McGrath RentCorp (MGRC) 10-Q 2 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 01, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Trading Symbol	MGRC
Entity Registrant Name	MCGRATH RENTCORP
Entity Central Index Key	752,714
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		23,907,760

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenues
Rental	$ 66,747	$ 67,305	$ 133,279	$ 132,807
Rental related services	19,315	17,227	36,906	32,594
Rental operations	86,062	84,532	170,185	165,401
Sales	16,396	10,968	25,430	19,755
Other	647	526	1,189	1,058
Total revenues	103,105	96,026	196,804	186,214
Direct costs of rental operations:
Depreciation of rental equipment	18,231	19,016	36,771	37,698
Rental related services	13,984	12,901	27,164	24,800
Other	16,713	16,226	32,540	31,437
Total direct costs of rental operations	48,928	48,143	96,475	93,935
Costs of sales	10,421	6,965	15,918	12,274
Total costs of revenues	59,349	55,108	112,393	106,209
Gross profit	43,756	40,918	84,411	80,005
Selling and administrative expenses	25,683	24,453	52,080	49,665
Income from operations	18,073	16,465	32,331	30,340
Other income (expense):
Interest expense	(2,990)	(2,347)	(6,546)	(4,738)
Foreign currency exchange gain (loss)	(77)	(85)	74	(253)
Income before provision for income taxes	15,006	14,033	25,859	25,349
Provision for income taxes	5,927	5,543	10,214	10,013
Net income	$ 9,079	$ 8,490	$ 15,645	$ 15,336
Earnings per share:
Basic	$ 0.38	$ 0.33	$ 0.66	$ 0.59
Diluted	$ 0.38	$ 0.32	$ 0.65	$ 0.58
Shares used in per share calculation:
Basic	23,900	26,142	23,881	26,117
Diluted	23,949	26,273	23,931	26,272
Cash dividends declared per share	$ 0.255	$ 0.250	$ 0.510	$ 0.500

Condensed Consolidated Stateme3

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 9,079	$ 8,490	$ 15,645	$ 15,336
Other comprehensive income (loss):
Foreign currency translation adjustment	5	6	(87)	89
Tax benefit (provision)	(1)		33	(16)
Comprehensive income	$ 9,083	$ 8,496	$ 15,591	$ 15,409

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Assets
Cash	$ 1,238	$ 1,103
Accounts receivable, net of allowance for doubtful accounts of $2,087 in 2016 and 2015	95,860	95,263
Income taxes receivable		11,000
Rental equipment, at cost:
Relocatable modular buildings	761,125	736,875
Electronic test equipment	251,080	262,945
Liquid and solid containment tanks and boxes	310,089	310,263
Rental equipment, gross	1,322,294	1,310,083
Less accumulated depreciation	(453,872)	(440,482)
Rental equipment, net	868,422	869,601
Property, plant and equipment, net	114,241	109,753
Prepaid expenses and other assets	31,419	28,556
Intangible assets, net	9,030	9,465
Goodwill	27,808	27,808
Total assets	1,148,018	1,152,549
Liabilities:
Notes payable	363,121	381,281
Accounts payable and accrued liabilities	73,779	71,942
Deferred income	38,349	36,288
Deferred income taxes, net	289,456	283,351
Total liabilities	764,705	772,862
Shareholders’ equity:
Common stock, no par value - Authorized 40,000 shares Issued and outstanding - 23,907 shares as of June 30, 2016 and 23,851 shares as of December 31, 2015	101,313	101,046
Retained earnings	282,121	278,708
Accumulated other comprehensive loss	(121)	(67)
Total shareholders’ equity	383,313	379,687
Total liabilities and shareholders’ equity	$ 1,148,018	$ 1,152,549

Condensed Consolidated Balance5

Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Statement Of Financial Position [Abstract]
Allowance for doubtful accounts	$ 2,087	$ 2,087
Common stock, par value	$ 0	$ 0
Common stock, shares authorized	40,000,000	40,000,000
Common stock, shares issued	23,907,000	23,851,000
Common Stock, shares outstanding	23,907,000	23,851,000

