Segment Reporting

12 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]

SEGMENT REPORTING

NOTE 10.     SEGMENT REPORTING

FASB guidelines establish annual and interim reporting standards for an enterprise’s operating segments and related disclosures about its products, services, geographic areas and major customers. In accordance with these guidelines the Company’s four reportable segments are Mobile Modular, TRS-RenTelco, Adler Tanks and Enviroplex. Management focuses on several key measures to evaluate and assess each segment’s performance including rental revenue growth, gross margin, and income before provision for income taxes. As separate corporate entities, Adler Tanks and Enviroplex revenues and expenses are separately maintained from Mobile Modular and TRS-RenTelco. 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 amongst Mobile Modular, TRS-RenTelco and Adler Tanks based on their pro-rata share of average rental equipment at cost, goodwill, 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 years ended December 31, 2012, 2011 and 2010, for the Company’s reportable segments is shown in the following tables:

Segment Data	Mobile Modular			TRS-RenTelco			Adler Tanks			Enviroplex 1			Consolidated
(dollar amounts in thousands)
Year Ended December 31,
2012
Rental Revenues	$	79,518		$	101,645		$	67,281		$	—		$	248,444
Rental Related Services Revenues		25,775			3,673			17,472			—			46,920
Sales and Other Revenues		14,474			27,855			2,558			23,823			68,710
Total Revenues		119,767			133,173			87,311			23,823			364,074
Depreciation of Rental Equipment		13,942			38,174			11,703			—			63,819
Gross Profit		52,022			62,083			51,157			3,032			168,294
Interest Expense (Income) Allocation		4,547			2,384			2,350			(132	)		9,149
Income (Loss) before Provision for Income Taxes		13,443			33,631			26,706			(913	)		72,867
Rental Equipment Acquisitions		21,042			51,793			55,919			—			128,754
Accounts Receivable, net (period end)		39,066			24,654			24,523			4,213			92,456
Rental Equipment, at cost (period end)		551,101			266,934			254,810			—			1,072,845
Rental Equipment, net book value (period end)		384,813			107,999			226,041			—			718,853
Utilization (period end) 2		66.7	%		64.1	%		67.5	%
Average Utilization 2		66.4	%		65.8	%		71.5	%

Segment Data (Continued)		Mobile Modular			TRS-RenTelco			Adler Tanks			Enviroplex 1			Consolidated
(dollar amounts in thousands)
Year Ended December 31,
2011
Rental Revenues	$	79,969		$	95,694		$	59,243		$	—		$	234,906
Rental Related Services Revenues		24,063			3,133			12,290			—			39,486
Sales and Other Revenues		20,577			26,488			425			20,788			68,278
Total Revenues		124,609			125,315			71,958			20,788			342,670
Depreciation of Rental Equipment		13,780			38,039			8,368			—			60,187
Gross Profit		55,193			57,069			49,619			4,910			166,791
Interest Expense (Income) Allocation		4,036			2,124			1,659			(213	)		7,606
Income before Provision for Income Taxes		19,026			29,024			31,262			1,746			81,058
Rental Equipment Acquisitions		33,824			55,302			68,628			—			157,754
Accounts Receivable, net (period end)		44,013			24,236			19,226			5,197			92,671
Rental Equipment, at cost (period end)		539,147			258,586			201,456			—			999,189
Rental Equipment, net book value (period end)		383,621			105,565			183,960			—			673,146
Utilization (period end) 2		67.3	%		67.1	%		79.8	%
Average Utilization 2		67.1	%		66.0	%		86.2	%
2010
Rental Revenues	$	82,648		$	82,540		$	35,427		$	—		$	200,615
Rental Related Services Revenues		22,947			2,240			9,515			—			34,702
Sales and Other Revenues		21,117			22,982			289			11,695			56,083
Total Revenues		126,712			107,762			45,231			11,695			291,400
Depreciation of Rental Equipment		13,734			37,017			5,648			—			56,399
Gross Profit		56,902			43,475			27,685			2,753			130,815
Interest Expense (Income) Allocation		3,513			1,791			1,080			(198	)		6,186
Income (Loss) before Provision for Income Taxes		25,080			19,263			14,444			263			59,050
Rental Equipment Acquisitions		22,948			42,406			52,353			—			117,707
Accounts Receivable, net (period end)		39,041			20,620			14,751			2,076			76,488
Rental Equipment, at cost (period end)		514,548			250,125			133,095			—			897,768
Rental Equipment, net book value (period end) end)		369,195			98,444			123,941			—			591,580
Utilization (period end) 2		67.2	%		64.3	%		84.9	%
Average Utilization 2		67.7	%		66.0	%		76.0	%

1 Gross Enviroplex sales revenues were $24,240, $20,884 and $12,321 in 2012, 2011 and 2010, respectively, which includes inter-segment sales to Mobile Modular of $417, $97 and $626, 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 new equipment inventory and accessory equipment. 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 during 2012, 2011 and 2010. Revenue from foreign country customers accounted for 9%, 8% and 9% of the Company’s revenues for the same periods, respectively.