Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 15, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | HEES | ||
Entity Registrant Name | H&E EQUIPMENT SERVICES, INC. | ||
Entity Central Index Key | 0001339605 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 36,322,896 | ||
Entity Public Float | $ 1,047,547,610 | ||
Entity File Number | 000-51759 | ||
Entity Tax Identification Number | 81-0553291 | ||
Entity Address, Address Line One | 7500 Pecue Lane | ||
Entity Address, City or Town | Baton Rouge | ||
Entity Address, State or Province | LA | ||
Entity Address, Postal Zip Code | 70809 | ||
City Area Code | 225 | ||
Local Phone Number | 298-5200 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Security Exchange Name | NASDAQ | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Entity Incorporation, State or Country Code | DE | ||
ICFR Auditor Attestation Flag | true | ||
Documents Incorporated by Reference | Portions of the document listed below have been incorporated by reference into the indicated parts of this Form 10-K, as specified in the responses to the item numbers involved. Part III The registrant’s definitive proxy statement, for use in connection with the Annual Meeting of Stockholders, to be filed within 120 days after the registrant’s fiscal year ended December 31, 2022. | ||
Auditor Firm ID | 243 | ||
Auditor Name | BDO USA, LLP | ||
Auditor Location | Dallas, Texas, USA |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Assets | |||
Cash and cash equivalents | $ 81,330 | $ 357,296 | |
Receivables, net of allowance for doubtful accounts of $6,637 and $4,178, respectively | 225,294 | 157,226 | |
Inventories, net of reserves for obsolescence of $54 and $73, respectively | 107,842 | 75,299 | |
Prepaid expenses and other assets | 21,455 | 21,081 | |
Rental equipment, net of accumulated depreciation of $884,740 and $722,646, respectively | 1,418,951 | 1,116,456 | |
Property and equipment, net of accumulated depreciation and amortization of $177,017 and $161,913, respectively | 134,637 | 112,281 | |
Operating lease right-of-use assets, net of accumulated amortization of $51,419 and $36,884, respectively | 164,566 | 151,222 | |
Finance lease right-of-use assets, net of accumulated amortization of $105 | 1,545 | ||
Deferred financing costs, net of accumulated amortization of $16,518 and $15,818, respectively | 758 | 1,458 | |
Intangible assets, net of accumulated amortization of $19,369 and $14,709, respectively | 32,631 | 24,991 | |
Goodwill | 102,690 | 63,137 | [1] |
Total assets | 2,291,699 | 2,080,447 | |
Liabilities: | |||
Accounts payable | 129,482 | 95,604 | |
Manufacturer flooring plans payable | 422 | 20,924 | |
Accrued expenses payable and other liabilities | 77,142 | 63,908 | |
Dividends payable | 377 | 128 | |
Senior unsecured notes, net of unaccreted discount of $6,979 and $8,151 and deferred financing costs of $1,612 and $1,882, respectively | 1,241,409 | 1,239,967 | |
Operating lease liabilities | 169,069 | 155,303 | |
Finance lease liabilities | 1,594 | ||
Deferred income taxes | 271,162 | 201,231 | |
Total liabilities | 1,890,657 | 1,777,065 | |
Commitments and Contingencies (Note 13) | |||
Stockholders’ equity: | |||
Preferred stock, $0.01 par value, 25,000,000 shares authorized; no shares issued | |||
Common stock, $0.01 par value, 175,000,000 shares authorized; 40,567,876 and 40,353,299 shares issued at December 31, 2022 and December 31, 2021, respectively, and 36,309,321 and 36,141,667 shares outstanding at December 31, 2022 and December 31, 2021, respectively | 405 | 403 | |
Additional paid-in capital | 251,901 | 244,638 | |
Treasury stock at cost, 4,258,555 and 4,211,632 shares of common stock held at December 31, 2022 and December 31, 2021, respectively | (69,964) | (68,294) | |
Retained earnings | 218,700 | 126,635 | |
Total stockholders’ equity | 401,042 | 303,382 | |
Total liabilities and stockholders’ equity | $ 2,291,699 | $ 2,080,447 | |
[1] The total carrying amount of goodwill as of December 31, 2022 and 2021 in the table above is reflected net of $ 92.7 million of accumulated impairment charges. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivables | $ 6,637 | $ 4,178 |
Reserves for obsolescence inventories | 54 | 73 |
Accumulated depreciation, rental equipment | 884,740 | 722,646 |
Accumulated depreciation and amortization, property and equipment | 177,017 | 161,913 |
Accumulated amortization, operating lease right-of-use assets | 51,419 | 36,884 |
Accumulated amortization, financing lease right-of-use assets | 105 | |
Accumulated amortization, deferred financing costs | 16,518 | 15,818 |
Accumulated amortization, intangible assets | 19,369 | 14,709 |
Unaccreted discount, net | 6,979 | 8,151 |
Deferred financing costs | $ 1,612 | $ 1,882 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 175,000,000 | 175,000,000 |
Common stock, shares issued | 40,567,876 | 40,353,299 |
Common stock, shares outstanding | 36,309,321 | 36,141,667 |
Treasury stock, shares | 4,258,555 | 4,211,632 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Revenues: | ||||
Revenues | $ 1,244,518 | $ 1,062,797 | $ 1,006,975 | |
Cost of revenues: | ||||
Cost of revenues | 689,355 | 647,434 | 649,912 | |
Gross profit | 555,163 | 415,363 | 357,063 | |
Selling, general and administrative expenses | 343,845 | 290,791 | 266,397 | |
Impairment of goodwill | 55,664 | |||
Gain from sales of property and equipment, net | 16,836 | 7,748 | 8,410 | |
Income from operations | 228,154 | 132,320 | 43,412 | |
Other income (expense): | ||||
Interest expense | (54,033) | (53,758) | (61,790) | |
Loss on early extinguishment of debt | (44,630) | |||
Other, net | 6,609 | 3,162 | 3,184 | |
Total other expense, net | (47,424) | (50,596) | (103,236) | |
Income (loss) from operations before provision (benefit) for income taxes | 180,730 | 81,724 | (59,824) | |
Provision (benefit) for income taxes | 47,036 | 21,160 | (13,428) | |
Net income (loss) from continuing operations | 133,694 | 60,564 | (46,396) | |
Discontinued Operations: | ||||
Income (loss) from discontinued operations before provision for income taxes | (2,049) | 55,948 | 18,438 | |
Provision (benefit) for income taxes | (525) | 13,972 | 4,709 | |
Net income (loss) from discontinued operations | (1,524) | 41,976 | 13,729 | |
Net income (loss) | $ 132,170 | $ 102,540 | $ (32,667) | |
Net income (loss) from continuing operations per common share: | ||||
Basic | [1] | $ 3.72 | $ 1.67 | $ (1.29) |
Diluted | [1] | 3.70 | 1.66 | (1.29) |
Earnings Per Share Discontinued Operations Abstract | ||||
Basic | (0.04) | 1.16 | 0.38 | |
Diluted | (0.04) | 1.15 | 0.38 | |
Net income (loss) per common share: | ||||
Basic | [1] | 3.68 | 2.83 | (0.91) |
Diluted | [1] | $ 3.66 | $ 2.81 | $ (0.91) |
Weighted average common shares outstanding: | ||||
Basic | 35,943 | 36,261 | 36,067 | |
Diluted | 36,089 | 36,451 | 36,067 | |
Dividends declared per common share outstanding | $ 1.10 | $ 1.10 | $ 1.10 | |
Equipment Rentals [Member] | ||||
Revenues: | ||||
Revenues | $ 956,042 | $ 729,700 | $ 644,445 | |
Cost of revenues: | ||||
Cost of revenues | 495,799 | 414,071 | 386,937 | |
Equipment Rentals [Member] | Rentals Other [Member] | ||||
Cost of revenues: | ||||
Cost of revenues | 99,554 | 76,934 | 63,909 | |
Equipment Rentals [Member] | Rental Depreciation [Member] | ||||
Cost of revenues: | ||||
Cost of revenues | 267,395 | 227,772 | 225,424 | |
Equipment Rentals [Member] | Rental Expense [Member] | ||||
Cost of revenues: | ||||
Cost of revenues | 128,850 | 109,365 | 97,604 | |
Used Equipment Sales [Member] | ||||
Revenues: | ||||
Revenues | 90,885 | 135,245 | 139,769 | |
Cost of revenues: | ||||
Cost of revenues | 46,569 | 86,323 | 94,799 | |
New Equipment Sales [Member] | ||||
Revenues: | ||||
Revenues | 92,526 | 92,677 | 113,708 | |
Cost of revenues: | ||||
Cost of revenues | 79,430 | 80,822 | 101,501 | |
Parts Sales [Member] | ||||
Revenues: | ||||
Revenues | 64,646 | 65,623 | 65,881 | |
Cost of revenues: | ||||
Cost of revenues | 46,611 | 48,346 | 48,131 | |
Services Revenues [Member] | ||||
Revenues: | ||||
Revenues | 34,226 | 33,034 | 35,989 | |
Cost of revenues: | ||||
Cost of revenues | 12,228 | 11,237 | 11,525 | |
Other [Member] | ||||
Revenues: | ||||
Revenues | 6,193 | 6,518 | 7,183 | |
Cost of revenues: | ||||
Cost of revenues | $ 8,718 | $ 6,635 | $ 7,019 | |
[1] Because of the method used in calculating per share data, the summations may not necessarily total to the per share data computed for the total company due to rounding. |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] |
Beginning balances at Dec. 31, 2019 | $ 307,519 | $ 398 | $ 235,844 | $ (64,783) | $ 136,060 |
Beginning balances, shares at Dec. 31, 2019 | 39,921,838 | ||||
Stock-based compensation | 4,362 | 4,362 | |||
Cash dividends declared on common stock ($1.10 per share) | (39,579) | (39,579) | |||
Issuances of non-vested restricted common stock, net of restricted stock forfeitures | 3 | $ 3 | |||
Issuances of non-vested restricted common stock, net of restricted stock forfeitures, shares | 320,873 | ||||
Repurchases of 76,407, 61,476 and 46,923 shares of restricted common stock in 31 December 2020, 2021 and 2022 respectively | (1,405) | (1,405) | |||
Net income (loss) | (32,667) | (32,667) | |||
Ending Balance at Dec. 31, 2020 | 238,233 | $ 401 | 240,206 | (66,188) | 63,814 |
Balance, Shares at Dec. 31, 2020 | 40,242,711 | ||||
Stock-based compensation | 4,432 | 4,432 | |||
Cash dividends declared on common stock ($1.10 per share) | (39,719) | (39,719) | |||
Issuances of non-vested restricted common stock, net of restricted stock forfeitures | 2 | $ 2 | |||
Issuances of non-vested restricted common stock, net of restricted stock forfeitures, shares | 110,588 | ||||
Repurchases of 76,407, 61,476 and 46,923 shares of restricted common stock in 31 December 2020, 2021 and 2022 respectively | (2,106) | (2,106) | |||
Net income (loss) | 102,540 | 102,540 | |||
Ending Balance at Dec. 31, 2021 | $ 303,382 | $ 403 | 244,638 | (68,294) | 126,635 |
Balance, Shares at Dec. 31, 2021 | 40,353,299 | 40,353,299 | |||
Stock-based compensation | $ 7,263 | 7,263 | |||
Cash dividends declared on common stock ($1.10 per share) | (40,105) | (40,105) | |||
Issuances of non-vested restricted common stock, net of restricted stock forfeitures | 2 | $ 2 | |||
Issuances of non-vested restricted common stock, net of restricted stock forfeitures, shares | 214,577 | ||||
Repurchases of 76,407, 61,476 and 46,923 shares of restricted common stock in 31 December 2020, 2021 and 2022 respectively | (1,670) | (1,670) | |||
Net income (loss) | 132,170 | 132,170 | |||
Ending Balance at Dec. 31, 2022 | $ 401,042 | $ 405 | $ 251,901 | $ (69,964) | $ 218,700 |
Balance, Shares at Dec. 31, 2022 | 40,567,876 | 40,567,876 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash dividends declared on common stock, per share | $ 1.10 | $ 1.10 | $ 1.10 |
Repurchase of restricted common stock, shares | 46,923 | 61,476 | 76,407 |
Retained Earnings [Member] | |||
Cash dividends declared on common stock, per share | $ 1.10 | $ 1.10 | $ 1.10 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 132,170 | $ 102,540 | $ (32,667) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization of property and equipment | 28,810 | 27,347 | 29,359 |
Depreciation of rental equipment | 267,395 | 231,492 | 233,809 |
Amortization of intangible assets | 4,660 | 3,970 | 3,987 |
Amortization of deferred financing costs | 970 | 971 | 1,004 |
Accretion of note discount, net of premium amortization | 1,172 | 1,172 | 508 |
Non-cash operating lease expense | 14,535 | 12,964 | 12,723 |
Amortization of finance lease right-of-use assets | 105 | 122 | 162 |
Provision for losses on accounts receivable | 3,264 | 1,892 | 4,018 |
Provision for inventory obsolescence | 32 | 54 | 127 |
Deferred income taxes | 42,278 | 30,221 | (9,116) |
Stock-based compensation expense | 7,263 | 4,432 | 4,362 |
Loss (gain) on sale of discontinued operations | 1,917 | (42,072) | |
Impairment of goodwill | 61,994 | ||
Loss on early extinguishment of debt | 44,630 | ||
Gain from sales of property and equipment, net | (16,836) | (7,797) | (10,966) |
Gain from sales of rental equipment, net | (43,397) | (50,756) | (47,728) |
Changes in operating assets and liabilities, net of acquisitions: | |||
Receivables | (59,768) | 2,868 | 9,328 |
Inventories | (75,375) | (56,535) | (9,521) |
Prepaid expenses and other assets | (1) | (10,923) | (117) |
Accounts payable | 29,999 | 11,208 | 31,042 |
Manufacturer flooring plans payable | (20,502) | 11,309 | (15,586) |
Accrued expenses payable and other liabilities | (5,453) | (14,907) | (23,238) |
Deferred compensation payable | (2,098) | ||
Net cash provided by operating activities | 313,238 | 259,572 | 286,016 |
Cash flows from investing activities: | |||
Acquisition of business, net of cash acquired | (135,710) | ||
Closing adjustment on sale of discontinued operations | (2,256) | ||
Proceeds from the sale of discontinued operations | 135,945 | ||
Purchases of property and equipment | (51,452) | (34,622) | (18,664) |
Purchases of rental equipment | (464,434) | (418,082) | (116,363) |
Proceeds from sales of property and equipment | 23,626 | 11,884 | 14,524 |
Proceeds from sales of rental equipment | 83,689 | 133,900 | 141,594 |
Net cash provided by (used in) investing activities | (546,537) | (170,975) | 21,091 |
Cash flows from financing activities: | |||
Purchases of treasury stock | (1,670) | (2,106) | (1,405) |
Borrowings on senior secured credit facility | 1,278,182 | 1,417,770 | 1,694,055 |
Payments on senior secured credit facility | (1,278,182) | (1,417,770) | (1,910,934) |
Principal payments on senior unsecured notes due 2025 | (950,000) | ||
Costs paid to tender and redeem senior unsecured notes due 2025 | (40,944) | ||
Proceeds from issuance of senior unsecured notes due 2028 | 1,250,000 | ||
Payments of deferred financing costs | (135) | (11,404) | |
Dividends paid | (39,856) | (39,748) | (39,595) |
Payments of finance lease obligations | (1,141) | (194) | (245) |
Net cash used in financing activities | (42,667) | (42,183) | (10,472) |
Net decrease in cash and cash equivalents | (275,966) | 46,414 | 296,635 |
Cash and cash equivalents, beginning of year | 357,296 | 310,882 | 14,247 |
Cash and cash equivalents, end of year | 81,330 | 357,296 | 310,882 |
Supplemental schedule of non-cash investing and financing activities: | |||
Accrued acquisition purchase price consideration | 803 | ||
Non-cash asset purchases: | |||
Assets transferred from inventory to rental fleet | 43,321 | 18,669 | 22,384 |
Purchases of property and equipment included in accrued expenses payable and other liabilities | (1,213) | 425 | (429) |
Operating lease assets obtained in exchange for new operating lease liabilities | 27,880 | 13,565 | 18,372 |
Cash paid during the year for: | |||
Interest | 51,828 | 51,748 | 76,547 |
Income taxes paid, net of refunds received | $ 5,894 | $ 4,810 | $ (223) |
Organization and Nature of Oper
Organization and Nature of Operations | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Operations | (1) Organization and Nature of Operations Founded in 1961, H&E Equipment Services, Inc. (or “the Company”, “we”, “us”, or “our”) is one of the largest rental equipment companies in the nation, serving customers across 29 states. The Company’s fleet is versatile with an equipment mix comprised of aerial work platforms, earthmoving, material handling, and other general and specialty lines. H&E serves a diverse set of end markets in many high-growth geographies including branches throughout the Pacific Northwest, West Coast, Intermountain, Southwest, Gulf Coast, Southeast, Midwest and Mid-Atlantic regions . |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | (2) Significant Accounting Policies Principles of Consolidation and Basis of Presentation Our consolidated financial statements include the financial position and results of operations of H&E Equipment Services, Inc. and its wholly-owned subsidiaries H&E Finance Corp., GNE Investments, Inc., Great Northern Equipment, Inc., H&E California Holding, Inc., H&E Equipment Services (California), LLC, H&E Equipment Services (Midwest), Inc. and H&E Equipment Services (Mid-Atlantic), Inc., collectively referred to herein as “we”, “us”, “our” or the “Company.” On October 1, 2021, the Company sold its crane business (the “Crane Sale”). The results of operations of the Crane Sale are reported in discontinued operations in the Consolidated Statements of Operations for all periods presented and the related assets and liabilities associated with discontinued operations are classified as held for sale in the Consolidated Balance Sheet at December 31, 2020. The Consolidated Statements of Cash Flows includes cash flows related to the discontinued operations and accordingly, cash flow amounts for discontinued operations are disclosed in Note 3 “Acquisitions and Dispositions”. All results and information in the consolidated financial statements are presented as continuing operations and exclude the Crane Sale unless otherwise noted specifically as discontinued operations. For additional information, refer to Note 3. All significant intercompany accounts and transactions have been eliminated in these consolidated financial statements. Business combinations are included in the consolidated financial statements from their respective dates of acquisition. The nature of our business is such that short-term obligations are typically met by cash flows generated from long-term assets. Consequently, and consistent with industry practice, the accompanying consolidated balance sheets are presented on an unclassified basis. Use of Estimates We prepare our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America, which requires management to use its judgment to make estimates and assumptions that affect the reported amounts of assets and liabilities and related disclosures at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reported period. These assumptions and estimates could have a material effect on our consolidated financial statements. Actual results may differ materially from those estimates. We review our estimates on an ongoing basis based on information currently available, and changes in facts and circumstances may cause us to revise these estimates. Reclassifications Certain reclassifications have been made to prior period amounts in the Consolidated Statements of Operations to conform to the current period presentation. These reclassifications did not have a material impact on previously reported amounts. Revenue Recognition We recognize revenue in accordance with two different Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) standards: 1) Topic 606 and 2) Topic 842. Under Topic 606, Revenue from Contracts with Customers, revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Revenue is measured based on the consideration specified in the contract with the customer, and excludes any sales incentives and amounts collected on behalf of third parties. A performance obligation is a promise in a contract to transfer a distinct good or service to a customer. Our contracts with customers generally do not include multiple performance obligations. We recognize revenue when we satisfy a performance obligation by transferring control over a product or service to a customer. The amount of revenue recognized reflects the consideration we expect to be entitled to in exchange for such products or services. Under Topic 842, Leases, we account for equipment rental contracts as operating leases. We recognize revenue from equipment rentals in the period earned, regardless of the timing of billing to customers. A rental contract includes rates for daily, weekly or monthly use, and rental revenues are earned on a daily basis as rental contracts remain outstanding. Because the rental contracts can extend across multiple reporting periods, we record unbilled rental revenues and deferred rental revenues at the end of reporting periods so rental revenues earned is appropriately stated for the periods presented. The tables below summarize our revenues as presented in our Consolidated Statements of Operations for the years ended December 31, 2022, 2021 and 2020 by revenue type and by the applicable accounting standard (amounts in thousands). Year Ended December 31, 2022 Topic 842 Topic 606 Total Revenues: Rental Revenues: Owned equipment rentals $ 814,423 $ 406 $ 814,829 Re-rent revenue 32,726 — 32,726 Ancillary and other rental revenues: Delivery and pick-up — 56,303 56,303 Other 52,184 — 52,184 Total ancillary rental revenues 52,184 56,303 108,487 Total equipment rental revenues 899,333 56,709 956,042 Used equipment sales — 90,885 90,885 New equipment sales — 92,526 92,526 Parts sales — 64,646 64,646 Services revenues — 34,226 34,226 Other — 6,193 6,193 Total revenues $ 899,333 $ 345,185 $ 1,244,518 Year Ended December 31, 2021 Topic 842 Topic 606 Total Revenues: Rental Revenues: Owned equipment rentals $ 617,831 $ 354 $ 618,185 Re-rent revenue 34,819 — 34,819 Ancillary and other rental revenues: Delivery and pick-up — 40,523 40,523 Other 36,173 — 36,173 Total ancillary rental revenues 36,173 40,523 76,696 Total equipment rental revenues 688,823 40,877 729,700 Used equipment sales — 135,245 135,245 New equipment sales — 92,677 92,677 Parts sales — 65,623 65,623 Services revenues — 33,034 33,034 Other — 6,518 6,518 Total revenues $ 688,823 $ 373,974 $ 1,062,797 Year Ended December 31, 2020 Topic 842 Topic 606 Total Revenues: Rental Revenues: Owned equipment rentals $ 557,166 $ 471 $ 557,637 Re-rent revenue 23,507 — 23,507 Ancillary and other rental revenues: Delivery and pick-up — 35,793 35,793 Other 27,508 — 27,508 Total ancillary rental revenues 27,508 35,793 63,301 Total equipment rental revenues 608,181 36,264 644,445 Used equipment sales — 139,769 139,769 New equipment sales — 113,708 113,708 Parts sales — 65,881 65,881 Services revenues — 35,989 35,989 Other — 7,183 7,183 Total revenues $ 608,181 $ 398,794 $ 1,006,975 Revenues by reporting segment are presented in Note 17, using the revenue captions reflected in our Consolidated Statements of Operations. We believe that the disaggregation of our revenues from contracts to customers as reflected above, coupled with further discussion below and the reporting segment in Note 17, depicts how the nature, amount, timing and uncertainty of our revenues and cash flows are affected by economic factors. Nature of goods and services Lease revenues Topic 842 Owned equipment rentals : Owned equipment rentals represent revenues from renting equipment. We account for these rental contracts as operating leases. We recognize revenue from equipment rentals in the period earned, regardless of the timing of billing to customers. A rental contract includes rates for daily, weekly or monthly use, and rental revenues are earned on a daily basis as rental contracts remain outstanding. Our equipment is generally rented for short periods of time (less than a year). Because the rental contracts can extend across multiple reporting periods, we record unbilled rental revenues and deferred rental revenues at the end of reporting periods so rental revenues earned is appropriately stated for the periods presented. The lease terms are included in our contracts, and the determination of whether our contracts contain leases generally does not require significant assumptions or judgments. In some cases, a rental contract may contain a rental purchase option, whereby the customer has an option to purchase the rented equipment at the end of the term for a specified price. Revenues related to the rental contract will be accounted for as an operating lease as the option to purchase is not reasonably certain to be exercised. Lessees do not provide residual value guarantees on rented equipment. Re-rent revenue : Re-rent revenue reflects revenues from equipment that we rent from vendors and then rent to our customers. We account for such rentals as subleases. The accounting for re-rent revenue is the same as the accounting for owned equipment rentals described above. Other equipment rental revenue : Other equipment rental revenue is primarily comprised of (i) revenue from customers who purchase insurance to protect against potential damages or loss to the equipment they rent, (ii) environmental charges associated with the rental of equipment, and (iii) fuel recovery fees charged to customers. Fuel consumption charges are recognized upon return of the rental equipment when fuel consumption by the customer, if any, can be measured. Income from environmental fees and damage waiver insurance policies are recognized when earned over the period the equipment is rented. Revenues from contracts with customers (Topic 606) Substantially all of our revenues under Topic 606 are recognized at a point-in-time rather than over time. Owned equipment rentals: An insignificant portion of our total equipment rental revenues are recognized pursuant to Topic 606 rather than pursuant to Topic 842. These revenues represent services performed by us in connection with the rental of equipment and are comprised of customer training fees on rented equipment and setup and configuration services on rental equipment. Revenues for these services are recognized upon completion of such services. See discussion above regarding rental revenues recognized pursuant to Topic 842. Delivery and pick-up : Delivery and pick-up revenue associated with renting equipment is recognized when the service is performed. Used equipment sales: Revenues from the sales of used equipment are recognized at the time of delivery to, or pick-up by, the customer, which is when the customer obtains control of the promised good. New equipment sales: Revenues from the sales of new equipment are recognized at the time of delivery to, or pick-up by, the customer, which is when the customer obtains control of the promised good. Parts sales: Revenues from the sales of equipment parts are recognized at the time of pick-up by the customer for parts counter sales transactions. For parts that are shipped to a customer, we made an accounting policy election permitted by Topic 606 to treat such shipping activities as fulfillment costs, which results in the fees for shipping activities being included in the parts sales transaction price. Services revenues: We derive our services primarily from maintenance and repair services to customers for equipment that we rent or sell and from customers owned equipment. We recognize services revenues at the time such services are completed, which is when the customer obtains control of the promised service. Other revenues : Other non-segmented revenues relate to equipment support activities that we provide to customers in connection with used and new equipment sales and parts and services revenues and are not generally allocated to reportable segments. Receivables and contract assets and liabilities We manage credit risk associated with our accounts receivables at the customer level. Because the same customers typically generate the revenues that are accounted for under both Topic 606 and Topic 842, the discussions below on credit risk and our allowances for doubtful accounts address our total revenues from Topic 606 and Topic 842. We believe concentration of credit risk with respect to our receivables is limited because our customer base is comprised of a large number of geographically diverse customers. Our largest customer accounted for less than two percent of total revenues for the years ended December 31, 2022, 2021 and 2020 . No single customer accounted for more than 10% of our revenues on an overall or segment basis for any of the three years ended December 31, 2022. We manage credit risk through credit approvals, credit limits and other monitoring procedures. Pursuant to Topic 842 and Topic 326 for rental and non-rental receivables, respectively, we maintain an allowance for doubtful accounts that reflects our estimate of our expected credit losses. Our allowance is estimated using a loss rate model based on delinquency. The estimated loss rate is based on our historical experience with specific customers, our understanding of our current economic circumstances, reasonable and supportable forecasts, and our own judgment as to the likelihood of ultimate payment based upon available data. Our largest exposure to doubtful accounts is our rental operations, which as discussed above is accounted for under Topic 842 and as of December 31, 2022 represents 77 % of our total revenues and an approximate corresponding percentage of our receivables, net