McGrath RentCorp (MGRC) 10-Q 28 Apr 21 2021 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2021	Apr. 27, 2021
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Trading Symbol	MGRC
Security Exchange Name	NASDAQ
Entity Registrant Name	McGRATH RENTCORP
Entity Central Index Key	0000752714
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity Small Business	false
Entity Emerging Growth Company	false
Title of 12(b) Security	Common Stock
Entity File Number	000-13292
Entity Incorporation, State or Country Code	CA
Entity Tax Identification Number	94-2579843
Entity Address, Address Line One	5700 Las Positas Road
Entity Address, City or Town	Livermore
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94551-7800
City Area Code	925
Local Phone Number	606-9200
Entity Common Stock, Shares Outstanding		24,218,320
Document Quarterly Report	true
Document Transition Report	false

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Revenues
Rental	$ 86,087	$ 89,506
Rental related services	19,669	24,511
Rental operations	105,756	114,017
Revenues	15,439	15,436
Total revenues	121,195	129,453
Direct costs of rental operations:
Depreciation of rental equipment	21,255	21,638
Rental related services	14,604	18,263
Other	19,707	19,453
Total direct costs of rental operations	55,566	59,354
Costs of sales	8,548	8,443
Total costs of revenues	64,114	67,797
Gross profit	57,081	61,656
Selling and administrative expenses	33,137	31,954
Income from operations	23,944	29,702
Other expense:
Interest expense	(1,783)	(2,652)
Foreign currency exchange loss	(55)	(436)
Income before provision for income taxes	22,106	26,614
Provision for income taxes	4,708	6,455
Net income	$ 17,398	$ 20,159
Earnings per share:
Basic	$ 0.72	$ 0.83
Diluted	$ 0.71	$ 0.81
Shares used in per share calculation:
Basic	24,153	24,292
Diluted	24,512	24,738
Cash dividends declared per share	$ 0.435	$ 0.420
Sales [Member]
Revenues
Revenues	$ 14,611	$ 14,366
Other [Member]
Revenues
Revenues	$ 828	$ 1,070

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 17,398	$ 20,159
Other comprehensive income (loss):
Foreign currency translation adjustment	52	210
Tax benefit (provision)	(14)	(52)
Comprehensive income	$ 17,436	$ 20,317

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Assets
Cash	$ 2,329	$ 1,238
Accounts receivable, net of allowance for doubtful accounts of $2,100 in 2021 and 2020	122,208	123,316
Rental equipment, at cost:
Relocatable modular buildings	886,299	882,115
Electronic test equipment	342,105	333,020
Liquid and solid containment tanks and boxes	314,444	315,706
Rental equipment, gross	1,542,848	1,530,841
Less accumulated depreciation	(606,905)	(592,725)
Rental equipment, net	935,943	938,116
Property, plant and equipment, net	135,034	136,210
Prepaid expenses and other assets	41,643	41,549
Intangible assets, net	7,069	7,118
Goodwill	28,197	28,197
Total assets	1,272,423	1,275,744
Liabilities:
Notes payable	208,806	222,754
Accounts payable and accrued liabilities	112,551	108,334
Deferred income	50,562	45,975
Deferred income taxes, net	212,819	216,077
Total liabilities	584,738	593,140
Shareholders’ equity:
Common stock, no par value - Authorized 40,000 shares Issued and outstanding - 24,206 shares as of March 31, 2021 and 24,128 shares as of December 31, 2020	104,584	106,289
Retained earnings	583,167	576,419
Accumulated other comprehensive loss	(66)	(104)
Total shareholders’ equity	687,685	682,604
Total liabilities and shareholders’ equity	$ 1,272,423	$ 1,275,744

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Statement Of Financial Position [Abstract]
Allowance for doubtful accounts	$ 2,100	$ 2,100
Common stock, par value
Common stock, shares authorized	40,000,000	40,000,000
Common stock, shares issued	24,206,000	24,128,000
Common Stock, shares outstanding	24,206,000	24,128,000

