McGrath RentCorp (MGRC) 10-Q 1 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	Apr. 30, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
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		24,119,513

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenues
Rental	$ 74,261	$ 67,978
Rental related services	17,831	17,935
Rental operations	92,092	85,913
Sales	12,091	8,295
Other	902	629
Total revenues	105,085	94,837
Direct costs of rental operations:
Depreciation of rental equipment	17,777	17,379
Rental related services	13,768	13,833
Other	16,269	15,359
Total direct costs of rental operations	47,814	46,571
Costs of sales	7,101	4,596
Total costs of revenues	54,915	51,167
Gross profit	50,170	43,670
Selling and administrative expenses	28,128	27,848
Income from operations	22,042	15,822
Other income (expense):
Interest expense	(2,992)	(2,789)
Foreign currency exchange gain (loss)	(32)	226
Income before provision for income taxes	19,018	13,259
Provision for income taxes	4,552	5,286
Net income	$ 14,466	$ 7,973
Earnings per share:
Basic	$ 0.60	$ 0.33
Diluted	$ 0.59	$ 0.33
Shares used in per share calculation:
Basic	24,067	23,950
Diluted	24,478	24,232
Cash dividends declared per share	$ 0.340	$ 0.260

Condensed Consolidated Stateme3

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 14,466	$ 7,973
Other comprehensive income (loss):
Foreign currency translation adjustment	(26)	(78)
Tax benefit	4	25
Comprehensive income	$ 14,444	$ 7,920

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Assets
Cash	$ 4,448	$ 2,501
Accounts receivable, net of allowance for doubtful accounts of $1,883 in 2018 and $1,920 in 2017	98,092	105,872
Rental equipment, at cost:
Relocatable modular buildings	779,839	775,400
Electronic test equipment	269,043	262,325
Liquid and solid containment tanks and boxes	310,478	309,808
Rental equipment, gross	1,359,360	1,347,533
Less accumulated depreciation	(494,022)	(485,213)
Rental equipment, net	865,338	862,320
Property, plant and equipment, net	119,904	119,170
Prepaid expenses and other assets	25,762	22,459
Intangible assets, net	7,506	7,724
Goodwill	27,808	27,808
Total assets	1,148,858	1,147,854
Liabilities:
Notes payable	300,595	303,414
Accounts payable and accrued liabilities	84,666	86,408
Deferred income	38,502	39,219
Deferred income taxes, net	194,811	194,629
Total liabilities	618,574	623,670
Shareholders’ equity:
Common stock, no par value - Authorized 40,000 shares Issued and outstanding - 24,102 shares as of March 31, 2018 and 24,052 shares as of December 31, 2017	102,840	102,947
Retained earnings	427,634	421,405
Accumulated other comprehensive loss	(190)	(168)
Total shareholders’ equity	530,284	524,184
Total liabilities and shareholders’ equity	$ 1,148,858	$ 1,147,854

Condensed Consolidated Balance5

Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Statement Of Financial Position [Abstract]
Allowance for doubtful accounts	$ 1,883	$ 1,920
Common stock, par value
Common stock, shares authorized	40,000,000	40,000,000
Common stock, shares issued	24,102,000	24,052,000
Common Stock, shares outstanding	24,102,000	24,052,000

