McGrath RentCorp (MGRC) 10-Q 31 Oct 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Oct. 30, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2,017
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		24,032,112

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenues
Rental	$ 73,781	$ 67,757	$ 211,712	$ 201,036
Rental related services	21,856	20,122	58,587	57,028
Rental operations	95,637	87,879	270,299	258,064
Sales	38,684	33,486	67,166	58,916
Other	1,067	628	2,342	1,817
Total revenues	135,388	121,993	339,807	318,797
Direct costs of rental operations:
Depreciation of rental equipment	17,492	17,819	52,113	54,590
Rental related services	16,611	16,026	44,756	44,428
Other	15,396	14,689	46,794	45,991
Total direct costs of rental operations	49,499	48,534	143,663	145,009
Costs of sales	27,114	23,026	44,488	38,944
Total costs of revenues	76,613	71,560	188,151	183,953
Gross profit	58,775	50,433	151,656	134,844
Selling and administrative expenses	28,489	26,201	83,702	78,281
Income from operations	30,286	24,232	67,954	56,563
Other income (expense):
Interest expense	(2,986)	(2,940)	(8,724)	(9,486)
Foreign currency exchange gain (loss)	36	(15)	273	59
Income before provision for income taxes	27,336	21,277	59,503	47,136
Provision for income taxes	10,574	8,405	23,307	18,619
Net income	$ 16,762	$ 12,872	$ 36,196	$ 28,517
Earnings per share:
Basic	$ 0.70	$ 0.54	$ 1.51	$ 1.19
Diluted	$ 0.69	$ 0.54	$ 1.50	$ 1.19
Shares used in per share calculation:
Basic	24,015	23,911	23,984	23,891
Diluted	24,228	24,041	24,201	23,957
Cash dividends declared per share	$ 0.260	$ 0.255	$ 0.780	$ 0.765

Condensed Consolidated Stateme3

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 16,762	$ 12,872	$ 36,196	$ 28,517
Other comprehensive income (loss):
Foreign currency translation adjustment	(11)	17	(119)	(69)
Tax benefit (provision)	7	(8)	43	24
Comprehensive income	$ 16,758	$ 12,881	$ 36,120	$ 28,472

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Assets
Cash	$ 1,369	$ 852
Accounts receivable, net of allowance for doubtful accounts of $1,987 in 2017 and $2,087 in 2016	107,413	96,877
Rental equipment, at cost:
Relocatable modular buildings	781,791	769,190
Electronic test equipment	258,877	246,325
Liquid and solid containment tanks and boxes	309,825	308,542
Rental equipment, gross	1,350,493	1,324,057
Less accumulated depreciation	(484,769)	(467,686)
Rental equipment, net	865,724	856,371
Property, plant and equipment, net	119,315	112,190
Prepaid expenses and other assets	26,844	25,583
Intangible assets, net	7,942	8,595
Goodwill	27,808	27,808
Total assets	1,156,415	1,128,276
Liabilities:
Notes payable	323,117	326,266
Accounts payable and accrued liabilities	81,765	78,205
Deferred income	42,188	37,499
Deferred income taxes, net	296,563	292,019
Total liabilities	743,633	733,989
Shareholders’ equity:
Common stock, no par value - Authorized 40,000 shares Issued and outstanding - 24,032 shares as of September 30, 2017 and 23,948 shares as of December 31, 2016	102,703	101,821
Retained earnings	310,210	292,521
Accumulated other comprehensive loss	(131)	(55)
Total shareholders’ equity	412,782	394,287
Total liabilities and shareholders’ equity	$ 1,156,415	$ 1,128,276

Condensed Consolidated Balance5

Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Statement Of Financial Position [Abstract]
Allowance for doubtful accounts	$ 1,987	$ 2,087
Common stock, par value
Common stock, shares authorized	40,000,000	40,000,000
Common stock, shares issued	24,032,000	23,948,000
Common Stock, shares outstanding	24,032,000	23,948,000