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
Balance at Dec. 31, 2019	$ 634,036	$ 106,360	$ 527,746	$ (70)
Balance, Shares at Dec. 31, 2019		24,296,000
Net income	20,159		20,159
Share-based compensation	1,723	$ 1,723
Common stock issued under stock Plans, net of shares withheld for employee taxes, Shares		50,000
Repurchased common stock	(7,852)	$ (725)	(7,127)
Repurchased common stock, Shares		(164,000)
Taxes paid related to net share settlement of stock awards	(401)	$ (401)
Dividends accrued of $0.435 and $0.42 per share for three months ended March 31, 2021 and March 31,2020	(10,219)		(10,219)
Other comprehensive income	158			158
Balance at Mar. 31, 2020	637,604	$ 106,957	530,559	88
Balance, Shares at Mar. 31, 2020		24,182,000
Balance at Dec. 31, 2020	$ 682,604	$ 106,289	576,419	(104)
Balance, Shares at Dec. 31, 2020	24,128,000	24,128,000
Net income	$ 17,398		17,398
Share-based compensation	1,777	$ 1,777
Common stock issued under stock Plans, net of shares withheld for employee taxes, Shares		78,000
Taxes paid related to net share settlement of stock awards	(3,482)	$ (3,482)
Dividends accrued of $0.435 and $0.42 per share for three months ended March 31, 2021 and March 31,2020	(10,650)		(10,650)
Other comprehensive income	38			38
Balance at Mar. 31, 2021	$ 687,685	$ 104,584	$ 583,167	$ (66)
Balance, Shares at Mar. 31, 2021	24,206,000	24,206,000

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash dividends declared per share	$ 0.435	$ 0.420
Retained Earnings [Member]
Cash dividends declared per share	$ 0.435	$ 0.42

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash Flows from Operating Activities:
Net income	$ 17,398	$ 20,159
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	23,460	23,862
Provision for doubtful accounts	99	552
Share-based compensation	1,777	1,723
Gain on sale of used rental equipment	(4,794)	(4,788)
Foreign currency exchange loss	55	436
Amortization of debt issuance costs	3	3
Change in:
Accounts receivable	1,009	1,713
Prepaid expenses and other assets	(94)	363
Accounts payable and accrued liabilities	(2,633)	(6,383)
Deferred income	4,587	6,943
Deferred income taxes	(3,258)	1,099
Net cash provided by operating activities	37,609	45,682
Cash Flows from Investing Activities:
Purchases of rental equipment	(17,984)	(35,374)
Purchases of property, plant and equipment	(981)	(3,196)
Proceeds from sales of used rental equipment	10,418	10,356
Net cash used in investing activities	(8,547)	(28,214)
Cash Flows from Financing Activities:
Net repayment under bank lines of credit	(13,931)	(1,890)
Repurchase of common stock		(7,852)
Taxes paid related to net share settlement of stock awards	(3,482)	(401)
Payment of dividends	(10,554)	(9,369)
Net cash used in financing activities	(27,967)	(19,512)
Effect of foreign currency exchange rate changes on cash	(4)	44
Net (decrease) increase in cash	1,091	(2,000)
Cash balance, beginning of period	1,238	2,342
Cash balance, end of period	2,329	342
Supplemental Disclosure of Cash Flow Information:
Interest paid, during the period	1,625	2,859
Net income taxes paid, during the period	372	363
Dividends accrued during the period, not yet paid	9,810	10,218
Rental equipment acquisitions, not yet paid	$ 11,095	$ 6,537

Condensed Consolidated Financia

Condensed Consolidated Financial Information	3 Months Ended
	Mar. 31, 2021
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, 2021 and 2020 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, 2021 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 23, 2021 for the year ended December 31, 2020 (the “2020 Annual Report”).

Implemented Accounting Pronounc

Implemented Accounting Pronouncements	3 Months Ended
	Mar. 31, 2021
Accounting Changes And Error Corrections [Abstract]
Implemented Accounting Pronouncements	NOTE 2. IMPLEMENTED ACCOUNTING PRONOUNCEMENTS Effective January 1, 2021, the Company adopted the Financial Accounting Standards Board’s Accounting Standard Update (“ASU”) 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, expected to reduce cost and complexity related to the accounting for income taxes. The ASU removed specific exceptions to the general principles in Topic 740 in Generally Accepted Accounting Principles (GAAP). It eliminated the need for an organization to analyze whether the following apply in a given period: exception to the incremental approach for intra-period tax allocation; exceptions to accounting for basis differences when there are ownership changes in foreign investments; and exception in interim period income tax accounting for year-to-date losses that exceed anticipated losses. The ASU also improved financial statement preparers’ application of income tax-related guidance and simplifies GAAP for: franchise taxes that are partially based on income; transactions with a government that result in a step up in the tax basis of goodwill; separate financial statements of legal entities that are not subject to tax; and enacted changes in tax laws in interim periods. The adoption of this new guidance did not have a material impact on the Company’s consolidated financial statements.