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash Flows from Operating Activities :
Net income	$ 14,466	$ 7,973
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	19,928	19,405
Impairment of rental assets	39
Provision for doubtful accounts	35	289
Share-based compensation	864	806
Gain on sale of used rental equipment	(3,848)	(2,943)
Foreign currency exchanges (gain) loss	32	(226)
Amortization of debt issuance costs	13	13
Change in:
Accounts receivable	7,745	4,036
Prepaid expenses and other assets	(3,303)	(1,536)
Accounts payable and accrued liabilities	(4,284)	(3,924)
Deferred income	(717)	2,388
Deferred income taxes	182	(451)
Net cash provided by operating activities	31,152	25,830
Cash Flows from Investing Activities:
Purchases of rental equipment	(24,168)	(15,914)
Purchases of property, plant and equipment	(2,667)	(5,835)
Proceeds from sales of used rental equipment	7,707	5,505
Net cash used in investing activities	(19,128)	(16,244)
Cash Flows from Financing Activities:
Net repayments under bank lines of credit	(2,831)	(2,436)
Taxes paid related to net share settlement of stock awards	(971)	(143)
Payment of dividends	(6,300)	(6,155)
Net cash used in financing activities	(10,102)	(8,734)
Effect of foreign currency exchange rate changes on cash	25	(24)
Net increase in cash	1,947	828
Cash balance, beginning of period	2,501	852
Cash balance, end of period	4,448	1,680
Supplemental Disclosure of Cash Flow Information:
Interest paid, during the period	2,537	2,303
Net income taxes paid, during the period	1,572	5,565
Dividends accrued during the period, not yet paid	8,237	6,190
Rental equipment acquisitions, not yet paid	$ 6,930	$ 7,513

Condensed Consolidated Financia

Condensed Consolidated Financial Information	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Condensed Consolidated Financial Information	NOTE 1. CONDENSED CONSOLIDATED FINANCIAL INFORMATION The condensed consolidated financial statements for the three months ended March 31, 2018 and 2017 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 three months ended March 31, 2018 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 27, 2018 for the year ended December 31, 2017 (the “2017 Annual Report”).

Recent Accounting Pronouncement

Recent Accounting Pronouncements	3 Months Ended
	Mar. 31, 2018
Accounting Changes And Error Corrections [Abstract]
Recent Accounting Pronouncements	NOTE 2. RECENT ACCOUNTING PRONOUNCEMENTS In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“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