and associated allowance for doubtful accounts. We perform credit evaluations of customers and establish credit limits based on reviews of our customers’ current credit information and payment histories. We believe our credit risk is somewhat mitigated by our geographically diverse customer base and our credit evaluation procedures. The actual rate of future credit losses, however, may not be similar to past experience. Our estimate of doubtful accounts could change based on changing circumstances, including changes in the economy or in the particular circumstances of individual customers. Accordingly, we may be required to increase or decrease our allowance for doubtful accounts. Bad debt expense as a percentage of total revenues for the years ended December 31, 2022, 2021 and 2020 was approximately 0.3 %, 0.2 % and 0.4 %, respectively. We do not have material contract assets, impairment losses associated therewith, or material contract liabilities associated with contracts with customers. Our contracts with customers do not generally result in material amounts billed to customers in excess of recognizable revenue. We did not recognize material revenues during the years ended December 31, 2022, 2021 or 2020 that was included in the contract liability balance as of the beginning of such periods. Performance obligations Most of our Topic 606 revenue is recognized at a point-in-time, rather than over time. Accordingly, in any particular period, we do not generally recognize a significant amount of revenue from performance obligations satisfied (or partially satisfied) in previous periods, and the amount of such revenue recognized during the years ended December 31, 2022, 2021 and 2020 was not material. Payment terms Our Topic 606 revenues do not include material amounts of variable consideration. Our payment terms are typically net 30 days, but can vary by the type and location of our customer and the products or services offered. The time between invoicing and when payment is due is not significant. Our contracts do not generally include a significant financing component. Our contracts with customers do not generally result in significant obligations associated with returns, refunds or warranties. See above for a discussion of how we manage credit risk. Sales tax amounts collected from customers are recorded on a net basis. Contract costs We do not recognize any assets associated with the incremental costs of obtaining a contract with a customer (for example, a sales commission) that we expect to recover. Most of our revenue is recognized at a point-in-time or over a period of one year or less, and we use the practical expedient that allows us to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that we otherwise would have recognized is one year or less. Contract estimates and judgments Our revenues accounted for under Topic 606 generally do not require significant estimates or judgments as the transaction price is generally fixed and stated on our contracts. Our contracts generally do not include multiple performance obligations, and accordingly do not generally require estimates of the standalone selling price for each performance obligation. Also, our revenues do not include material amounts of variable consideration. Substantially all of our revenues are recognized at a point-in-time and the timing of the satisfaction of the applicable performance obligations is readily determinable. As noted above, our Topic 606 revenues are generally recognized at the time of delivery to, or pick-up by, the customer. Discontinued Operations In determining whether a group of assets which has been disposed of (or is to be disposed of) should be presented as discontinued operations, the Company analyzes whether the group of assets being disposed of represents a component of the entity. A component typically has historic operations and cash flows that are clearly distinguishable for both operations and financial reporting purposes. In addition, the Company considers whether the disposal represents a strategic shift that has or will have a major effect on the Company’s operations and financial results. This strategic shift could include a disposal of a major geographical area, a major line of business, a major equity method investment, or other major parts of an entity. The Company reports financial results for discontinued operations separately from continuing operations to distinguish the financial impact of disposal transactions from ongoing operations. The assets and liabilities of a discontinued operation held for sale, other than goodwill, are measured at the lower of its carrying amount or fair value less cost to sell. When a portion of a reporting unit that constitutes a business is to be disposed of, the goodwill associated with that business is included in the carrying amount of the business based on the relative fair values of the business to be disposed of and the portion of the reporting unit that will be retained. See Note 3 for additional information. Held for Sale The Company considers assets to be held for sale when management, with appropriate authority, approves and commits to a formal plan to sell the assets at a price reasonable in relation to their estimated fair value, the assets are available for immediate sale in their present condition, the sale of the assets is probable and expected to be completed in one year and it is unlikely that significant changes will be made to the plan. Upon designation as held for sale, the Company records the assets at the lower of their carrying value or their estimated fair value, reduced for the cost to dispose the assets, and ceases to record depreciation and amortization expenses on the assets. Cash and Cash Equivalents Cash and cash equivalents include cash on hand and highly liquid investments with an original maturity of three months or less. Inventories We measure inventory at the lower of cost or net realizable value; where net realizable value is considered to be estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. For used and new equipment inventories, cost is determined by specific-identification. For inventories of parts and supplies, cost is determined by using average cost. Rental Equipment The rental equipment we purchase is stated at cost and is depreciated over the estimated useful life of the equipment using the straight-line method and is included in rental depreciation within our Consolidated Statements of Operations. Estimated useful lives vary based upon type of equipment. Generally, we depreciate aerial work platforms over a ten year estimated useful life, earthmoving equipment over a five year estimated useful life with a 25 % salvage value, and material handling equipment over a seven year estimated useful life. Attachments and other smaller type equipment are depreciated generally over a three year estimated useful life. We periodically evaluate the appropriateness of remaining depreciable lives and any salvage value assigned to rental equipment. Depreciation expense on rental equipment is reflected in rental depreciation in cost of revenues on the Consolidated Statements of Operations. Ordinary repair and maintenance costs and property taxes are reflected in rental expenses in cost of revenues on the Consolidated Statements of Operations. However, expenditures for additions or improvements that significantly extend the useful life of the asset are capitalized in the period incurred. When rental equipment is sold or disposed of, the related cost and accumulated depreciation are removed from the respective accounts and any gains or losses are included in gross profit in the statements of operations. We receive individual offers for fleet on a continual basis, at which time we perform an analysis on whether or not to accept the offer. The rental equipment is not transferred to inventory under the held for sale model as the equipment is used to generate revenues until the equipment is sold. Property and Equipment Property and equipment are recorded at cost and are depreciated over the assets’ estimated useful lives using the straight-line method. Ordinary repair and maintenance costs are included in selling, general and administrative (“SG&A”) expenses on our Consolidated Statements of Operations. However, expenditures for additions or improvements that significantly extend the useful life of the asset are capitalized in the period incurred. At the time assets are sold or disposed of, the cost and accumulated depreciation are removed from their respective accounts and the related gains or losses are reflected in the statements of operations in gains from sales of property and equipment, net. We capitalize interest on qualified construction projects. We additionally capitalize certain costs associated with internally developed software and cloud computing arrangements. We periodically evaluate the appropriateness of remaining depreciable lives assigned to property and equipment. Leasehold improvements are amortized using the straight-line method over their estimated useful lives or the remaining term of the lease, whichever is shorter. Depreciation expense on property and equipment is included in SG&A expenses on our Consolidated Statements of Operations. Generally, we assign the following estimated useful lives to these categories: Category Estimated Transportation equipment 5 years Buildings 39 years Office equipment 5 years Computer equipment 3 years Machinery and equipment 7 years When events or changes in circumstances indicate that the carrying amount of our rental fleet and property and equipment might not be recoverable, the expected future undiscounted cash flows from the assets are estimated and compared with the carrying amount of the assets. If the sum of the estimated undiscounted cash flows is less than the carrying amount of the assets, an impairment loss is recorded. The impairment loss is measured by comparing the fair value of the assets with their carrying amounts. Fair value is determined based on discounted cash flows or appraised values, as appropriate. In support of our review for indicators of impairment, we perform a review of our long-lived assets at the branch level relative to branch performance and conclude whether indicators of impairment exist. We did no t record any impairment losses related to our rental equipment or property and equipment during the years ended December 31, 2022, 2021 or 2020 . Acquisition Accounting We have made a number of acquisitions in the past and we may continue to make additional acquisitions in the future. The assets acquired and liabilities assumed are recorded based on their respective fair values at the date of acquisition. Long-lived assets (principally rental equipment), goodwill and other intangible assets generally represent the largest component of our acquisitions. Historically, virtually all of the rental equipment that we have acquired through business combinations have been classified as “To be Used,” rather than as “To be Sold.” Rental equipment that we acquire and classify as “To be Used” is recorded at fair value and is valued utilizing either a cost or market approach, or a combination of these methods, depending on the asset being valued and the availability of cost or market data. Goodwill is calculated as the excess of the fair value of consideration transferred over the net of the fair value of the assets acquired and the liabilities assumed. Such fair market value assessments require judgments and estimates that can be affected by various factors over time, which may cause final amounts to differ materially from original estimates. The identification of assets acquired, inputs utilized for determining the fair value of assets acquired and liabilities assumed and applicable fair value methodologies all include significant judgement. In addition to long-lived fixed assets, we also acquire other assets and assume liabilities. These other assets and liabilities typically include, but are not limited to, parts inventory, accounts receivable, accounts payable and other working capital items. Because of their short-term nature, the fair values of these assets and liabilities generally approximate the carrying values reflected on the acquired entities balance sheets. However, when appropriate, we adjust these carrying values for factors such as collectability and existence. The intangible assets that we have acquired consist primarily of the goodwill recognized. Depending upon the applicable purchase agreement and the particular facts and circumstances of the business acquired, we may identify other intangible assets, such as trade names or trademarks, noncompetition agreements and customer-related intangibles (specifically, customer relationships). A trademark has a fair value equal to the present value of the royalty income attributable to it. The royalty income attributable to a trademark represents the hypothetical cost savings that are derived from owning the trademark instead of paying royalties to license the trademark from another owner. The fair value of noncompetition agreements is estimated based on an income approach since their values are representative of the current and future revenue and profit erosion protection they provide. Customer relationships are generally valued based on an excess earnings or income approach with consideration to projected cash flows. Goodwill We evaluate goodwill for impairment at least annually, as of October 1, or more frequently if triggering events occur or other impairment indicators arise that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Impairment of goodwill is evaluated at the reporting unit level. A reporting unit is defined as an operating segment (i.e., before aggregation or combination), or one level below an operating segment (i.e., a component). A component of an operating segment is a reporting unit if the component constitutes a business for which discrete financial information is available and segment management regularly reviews the operating results of that component. Historically, we have identified two components within our Rental operating segment (Equipment Rental Component 1 and Equipment Rental Component 2) and have determined that each of our other operating segments (Used Equipment Sales, New Equipment Sales, Parts Sales and Service Revenues) represent a reporting unit, resulting in six total reporting units. As of October 1, 2021 and driven by the strategic shift in our business that led to discontinued operations presentation, we determined that the historical Equipment Rental Component 2 reporting unit differentiation within the rental operating segment was no longer applicable to our current business. As such, we no longer identify two components within the rental equipment operating segment and the Company now has five reporting units which align with our operating segments. Further, the Equipment Rental Component 2 reporting unit was fully impaired during 2020. Topic 350 consists of a one-step assessment to determine whether goodwill is impaired (“Step 1”). Step 1 requires an entity to compare each reporting unit’s carrying value, including goodwill, with its fair value. An entity should recognize a goodwill impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, limited to the total amount of goodwill allocated to the reporting unit. An entity also has an option to perform a qualitative assessment (“Step 0”) to determine if the quantitative impairment test is necessary. Considerable judgment is required by management in performing Step 0 to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. We performed a Step 0 qualitative assessment of goodwill impairment as of our annual testing date, October 1, 2022. We determined that it was more likely than not that the fair value of each of our reporting units containing goodwill was not less than its carrying value and, therefore, did not perform the prescribed quantitative Step 1 goodwill impairment test. We considered various factors in performing the qualitative test, including macroeconomic conditions, industry and market considerations, the overall financial performance of our reporting units, the Company’s stock price and the excess amount between our reporting unit’s fair value and carrying value as indicated on our most recent quantitative assessment. We performed a Step 1 quantitative assessment of goodwill impairment as of our annual testing date, October 1, 2021, for all reporting units containing goodwill. For these reporting units, we compared the carrying values of each reporting unit, inclusive of goodwill, if applicable, and definite-lived intangible assets, to its fair value. We estimated the fair value of these reporting units by weighting results from the income approach and the market approach. Based on this quantitative test, we determined that our Equipment Rentals, Used Equipment Sales and Parts Sales reporting units were not impaired as of October 1, 2021 as their respective fair values exceeded their respective carrying values by approximately 50 %, 98 % and 9 %, respectively. During 2020, for all reporting units containing goodwill, we performed, as of October 1, a Step 1 quantitative assessment of goodwill impairment. For these reporting units, we compared the carrying values of each reporting unit, inclusive of goodwill and definite-lived intangible assets, to its fair value. We estimated the fair value of these reporting units by weighting results from the income approach and the market approach. Based on this quantitative test, we determined that our Equipment Rental Component 1, Used Equipment Sales and Parts Sales reporting units were not impaired as of the October 1, 2020 annual impairment testing date as their respective fair values exceeded their respective carrying values by approximately 44 %, 90 % and 33 %, respectively. Based on our evaluation of the impact to our business in the first quarter of 2020 from the COVID-19 pandemic, we identified triggering events requiring an interim impairment test as of March 31, 2020. These triggering events included a deterioration in macroeconomic conditions, declines in business volume in our industry, a decline in our actual revenue and earnings compared with our planned revenue and earnings, and a sustained decrease in our stock price. For the interim impairment test as of March 31, 2020, we estimated the fair value of our reporting units containing goodwill by equally weighting results from the income approach and the market approach. We compared those fair values to the carrying values of our four reporting units with carrying values, and determined that our Equipment Rental Component 2 reporting unit had a fair value less than its carrying value, resulting in a $ 55.7 million impairment charge. The impairment was largely due to Equipment Rental Component 2’s forecasted declines in 2020 rental revenues, which was driven by the decrease in equipment rental demand that began in March 2020 as COVID-19’s impact became more widespread across our geographic footprint, combined with our |
Acquisitions and Dispositions
Acquisitions and Dispositions | 12 Months Ended |
Dec. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Acquisitions and Dispositions | (3) Acquisitions and Dispositions 2022 Acquisition One Source Equipment Rentals, Inc. Effective October 1, 2022 , we acquired 100 % of the equity of One Source Equipment Rentals, Inc. (“OSR”), an equipment rental company with ten branches located in the Midwest. The acquisition expands our presence in the surrounding market, including initial locations in Illinois, Indiana, and Kentucky. The aggregate cash consideration paid was approximately $ 136.9 million. The acquisition and related fees and expenses were funded from available cash. The following table summarizes the fair value of the assets acquired and liabilities assumed as of the acquisition date. The opening balance sheet amounts presented below are preliminary and subject to change as we obtain additional information during the acquisition measurement period and finalize customary closing adjustments with the seller. $’s in thousands Cash $ 337 Accounts receivable (1) 11,163 Inventory 521 Prepaid expenses and other assets 374 Rental equipment 102,436 Property and equipment 4,216 Operating lease right-of-use assets 2,388 Intangible assets (2) 12,300 Total identifiable assets acquired 133,735 Accounts payable ( 4,723 ) Tax payable ( 1,674 ) Operating lease liabilities ( 2,388 ) Deferred income taxes ( 27,653 ) Total liabilities assumed ( 36,438 ) Net identifiable assets acquired 97,297 Goodwill (3) 39,553 Net assets acquired $ 136,850 (1) Includes an indemnification receivable of $ 0.7 million related to an unrecognized tax benefit. (2) The following table reflects the estimated fair values and useful lives of the acquired intangible assets identified based on our purchase accounting assessments: Fair Value Life (years) Customer relationships $ 10,600 10 Noncompetition agreements 1,700 1 $ 12,300 (3) The acquired goodwill has been allocated to the equipment rentals reporting unit. Included in the total goodwill amount of $ 39.6 million is approximately $ 0.8 million of accrued purchase price consideration to be paid to the sellers pursuant to the terms of the purchase agreement among the parties named thereto. The level of goodwill that resulted from the OSR acquisition is primarily reflective of OSR’s going-concern value, the value of assembled workforce, new customer relationships expected to arise from the acquisition and expected synergies from combining operations. Total acquisition costs were $ 0.8 million and included within SG&A expenses on the Consolidated Statement of Operations. Since our acquisition of OSR on October 1, 2022, significant amounts of equipment rental fleet have been moved between H&E locations and the acquired locations, and it is impractical to reasonably estimate the amount of OSR revenues and earnings since the acquisition date. The assets and liabilities were recorded as of October 1, 2022 and the results of operations are included in the Company's consolidated results of operations as of that date. Pro forma financial information (unaudited) We completed the OSR acquisition effective October 1, 2022. Therefore, our reported Consolidated Statements of Operations for the year ended December 31, 2022 do not include OSR for the period from January 1, 2022 through September 30, 2022. The pro forma information for the years ended December 31, 2022 and 2021 in the table below (amounts in thousands) is for informational purposes only and gives effect to the OSR acquisition as if it had been completed on January 1, 2021 (the “pro forma acquisition date”). The pro forma information is not necessarily indicative of our results of operations had the acquisition been completed on the pro forma acquisition date, nor is it necessarily indicative of our future results. The pro forma information does not reflect any cost savings from operating efficiencies or synergies that could result from the acquisition, nor does it reflect additional revenue opportunities following the acquisition. The unaudited pro forma financial information includes adjustments primarily related to the incremental depreciation and amortization expense of the rental equipment and intangible assets acquired, the elimination of interest expense related to historical debt as well as other expenses that are not part of the combined entity and transaction expenses. Year Ended December 31, 2022 2021 Total revenues $ 1,289,605 $ 1,117,088 Net income $ 140,864 $ 41,474 2022 Disposition Komatsu Earthmoving Distributorship On December 15, 202 2, the Company sold our Komatsu earthmoving distribution business to Houston, Texas based Waukesha-Pearce Industries, LLC (“WPI”) for $ 29.2 million, subject to customary closing adjustments. The WPI sale included the rights to the distribution of Komatsu earthmoving equipment in the state of Louisiana and counties located in southwestern Arkansas, a branch location and its associated property, plant and equipment in Kenner, LA, Komatsu new equipment inventory, assets at a leased facility in Bossier City, LA and certain other equipment, parts and supplies with a net book value of approximately $ 14.7 million. We recorded a gain of $ 12.9 million within gain from sales of property and equipment, net on the Consolidated Statement of Operations and a gain of $ 2.5 million within other income. The WPI sale did not qualify for discontinued operations as the divestiture does not meet the definition of a component. 2021 Dispositions Crane Sale On July 19, 2021, the Company entered into a definitive agreement to sell its crane business to a wholly-owned subsidiary of The Manitowoc Company, Inc. for $ 130.0 million in cash, which was subject to adjustment based on actual amounts of net working capital and crane rental fleet net book value delivered at transaction closing. The Company executed the transaction closing on October 1, 2021 , subject to customary closing conditions, including regulatory approval under the Hart-Scott-Rodino Act, resulting in proceeds of $ 135.9 million, which was subject to finalization of adjustments. Closing adjustments of $ 1.9 million were recorded as a loss from discontinued operations on the Consolidated Statement of Income during the second quarter of 2022. This disposition represents the Company’s strategic shift to a pure-play rental business. In accordance with ASC 360, Property, Plant, and Equipment, the Company ceased recording depreciation and amortization for Crane Sale related rental fleet, property, plant and equipment, and right of use lease assets upon qualifying as held for sale. In accordance with ASC 205-20, the Company determined that discontinued operations presentation was met during the third quarter of fiscal year 2021. As part of the divestiture, we entered into a transition services agreement with the buyer to assist them in the transition of certain functions, including, but not limited to, information technology, accounting and human resources for a period of sixty days up to six months . Aside from these customary transition services, there will be no continuing involvement with the crane business after its disposal. The Company reported financial results of the crane business within all of our segments: equipment rentals, used equipment sales, new equipment sales, parts sales and service revenues. Additionally, the crane business was included within the equipment rental component 2, used equipment sales, new equipment sales, parts sales and service revenues goodwill reporting units. As a result of the agreement to sell the Company’s crane business, its results are reported separately as discontinued operations in our Consolidated Statements of Operations for all periods presented. As permitted, the Company elected not to adjust the Consolidated Statements of Cash Flows to exclude cash flows attributable to discontinued operations. Accordingly, we disclosed the depreciation, capital expenditures and significant operating and investing non-cash items related to the Crane Sale below. The following tables (amounts in thousands) present the Crane Sale results as reported in income from discontinued operations within our Consolidated Statements of Operations. Year Ended December 31, 2022 2021 2020 Revenues: Equipment rentals $ — $ 10,321 $ 18,548 Used equipment sales — 11,545 13,383 New equipment sales — 52,286 53,422 Parts sales — 33,268 44,713 Services revenues — 20,855 28,264 Other — 3,755 3,815 Total revenues — 132,030 162,145 Cost of revenues: Rental depreciation — 3,720 8,385 Rental expense — 1,947 2,454 Rental other — 1,000 1,285 — 6,667 12,124 Used equipment sales — 8,713 9,791 New equipment sales — 46,725 47,565 Parts sales — 25,288 34,024 Services revenues — 6,767 9,651 Other — 3,168 3,434 Total cost of revenues — 97,328 116,589 Gross profit — 34,702 45,556 Selling, general and administrative expenses 132 20,937 23,370 Impairment of goodwill — — 6,330 Gain on sales of property and equipment, net — 49 2,556 (Loss) gain on sale of discontinued operations ( 1,917 ) 42,072 — Income (loss) from discontinued operations ( 2,049 ) 55,886 18,412 Other, net — 62 26 Income (loss) before provision (benefit) for income taxes ( 2,049 ) 55,948 18,438 Provision (benefit) for income taxes ( 525 ) 13,972 4,709 Net income (loss) from discontinued operations $ ( 1,524 ) $ 41,976 $ 13,729 Cash flows from discontinued operations was as follows (amounts in thousands): Year Ended December 31, 2022 2021 2020 Operating activities of discontinued operations: Depreciation and amortization of property and equipment $ — $ 1,083 $ 2,264 Depreciation of rental equipment — 3,720 8,385 Loss (gain) on sale of discontinued operations 1,917 ( 42,072 ) — Impairment of goodwill — — 6,330 Gain from sales of property and equipment, net — ( 49 ) ( 2,556 ) Gain from sales of rental equipment, net — ( 2,203 ) ( 3,218 ) Investing activities of discontinued operations: Purchases of rental equipment — ( 2,431 ) ( 8,655 ) Proceeds from sales of property and equipment — 43 4,895 Proceeds from sales of rental equipment — 5,929 8,679 Arkansas Sale On September 17, 2021, the Company sold our Little Rock, Arkansas and Springdale, Arkansas owned-branches to Bramco, Inc. (“Bramco”) for $ 9.0 million (the “Arkansas Sale”). The Arkansas Sale included the land, building, building improvements, office equipment, furniture and fixtures, and shop equipment for the two branches with a net book value of approximately $ 3.7 million. We recorded a gain of $ 5.3 million within sales from property and equipment, net on the Consolidated Statement of Operations. As a condition of closing, we relinquished our territory distribution rights with equipment manufacturers Komatsu, Wirtgen Group and Takeuchi. Our current distribution territory for these two branches includes the entire state of Arkansas, with the exception of five counties in Arkansas (Miller, Lafayette, Columbia, Union and Little River) as these counties are currently served by our Shreveport, Louisiana branch. The Arkansas Sale did not qualify for discontinued operations as the divestiture does not meet the definition of a component. The Company purchased a site in Little Rock, Arkansas to operate a rental-focused branch location in the area. The branch opening coincided with the sale to Bramco. |