Revenue Recognition

Revenue Recognition	3 Months Ended
	Mar. 31, 2021
Revenue From Contract With Customer [Abstract]
Revenue Recognition	NOTE 3. REVENUE RECOGNITION The Company’s accounting for revenues is governed by two accounting standards. The majority of the Company’s revenues are considered lease or lease related and are accounted for in accordance with Topic 842, 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). 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 and services, or performance obligations, and obtains control when delivery and installation are 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 performance obligation 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 the Company’s 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 $19.1 million and $11.3 million at March 31, 2021 and December 31, 2020, respectively. Sales revenues totaling $3.0 million were recognized during the three months ended March 31, 2021, which were included in the contract liability balance at December 31, 2020. 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 $0.7 million and $1.4 million at March 31, 2021 and December 31, 2020, 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 s 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 finance 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 finance leases and rental income on facility leases. In the three months ended March 31, 2021, the Company’s lease revenues were $98.0 million, consisting of $97.6 million of operating lease revenues and $0.4 million of finance lease revenues. The Company has entered into finance leases to finance certain equipment sales to customers. The lease agreements have a bargain purchase option at the end of the lease term. 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 straight-line basis, which results in a constant rate of return on the unrecovered lease investment. The Company’s finance lease revenues for the three months ended March 31, 2021 include $0.3 million of sales revenues and $0.1 million of interest income. 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 receive 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 and return delivery are considered non-lease revenues. 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 842) and non-lease revenues (within the scope of Topic 606) and the underlying service provided for the three months ended March 31, 2021 and 2020: (in thousands) Mobile Modular TRS- RenTelco Adler Tanks Enviroplex Consolidated Three Months Ended March 31, 2021 Leasing $ 57,803 $ 27,813 $ 12,339 $ — $ 97,955 Non-lease: Rental related services 3,206 608 4,761 — 8,575 Sales 7,620 4,877 608 1,234 14,339 Other 19 305 2 — 326 Total non-lease 10,845 5,790 5,371 1,234 23,240 Total revenues $ 68,648 $ 33,603 $ 17,710 $ 1,234 $ 121,195 2020 Leasing $ 59,235 $ 28,220 $ 14,780 $ — $ 102,235 Non-lease: Rental related services 6,690 719 5,389 — 12,798 Sales 7,256 4,673 498 1,503 13,930 Other 17 451 22 — 490 Total non-lease 13,963 5,843 5,909 1,503 27,218 Total revenues $ 73,198 $ 34,063 $ 20,689 $ 1,503 $ 129,453 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 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.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2021
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) 2021 2020 Weighted-average number of shares of common stock for calculating basic earnings per share 24,153 24,292 Effect of potentially dilutive securities from equity-based compensation 359 446 Weighted-average number of shares of common stock for calculating diluted earnings per share 24,512 24,738 There were no anti-dilutive securities excluded from the computation of diluted earnings per share in the three months ended March 31, 2021 and 2020. The Company has 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 up to 2,000,000 shares of the Company's outstanding common stock (the “Repurchase Plan”). 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 authorized shares will be repurchased, and the Repurchase Plan may be modified, extended or terminated by the Company’s Board of Directors at any time. The following table presents share repurchase activities during the three months ended March 31, 2021 and 2020. As of March 31, 2021, 1,309,805 shares remained authorized for repurchase under the Repurchase Plan. Three Months Ended March 31, (in thousands, except share and per share amounts) 2021 2020 Number of shares repurchased — 163,946 Aggregate purchase price $ — $ 7,851 Average price per repurchased share $ — $ 47.89

Intangible Assets

Intangible Assets	3 Months Ended
	Mar. 31, 2021
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, 2021 December 31, 2020 Trade name Indefinite $ 5,871 $ 5,871 Customer relationships 11 10,644 10,644 Non-compete agreements 5 157 157 16,672 16,672 Less accumulated amortization (9,603 ) (9,554 ) $ 7,069 $ 7,118 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 asset’s 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 last conducted a qualitative analysis of its goodwill and intangible assets in the fourth quarter 2020, with no indicators of impairment. In addition, no impairment triggering events occurred during the three months ended March 31, 2021. Determining 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, 2021 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 2021, and $0.2 million in 2022 through 2026.