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash Flows from Operating Activities:
Net income	$ 36,196	$ 28,517
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	58,425	61,528
Provision for doubtful accounts	1,155	1,366
Share-based compensation	2,245	2,327
Gain on sale of used rental equipment	(13,006)	(10,798)
Foreign currency exchange gain	(273)	(59)
Amortization of debt issuance costs	38	39
Change in:
Accounts receivable	(11,691)	(10,107)
Income taxes receivable		11,000
Prepaid expenses and other assets	(1,261)	1,374
Accounts payable and accrued liabilities	80	3,089
Deferred income	4,689	5,191
Deferred income taxes	4,544	11,810
Net cash provided by operating activities	81,141	105,277
Cash Flows from Investing Activities:
Purchases of rental equipment	(73,193)	(64,349)
Purchases of property, plant and equipment	(12,784)	(10,028)
Proceeds from sales of used rental equipment	28,478	24,037
Net cash used in investing activities	(57,499)	(50,340)
Cash Flows from Financing Activities:
Net borrowings (repayments) under bank lines of credit	16,813	(16,034)
Principal payments on Series A senior notes	(20,000)	(20,000)
Proceeds from the exercise of stock options		37
Taxes paid related to net share settlement of stock awards	(1,363)	(589)
Payment of dividends	(18,628)	(18,349)
Net cash used in financing activities	(23,178)	(54,935)
Effect of foreign currency exchange rate changes on cash	53	(13)
Net increase (decrease) in cash	517	(11)
Cash balance, beginning of period	852	1,103
Cash balance, end of period	1,369	1,092
Supplemental Disclosure of Cash Flow Information:
Interest paid, during the period	8,563	9,042
Net income taxes paid, during the period	23,510	7,751
Dividends accrued during the period, not yet paid	5,979	6,144
Rental equipment acquisitions, not yet paid	$ 6,622	$ 3,688

Condensed Consolidated Financia

Condensed Consolidated Financial Information	9 Months Ended
	Sep. 30, 2017
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, 2017 and 2016 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, 2017 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 28, 2017 for the year ended December 31, 2016 (the “2016 Annual Report”). In order to conform to our current year presentation, certain amounts were reclassified from other to rental related services within the direct costs of rental operations on the Condensed Consolidated Statements of Income. These reclassifications had no impact on net income, earnings per share or operating cash flows.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	9 Months Ended
	Sep. 30, 2017
Accounting Changes And Error Corrections [Abstract]
Recent Accounting Pronouncements	NOTE 2. RECENT 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 for reporting useful information to users of financial statements about the nature, timing and uncertainty of revenue from contracts with customers. The FASB has continued to issue ASUs to clarify and provide implementation guidance related to Revenue from Contracts with Customers, including ASU 2016-08, Revenue from Contract with Customers: Principal versus Agent Considerations, ASU 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing, ASU 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients and ASU 2016-20, Revenue from Contracts with Customers: Technical Correction and Improvements. These amendments address a number of areas, including the entity’s identification of its performance obligations in a contract, collectability, non-cash consideration, presentation of sales tax and an entity’s evaluation of the nature of its promise to grant a license of intellectual property and whether or not that revenue is recognized over time or at a point in time. These standards are effective for the interim and annual reporting periods beginning after December 31, 2017. The new standard permits two methods of adoption: retrospectively to each prior period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (modified retrospective method). While the Company is still evaluating the potential impact of this guidance, including the method of adoption, the Company believes the majority of its revenue, as such revenue relates to rental contractual revenue, is excluded from the scope of this standard, and the remaining revenue streams will not be materially affected. The Company’s Enviroplex division currently recognizes the sale of its manufactured modular buildings to customers following the completed contract method which, under the new guidance, may change to occur over time. The Company currently does not anticipate the adoption of this guidance will have a material impact on the Company’s 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 b) right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. The amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. While the Company is still evaluating the potential impact of this guidance, as a lessor, the Company does not believe the accounting for operating lease revenues will be materially affected by this standard. The Company anticipates its lessee accounting to increase its total assets and liabilities; however, the Company is currently evaluating the magnitude of the impact the adoption of this guidance will have on the Company’s consolidated financial statements. During the first quarter 2017, the Company adopted ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting (ASU 2016-09). As a result of the adoption, the Company recognized $360,000 and $494,000 of excess tax benefits related to share-based payments as a reduction to the provision for income taxes for the three and nine months ended September 30, 2017, respectively. These tax benefits, or shortfalls, were historically recorded in equity. In addition, cash flows related to excess tax benefits, or shortfalls, are now classified as an operating activity with the prior period adjusted accordingly. Cash paid on employees’ behalf related to shares withheld for tax purposes is classified as a financing activity, consistent with prior year’s presentation. Retrospective application of the cash flow presentation requirements resulted in decreases to both net cash provided by operations and net cash used in financing activities of $993,000 for the nine months ended September 30, 2016. The Company’s compensation expense for each period continues to reflect forfeitures as they occur, rather than based upon estimated expected forfeitures. In May 2017, the FASB issued ASU No. 2017-09, Compensation, Stock Compensation (Topic 718). The amendments in this update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. t