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash Flows from Operating Activities :
Net income	$ 15,645	$ 15,336
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	41,417	42,171
Provision for doubtful accounts	987	690
Share-based compensation	1,586	1,953
Gain on sale of used rental equipment	(6,282)	(5,565)
Foreign currency exchange loss (gain)	(74)	253
Change in:
Accounts receivable	(1,584)	6,630
Income taxes receivable	11,000
Prepaid expenses and other assets	(2,863)	7,981
Accounts payable and accrued liabilities	5,232	1,715
Deferred income	2,061	587
Deferred income taxes	6,105	(6,514)
Net cash provided by operating activities	73,230	65,237
Cash Flows from Investing Activities:
Purchase of rental equipment	(45,715)	(71,237)
Purchase of property, plant and equipment	(8,698)	(5,832)
Proceeds from sale of used rental equipment	13,059	11,815
Net cash used in investing activities	(41,354)	(65,254)
Cash Flows from Financing Activities:
Net borrowings under bank lines of credit	1,814	34,699
Principal payments on Series A senior notes	(20,000)	(20,000)
Amortization of debt issuance costs	26	26
Proceeds from the exercise of stock options	37	1,458
Excess tax benefit (shortfall) from exercise of stock awards	(871)	313
Taxes paid related to net share settlement of stock awards	(486)	(584)
Repurchase of common stock		(3,132)
Payment of dividends	(12,253)	(13,176)
Net cash used in financing activities	(31,733)	(396)
Effect of exchange rate changes on cash	(8)	(15)
Net increase (decrease) in cash	135	(428)
Cash balance, beginning of period	1,103	1,167
Cash balance, end of period	1,238	739
Supplemental Disclosure of Cash Flow Information:
Interest paid, during the period	6,646	4,896
Net income taxes paid, during the period	5,679	1,490
Dividends accrued during the period, not yet paid	6,135	6,588
Rental equipment acquisitions, not yet paid	$ 3,935	$ 8,390

Condensed Consolidated Financia

Condensed Consolidated Financial Information	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Condensed Consolidated Financial Information	NOTE 1. CONDENSED CONSOLIDATED FINANCIAL INFORMATION The condensed consolidated financial statements for the three and six months ended June 30, 2016 and 2015 have not been audited, but in the opinion of management, all adjustments (consisting of normal recurring accruals, consolidating and eliminating entries) necessary for the fair presentation of the consolidated financial position, results of operations and cash flows of McGrath RentCorp (the “Company”) have been made. The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and note disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to those rules and regulations. The consolidated results for the six months ended June 30, 2016 should not be considered as necessarily indicative of the consolidated results for the entire fiscal year. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s latest Annual Report on Form 10-K filed with the SEC on February 25, 2016 for the year ended December 31, 2015 (the “2015 Annual Report”).