Receivables
Receivables | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Receivables | (4) Receivables Receivables consisted of the following at December 31, (amounts in thousands): 2022 2021 Trade receivables $ 216,280 $ 151,835 Unbilled rental revenue 12,872 9,006 Income tax receivables 2,577 541 Other 202 22 231,931 161,404 Less allowance for doubtful accounts ( 6,637 ) ( 4,178 ) Total receivables, net $ 225,294 $ 157,226 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | (5) Inventories Inventories consisted of the following at December 31, (amounts in thousands): 2022 2021 Used equipment $ 12 $ 179 New equipment 94,906 62,473 Parts, supplies and other 12,924 12,647 Total inventories, net $ 107,842 $ 75,299 The above amounts are presented net of reserves for inventory obsolescence at December 31, 2022 and 2021 totaling approximately $ 0.1 million and $ 0.1 million, respectively. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | (6) Property and Equipment Net property and equipment consisted of the following at December 31, (amounts in thousands): 2022 2021 Land $ 6,852 $ 6,533 Transportation equipment 147,171 129,307 Building and leasehold improvements 67,181 63,632 Office and computer equipment 54,099 50,028 Machinery and equipment 17,241 15,662 Construction in progress 19,110 9,032 311,654 274,194 Less accumulated depreciation and amortization ( 177,017 ) ( 161,913 ) Total net property and equipment $ 134,637 $ 112,281 Total depreciation and amortization on property and equipment was $ 28.8 million, $ 26.3 million and $ 27.3 million for the years ended December 31, 2022, 2021 and 2020 , respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | (7) Stock-Based Compensation Stock-based compensation is measured at the grant date, based on the calculated fair value of the award, net of an estimated forfeiture rate, and is recognized as an expense over the requisite employee service period (generally the vesting period of the grant). The estimated forfeiture rate is based on historical experience and revised, if necessary, in subsequent periods for actual forfeitures. Our 2016 Stock-Based Incentive Compensation Plan (the “2016 Plan”) is administered by the Compensation Committee of our Board of Directors, which selects persons eligible to receive awards and determines the number of shares and/or options subject to each award, the terms, conditions, performance measures, if any, and other provisions of the award. Under the 2016 Plan, we may offer deferred shares or restricted shares of our common stock and grant options, including both incentive stock options and nonqualified stock options, to purchase shares of our common stock. Shares available for future stock-based payment awards under our 2016 Plan were 999,376 shares of common stock as of December 31, 2022. Non-vested Stock From time to time, we issue shares of non-vested stock typically with vesting terms of three years. The following table summarizes our non-vested stock activity for the years ended December 31, 2022 and 2021: Number of Weighted Non-vested stock at January 1, 2021 524,876 $ 23.00 Granted 202,687 $ 33.28 Vested ( 186,042 ) $ 26.83 Forfeited ( 61,374 ) $ 25.31 Non-vested stock at December 31, 2021 480,147 $ 25.56 Granted 281,490 $ 36.07 Vested ( 160,868 ) $ 27.46 Forfeited ( 40,313 ) $ 29.43 Non-vested stock at December 31, 2022 560,456 $ 30.02 As of December 31, 2022 , we had unrecognized compensation expense of approximately $ 11.0 million related to non-vested stock award payments that we expect to be recognized over a weighted average period of 2.0 years. Stock compensation expense, which is included in SG&A expenses in the accompanying Consolidated Statements of Operations, for the years ended December 31, 2022, 2021 and 2020 was $ 7.3 million, $ 4.4 million and $ 4.4 million, respectively. Purchases of Company Common Stock Purchases of our common stock are accounted for as treasury stock in the accompanying consolidated balance sheets using the cost method. Repurchased stock is included in authorized shares, but is not included in shares outstanding. |
Accrued Expenses Payable and Ot
Accrued Expenses Payable and Other Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Accrued Expenses Payable and Other Liabilities | (8) Accrued Expenses Payable and Other Liabilities Accrued expenses payable and other liabilities consisted of the following at December 31, (amounts in thousands): 2022 2021 Payroll and related liabilities $ 40,367 $ 33,477 Sales, use and property taxes 10,984 11,757 Accrued interest 2,290 2,279 Accrued insurance 7,641 6,995 Deferred revenue 6,661 5,167 Other 9,199 4,233 Total accrued expenses payable and other liabilities $ 77,142 $ 63,908 |
Senior Unsecured Notes
Senior Unsecured Notes | 12 Months Ended |
Dec. 31, 2022 | |
Senior Unsecured Notes [Member] | |
Debt Instrument [Line Items] | |
Senior Secured Credit Facility | (9) Senior Unsecured Notes On December 14, 2020, we completed an offering of $ 1,250 million aggregate principal amount of 3.875 % senior notes due 2028 (the “New Notes”) and the settlement of a cash tender offer (the “Tender Offer”) with respect to our previously outstanding 5.625 % senior notes due 2025 (the “Old Notes”). The New Notes were sold in a private placement pursuant to a purchase agreement, dated November 30, 2020, by and among the Company, certain subsidiary guarantors and BofA Securities, Inc. There are no registration rights associated with the New Notes or the subsidiary guarantees. The New Notes were issued at par and require semiannual interest payments on June 15 th and December 15 th of each year, commencing on June 15, 2021. No principal payments are due until maturity ( December 15, 2028 ). The New Notes were issued under an indenture, dated as of December 14, 2020, by and among the Company, the subsidiary guarantors named therein, and The Bank of New York Mellon Trust Company, N.A., as trustee (the “Indenture”). The Company may redeem some or all of the New Notes at any time prior to December 15, 2023 by paying a “make-whole” premium, plus accrued and unpaid interest, if any, to the date of redemption. At any time prior to December 15, 2023, the Company may use the net proceeds of certain equity offerings to redeem up to 40 % of the principal amount of the New Notes at a redemption price equal to 103.875 % of their principal amount, plus accrued and unpaid interest, if any, to the redemption date; provided that at least 60 % of the aggregate principal amount of such New Notes originally issued remains outstanding immediately following such redemption and such redemption occurs within 90 days of such equity offering. Subsequent to December 15, 2023, the New Notes may be redeemed pursuant to a declining schedule of redemption prices set forth in the Indenture. Net proceeds, after deducting $ 11.4 million of estimated offering expenses, from the sale of the New Notes totaled approximately $ 1,238.6 million. We used a portion of the net proceeds from the sale of the New Notes to repurchase $ 553.6 million of aggregate principal amount of the Old Notes in early settlement of the Tender Offer, which the Company launched on November 30, 2020. Holders who tendered their Old Notes prior to the early tender deadline of December 14, 2020, received $ 1,043.75 per $ 1,000 principal amount of Old Notes tendered, plus accrued and unpaid interest up to, but not including, the payment date of December 16, 2020. Effective as of December 16, 2020, we (i) provided notice of the redemption of all remaining Old Notes that were not validly tendered in the Tender Offer at the expiration time and (ii) satisfied and discharged the indenture governing the Old Notes in accordance with its terms. On December 30, 2020, we redeemed the remaining $ 396.4 million principal amount outstanding of the Old Notes at a redemption price equal to 104.2188 % of the principal amount thereof, plus accrued and unpaid interest up to, but not including, the date of redemption. In connection with the above transactions, we recorded a one-time loss on the early extinguishment of debt of approximately $ 44.6 million, or approximately $ 31.3 million after-tax, reflecting payment of $ 24.2 million of tender premiums and $ 16.7 million of premiums in accordance with the indenture governing the Old Notes to redeem the Old Notes that remained outstanding following completion of the Tender Offer, combined with the write-off of approximately $ 7.2 million of unaccreted note discount, $ 5.0 million of unamortized note premium and $ 1.5 million of other financing costs related to the Old Notes. Additional transaction costs incurred in connection with the offering of the New Notes totaled approximately $ 11.4 million and are presented as a direct deduction from the face amount of the related liability in our consolidated balance sheets. The New Notes are senior unsecured obligations of the Company and rank equally in right of payment to all of the Company’s existing and future senior indebtedness and rank senior to any of the Company’s subordinated indebtedness. The New Notes are unconditionally guaranteed on a senior unsecured basis by all of the Company’s current and future significant domestic subsidiaries (the “Guarantors”). In addition, the New Notes are effectively subordinated to all of the Company’s and the guarantors’ existing and future secured indebtedness, including the Company’s existing senior secured credit facility, to the extent of the value of the assets securing such indebtedness, and are structurally subordinated to all of the liabilities and preferred stock of any of the Company’s subsidiaries that do not guarantee the New Notes. There are no restrictions on H&E Equipment Services, Inc.’s ability to obtain funds from the guarantor subsidiaries by dividend or loan. If we experience a change of control, we will be required to offer to purchase the New Notes at a repurchase price equal to 101 % of the principal amount, plus accrued and unpaid interest to the date of repurchase. The indenture governing the New Notes contains certain covenants that, among other things, limit our ability and the ability of our restricted subsidiaries to: (i) incur additional debt; (ii) pay dividends or make distributions; (iii) make investments; (iv) repurchase stock; (v) create liens; (vi) enter into transactions with affiliates; (vii) merge or consolidate; and (viii) transfer and sell assets. Each of the covenants is subject to exceptions and qualifications. As of December 31, 2022, we were in compliance with these covenants. The following table reconciles our Senior Unsecured Notes to our Consolidated Balance Sheets (amounts in thousands): Balance at December 31, 2020 $ 1,238,660 Accretion of discount through December 31, 2021 1,172 Additional deferred financing costs through December 31, 2021 ( 135 ) Amortization of deferred financing costs through December 31, 2021 270 Balance at December 31, 2021 $ 1,239,967 Accretion of discount through December 31, 2022 1,172 Amortization of deferred financing costs through December 31, 2022 270 Balance at December 31, 2022 $ 1,241,409 |
Senior Secured Credit Facility
Senior Secured Credit Facility | 12 Months Ended |
Dec. 31, 2022 | |
Secured Debt [Member] | |
Debt Instrument [Line Items] | |
Senior Secured Credit Facility | (10) Senior Secured Credit Facility We and our subsidiaries are parties to a $ 750.0 million Credit Facility with Wells Fargo Capital Finance, LLC as administrative agent, and the lenders named therein (the “Credit Facility”). On December 22, 2017, we amended, extended and restated the Credit Facility by entering into the Fifth Amended and Restated Credit Agreement (the “Amended and Restated Credit Agreement”) by and among the Company, Great Northern Equipment, Inc., H&E Equipment Services (California), LLC, H&E Equipment Services (Mid-Atlantic), LLC, the other credit parties named therein, the lenders named therein, Wells Fargo Capital Finance, LLC, as administrative agent, the other credit parties named therein, the lenders named therein, and the joint lead arrangers, joint book runners, co-syndication agents and documentation agent named therein. The Amended and Restated Credit Agreement, among other things, (i) extended the maturity date of the credit facility to December 22, 2022 , (ii) increased the commitments under the senior secured asset based revolver provided for therein to $ 750 million, (iii) increased the uncommitted incremental revolving capacity to $ 250 million, (iv) provided that the unused line fee margin will be either 0.375 % or 0.25 %, depending on the Average Revolver Usage (as defined in the Amended and Restated Credit Agreement) of the borrowers, (v) lowered the interest rate (a) in the case of base rate revolving loans, to the base rate plus an applicable margin of 0.50 % to 1.00 % depending on the Average Availability (as defined in the Amended and Restated Credit Agreement) and (b) in the case of LIBOR revolving loans, to LIBOR (as defined in the Amended and Restated Credit Agreement) plus an applicable margin of 1.50 % to 2.00 %, depending on the Average Availability, (vi) lowered the margin applicable to the letter of credit fee to between 1.50 % and 2.00 %, depending on the Average Availability, and (vii) permitted, subject to certain conditions, an unlimited amount of Permitted Acquisitions, Restricted Payments and prepayments of Indebtedness (in each case, as defined in the Amended and Restated Credit Agreement). On February 1, 2019, we further amended and extended the Amended and Restated Credit Agreement with the First Amendment to the Fifth Amended and Restated Credit Agreement (the “First Amendment”) by and among the Company, Great Northern Equipment, Inc., H&E Equipment Services (California), LLC, H&E Equipment Services (Mid-Atlantic), LLC, the other credit parties named therein, the lenders named therein, Wells Fargo Capital Finance, LLC, as administrative agent, the other credit parties named therein, the lenders named therein, and the joint lead arrangers, joint book runners, co-syndication agents and documentation agent named therein. The First Amendment, among other things, (i) extended the maturity date of the credit facility from December 22, 2022 to January 31, 2024 , and (ii) lowered the interest rate in the case of LIBOR revolving loans, to LIBOR plus an applicable margin of 1.25 % to 1.75 %, depending on the Average Availability and (iii) lowered the interest rate in the case of Base Rate loans, to the Base Rate (as defined in the Amended and Restated Credit Agreement) plus an applicable margin of 0.25 % to 0.75 %, depending on the Average Availability. As amended, the Amended and Restated Credit Agreement continues to provide for, among other things, a $ 30.0 million letter of credit sub-facility, and a guaranty by certain of the Company’s subsidiaries of the obligations under the Credit Facility. In addition, the Credit Facility remains secured by substantially all of the assets of the Company and certain of its subsidiaries. On September 14, 2021, the Company further amended and extended the Amended and Restated Credit Agreement with the Second Amendment to the Fifth Amended and Restated Credit Agreement (the “Second Amendment”) by and among the Company, Great Northern Equipment, Inc., H&E Equipment Services (California), LLC, H&E Equipment Services (Mid-Atlantic), LLC, the other credit parties named therein, the lenders named therein, Wells Fargo Bank National Association, as administrative agent, and the joint lead arrangers, joint book runners, co-syndication agents and documentation agent named therein. The Second Amendment (i) amended the permitted dispositions of the credit facility, specifically the Crane Sale, and (ii) included benchmark language for a transition away from LIBOR. As of December 31, 2022, we were in compliance with our financial covenants under the Amended and Restated Credit Agreement. At December 31, 2022 , we had no borrowings outstanding under the Credit Facility and could borrow up to approximately $ 739.4 million , net of a $ 10.6 million outstanding letter of credit, and remain in compliance with the debt covenants under the Credit Facility. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | (11) Leases We use the rate implicit in the lease to discount lease payments to present value, when available, however, most of our leases do not provide a readily determinable implicit rate. Therefore, we estimate our IBR to discount the lease payments based on information available at lease commencement. Our IBR represents a fully collateralized rate for a fully amortizing loan with the same term as the lease. At December 31, 2022 , the weighted average remaining lease term for operating leases was approximately 8.0 years and for finance leases was approximately 9.5 years. The weighted average discount rate for operating and finance leases was approximately 6.3 % and 5.0 %, respectively, at December 31, 2022. At December 31, 2021 , the weighted average remaining lease term for operating leases was approximately 8.7 years. The weighted average discount rate for operating leases was approximately 6.2 % at December 31, 2021. The table below presents certain information related to lease costs, under Topic 842, for our operating and finance leases for the years ended December 31, 2022 and 2021 (in thousands). Year Ended December 31, Classification 2022 2021 Operating lease cost SG&A expenses $ 27,153 $ 24,347 Finance lease costs Amortization of leased assets SG&A expenses 107 122 Interest on lease liabilities Interest expense 52 9 Variable lease cost SG&A expenses 1,834 1,046 Sublease income Other income ( 2,074 ) ( 1,379 ) Total lease cost $ 27,072 $ 24,145 The table below presents supplemental cash flow information related to leases for the years ended December 31, 2022 and 2021 (in thousands). Year Ended December 31, 2022 2021 Cash paid for amounts included in the measurements of lease liabilities: Operating cash flows for operating leases $ 26,407 $ 23,527 Operating cash flows for finance leases 52 9 Finance cash flows for finance leases 1,141 194 The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating and finance lease liabilities recorded on our consolidated balance sheet as of December 31, 2022 (in thousands). Operating Leases Finance Leases 2023 $ 21,999 $ 184 2024 29,258 190 2025 28,554 197 2026 27,560 204 2027 26,367 211 Thereafter 83,953 1,030 Total minimum lease payments 217,691 2,016 Less: amount of lease payments representing interest ( 48,622 ) ( 422 ) Present value of future minimum lease payments $ 169,069 $ 1,594 The future minimum lease payments of operating leases executed but not commenced as of December 31, 2022 are estimated to be $ 0.9 million, $ 2.1 million, $ 2.1 million, $ 2.2 million and $ 2.2 million for the years ending December 31, 2023 , 2024, 2025, 2026 and 2027, respectively, and $ 15.7 million thereafter. It is expected that the majority of these leases will commence during 2023 . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (12) Income Taxes On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was signed into law and includes certain income tax provisions relevant to businesses; the CARES Act did not have a material impact on our provision for income taxes. However, certain provisions of the CARES Act did have a favorable cash impact. Specifically, with respect to the suspension of the 80 % of taxable income limitation on net operating loss carryforwards that allows corporate entities to fully utilize net operating loss carryforwards to offset taxable income, we offset 2020 taxable income with net operating loss carryforwards, realizing an estimated total reduction of approximately $ 2.6 million of cash taxes paid for the 2020 tax year. Also, taxpayers with alternative minimum tax credits may claim a refund for the entire amount of such credit, which resulted in a $ 1.5 million federal tax refund received in June 2020. Finally, the non-income tax-based provision allowing an employer to pay its share of Social Security payroll taxes that would otherwise be due from the date of enactment through December 31, 2021 over the following two years resulted in the deferral of $ 6.8 million of those payroll taxes. We remitted $ 4.6 million in 2021 and $ 2.2 million in 2022. Our income tax provision (benefit) for the years ended December 31, 2022, 2021 and 2020, consists of the following (amounts in thousands): Current Deferred Total Year Ended December 31, 2022 U.S. Federal $ — $ 37,680 $ 37,680 State 4,306 5,050 9,356 $ 4,306 $ 42,730 $ 47,036 Year Ended December 31, 2021 U.S. Federal $ — $ 16,513 $ 16,513 State 2,574 2,073 4,647 $ 2,574 $ 18,586 $ 21,160 Year ended December 31, 2020: U.S. Federal $ ( 761 ) $ ( 9,362 ) $ ( 10,123 ) State 471 ( 3,776 ) ( 3,305 ) $ ( 290 ) $ ( 13,138 ) $ ( 13,428 ) Significant components of our deferred income tax assets and liabilities as of December 31 are as follows (amounts in thousands): 2022 2021 Deferred tax assets: Accounts receivable $ 1,497 $ 883 Inventories 13 18 Net operating losses 74,931 68,942 Tax Credits 7,040 8,393 Sec 263A costs 764 534 Accrued liabilities 3,431 3,800 Deferred compensation 2,794 1,522 Interest Expense 12,238 — Stock-based compensation 242 208 Goodwill and intangible assets 7,842 9,669 Other assets 86 74 110,878 94,043 Valuation allowance ( 5,930 ) ( 7,598 ) 104,948 86,445 Deferred tax liabilities: Property and equipment ( 370,404 ) ( 284,997 ) Investments ( 1,109 ) ( 1,094 ) Goodwill and intangible assets ( 4,597 ) ( 1,585 ) ( 376,110 ) ( 287,676 ) Net deferred tax liabilities $ ( 271,162 ) $ ( 201,231 ) The reconciliation between income taxes computed using the statutory federal income tax rate of 21 % to the actual income tax expense (benefit) is below for the years ended December 31 (amounts in thousands): 2022 2021 2020 Computed tax at statutory rates $ 37,953 $ 17,162 $ ( 12,563 ) Permanent items – other 1,683 406 1,241 Permanent items – excess of tax deductible goodwill — — ( 1,473 ) Permanent items – impairment of goodwill — — 2,008 State income tax, net of federal tax effect 9,068 2,390 ( 9,037 ) Change in valuation allowance ( 1,668 ) 1,202 6,396 $ 47,036 $ 21,160 $ ( 13,428 ) At December 31, 2022 , we had available federal net operating loss carry forwards of approximately $ 330.1 million, which do not expire. We also had $ 0.4 million in general business credit carry forwards at December 31, 2022 that expire in varying amounts from 2036 to 2040 , and state income tax credits of $ 8.3 million that expire in varying amounts beginning in 2023 . Management has concluded that it is more likely than not that the federal deferred tax assets are fully realizable through future reversals of existing taxable temporary differences and future taxable income. Therefore, a valuation allowance is not required to reduce those deferred tax assets as of December 31, 2022. However, as of December 31, 2022 , we have a valuation allowance of $ 5.9 million for certain state tax credits that are expected to expire prior to utilization. A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows (in thousands): 2022 2021 Gross unrecognized tax benefits at January 1 $ — $ — Increases in tax positions taken in prior years — — Decreases in tax positions taken in prior years — — Increases in tax positions taken in current years 1,425 — Decreases in tax positions taken in current years — — Settlements with taxing authorities — — Lapse in statute of limitations — — Gross unrecognized tax benefits at December 31 $ 1,425 $ — The gross amount of unrecognized tax benefits as of December 31, 2022 , if recognized, would affect the effective income tax rate. The uncertain tax positions recorded in the current year, including $ 0.1 million of interest and penalties were acquired from OSR. To the extent we incur interest income, interest expense, or penalties related to unrecognized income tax benefits, it will be recorded within net other income (expense) on the Consolidated Statements of Operations. We do not expect our unrecognized tax benefits to change materially in the next twelve months. Our U.S. federal tax returns for 2019 and subsequent years remain subject to examination by tax authorities. We are also subject to examination in various state jurisdictions for 2018 and subsequent years. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (13) Commitments and Contingencies Legal Matters From time to time, we are involved in various claims and legal actions arising in the ordinary course of our business, including claims for which we retain portions of the losses through the application of deductibles and self-insured retentions, or self-insurance. Losses that exceed our deductibles and self-insured retentions are insured through various commercial lines of insurance policies. In the opinion of management, after consultation with legal counsel, the ultimate disposition of these various matters will not have a material adverse effect on the Company’s consolidated financial position, results of operations or liquidity. Letters of Credit The Company had outstanding letters of credit issued under its Credit Facility totaling $ 10.6 million as of December 31, 2022 and $ 8.7 million as of December 31, 2021 . The letters of credit expire in May 2023 and are expected to be renewed for similar one-year terms. |
Employee Retirement Benefit Pla
