Segment Reporting

9 Months Ended

Sep. 30, 2011

Segment Reporting [Abstract]

Segment Reporting

NOTE 7. SEGMENT REPORTING

The Company's four reportable segments are (1) its modular building rental division ("Mobile Modular"); (2) its electronic test equipment rental division ("TRS-RenTelco"); (3) its containment solutions for the storage of hazardous and non-hazardous liquids and solids division ("Adler Tanks"); and (4) its classroom manufacturing business selling modular buildings used primarily as classrooms in California ("Enviroplex"). The operations of each of these segments are described in Part I — Item 1, "Business", and the accounting policies of the segments are described in "Note 2 — Significant Accounting Policies" in the Company's Annual Report on Form 10-K for the year ended December 31, 2010. Management focuses on several key measures to evaluate and assess each segment's performance, including rental revenue growth, gross profit, income from operations and income before provision for income taxes. Excluding interest expense, allocations of revenue and expense not directly associated with one of these segments are generally allocated to Mobile Modular, TRS-RenTelco and Adler Tanks based on their pro-rata share of direct revenues. Interest expense is allocated among Mobile Modular, TRS-RenTelco and Adler Tanks based on their pro-rata share of average rental equipment at cost, intangible assets, accounts receivable, deferred income and customer security deposits. The Company does not report total assets by business segment. Summarized financial information for the nine months ended September 30, 2011 and 2010 for the Company's reportable segments is shown in the following table:

(dollar amounts in thousands)	Mobile Modular			TRS-RenTelco			Adler Tanks			Enviroplex 1			Consolidated
Nine Months Ended September 30,
2011
Rental Revenues	$	59,689		$	70,370		$	42,049		$	—		$	172,108
Rental Related Services Revenues		17,886			2,273			8,457			—			28,616
Sales and Other Revenues		16,835			19,149			341			20,415			56,740
Total Revenues		94,410			91,792			50,847			20,415			257,464
Depreciation of Rental Equipment		10,306			28,561			5,927			—			44,794
Gross Profit		40,970			41,561			35,053			5,014			122,598
Selling and Administrative Expenses		24,027			18,966			11,704			2,587			57,284
Income from Operations		16,943			22,595			23,349			2,427			65,314
Interest Expense (Income) Allocation		2,935			1,544			1,174			(166	)		5,487
Income before Provision for Income Taxes		14,008			21,051			22,175			2,593			59,827
Rental Equipment Acquisitions		27,556			47,454			45,846			—			120,856
Accounts Receivable, net (period end)		45,199			22,409			18,839			3,194			89,641
Rental Equipment, at cost (period end)		534,109			266,354			178,805			—			979,268
Rental Equipment, net book value (period end)		381,669			110,444			163,741			—			655,854
Utilization (period end) 2		67.0	%		66.3	%		90.5	%
Average Utilization 2		67.1	%		65.4	%		86.4	%
2010
Rental Revenues	$	61,889		$	60,083		$	23,686		$	—		$	145,658
Rental Related Services Revenues		17,206			1,622			6,890			—			25,718
Sales and Other Revenues		15,487			15,607			122			8,865			40,081
Total Revenues		94,582			77,312			30,698			8,865			211,457
Depreciation of Rental Equipment		10,291			27,527			3,847			—			41,665
Gross Profit		41,126			30,631			18,404			2,199			92,360
Selling and Administrative Expenses		21,239			16,798			8,750			2,142			48,929
Income from Operations		19,887			13,833			9,654			57			43,431
Interest Expense (Income) Allocation		2,664			1,349			782			(148	)		4,647
Income before Provision for Income Taxes		17,223			12,484			8,872			205			38,784
Rental Equipment Acquisitions		19,070			32,613			41,539			—			93,222
Accounts Receivable, net (period end)		49,721			19,865			13,267			6,059			88,912
Rental Equipment, at cost (period end)		514,597			250,063			122,382			—			887,042
Rental Equipment, net book value (period end)		370,971			101,157			115,021			—			587,149
Utilization (period end) 2		67.4	%		67.4	%		77.4	%
Average Utilization 2		67.8	%		66.1	%		73.1	%

1 Gross Enviroplex sales revenues were $20,512 and $9,150 for the nine months ended September 30, 2011 and 2010, respectively, which includes inter-segment sales to Mobile Modular of $97 and $285, respectively, which have been eliminated in consolidation.

2 Utilization is calculated each month by dividing the cost of rental equipment on rent by the total cost of rental equipment excluding accessory equipment and, for Mobile Modular and Adler Tanks, excluding new equipment inventory. The Average Utilization for the period is calculated using the average costs of rental equipment.

No single customer accounted for more than 10% of total revenues for the nine months ended September 30, 2011 and 2010. In addition, total foreign country customers and operations accounted for less than 10% of the Company's revenues and long-lived assets for the same periods.