New Accounting Pronouncements

New Accounting Pronouncements	6 Months Ended
	Jun. 30, 2016
Accounting Changes And Error Corrections [Abstract]
New Accounting Pronouncements	NOTE 2. NEW ACCOUNTING PRONOUNCEMENTS In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers. The objective of this guidance is to establish the principles to report useful information to users of financial statements about the nature, timing and uncertainty of revenue from contracts with customers. In August 2015, the FASB issued an update to defer the effective date of this guidance by one year. The guidance in the update is effective for the interim and annual reporting periods beginning after December 15, 2017. The Company is evaluating the impact of the adoption of this accounting guidance on its consolidated financial statements. In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-03, Imputation of Interest (Subtopic 835-30). The amendments in this update require that debt issuance costs related to a recognized debt liability be presented on the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with the presentation of debt discounts. The implementation of this update resulted in a reclassification of $0.2 million of debt issuance costs from prepaid expenses and other assets to notes payable at December 31, 2015. In February 2016, the FASB issued ASU No. 2016-02, Leases (Subtopic 842-10). Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: a) lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718). Under the new guidance, all excess tax benefits and tax deficiencies will be recognized in the income statement as they occur. This will replace the current guidance, which requires tax benefits that exceed compensation cost (windfalls) to be recognized in equity. It will also eliminate the need to maintain a “windfall pool,” and will remove the requirement to delay recognizing a windfall until it reduces current taxes payable. The new guidance will also change the cash flow presentation of excess tax benefits, classifying them as operating inflows, consistent with other cash flows related to income taxes. The amendments in this guidance are effective for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years. The Company is evaluating the impact of the adoption of this new guidance on its consolidated financial statements. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contract with Customers (Topic 606): Identifying Performance Obligations and Licensing. The amendments clarify the following two aspects of Topic 606: (a) identifying performance obligations; and (b) the licensing implementation guidance. The amendments do not change the core principle of the guidance in Topic 606. The amendments are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company is evaluating the impact of the adoption of this guidance on its consolidated financial statements. In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contract with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedient. The amendments do not change the core revenue recognition principle in Topic 606. The amendments provide clarifying guidance in certain narrow areas and add some practical expedient. The amendments are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company is evaluating the impact of the adoption of this guidance on its consolidated financial statements.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Earnings Per Share	NOTE 3. EARNINGS PER SHARE Basic earnings per share (“EPS”) is computed as net income divided by the weighted-average number of shares of common stock outstanding for the period. Diluted EPS is computed assuming conversion of all potentially dilutive securities including the dilutive effect of stock options, unvested restricted stock awards and other potentially dilutive securities. The table below presents the weighted-average number of shares of common stock used to calculate basic and diluted earnings per share: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2016 2015 2016 2015 Weighted-average number of shares of common stock for calculating basic earnings per share 23,900 26,142 23,881 26,117 Effect of potentially dilutive securities from equity-based compensation 49 131 50 155 Weighted-average number of shares of common stock for calculating diluted earnings per share 23,949 26,273 23,931 26,272 The following securities were not included in the computation of diluted earnings per share as their effect would have been anti-dilutive: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2016 2015 2016 2015 Options to purchase shares of common stock 989 650 989 215 In May 2008, the Company’s Board of Directors authorized the Company to repurchase an aggregate of 2,000,000 shares of the Company's outstanding common stock. The Company has in the past made purchases of shares of its common stock from time to time in over-the-counter market (NASDAQ) transactions, through privately negotiated, large block transactions and through a share repurchase plan, in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934. In August 2015, the Company’s Board of Directors authorized the Company to repurchase an additional 2,000,000 shares of the Company's outstanding common stock. The amount and time of the specific repurchases are subject to prevailing market conditions, applicable legal requirements and other factors, including management’s discretion. All shares repurchased by the Company are canceled and returned to the status of authorized but unissued shares of common stock. There can be no assurance that any shares authorized for repurchase will be repurchased and the repurchase program may be modified, extended or terminated by the Board of Directors at any time. The following table presents share repurchase activities during the three and six months ended June 30, 2016 and 2015. Three Months Ended June 30, Six Months Ended June 30, (in thousands, except share and per share amounts) 2016 2015 2016 2015 Number of shares repurchased — 89 — 102 Aggregate purchase price $ — $ 2,754 $ — $ 3,132 Average price per repurchased shares $ — $ 30.79 $ — $ 30.81 As of June 30, 2016, 1,592,026 shares remain authorized for repurchase.

2016 Stock Incentive Plan

2016 Stock Incentive Plan	6 Months Ended
	Jun. 30, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
2016 Stock Incentive Plan	NOTE 4. 2016 STOCK INCENTIVE PLAN The Company adopted the 2016 Stock Incentive Plan (the “2016 Plan”), effective June 8, 2016, under which 2,000,000 shares of common stock of the Company, plus the number of shares that remain available for grants of awards under the Company's 2007 Stock Option Plan (the “2007 Plan”) and become available as a result of forfeiture, termination, or expiration of awards previously granted under the 2007 Plan, were reserved for the grant of equity awards to its employees, directors and consultants. The equity awards have a maximum term of 7 years at an exercise price of not less than 100% of the fair market value of the Company's common stock on the date the equity award is granted. The 2016 Plan replaces the Company’s 2007 Plan.

Intangible Assets

Intangible Assets	6 Months Ended
	Jun. 30, 2016
Goodwill And Intangible Assets Disclosure [Abstract]
Intangible Assets	NOTE 5. INTANGIBLE ASSETS Intangible assets consist of the following: (dollar amounts in thousands) Estimated useful life in years June 30, 2016 December 31, 2015 Trade name Indefinite $ 5,700 $ 5,700 Customer relationships 11 9,611 9,611 15,311 15,311 Less accumulated amortization (6,281 ) (5,846 ) $ 9,030 $ 9,465 The Company assesses potential impairment of its goodwill and intangible assets when there is evidence that events or circumstances have occurred that would indicate the recovery of an asset’s carrying value is unlikely. The Company also assesses potential impairment of its goodwill and intangible assets on an annual basis regardless of whether there is evidence of impairment. If indicators of impairment were to be present in intangible assets used in operations and future discounted cash flows were not expected to be sufficient to recover the assets’ carrying amount, an impairment loss would be charged to expense in the period identified. The amount of an impairment loss that would be recognized is the excess of the asset’s carrying value over its fair value. Factors the Company considers important, which may cause impairment include, among others, significant changes in the manner of use of the acquired asset, negative industry or economic trends, and significant underperformance relative to historical or projected operating results. The Company typically conducts its annual impairment analysis in the fourth quarter of its fiscal year. The impairment analysis did not result in an impairment charge for the fiscal year ended December 31, 2015. Determining the fair value of a reporting unit is judgmental and involves the use of significant estimates and assumptions. The Company bases its fair value estimates on assumptions that it believes are reasonable but are uncertain and subject to changes in market conditions. Intangible assets with finite useful lives are amortized over their respective useful lives. Based on the carrying values at June 30, 2016 and assuming no subsequent impairment of the underlying assets, the amortization expense is expected to be $0.5 million for the remainder of fiscal year 2016, $0.9 million in each of the fiscal years 2017 through 2019 and $0.2 million in 2020.