Employee Retirement Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Employee Retirement Benefit Plans | (14) Employee Retirement Benefit Plans We offer substantially all of our non-union employees’ participation in a qualified 401(k)/profit-sharing plan in which we match employee contributions up to predetermined limits for qualified employees as defined by the plan. For the year ended December 31, 2022 and for both continuing and discontinued operations for the years ended December 31, 2021 and 2020 , we contributed to the plan, net of employee forfeitures, $ 4.6 million, $ 4.4 million and $ 3.7 million, respectively. We contribute to the Pension Trust Fund Operating Engineers Annuity Plan (EIN: 94-6090764, Plan No. 002), a multi-employer pension plan (“the Plan”), under the terms of a Collective Bargaining Agreement (“CBA”) that expires on October 31, 2025 , and covers our union-represented employees and requires contribution amounts as set forth within the CBA. The Company contributed approximately $ 0.4 million in each of the years ended December 31, 2022, 2021 and 2020 and the Company has paid no surcharges in any period presented. These contributions represent less than five percent of the Plan’s total contributions in 2021. As of the date that our 2022 consolidated financial statements were issued, the Plan’s Form 5500 was not available for the Plan year ended December 31, 2022. The risks of participating in a multi-employer pension plan is different from the risks associated with single-employer plans in the following respects. a) Assets contributed to the multi-employer plan by one employer may be used to provide benefits to employees of other participating employers. b) If a participating employer stops contributing to the Plan, the unfunded obligations of the plan may be borne by the remaining participating employers. c) If we choose to stop participating in the Plan, we may be required to pay the Plan an amount based on the unfunded status of the plan, referred to as withdrawal liability. The Plan has a yellow zone status as of December 31, 2021 , the most recent date for which a status determination has been made. The Pension Protection Act of 2006 ranks the funded status of multi-employer pension plans depending upon a plan’s current and projected funding. A plan is in the Red Zone (Critical) if it has a current funded percentage less than 65 percent. A plan is in the Yellow Zone (Endangered) if it has a current funded percentage of less than 80 percent or projects a credit balance deficit within seven years. A plan is in the Green Zone (Healthy) if it has a current funded percentage greater than 80 percent and does not have a projected credit balance deficit within seven years. The zone status is based on the Plan’s year-end and is based on information that we received from the Plan and is certified by the Plan’s actuary. A funding improvement plan has been implemented by the Plan’s trustees. The Company currently has no intention of withdrawing from the Plan. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (15) Related Party Transactions Mr. John M. Engquist, who has served as the Company’s Executive Chairman of the Board for the years ended December 31, 2022, 2021 and 2020 , has a 48.0 % ownership interest in Perkins-McKenzie Insurance Agency, Inc. (“Perkins-McKenzie”), an insurance brokerage firm. Perkins-McKenzie brokers a substantial portion of our commercial liability insurance. As the broker, Perkins-McKenzie receives from our insurance provider as a commission a portion of the premiums we pay to the insurance provider. Commissions paid to Perkins-McKenzie on our behalf as insurance broker totaled approximately $ 1.1 million, $ 0.9 million and $ 1.0 million for the years ended December 31, 2022, 2021 and 2020, respectively. We purchase products and services from, and sell products and services to, B-C Equipment Sales, Inc., in which Mr. Engquist has a 50 % ownership interest. In each of the years ended December 31, 2022, 2021 and 2020 , for both continuing and discontinued operations, our purchases totaled less than $ 10 thousand, $ 0.1 million and $ 0.1 million, respectively, and our sales to B-C Equipment Sales, Inc. totaled approximately $ 0.1 million, $ 0.2 million and $ 0.2 million, respectively. |
Summarized Quarterly Financial
Summarized Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summarized Quarterly Financial Data (Unaudited) | (16) Summarized Quarterly Financial Data (Unaudited) The following is a summary of our unaudited quarterly financial results of operations for the years ended December 31, 2022 and 2021 (amounts in thousands, except per share amounts): First Second Third Fourth 2022: Total revenues from continuing operations $ 272,450 $ 294,671 $ 324,280 $ 353,117 Income from continuing operations 34,688 50,666 63,994 78,806 Income from continuing operations before provision for income taxes 22,121 38,059 51,329 69,221 Net income from continuing operations 16,296 27,870 38,376 51,152 Basic net income from continuing operations per common share (1) $ 0.45 $ 0.77 $ 1.05 $ 1.42 Diluted net income from continuing operations per common share (1) $ 0.45 $ 0.76 $ 1.05 $ 1.41 First Second Third Fourth 2021: Total revenues from continuing operations $ 240,432 $ 265,677 $ 275,436 $ 281,252 Income from continuing operations 15,321 29,734 45,662 41,603 Income from continuing operations before provision for income taxes 2,539 17,059 32,847 29,279 Net income from continuing operations 1,855 12,251 24,728 21,730 Basic net income from continuing operations per common share (1) $ 0.05 $ 0.34 $ 0.68 $ 0.60 Diluted net income from continuing operations per common share (1) $ 0.05 $ 0.34 $ 0.68 $ 0.59 (1) Because of the method used in calculating per share data, the summation of quarterly per share data may not necessarily total to the per share data computed for the entire year due to rounding. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | (17) Segment Information We have identified five reportable segments: equipment rentals, used equipment sales, new equipment sales, parts sales and service revenues. These segments are based upon revenue streams and how management of the Company allocates resources and assesses performance. Our non-segmented revenues and costs relate primarily to ancillary charges associated with equipment maintenance and repair services, and are not generally allocated to the other reportable segments. There were no sales between segments for any of the periods presented. Selling, general, and administrative expenses as well as all other income and expense items below gross profit are not generally allocated to our reportable segments. We do not compile discrete financial information by our segments other than the information presented below. The following table presents information about our reportable segments (amounts in thousands): Years Ended December 31, 2022 2021 2020 Segment Revenues: Equipment rentals $ 956,042 $ 729,700 $ 644,445 Used equipment sales 90,885 135,245 139,769 New equipment sales 92,526 92,677 113,708 Parts sales 64,646 65,623 65,881 Services revenues 34,226 33,034 35,989 Total segmented revenues 1,238,325 1,056,279 999,792 Non-Segmented revenues 6,193 6,518 7,183 Total revenues $ 1,244,518 $ 1,062,797 $ 1,006,975 Segment Gross Profit: Equipment rentals $ 460,243 $ 315,629 $ 257,508 Used equipment sales 44,316 48,922 44,970 New equipment sales 13,096 11,855 12,207 Parts sales 18,035 17,277 17,750 Services revenues 21,998 21,797 24,464 Total gross profit from segmented revenues 557,688 415,480 356,899 Non-segmented gross profit (loss) ( 2,525 ) ( 117 ) 164 Total gross profit $ 555,163 $ 415,363 $ 357,063 December 31, 2022 2021 Segment identified assets: Equipment rentals $ 1,418,951 $ 1,116,456 Equipment sales 94,918 62,652 Parts and service 12,924 12,647 Total segment identified assets 1,526,793 1,191,755 Non-Segmented identified assets 764,906 888,692 Total assets $ 2,291,699 $ 2,080,447 The Company operates primarily in the United States and our sales to international customers for the three years ended December 31, 2022 were 0.3 % of total revenues for the periods presented. No one customer accounted for more than 10% of our revenues on an overall or segmented basis for any of the periods presented. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | (18) Subsequent Events On February 2, 2023, we amended, extended and restated the Credit Facility by entering into the Sixth Amended and Restated Credit Agreement by and among the Company, Great Northern Equipment, Inc., H&E Equipment Services (California), LLC, H&E Equipment Services (Mid-Atlantic), LLC, H&E Equipment Services (Midwest), LLC, the other credit parties named therein, the lenders named therein, Wells Fargo Bank, National Association, as administrative agent, the other credit parties named therein, the lenders named therein, and the joint lead arrangers, joint book runners, co-syndication agents and documentation agent named therein. The Sixth Amended and Restated Credit Agreement, among other things, (i) extended the maturity date of the credit facility to February 2, 2028 and (ii) amended the interest rate to SOFR plus a credit spread adjustment plus an applicable margin of 1.25 % to 1.75 %, depending on the Average Availability. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | SCHEDULE II: VALUATION A ND QUALIFYING ACCOUNTS FOR THE YEARS ENDED DECEMBER 31, 2022, 2021 AND 2020 (Amounts in thousands) Description Balance at Additions Deductions Balance at Year Ended December 31, 2022 Allowance for doubtful accounts receivable $ 4,178 $ 3,264 $ ( 805 ) $ 6,637 Allowance for inventory obsolescence 73 32 ( 51 ) 54 $ 4,251 $ 3,296 $ ( 856 ) $ 6,691 Year Ended December 31, 2021 Allowance for doubtful accounts receivable (a) $ 4,741 $ 1,892 $ ( 2,455 ) $ 4,178 Allowance for inventory obsolescence (b) 350 54 ( 331 ) 73 $ 5,091 $ 1,946 $ ( 2,786 ) $ 4,251 Year Ended December 31, 2020 Allowance for doubtful accounts receivable (a) $ 5,236 $ 4,018 $ ( 4,513 ) $ 4,741 Allowance for inventory obsolescence (b) 331 127 ( 108 ) 350 $ 5,567 $ 4,145 $ ( 4,621 ) $ 5,091 a) Allowance for doubtful accounts receivables includes $ 252 related to discontinued operations for the balance at the beginning of the year ended December 31, 2021 and the balance at the end of the year ended December 31, 2020. b) Allowance for inventory obsolescence includes $ 120 related to discontinued operations for the balance at the beginning of the year ended December 31, 2021 and the balance at the end of the year ended December 31, 2020. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation Our consolidated financial statements include the financial position and results of operations of H&E Equipment Services, Inc. and its wholly-owned subsidiaries H&E Finance Corp., GNE Investments, Inc., Great Northern Equipment, Inc., H&E California Holding, Inc., H&E Equipment Services (California), LLC, H&E Equipment Services (Midwest), Inc. and H&E Equipment Services (Mid-Atlantic), Inc., collectively referred to herein as “we”, “us”, “our” or the “Company.” On October 1, 2021, the Company sold its crane business (the “Crane Sale”). The results of operations of the Crane Sale are reported in discontinued operations in the Consolidated Statements of Operations for all periods presented and the related assets and liabilities associated with discontinued operations are classified as held for sale in the Consolidated Balance Sheet at December 31, 2020. The Consolidated Statements of Cash Flows includes cash flows related to the discontinued operations and accordingly, cash flow amounts for discontinued operations are disclosed in Note 3 “Acquisitions and Dispositions”. All results and information in the consolidated financial statements are presented as continuing operations and exclude the Crane Sale unless otherwise noted specifically as discontinued operations. For additional information, refer to Note 3. All significant intercompany accounts and transactions have been eliminated in these consolidated financial statements. Business combinations are included in the consolidated financial statements from their respective dates of acquisition. The nature of our business is such that short-term obligations are typically met by cash flows generated from long-term assets. Consequently, and consistent with industry practice, the accompanying consolidated balance sheets are presented on an unclassified basis. |
Use of Estimates | Use of Estimates We prepare our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America, which requires management to use its judgment to make estimates and assumptions that affect the reported amounts of assets and liabilities and related disclosures at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reported period. These assumptions and estimates could have a material effect on our consolidated financial statements. Actual results may differ materially from those estimates. We review our estimates on an ongoing basis based on information currently available, and changes in facts and circumstances may cause us to revise these estimates. |
Reclassifications | Reclassifications Certain reclassifications have been made to prior period amounts in the Consolidated Statements of Operations to conform to the current period presentation. These reclassifications did not have a material impact on previously reported amounts. |
Revenue Recognition | Revenue Recognition We recognize revenue in accordance with two different Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) standards: 1) Topic 606 and 2) Topic 842. Under Topic 606, Revenue from Contracts with Customers, revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Revenue is measured based on the consideration specified in the contract with the customer, and excludes any sales incentives and amounts collected on behalf of third parties. A performance obligation is a promise in a contract to transfer a distinct good or service to a customer. Our contracts with customers generally do not include multiple performance obligations. We recognize revenue when we satisfy a performance obligation by transferring control over a product or service to a customer. The amount of revenue recognized reflects the consideration we expect to be entitled to in exchange for such products or services. Under Topic 842, Leases, we account for equipment rental contracts as operating leases. We recognize revenue from equipment rentals in the period earned, regardless of the timing of billing to customers. A rental contract includes rates for daily, weekly or monthly use, and rental revenues are earned on a daily basis as rental contracts remain outstanding. Because the rental contracts can extend across multiple reporting periods, we record unbilled rental revenues and deferred rental revenues at the end of reporting periods so rental revenues earned is appropriately stated for the periods presented. The tables below summarize our revenues as presented in our Consolidated Statements of Operations for the years ended December 31, 2022, 2021 and 2020 by revenue type and by the applicable accounting standard (amounts in thousands). Year Ended December 31, 2022 Topic 842 Topic 606 Total Revenues: Rental Revenues: Owned equipment rentals $ 814,423 $ 406 $ 814,829 Re-rent revenue 32,726 — 32,726 Ancillary and other rental revenues: Delivery and pick-up — 56,303 56,303 Other 52,184 — 52,184 Total ancillary rental revenues 52,184 56,303 108,487 Total equipment rental revenues 899,333 56,709 956,042 Used equipment sales — 90,885 90,885 New equipment sales — 92,526 92,526 Parts sales — 64,646 64,646 Services revenues — 34,226 34,226 Other — 6,193 6,193 Total revenues $ 899,333 $ 345,185 $ 1,244,518 Year Ended December 31, 2021 Topic 842 Topic 606 Total Revenues: Rental Revenues: Owned equipment rentals $ 617,831 $ 354 $ 618,185 Re-rent revenue 34,819 — 34,819 Ancillary and other rental revenues: Delivery and pick-up — 40,523 40,523 Other 36,173 — 36,173 Total ancillary rental revenues 36,173 40,523 76,696 Total equipment rental revenues 688,823 40,877 729,700 Used equipment sales — 135,245 135,245 New equipment sales — 92,677 92,677 Parts sales — 65,623 65,623 Services revenues — 33,034 33,034 Other — 6,518 6,518 Total revenues $ 688,823 $ 373,974 $ 1,062,797 Year Ended December 31, 2020 Topic 842 Topic 606 Total Revenues: Rental Revenues: Owned equipment rentals $ 557,166 $ 471 $ 557,637 Re-rent revenue 23,507 — 23,507 Ancillary and other rental revenues: Delivery and pick-up — 35,793 35,793 Other 27,508 — 27,508 Total ancillary rental revenues 27,508 35,793 63,301 Total equipment rental revenues 608,181 36,264 644,445 Used equipment sales — 139,769 139,769 New equipment sales — 113,708 113,708 Parts sales — 65,881 65,881 Services revenues — 35,989 35,989 Other — 7,183 7,183 Total revenues $ 608,181 $ 398,794 $ 1,006,975 Revenues by reporting segment are presented in Note 17, using the revenue captions reflected in our Consolidated Statements of Operations. We believe that the disaggregation of our revenues from contracts to customers as reflected above, coupled with further discussion below and the reporting segment in Note 17, depicts how the nature, amount, timing and uncertainty of our revenues and cash flows are affected by economic factors. Nature of goods and services Lease revenues Topic 842 Owned equipment rentals : Owned equipment rentals represent revenues from renting equipment. We account for these rental contracts as operating leases. We recognize revenue from equipment rentals in the period earned, regardless of the timing of billing to customers. A rental contract includes rates for daily, weekly or monthly use, and rental revenues are earned on a daily basis as rental contracts remain outstanding. Our equipment is generally rented for short periods of time (less than a year). Because the rental contracts can extend across multiple reporting periods, we record unbilled rental revenues and deferred rental revenues at the end of reporting periods so rental revenues earned is appropriately stated for the periods presented. The lease terms are included in our contracts, and the determination of whether our contracts contain leases generally does not require significant assumptions or judgments. In some cases, a rental contract may contain a rental purchase option, whereby the customer has an option to purchase the rented equipment at the end of the term for a specified price. Revenues related to the rental contract will be accounted for as an operating lease as the option to purchase is not reasonably certain to be exercised. Lessees do not provide residual value guarantees on rented equipment. Re-rent revenue : Re-rent revenue reflects revenues from equipment that we rent from vendors and then rent to our customers. We account for such rentals as subleases. The accounting for re-rent revenue is the same as the accounting for owned equipment rentals described above. Other equipment rental revenue : Other equipment rental revenue is primarily comprised of (i) revenue from customers who purchase insurance to protect against potential damages or loss to the equipment they rent, (ii) environmental charges associated with the rental of equipment, and (iii) fuel recovery fees charged to customers. Fuel consumption charges are recognized upon return of the rental equipment when fuel consumption by the customer, if any, can be measured. Income from environmental fees and damage waiver insurance policies are recognized when earned over the period the equipment is rented. Revenues from contracts with customers (Topic 606) Substantially all of our revenues under Topic 606 are recognized at a point-in-time rather than over time. Owned equipment rentals: An insignificant portion of our total equipment rental revenues are recognized pursuant to Topic 606 rather than pursuant to Topic 842. These revenues represent services performed by us in connection with the rental of equipment and are comprised of customer training fees on rented equipment and setup and configuration services on rental equipment. Revenues for these services are recognized upon completion of such services. See discussion above regarding rental revenues recognized pursuant to Topic 842. Delivery and pick-up : Delivery and pick-up revenue associated with renting equipment is recognized when the service is performed. Used equipment sales: Revenues from the sales of used equipment are recognized at the time of delivery to, or pick-up by, the customer, which is when the customer obtains control of the promised good. New equipment sales: Revenues from the sales of new equipment are recognized at the time of delivery to, or pick-up by, the customer, which is when the customer obtains control of the promised good. Parts sales: Revenues from the sales of equipment parts are recognized at the time of pick-up by the customer for parts counter sales transactions. For parts that are shipped to a customer, we made an accounting policy election permitted by Topic 606 to treat such shipping activities as fulfillment costs, which results in the fees for shipping activities being included in the parts sales transaction price. Services revenues: We derive our services primarily from maintenance and repair services to customers for equipment that we rent or sell and from customers owned equipment. We recognize services revenues at the time such services are completed, which is when the customer obtains control of the promised service. Other revenues : Other non-segmented revenues relate to equipment support activities that we provide to customers in connection with used and new equipment sales and parts and services revenues and are not generally allocated to reportable segments. Receivables and contract assets and liabilities We manage credit risk associated with our accounts receivables at the customer level. Because the same customers typically generate the revenues that are accounted for under both Topic 606 and Topic 842, the discussions below on credit risk and our allowances for doubtful accounts address our total revenues from Topic 606 and Topic 842. We believe concentration of credit risk with respect to our receivables is limited because our customer base is comprised of a large number of geographically diverse customers. Our largest customer accounted for less than two percent of total revenues for the years ended December 31, 2022, 2021 and 2020 . No single customer accounted for more than 10% of our revenues on an overall or segment basis for any of the three years ended December 31, 2022. We manage credit risk through credit approvals, credit limits and other monitoring procedures. Pursuant to Topic 842 and Topic 326 for rental and non-rental receivables, respectively, we maintain an allowance for doubtful accounts that reflects our estimate of our expected credit losses. Our allowance is estimated using a loss rate model based on delinquency. The estimated loss rate is based on our historical experience with specific customers, our understanding of our current economic circumstances, reasonable and supportable forecasts, and our own judgment as to the likelihood of ultimate payment based upon available data. Our largest exposure to doubtful accounts is our rental operations, which as discussed above is accounted for under Topic 842 and as of December 31, 2022 represents 77 % of our total revenues and an approximate corresponding percentage of our receivables, net and associated allowance for doubtful accounts. We perform credit evaluations of customers and establish credit limits based on reviews of our customers’ current credit information and payment histories. We believe our credit risk is somewhat mitigated by our geographically diverse customer base and our credit evaluation procedures. The actual rate of future credit losses, however, may not be similar to past experience. Our estimate of doubtful accounts could change based on changing circumstances, including changes in the economy or in the particular circumstances of individual customers. Accordingly, we may be required to increase or decrease our allowance for doubtful accounts. Bad debt expense as a percentage of total revenues for the years ended December 31, 2022, 2021 and 2020 was approximately 0.3 %, 0.2 % and 0.4 %, respectively. We do not have material contract assets, impairment losses associated therewith, or material contract liabilities associated with contracts with customers. Our contracts with customers do not generally result in material amounts billed to customers in excess of recognizable revenue. We did not recognize material revenues during the years ended December 31, 2022, 2021 or 2020 that was included in the contract liability balance as of the beginning of such periods. Performance obligations Most of our Topic 606 revenue is recognized at a point-in-time, rather than over time. Accordingly, in any particular period, we do not generally recognize a significant amount of revenue from performance obligations satisfied (or partially satisfied) in previous periods, and the amount of such revenue recognized during the years ended December 31, 2022, 2021 and 2020 was not material. Payment terms Our Topic 606 revenues do not include material amounts of variable consideration. Our payment terms are typically net 30 days, but can vary by the type and location of our customer and the products or services offered. The time between invoicing and when payment is due is not significant. Our contracts do not generally include a significant financing component. Our contracts with customers do not generally result in significant obligations associated with returns, refunds or warranties. See above for a discussion of how we manage credit risk. Sales tax amounts collected from customers are recorded on a net basis. Contract costs We do not recognize any assets associated with the incremental costs of obtaining a contract with a customer (for example, a sales commission) that we expect to recover. Most of our revenue is recognized at a point-in-time or over a period of one year or less, and we use the practical expedient that allows us to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that we otherwise would have recognized is one year or less. Contract estimates and judgments Our revenues accounted for under Topic 606 generally do not require significant estimates or judgments as the transaction price is generally fixed and stated on our contracts. Our contracts generally do not include multiple performance obligations, and accordingly do not generally require estimates of the standalone selling price for each performance obligation. Also, our revenues do not include material amounts of variable consideration. Substantially all of our revenues are recognized at a point-in-time and the timing of the satisfaction of the applicable performance obligations is readily determinable. As noted above, our Topic 606 revenues are generally recognized at the time of delivery to, or pick-up by, the customer. |
Discontinued Operations | Discontinued Operations In determining whether a group of assets which has been disposed of (or is to be disposed of) should be presented as discontinued operations, the Company analyzes whether the group of assets being disposed of represents a component of the entity. A component typically has historic operations and cash flows that are clearly distinguishable for both operations and financial reporting purposes. In addition, the Company considers whether the disposal represents a strategic shift that has or will have a major effect on the Company’s operations and financial results. This strategic shift could include a disposal of a major geographical area, a major line of business, a major equity method investment, or other major parts of an entity. The Company reports financial results for discontinued operations separately from continuing operations to distinguish the financial impact of disposal transactions from ongoing operations. The assets and liabilities of a discontinued operation held for sale, other than goodwill, are measured at the lower of its carrying amount or fair value less cost to sell. When a portion of a reporting unit that constitutes a business is to be disposed of, the goodwill associated with that business is included in the carrying amount of the business based on the relative fair values of the business to be disposed of and the portion of the reporting unit that will be retained. See Note 3 for additional information. |
Held for Sale | Held for Sale The Company considers assets to be held for sale when management, with appropriate authority, approves and commits to a formal plan to sell the assets at a price reasonable in relation to their estimated fair value, the assets are available for immediate sale in their present condition, the sale of the assets is probable and expected to be completed in one year and it is unlikely that significant changes will be made to the plan. Upon designation as held for sale, the Company records the assets at the lower of their carrying value or their estimated fair value, reduced for the cost to dispose the assets, and ceases to record depreciation and amortization expenses on the assets. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand and highly liquid investments with an original maturity of three months or less. |
Inventories | Inventories We measure inventory at the lower of cost or net realizable value; where net realizable value is considered to be estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. For used and new equipment inventories, cost is determined by specific-identification. For inventories of parts and supplies, cost is determined by using average cost. |
