Discontinued Operations (Tables)

6 Months Ended

Jun. 30, 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 six months ended June 30, 2023 and 2022:

(dollar amounts in thousands)	Six Months Ended June 30,
	2023			2022
Revenues
Rental	$	6,520		$	30,148
Rental related services		2,584			12,058
Rental operations		9,104			42,206
Sales		269			1,258
Other		65			519
Total revenues		9,438			43,983
Costs and Expenses
Direct costs of rental operations:
Depreciation of rental equipment		1,325			7,994
Rental related services		2,020			9,456
Other		1,270			6,278
Total direct costs of rental operations		4,614			23,728
Costs of sales		159			920
Total costs of revenues		4,773			24,648
Gross Profit
Rental		3,926			15,876
Rental related services		564			2,602
Rental operations		4,490			18,478
Sales		110			338
Other		65			519
Total gross profit		4,665			19,335
Selling and administrative expenses		2,583			13,501
Income from operations		2,082			5,834
Interest expense allocation		(374	)		(1,119	)
Income from discontinued operations before provision for income taxes		1,709			4,715
Provision for income taxes from discontinued operations		453			987
Income from discontinued operations	$	1,256		$	3,728
Other Selected Information
Adjusted EBITDA	$	3,682		$	15,327

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 six months ended June 30, 2023 and 2022, significant operating and investing items related to Adler Tanks were as follows:

	June 30,			June 30,
(in thousands)	2023			2022
Operating activities of discontinued operations:
Depreciation and amortization	$	1,457		$	8,864
Gain on sale of used rental equipment		(111	)		(338	)
Investing activities of discontinued operations:
Proceeds from sales of used rental equipment		269			1,258
Purchases of rental equipment		(25	)		(1,410	)
Purchases of property, plant and equipment		(40	)		(83	)

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 six months ended June 30, 2023 and 2022:

	June 30,		June 30,
(in thousands)	2023		2022
Income from discontinued operations	$	1,256	$	3,728
Provision for income taxes from discontinued operations		453		987
Interest expense		374		1,119
Depreciation and amortization		1,457		8,864
EBITDA		3,540		14,698
Share-based compensation		118		629
Transaction costs		24		—
Adjusted EBITDA from discontinued operations	$	3,682	$	15,327