Segment Reporting

Segment Reporting	6 Months Ended
	Jun. 30, 2016
Segment Reporting [Abstract]
Segment Reporting	NOTE 6. SEGMENT REPORTING The Company’s four reportable segments are (1) its modular building and portable storage segment (“Mobile Modular”); (2) its electronic test equipment segment (“TRS-RenTelco”); (3) its containment solutions for the storage of hazardous and non-hazardous liquids and solids segment (“Adler Tanks”); and (4) its classroom manufacturing segment selling modular buildings used primarily as classrooms in California (“Enviroplex”). The operations of each of these segments are described in Part I – Item 1, “Business,” and the accounting policies of the segments are described in “Note 2 – Significant Accounting Policies” in the Company’s annual report on Form 10-K for the year ended December 31, 2015. Management focuses on several key measures to evaluate and assess each segment’s performance, including rental revenue growth, gross profit, income from operations and income before provision for income taxes. Excluding interest expense, allocations of revenue and expense not directly associated with one of these segments are generally allocated to Mobile Modular, TRS-RenTelco and Adler Tanks based on their pro-rata share of direct revenues. Interest expense is allocated among Mobile Modular, TRS-RenTelco and Adler Tanks based on their pro-rata share of average rental equipment at cost, intangible assets, accounts receivable, deferred income and customer security deposits. The Company does not report total assets by business segment. Summarized financial information for the six months ended June 30, 2016 and 2015 for the Company’s reportable segments is shown in the following table: (dollar amounts in thousands) Mobile Modular TRS- RenTelco Adler Tanks Enviroplex 1 Consolidated Six Months Ended June 30, 2016 Rental revenues $ 62,792 $ 41,197 $ 29,290 $ — $ 133,279 Rental related services revenues 23,337 1,501 12,068 — 36,906 Sales and other revenues 8,634 13,194 644 4,147 26,619 Total revenues 94,763 55,892 42,002 4,147 196,804 Depreciation of rental equipment 10,347 18,386 8,038 — 36,771 Gross profit 41,287 22,558 19,077 1,489 84,411 Selling and administrative expenses 24,798 11,343 14,155 1,784 52,080 Income (loss) from operations 16,489 11,215 4,922 (295 ) 32,331 Interest (expense) income allocation (3,602 ) (1,340 ) (1,719 ) 115 (6,546 ) Income (loss) before provision for income taxes 12,887 9,949 3,203 (180 ) 25,859 Rental equipment acquisitions 26,448 15,373 550 — 42,371 Accounts receivable, net (period end) 52,362 23,098 15,757 4,643 95,860 Rental equipment, at cost (period end) 761,125 251,080 310,089 1,322,294 Rental equipment, net book value (period end) 544,132 94,320 229,970 868,422 Utilization (period end) 2 75.7 % 59.7 % 46.8 % Average utilization 2 76.0 % 59.5 % 49.7 % 2015 Rental revenues $ 54,088 $ 44,000 $ 34,719 $ — $ 132,807 Rental related services revenues 19,591 1,450 11,553 — 32,594 Sales and other revenues 7,325 10,545 742 2,201 20,813 Total revenues 81,004 55,995 47,014 2,201 186,214 Depreciation of rental equipment 9,280 20,477 7,941 — 37,698 Gross profit 32,266 22,751 24,380 608 80,005 Selling and administrative expenses 22,642 11,611 13,819 1,593 49,665 Income (loss) from operations 9,624 11,140 10,561 (985 ) 30,340 Interest (expense) income allocation (2,481 ) (1,053 ) (1,297 ) 93 (4,738 ) Income (loss) before provision for income taxes 7,143 9,834 9,264 (892 ) 25,349 Rental equipment acquisitions 38,691 30,077 5,919 — 74,687 Accounts receivable, net (period end) 46,913 23,547 20,310 3,204 93,974 Rental equipment, at cost (period end) 699,781 269,668 307,795 1,277,244 Rental equipment, net book value (period end) 501,071 112,275 243,143 856,489 Utilization (period end) 2 74.3 % 60.3 % 61.7 % Average utilization 2 74.3 % 59.8 % 60.9 % 1. Gross Enviroplex sales revenues were $4,147 and $2,208 for the six months ended June 30, 2016 and 2015, respectively, which include inter-segment sales to Mobile Modular of $0 and $7, respectively, which have been eliminated in consolidation. 2. Utilization is calculated each month by dividing the cost of rental equipment on rent by the total cost of rental equipment excluding accessory equipment and for Mobile Modular and Adler Tanks excluding new equipment inventory. The Average Utilization for the period is calculated using the average costs of rental equipment . No single customer accounted for more than 10% of total revenues for the six months ended June 30, 2016 and 2015. Revenues from foreign country customers accounted for 5% and 6% of the Company’s total revenues for the same periods, respectively.

