Within the equipment distribution segment for the three months ended September 30, 2012, three customers individually accounted for approximately 42%, 30% and 23% of revenues on a segmented basis. The concentration of revenues from these customers within the equipment distribution segment is directly attributable to the large dollar value of individual transactions and the small number of individual transactions.

Our sales to international customers for the nine months ended September 30, 2013 were 9% of total revenues. Sales to customers in Canada represented 8% of total revenues. No customer accounted for more than 10% of our revenues on a consolidated basis. Within the equipment distribution segment for the nine months ended September 30, 2013, two customers individually accounted for approximately 34% and 11% of revenues on a segmented basis. The concentration of revenues from these customers within the equipment distribution segment is directly attributable to the large dollar value of individual transactions and the small number of individual transactions.

Our sales to international customers for the nine months ended September 30, 2012 were 12% of total revenues. Sales to customers in Canada represented 10% of total revenues. No customer accounted for more than 10% of our revenues on a consolidated basis. Within the equipment distribution segment for the nine months ended September 30, 2012, five customers individually accounted for approximately 17%, 16%, 15%, 14% and 11% of revenues on a segmented basis. The concentration of revenues from these customers within the equipment distribution segment is directly attributable to the large dollar value of individual transactions and the small number of individual transactions.

The Company maintains assets in Canada associated with our Coast Crane Ltd. subsidiary. Total assets located in Canada at September 30, 2013 totaled approximately $5.5 million, including long-lived assets totaling approximately $4.4 million. At December 31, 2012, total assets located in Canada totaled approximately $7.2 million, including long-lived assets totaling approximately $5.8 million.

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Earnings per Share and Comprehensive Income

9 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

Earnings per Share and Comprehensive Income

Earnings per Share and Comprehensive Income

The following tables set forth the computation of basic and diluted earnings per share:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Net loss	$	(1,902,604	)	$	(2,059,626	)	$	(5,997,826	)	$	(9,647,965	)
Weighted average shares outstanding:
Basic	24,653,513			24,555,818			24,639,667			24,541,462
Effect of dilutive securities:
Warrants	—			—			—			—
Options	—			—			—			—
Diluted	24,653,513			24,555,818			24,639,667			24,541,462
Basic earnings (loss) per share	$	(0.08	)	$	(0.08	)	$	(0.24	)	$	(0.39	)
Diluted earnings (loss) per share	$	(0.08	)	$	(0.08	)	$	(0.24	)	$	(0.39	)

Basic earnings per share ("EPS") is computed by dividing net income by the weighted average number of common shares outstanding during the period. Included in the weighted average number of shares outstanding for the three and nine months ended September 30, 2013 are 493,670 weighted average shares of common stock for the effective conversion of the retained interest in Holdings into common stock of the Company. Included in weighted average number of shares outstanding for the three and nine months ended September 30, 2012 are 632,911 weighted average shares of common stock for the effective conversion of the retained interest in Holdings into common stock of the Company. Diluted EPS adjusts basic EPS for the effects of Warrants, Units and Options; only in the periods in which such effect is dilutive.

As part of the initial public offering in March 2007, the Company issued an Underwriter Purchase Option (“UPO”) to purchase 600,000 Units at an exercise price of $8.80 per unit. Each unit consisted of one share of the Company’s common stock and one warrant. Each warrant entitled the holder to purchase from the Company one share of common stock at an exercise price of $5.00 per share. The UPO expired unexercised on March 4, 2012.