Implemented Accounting Pronounc

Implemented Accounting Pronouncements	3 Months Ended
	Mar. 31, 2018
Accounting Changes And Error Corrections [Abstract]
Implemented Accounting Pronouncements	NOTE 3. IMPLEMENTED ACCOUNTING PRONOUNCEMENTS Revenue from Contracts with Customers The Company’s accounting for revenues is governed by two accounting standards. The majority of revenues are considered lease related and are accounted for in accordance with Topic 840, Accounting for Leases. Revenues determined to be non-lease related are accounted for in accordance with ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which was adopted by the Company on January 1, 2018. The Company utilized the modified retrospective method of adoption and there was no impact on its condensed consolidated financial statements, nor was there a cumulative effect of initially applying the new standard. The Company accounts for revenues when approval and commitment from both parties have been obtained, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. The Company typically recognizes non-lease related revenues at a point in time because the customer does not simultaneously consume the benefits of the Company’s promised goods, or performance obligations, and control doesn’t occur until delivery and installation is complete. For contracts that have multiple performance obligations, the transaction price is allocated to each performance obligation in the contract based on the Company’s best estimate of the standalone selling prices of each distinct goods or services in the contract. The standalone selling price is typically determined based upon the expected cost plus an estimated margin of each performance obligation. The Company generally rents and sells to customers on 30 day payment terms. The Company does not typically offer variable payment terms, or accept non-monetary consideration. Amounts billed and due from our customers are classified as Accounts receivable on the Company’s consolidated balance sheet. For certain sales of modular buildings, progress payments from the customer are received during the manufacturing of new equipment, or the preparation of used equipment. The advance payments are not considered a significant financing component because the payments are used to meet working capital needs during the contract and to protect the Company from the customer failing to adequately complete their obligations under the contract. These contract liabilities are included in Deferred income on the Company’s consolidated balance sheet and totaled $10.6 million and $6.8 million at March 31, 2018 and December 31, 2017, respectively. Sales revenues totaling $2.3 million were recognized during the three months ended March 31, 2018 that were included in the contract liability balance at December 31, 2017. For certain modular building sales, the customer retains a small portion of the contract price until full completion of the contract, which results in revenue earned in excess of billings. These unbilled contract assets are included in Accounts receivable on the Company’s consolidated balance sheet and totaled $1.3 million and $2.0 million at March 31, 2018 and December 31, 2017, respectively. Lease Revenues Rental revenues from operating leases are recognized on a straight-line basis over the term of the lease for all operating segments. Rental billings for periods extending beyond period end are recorded as deferred income and are recognized in the period earned. Rental related services revenues are primarily associated with relocatable modular building and liquid and solid containment tanks and boxes leases. For modular building leases, rental related services revenues for modifications, delivery, installation, dismantle and return delivery are lease related because the payments are considered minimum lease payments that are an integral part of the negotiated lease agreement with the customer. These revenues are recognized on a straight-line basis over the term of the lease. Certain leases are accounted for as sales-type leases. For these leases, sales revenue and the related accounts receivable are recognized upon delivery and installation of the equipment and the unearned interest is recognized over the lease term on a basis which results in a constant rate of return on the unrecovered lease investment. Other revenues include interest income on sales-type leases and rental income on facility leases. Non-Lease Revenues Non-lease revenues are recognized in the period when control of the performance obligation is transferred, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. For liquid and solid containment solutions, portable storage containers and electronic test equipment, rental related services revenues for delivery, installation and return delivery are considered non-lease revenues. In addition, services performed during the lease and billings to repair damaged equipment returned after the lease for all operating segments are considered non-lease related. Sales revenues are typically recognized at a point in time, which occurs upon the completion of delivery, installation and acceptance of the equipment by the customer. Accounting for non-lease revenues requires judgment in determining the point in time the customer gains control of the equipment and the appropriate accounting period to recognize revenue. Sales taxes charged to customers are reported on a net basis and are excluded from revenues and expenses. The following table disaggregates the Company’s revenues by lease (within the scope of Topic 840) and non-lease revenues (within the scope of Topic 606) and the underlying service provided for the months ended March 31, 2018 and 2017: (in thousands) Mobile Modular TRS-RenTelco Adler Tanks Enviroplex Consolidated Three Months Ended March 31, 2018 Leasing $ 45,271 $ 22,499 $ 15,783 $ — $ 83,553 Non-lease: Rental related services 3,985 807 5,090 — 9,882 Sales 4,593 4,339 305 2,018 11,255 Other 2 393 — — 395 Total non-lease 8,580 5,539 5,395 2,018 21,532 Total revenues $ 53,851 $ 28,038 $ 21,178 $ 2,018 $ 105,085 2017 Leasing $ 42,398 $ 20,216 $ 14,583 $ — $ 77,197 Non-lease: Rental related services 2,941 658 5,689 — 9,288 Sales 2,964 3,985 189 759 7,897 Other — 455 — — 455 Total non-lease 5,905 5,098 5,878 759 17,640 Total revenues $ 48,303 $ 25,314 $ 20,461 $ 759 $ 94,837 Customer returns of rental equipment prior to the end of the rental contract term are typically billed a cancellation fee, which is recorded as rental revenue in the period billed. Sales of new relocatable modular buildings, portable storage containers, electronic test equipment and related accessories and liquid and solid containment tanks and boxes not manufactured by the Company are typically covered by warranties provided by the manufacturer of the products sold. The Company typically provides limited 90-day warranties for certain sales of used rental equipment and one-year warranties on equipment manufactured by Enviroplex. Although the Company’s policy is to provide reserves for warranties when required for specific circumstances, the Company has not found it necessary to establish such reserves to date as warranty costs have not been significant. The Company’s incremental cost of obtaining lease contracts, which consists of salesperson commissions, are deferred and amortized over the initial lease term for modular building leases. Incremental costs for obtaining a contract for all other operating segments are expensed in the period incurred because the lease term is typically less than 12 months. Modifications to Share-based Payments 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.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
Earnings Per Share	NOTE 4. 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 March 31, (in thousands) 2018 2017 Weighted-average number of shares of common stock for calculating basic earnings per share 24,067 23,950 Effect of potentially dilutive securities from equity-based compensation 411 282 Weighted-average number of shares of common stock for calculating diluted earnings per share 24,478 24,232 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 March 31, (in thousands) 2018 2017 Options to purchase shares of common stock — 7