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2017
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) 2017 2016 2017 2016 Weighted-average number of shares of common stock for calculating basic earnings per share 24,015 23,911 23,984 23,891 Effect of potentially dilutive securities from equity-based compensation 213 130 217 66 Weighted-average number of shares of common stock for calculating diluted earnings per share 24,228 24,041 24,201 23,957 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) 2017 2016 2017 2016 Options to purchase shares of common stock 14 636 14 998

Intangible Assets

Intangible Assets	9 Months Ended
	Sep. 30, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
Intangible Assets	NOTE 4. INTANGIBLE ASSETS Intangible assets consist of the following: (dollar amounts in thousands) Estimated useful life in years September 30, 2017 December 31, 2016 Trade name Indefinite $ 5,700 $ 5,700 Customer relationships 11 9,611 9,611 15,311 15,311 Less accumulated amortization (7,369 ) (6,716 ) $ 7,942 $ 8,595 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 with indefinite lives 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 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, 2016. 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, 2017 and assuming no subsequent impairment of the underlying assets, the amortization expense is expected to be $0.3 million for the remainder of fiscal year 2017, $0.9 million in each of the fiscal years 2018 and 2019 and $0.2 million in 2020.

Segment Reporting

Segment Reporting	9 Months Ended
	Sep. 30, 2017
Segment Reporting [Abstract]
Segment Reporting	NOTE 5. 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, 2016. 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, 2017 and 2016 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, 2017 Rental revenues $ 104,923 $ 60,569 $ 46,220 $ — $ 211,712 Rental related services revenues 38,283 2,095 18,209 — 58,587 Sales and other revenues 30,622 16,493 1,701 20,692 69,508 Total revenues 173,828 79,157 66,130 20,692 339,807 Depreciation of rental equipment 15,951 24,335 11,827 — 52,113 Gross profit 77,939 36,420 31,407 5,890 151,656 Selling and administrative expenses 42,157 16,475 21,855 3,215 83,702 Income from operations 35,782 19,945 9,552 2,675 67,954 Interest (expense) income allocation (5,008 ) (1,726 ) (2,301 ) 311 (8,724 ) Income before provision for income taxes 30,774 18,492 7,251 2,986 59,503 Rental equipment acquisitions 28,107 45,700 3,130 — 76,937 Accounts receivable, net (period end) 66,126 16,253 18,118 6,916 107,413 Rental equipment, at cost (period end) 781,791 258,877 309,825 — 1,350,493 Rental equipment, net book value (period end) 547,115 106,728 211,881 — 865,724 Utilization (period end) 2 76.8 % 64.3 % 59.7 % Average utilization 2 76.6 % 62.8 % 54.7 % 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 % 1. Gross Enviroplex sales revenues were $20,692 and $15,872 for the nine months ended September 30, 2017 and 2016, respectively, with no intercompany sales to Mobile Modular in 2017 and $85 inter-segment sales to Mobile Modular in 2016, which were 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, 2017 and 2016. Revenues from foreign country customers accounted for 4% and 5% of the Company’s total revenues for the 2017 and 2016 periods, respectively.