The weighted average UPO Units that could be converted into zero common shares for the three and nine months ended September 30, 2012 were not included in the computation of diluted earnings per share because the effects would be anti-dilutive. The weighted average restricted stock outstanding that could be converted into 3,931 and 82,685 common shares for the three months ended September 30, 2013 and 2012, respectively, and 1,738 and 83,469 common shares for the nine months ended September 30, 2013 and 2012, respectively, were not included in the computation of diluted earnings per share because the effects would be anti-dilutive. Weighted average options outstanding that could be converted into 74,259 and 41,987 common shares for the three months ended September 30, 2013 and 2012, respectively, and 82,433 and 8,514 common shares for the nine months ended September 30, 2013 and 2012, respectively, were not included in the computation of diluted earnings per share because the effects would be anti-dilutive. Weighted average warrants outstanding that could be converted into 89,779 and 89,764 common shares for the three months ended September 30, 2013 and 2012, respectively, and 89,783 and 89,749 common shares for the nine months ended September 30, 2013 and 2012, respectively, were outstanding but were not included in the computation of diluted earnings per share because the effects would be anti-dilutive.

As of September 30, 2013 and 2012, there were 90,000 privately-issued warrants outstanding, which were exercisable at a weighted average exercise price of $0.01. These warrants were fully exercised on October 24, 2013. As of September 30, 2013 and 2012, there were 1,430,459 and 1,474,719 stock options, respectively, outstanding which are exercisable at weighted average exercise prices of $5.29 and $5.45, respectively.

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Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived Intangible Assets

The following table presents the gross carrying amount, accumulated amortization and net carrying amount of the Company’s other identifiable finite lived intangible assets at September 30, 2013:

	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Other identifiable intangible assets:
Essex Crane customer relationship	$	784,826	$	(784,826	)	$	—
Essex Crane trademark	804,130		(804,130		)	—
Coast Crane customer relationship	1,500,000		(607,143		)	892,857
Coast Crane trademark	600,000		(340,000		)	260,000
	$	3,688,956	$	(2,536,099	)	$	1,152,857

The following table presents the gross carrying amount, accumulated amortization and net carrying amount of the Company’s other identifiable intangible assets at December 31, 2012:

	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Other identifiable intangible assets:
Essex Crane customer relationship	$	784,826	$	(784,826	)	$	—
Essex Crane trademark	804,130		(804,130		)	—
Coast Crane customer relationship	1,500,000		(446,429		)	1,053,571
Coast Crane trademark	600,000		(250,000		)	350,000
	$	3,688,956	$	(2,285,385	)	$	1,403,571

Schedule of Estimated Future Amortization Expense

The following table presents the estimated future amortization expense related to intangible assets as of September 30, 2013 for the years ended December 31:

2013	$	83,571
2014	334,286
2015	324,286
2016	214,286
2017	196,428
Total	$	1,152,857

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Commitments, Contingencies and Related Party Transactions

9 Months Ended

Sep. 30, 2013

Commitments and Contingencies Disclosure [Abstract]

Commitments, Contingencies and Related Party Transactions

Commitments, Contingencies and Related Party Transactions

Since December 2010, the Company has occupied office space at 500 Fifth Avenue, 50th Floor, New York, NY 10110, provided by Hyde Park Real Estate LLC, an affiliate of Laurence S. Levy, our chairman of the board. Such affiliate has agreed that it will make such office space, as well as certain office and administrative services, available to the Company, as may be required by the Company from time to time. Effective January 1, 2012, the Company has agreed to pay such entity $7,688 per month for such services with the terms of such arrangement being reconsidered from time to time. The Company’s statements of operations for the three and nine months ended September 30, 2013 and 2012 each include approximately $23,000 and $69,000, respectively, of rent expense related to these agreements.

In November 2010, the Company entered into an agreement with the holders of certain Coast Crane indebtedness pursuant to which such holders agreed, in consideration of the assumption of such indebtedness by the Company, to exchange such indebtedness of $5.2 million for unsecured promissory notes issued by the Company in the aggregate principal amount of $5.2 million plus the receipt of up to 90,000 warrants to purchase Essex common stock at $0.01 per share. The unsecured promissory notes mature in December 2013. The holders of the unsecured promissory notes are related parties to the Company as they owned a significant amount of the Company’s outstanding shares of common stock at the time of the transaction.