New Accounting Pronouncements (

New Accounting Pronouncements (Policies)	6 Months Ended
	Jun. 30, 2016
Accounting Changes And Error Corrections [Abstract]
New Accounting Pronouncements	In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers. The objective of this guidance is to establish the principles to report useful information to users of financial statements about the nature, timing and uncertainty of revenue from contracts with customers. In August 2015, the FASB issued an update to defer the effective date of this guidance by one year. The guidance in the update is effective for the interim and annual reporting periods beginning after December 15, 2017. The Company is evaluating the impact of the adoption of this accounting guidance on its consolidated financial statements. In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-03, Imputation of Interest (Subtopic 835-30). The amendments in this update require that debt issuance costs related to a recognized debt liability be presented on the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with the presentation of debt discounts. The implementation of this update resulted in a reclassification of $0.2 million of debt issuance costs from prepaid expenses and other assets to notes payable at December 31, 2015. In February 2016, the FASB issued ASU No. 2016-02, Leases (Subtopic 842-10). Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: a) lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718). Under the new guidance, all excess tax benefits and tax deficiencies will be recognized in the income statement as they occur. This will replace the current guidance, which requires tax benefits that exceed compensation cost (windfalls) to be recognized in equity. It will also eliminate the need to maintain a “windfall pool,” and will remove the requirement to delay recognizing a windfall until it reduces current taxes payable. The new guidance will also change the cash flow presentation of excess tax benefits, classifying them as operating inflows, consistent with other cash flows related to income taxes. The amendments in this guidance are effective for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years. The Company is evaluating the impact of the adoption of this new guidance on its consolidated financial statements. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contract with Customers (Topic 606): Identifying Performance Obligations and Licensing. The amendments clarify the following two aspects of Topic 606: (a) identifying performance obligations; and (b) the licensing implementation guidance. The amendments do not change the core principle of the guidance in Topic 606. The amendments are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company is evaluating the impact of the adoption of this guidance on its consolidated financial statements. In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contract with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedient. The amendments do not change the core revenue recognition principle in Topic 606. The amendments provide clarifying guidance in certain narrow areas and add some practical expedient. The amendments are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company is evaluating the impact of the adoption of this guidance on its consolidated financial statements.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Weighted-Average Number of Shares of Common Stock Used to Calculate Basic and Diluted Earnings Per Share	The table below presents the weighted-average number of shares of common stock used to calculate basic and diluted earnings per share: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2016 2015 2016 2015 Weighted-average number of shares of common stock for calculating basic earnings per share 23,900 26,142 23,881 26,117 Effect of potentially dilutive securities from equity-based compensation 49 131 50 155 Weighted-average number of shares of common stock for calculating diluted earnings per share 23,949 26,273 23,931 26,272
Securities Not Included in Computation of Diluted Earnings Per Share	The following securities were not included in the computation of diluted earnings per share as their effect would have been anti-dilutive: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2016 2015 2016 2015 Options to purchase shares of common stock 989 650 989 215
Summary of Share Repurchase Activities	The following table presents share repurchase activities during the three and six months ended June 30, 2016 and 2015. Three Months Ended June 30, Six Months Ended June 30, (in thousands, except share and per share amounts) 2016 2015 2016 2015 Number of shares repurchased — 89 — 102 Aggregate purchase price $ — $ 2,754 $ — $ 3,132 Average price per repurchased shares $ — $ 30.79 $ — $ 30.81