Recent Accounting Pronounceme12

Recent Accounting Pronouncements (Policies)	9 Months Ended
	Sep. 30, 2017
Accounting Changes And Error Corrections [Abstract]
Recent 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 for reporting useful information to users of financial statements about the nature, timing and uncertainty of revenue from contracts with customers. The FASB has continued to issue ASUs to clarify and provide implementation guidance related to Revenue from Contracts with Customers, including ASU 2016-08, Revenue from Contract with Customers: Principal versus Agent Considerations, ASU 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing, ASU 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients and ASU 2016-20, Revenue from Contracts with Customers: Technical Correction and Improvements. These amendments address a number of areas, including the entity’s identification of its performance obligations in a contract, collectability, non-cash consideration, presentation of sales tax and an entity’s evaluation of the nature of its promise to grant a license of intellectual property and whether or not that revenue is recognized over time or at a point in time. These standards are effective for the interim and annual reporting periods beginning after December 31, 2017. The new standard permits two methods of adoption: retrospectively to each prior period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (modified retrospective method). While the Company is still evaluating the potential impact of this guidance, including the method of adoption, the Company believes the majority of its revenue, as such revenue relates to rental contractual revenue, is excluded from the scope of this standard, and the remaining revenue streams will not be materially affected. The Company’s Enviroplex division currently recognizes the sale of its manufactured modular buildings to customers following the completed contract method which, under the new guidance, may change to occur over time. The Company currently does not anticipate the adoption of this guidance will have a material impact on the Company’s 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 b) right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. The amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. While the Company is still evaluating the potential impact of this guidance, as a lessor, the Company does not believe the accounting for operating lease revenues will be materially affected by this standard. The Company anticipates its lessee accounting to increase its total assets and liabilities; however, the Company is currently evaluating the magnitude of the impact the adoption of this guidance will have on the Company’s consolidated financial statements. During the first quarter 2017, the Company adopted ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting (ASU 2016-09). As a result of the adoption, the Company recognized $360,000 and $494,000 of excess tax benefits related to share-based payments as a reduction to the provision for income taxes for the three and nine months ended September 30, 2017, respectively. These tax benefits, or shortfalls, were historically recorded in equity. In addition, cash flows related to excess tax benefits, or shortfalls, are now classified as an operating activity with the prior period adjusted accordingly. Cash paid on employees’ behalf related to shares withheld for tax purposes is classified as a financing activity, consistent with prior year’s presentation. Retrospective application of the cash flow presentation requirements resulted in decreases to both net cash provided by operations and net cash used in financing activities of $993,000 for the nine months ended September 30, 2016. The Company’s compensation expense for each period continues to reflect forfeitures as they occur, rather than based upon estimated expected forfeitures. In May 2017, the FASB issued ASU No. 2017-09, Compensation, Stock Compensation (Topic 718). The amendments in this update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. t

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2017
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) 2017 2016 2017 2016 Weighted-average number of shares of common stock for calculating basic earnings per share 24,015 23,911 23,984 23,891 Effect of potentially dilutive securities from equity-based compensation 213 130 217 66 Weighted-average number of shares of common stock for calculating diluted earnings per share 24,228 24,041 24,201 23,957
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) 2017 2016 2017 2016 Options to purchase shares of common stock 14 636 14 998

Intangible Assets (Tables)

Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2017
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 30, 2017 December 31, 2016 Trade name Indefinite $ 5,700 $ 5,700 Customer relationships 11 9,611 9,611 15,311 15,311 Less accumulated amortization (7,369 ) (6,716 ) $ 7,942 $ 8,595

Segment Reporting (Tables)