Intangible Assets

Intangible Assets	3 Months Ended
	Mar. 31, 2018
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 March 31, 2018 December 31, 2017 Trade name Indefinite $ 5,700 $ 5,700 Customer relationships 11 9,611 9,611 15,311 15,311 Less accumulated amortization (7,805 ) (7,587 ) $ 7,506 $ 7,724 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, 2017. 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 March 31, 2018 and assuming no subsequent impairment of the underlying assets, the amortization expense is expected to be $0.7 million for the remainder of fiscal year 2018, $0.9 million in the year 2019 and $0.2 million in 2020.

Segment Reporting

Segment Reporting	3 Months Ended
	Mar. 31, 2018
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, 2017. 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 three months ended March 31, 2018 and 2017 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 Three Months Ended March 31, 2018 Rental revenues $ 37,027 $ 21,529 $ 15,705 $ — $ 74,261 Rental related services revenues 11,934 807 5,090 — 17,831 Sales and other revenues 4,890 5,702 383 2,018 12,993 Total revenues 53,851 28,038 21,178 2,018 105,085 Depreciation of rental equipment 5,248 8,577 3,952 — 17,777 Gross profit 26,321 12,848 10,396 605 50,170 Selling and administrative expenses 14,012 5,618 7,198 1,300 28,128 Income (loss) from operations 12,309 7,230 3,198 (695 ) 22,042 Interest (expense) income allocation (1,676 ) (683 ) (775 ) 142 (2,992 ) Income (loss) before provision for income taxes 10,633 6,515 2,423 (553 ) 19,018 Rental equipment acquisitions 8,233 15,532 927 — 24,692 Accounts receivable, net (period end) 55,883 19,902 16,490 5,817 98,092 Rental equipment, at cost (period end) 779,839 269,043 310,478 — 1,359,360 Rental equipment, net book value (period end) 544,707 114,799 205,832 — 865,338 Utilization (period end) 2 76.9 % 63.5 % 57.5 % Average utilization 2 77.3 % 62.7 % 57.6 % 2017 Rental revenues $ 33,654 $ 19,746 $ 14,578 $ — $ 67,978 Rental related services revenues 11,588 658 5,689 — 17,935 Sales and other revenues 3,061 4,910 194 759 8,924 Total revenues 48,303 25,314 20,461 759 94,837 Depreciation of rental equipment 5,333 8,091 3,955 — 17,379 Gross profit 22,444 11,393 9,555 278 43,670 Selling and administrative expenses 13,800 5,689 7,267 1,092 27,848 Income (loss) from operations 8,644 5,704 2,288 (814 ) 15,822 Interest (expense) income allocation (1,591 ) (546 ) (738 ) 86 (2,789 ) Income (loss) before provision for income taxes 7,053 5,384 1,550 (728 ) 13,259 Rental equipment acquisitions 7,782 12,021 749 — 20,552 Accounts receivable, net (period end) 53,779 18,603 15,814 4,356 92,552 Rental equipment, at cost (period end) 773,597 248,291 309,131 — 1,331,019 Rental equipment, net book value (period end) 545,953 92,561 218,467 — 856,981 Utilization (period end) 2 76.5 % 62.1 % 53.4 % Average utilization 2 76.8 % 62.2 % 52.3 % 1. Gross Enviroplex sales revenues were $2,813 and $759 for the three months ended March 31, 2018 and 2017, respectively. There were 795 inter-segment sales to Mobile Modular in the three months ended March 31, 2018 requiring elimination in consolidation. There were no inter-segment sales in the three months ended March 31, 2017. 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 three months ended March 31, 2018 and 2017. Revenues from foreign country customers accounted for 4% and 5% of the Company’s total revenues for the same periods, respectively.

