Segment Reporting

12 Months Ended

Dec. 31, 2014

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, 2014, 2013 and 2012, for the Company’s reportable segments is shown in the following tables:

Segment Data	Mobile Modular			TRS-RenTelco			Adler Tanks			Enviroplex1			Consolidated
(dollar amounts in thousands)
Year Ended December 31,
2014
Rental revenues	$	96,457		$	99,020		$	74,098		$	—		$	269,575
Rental related services revenues		35,263			3,331			25,538			—			64,132
Sales and other revenues		29,855			25,951			1,152			17,457			74,415
Total revenues		161,575			128,302			100,788			17,457			408,122
Depreciation of rental equipment		16,536			40,935			15,207			—			72,678
Gross profit		63,455			60,249			53,452			5,063			182,219
Interest expense (income) allocation		4,768			2,075			2,618			(181	)		9,280
Income before provision for income taxes		16,959			34,383			23,605			1,614			76,561
Rental equipment acquisitions		82,792			45,158			20,652			—			148,602
Accounts receivable, net (period end)		46,797			28,849			21,031			4,617			101,294
Rental equipment, at cost (period end)		664,340			261,995			303,303			—			1,229,638
Rental equipment, net book value (period end)		473,960			105,729			246,061			—			825,750
Utilization (period end)2		75.0	%		59.8	%		63.9	%
Average utilization2		72.3	%		60.4	%		62.9	%

Segment Data (Continued)		Mobile Modular			TRS-RenTelco			Adler Tanks			Enviroplex1			Consolidated
(dollar amounts in thousands)
Year Ended December 31,
2013
Rental revenues	$	82,503		$	102,101		$	71,162		$	—		$	255,766
Rental related services revenues		28,891			3,095			21,162			—			53,148
Sales and other revenues		21,267			29,857			1,616			17,855			70,595
Total revenues		132,661			135,053			93,940			17,855			379,509
Depreciation of rental equipment		14,459			39,953			13,796			—			68,208
Gross profit		50,423			63,520			51,076			3,996			169,015
Interest expense (income) allocation		4,318			2,156			2,419			(206	)		8,687
Income before provision for income taxes		9,617			36,633			24,013			1,111			71,374
Rental equipment acquisitions		52,953			52,625			31,023			—			136,601
Accounts receivable, net (period end)		37,163			27,328			21,915			1,244			87,650
Rental equipment, at cost (period end)		592,391			267,772			284,005			—			1,144,168
Rental equipment, net book value (period end)		415,366			109,988			241,656			—			767,010
Utilization (period end)2		70.7	%		58.2	%		57.7	%
Average utilization2		68.3	%		62.7	%		64.2	%
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			27,820			2,558			23,823			68,675
Total revenues		119,767			133,138			87,311			23,823			364,039
Depreciation of rental equipment		13,942			38,174			11,703			—			63,819
Gross profit		52,022			62,048			51,157			3,032			168,259
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			24,323			4,213			92,256
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 utilization2		66.4	%		65.8	%		71.5	%

1 Gross Enviroplex sales revenues were $19,017, $17,859 and $24,240 in 2014, 2013 and 2012, respectively, which includes inter-segment sales to Mobile Modular of $1,560, $4 and $417, 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 2014, 2013 and 2012. Revenue from foreign country customers accounted for 5%, 7% and 9% of the Company’s revenues for the same periods, respectively.