Rental Equipment | Rental Equipment The rental equipment we purchase is stated at cost and is depreciated over the estimated useful life of the equipment using the straight-line method and is included in rental depreciation within our Consolidated Statements of Operations. Estimated useful lives vary based upon type of equipment. Generally, we depreciate aerial work platforms over a ten year estimated useful life, earthmoving equipment over a five year estimated useful life with a 25 % salvage value, and material handling equipment over a seven year estimated useful life. Attachments and other smaller type equipment are depreciated generally over a three year estimated useful life. We periodically evaluate the appropriateness of remaining depreciable lives and any salvage value assigned to rental equipment. Depreciation expense on rental equipment is reflected in rental depreciation in cost of revenues on the Consolidated Statements of Operations. Ordinary repair and maintenance costs and property taxes are reflected in rental expenses in cost of revenues on the Consolidated Statements of Operations. However, expenditures for additions or improvements that significantly extend the useful life of the asset are capitalized in the period incurred. When rental equipment is sold or disposed of, the related cost and accumulated depreciation are removed from the respective accounts and any gains or losses are included in gross profit in the statements of operations. We receive individual offers for fleet on a continual basis, at which time we perform an analysis on whether or not to accept the offer. The rental equipment is not transferred to inventory under the held for sale model as the equipment is used to generate revenues until the equipment is sold. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost and are depreciated over the assets’ estimated useful lives using the straight-line method. Ordinary repair and maintenance costs are included in selling, general and administrative (“SG&A”) expenses on our Consolidated Statements of Operations. However, expenditures for additions or improvements that significantly extend the useful life of the asset are capitalized in the period incurred. At the time assets are sold or disposed of, the cost and accumulated depreciation are removed from their respective accounts and the related gains or losses are reflected in the statements of operations in gains from sales of property and equipment, net. We capitalize interest on qualified construction projects. We additionally capitalize certain costs associated with internally developed software and cloud computing arrangements. We periodically evaluate the appropriateness of remaining depreciable lives assigned to property and equipment. Leasehold improvements are amortized using the straight-line method over their estimated useful lives or the remaining term of the lease, whichever is shorter. Depreciation expense on property and equipment is included in SG&A expenses on our Consolidated Statements of Operations. Generally, we assign the following estimated useful lives to these categories: Category Estimated Transportation equipment 5 years Buildings 39 years Office equipment 5 years Computer equipment 3 years Machinery and equipment 7 years When events or changes in circumstances indicate that the carrying amount of our rental fleet and property and equipment might not be recoverable, the expected future undiscounted cash flows from the assets are estimated and compared with the carrying amount of the assets. If the sum of the estimated undiscounted cash flows is less than the carrying amount of the assets, an impairment loss is recorded. The impairment loss is measured by comparing the fair value of the assets with their carrying amounts. Fair value is determined based on discounted cash flows or appraised values, as appropriate. In support of our review for indicators of impairment, we perform a review of our long-lived assets at the branch level relative to branch performance and conclude whether indicators of impairment exist. We did no t record any impairment losses related to our rental equipment or property and equipment during the years ended December 31, 2022, 2021 or 2020 . |
Acquisition Accounting | Acquisition Accounting We have made a number of acquisitions in the past and we may continue to make additional acquisitions in the future. The assets acquired and liabilities assumed are recorded based on their respective fair values at the date of acquisition. Long-lived assets (principally rental equipment), goodwill and other intangible assets generally represent the largest component of our acquisitions. Historically, virtually all of the rental equipment that we have acquired through business combinations have been classified as “To be Used,” rather than as “To be Sold.” Rental equipment that we acquire and classify as “To be Used” is recorded at fair value and is valued utilizing either a cost or market approach, or a combination of these methods, depending on the asset being valued and the availability of cost or market data. Goodwill is calculated as the excess of the fair value of consideration transferred over the net of the fair value of the assets acquired and the liabilities assumed. Such fair market value assessments require judgments and estimates that can be affected by various factors over time, which may cause final amounts to differ materially from original estimates. The identification of assets acquired, inputs utilized for determining the fair value of assets acquired and liabilities assumed and applicable fair value methodologies all include significant judgement. In addition to long-lived fixed assets, we also acquire other assets and assume liabilities. These other assets and liabilities typically include, but are not limited to, parts inventory, accounts receivable, accounts payable and other working capital items. Because of their short-term nature, the fair values of these assets and liabilities generally approximate the carrying values reflected on the acquired entities balance sheets. However, when appropriate, we adjust these carrying values for factors such as collectability and existence. The intangible assets that we have acquired consist primarily of the goodwill recognized. Depending upon the applicable purchase agreement and the particular facts and circumstances of the business acquired, we may identify other intangible assets, such as trade names or trademarks, noncompetition agreements and customer-related intangibles (specifically, customer relationships). A trademark has a fair value equal to the present value of the royalty income attributable to it. The royalty income attributable to a trademark represents the hypothetical cost savings that are derived from owning the trademark instead of paying royalties to license the trademark from another owner. The fair value of noncompetition agreements is estimated based on an income approach since their values are representative of the current and future revenue and profit erosion protection they provide. Customer relationships are generally valued based on an excess earnings or income approach with consideration to projected cash flows. |
Goodwill | Goodwill We evaluate goodwill for impairment at least annually, as of October 1, or more frequently if triggering events occur or other impairment indicators arise that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Impairment of goodwill is evaluated at the reporting unit level. A reporting unit is defined as an operating segment (i.e., before aggregation or combination), or one level below an operating segment (i.e., a component). A component of an operating segment is a reporting unit if the component constitutes a business for which discrete financial information is available and segment management regularly reviews the operating results of that component. Historically, we have identified two components within our Rental operating segment (Equipment Rental Component 1 and Equipment Rental Component 2) and have determined that each of our other operating segments (Used Equipment Sales, New Equipment Sales, Parts Sales and Service Revenues) represent a reporting unit, resulting in six total reporting units. As of October 1, 2021 and driven by the strategic shift in our business that led to discontinued operations presentation, we determined that the historical Equipment Rental Component 2 reporting unit differentiation within the rental operating segment was no longer applicable to our current business. As such, we no longer identify two components within the rental equipment operating segment and the Company now has five reporting units which align with our operating segments. Further, the Equipment Rental Component 2 reporting unit was fully impaired during 2020. Topic 350 consists of a one-step assessment to determine whether goodwill is impaired (“Step 1”). Step 1 requires an entity to compare each reporting unit’s carrying value, including goodwill, with its fair value. An entity should recognize a goodwill impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, limited to the total amount of goodwill allocated to the reporting unit. An entity also has an option to perform a qualitative assessment (“Step 0”) to determine if the quantitative impairment test is necessary. Considerable judgment is required by management in performing Step 0 to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. We performed a Step 0 qualitative assessment of goodwill impairment as of our annual testing date, October 1, 2022. We determined that it was more likely than not that the fair value of each of our reporting units containing goodwill was not less than its carrying value and, therefore, did not perform the prescribed quantitative Step 1 goodwill impairment test. We considered various factors in performing the qualitative test, including macroeconomic conditions, industry and market considerations, the overall financial performance of our reporting units, the Company’s stock price and the excess amount between our reporting unit’s fair value and carrying value as indicated on our most recent quantitative assessment. We performed a Step 1 quantitative assessment of goodwill impairment as of our annual testing date, October 1, 2021, for all reporting units containing goodwill. For these reporting units, we compared the carrying values of each reporting unit, inclusive of goodwill, if applicable, and definite-lived intangible assets, to its fair value. We estimated the fair value of these reporting units by weighting results from the income approach and the market approach. Based on this quantitative test, we determined that our Equipment Rentals, Used Equipment Sales and Parts Sales reporting units were not impaired as of October 1, 2021 as their respective fair values exceeded their respective carrying values by approximately 50 %, 98 % and 9 %, respectively. During 2020, for all reporting units containing goodwill, we performed, as of October 1, a Step 1 quantitative assessment of goodwill impairment. For these reporting units, we compared the carrying values of each reporting unit, inclusive of goodwill and definite-lived intangible assets, to its fair value. We estimated the fair value of these reporting units by weighting results from the income approach and the market approach. Based on this quantitative test, we determined that our Equipment Rental Component 1, Used Equipment Sales and Parts Sales reporting units were not impaired as of the October 1, 2020 annual impairment testing date as their respective fair values exceeded their respective carrying values by approximately 44 %, 90 % and 33 %, respectively. Based on our evaluation of the impact to our business in the first quarter of 2020 from the COVID-19 pandemic, we identified triggering events requiring an interim impairment test as of March 31, 2020. These triggering events included a deterioration in macroeconomic conditions, declines in business volume in our industry, a decline in our actual revenue and earnings compared with our planned revenue and earnings, and a sustained decrease in our stock price. For the interim impairment test as of March 31, 2020, we estimated the fair value of our reporting units containing goodwill by equally weighting results from the income approach and the market approach. We compared those fair values to the carrying values of our four reporting units with carrying values, and determined that our Equipment Rental Component 2 reporting unit had a fair value less than its carrying value, resulting in a $ 55.7 million impairment charge. The impairment was largely due to Equipment Rental Component 2’s forecasted declines in 2020 rental revenues, which was driven by the decrease in equipment rental demand that began in March 2020 as COVID-19’s impact became more widespread across our geographic footprint, combined with our revenue growth rate and cash flow assumptions for the remaining forecast period under the income approach, and the decline in the fair value of Equipment Rental Component 2 based on the market approach from declining business enterprise values of comparable companies in our industry, resulting in a decrease in revenue and EBITDA multiples of those companies. We determined that our Equipment Rental Component 1, Used Equipment Sales and Parts Sales reporting units were not impaired as of the March 31, 2020 interim impairment testing date as their respective fair values exceeded their respective carrying values by approximately 34 %, 90 % and 40 %, respectively. Significant assumptions inherent in the valuation methodologies for goodwill are employed and include, prospective financial information, growth rates, terminal value, discount rates, and comparable multiples from publicly traded companies in our industry. The inputs and variables used in determining the fair value of a reporting unit require management to make certain assumptions regarding the impact of operating and macroeconomic changes, as well as estimates of future cash flows. Our estimates regarding future cash flows are based on historical experience and projections of future operating performance, including revenues, margins and operating expenses. We also make certain forecasts about future economic conditions, such as the timing and duration of economic expansion or contraction cycles in our business, interest rates, and other market data. Many of the factors used in assessing fair value are outside the control of management, and these assumptions and estimates may change in future periods. An adverse change in any of the assumptions used in our impairment testing (e.g., projected revenue and profit, discount rates, industry price multiples, etc.) could affect our fair value measurements and result in future impairments. If we are unable to achieve the financial forecasts used in our impairment analysis, we may also be required to record an impairment charge to our goodwill. The impairment charges described above are non-cash items and do not affect our cash flows, liquidity or borrowing capacity under the Credit Facility, and the impairment charges are excluded from our financial results in evaluating our financial covenant under the Credit Facility. The carrying amount of goodwill for our reporting units for the years ended December 31, 2022 and 2021 is as follows (amounts in thousands). There were no changes to the carrying amount of goodwill for the year ended December 31, 2021. Equipment Used Eq. New Eq. Parts Service Total Balance at December 31, 2021 (1) $ 48,976 $ 8,447 $ — $ 5,714 $ — $ 63,137 Increase (2) 39,553 — — — — 39,553 Balance at December 31, 2022 $ 88,529 $ 8,447 $ — $ 5,714 $ — $ 102,690 (1) The total carrying amount of goodwill as of December 31, 2022 and 2021 in the table above is reflected net of $ 92.7 million of accumulated impairment charges. (2) Increase due to the OSR Acquisition. |
Intangible assets | Intangible assets Our intangible assets include customer relationships, tradenames and leasehold interests that we acquired in recent acquisitions (see Note 3 for further acquisition information). The customer relationships, noncompetition agreements and leasehold interests are amortized on a straight-line basis over estimated useful lives of ten , one and ten years , respectively, from the date of acquisition, which approximates the period of economic benefit. The gross carrying values, accumulated amortization and net carrying amounts of our major classes of intangible assets as of December 31, 2022 and 2021 are as follows (dollar amounts in thousands): December 31, 2022 December 31, 2021 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Customer relationships $ 50,100 $ 18,844 $ 31,256 $ 39,500 $ 14,629 $ 24,871 Noncompetition agreements 1,700 425 1,275 — — — Leasehold interests 200 100 100 200 80 120 Total $ 52,000 $ 19,369 $ 32,631 $ 39,700 $ 14,709 $ 24,991 Intangible assets are tested for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss would be recognized when the carrying amount of the asset exceeds the estimated undiscounted future cash flows expected to result from the use of the asset and its eventual disposition. The impairment loss to be recorded would be the excess of the asset’s carrying value over its fair value. Fair value is generally determined using a discounted cash flow analysis or other valuation technique. Total amortization expense for the years ended December 31, 2022, 2021 and 2020 totaled $ 4.7 million, $ 4.0 million and $ 4.0 million, respectively, and is included within SG&A expenses on the Consolidated Statements of Operations. The following table presents the expected amortization expense for each of the next five years ending December 31 and thereafter for those intangible assets with remaining carrying value as of December 31, 2022 (dollar amounts in thousands): Amortization Expense 2023 $ 6,305 2024 5,030 2025 5,030 2026 5,030 2027 5,030 Thereafter 6,206 $ 32,631 |
Manufacturer Flooring Plans Payable | Manufacturer Flooring Plans Payable Manufacturer flooring plans payable are financing arrangements for inventory and rental equipment. The interest cost incurred on the manufacturer flooring plans ranged from 0 % to the prime rate ( 7.50 % at December 31, 2022) plus an applicable margin at December 31, 2022. Certain manufacturer flooring plans provide for a one to twelve-month reduced interest rate term or a deferred payment period. We recognize interest expense based on the effective interest method. We make payments in accordance with the original terms of the financing agreements. However, we may sell equipment that is financed under manufacturer flooring plans prior to the original maturity date of the financing agreement. The related manufacturer flooring plan payable is then paid at the time the equipment being financed is sold. The manufacturer flooring plans payable are secured by the equipment being financed. Manufacturer flooring plans payable as of December 31, 2022 have maturities (based on original financing terms) during the year ended December 31, 2023. |
Leases | Leases The Company as Lessee We determine whether an arrangement is a lease at the inception of the arrangement based on the terms and conditions in the contract. A contract contains a lease if there is an identified asset and we have the right to control the asset for a period of time in exchange for consideration. Lease arrangements can take several forms. Some arrangements are clearly within the scope of lease accounting, such as a real estate contract that provides an explicit contractual right to use a building for a specified period of time in exchange for consideration. However, the right to use an asset can also be conveyed through arrangements that are not leases in form, such as leases embedded within service and supply contracts. We analyze all arrangements with potential embedded leases to determine if an identified asset is present, if substantive substitution rights are present, and if the arrangement provides the customer control of the asset. Our lease portfolio is substantially comprised of operating leases related to leases of real estate and improvements at our branch locations. From time to time, we may also lease various types of small equipment and vehicles. Operating lease right-of-use (“ROU”) assets represent our right to use an individual asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide the lessor’s implicit rate, we use our incremental borrowing rate (“IBR”) at the commencement date in determining the present value of lease payments by utilizing a fully collateralized rate for a fully amortizing loan with the same term as the lease. Lease terms include options to extend the lease when it is reasonably certain those options will be exercised. For leases with terms greater than 12 months, we record the related asset and obligation at the present value of lease payments over the term. Many of our leases include rental escalation clauses, renewal options and/or termination options that are factored into our determination of lease payments when such renewal options and/or termination options are reasonably certain of exercise. We do not separate lease and non-lease components of contracts. Variable lease payments, which represent lease payments that vary due to changes in facts or circumstances occurring after the commencement date other than the passage of time, are expensed in the period in which the obligation for these payments was incurred. A ROU asset is subject to the same impairment guidance as assets categorized as plant, property, and equipment. As such, any impairment loss on ROU assets is presented in the same manner as an impairment loss recognized on other long-lived assets. A lease modification is a change to the terms and conditions of a contract that change the scope or consideration of a lease. For example, a change to the terms and conditions to the contract that adds or terminates the right to use one or more underlying assets, or extends or shortens the contractual lease term, is a modification. Depending on facts and circumstances, a lease modification may be accounted as either: (1) the original lease plus the lease of a separate asset(s) or (2) a modified lease. A lease will be remeasured if there are changes to the lease contract that do not give rise to a separate lease. See Note 11 related to the required lease disclosures. The Company as Lessor Our equipment rental business involves rental contracts with customers whereby we are the lessor in the transaction and therefore, such transactions are subject to Topic 842. We account for such rental contracts as operating leases. We recognize revenue from equipment rentals in the period earned, regardless of the timing of billing to customers. A rental contract includes rates for daily, weekly or monthly use, and rental revenues are earned on a daily basis as rental contracts remain outstanding. Because the rental contracts can extend across multiple reporting periods, we record unbilled rental revenues and deferred rental revenues at the end of reporting periods so rental revenues earned is appropriately stated for the periods presented. |
Deferred Financing Costs and Initial Purchasers' Discounts | Deferred Financing Costs and Initial Purchasers’ Discounts Deferred financing costs include legal, accounting and other direct costs incurred in connection with the issuance and amendments thereto, of the Company’s debt. These costs are amortized over the terms of the related debt using the straight-line method which approximates amortization using the effective interest method. Initial purchasers’ discount and bond premium is the differential between the price paid to an issuer for the new issue and the prices (below and above, respectively) at which the securities are initially offered to the investing public. The amortization expense of deferred financing costs and bond premium and accretion of initial purchasers’ discounts are included in interest expense as an overall cost of the related financings. Such costs are presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. |
Reserves for Claims | Reserves for Claims We are exposed to various claims relating to our business, including those for which we provide self-insurance. Claims for which we self-insure include: (1) workers compensation claims; (2) general liability claims by third parties for injury or property damage caused by our equipment or personnel; (3) automobile liability claims; and (4) employee health insurance claims. Losses that exceed our deductibles and self-insured retentions are insured through various commercial lines of insurance policies. These types of claims may take a substantial amount of time to resolve and, accordingly, the ultimate liability associated with a particular claim, including claims incurred but not reported as of a period-end reporting date, may not be known for an extended period of time. Our methodology for developing self-insurance reserves is based on management estimates. Our estimation process considers, among other matters, the cost of known claims over time, cost inflation and incurred but not reported claims. These estimates may change based on, among other things, changes in our claim history or receipt of additional information relevant to assessing the claims. Further, these estimates may prove to be inaccurate due to factors such as adverse judicial determinations or other claim settlements at higher than estimated amounts. Accordingly, we may be required to increase or decrease our reserve levels. At December 31, 2022 , our claims reserves related to workers compensation, general liability and automobile liability, which are included in “Accrued expenses payable and other liabilities” in our consolidated balance sheets, totaled $ 9.1 million and our health insurance reserves totaled $ 1.9 million. At December 31, 2021 , our claims reserves related to workers compensation, general liability and automobile liability totaled $ 7.8 million and our health insurance reserves totaled $ 2.0 million. |
Advertising | Advertising Advertising costs are expensed as incurred and totaled $ 1.0 million, $ 1.1 million and $ 0.2 million for the years ended December 31, 2022, 2021 and 2020 , respectively. |
Income Taxes | Income Taxes The Company files a consolidated federal income tax return with its wholly-owned subsidiaries. The Company is a C-Corporation under the provisions of the Internal Revenue Code. We utilize the asset and liability approach to measure deferred tax assets and liabilities based on temporary differences existing at each balance sheet date using currently enacted tax rates. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rate is recognized as income or expense in the period that includes the enactment date of that rate. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax provisions are measured at the largest amount that is greater than 50 % likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company recognizes both interest and penalties related to uncertain tax positions in net other income (expense). Our deferred tax calculation requires management to make certain estimates about future operations. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is defined as the amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The FASB fair value measurement guidance established a fair value hierarchy that prioritizes the inputs used to measure fair value. The three broad levels of the fair value hierarchy are as follows: Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities Level 2 – Quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly Level 3 – Unobservable inputs for which little or no market data exists, therefore requiring a company to develop its own assumptions The carrying value of financial instruments reported in the accompanying consolidated balance sheets for cash and cash equivalents, accounts receivable, accounts payable and accrued expenses payable and other liabilities approximate fair value due to the immediate or short-term nature or maturity of these financial instruments. The carrying amounts and fair values of our other financial instruments subject to fair value disclosures as of December 31, 2022 and 2021 are presented in the table below (amounts in thousands). December 31, 2022 Carrying Fair Manufacturer flooring plans payable with interest computed at 7.75 % (Level 3) $ 422 $ 392 Senior unsecured notes due 2028 with interest computed at 3.875 % (Level 2) 1,241,409 1,070,088 December 31, 2021 Carrying Fair Manufacturer flooring plans payable with interest computed at 3.5 % (Level 3) $ 20,924 $ 19,533 Senior unsecured notes due 2028 with interest computed at 3.875 % (Level 2) 1,239,967 1,242,850 At December 31, 2022 and 2021 , the fair value of our senior unsecured notes due 2028 (the “Senior Unsecured Notes”), respectively, were based on quoted bond trading market prices for those notes. For our Level 3 unobservable inputs, we calculate a discount rate for our manufacturer flooring plans payable based on the U.S. prime rate plus the applicable margin on our Credit Facility. The discount rate is disclosed in the above table. The assets collateralized against the manufacturer flooring plans payable approximate its carrying value. During the years ended December 31, 2022 and 2021 , there were no transfers of financial assets or liabilities in or out of Level 3 of the fair value hierarchy. Fair Value Measurements on a Nonrecurring Basis Our non-financial assets, such as goodwill, intangible assets and property and equipment, are adjusted to fair value only when an impairment charge is recognized or the underlying investment is sold. Such fair value measurements are based predominately on Level 3 inputs. The results of our first quarter 2020 goodwill impairment quantitative test indicated that the respective fair values of the Equipment Rental Component 2 reporting unit was less than the carrying value of the reporting unit, resulting in a goodwill impairment for the Equipment Rental Component 2 reporting unit. |