Recent Accounting Pronounceme13

Recent Accounting Pronouncements (Policies)	3 Months Ended
	Mar. 31, 2018
Accounting Changes And Error Corrections [Abstract]
Recent Accounting Pronouncements	In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“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

Implemented Accounting Pronou14

Implemented Accounting Pronouncements (Tables)	3 Months Ended
	Mar. 31, 2018
Disaggregation Of Revenue [Abstract]
Summary of Disaggregates the Company's Revenue by Lease and Non Lease	The following table disaggregates the Company’s revenues by lease (within the scope of Topic 840) and non-lease revenues (within the scope of Topic 606) and the underlying service provided for the months ended March 31, 2018 and 2017: (in thousands) Mobile Modular TRS-RenTelco Adler Tanks Enviroplex Consolidated Three Months Ended March 31, 2018 Leasing $ 45,271 $ 22,499 $ 15,783 $ — $ 83,553 Non-lease: Rental related services 3,985 807 5,090 — 9,882 Sales 4,593 4,339 305 2,018 11,255 Other 2 393 — — 395 Total non-lease 8,580 5,539 5,395 2,018 21,532 Total revenues $ 53,851 $ 28,038 $ 21,178 $ 2,018 $ 105,085 2017 Leasing $ 42,398 $ 20,216 $ 14,583 $ — $ 77,197 Non-lease: Rental related services 2,941 658 5,689 — 9,288 Sales 2,964 3,985 189 759 7,897 Other — 455 — — 455 Total non-lease 5,905 5,098 5,878 759 17,640 Total revenues $ 48,303 $ 25,314 $ 20,461 $ 759 $ 94,837

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2018
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 March 31, (in thousands) 2018 2017 Weighted-average number of shares of common stock for calculating basic earnings per share 24,067 23,950 Effect of potentially dilutive securities from equity-based compensation 411 282 Weighted-average number of shares of common stock for calculating diluted earnings per share 24,478 24,232
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 March 31, (in thousands) 2018 2017 Options to purchase shares of common stock — 7

Intangible Assets (Tables)

Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2018
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 March 31, 2018 December 31, 2017 Trade name Indefinite $ 5,700 $ 5,700 Customer relationships 11 9,611 9,611 15,311 15,311 Less accumulated amortization (7,805 ) (7,587 ) $ 7,506 $ 7,724

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Mar. 31, 2018
Segment Reporting [Abstract]
Summarized Financial Information for Company's Reportable Segments	Summarized financial information for the three months ended March 31, 2018 and 2017 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 Three Months Ended March 31, 2018 Rental revenues $ 37,027 $ 21,529 $ 15,705 $ — $ 74,261 Rental related services revenues 11,934 807 5,090 — 17,831 Sales and other revenues 4,890 5,702 383 2,018 12,993 Total revenues 53,851 28,038 21,178 2,018 105,085 Depreciation of rental equipment 5,248 8,577 3,952 — 17,777 Gross profit 26,321 12,848 10,396 605 50,170 Selling and administrative expenses 14,012 5,618 7,198 1,300 28,128 Income (loss) from operations 12,309 7,230 3,198 (695 ) 22,042 Interest (expense) income allocation (1,676 ) (683 ) (775 ) 142 (2,992 ) Income (loss) before provision for income taxes 10,633 6,515 2,423 (553 ) 19,018 Rental equipment acquisitions 8,233 15,532 927 — 24,692 Accounts receivable, net (period end) 55,883 19,902 16,490 5,817 98,092 Rental equipment, at cost (period end) 779,839 269,043 310,478 — 1,359,360 Rental equipment, net book value (period end) 544,707 114,799 205,832 — 865,338 Utilization (period end) 2 76.9 % 63.5 % 57.5 % Average utilization 2 77.3 % 62.7 % 57.6 % 2017 Rental revenues $ 33,654 $ 19,746 $ 14,578 $ — $ 67,978 Rental related services revenues 11,588 658 5,689 — 17,935 Sales and other revenues 3,061 4,910 194 759 8,924 Total revenues 48,303 25,314 20,461 759 94,837 Depreciation of rental equipment 5,333 8,091 3,955 — 17,379 Gross profit 22,444 11,393 9,555 278 43,670 Selling and administrative expenses 13,800 5,689 7,267 1,092 27,848 Income (loss) from operations 8,644 5,704 2,288 (814 ) 15,822 Interest (expense) income allocation (1,591 ) (546 ) (738 ) 86 (2,789 ) Income (loss) before provision for income taxes 7,053 5,384 1,550 (728 ) 13,259 Rental equipment acquisitions 7,782 12,021 749 — 20,552 Accounts receivable, net (period end) 53,779 18,603 15,814 4,356 92,552 Rental equipment, at cost (period end) 773,597 248,291 309,131 — 1,331,019 Rental equipment, net book value (period end) 545,953 92,561 218,467 — 856,981 Utilization (period end) 2 76.5 % 62.1 % 53.4 % Average utilization 2 76.8 % 62.2 % 52.3 % 1. Gross Enviroplex sales revenues were $2,813 and $759 for the three months ended March 31, 2018 and 2017, respectively. There were 795 inter-segment sales to Mobile Modular in the three months ended March 31, 2018 requiring elimination in consolidation. There were no inter-segment sales in the three months ended March 31, 2017. 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 .

