McGrath RentCorp (MGRC) 10-Q 1 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 31, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
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		23,913,704

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenues
Rental	$ 67,757	$ 70,195	$ 201,036	$ 203,002
Rental related services	20,122	21,862	57,028	54,456
Rental operations	87,879	92,057	258,064	257,458
Sales	33,486	20,426	58,916	40,181
Other	628	565	1,817	1,623
Total revenues	121,993	113,048	318,797	299,262
Direct costs of rental operations:
Depreciation of rental equipment	17,819	18,809	54,590	56,507
Rental related services	15,240	15,802	42,404	40,602
Other	15,475	14,032	48,015	45,469
Total direct costs of rental operations	48,534	48,643	145,009	142,578
Costs of sales	23,026	14,259	38,944	26,533
Total costs of revenues	71,560	62,902	183,953	169,111
Gross profit	50,433	50,146	134,844	130,151
Selling and administrative expenses	26,201	24,996	78,281	74,661
Income from operations	24,232	25,150	56,563	55,490
Other income (expense):
Interest expense	(2,940)	(2,444)	(9,486)	(7,182)
Foreign currency exchange gain (loss)	(15)	(201)	59	(454)
Income before provision for income taxes	21,277	22,505	47,136	47,854
Provision for income taxes	8,405	8,889	18,619	18,902
Net income	$ 12,872	$ 13,616	$ 28,517	$ 28,952
Earnings per share:
Basic	$ 0.54	$ 0.54	$ 1.19	$ 1.12
Diluted	$ 0.54	$ 0.54	$ 1.19	$ 1.12
Shares used in per share calculation:
Basic	23,911	25,334	23,891	25,853
Diluted	24,041	25,408	23,957	25,954
Cash dividends declared per share	$ 0.255	$ 0.250	$ 0.765	$ 0.750

Condensed Consolidated Stateme3

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 12,872	$ 13,616	$ 28,517	$ 28,952
Other comprehensive income (loss):
Foreign currency translation adjustment	17	(31)	(69)	58
Tax benefit (provision)	(8)	7	24	(23)
Comprehensive income	$ 12,881	$ 13,592	$ 28,472	$ 28,987

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Assets
Cash	$ 1,092	$ 1,103
Accounts receivable, net of allowance for doubtful accounts of $2,087 in 2016 and 2015	104,004	95,263
Income taxes receivable		11,000
Rental equipment, at cost:
Relocatable modular buildings	763,777	736,875
Electronic test equipment	252,573	262,945
Liquid and solid containment tanks and boxes	308,852	310,263
Rental equipment, gross	1,325,202	1,310,083
Less accumulated depreciation	(462,674)	(440,482)
Rental equipment, net	862,528	869,601
Property, plant and equipment, net	113,497	109,753
Prepaid expenses and other assets	27,182	28,556
Intangible assets, net	8,812	9,465
Goodwill	27,808	27,808
Total assets	1,144,923	1,152,549
Liabilities:
Notes payable	345,286	381,281
Accounts payable and accrued liabilities	72,397	71,942
Deferred income	41,479	36,288
Deferred income taxes, net	295,161	283,351
Total liabilities	754,323	772,862
Shareholders’ equity:
Common stock, no par value - Authorized 40,000 shares Issued and outstanding - 23,914 shares as of September 30, 2016 and 23,851 shares as of December 31, 2015	101,828	101,046
Retained earnings	288,884	278,708
Accumulated other comprehensive loss	(112)	(67)
Total shareholders’ equity	390,600	379,687
Total liabilities and shareholders’ equity	$ 1,144,923	$ 1,152,549

Condensed Consolidated Balance5

Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Statement Of Financial Position [Abstract]
Allowance for doubtful accounts	$ 2,087	$ 2,087
Common stock, par value
Common stock, shares authorized	40,000,000	40,000,000
Common stock, shares issued	23,914,000	23,851,000
Common Stock, shares outstanding	23,914,000	23,851,000