Segment Reporting (Tables)	9 Months Ended
	Sep. 30, 2017
Segment Reporting [Abstract]
Summarized Financial Information for Company's Reportable Segments	Summarized financial information for the nine months ended September 30, 2017 and 2016 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, 2017 Rental revenues $ 104,923 $ 60,569 $ 46,220 $ — $ 211,712 Rental related services revenues 38,283 2,095 18,209 — 58,587 Sales and other revenues 30,622 16,493 1,701 20,692 69,508 Total revenues 173,828 79,157 66,130 20,692 339,807 Depreciation of rental equipment 15,951 24,335 11,827 — 52,113 Gross profit 77,939 36,420 31,407 5,890 151,656 Selling and administrative expenses 42,157 16,475 21,855 3,215 83,702 Income from operations 35,782 19,945 9,552 2,675 67,954 Interest (expense) income allocation (5,008 ) (1,726 ) (2,301 ) 311 (8,724 ) Income before provision for income taxes 30,774 18,492 7,251 2,986 59,503 Rental equipment acquisitions 28,107 45,700 3,130 — 76,937 Accounts receivable, net (period end) 66,126 16,253 18,118 6,916 107,413 Rental equipment, at cost (period end) 781,791 258,877 309,825 — 1,350,493 Rental equipment, net book value (period end) 547,115 106,728 211,881 — 865,724 Utilization (period end) 2 76.8 % 64.3 % 59.7 % Average utilization 2 76.6 % 62.8 % 54.7 % 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 % 1. Gross Enviroplex sales revenues were $20,692 and $15,872 for the nine months ended September 30, 2017 and 2016, respectively, with no intercompany sales to Mobile Modular in 2017 and $85 inter-segment sales to Mobile Modular in 2016, which were 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 .

Recent Accounting Pronounceme16

Recent Accounting Pronouncements - Additional Information (Detail) - ASU 2016-09 [Member] - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017	Sep. 30, 2016
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Excess tax benefits related to share-based payments, reduction to provision for income taxes	$ 360,000	$ 494,000
Decreases to both net cash provided by operations and net cash used in financing activities			$ 993,000

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, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Earnings Per Share [Abstract]
Weighted-average number of shares of common stock for calculating basic earnings per share	24,015	23,911	23,984	23,891
Effect of potentially dilutive securities from equity-based compensation	213	130	217	66
Weighted-average number of shares of common stock for calculating diluted earnings per share	24,228	24,041	24,201	23,957

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, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Earnings Per Share [Abstract]
Options to purchase shares of common stock	14	636	14	998