Implemented Accounting Pronou18

Implemented Accounting Pronouncements - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Period for credit risk identified	30 days
Sales revenues totaling	$ 2.3
Period for warranties for rental equipment	90 days
Period for warranties for equipment manufactured	1 year
Deferred Income [Member]
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Customer contract liability	$ 10.6	$ 6.8
Accounts Receivable [Member]
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Unbilled contract assets	$ 1.3	$ 2

Implemented Accounting Pronou19

Implemented Accounting Pronouncements - Summary of Disaggregates the Company's Revenue by Lease and Non Lease (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Disaggregation Of Revenue [Line Items]
Total revenues	$ 105,085	$ 94,837
Leasing [Member]
Disaggregation Of Revenue [Line Items]
Total revenues	83,553	77,197
Non-lease Rental Related Services [Member]
Disaggregation Of Revenue [Line Items]
Total revenues	9,882	9,288
Non-lease Sales [Member]
Disaggregation Of Revenue [Line Items]
Total revenues	11,255	7,897
Non-lease Other [Member]
Disaggregation Of Revenue [Line Items]
Total revenues	395	455
Non-lease Revenues [Member]
Disaggregation Of Revenue [Line Items]
Total revenues	21,532	17,640
Mobile Modular [Member]
Disaggregation Of Revenue [Line Items]
Total revenues	53,851	48,303
Mobile Modular [Member] | Leasing [Member]
Disaggregation Of Revenue [Line Items]
Total revenues	45,271	42,398
Mobile Modular [Member] | Non-lease Rental Related Services [Member]
Disaggregation Of Revenue [Line Items]
Total revenues	3,985	2,941
Mobile Modular [Member] | Non-lease Sales [Member]
Disaggregation Of Revenue [Line Items]
Total revenues	4,593	2,964
Mobile Modular [Member] | Non-lease Other [Member]
Disaggregation Of Revenue [Line Items]
Total revenues	2
Mobile Modular [Member] | Non-lease Revenues [Member]
Disaggregation Of Revenue [Line Items]
Total revenues	8,580	5,905
TRS-RenTelco [Member]
Disaggregation Of Revenue [Line Items]
Total revenues	28,038	25,314
TRS-RenTelco [Member] | Leasing [Member]
Disaggregation Of Revenue [Line Items]
Total revenues	22,499	20,216
TRS-RenTelco [Member] | Non-lease Rental Related Services [Member]
Disaggregation Of Revenue [Line Items]
Total revenues	807	658
TRS-RenTelco [Member] | Non-lease Sales [Member]
Disaggregation Of Revenue [Line Items]
Total revenues	4,339	3,985
TRS-RenTelco [Member] | Non-lease Other [Member]
Disaggregation Of Revenue [Line Items]
Total revenues	393	455
TRS-RenTelco [Member] | Non-lease Revenues [Member]
Disaggregation Of Revenue [Line Items]
Total revenues	5,539	5,098
Adler Tanks [Member]
Disaggregation Of Revenue [Line Items]
Total revenues	21,178	20,461
Adler Tanks [Member] | Leasing [Member]
Disaggregation Of Revenue [Line Items]
Total revenues	15,783	14,583
Adler Tanks [Member] | Non-lease Rental Related Services [Member]
Disaggregation Of Revenue [Line Items]
Total revenues	5,090	5,689
Adler Tanks [Member] | Non-lease Sales [Member]
Disaggregation Of Revenue [Line Items]
Total revenues	305	189
Adler Tanks [Member] | Non-lease Revenues [Member]
Disaggregation Of Revenue [Line Items]
Total revenues	5,395	5,878
Enviroplex [Member]
Disaggregation Of Revenue [Line Items]
Total revenues	2,018	759
Enviroplex [Member] | Non-lease Sales [Member]
Disaggregation Of Revenue [Line Items]
Total revenues	2,018	759
Enviroplex [Member] | Non-lease Revenues [Member]
Disaggregation Of Revenue [Line Items]
Total revenues	$ 2,018	$ 759

