Discontinued Operations (Tables)

3 Months Ended

Mar. 31, 2023

Discontinued Operations and Disposal Groups [Abstract]

Summary of Results of Discontinued Operations Reported in Consolidated Statements of Income and Balance Sheets

The following table presents the results of Adler Tanks as reported in income from discontinued operations within the condensed consolidated statements of income for the three months ended March 31, 2023 and 2022:

(dollar amounts in thousands)	Three Months Ended March 31,
	2023			2022
Revenues
Rental	$	6,520		$	14,191
Rental related services		2,584			5,285
Rental operations		9,104			19,476
Sales		269			657
Other		65			187
Total revenues		9,438			20,320
Costs and Expenses
Direct costs of rental operations:
Depreciation of rental equipment		1,325			4,012
Rental related services		2,020			4,383
Other		1,270			2,969
Total direct costs of rental operations		4,614			11,364
Costs of sales		159			502
Total costs of revenues		4,773			11,866
Gross Profit
Rental		3,926			7,210
Rental related services		564			902
Rental operations		4,490			8,112
Sales		110			155
Other		65			187
Total gross profit		4,665			8,454
Selling and administrative expenses		2,582			6,522
Operating income		2,083			1,932
Interest expense allocation		(374	)		(544	)
Income from discontinued operations before provision for income taxes		1,709			1,388
Provision for income taxes from discontinued operations		453			273
Income from discontinued operations	$	1,256		$	1,115
Other Selected Information
Adjusted EBITDA	$	3,682		$	6,707

The following table presents the carrying value of the divested business' assets and liabilities as presented within assets and liabilities of discontinued operations on the condensed consolidated balance sheets as of December 31, 2022:

	December 31,
(in thousands)	2022
Assets
Accounts receivable, net of allowance for credit losses of $450	$	20,086
Rental equipment, net		137,738
Property, plant and equipment, net		6,632
Prepaid expenses and other assets		191
Intangible assets, net		5,700
Goodwill		25,902
Total assets of discontinued operations	$	196,249
Liabilities
Accounts payable and accrued liabilities	$	9,621
Deferred income taxes, net		43,550
Total liabilities of discontinued operations	$	53,171

Schedule of Operating and Investing Items Related to Discontinued Operations

For the three months ended March 31, 2023 and 2022, significant operating and investing items related to Adler Tanks were as follows:

	March 31,			March 31,
(in thousands)	2023			2022
Operating activities of discontinued operations:
Depreciation and amortization	$	1,457		$	4,450
Gain on sale of used rental equipment		(111	)		(155	)
Investing activities of discontinued operations:
Proceeds from sales of used rental equipment		269			657
Purchases of rental equipment		(25	)		(108	)
Purchases of property, plant and equipment		(40	)		(12	)

Reconciliation of Income from Discontinued Operations to Adjusted EBITDA

The following table presents the reconciliation of income from discontinued operations to Adjusted EBITDA for the three months ended March 31, 2023 and 2022:

	March 31,		March 31,
(in thousands)	2023		2022
Income from discontinued operations	$	1,256	$	1,115
Provision for income taxes from discontinued operations		453		273
Interest expense		374		544
Depreciation and amortization		1,457		4,450
EBITDA		3,540		6,382
Share-based compensation		118		248
Transaction costs		24		—
Adjusted EBITDA from discontinued operations	$	3,682	$	6,630