Intangible Assets - Summary of

Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
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	(7,369)	(6,716)
Intangible Assets, net	$ 7,942	$ 8,595
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, 2017	Dec. 31, 2016
Goodwill And Intangible Assets Disclosure [Abstract]
Impairment charge		$ 0
Subsequent impairment of the underlying assets	$ 0
Expected amortization expense for the remainder of 2017	300,000
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, 2017	Sep. 30, 2016
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	4.00%	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, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Segment Reporting Information [Line Items]
Rental revenues		$ 73,781	$ 67,757	$ 211,712	$ 201,036
Rental related services revenues		21,856	20,122	58,587	57,028
Sales and other revenues				69,508	60,733
Total revenues		135,388	121,993	339,807	318,797
Depreciation of rental equipment		17,492	17,819	52,113	54,590
Gross profit		58,775	50,433	151,656	134,844
Selling and administrative expenses		28,489	26,201	83,702	78,281
Income from operations		30,286	24,232	67,954	56,563
Interest (expense) income allocation				(8,724)	(9,486)
Income before provision for income taxes		27,336	21,277	59,503	47,136
Rental equipment acquisitions				76,937	60,758
Accounts receivable, net (period end)		107,413	104,004	107,413	104,004	$ 96,877
Rental equipment, at cost (period end)		1,350,493	1,325,202	1,350,493	1,325,202	1,324,057
Rental equipment, net book value (period end)		865,724	862,528	865,724	862,528	$ 856,371
Mobile Modular [Member]
Segment Reporting Information [Line Items]
Rental revenues				104,923	96,002
Rental related services revenues				38,283	37,034
Sales and other revenues				30,622	25,416
Total revenues				173,828	158,452
Depreciation of rental equipment				15,951	15,642
Gross profit				77,939	67,329
Selling and administrative expenses				42,157	38,162
Income from operations				35,782	29,167
Interest (expense) income allocation				(5,008)	(5,264)
Income before provision for income taxes				30,774	23,903
Rental equipment acquisitions				28,107	35,363
Accounts receivable, net (period end)		66,126	63,752	66,126	63,752
Rental equipment, at cost (period end)		781,791	763,777	781,791	763,777
Rental equipment, net book value (period end)		547,115	543,141	$ 547,115	$ 543,141
Utilization (period end)	[1]			76.80%	77.60%
Average utilization	[1]			76.60%	76.30%
TRS-RenTelco [Member]
Segment Reporting Information [Line Items]
Rental revenues				$ 60,569	$ 61,562
Rental related services revenues				2,095	2,156
Sales and other revenues				16,493	18,491
Total revenues				79,157	82,209
Depreciation of rental equipment				24,335	26,939
Gross profit				36,420	34,033
Selling and administrative expenses				16,475	16,444
Income from operations				19,945	17,589
Interest (expense) income allocation				(1,726)	(1,921)
Income before provision for income taxes				18,492	15,727
Rental equipment acquisitions				45,700	24,991
Accounts receivable, net (period end)		16,253	20,267	16,253	20,267
Rental equipment, at cost (period end)		258,877	252,573	258,877	252,573
Rental equipment, net book value (period end)		106,728	93,894	$ 106,728	$ 93,894
Utilization (period end)	[1]			64.30%	62.40%
Average utilization	[1]			62.80%	60.10%
Adler Tanks [Member]
Segment Reporting Information [Line Items]
Rental revenues				$ 46,220	$ 43,472
Rental related services revenues				18,209	17,838
Sales and other revenues				1,701	1,039
Total revenues				66,130	62,349
Depreciation of rental equipment				11,827	12,009
Gross profit				31,407	28,362
Selling and administrative expenses				21,855	20,786
Income from operations				9,552	7,576
Interest (expense) income allocation				(2,301)	(2,487)
Income before provision for income taxes				7,251	5,089
Rental equipment acquisitions				3,130	404
Accounts receivable, net (period end)		18,118	15,922	18,118	15,922
Rental equipment, at cost (period end)		309,825	308,852	309,825	308,852
Rental equipment, net book value (period end)		211,881	225,493	$ 211,881	$ 225,493
Utilization (period end)	[1]			59.70%	52.10%
Average utilization	[1]			54.70%	49.90%
Enviroplex [Member]
Segment Reporting Information [Line Items]
Sales and other revenues	[2]			$ 20,692	$ 15,787
Total revenues	[2]			20,692	15,787
Gross profit	[2]			5,890	5,120
Selling and administrative expenses	[2]			3,215	2,889
Income from operations	[2]			2,675	2,231
Interest (expense) income allocation	[2]			311	186
Income before provision for income taxes	[2]			2,986	2,417
Accounts receivable, net (period end)	[2]	$ 6,916	$ 4,063	$ 6,916	$ 4,063
[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 $20,692 and $15,872 for the nine months ended September 30, 2017 and 2016, respectively, with no intercompany sales to Mobile Modular in 2017 and $85 inter-segment sales to Mobile Modular in 2016, which were eliminated in consolidation.

Segment Reporting - Summarize23

Segment Reporting - Summarized Financial Information for Company's Reportable Segments (Parenthetical) (Detail) - USD ($)		3 Months Ended		9 Months Ended
		Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Segment Reporting Information [Line Items]
Revenues		$ 135,388,000	$ 121,993,000	$ 339,807,000	$ 318,797,000
Enviroplex [Member]
Segment Reporting Information [Line Items]
Revenues	[1]			20,692,000	15,787,000
Mobile Modular [Member]
Segment Reporting Information [Line Items]
Revenues				173,828,000	158,452,000
Operating Segments [Member] | Enviroplex [Member]
Segment Reporting Information [Line Items]
Revenues				20,692,000	15,872,000
Inter-segment Eliminations [Member] | Mobile Modular [Member]
Segment Reporting Information [Line Items]
Sales revenues				$ 0	$ 85,000
[1]	Gross Enviroplex sales revenues were $20,692 and $15,872 for the nine months ended September 30, 2017 and 2016, respectively, with no intercompany sales to Mobile Modular in 2017 and $85 inter-segment sales to Mobile Modular in 2016, which were eliminated in consolidation.