Discontinued Operations (Tables)

9 Months Ended

Sep. 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 nine months ended September 30, 2023 and 2022:

(dollar amounts in thousands)	Nine Months Ended September 30,
	2023			2022
Revenues
Rental	$	6,520		$	47,638
Rental related services		2,584			19,221
Rental operations		9,104			66,859
Sales		269			2,235
Other		65			1,082
Total revenues		9,438			70,176
Costs and Expenses
Direct costs of rental operations:
Depreciation of rental equipment		1,325			11,996
Rental related services		2,020			14,851
Other		1,270			9,783
Total direct costs of rental operations		4,614			36,630
Costs of sales		159			1,613
Total costs of revenues		4,773			38,243
Gross Profit
Rental		3,926			25,859
Rental related services		564			4,370
Rental operations		4,490			30,229
Sales		110			622
Other		65			1,082
Total gross profit		4,665			31,933
Selling and administrative expenses		2,582			20,642
Income from operations		2,083			11,291
Interest expense allocation		(374	)		(1,941	)
Income from discontinued operations before provision for income taxes		1,709			9,350
Provision for income taxes from discontinued operations		453			2,170
Income from discontinued operations	$	1,256		$	7,180
Other Selected Information
Adjusted EBITDA	$	3,682		$	25,443

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

	September 30,			September 30,
(in thousands)	2023			2022
Operating activities of discontinued operations:
Depreciation and amortization	$	1,457		$	13,290
Gain on sale of used rental equipment		(111	)		(478	)
Investing activities of discontinued operations:
Proceeds from sales of used rental equipment		269			1,675
Purchases of rental equipment		(25	)		(2,878	)
Purchases of property, plant and equipment		(40	)		(88	)

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 nine months ended September 30, 2023 and 2022:

	September 30,		September 30,
(in thousands)	2023		2022
Income from discontinued operations	$	1,256	$	7,180
Provision for income taxes from discontinued operations		453		2,170
Interest expense		374		1,941
Depreciation and amortization		1,457		13,290
EBITDA		3,540		24,581
Share-based compensation		118		862
Transaction costs		24		—
Adjusted EBITDA from discontinued operations	$	3,682	$	25,443