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
	Mar. 31, 2018	Mar. 31, 2017
Earnings Per Share [Abstract]
Weighted-average number of shares of common stock for calculating basic earnings per share	24,067	23,950
Effect of potentially dilutive securities from equity-based compensation	411	282
Weighted-average number of shares of common stock for calculating diluted earnings per share	24,478	24,232

Earnings Per Share - Securities

Earnings Per Share - Securities Not Included in Computation of Diluted Earnings Per Share (Detail) shares in Thousands	3 Months Ended
	Mar. 31, 2017shares
Earnings Per Share [Abstract]
Options to purchase shares of common stock	7

Intangible Assets - Summary of

Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
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	(7,805)	(7,587)
Intangible Assets, net	$ 7,506	$ 7,724
Estimated useful life in years, Customer relationships	11 years

Intangible Assets - Additional

Intangible Assets - Additional Information (Detail) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
Impairment charge		$ 0
Subsequent impairment of the underlying assets	$ 0
Expected amortization expense for the remainder of 2018	700,000
Expected amortization expense for 2019	900,000
Expected amortization expense for 2020	$ 200,000

Segment Reporting - Additional

Segment Reporting - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2018SegmentCustomer	Mar. 31, 2017Customer
Segment Reporting Information [Line Items]
Number of reportable segments | Segment	4
Customer Concentration Risk [Member] | Sales [Member]
Segment Reporting Information [Line Items]
Number of major customer | Customer	0	0
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
		Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Segment Reporting Information [Line Items]
Rental revenues		$ 74,261	$ 67,978
Rental related services revenues		17,831	17,935
Sales and other revenues		12,993	8,924
Total revenues		105,085	94,837
Depreciation of rental equipment		17,777	17,379
Gross profit		50,170	43,670
Selling and administrative expenses		28,128	27,848
Income from operations		22,042	15,822
Interest (expense) income allocation		(2,992)	(2,789)
Income (loss) before provision for income taxes		19,018	13,259
Rental equipment acquisitions		24,692	20,552
Accounts receivable, net (period end)		98,092	92,552	$ 105,872
Rental equipment, at cost (period end)		1,359,360	1,331,019	1,347,533
Rental equipment, net book value (period end)		865,338	856,981	$ 862,320
Mobile Modular [Member]
Segment Reporting Information [Line Items]
Rental revenues		37,027	33,654
Rental related services revenues		11,934	11,588
Sales and other revenues		4,890	3,061
Total revenues		53,851	48,303
Depreciation of rental equipment		5,248	5,333
Gross profit		26,321	22,444
Selling and administrative expenses		14,012	13,800
Income from operations		12,309	8,644
Interest (expense) income allocation		(1,676)	(1,591)
Income (loss) before provision for income taxes		10,633	7,053
Rental equipment acquisitions		8,233	7,782
Accounts receivable, net (period end)		55,883	53,779
Rental equipment, at cost (period end)		779,839	773,597
Rental equipment, net book value (period end)		$ 544,707	$ 545,953
Utilization (period end)	[1]	76.90%	76.50%
Average utilization	[1]	77.30%	76.80%
TRS-RenTelco [Member]
Segment Reporting Information [Line Items]
Rental revenues		$ 21,529	$ 19,746