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash Flows from Operating Activities:
Net income	$ 28,517	$ 28,952
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	61,528	63,303
Provision for doubtful accounts	1,366	1,179
Share-based compensation	2,327	2,863
Gain on sale of used rental equipment	(10,798)	(9,066)
Foreign currency exchange loss (gain)	(59)	454
Change in:
Accounts receivable	(10,107)	(7,445)
Income taxes receivable	11,000
Prepaid expenses and other assets	1,374	12,905
Accounts payable and accrued liabilities	4,082	(1,055)
Deferred income	5,191	11,033
Deferred income taxes	11,810	(2,519)
Net cash provided by operating activities	106,231	100,604
Cash Flows from Investing Activities:
Purchase of rental equipment	(64,349)	(104,884)
Purchase of property, plant and equipment	(10,028)	(8,045)
Proceeds from sale of used rental equipment	24,037	19,681
Net cash used in investing activities	(50,340)	(93,248)
Cash Flows from Financing Activities:
Net borrowing (repayments) under bank lines of credit	(16,034)	79,635
Principal payment on Series A senior notes	(20,000)	(20,000)
Amortization of debt issuance cost	39	39
Proceeds from the exercise of stock options	37	1,458
Excess tax benefit (shortfall) from exercise of stock awards	(993)	349
Taxes paid related to net share settlement of stock awards	(589)	(729)
Repurchase of common stock		(48,785)
Payment of dividends	(18,349)	(19,728)
Net cash used in financing activities	(55,889)	(7,761)
Effect of foreign currency exchange rate changes on cash	(13)	(5)
Net decrease in cash	(11)	(410)
Cash balance, beginning of period	1,103	1,167
Cash balance, end of period	1,092	757
Supplemental Disclosure of Cash Flow Information:
Interest paid, during the period	9,042	7,224
Net income taxes paid, during the period	7,751	2,240
Dividends accrued during the period, not yet paid	6,144	6,159
Rental equipment acquisitions, not yet paid	$ 3,688	$ 5,707

Condensed Consolidated Financia

Condensed Consolidated Financial Information	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Condensed Consolidated Financial Information	NOTE 1. CONDENSED CONSOLIDATED FINANCIAL INFORMATION The condensed consolidated financial statements for the three and nine months ended September 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 nine months ended September 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	9 Months Ended
	Sep. 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 guidance on its consolidated financial statements. 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) on 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, and tax deficiencies (shortfalls) to be recognized in equity to the extent of previously recognized windfalls. 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 adoption of this guidance is not expected to have a material impact on the Company’s financial position or results of operation. 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 principles 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 principles 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. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts. This update addresses eight specific cash flow issues with the objective of reducing the existing diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments in this guidance are effective for fiscal years beginning after December 15, 2018 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	9 Months Ended
	Sep. 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 September 30, Nine Months Ended September 30, (in thousands) 2016 2015 2016 2015 Weighted-average number of shares of common stock for calculating basic earnings per share 23,911 25,334 23,891 25,853 Effect of potentially dilutive securities from equity-based compensation 130 74 66 101 Weighted-average number of shares of common stock for calculating diluted earnings per share 24,041 25,408 23,957 25,954 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 September 30, Nine Months Ended September 30, (in thousands) 2016 2015 2016 2015 Options to purchase shares of common stock 636 1,326 998 746 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 nine months ended September 30, 2016 and 2015. Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except share and per share amounts) 2016 2015 2016 2015 Number of shares repurchased — 1,754,636 — 1,856,289 Aggregate purchase price $ — $ 45,653 $ — $ 48,784 Average price per repurchased shares $ — $ 26.02 $ — $ 26.28 As of September 30, 2016, 1,592,026 shares remain authorized for repurchase.

2016 Stock Incentive Plan

2016 Stock Incentive Plan	9 Months Ended
	Sep. 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 the 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 2007 Plan.