Concentrations of Credit and Supplier Risk | Concentrations of Credit and Supplier Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash deposits and trade accounts receivable. Credit risk can be negatively impacted by adverse changes in the economy or by disruptions in the credit markets. The Company maintains its cash deposits with established commercial banks. At times, balances may exceed federally insured limits. We have not experienced any losses in such accounts and do not believe that we are exposed to any significant credit risk associated with our cash deposits. We believe that credit risk with respect to trade accounts receivable is somewhat mitigated by our large number of geographically diverse customers and our credit evaluation procedures. Although generally no collateral is required, when feasible, mechanics’ liens are filed and personal guarantees are signed to protect the Company’s interests. We maintain reserves for potential losses. We record trade accounts receivables at sales value and establish specific reserves for certain customer accounts identified as known collection problems due to insolvency, disputes or other collection issues. The amounts of the specific reserves estimated by management are determined by a loss rate model based on delinquency, as further described above in receivables and contract assets and liabilities. We purchase a significant amount of equipment from leading, nationally-known original equipment manufacturers. During the year ended December 31, 2022 , we purchased approximately 50.0 % of our equipment from five manufacturers (JCB, Skyjack, Sany, Komatsu, and Yanmar) providing our rental and sales equipment. We believe that while there are alternative sources of supply for the equipment we purchase in each of the principal product categories, termination of one or more of our relationships with any of our major suppliers of equipment could have a material adverse effect on our business, financial condition or results of operation if we were unable to obtain adequate or timely rental and sales equipment. |
Income (Loss) per Share | Income (loss) per Share Income (loss) per common share for the years ended December 31, 2022, 2021 and 2020 is based on the weighted average number of common shares outstanding during the period. The effects of potentially dilutive securities that are anti-dilutive are not included in the computation of diluted income (loss) per share. We include all common shares granted under our incentive compensation plan which remain unvested (“restricted common shares”) and contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid (“participating securities”), in the number of shares outstanding in our basic and diluted EPS calculations using the two-class method. All of our restricted common shares are currently participating securities. Under the two-class method, earnings per common share are computed by dividing the sum of distributed earnings allocated to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding for the period. In applying the two-class method, distributed and undistributed earnings are allocated to both common shares and restricted common shares based on the total weighted average shares outstanding during the period. The number of restricted common shares outstanding during the years ended December 31, 2022, 2021 and 2020 were less than 1 % of total outstanding shares for each of the years ended December 31, 2022, 2021 and 2020 and consequently, were immaterial to the basic and diluted EPS calculations. Therefore, use of the two-class method had no impact on our basic and diluted EPS calculations as presented for the years ended December 31, 2022, 2021 and 2020. The following table sets forth the computation of basic and diluted net income (loss) per common share for the years ended December 31, (amounts in thousands, except per share amounts): 2022 2021 2020 Net income (loss) from continuing operations $ 133,694 $ 60,564 $ ( 46,396 ) Net income (loss) from discontinued operations $ ( 1,524 ) $ 41,976 $ 13,729 Net income (loss) $ 132,170 $ 102,540 $ ( 32,667 ) Weighted average number of common shares outstanding: Basic 35,943 36,261 36,067 Effect of dilutive non-vested restricted stock 146 190 — Diluted 36,089 36,451 36,067 Income (loss) per share: (1) Basic: Continuing operations $ 3.72 $ 1.67 $ ( 1.29 ) Discontinued operations ( 0.04 ) 1.16 0.38 Net income (loss) per share $ 3.68 $ 2.83 $ ( 0.91 ) Diluted: Continuing operations $ 3.70 $ 1.66 $ ( 1.29 ) Discontinued operations ( 0.04 ) 1.15 0.38 Net income (loss) per share $ 3.66 $ 2.81 $ ( 0.91 ) Common shares excluded from the denominator as anti-dilutive: Non-vested restricted stock 81 23 147 (1) Because of the method used in calculating per share data, the summations may not necessarily total to the per share data computed for the total company due to rounding. |
Segment Reporting | Segment Reporting We have five reportable segments. We derive our revenues from five principal business activities: (1) equipment rentals; (2) used equipment sales; (3) new equipment sales; (4) parts sales; and (5) repair and maintenance services. These segments are based upon how we allocate resources and assess performance. See Note 17 to the consolidated financial statements regarding our segment information. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Pronouncements Not Yet Adopted In March 2020, the FASB issued Accounting Standards Update (“ASU”) No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional guidance for a limited time to ease the potential burden in accounting for or recognizing the effects of reference rate reform, particularly, the risk of cessation of the London Interbank Offered Rate (“LIBOR”) on financial reporting. The guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments are elective and are effective upon issuance for all entities through December 31, 2022. The amendments of this ASU should be applied on a prospective basis. On December 21, 2022, the FASB issued ASU 2022-06 to defer the sunset date of ASC 848 until December 31, 2024. The ASU became effective upon issuance. We intend to continue to monitor the developments with respect to the planned phase-out out of LIBOR and work with our lenders to seek to ensure any transition away from LIBOR will have minimal impact on our financial condition. However, we can provide no assurances regarding the impact of the discontinuation of LIBOR as there can be no assurances as to whether such replacement or alternative base rate will be more or less favorable than LIBOR. Our exposure related to the expected cessation of LIBOR is limited to the interest expense and certain fees we incur on balances outstanding under our Senior Secured Credit Facility (the “Credit Facility”). As certain U.S. dollar LIBOR settings will continue to be published until June 30, 2023, we amended our credit facility on September 14, 2021 to include benchmark language for an upcoming transition away from LIBOR. Subsequent to year end, we amended and restated our Credit Facility to transition to SOFR as of February 2, 2023. We do not believe the impact from the cessation of LIBOR as a reference rate, as well as the applicability of ASU 2020-04 and ASU 2022-06, will have a material impact on our consolidated financial statements. Recently Adopted Accounting Pronouncements Income Taxes On January 1, 2021 , we adopted ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The guidance removes the following exceptions: 1) exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items, 2) exception to the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment, 3) exception to the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary and 4) exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. Additionally, the guidance simplifies the accounting for income taxes by: 1) requiring that an entity recognize a franchise tax (or similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax, 2) requiring that an entity evaluate when a step up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill was originally recognized and when it should be considered a separate transaction, 3) specifying that an entity is not required to allocate the consolidated amount of current and deferred tax expense to a legal entity that is not subject to tax in its separate financial statements (although the entity may elect to do so (on an entity-by-entity basis) for a legal entity that is both not subject to tax and disregarded by the taxing authority), 4) requiring that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date and 5) making minor improvements for income tax accounting related to employee stock ownership plans and investments in qualified affordable housing projects accounted for using the equity method. The adoption did no t have a material impact on our consolidated financial statements presented herein . Credit Losses On January 1, 2020 , we adopted Accounting Standards Codification Topic 326, Credit Losses (Topic 326). This standard establishes an impairment model (known as the current expected credit loss (“CECL”) model) that is based on expected losses rather than incurred losses. Under the new guidance, we recognize an allowance for our estimate of expected credit losses over the entire contractual term of our receivables from the date of initial recognition of the financial instrument. Measurement of expected credit losses are based on relevant forecasts that affect collectability. Topic 326 applies to trade receivables from certain revenue transactions including receivables from equipment sales, parts and service sales. Under Topic 606 (Revenue from Contracts with Customers), revenue is recognized when, among other criteria, it is probable that the entity will collect the consideration to which it is entitled for goods or services transferred to a customer. At the point that these trade receivables are recorded, they become subject to the CECL model and estimates of expected credit losses over their contractual life are recorded at inception based on historical information, current conditions, and reasonable and supportable forecasts. The adoption of Topic 326 did no t have a material impact on our consolidated financial statements and related disclosures or our existing internal controls because our non-rental accounts receivable are of short duration and there is not a material difference between incurred losses and expected losses. Fair Value On January 1, 2020 , we adopted ASU No. 2018-13, Fair Value Measurement - Disclosure Framework. ASU 2018-13 modifies the disclosure requirements for fair value measurements. Entities are no longer required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but public companies are required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. The adoption of ASU 2018-13 did no t have a material impact on our consolidated financial statements and footnotes. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Revenues by Type and by Applicable Accounting Standard | The tables below summarize our revenues as presented in our Consolidated Statements of Operations for the years ended December 31, 2022, 2021 and 2020 by revenue type and by the applicable accounting standard (amounts in thousands). Year Ended December 31, 2022 Topic 842 Topic 606 Total Revenues: Rental Revenues: Owned equipment rentals $ 814,423 $ 406 $ 814,829 Re-rent revenue 32,726 — 32,726 Ancillary and other rental revenues: Delivery and pick-up — 56,303 56,303 Other 52,184 — 52,184 Total ancillary rental revenues 52,184 56,303 108,487 Total equipment rental revenues 899,333 56,709 956,042 Used equipment sales — 90,885 90,885 New equipment sales — 92,526 92,526 Parts sales — 64,646 64,646 Services revenues — 34,226 34,226 Other — 6,193 6,193 Total revenues $ 899,333 $ 345,185 $ 1,244,518 Year Ended December 31, 2021 Topic 842 Topic 606 Total Revenues: Rental Revenues: Owned equipment rentals $ 617,831 $ 354 $ 618,185 Re-rent revenue 34,819 — 34,819 Ancillary and other rental revenues: Delivery and pick-up — 40,523 40,523 Other 36,173 — 36,173 Total ancillary rental revenues 36,173 40,523 76,696 Total equipment rental revenues 688,823 40,877 729,700 Used equipment sales — 135,245 135,245 New equipment sales — 92,677 92,677 Parts sales — 65,623 65,623 Services revenues — 33,034 33,034 Other — 6,518 6,518 Total revenues $ 688,823 $ 373,974 $ 1,062,797 Year Ended December 31, 2020 Topic 842 Topic 606 Total Revenues: Rental Revenues: Owned equipment rentals $ 557,166 $ 471 $ 557,637 Re-rent revenue 23,507 — 23,507 Ancillary and other rental revenues: Delivery and pick-up — 35,793 35,793 Other 27,508 — 27,508 Total ancillary rental revenues 27,508 35,793 63,301 Total equipment rental revenues 608,181 36,264 644,445 Used equipment sales — 139,769 139,769 New equipment sales — 113,708 113,708 Parts sales — 65,881 65,881 Services revenues — 35,989 35,989 Other — 7,183 7,183 Total revenues $ 608,181 $ 398,794 $ 1,006,975 |
Estimated Useful Lives of Property Plant and Equipment | Generally, we assign the following estimated useful lives to these categories: Category Estimated Transportation equipment 5 years Buildings 39 years Office equipment 5 years Computer equipment 3 years Machinery and equipment 7 years |
Schedule of Carrying Amount of Goodwill | The carrying amount of goodwill for our reporting units for the years ended December 31, 2022 and 2021 is as follows (amounts in thousands). There were no changes to the carrying amount of goodwill for the year ended December 31, 2021. Equipment Used Eq. New Eq. Parts Service Total Balance at December 31, 2021 (1) $ 48,976 $ 8,447 $ — $ 5,714 $ — $ 63,137 Increase (2) 39,553 — — — — 39,553 Balance at December 31, 2022 $ 88,529 $ 8,447 $ — $ 5,714 $ — $ 102,690 (1) The total carrying amount of goodwill as of December 31, 2022 and 2021 in the table above is reflected net of $ 92.7 million of accumulated impairment charges. (2) Increase due to the OSR Acquisition. |
Schedule of Gross Carrying Values, Accumulated Amortization and Net Carrying Amounts of Major Classes of Intangible Assets | The gross carrying values, accumulated amortization and net carrying amounts of our major classes of intangible assets as of December 31, 2022 and 2021 are as follows (dollar amounts in thousands): December 31, 2022 December 31, 2021 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Customer relationships $ 50,100 $ 18,844 $ 31,256 $ 39,500 $ 14,629 $ 24,871 Noncompetition agreements 1,700 425 1,275 — — — Leasehold interests 200 100 100 200 80 120 Total $ 52,000 $ 19,369 $ 32,631 $ 39,700 $ 14,709 $ 24,991 |
Schedule of Expected Amortization Expense of Intangible Assets with Remaining Carrying Value | The following table presents the expected amortization expense for each of the next five years ending December 31 and thereafter for those intangible assets with remaining carrying value as of December 31, 2022 (dollar amounts in thousands): Amortization Expense 2023 $ 6,305 2024 5,030 2025 5,030 2026 5,030 2027 5,030 Thereafter 6,206 $ 32,631 |
Estimated Incremental Borrowing Rates for Similar Types of Borrowing Arrangements | The carrying amounts and fair values of our other financial instruments subject to fair value disclosures as of December 31, 2022 and 2021 are presented in the table below (amounts in thousands). December 31, 2022 Carrying Fair Manufacturer flooring plans payable with interest computed at 7.75 % (Level 3) $ 422 $ 392 Senior unsecured notes due 2028 with interest computed at 3.875 % (Level 2) 1,241,409 1,070,088 December 31, 2021 Carrying Fair Manufacturer flooring plans payable with interest computed at 3.5 % (Level 3) $ 20,924 $ 19,533 Senior unsecured notes due 2028 with interest computed at 3.875 % (Level 2) 1,239,967 1,242,850 |
Summary of Computation of Basic and Diluted Net Income Per Common Share | The following table sets forth the computation of basic and diluted net income (loss) per common share for the years ended December 31, (amounts in thousands, except per share amounts): 2022 2021 2020 Net income (loss) from continuing operations $ 133,694 $ 60,564 $ ( 46,396 ) Net income (loss) from discontinued operations $ ( 1,524 ) $ 41,976 $ 13,729 Net income (loss) $ 132,170 $ 102,540 $ ( 32,667 ) Weighted average number of common shares outstanding: Basic 35,943 36,261 36,067 Effect of dilutive non-vested restricted stock 146 190 — Diluted 36,089 36,451 36,067 Income (loss) per share: (1) Basic: Continuing operations $ 3.72 $ 1.67 $ ( 1.29 ) Discontinued operations ( 0.04 ) 1.16 0.38 Net income (loss) per share $ 3.68 $ 2.83 $ ( 0.91 ) Diluted: Continuing operations $ 3.70 $ 1.66 $ ( 1.29 ) Discontinued operations ( 0.04 ) 1.15 0.38 Net income (loss) per share $ 3.66 $ 2.81 $ ( 0.91 ) Common shares excluded from the denominator as anti-dilutive: Non-vested restricted stock 81 23 147 (1) Because of the method used in calculating per share data, the summations may not necessarily total to the per share data computed for the total company due to rounding. |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Acquisition [Line Items] | |
Schedule of Income from Discontinued Operations and Cash Flows from Discontinued Operations | The following tables (amounts in thousands) present the Crane Sale results as reported in income from discontinued operations within our Consolidated Statements of Operations. Year Ended December 31, 2022 2021 2020 Revenues: Equipment rentals $ — $ 10,321 $ 18,548 Used equipment sales — 11,545 13,383 New equipment sales — 52,286 53,422 Parts sales — 33,268 44,713 Services revenues — 20,855 28,264 Other — 3,755 3,815 Total revenues — 132,030 162,145 Cost of revenues: Rental depreciation — 3,720 8,385 Rental expense — 1,947 2,454 Rental other — 1,000 1,285 — 6,667 12,124 Used equipment sales — 8,713 9,791 New equipment sales — 46,725 47,565 Parts sales — 25,288 34,024 Services revenues — 6,767 9,651 Other — 3,168 3,434 Total cost of revenues — 97,328 116,589 Gross profit — 34,702 45,556 Selling, general and administrative expenses 132 20,937 23,370 Impairment of goodwill — — 6,330 Gain on sales of property and equipment, net — 49 2,556 (Loss) gain on sale of discontinued operations ( 1,917 ) 42,072 — Income (loss) from discontinued operations ( 2,049 ) 55,886 18,412 Other, net — 62 26 Income (loss) before provision (benefit) for income taxes ( 2,049 ) 55,948 18,438 Provision (benefit) for income taxes ( 525 ) 13,972 4,709 Net income (loss) from discontinued operations $ ( 1,524 ) $ 41,976 $ 13,729 Cash flows from discontinued operations was as follows (amounts in thousands): Year Ended December 31, 2022 2021 2020 Operating activities of discontinued operations: Depreciation and amortization of property and equipment $ — $ 1,083 $ 2,264 Depreciation of rental equipment — 3,720 8,385 Loss (gain) on sale of discontinued operations 1,917 ( 42,072 ) — Impairment of goodwill — — 6,330 Gain from sales of property and equipment, net — ( 49 ) ( 2,556 ) Gain from sales of rental equipment, net — ( 2,203 ) ( 3,218 ) Investing activities of discontinued operations: Purchases of rental equipment — ( 2,431 ) ( 8,655 ) Proceeds from sales of property and equipment — 43 4,895 Proceeds from sales of rental equipment — 5,929 8,679 |
One Source Equipment Rentals, Inc [Member] | |
Business Acquisition [Line Items] | |
Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the fair value of the assets acquired and liabilities assumed as of the acquisition date. The opening balance sheet amounts presented below are preliminary and subject to change as we obtain additional information during the acquisition measurement period and finalize customary closing adjustments with the seller. $’s in thousands Cash $ 337 Accounts receivable (1) 11,163 Inventory 521 Prepaid expenses and other assets 374 Rental equipment 102,436 Property and equipment 4,216 Operating lease right-of-use assets 2,388 Intangible assets (2) 12,300 Total identifiable assets acquired 133,735 Accounts payable ( 4,723 ) Tax payable ( 1,674 ) Operating lease liabilities ( 2,388 ) Deferred income taxes ( 27,653 ) Total liabilities assumed ( 36,438 ) Net identifiable assets acquired 97,297 Goodwill (3) 39,553 Net assets acquired $ 136,850 (1) Includes an indemnification receivable of $ 0.7 million related to an unrecognized tax benefit. (2) The following table reflects the estimated fair values and useful lives of the acquired intangible assets identified based on our purchase accounting assessments: Fair Value Life (years) Customer relationships $ 10,600 10 Noncompetition agreements 1,700 1 $ 12,300 (3) The acquired goodwill has been allocated to the equipment rentals reporting unit. |
Unaudited Pro Forma Financial Information | The pro forma information for the years ended December 31, 2022 and 2021 in the table below (amounts in thousands) is for informational purposes only and gives effect to the OSR acquisition as if it had been completed on January 1, 2021 (the “pro forma acquisition date”). The pro forma information is not necessarily indicative of our results of operations had the acquisition been completed on the pro forma acquisition date, nor is it necessarily indicative of our future results. The pro forma information does not reflect any cost savings from operating efficiencies or synergies that could result from the acquisition, nor does it reflect additional revenue opportunities following the acquisition. The unaudited pro forma financial information includes adjustments primarily related to the incremental depreciation and amortization expense of the rental equipment and intangible assets acquired, the elimination of interest expense related to historical debt as well as other expenses that are not part of the combined entity and transaction expenses. Year Ended December 31, 2022 2021 Total revenues $ 1,289,605 $ 1,117,088 Net income $ 140,864 $ 41,474 |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Summary of Receivables | Receivables consisted of the following at December 31, (amounts in thousands): 2022 2021 Trade receivables $ 216,280 $ 151,835 Unbilled rental revenue 12,872 9,006 Income tax receivables 2,577 541 Other 202 22 231,931 161,404 Less allowance for doubtful accounts ( 6,637 ) ( 4,178 ) Total receivables, net $ 225,294 $ 157,226 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories consisted of the following at December 31, (amounts in thousands): 2022 2021 Used equipment $ 12 $ 179 New equipment 94,906 62,473 Parts, supplies and other 12,924 12,647 Total inventories, net $ 107,842 $ 75,299 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Summary of Net Property and Equipment | Net property and equipment consisted of the following at December 31, (amounts in thousands): 2022 2021 Land $ 6,852 $ 6,533 Transportation equipment 147,171 129,307 Building and leasehold improvements 67,181 63,632 Office and computer equipment 54,099 50,028 Machinery and equipment 17,241 15,662 Construction in progress 19,110 9,032 311,654 274,194 Less accumulated depreciation and amortization ( 177,017 ) ( 161,913 ) Total net property and equipment $ 134,637 $ 112,281 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Non-Vested Stock Activity | The following table summarizes our non-vested stock activity for the years ended December 31, 2022 and 2021: Number of Weighted Non-vested stock at January 1, 2021 524,876 $ 23.00 Granted 202,687 $ 33.28 Vested ( 186,042 ) $ 26.83 Forfeited ( 61,374 ) $ 25.31 Non-vested stock at December 31, 2021 480,147 $ 25.56 Granted 281,490 $ 36.07 Vested ( 160,868 ) $ 27.46 Forfeited ( 40,313 ) $ 29.43 Non-vested stock at December 31, 2022 560,456 $ 30.02 |
Accrued Expenses Payable and _2
Accrued Expenses Payable and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Expenses Payable and Other Liabilities | Accrued expenses payable and other liabilities consisted of the following at December 31, (amounts in thousands): 2022 2021 Payroll and related liabilities $ 40,367 $ 33,477 Sales, use and property taxes 10,984 11,757 Accrued interest 2,290 2,279 Accrued insurance 7,641 6,995 Deferred revenue 6,661 5,167 Other 9,199 4,233 Total accrued expenses payable and other liabilities $ 77,142 $ 63,908 |
Senior Unsecured Notes (Tables)
Senior Unsecured Notes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Senior Unsecured Notes [Member] | |
Debt Instrument [Line Items] | |
Reconciliation of Senior Unsecured Notes to Consolidated Balance Sheets | The following table reconciles our Senior Unsecured Notes to our Consolidated Balance Sheets (amounts in thousands): Balance at December 31, 2020 $ 1,238,660 Accretion of discount through December 31, 2021 1,172 Additional deferred financing costs through December 31, 2021 ( 135 ) Amortization of deferred financing costs through December 31, 2021 270 Balance at December 31, 2021 $ 1,239,967 Accretion of discount through December 31, 2022 1,172 Amortization of deferred financing costs through December 31, 2022 270 Balance at December 31, 2022 $ 1,241,409 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Summary of Lease Costs, Under Topic 842, for Operating and Finance Leases | The table below presents certain information related to lease costs, under Topic 842, for our operating and finance leases for the years ended December 31, 2022 and 2021 (in thousands). Year Ended December 31, Classification 2022 2021 Operating lease cost SG&A expenses $ 27,153 $ 24,347 Finance lease costs Amortization of leased assets SG&A expenses 107 122 Interest on lease liabilities Interest expense 52 9 Variable lease cost SG&A expenses 1,834 1,046 Sublease income Other income ( 2,074 ) ( 1,379 ) Total lease cost $ 27,072 $ 24,145 |
Schedule of Supplemental Cash Flow Information Related to Leases | The table below presents supplemental cash flow information related to leases for the years ended December 31, 2022 and 2021 (in thousands). Year Ended December 31, 2022 2021 Cash paid for amounts included in the measurements of lease liabilities: Operating cash flows for operating leases $ 26,407 $ 23,527 Operating cash flows for finance leases 52 9 Finance cash flows for finance leases 1,141 194 |
Summary of Undiscounted Cash Flows and Operating and Finance Lease Liabilities Recorded on Consolidated Balance Sheet | The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating and finance lease liabilities recorded on our consolidated balance sheet as of December 31, 2022 (in thousands). Operating Leases Finance Leases 2023 $ 21,999 $ 184 2024 29,258 190 2025 28,554 197 2026 27,560 204 2027 26,367 211 Thereafter 83,953 1,030 Total minimum lease payments 217,691 2,016 Less: amount of lease payments representing interest ( 48,622 ) ( 422 ) Present value of future minimum lease payments $ 169,069 $ 1,594 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Tax Provision (Benefit) | Our income tax provision (benefit) for the years ended December 31, 2022, 2021 and 2020, consists of the following (amounts in thousands): Current Deferred Total Year Ended December 31, 2022 U.S. Federal $ — $ 37,680 $ 37,680 State 4,306 5,050 9,356 $ 4,306 $ 42,730 $ 47,036 Year Ended December 31, 2021 U.S. Federal $ — $ 16,513 $ 16,513 State 2,574 2,073 4,647 $ 2,574 $ 18,586 $ 21,160 Year ended December 31, 2020: U.S. Federal $ ( 761 ) $ ( 9,362 ) $ ( 10,123 ) State 471 ( 3,776 ) ( 3,305 ) $ ( 290 ) $ ( 13,138 ) $ ( 13,428 ) |