Rental related services revenues		807	658
Sales and other revenues		5,702	4,910
Total revenues		28,038	25,314
Depreciation of rental equipment		8,577	8,091
Gross profit		12,848	11,393
Selling and administrative expenses		5,618	5,689
Income from operations		7,230	5,704
Interest (expense) income allocation		(683)	(546)
Income (loss) before provision for income taxes		6,515	5,384
Rental equipment acquisitions		15,532	12,021
Accounts receivable, net (period end)		19,902	18,603
Rental equipment, at cost (period end)		269,043	248,291
Rental equipment, net book value (period end)		$ 114,799	$ 92,561
Utilization (period end)	[1]	63.50%	62.10%
Average utilization	[1]	62.70%	62.20%
Adler Tanks [Member]
Segment Reporting Information [Line Items]
Rental revenues		$ 15,705	$ 14,578
Rental related services revenues		5,090	5,689
Sales and other revenues		383	194
Total revenues		21,178	20,461
Depreciation of rental equipment		3,952	3,955
Gross profit		10,396	9,555
Selling and administrative expenses		7,198	7,267
Income from operations		3,198	2,288
Interest (expense) income allocation		(775)	(738)
Income (loss) before provision for income taxes		2,423	1,550
Rental equipment acquisitions		927	749
Accounts receivable, net (period end)		16,490	15,814
Rental equipment, at cost (period end)		310,478	309,131
Rental equipment, net book value (period end)		$ 205,832	$ 218,467
Utilization (period end)	[1]	57.50%	53.40%
Average utilization	[1]	57.60%	52.30%
Enviroplex [Member]
Segment Reporting Information [Line Items]
Sales and other revenues	[2]	$ 2,018	$ 759
Total revenues	[2]	2,018	759
Gross profit	[2]	605	278
Selling and administrative expenses	[2]	1,300	1,092
Income from operations	[2]	(695)	(814)
Interest (expense) income allocation	[2]	142	86
Income (loss) before provision for income taxes	[2]	(553)	(728)
Accounts receivable, net (period end)	[2]	$ 5,817	$ 4,356
[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 $2,813 and $759 for the three months ended March 31, 2018 and 2017, respectively. There were $795 inter-segment sales to Mobile Modular in the three months ended March 31, 2018 requiring elimination in consolidation. There were no inter-segment sales in the three months ended March 31, 2017.

Segment Reporting - Summarize26

Segment Reporting - Summarized Financial Information for Company's Reportable Segments (Parenthetical) (Detail) - USD ($)		3 Months Ended
		Mar. 31, 2018	Mar. 31, 2017
Segment Reporting Information [Line Items]
Revenues		$ 105,085,000	$ 94,837,000
Enviroplex [Member]
Segment Reporting Information [Line Items]
Revenues	[1]	2,018,000	759,000
Mobile Modular [Member]
Segment Reporting Information [Line Items]
Revenues		53,851,000	48,303,000
Operating Segments [Member] | Enviroplex [Member]
Segment Reporting Information [Line Items]
Revenues		2,813,000	759,000
Inter-segment Eliminations [Member]
Segment Reporting Information [Line Items]
Sales revenues			$ 0
Inter-segment Eliminations [Member] | Mobile Modular [Member]
Segment Reporting Information [Line Items]
Sales revenues		$ 795,000
[1]	Gross Enviroplex sales revenues were $2,813 and $759 for the three months ended March 31, 2018 and 2017, respectively. There were $795 inter-segment sales to Mobile Modular in the three months ended March 31, 2018 requiring elimination in consolidation. There were no inter-segment sales in the three months ended March 31, 2017.