Intangible Assets

Intangible Assets	9 Months Ended
	Sep. 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 September 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 (6,499 ) (5,846 ) $ 8,812 $ 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 September 30, 2016 and assuming no subsequent impairment of the underlying assets, the amortization expense is expected to be $0.2 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	9 Months Ended
	Sep. 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 nine months ended September 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 Nine Months Ended September 30, 2016 Rental revenues $ 96,002 $ 61,562 $ 43,472 $ — $ 201,036 Rental related services revenues 37,034 2,156 17,838 — 57,028 Sales and other revenues 25,416 18,491 1,039 15,787 60,733 Total revenues 158,452 82,209 62,349 15,787 318,797 Depreciation of rental equipment 15,642 26,939 12,009 — 54,590 Gross profit 67,329 34,033 28,362 5,120 134,844 Selling and administrative expenses 38,162 16,444 20,786 2,889 78,281 Income from operations 29,167 17,589 7,576 2,231 56,563 Interest (expense) income allocation (5,264 ) (1,921 ) (2,487 ) 186 (9,486 ) Income before provision for income taxes 23,903 15,727 5,089 2,417 47,136 Rental equipment acquisitions 35,363 24,991 404 — 60,758 Accounts receivable, net (period end) 63,752 20,267 15,922 4,063 104,004 Rental equipment, at cost (period end) 763,777 252,573 308,852 — 1,325,202 Rental equipment, net book value (period end) 543,141 93,894 225,493 — 862,528 Utilization (period end) 2 77.6 % 62.4 % 52.1 % Average utilization 2 76.3 % 60.1 % 49.9 % 2015 Rental revenues $ 84,242 $ 66,612 $ 52,148 $ — $ 203,002 Rental related services revenues 33,904 2,271 18,281 — 54,456 Sales and other revenues 15,971 16,385 1,082 8,366 41,804 Total revenues 134,117 85,268 71,511 8,366 299,262 Depreciation of rental equipment 14,218 30,335 11,954 — 56,507 Gross profit 56,263 35,293 36,383 2,212 130,151 Selling and administrative expenses 34,436 17,059 20,755 2,411 74,661 Income (loss) from operations 21,827 18,234 15,628 (199 ) 55,490 Interest (expense) income allocation (3,790 ) (1,580 ) (1,953 ) 141 (7,182 ) Income (loss) before provision for income taxes 18,037 16,200 13,675 (58 ) 47,854 Rental equipment acquisitions 59,501 37,822 8,328 — 105,651 Accounts receivable, net (period end) 60,132 23,649 20,312 3,467 107,560 Rental equipment, at cost (period end) 717,892 266,034 309,779 — 1,293,705 Rental equipment, net book value (period end) 515,207 107,801 241,269 — 864,277 Utilization (period end) 2 77.9 % 60.5 % 57.0 % Average utilization 2 75.3 % 60.2 % 59.9 % 1. Gross Enviroplex sales revenues were $15,872 and $9,077 for the nine months ended September 30, 2016 and 2015, respectively, which include inter-segment sales to Mobile Modular of $85 and $711, 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 nine months ended September 30, 2016 and 2015. Revenues from foreign country customers accounted for 5% of the Company’s total revenues in each of the same periods.

New Accounting Pronouncements (

New Accounting Pronouncements (Policies)	9 Months Ended
	Sep. 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 guidance on its consolidated financial statements. 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) on 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, and tax deficiencies (shortfalls) to be recognized in equity to the extent of previously recognized windfalls. 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 adoption of this guidance is not expected to have a material impact on the Company’s financial position or results of operation. 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 principles 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 principles 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. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts. This update addresses eight specific cash flow issues with the objective of reducing the existing diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments in this guidance are effective for fiscal years beginning after December 15, 2018 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)	9 Months Ended
	Sep. 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 September 30, Nine Months Ended September 30, (in thousands) 2016 2015 2016 2015 Weighted-average number of shares of common stock for calculating basic earnings per share 23,911 25,334 23,891 25,853 Effect of potentially dilutive securities from equity-based compensation 130 74 66 101 Weighted-average number of shares of common stock for calculating diluted earnings per share 24,041 25,408 23,957 25,954
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 September 30, Nine Months Ended September 30, (in thousands) 2016 2015 2016 2015 Options to purchase shares of common stock 636 1,326 998 746
Summary of Share Repurchase Activities	The following table presents share repurchase activities during the three and nine months ended September 30, 2016 and 2015. Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except share and per share amounts) 2016 2015 2016 2015 Number of shares repurchased — 1,754,636 — 1,856,289 Aggregate purchase price $ — $ 45,653 $ — $ 48,784 Average price per repurchased shares $ — $ 26.02 $ — $ 26.28

Intangible Assets (Tables)

Intangible Assets (Tables)	9 Months Ended
	Sep. 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 September 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 (6,499 ) (5,846 ) $ 8,812 $ 9,465

Segment Reporting (Tables)