Deferred Income Tax Assets and Liabilities | Significant components of our deferred income tax assets and liabilities as of December 31 are as follows (amounts in thousands): 2022 2021 Deferred tax assets: Accounts receivable $ 1,497 $ 883 Inventories 13 18 Net operating losses 74,931 68,942 Tax Credits 7,040 8,393 Sec 263A costs 764 534 Accrued liabilities 3,431 3,800 Deferred compensation 2,794 1,522 Interest Expense 12,238 — Stock-based compensation 242 208 Goodwill and intangible assets 7,842 9,669 Other assets 86 74 110,878 94,043 Valuation allowance ( 5,930 ) ( 7,598 ) 104,948 86,445 Deferred tax liabilities: Property and equipment ( 370,404 ) ( 284,997 ) Investments ( 1,109 ) ( 1,094 ) Goodwill and intangible assets ( 4,597 ) ( 1,585 ) ( 376,110 ) ( 287,676 ) Net deferred tax liabilities $ ( 271,162 ) $ ( 201,231 ) |
Actual Income Tax Expense (Benefit) | The reconciliation between income taxes computed using the statutory federal income tax rate of 21 % to the actual income tax expense (benefit) is below for the years ended December 31 (amounts in thousands): 2022 2021 2020 Computed tax at statutory rates $ 37,953 $ 17,162 $ ( 12,563 ) Permanent items – other 1,683 406 1,241 Permanent items – excess of tax deductible goodwill — — ( 1,473 ) Permanent items – impairment of goodwill — — 2,008 State income tax, net of federal tax effect 9,068 2,390 ( 9,037 ) Change in valuation allowance ( 1,668 ) 1,202 6,396 $ 47,036 $ 21,160 $ ( 13,428 ) |
Summary of Reconciliation of Total Amounts of Gross Unrecognized Tax Benefits | A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows (in thousands): 2022 2021 Gross unrecognized tax benefits at January 1 $ — $ — Increases in tax positions taken in prior years — — Decreases in tax positions taken in prior years — — Increases in tax positions taken in current years 1,425 — Decreases in tax positions taken in current years — — Settlements with taxing authorities — — Lapse in statute of limitations — — Gross unrecognized tax benefits at December 31 $ 1,425 $ — |
Summarized Quarterly Financia_2
Summarized Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Unaudited Quarterly Financial Results of Operations | The following is a summary of our unaudited quarterly financial results of operations for the years ended December 31, 2022 and 2021 (amounts in thousands, except per share amounts): First Second Third Fourth 2022: Total revenues from continuing operations $ 272,450 $ 294,671 $ 324,280 $ 353,117 Income from continuing operations 34,688 50,666 63,994 78,806 Income from continuing operations before provision for income taxes 22,121 38,059 51,329 69,221 Net income from continuing operations 16,296 27,870 38,376 51,152 Basic net income from continuing operations per common share (1) $ 0.45 $ 0.77 $ 1.05 $ 1.42 Diluted net income from continuing operations per common share (1) $ 0.45 $ 0.76 $ 1.05 $ 1.41 First Second Third Fourth 2021: Total revenues from continuing operations $ 240,432 $ 265,677 $ 275,436 $ 281,252 Income from continuing operations 15,321 29,734 45,662 41,603 Income from continuing operations before provision for income taxes 2,539 17,059 32,847 29,279 Net income from continuing operations 1,855 12,251 24,728 21,730 Basic net income from continuing operations per common share (1) $ 0.05 $ 0.34 $ 0.68 $ 0.60 Diluted net income from continuing operations per common share (1) $ 0.05 $ 0.34 $ 0.68 $ 0.59 (1) Because of the method used in calculating per share data, the summation of quarterly per share data may not necessarily total to the per share data computed for the entire year due to rounding. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Information about Reportable Segments | The following table presents information about our reportable segments (amounts in thousands): Years Ended December 31, 2022 2021 2020 Segment Revenues: Equipment rentals $ 956,042 $ 729,700 $ 644,445 Used equipment sales 90,885 135,245 139,769 New equipment sales 92,526 92,677 113,708 Parts sales 64,646 65,623 65,881 Services revenues 34,226 33,034 35,989 Total segmented revenues 1,238,325 1,056,279 999,792 Non-Segmented revenues 6,193 6,518 7,183 Total revenues $ 1,244,518 $ 1,062,797 $ 1,006,975 Segment Gross Profit: Equipment rentals $ 460,243 $ 315,629 $ 257,508 Used equipment sales 44,316 48,922 44,970 New equipment sales 13,096 11,855 12,207 Parts sales 18,035 17,277 17,750 Services revenues 21,998 21,797 24,464 Total gross profit from segmented revenues 557,688 415,480 356,899 Non-segmented gross profit (loss) ( 2,525 ) ( 117 ) 164 Total gross profit $ 555,163 $ 415,363 $ 357,063 December 31, 2022 2021 Segment identified assets: Equipment rentals $ 1,418,951 $ 1,116,456 Equipment sales 94,918 62,652 Parts and service 12,924 12,647 Total segment identified assets 1,526,793 1,191,755 Non-Segmented identified assets 764,906 888,692 Total assets $ 2,291,699 $ 2,080,447 |
Significant Accounting Polici_4
Significant Accounting Policies - Summary of Revenue by Type and by Applicable Accounting Standard (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues: | |||||||||||
Revenues | $ 353,117 | $ 324,280 | $ 294,671 | $ 272,450 | $ 281,252 | $ 275,436 | $ 265,677 | $ 240,432 | $ 1,244,518 | $ 1,062,797 | $ 1,006,975 |
Topic 842 [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 899,333 | 688,823 | 608,181 | ||||||||
Topic 606 [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 345,185 | 373,974 | 398,794 | ||||||||
Rental Revenues [Member] | Owned Equipment Rentals [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 814,829 | 618,185 | 557,637 | ||||||||
Rental Revenues [Member] | Owned Equipment Rentals [Member] | Topic 842 [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 814,423 | 617,831 | 557,166 | ||||||||
Rental Revenues [Member] | Owned Equipment Rentals [Member] | Topic 606 [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 406 | 354 | 471 | ||||||||
Rental Revenues [Member] | Re Rent Revenues [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 32,726 | 34,819 | 23,507 | ||||||||
Rental Revenues [Member] | Re Rent Revenues [Member] | Topic 842 [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 32,726 | 34,819 | 23,507 | ||||||||
Ancillary And Other Rental Revenues [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 108,487 | 76,696 | 63,301 | ||||||||
Ancillary And Other Rental Revenues [Member] | Topic 842 [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 52,184 | 36,173 | 27,508 | ||||||||
Ancillary And Other Rental Revenues [Member] | Topic 606 [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 56,303 | 40,523 | 35,793 | ||||||||
Ancillary And Other Rental Revenues [Member] | Delivery and Pick-up [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 56,303 | 40,523 | 35,793 | ||||||||
Ancillary And Other Rental Revenues [Member] | Delivery and Pick-up [Member] | Topic 606 [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 56,303 | 40,523 | 35,793 | ||||||||
Ancillary And Other Rental Revenues [Member] | Other [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 52,184 | 36,173 | 27,508 | ||||||||
Ancillary And Other Rental Revenues [Member] | Other [Member] | Topic 842 [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 52,184 | 36,173 | 27,508 | ||||||||
Total Equipment Rental Revenues [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 956,042 | 729,700 | 644,445 | ||||||||
Total Equipment Rental Revenues [Member] | Topic 842 [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 899,333 | 688,823 | 608,181 | ||||||||
Total Equipment Rental Revenues [Member] | Topic 606 [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 56,709 | 40,877 | 36,264 | ||||||||
Used Equipment Sales [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 90,885 | 135,245 | 139,769 | ||||||||
Used Equipment Sales [Member] | Topic 606 [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 90,885 | 135,245 | 139,769 | ||||||||
New Equipment Sales [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 92,526 | 92,677 | 113,708 | ||||||||
New Equipment Sales [Member] | Topic 606 [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 92,526 | 92,677 | 113,708 | ||||||||
Parts Sales [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 64,646 | 65,623 | 65,881 | ||||||||
Parts Sales [Member] | Topic 606 [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 64,646 | 65,623 | 65,881 | ||||||||
Parts and Services [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 34,226 | 33,034 | 35,989 | ||||||||
Parts and Services [Member] | Topic 606 [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 34,226 | 33,034 | 35,989 | ||||||||
Other [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | 6,193 | 6,518 | 7,183 | ||||||||
Other [Member] | Topic 606 [Member] | |||||||||||
Revenues: | |||||||||||
Revenues | $ 6,193 | $ 6,518 | $ 7,183 |
Significant Accounting Polici_5
Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Mar. 31, 2020 USD ($) | Sep. 30, 2021 ReportingUnit | Dec. 31, 2022 USD ($) Customer ReportingUnit Business Segment Manufacturer | Dec. 31, 2021 USD ($) Customer | Dec. 31, 2020 USD ($) Customer | Oct. 01, 2021 | Oct. 01, 2020 | |
Fair Value [Member] | Level 1 [Member] | Senior Unsecured Notes Due 2028 [Member] | |||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||
Senior unsecured notes, due year | 2028 | 2028 | |||||
Customer accounted for more than 10% of revenue | Customer | 0 | 0 | 0 | ||||
Bad debt expense as a percentage of total revenues | 0.30% | 0.20% | 0.40% | ||||
Payment terms | 30 days | ||||||
Salvage value | 25% | ||||||
Impairment loss related to property and equipment | $ 0 | $ 0 | $ 0 | ||||
Number of reporting units | ReportingUnit | 6 | 5 | |||||
Impairment of goodwill | 61,994,000 | ||||||
Changes in goodwill | 0 | ||||||
Amortization of intangible assets | $ 4,660,000 | 3,970,000 | 3,987,000 | ||||
Lessee operating lease option to extend | Lease terms include options to extend the lease when it is reasonably certain those options will be exercised. | ||||||
Lessee operating lease, existence of option to extend | true | ||||||
Workers' compensation, general liability and automobile liability | $ 9,100,000 | 7,800,000 | |||||
Health insurance reserves | 1,900,000 | 2,000,000 | |||||
Advertising costs | $ 1,000,000 | 1,100,000 | 200,000 | ||||
Recognized income tax provisions | 50% | ||||||
Transfer of financial assets | $ 0 | 0 | |||||
Transfer of financial liabilities | $ 0 | 0 | |||||
No. of manufacturers | Manufacturer | 5 | ||||||
Number of reportable segment | Segment | 5 | ||||||
Number of principal activities | Business | 5 | ||||||
ASU 2019-12 [Member] | |||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||
Change in accounting principle, accounting standards update, adopted | true | ||||||
Change in accounting principle, accounting standards update, adoption date | Jan. 01, 2021 | ||||||
Change in accounting principle, accounting standards update, immaterial effect | true | ||||||
Topic 326 [Member] | |||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||
Change in accounting principle, accounting standards update, adopted | true | ||||||
Change in accounting principle, accounting standards update, adoption date | Jan. 01, 2020 | ||||||
Change in accounting principle, accounting standards update, immaterial effect | true | ||||||
ASU 2018-13 [Member] | |||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||
Change in accounting principle, accounting standards update, adopted | true | ||||||
Change in accounting principle, accounting standards update, adoption date | Jan. 01, 2020 | ||||||
Change in accounting principle, accounting standards update, immaterial effect | true | ||||||
Manufacturer Flooring Plans Payable [Member] | |||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||
Debt instrument interest rate, minimum | 0% | ||||||
Debt instrument interest rate, maximum | 7.50% | ||||||
SG&A Expenses [Member] | |||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||
Amortization of intangible assets | $ 4,700,000 | $ 4,000,000 | $ 4,000,000 | ||||
Customer Relationships [Member] | |||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||
Estimated useful lives of acquired intangible assets | 10 years | ||||||
Noncompetition Agreements [Member] | |||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||
Estimated useful lives of acquired intangible assets | 1 year | ||||||
Leasehold Interests [Member] | |||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||
Estimated useful lives of acquired intangible assets | 10 years | ||||||
Equipment Rental Component 2 [Member] | |||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||
Impairment of goodwill | $ 55,700,000 | ||||||
Equipment Rental Component 1 [Member] | |||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||
Reporting units, percentage of fair value that exceeded respective carrying value | 34% | 44% | |||||
Equipment Rentals [Member] | |||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||
Reporting units, percentage of fair value that exceeded respective carrying value | 50% | ||||||
Used Equipment Sales [Member] | |||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||
Reporting units, percentage of fair value that exceeded respective carrying value | 90% | 98% | 90% | ||||
Parts Sales [Member] | |||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||
Reporting units, percentage of fair value that exceeded respective carrying value | 40% | 9% | 33% | ||||
Cranes and Aerial Work Platform [Member] | |||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||
Estimated useful life | 10 years | ||||||
Earthmoving Equipment [Member] | |||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||
Estimated useful life | 5 years | ||||||
Material Handling Equipment [Member] | |||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||
Estimated useful life | 7 years | ||||||
Attachments and Other Equipment [Member] | |||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||
Estimated useful life | 3 years | ||||||
Customer Concentration Risk [Member] | Revenues [Member] | Topic 842 [Member] | |||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||
Percentage of revenue/purchase | 77% | ||||||
Supplier Concentration Risk [Member] | Property, Plant and Equipment [Member] | Five Manufacturers [Member] | |||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||
Percentage of revenue/purchase | 50% | ||||||
Maximum [Member] | Customer Concentration Risk [Member] | Revenues [Member] | |||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||
Percentage of revenue/purchase | 2% | 2% | 2% | ||||
Minimum [Member] | |||||||
Summary Of Significant Accounting Policy [Line Items] | |||||||
Restricted common shares, percentage | 1% | 1% | 1% |
Significant Accounting Polici_6
Significant Accounting Policies - Estimated Useful Lives of Property Plant and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
Transportation Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 39 years |
Office Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Computer Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 7 years |
Significant Accounting Polici_7
Significant Accounting Policies - Schedule of Carrying Amount of Goodwill (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) | ||
Goodwill [Line Items] | ||
Balance at December 31, 2021 | $ 63,137 | [1] |
Increase | 39,553 | [2] |
Balance at December 31, 2022 | 102,690 | |
Equipment Rentals [Member] | ||
Goodwill [Line Items] | ||
Balance at December 31, 2021 | 48,976 | [1] |
Increase | 39,553 | [2] |
Balance at December 31, 2022 | 88,529 | |
Used Equipment Sales [Member] | ||
Goodwill [Line Items] | ||
Balance at December 31, 2021 | 8,447 | [1] |
Balance at December 31, 2022 | 8,447 | |
Parts Sales [Member] | ||
Goodwill [Line Items] | ||
Balance at December 31, 2021 | 5,714 | [1] |
Balance at December 31, 2022 | $ 5,714 | |
[1] The total carrying amount of goodwill as of December 31, 2022 and 2021 in the table above is reflected net of $ 92.7 million of accumulated impairment charges. Increase due to the OSR Acquisition. |
Significant Accounting Polici_8
Significant Accounting Policies - Schedule of Carrying Amount of Goodwill (Parenthetical) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | ||
Goodwill, net of accumulated impairment charges | $ 92.7 | $ 92.7 |
Significant Accounting Polici_9
Significant Accounting Policies - Schedule of Gross Carrying Values, Accumulated Amortization and Net Carrying Amounts of Major Classes of Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Finite Lived Intangible Assets [Line Items] | ||
Gross | $ 52,000 | $ 39,700 |
Accumulated amortization, intangible assets | 19,369 | 14,709 |
Net | 32,631 | 24,991 |
Customer Relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross | 50,100 | 39,500 |
Accumulated amortization, intangible assets | 18,844 | 14,629 |
Net | 31,256 | 24,871 |
Noncompetition Agreements [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross | 1,700 | |
Accumulated amortization, intangible assets | 425 | |
Net | 1,275 | |
Leasehold Interests [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross | 200 | 200 |
Accumulated amortization, intangible assets | 100 | 80 |
Net | $ 100 | $ 120 |
Significant Accounting Polic_10
Significant Accounting Policies - Schedule of Expected Amortization Expense of Intangible Assets with Remaining Carrying Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | ||
2023 | $ 6,305 | |
2024 | 5,030 | |
2025 | 5,030 | |
2026 | 5,030 | |
2027 | 5,030 | |
Thereafter | 6,206 | |
Net | $ 32,631 | $ 24,991 |
Significant Accounting Polic_11
Significant Accounting Policies - Estimated Incremental Borrowing Rates for Similar Types of Borrowing Arrangements (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Level 3 [Member] | Carrying Amount [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Manufacturer flooring plans payable with interest computed at 3.5% (Level 3) | $ 422 | $ 20,924 |
Level 3 [Member] | Fair Value [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Manufacturer flooring plans payable with interest computed at 3.5% (Level 3) | 392 | 19,533 |
Level 2 [Member] | Carrying Amount [Member] | Senior Unsecured Notes Due 2028 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior unsecured notes due 2028 with interest computed at 3.875% (Level 2) | 1,241,409 | 1,239,967 |
Level 2 [Member] | Fair Value [Member] | Senior Unsecured Notes Due 2028 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior unsecured notes due 2028 with interest computed at 3.875% (Level 2) | $ 1,070,088 | $ 1,242,850 |
Significant Accounting Polic_12
Significant Accounting Policies - Estimated Incremental Borrowing Rates for Similar Types of Borrowing Arrangements (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Level 3 [Member] | Carrying Amount [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Manufacturer flooring plans payable, interest rate | 7.75% | 3.50% |
Level 3 [Member] | Fair Value [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Manufacturer flooring plans payable, interest rate | 7.75% | 3.50% |
Level 2 [Member] | Carrying Amount [Member] | Senior Unsecured Notes Due 2028 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior unsecured notes, due year | 2028 | 2028 |
Senior unsecured notes, interest rate | 3.875% | 3.875% |
Level 2 [Member] | Fair Value [Member] | Senior Unsecured Notes Due 2028 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior unsecured notes, due year | 2028 | 2028 |
Senior unsecured notes, interest rate | 3.875% | 3.875% |
Significant Accounting Polic_13
Significant Accounting Policies - Summary of Computation of Basic and Diluted Net Income (Loss) Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||||||||||||
Earnings Per Share [Line Items] | |||||||||||||||||||||||
Net income (loss) from continuing operations | $ 51,152 | $ 38,376 | $ 27,870 | $ 16,296 | $ 21,730 | $ 24,728 | $ 12,251 | $ 1,855 | $ 133,694 | $ 60,564 | $ (46,396) | ||||||||||||
Net income from discontinued operations | (1,524) | 41,976 | 13,729 | ||||||||||||||||||||
Net income (loss) | $ 132,170 | $ 102,540 | $ (32,667) | ||||||||||||||||||||
Weighted average number of common shares outstanding: | |||||||||||||||||||||||
Basic | 35,943 | 36,261 | 36,067 | ||||||||||||||||||||
Diluted | 36,089 | 36,451 | 36,067 | ||||||||||||||||||||
Basic: | |||||||||||||||||||||||
Continuing operations | $ 1.42 | [1] | $ 1.05 | [1] | $ 0.77 | [1] | $ 0.45 | [1] | $ 0.60 | [1] | $ 0.68 | [1] | $ 0.34 | [1] | $ 0.05 | [1] | $ 3.72 | [2] | $ 1.67 | [2] | $ (1.29) | [2] | |
Discontinued operations | [2] | (0.04) | 1.16 | 0.38 | |||||||||||||||||||
Net income (loss) per share | [2] | 3.68 | 2.83 | (0.91) | |||||||||||||||||||
Diluted: | |||||||||||||||||||||||
Continuing operations | $ 1.41 | [1] | $ 1.05 | [1] | $ 0.76 | [1] | $ 0.45 | [1] | $ 0.59 | [1] | $ 0.68 | [1] | $ 0.34 | [1] | $ 0.05 | [1] | 3.70 | [2] | 1.66 | [2] | (1.29) | [2] | |
Discontinued operations | [2] | (0.04) | 1.15 | 0.38 | |||||||||||||||||||
Net income (loss) per share | [2] | $ 3.66 | $ 2.81 | $ (0.91) | |||||||||||||||||||
Non-vested restricted stock [Member] | |||||||||||||||||||||||
Weighted average number of common shares outstanding: | |||||||||||||||||||||||
Effect of dilutive non-vested restricted stock | 146 | 190 | |||||||||||||||||||||
Common shares excluded from the denominator as anti-dilutive: | |||||||||||||||||||||||
Non-vested restricted stock | [2] | 81 | 23 | 147 | |||||||||||||||||||
[1] Because of the method used in calculating per share data, the summation of quarterly per share data may not necessarily total to the per share data computed for the entire year due to rounding. Because of the method used in calculating per share data, the summations may not necessarily total to the per share data computed for the total company due to rounding. |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Additional Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 15, 2022 USD ($) | Oct. 01, 2022 USD ($) Branch | Sep. 17, 2021 USD ($) County Branch | Jul. 19, 2021 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |||
Business Acquisition [Line Items] | ||||||||||
Gain on sales of property and equipment, net | $ 16,836 | $ 7,797 | $ 10,966 | |||||||
Closing adjustments of discontinued operations | $ 1,900 | |||||||||
Goodwill | $ 102,690 | $ 63,137 | [1] | |||||||
One Source Equipment Rentals, Inc [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business acquisition, completion date | Oct. 01, 2022 | |||||||||
Business acquisition percentage of equity acquired | 100% | |||||||||
Number of branch locations | Branch | 10 | |||||||||
Aggregate consideration paid | $ 136,900 | |||||||||
Goodwill | [2] | 39,553 | ||||||||
Accrued purchase price consideration | 800 | |||||||||
Acquisition costs | $ 800 | |||||||||
Arkansas Sale [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Proceeds from sale of business | $ 9,000 | |||||||||
Gain on sales of property and equipment, net | 5,300 | |||||||||
Net book value | $ 3,700 | |||||||||
Number of branches sold | Branch | 2 | |||||||||
Crane Business [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Proceeds from sale of business | $ 130,000 | |||||||||
Proceeds from sale of business subject to finalization of adjustments | $ 135,900 | |||||||||
Sale of business, transaction closing date | Oct. 01, 2021 | |||||||||
Komatsu Earthmoving Distributorship [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Proceeds from sale of business | $ 29,200 | |||||||||
Net book value | 14,700 | |||||||||
Komatsu Earthmoving Distributorship [Member] | Sales from Property and Equipment, Net [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Gain on sales of property and equipment, net | 12,900 | |||||||||
Komatsu Earthmoving Distributorship [Member] | Other Income [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Gain on sales of property and equipment, net | $ 2,500 | |||||||||
Southeast Arkansas [Member] | Arkansas Sale [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Number of counties excluded in distribution territory | County | 5 | |||||||||
Minimum [Member] | Crane Business [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Period of transition of certain functions | 60 days | |||||||||
Maximum [Member] | Crane Business [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Period of transition of certain functions | 6 months | |||||||||
[1] The total carrying amount of goodwill as of December 31, 2022 and 2021 in the table above is reflected net of $ 92.7 million of accumulated impairment charges. The acquired goodwill has been allocated to the equipment rentals reporting unit. |
Acquisitions and Dispositions_2
Acquisitions and Dispositions - Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Oct. 01, 2022 | Dec. 31, 2021 | [1] | |
Business Acquisition [Line Items] | |||||
Goodwill | $ 102,690 | $ 63,137 | |||
One Source Equipment Rentals, Inc [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash | $ 337 | ||||
Accounts receivable | [2] | 11,163 | |||
Inventory | 521 | ||||
Prepaid expenses and other assets | 374 | ||||
Rental equipment | 102,436 | ||||
Property and equipment | 4,216 | ||||
Operating lease right-of-use assets | 2,388 | ||||
Intangible assets | [3] | 12,300 | |||
Total identifiable assets acquired | 133,735 | ||||
Accounts payable | (4,723) | ||||
Tax payable | 1,674 | ||||
Operating lease liabilities | (2,388) | ||||
Deferred income taxes | 27,653 | ||||
Total liabilities assumed | (36,438) | ||||
Net identifiable assets acquired | 97,297 | ||||
Goodwill | [4] | 39,553 | |||
Net assets acquired | $ 136,850 | ||||
[1] The total carrying amount of goodwill as of December 31, 2022 and 2021 in the table above is reflected net of $ 92.7 million of accumulated impairment charges. Includes an indemnification receivable of $ 0.7 million related to an unrecognized tax benefit. The following table reflects the estimated fair values and useful lives of the acquired intangible assets identified based on our purchase accounting assessments: Fair Value Life (years) Customer relationships $ 10,600 10 Noncompetition agreements 1,700 1 $ 12,300 The acquired goodwill has been allocated to the equipment rentals reporting unit. |
Acquisitions and Dispositions_3
Acquisitions and Dispositions - Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 01, 2022 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | ||
Indemnification receivable related to unrecognized tax benefit | $ 700 | |
One Source Equipment Rentals, Inc [Member] | ||
Business Acquisition [Line Items] | ||
Fair Value (amounts in thousands) | 12,300 | |
Customer Relationships [Member] | ||
Business Acquisition [Line Items] | ||
Life (years) | 10 years | |
Customer Relationships [Member] | One Source Equipment Rentals, Inc [Member] | ||
Business Acquisition [Line Items] | ||
Fair Value (amounts in thousands) | $ 10,600 | |
Life (years) | 10 years | |
Noncompetition Agreements [Member] | One Source Equipment Rentals, Inc [Member] | ||
Business Acquisition [Line Items] | ||
Fair Value (amounts in thousands) | $ 1,700 | |
Life (years) | 1 year |
Acquisitions and Dispositions_4
Acquisitions and Dispositions - Unaudited Pro Forma Financial Information (Details) - OSR [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | ||
Total revenues | $ 1,289,605 | $ 1,117,088 |
Net income | $ 140,864 | $ 41,474 |
Acquisitions and Dispositions_5
Acquisitions and Dispositions - Schedule of Income from Discontinued Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cost of revenues: | |||
Income (loss) before provision (benefit) for income taxes | $ (2,049) | $ 55,948 | $ 18,438 |
Provision (benefit) for income taxes | (525) | 13,972 | 4,709 |
Net income (loss) from discontinued operations | (1,524) | 41,976 | 13,729 |
Crane Business [Member] | |||
Revenues: | |||
Total revenues | 0 | 132,030 | 162,145 |
Cost of revenues: | |||
Total cost of revenues | 0 | 97,328 | 116,589 |
Gross profit | 0 | 34,702 | 45,556 |
Selling, general and administrative expenses | 132 | 20,937 | 23,370 |
Impairment of goodwill | 0 | 0 | 6,330 |
Gain on sales of property and equipment, net | 0 | 49 | 2,556 |
(Loss) gain on sale of discontinued operations | (1,917) | 42,072 | 0 |
Income (loss) from discontinued operations | (2,049) | 55,886 | 18,412 |
Other, net | 0 | 62 | 26 |
Income (loss) before provision (benefit) for income taxes | (2,049) | 55,948 | 18,438 |
Provision (benefit) for income taxes | (525) | 13,972 | 4,709 |
Net income (loss) from discontinued operations | (1,524) | 41,976 | 13,729 |
Crane Business [Member] | Equipment Rentals [Member] | |||
