Segment Reporting

12 Months Ended

Dec. 31, 2015

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.    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, 2015, 2014 and 2013, for the Company’s reportable segments is shown in the following tables:

Segment Data (dollar amounts in thousands)	Mobile Modular			TRS- RenTelco			Adler Tanks			Enviroplex 1			Consolidated
Year Ended December 31,
2015
Rental revenues	$	115,986		$	89,208		$	68,502		$       —			$	273,696
Rental related services revenues		45,616			3,055			24,643		—				73,314
Sales and other revenues		22,682			22,754			1,486			10,612			57,534
Total revenues		184,284			115,017			94,631			10,612			404,544
Depreciation of rental equipment		19,246			39,974			15,993		—				75,213
Gross profit		78,771			47,836			47,397			2,903			176,907
Selling and administrative expenses		46,496			22,930			27,494			3,030			99,950
Income (loss) from operation		32,275			24,906			19,903			(127	)		76,957
Interest expense (income) allocation		(5,363	)		(2,194	)		(2,729	)		194			(10,092	)
Income before provision for income taxes		26,912			22,224			17,174			67			66,377
Rental equipment acquisitions		79,622			44,316			9,440		—				133,378
Accounts receivable, net (period end)		53,796			21,784			17,955			1,728			95,263
Rental equipment, at cost (period end)		736,875			262,945			310,263		—				1,310,083
Rental equipment, net book value (period end)		529,483			102,191			237,927		—				869,601
Utilization (period end) 2		76.9	%		58.7	%		49.7	%
Average utilization 2		75.8	%		60.5	%		58.3	%

Segment Data(Continued) (dollar amounts in thousands)	Mobile Modular			TRS- RenTelco			Adler Tanks			Enviroplex 1			Consolidated
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
Selling and administrative expenses		42,069			23,736			27,424			3,630			96,859
Income from operation		21,386			36,513			26,028			1,433			85,360
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 utilization 2		72.3	%		60.4	%		62.9	%
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
Selling and administrative expenses		36,488			24,542			24,644			3,091			88,765
Income from operation		13,935			38,978			26,432			905			80,250
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 utilization 2		68.3	%		62.7	%		64.2	%

1 Gross Enviroplex sales revenues were $11,530, $19,017 and $17,859 in 2015, 2014 and 2013, respectively, which includes inter-segment sales to Mobile Modular of $918, $1,560 and $4, 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 2015, 2014 and 2013.  Revenue from foreign country customers accounted for 5%, 5% and 7% of the Company’s revenues for the same periods, respectively.