Segment Reporting (Tables)	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Summarized Financial Information for Company's Reportable Segments	Summarized financial information for the nine months ended September 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 Nine Months Ended September 30, 2016 Rental revenues $ 96,002 $ 61,562 $ 43,472 $ — $ 201,036 Rental related services revenues 37,034 2,156 17,838 — 57,028 Sales and other revenues 25,416 18,491 1,039 15,787 60,733 Total revenues 158,452 82,209 62,349 15,787 318,797 Depreciation of rental equipment 15,642 26,939 12,009 — 54,590 Gross profit 67,329 34,033 28,362 5,120 134,844 Selling and administrative expenses 38,162 16,444 20,786 2,889 78,281 Income from operations 29,167 17,589 7,576 2,231 56,563 Interest (expense) income allocation (5,264 ) (1,921 ) (2,487 ) 186 (9,486 ) Income before provision for income taxes 23,903 15,727 5,089 2,417 47,136 Rental equipment acquisitions 35,363 24,991 404 — 60,758 Accounts receivable, net (period end) 63,752 20,267 15,922 4,063 104,004 Rental equipment, at cost (period end) 763,777 252,573 308,852 — 1,325,202 Rental equipment, net book value (period end) 543,141 93,894 225,493 — 862,528 Utilization (period end) 2 77.6 % 62.4 % 52.1 % Average utilization 2 76.3 % 60.1 % 49.9 % 2015 Rental revenues $ 84,242 $ 66,612 $ 52,148 $ — $ 203,002 Rental related services revenues 33,904 2,271 18,281 — 54,456 Sales and other revenues 15,971 16,385 1,082 8,366 41,804 Total revenues 134,117 85,268 71,511 8,366 299,262 Depreciation of rental equipment 14,218 30,335 11,954 — 56,507 Gross profit 56,263 35,293 36,383 2,212 130,151 Selling and administrative expenses 34,436 17,059 20,755 2,411 74,661 Income (loss) from operations 21,827 18,234 15,628 (199 ) 55,490 Interest (expense) income allocation (3,790 ) (1,580 ) (1,953 ) 141 (7,182 ) Income (loss) before provision for income taxes 18,037 16,200 13,675 (58 ) 47,854 Rental equipment acquisitions 59,501 37,822 8,328 — 105,651 Accounts receivable, net (period end) 60,132 23,649 20,312 3,467 107,560 Rental equipment, at cost (period end) 717,892 266,034 309,779 — 1,293,705 Rental equipment, net book value (period end) 515,207 107,801 241,269 — 864,277 Utilization (period end) 2 77.9 % 60.5 % 57.0 % Average utilization 2 75.3 % 60.2 % 59.9 % 1. Gross Enviroplex sales revenues were $15,872 and $9,077 for the nine months ended September 30, 2016 and 2015, respectively, which include inter-segment sales to Mobile Modular of $85 and $711, 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 .

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		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Earnings Per Share [Abstract]
Weighted-average number of shares of common stock for calculating basic earnings per share	23,911	25,334	23,891	25,853
Effect of potentially dilutive securities from equity-based compensation	130	74	66	101
Weighted-average number of shares of common stock for calculating diluted earnings per share	24,041	25,408	23,957	25,954

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		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Earnings Per Share [Abstract]
Options to purchase shares of common stock	636	1,326	998	746

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Detail) - shares	Sep. 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	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2015
Equity [Abstract]
Number of shares repurchased	1,754,636	1,856,289
Aggregate purchase price	$ 45,653	$ 48,784
Average price per repurchased shares	$ 26.02	$ 26.28

2016 Stock Incentive Plan - Add

2016 Stock Incentive Plan - Additional Information (Detail) - Common Stock [Member] - 2016 Stock Incentive Plan [Member] - shares	9 Months Ended
	Sep. 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	9 Months Ended
	Sep. 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	(6,499)	(5,846)
Intangible Assets, net	$ 8,812	$ 9,465
Estimated useful life (In years), Customer relationships	11 years

Intangible Assets - Additional

Intangible Assets - Additional Information (Detail) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 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	200,000
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	9 Months Ended
	Sep. 30, 2016	Sep. 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%	5.00%