Revenues: | |||
Total revenues | 0 | 10,321 | 18,548 |
Cost of revenues: | |||
Total cost of revenues | 0 | 6,667 | 12,124 |
Crane Business [Member] | Equipment Rentals [Member] | Rental Depreciation [Member] | |||
Cost of revenues: | |||
Total cost of revenues | 0 | 3,720 | 8,385 |
Crane Business [Member] | Equipment Rentals [Member] | Rental Expense [Member] | |||
Cost of revenues: | |||
Total cost of revenues | 0 | 1,947 | 2,454 |
Crane Business [Member] | Equipment Rentals [Member] | Rentals Other [Member] | |||
Cost of revenues: | |||
Total cost of revenues | 0 | 1,000 | 1,285 |
Crane Business [Member] | Used Equipment Sales [Member] | |||
Revenues: | |||
Total revenues | 0 | 11,545 | 13,383 |
Cost of revenues: | |||
Total cost of revenues | 0 | 8,713 | 9,791 |
Crane Business [Member] | New Equipment Sales [Member] | |||
Revenues: | |||
Total revenues | 0 | 52,286 | 53,422 |
Cost of revenues: | |||
Total cost of revenues | 0 | 46,725 | 47,565 |
Crane Business [Member] | Parts Sales [Member] | |||
Revenues: | |||
Total revenues | 0 | 33,268 | 44,713 |
Cost of revenues: | |||
Total cost of revenues | 0 | 25,288 | 34,024 |
Crane Business [Member] | Services Revenues [Member] | |||
Revenues: | |||
Total revenues | 0 | 20,855 | 28,264 |
Cost of revenues: | |||
Total cost of revenues | 0 | 6,767 | 9,651 |
Crane Business [Member] | Other Revenues [Member] | |||
Revenues: | |||
Total revenues | 0 | 3,755 | 3,815 |
Cost of revenues: | |||
Total cost of revenues | $ 0 | $ 3,168 | $ 3,434 |
Acquisitions and Dispositions_6
Acquisitions and Dispositions - Schedule of Cash Flows from Discontinued Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating activities of discontinued operations: | |||
Loss (gain) on sale of discontinued operations | $ (1,917) | $ 42,072 | |
Crane Business [Member] | |||
Operating activities of discontinued operations: | |||
Depreciation and amortization of property and equipment | 0 | 1,083 | $ 2,264 |
Depreciation of rental equipment | 0 | 3,720 | 8,385 |
Loss (gain) on sale of discontinued operations | 1,917 | (42,072) | 0 |
Impairment of goodwill | 0 | 0 | 6,330 |
Gain from sales of property and equipment, net | 0 | (49) | (2,556) |
Gain from sales of rental equipment, net | 0 | (2,203) | (3,218) |
Investing activities of discontinued operations: | |||
Purchases of rental equipment | 0 | (2,431) | (8,655) |
Proceeds from sales of property and equipment | 0 | 43 | 4,895 |
Proceeds from sales of rental equipment | $ 0 | $ 5,929 | $ 8,679 |
Receivables - Summary of Receiv
Receivables - Summary of Receivables (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||
Trade receivables | $ 216,280 | $ 151,835 |
Unbilled rental revenue | 12,872 | 9,006 |
Income tax receivables | 2,577 | 541 |
Other | 202 | 22 |
Total receivables | 231,931 | 161,404 |
Less allowance for doubtful accounts | (6,637) | (4,178) |
Total receivables, net | $ 225,294 | $ 157,226 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory [Line Items] | ||
Total inventories, net | $ 107,842 | $ 75,299 |
Used Equipment Sales [Member] | ||
Inventory [Line Items] | ||
Total inventories, net | 12 | 179 |
New Equipment Sales [Member] | ||
Inventory [Line Items] | ||
Total inventories, net | 94,906 | 62,473 |
Parts, Supplies and Other [Member] | ||
Inventory [Line Items] | ||
Total inventories, net | $ 12,924 | $ 12,647 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Net of reserves for inventory obsolescence | $ 54 | $ 73 |
Property and Equipment - Summar
Property and Equipment - Summary of Net Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 311,654 | $ 274,194 |
Less accumulated depreciation and amortization | (177,017) | (161,913) |
Total net property and equipment | 134,637 | 112,281 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 6,852 | 6,533 |
Transportation Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 147,171 | 129,307 |
Building and Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 67,181 | 63,632 |
Office and Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 54,099 | 50,028 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 17,241 | 15,662 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 19,110 | $ 9,032 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization of property and equipment | $ 28.8 | $ 26.3 | $ 27.3 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Unrecognized compensation expense related to non-vested stock | $ 11 | ||
Expected non-vested stock recognized over a weighted-average period | 2 years | ||
SG&A Expenses [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Share compensation expense | $ 7.3 | $ 4.4 | $ 4.4 |
2016 Stock-Based Incentive Compensation Plan [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Stock-Based incentive compensation plan | 999,376 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Non-Vested Stock Activity (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | ||
Non-vested stock, beginning balance, Number of Shares | 480,147 | 524,876 |
Granted, Number of Shares | 281,490 | 202,687 |
Vested, Number of Shares | (160,868) | (186,042) |
Forfeited, Number of Shares | (40,313) | (61,374) |
Non-vested stock, ending balance, Number of Shares | 560,456 | 480,147 |
Non-vested stock, beginning balance, Weighted Average Grant Date Fair Value | $ 25.56 | $ 23 |
Granted, Weighted Average Grant Date Fair Value | 36.07 | 33.28 |
Vested, Weighted Average Grant Date Fair Value | 27.46 | 26.83 |
Forfeited, Weighted Average Grant Date Fair Value | 29.43 | 25.31 |
Non-vested stock, ending balance, Weighted Average Grant Date Fair Value | $ 30.02 | $ 25.56 |
Accrued Expenses Payable and _3
Accrued Expenses Payable and Other Liabilities - Accrued Expenses Payable and Other Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts Payable and Accrued Liabilities [Abstract] | ||
Payroll and related liabilities | $ 40,367 | $ 33,477 |
Sales, use and property taxes | 10,984 | 11,757 |
Accrued interest | 2,290 | 2,279 |
Accrued insurance | 7,641 | 6,995 |
Deferred revenue | 6,661 | 5,167 |
Other | 9,199 | 4,233 |
Total accrued expenses payable and other liabilities | $ 77,142 | $ 63,908 |
Senior Unsecured Notes - Additi
Senior Unsecured Notes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||||
Dec. 30, 2020 | Dec. 14, 2020 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||||
Estimated offering expenses | $ 758,000 | $ 1,458,000 | |||
One-time loss recorded on early extinguishment of debt | $ (44,630,000) | ||||
3.875% Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 1,250,000,000 | ||||
Senior unsecured notes, interest rate | 3.875% | ||||
Senior unsecured notes, maturity year | 2028 | ||||
Principal payments due until maturity | $ 0 | ||||
Maturity date of notes | Dec. 15, 2028 | ||||
Debt instrument, Payment terms | The New Notes were issued at par and require semiannual interest payments on June 15th and December 15th of each year, commencing on June 15, 2021. No principal payments are due until maturity (December 15, 2028). | ||||
Debt instrument, redemption description | The Company may redeem some or all of the New Notes at any time prior to December 15, 2023 by paying a “make-whole” premium, plus accrued and unpaid interest, if any, to the date of redemption. At any time prior to December 15, 2023, the Company may use the net proceeds of certain equity offerings to redeem up to 40% of the principal amount of the New Notes at a redemption price equal to 103.875% of their principal amount, plus accrued and unpaid interest, if any, to the redemption date; provided that at least 60% of the aggregate principal amount of such New Notes originally issued remains outstanding immediately following such redemption and such redemption occurs within 90 days of such equity offering. Subsequent to December 15, 2023, the New Notes may be redeemed pursuant to a declining schedule of redemption prices set forth in the Indenture. | ||||
Redemption price percentage as equal to principal amount of old notes to be redeemed | 101% | ||||
Estimated offering expenses | $ 11,400,000 | ||||
Net proceeds from sale of notes | 1,238,600,000 | ||||
Transaction costs incurred | $ 11,400,000 | ||||
3.875% Senior Notes [Member] | Before December 15, 2023 [Member] | |||||
Debt Instrument [Line Items] | |||||
Redemption price percentage as equal to principal amount of old notes to be redeemed | 103.875% | ||||
3.875% Senior Notes [Member] | Maximum [Member] | Before December 15, 2023 [Member] | |||||
Debt Instrument [Line Items] | |||||
Percentage of principal amount of new notes may be redeemed | 40% | ||||
3.875% Senior Notes [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Percentage of principal amount of new notes remains outstanding | 60% | ||||
5.625% Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior unsecured notes, interest rate | 5.625% | ||||
Senior unsecured notes, maturity year | 2025 | ||||
Redemption price percentage as equal to principal amount of old notes to be redeemed | 104.2188% | ||||
Repurchase of notes | $ 553,600,000 | ||||
Early tender deadline amount received on debt instrument | 1,043.75 | ||||
Principal amount of old notes | 1,000 | ||||
Remaining principal amount outstanding of old notes redeemed | $ 396,400,000 | ||||
One-time loss recorded on early extinguishment of debt | 44,600,000 | ||||
One-time loss recorded on early extinguishment of debt, after tax | 31,300,000 | ||||
Payment of tender premiums | 24,200,000 | ||||
Payment of premiums to redeem remaining outstanding old notes | 16,700,000 | ||||
Write-off of unamortized note discount | 7,200,000 | ||||
Write-off of unamortized note premium | 5,000,000 | ||||
Write-off of other financing costs | $ 1,500,000 |
Senior Unsecured Notes - Reconc
Senior Unsecured Notes - Reconciliation of Senior Unsecured Notes to Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
Senior unsecured notes, beginning balance | $ 1,239,967 | ||
Amortization of deferred financing costs | 970 | $ 971 | $ 1,004 |
Senior unsecured notes, ending balance | 1,241,409 | 1,239,967 | |
Senior Unsecured Notes [Member] | |||
Debt Instrument [Line Items] | |||
Senior unsecured notes, beginning balance | 1,239,967 | 1,238,660 | |
Senior unsecured notes, ending balance | 1,241,409 | 1,239,967 | $ 1,238,660 |
Senior Unsecured Notes [Member] | 3.875% Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Accretion of discount | 1,172 | 1,172 | |
Additional deferred financing costs | (135) | ||
Amortization of deferred financing costs | $ 270 | $ 270 |
Senior Secured Credit Facility
Senior Secured Credit Facility - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Feb. 01, 2019 | Dec. 22, 2017 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||||
Outstanding letters of credit | $ 10,600,000 | $ 8,700,000 | ||
Wells Fargo Capital Finance, LLC [Member] | Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Existing credit facility with its lenders | $ 750,000,000 | |||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Existing credit facility with its lenders | $ 750,000,000 | |||
Debt instrument maturity date description | extended the maturity date of the credit facility from December 22, 2022 to January 31, 2024 | extended the maturity date of the credit facility to December 22, 2022 | ||
Debt instrument maturity date | Jan. 31, 2024 | Dec. 22, 2022 | ||
Uncommitted incremental revolving capacity | $ 250,000,000 | |||
Outstanding letters of credit | $ 10,600,000 | |||
Available borrowings under our senior secured credit facility | 739,400,000 | |||
Line of credit | $ 0 | |||
Revolving Credit Facility [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Unused commitment fee margin percentage | 0.375% | |||
Revolving Credit Facility [Member] | Maximum [Member] | Letter of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Margin rate lowered in applicable to Letter of Credit | 2% | |||
Revolving Credit Facility [Member] | Maximum [Member] | Base Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Applicable margin Percentage | 0.75% | 1% | ||
Revolving Credit Facility [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Applicable margin Percentage | 1.75% | 2% | ||
Revolving Credit Facility [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Unused commitment fee margin percentage | 0.25% | |||
Revolving Credit Facility [Member] | Minimum [Member] | Letter of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Margin rate lowered in applicable to Letter of Credit | 1.50% | |||
Revolving Credit Facility [Member] | Minimum [Member] | Base Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Applicable margin Percentage | 0.25% | 0.50% | ||
Revolving Credit Facility [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Applicable margin Percentage | 1.25% | 1.50% | ||
Letter of Credit Sub-Facility, and Guaranty [Member] | ||||
Debt Instrument [Line Items] | ||||
Existing credit facility with its lenders | $ 30,000,000 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Weighted average remaining lease term for operating leases | 8 years | 8 years 8 months 12 days |
Weighted average remaining lease term for finance leases | 9 years 6 months | |
Weighted average discount rate for operating leases | 6.30% | 6.20% |
Weighted average discount rate for finance leases | 5% | |
Future minimum operating lease payments 2023 | $ 0.9 | |
Future minimum operating lease payments 2024 | 2.1 | |
Future minimum operating lease payments 2025 | 2.1 | |
Future minimum operating lease payments 2026 | 2.2 | |
Future minimum operating lease payments 2027 | 2.2 | |
Future minimum operating lease payments thereafter | $ 15.7 |
Leases - Summary of Lease Costs
Leases - Summary of Lease Costs, Under Topic 842, for Operating and Finance Leases (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Finance lease costs | |||
Amortization of leased assets | $ 105 | $ 122 | $ 162 |
Total lease cost | 27,072 | 24,145 | |
SG&A Expenses [Member] | |||
Lessee Lease Description [Line Items] | |||
Operating lease cost | 27,153 | 24,347 | |
Finance lease costs | |||
Amortization of leased assets | 107 | 122 | |
Variable lease cost | 1,834 | 1,046 | |
Interest Expense [Member] | |||
Finance lease costs | |||
Interest on lease liabilities | 52 | 9 | |
Other Income [Member] | |||
Finance lease costs | |||
Sublease income | $ (2,074) | $ (1,379) |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Cash Flow Information Related to Leases (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash paid for amounts included in the measurements of lease liabilities: | |||
Operating cash flows for operating leases | $ 26,407 | $ 23,527 | |
Operating cash flows for finance leases | 52 | 9 | |
Finance cash flows for finance leases | $ 1,141 | $ 194 | $ 245 |
Leases - Summary of Undiscounte
Leases - Summary of Undiscounted Cash Flows and Operating and Finance Lease Liabilities Recorded on Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Operating Leases | ||
2023 | $ 21,999 | |
2024 | 29,258 | |
2025 | 28,554 | |
2026 | 27,560 | |
2027 | 26,367 | |
Thereafter | 83,953 | |
Total minimum lease payments | 217,691 | |
Less: amount of lease payments representing interest | (48,622) | |
Present value of future minimum lease payments | 169,069 | $ 155,303 |
Finance Leases | ||
2023 | 184 | |
2024 | 190 | |
2025 | 197 | |
2026 | 204 | |
2027 | 211 | |
Thereafter | 1,030 | |
Total minimum lease payments | 2,016 | |
Less: amount of lease payments representing interest | (422) | |
Present value of future minimum lease payments | $ 1,594 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Significant Change In Unrecognized Tax Benefits Is Reasonably Possible [Line Items] | |||
Expect to realize reduction on cash taxes paid | $ 330,100 | ||
Deferral of payroll taxes | $ 2,794 | $ 1,522 | |
Statutory federal income tax rate | 21% | 21% | 21% |
General business credit carry forwards | $ 400 | ||
Expire in varying amounts for business credit carry forwards | 2036 to 2040 | ||
State income tax credits expiration date | 2023 | ||
State income tax credits carry forward | $ 8,300 | ||
Valuation allowance | 5,930 | $ 7,598 | |
Deferral of payroll taxes, remitted | 2,200 | $ 4,600 | |
One Source Equipment Rentals, Inc [Member] | |||
Significant Change In Unrecognized Tax Benefits Is Reasonably Possible [Line Items] | |||
Uncertain tax positions of interest and penalties | $ 100 | ||
CARES Act [Member] | |||
Significant Change In Unrecognized Tax Benefits Is Reasonably Possible [Line Items] | |||
Suspension of taxable income limitations to fully utilize net operating loss carryforwards to offset taxable income percentage | 80% | ||
Expect to realize reduction on cash taxes paid | $ 2,600 | ||
Federal tax refund | 1,500 | ||
Deferral of payroll taxes | $ 6,800 |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provision (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
U.S. Federal, Current | $ (761) | ||
U.S. Federal, Deferred | $ 37,680 | $ 16,513 | (9,362) |
U.S. Federal, Total | 37,680 | 16,513 | (10,123) |
State, Current | 4,306 | 2,574 | 471 |
State, Deferred | 5,050 | 2,073 | (3,776) |
State, Total | 9,356 | 4,647 | (3,305) |
Current, Total | 4,306 | 2,574 | (290) |
Deferred, Total | 42,730 | 18,586 | (13,138) |
Total | $ 47,036 | $ 21,160 | $ (13,428) |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Accounts receivable | $ 1,497 | $ 883 |
Inventories | 13 | 18 |
Net operating losses | 74,931 | 68,942 |
Tax Credits | 7,040 | 8,393 |
Sec 263A costs | 764 | 534 |
Accrued liabilities | 3,431 | 3,800 |
Deferred compensation | 2,794 | 1,522 |
Interest Expense | 12,238 | |
Stock-based compensation | 242 | 208 |
Goodwill and intangible assets | 7,842 | 9,669 |
Other assets | 86 | 74 |
Deferred tax assets, Total | 110,878 | 94,043 |
Valuation allowance | (5,930) | (7,598) |
Deferred tax assets, net of valuation allowance, Total | 104,948 | 86,445 |
Deferred tax liabilities: | ||
Property and equipment | (370,404) | (284,997) |
Investments | (1,109) | (1,094) |
Goodwill and intangible assets | (4,597) | (1,585) |
Deferred tax liabilities, Total | (376,110) | (287,676) |
Net deferred tax liabilities | $ (271,162) | $ (201,231) |
Income Taxes - Actual Income Ta
Income Taxes - Actual Income Tax Expense (benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Computed tax at statutory rates | $ 37,953 | $ 17,162 | $ (12,563) |
Permanent items – other | 1,683 | 406 | 1,241 |
Permanent items – excess of tax deductible goodwill | (1,473) | ||
Permanent items – impairment of goodwill | 2,008 | ||
State income tax, net of federal tax effect | 9,068 | 2,390 | (9,037) |
Change in valuation allowance | (1,668) | 1,202 | 6,396 |
Total | $ 47,036 | $ 21,160 | $ (13,428) |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation of Total Amounts of Gross Unrecognized Tax Benefits (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Income Tax Disclosure [Abstract] | |
Increases in tax positions taken in current years | $ 1,425 |
Gross unrecognized tax benefits at December 31 | $ 1,425 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Commitments And Contingencies Disclosure [Line Items] | ||
Outstanding letters of credit | $ 10.6 | $ 8.7 |
Letter of Credit [Member] | ||
Commitments And Contingencies Disclosure [Line Items] | ||
Expiration date of letter of credit | 2023-05 | |
Line of credit renewed terms | 1 year |
Employee Retirement Benefit P_2
Employee Retirement Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Amount of contributions in profit - sharing plan net of employee forfeitures | $ 4.6 | $ 4.4 | $ 3.7 |
Multiemployer pension plan expiration date | Oct. 31, 2025 | ||
Multiemployer pension plan contribution cost | $ 0.4 | $ 0.4 | $ 0.4 |
Multiemployer Plan, Pension, Significant, Surcharge [Fixed List] | No | No | No |
Multiemployer pension plan, certified zone status | Yellow | ||
Multiemployer pension plan, certified zone status date | Dec. 31, 2021 | ||
Red Zone [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Multiemployer pension plan, funded percentage | 65% | ||
Yellow Zone [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Multiemployer pension plan, funded percentage | 80% | ||
Green Zone [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Multiemployer pension plan, funded percentage | 80% | ||
Maximum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Multiemployer pension plan contribution percentage | 5% |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Perkins-McKenzie Insurance Agency Inc. [Member] | |||
Related Party Transaction [Line Items] | |||
Commissions paid | $ 1,100 | $ 900 | $ 1,000 |
John M. Engquist [Member] | Perkins-McKenzie Insurance Agency Inc. [Member] | |||
Related Party Transaction [Line Items] | |||
Percentage of ownership interest in equity | 48% | 48% | 48% |
John M. Engquist [Member] | B-C Equipment Sales Inc [Member] | |||
Related Party Transaction [Line Items] | |||
Percentage of ownership interest in equity | 50% | ||
Products and services purchased | $ 100 | $ 100 | |
Sales to related party | $ 100 | $ 200 | $ 200 |
John M. Engquist [Member] | B-C Equipment Sales Inc [Member] | Maximum [Member] | |||
Related Party Transaction [Line Items] | |||
Products and services purchased | $ 10 |
Summarized Quarterly Financia_3
Summarized Quarterly Financial Data (Unaudited) - Summary of Unaudited Quarterly Financial Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||
Total revenues | $ 353,117 | $ 324,280 | $ 294,671 | $ 272,450 | $ 281,252 | $ 275,436 | $ 265,677 | $ 240,432 | $ 1,244,518 | $ 1,062,797 | $ 1,006,975 | |||||||||||
Income from continuing operations | 78,806 | 63,994 | 50,666 | 34,688 | 41,603 | 45,662 | 29,734 | 15,321 | 228,154 | 132,320 | 43,412 | |||||||||||
Income from continuing operations before provision for income taxes | 69,221 | 51,329 | 38,059 | 22,121 | 29,279 | 32,847 | 17,059 | 2,539 | 180,730 | 81,724 | (59,824) | |||||||||||
Net income from continuing operations | $ 51,152 | $ 38,376 | $ 27,870 | $ 16,296 | $ 21,730 | $ 24,728 | $ 12,251 | $ 1,855 | $ 133,694 | $ 60,564 | $ (46,396) | |||||||||||
Basic net income from continuing operations per common share | $ 1.42 | [1] | $ 1.05 | [1] | $ 0.77 | [1] | $ 0.45 | [1] | $ 0.60 | [1] | $ 0.68 | [1] | $ 0.34 | [1] | $ 0.05 | [1] | $ 3.72 | [2] | $ 1.67 | [2] | $ (1.29) | [2] |
Diluted net income from continuing operations per common share | $ 1.41 | [1] | $ 1.05 | [1] | $ 0.76 | [1] | $ 0.45 | [1] | $ 0.59 | [1] | $ 0.68 | [1] | $ 0.34 | [1] | $ 0.05 | [1] | $ 3.70 | [2] | $ 1.66 | [2] | $ (1.29) | [2] |
[1] Because of the method used in calculating per share data, the summation of quarterly per share data may not necessarily total to the per share data computed for the entire year due to rounding. Because of the method used in calculating per share data, the summations may not necessarily total to the per share data computed for the total company due to rounding. |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2022 Segment Customer | Dec. 31, 2021 Customer | Dec. 31, 2020 Customer | |
Segment Reporting [Abstract] | |||
Number of reportable segment | Segment | 5 | ||
Sales to international customers | 0.30% | 0.30% | 0.30% |
Customer accounted for more than 10% of revenue | Customer | 0 | 0 | 0 |
Segment Information - Schedule
Segment Information - Schedule of Information about Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Revenues: | |||||||||||
Revenues | $ 353,117 | $ 324,280 | $ 294,671 | $ 272,450 | $ 281,252 | $ 275,436 | $ 265,677 | $ 240,432 | $ 1,244,518 | $ 1,062,797 | $ 1,006,975 |
Segment Gross Profit: | |||||||||||
Total gross profit | 555,163 | 415,363 | 357,063 | ||||||||
Segment identified assets: | |||||||||||
Total assets | 2,291,699 | 2,080,447 | 2,291,699 | 2,080,447 | |||||||
Equipment Rentals [Member] | |||||||||||
Segment Revenues: | |||||||||||
Revenues | 956,042 | 729,700 | 644,445 | ||||||||
New Equipment Sales [Member] | |||||||||||
Segment Revenues: | |||||||||||
Revenues | 92,526 | 92,677 | 113,708 | ||||||||
Used Equipment Sales [Member] | |||||||||||
Segment Revenues: | |||||||||||
Revenues | 90,885 | 135,245 | 139,769 | ||||||||
Parts Sales [Member] | |||||||||||
Segment Revenues: | |||||||||||
Revenues | 64,646 | 65,623 | 65,881 | ||||||||
Services Revenues [Member] | |||||||||||
Segment Revenues: | |||||||||||
Revenues | 34,226 | 33,034 | 35,989 | ||||||||
Operating Segments [Member] | |||||||||||
Segment Revenues: | |||||||||||
Revenues | 1,238,325 | 1,056,279 | 999,792 | ||||||||
Segment Gross Profit: | |||||||||||
Total gross profit | 557,688 | 415,480 | 356,899 | ||||||||
Segment identified assets: | |||||||||||
Total assets | 1,526,793 | 1,191,755 | 1,526,793 | 1,191,755 | |||||||
Operating Segments [Member] | Equipment Rentals [Member] | |||||||||||
Segment Revenues: | |||||||||||
Revenues | 956,042 | 729,700 | 644,445 | ||||||||
Segment Gross Profit: | |||||||||||
Total gross profit | 460,243 | 315,629 | 257,508 | ||||||||
Segment identified assets: | |||||||||||
Total assets | 1,418,951 | 1,116,456 | 1,418,951 | 1,116,456 | |||||||
Operating Segments [Member] | New Equipment Sales [Member] | |||||||||||
Segment Revenues: | |||||||||||
Revenues | 92,526 | 92,677 | 113,708 | ||||||||
Segment Gross Profit: | |||||||||||
Total gross profit | 13,096 | 11,855 | 12,207 | ||||||||
Operating Segments [Member] | Used Equipment Sales [Member] | |||||||||||
Segment Revenues: | |||||||||||
Revenues | 90,885 | 135,245 | 139,769 | ||||||||
Segment Gross Profit: | |||||||||||
Total gross profit | 44,316 | 48,922 | 44,970 | ||||||||
Segment identified assets: | |||||||||||
Total assets | 94,918 | 62,652 | 94,918 | 62,652 | |||||||
Operating Segments [Member] | Parts Sales [Member] | |||||||||||
Segment Revenues: | |||||||||||
Revenues | 64,646 | 65,623 | 65,881 | ||||||||
Segment Gross Profit: | |||||||||||
Total gross profit | 18,035 | 17,277 | 17,750 | ||||||||
Operating Segments [Member] | Services Revenues [Member] | |||||||||||
Segment Revenues: | |||||||||||
Revenues | 34,226 | 33,034 | 35,989 | ||||||||
Segment Gross Profit: | |||||||||||
Total gross profit | 21,998 | 21,797 | 24,464 | ||||||||
Operating Segments [Member] | Parts and Services [Member] | |||||||||||
Segment identified assets: | |||||||||||
Total assets | 12,924 | 12,647 | 12,924 | 12,647 | |||||||
Non-Segmented [Member] | |||||||||||
Segment Revenues: | |||||||||||
Revenues | 6,193 | 6,518 | 7,183 | ||||||||
Segment Gross Profit: | |||||||||||
Total gross profit | (2,525) | (117) | $ 164 | ||||||||
Segment identified assets: | |||||||||||
Total assets | $ 764,906 | $ 888,692 | $ 764,906 | $ 888,692 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Revolving Credit Facility [Member] | 12 Months Ended | |||
Feb. 02, 2023 | Feb. 01, 2019 | Dec. 22, 2017 | Dec. 31, 2022 | |
Subsequent Event [Line Items] | ||||
Debt instrument maturity date description | extended the maturity date of the credit facility from December 22, 2022 to January 31, 2024 | extended the maturity date of the credit facility to December 22, 2022 | ||
Debt instrument maturity date | Jan. 31, 2024 | Dec. 22, 2022 | ||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Debt instrument maturity date description | extended the maturity date of the credit facility to February 2, 2028 | |||
Debt instrument maturity date | Feb. 02, 2028 | |||
SOFR [Member] | Subsequent Event [Member] | Maximum [Member] | ||||
Subsequent Event [Line Items] | ||||
Applicable margin Percentage | 1.75% | |||
SOFR [Member] | Subsequent Event [Member] | Minimum [Member] | ||||
Subsequent Event [Line Items] | ||||
Applicable margin Percentage | 1.25% |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | $ 4,251 | $ 5,091 | $ 5,567 |
Additions Charged to Costs and Expenses | 3,296 | 1,946 | 4,145 |
Deductions | (856) | (2,786) | (4,621) |
Balance at End of Year | 6,691 | 4,251 | 5,091 |
Allowance for doubtful accounts receivable [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | 4,178 | 4,741 | 5,236 |
Additions Charged to Costs and Expenses | 3,264 | 1,892 | 4,018 |
Deductions | (805) | (2,455) | (4,513) |
Balance at End of Year | 6,637 | 4,178 | 4,741 |
Allowance for inventory obsolescence [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | 73 | 350 | 331 |
Additions Charged to Costs and Expenses | 32 | 54 | 127 |
Deductions | (51) | (331) | (108) |
Balance at End of Year | $ 54 | $ 73 | $ 350 |
Valuation and Qualifying Acco_3
Valuation and Qualifying Accounts (Parenthetical) (Details) $ in Thousands | Dec. 31, 2020 USD ($) |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Allowance for doubtful accounts receivables | $ 252 |
Allowance for inventory obsolescence | $ 120 |