Intangible Assets (Tables)

Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2016
Goodwill And Intangible Assets Disclosure [Abstract]
Summary of Intangible Assets	Intangible assets consist of the following: (dollar amounts in thousands) Estimated useful life in years June 30, 2016 December 31, 2015 Trade name Indefinite $ 5,700 $ 5,700 Customer relationships 11 9,611 9,611 15,311 15,311 Less accumulated amortization (6,281 ) (5,846 ) $ 9,030 $ 9,465

Segment Reporting (Tables)

Segment Reporting (Tables)	6 Months Ended
	Jun. 30, 2016
Segment Reporting [Abstract]
Summarized Financial Information for Company's Reportable Segments	Summarized financial information for the six months ended June 30, 2016 and 2015 for the Company’s reportable segments is shown in the following table: (dollar amounts in thousands) Mobile Modular TRS- RenTelco Adler Tanks Enviroplex 1 Consolidated Six Months Ended June 30, 2016 Rental revenues $ 62,792 $ 41,197 $ 29,290 $ — $ 133,279 Rental related services revenues 23,337 1,501 12,068 — 36,906 Sales and other revenues 8,634 13,194 644 4,147 26,619 Total revenues 94,763 55,892 42,002 4,147 196,804 Depreciation of rental equipment 10,347 18,386 8,038 — 36,771 Gross profit 41,287 22,558 19,077 1,489 84,411 Selling and administrative expenses 24,798 11,343 14,155 1,784 52,080 Income (loss) from operations 16,489 11,215 4,922 (295 ) 32,331 Interest (expense) income allocation (3,602 ) (1,340 ) (1,719 ) 115 (6,546 ) Income (loss) before provision for income taxes 12,887 9,949 3,203 (180 ) 25,859 Rental equipment acquisitions 26,448 15,373 550 — 42,371 Accounts receivable, net (period end) 52,362 23,098 15,757 4,643 95,860 Rental equipment, at cost (period end) 761,125 251,080 310,089 1,322,294 Rental equipment, net book value (period end) 544,132 94,320 229,970 868,422 Utilization (period end) 2 75.7 % 59.7 % 46.8 % Average utilization 2 76.0 % 59.5 % 49.7 % 2015 Rental revenues $ 54,088 $ 44,000 $ 34,719 $ — $ 132,807 Rental related services revenues 19,591 1,450 11,553 — 32,594 Sales and other revenues 7,325 10,545 742 2,201 20,813 Total revenues 81,004 55,995 47,014 2,201 186,214 Depreciation of rental equipment 9,280 20,477 7,941 — 37,698 Gross profit 32,266 22,751 24,380 608 80,005 Selling and administrative expenses 22,642 11,611 13,819 1,593 49,665 Income (loss) from operations 9,624 11,140 10,561 (985 ) 30,340 Interest (expense) income allocation (2,481 ) (1,053 ) (1,297 ) 93 (4,738 ) Income (loss) before provision for income taxes 7,143 9,834 9,264 (892 ) 25,349 Rental equipment acquisitions 38,691 30,077 5,919 — 74,687 Accounts receivable, net (period end) 46,913 23,547 20,310 3,204 93,974 Rental equipment, at cost (period end) 699,781 269,668 307,795 1,277,244 Rental equipment, net book value (period end) 501,071 112,275 243,143 856,489 Utilization (period end) 2 74.3 % 60.3 % 61.7 % Average utilization 2 74.3 % 59.8 % 60.9 % 1. Gross Enviroplex sales revenues were $4,147 and $2,208 for the six months ended June 30, 2016 and 2015, respectively, which include inter-segment sales to Mobile Modular of $0 and $7, respectively, which have been eliminated in consolidation. 2. Utilization is calculated each month by dividing the cost of rental equipment on rent by the total cost of rental equipment excluding accessory equipment and for Mobile Modular and Adler Tanks excluding new equipment inventory. The Average Utilization for the period is calculated using the average costs of rental equipment .