Segment Reporting - Summarized

Segment Reporting - Summarized Financial Information for Company's Reportable Segments (Detail) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Segment Reporting Information [Line Items]
Rental revenues		$ 67,757	$ 70,195	$ 201,036	$ 203,002
Rental related services revenues		20,122	21,862	57,028	54,456
Sales and other revenues				60,733	41,804
Total revenues		121,993	113,048	318,797	299,262
Depreciation of rental equipment		17,819	18,809	54,590	56,507
Gross profit		50,433	50,146	134,844	130,151
Selling and administrative expenses		26,201	24,996	78,281	74,661
Income (loss) from operations		24,232	25,150	56,563	55,490
Interest (expense) income allocation				(9,486)	(7,182)
Income (loss) before provision for income taxes		21,277	22,505	47,136	47,854
Rental equipment acquisitions				60,758	105,651
Accounts receivable, net (period end)		104,004	107,560	104,004	107,560	$ 95,263
Rental equipment, at cost (period end)		1,325,202	1,293,705	1,325,202	1,293,705	1,310,083
Rental equipment, net book value (period end)		862,528	864,277	862,528	864,277	$ 869,601
Mobile Modular [Member]
Segment Reporting Information [Line Items]
Rental revenues				96,002	84,242
Rental related services revenues				37,034	33,904
Sales and other revenues				25,416	15,971
Total revenues				158,452	134,117
Depreciation of rental equipment				15,642	14,218
Gross profit				67,329	56,263
Selling and administrative expenses				38,162	34,436
Income (loss) from operations				29,167	21,827
Interest (expense) income allocation				(5,264)	(3,790)
Income (loss) before provision for income taxes				23,903	18,037
Rental equipment acquisitions				35,363	59,501
Accounts receivable, net (period end)		63,752	60,132	63,752	60,132
Rental equipment, at cost (period end)		763,777	717,892	763,777	717,892
Rental equipment, net book value (period end)		543,141	515,207	$ 543,141	$ 515,207
Utilization (period end)	[1]			77.60%	77.90%
Average utilization	[1]			76.30%	75.30%
TRS-RenTelco [Member]
Segment Reporting Information [Line Items]
Rental revenues				$ 61,562	$ 66,612
Rental related services revenues				2,156	2,271
Sales and other revenues				18,491	16,385
Total revenues				82,209	85,268
Depreciation of rental equipment				26,939	30,335
Gross profit				34,033	35,293
Selling and administrative expenses				16,444	17,059
Income (loss) from operations				17,589	18,234
Interest (expense) income allocation				(1,921)	(1,580)
Income (loss) before provision for income taxes				15,727	16,200
Rental equipment acquisitions				24,991	37,822
Accounts receivable, net (period end)		20,267	23,649	20,267	23,649
Rental equipment, at cost (period end)		252,573	266,034	252,573	266,034
Rental equipment, net book value (period end)		93,894	107,801	$ 93,894	$ 107,801
Utilization (period end)	[1]			62.40%	60.50%
Average utilization	[1]			60.10%	60.20%
Adler Tanks [Member]
Segment Reporting Information [Line Items]
Rental revenues				$ 43,472	$ 52,148
Rental related services revenues				17,838	18,281
Sales and other revenues				1,039	1,082
Total revenues				62,349	71,511
Depreciation of rental equipment				12,009	11,954
Gross profit				28,362	36,383
Selling and administrative expenses				20,786	20,755
Income (loss) from operations				7,576	15,628
Interest (expense) income allocation				(2,487)	(1,953)
Income (loss) before provision for income taxes				5,089	13,675
Rental equipment acquisitions				404	8,328
Accounts receivable, net (period end)		15,922	20,312	15,922	20,312
Rental equipment, at cost (period end)		308,852	309,779	308,852	309,779
Rental equipment, net book value (period end)		225,493	241,269	$ 225,493	$ 241,269
Utilization (period end)	[1]			52.10%	57.00%
Average utilization	[1]			49.90%	59.90%
Enviroplex [Member]
Segment Reporting Information [Line Items]
Sales and other revenues	[2]			$ 15,787	$ 8,366
Total revenues	[2]			15,787	8,366
Gross profit	[2]			5,120	2,212
Selling and administrative expenses	[2]			2,889	2,411
Income (loss) from operations	[2]			2,231	(199)
Interest (expense) income allocation	[2]			186	141
Income (loss) before provision for income taxes	[2]			2,417	(58)
Accounts receivable, net (period end)	[2]	$ 4,063	$ 3,467	$ 4,063	$ 3,467
[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 $15,872 and $9,077 for the nine months ended September 30, 2016 and 2015, respectively, which include inter-segment sales to Mobile Modular of $85 and $711, respectively, which have been eliminated in consolidation.

Segment Reporting - Summarize26

Segment Reporting - Summarized Financial Information for Company's Reportable Segments (Parenthetical) (Detail) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Segment Reporting Information [Line Items]
Revenues		$ 121,993	$ 113,048	$ 318,797	$ 299,262
Enviroplex [Member]
Segment Reporting Information [Line Items]
Revenues	[1]			15,787	8,366
Mobile Modular [Member]
Segment Reporting Information [Line Items]
Revenues				158,452	134,117
Operating Segments [Member] | Enviroplex [Member]
Segment Reporting Information [Line Items]
Revenues				15,872	9,077
Inter-segment Eliminations [Member] | Mobile Modular [Member]
Segment Reporting Information [Line Items]
Sales revenues				$ 85	$ 711
[1]	Gross Enviroplex sales revenues were $15,872 and $9,077 for the nine months ended September 30, 2016 and 2015, respectively, which include inter-segment sales to Mobile Modular of $85 and $711, respectively, which have been eliminated in consolidation.