The Company maintains reserves for personal property taxes.  These reserves are based on a variety of factors including: duration of rental in each county jurisdiction, tax rates, rental contract terms, customer filings, tax-exempt nature of projects or jurisdictions, statutes of limitations and potential related penalties and interest.  Additionally, most customer rental contracts contain a provision that provides that personal property taxes are an obligation to be borne by the lessee. Where provided in the rental contract, management will invoice the customer for any personal property taxes paid by the Company. An estimated receivable has been recorded, net of an estimated allowance in connection with this liability.  This customer receivable has been presented as other receivables in current assets while the property tax reserve has been included in accrued taxes.

Management estimated the gross personal property taxes liability and related contractual customer receivable of the Company to be approximately $3.2 million and $1.9 million, respectively, as of September 30, 2013 and approximately $3.0 million and $2.0 million, respectively, as of December 31, 2012.

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Document and Entity Information	9 Months Ended
	Sep. 30, 2013	Nov. 01, 2013
Document Documentand Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q3
Trading Symbol	ESSX
Entity Registrant Name	Essex Rental Corp.
Entity Central Index Key	0001373988
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		24,743,513

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Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2013

Accounting Policies [Abstract]

Reclassifications [Text Block]

Reclassifications

Certain prior year amounts in the consolidated cash flow statements and segment information note have been reclassified to conform to the current year presentation. The reclassifications had no effect on net loss, net cash flows or shareholders' equity.

Use of Estimates

Use of Estimates

The preparation of these financial statements requires management to make estimates and assumptions that affect certain reported amounts of assets, liabilities, revenues, expenses, contingent assets and liabilities, and the related disclosures.  Accordingly, actual results could materially differ from those estimates.  Significant estimates include the allowance for doubtful accounts and credit memos, spare parts inventory obsolescence reserve, useful lives for rental equipment and property and equipment, deferred income taxes, personal property tax receivable and accrual, loss contingencies and the fair value of interest rate swaps and other financial instruments.

Fair Value of Financial Instruments, Including Derivative Instruments

Fair Value of Financial Instruments, Including Derivative Instruments

The valuation of financial instruments requires the Company to make estimates and judgments that affect the fair value of the instruments. The Company, where possible, bases the fair values of its financial instruments, including its derivative instruments, on listed market prices and third party quotes. Where these are not available, the Company bases its estimates on current instruments with similar terms and maturities or on other factors relevant to the financial instruments.

Segment Reporting

Segment Reporting

We have determined, in accordance with applicable accounting guidance regarding operating segments that we have three reportable segments. We derive our revenues from three principal business activities: (1) equipment rentals; (2) equipment distribution; and (3) parts and service. These segments are based upon how we allocate resources and assess performance. See Note 12 to the consolidated financial statements regarding our segment information.

Recently Issued and Adopted Accounting Pronouncements

Recently Issued and Adopted Accounting Pronouncements

In February 2013, the Financial Accounting Standards Board ("FASB") issued authoritative guidance regarding the reporting of reclassifications out of accumulated other comprehensive income. Under the new guidance, an entity has the option to present either parenthetically on the face of the financial statements or in the notes, significant amounts reclassified from each component of accumulated other comprehensive income and the statement of operations line items affected by the reclassification. The amendment does not change the current requirements for reporting net income or other comprehensive income in the financial statements. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2012. The Company adopted this guidance during the three months ended March 31, 2013 and has disclosed the reclassifications out of other comprehensive income and the affect on the statement of operations line items within the notes to the consolidated financial statements.

In July 2013, the FASB issued authoritative guidance regarding the financial statement presentation of unrecognized tax benefits. Under the new guidance, unrecognized tax benefits, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax benefit is disallowed. In situations where a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction or the tax law of the jurisdiction does not require, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be netted with the deferred tax asset. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The company will adopt this guidance for the fiscal year beginning January 1, 2014. Adoption of this guidance is not expected to have a material impact on the Company's financial results.