New Accounting Pronouncements -

New Accounting Pronouncements - Additional Information (Detail) $ in Millions	Dec. 31, 2015USD ($)
Accounting Standards Update No. 2015-03 [Member]
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Reclassification of debt issuance costs from prepaid expenses and other assets to notes payable	$ 0.2

Earnings Per Share - Weighted-A

Earnings Per Share - Weighted-Average Number of Shares of Common Stock Used to Calculate Basic and Diluted Earnings Per Share (Detail) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Earnings Per Share [Abstract]
Weighted-average number of shares of common stock for calculating basic earnings per share	23,900	26,142	23,881	26,117
Effect of potentially dilutive securities from equity-based compensation	49	131	50	155
Weighted-average number of shares of common stock for calculating diluted earnings per share	23,949	26,273	23,931	26,272

Earnings Per Share - Securities

Earnings Per Share - Securities Not Included in Computation of Diluted Earnings Per Share (Detail) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Earnings Per Share [Abstract]
Options to purchase shares of common stock	989	650	989	215

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Detail) - shares	Jun. 30, 2016	Aug. 31, 2015	May 31, 2008
Equity [Abstract]
Common stock shares authorized for repurchase		2,000,000	2,000,000
Shares remain authorized for repurchase	1,592,026

Earnings Per Share - Summary of

Earnings Per Share - Summary of Share Repurchase Activities (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2015
Equity [Abstract]
Number of shares repurchased	89	102
Aggregate purchase price	$ 2,754	$ 3,132
Average price per repurchased shares	$ 30.79	$ 30.81

2016 Stock Incentive Plan - Add

2016 Stock Incentive Plan - Additional Information (Detail) - Common Stock [Member] - 2016 Stock Incentive Plan [Member] - shares	6 Months Ended
	Jun. 30, 2016	Jun. 08, 2016
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares of common stock remained available for grants of awards		2,000,000
Maximum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Term of award (in years)	7 years
Minimum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Rate of exercise price for equity award granted	100.00%

Intangible Assets - Summary of

Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Goodwill And Intangible Assets Disclosure [Abstract]
Trade name	$ 5,700	$ 5,700
Customer relationships	9,611	9,611
Intangible Assets, gross	15,311	15,311
Less accumulated amortization	(6,281)	(5,846)
Intangible Assets, net	$ 9,030	$ 9,465
Estimated useful life (In years), Customer relationships	11 years

Intangible Assets - Additional

Intangible Assets - Additional Information (Detail) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Goodwill And Intangible Assets Disclosure [Abstract]
Impairment charge		$ 0
Subsequent impairment of the underlying assets	$ 0
Expected amortization expense for the remainder of 2016	500,000
Expected amortization expense for 2017	900,000
Expected amortization expense for 2018	900,000
Expected amortization expense for 2019	900,000
Expected amortization expense for 2020	$ 200,000

Segment Reporting - Additional

Segment Reporting - Additional Information (Detail) - Segment	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Segment Reporting Information [Line Items]
Number of reportable segments	4
Customer Concentration Risk [Member] | Sales [Member]
Segment Reporting Information [Line Items]
Revenues from customers	10.00%	10.00%
Geographic Concentration Risk [Member] | Sales [Member] | Foreign Country Customers [Member]
Segment Reporting Information [Line Items]
Revenues from customers	5.00%	6.00%

Segment Reporting - Summarized

Segment Reporting - Summarized Financial Information for Company's Reportable Segments (Detail) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Segment Reporting Information [Line Items]
Rental revenues		$ 66,747	$ 67,305	$ 133,279	$ 132,807
Rental related services revenues		19,315	17,227	36,906	32,594
Sales and other revenues				26,619	20,813
Total revenues		103,105	96,026	196,804	186,214
Depreciation of rental equipment		18,231	19,016	36,771	37,698
Gross profit		43,756	40,918	84,411	80,005
Selling and administrative expenses		25,683	24,453	52,080	49,665
Income (loss) from operations		18,073	16,465	32,331	30,340
Interest (expense) income allocation				(6,546)	(4,738)
Income (loss) before provision for income taxes		15,006	14,033	25,859	25,349
Rental equipment acquisitions				42,371	74,687
Accounts receivable, net (period end)		95,860	93,974	95,860	93,974	$ 95,263
Rental equipment, at cost (period end)		1,322,294	1,277,244	1,322,294	1,277,244	1,310,083
Rental equipment, net book value (period end)		868,422	856,489	868,422	856,489	$ 869,601
Mobile Modular [Member]
Segment Reporting Information [Line Items]
Rental revenues				62,792	54,088
Rental related services revenues				23,337	19,591
Sales and other revenues				8,634	7,325
Total revenues				94,763	81,004
Depreciation of rental equipment				10,347	9,280
Gross profit				41,287	32,266
Selling and administrative expenses				24,798	22,642
Income (loss) from operations				16,489	9,624
Interest (expense) income allocation				(3,602)	(2,481)
Income (loss) before provision for income taxes				12,887	7,143
Rental equipment acquisitions				26,448	38,691
Accounts receivable, net (period end)		52,362	46,913	52,362	46,913
Rental equipment, at cost (period end)		761,125	699,781	761,125	699,781
Rental equipment, net book value (period end)		544,132	501,071	$ 544,132	$ 501,071
Utilization (period end)	[1]			75.70%	74.30%
Average utilization	[1]			76.00%	74.30%
TRS-RenTelco [Member]
Segment Reporting Information [Line Items]
Rental revenues				$ 41,197	$ 44,000
Rental related services revenues				1,501	1,450
Sales and other revenues				13,194	10,545
Total revenues				55,892	55,995
Depreciation of rental equipment				18,386	20,477
Gross profit				22,558	22,751
Selling and administrative expenses				11,343	11,611
Income (loss) from operations				11,215	11,140
Interest (expense) income allocation				(1,340)	(1,053)
Income (loss) before provision for income taxes				9,949	9,834
Rental equipment acquisitions				15,373	30,077
Accounts receivable, net (period end)		23,098	23,547	23,098	23,547
Rental equipment, at cost (period end)		251,080	269,668	251,080	269,668
Rental equipment, net book value (period end)		94,320	112,275	$ 94,320	$ 112,275
Utilization (period end)	[1]			59.70%	60.30%
Average utilization	[1]			59.50%	59.80%
Adler Tanks [Member]
Segment Reporting Information [Line Items]
Rental revenues				$ 29,290	$ 34,719
Rental related services revenues				12,068	11,553
Sales and other revenues				644	742
Total revenues				42,002	47,014
Depreciation of rental equipment				8,038	7,941
Gross profit				19,077	24,380
Selling and administrative expenses				14,155	13,819
Income (loss) from operations				4,922	10,561
Interest (expense) income allocation				(1,719)	(1,297)
Income (loss) before provision for income taxes				3,203	9,264
Rental equipment acquisitions				550	5,919
Accounts receivable, net (period end)		15,757	20,310	15,757	20,310
Rental equipment, at cost (period end)		310,089	307,795	310,089	307,795
Rental equipment, net book value (period end)		229,970	243,143	$ 229,970	$ 243,143
Utilization (period end)	[1]			46.80%	61.70%
Average utilization	[1]			49.70%	60.90%
Enviroplex [Member]
Segment Reporting Information [Line Items]
Sales and other revenues	[2]			$ 4,147	$ 2,201
Total revenues	[2]			4,147	2,201
Gross profit	[2]			1,489	608
Selling and administrative expenses	[2]			1,784	1,593
Income (loss) from operations	[2]			(295)	(985)
Interest (expense) income allocation	[2]			115	93
Income (loss) before provision for income taxes	[2]			(180)	(892)
Accounts receivable, net (period end)	[2]	$ 4,643	$ 3,204	$ 4,643	$ 3,204
[1]	Utilization is calculated each month by dividing the cost of rental equipment on rent by the total cost of rental equipment excluding accessory equipment and for Mobile Modular and Adler Tanks excluding new equipment inventory. The Average Utilization for the period is calculated using the average costs of rental equipment.
[2]	Gross Enviroplex sales revenues were $4,147 and $2,208 for the six months ended June 30, 2016 and 2015, respectively, which include inter-segment sales to Mobile Modular of $0 and $7, respectively, which have been eliminated in consolidation.

Segment Reporting - Summarize27

Segment Reporting - Summarized Financial Information for Company's Reportable Segments (Parenthetical) (Detail) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Segment Reporting Information [Line Items]
Revenues		$ 103,105	$ 96,026	$ 196,804	$ 186,214
Enviroplex [Member]
Segment Reporting Information [Line Items]
Revenues	[1]			4,147	2,201
Mobile Modular [Member]
Segment Reporting Information [Line Items]
Revenues				94,763	81,004
Operating Segments [Member] | Enviroplex [Member]
Segment Reporting Information [Line Items]
Revenues				4,147	2,208
Inter-segment Eliminations [Member] | Mobile Modular [Member]
Segment Reporting Information [Line Items]
Sales revenues				$ 0	$ 7
[1]	Gross Enviroplex sales revenues were $4,147 and $2,208 for the six months ended June 30, 2016 and 2015, respectively, which include inter-segment sales to Mobile Modular of $0 and $7, respectively, which have been eliminated in consolidation.