Segment Reporting

Segment Reporting	3 Months Ended
	Mar. 31, 2021
Segment Reporting [Abstract]
Segment Reporting	NOTE 6. SEGMENT REPORTING The Company’s four reportable segments are (1) its modular building and portable storage container rental 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 1 – Summary of Significant Accounting Policies” in the Company’s 2020 A nnual R eport. 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 3 1 , 20 2 1 and 20 20 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, 2021 Rental revenues $ 46,657 $ 27,276 $ 12,154 $ — $ 86,087 Rental related services revenues 14,051 740 4,878 — 19,669 Sales and other revenues 7,940 5,587 678 1,234 15,439 Total revenues 68,648 33,603 17,710 1,234 121,195 Depreciation of rental equipment 5,819 11,362 4,074 — 21,255 Gross profit 34,934 14,753 7,043 351 57,081 Selling and administrative expenses 19,237 6,298 6,267 1,335 33,137 Income (loss) from operations 15,697 8,455 776 (984 ) 23,944 Interest (expense) income allocation (1,046 ) (420 ) (431 ) 114 (1,783 ) Income (loss) before provision for income taxes 14,651 7,980 345 (870 ) 22,106 Rental equipment acquisitions 8,428 16,380 (102 ) — 24,706 Accounts receivable, net (period end) 81,378 21,367 13,030 6,433 122,208 Rental equipment, at cost (period end) 886,299 342,105 314,444 — 1,542,848 Rental equipment, net book value (period end) 611,097 159,410 165,436 — 935,943 Utilization (period end) 2 75.8 % 69.2 % 43.0 % Average utilization 2 75.8 % 68.1 % 40.3 % 2020 Rental revenues $ 47,410 $ 27,536 $ 14,560 $ — $ 89,506 Rental related services revenues 18,144 826 5,541 — 24,511 Sales and other revenues 7,644 5,701 588 1,503 15,436 Total revenues 73,198 34,063 20,689 1,503 129,453 Depreciation of rental equipment 5,669 11,832 4,137 — 21,638 Gross profit 36,859 14,757 9,509 531 61,656 Selling and administrative expenses 17,418 6,361 6,824 1,351 31,954 Income (loss) from operations 19,441 8,396 2,685 (820 ) 29,702 Interest (expense) income allocation (1,547 ) (647 ) (661 ) 203 (2,652 ) Income (loss) before provision for income taxes 17,894 7,313 2,024 (617 ) 26,614 Rental equipment acquisitions 19,135 16,075 205 - 35,415 Accounts receivable, net (period end) 79,220 23,949 15,967 6,698 125,834 Rental equipment, at cost (period end) 883,076 341,841 315,581 — 1,540,498 Rental equipment, net book value (period end) 620,138 174,762 180,809 — 975,709 Utilization (period end) 2 78.3 % 63.8 % 47.0 % Average utilization 2 78.7 % 65.3 % 47.8 % 1 . Gross Enviroplex sales revenues were $2,090 and $2,778 for the three months ended March 31, 2021 and 2020, respectively. There were $856 and 1,275 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, 2021 and 2020. Revenues from foreign country customers accounted for 5% and 2% of the Company’s total revenues for the same periods, respectively.

Subsequent Event

Subsequent Event	3 Months Ended
	Mar. 31, 2021
Subsequent Events [Abstract]
Subsequent Event	NOTE 7. SUBSEQUENT EVENT On April 1, 2021 the Company completed the purchase of assets of GRS Holding LLC, DBA Kitchens To Go (“Kitchens To Go”) for $18.3 million cash consideration. Kitchens To Go provides interim and permanent modular kitchen solutions for foodservice providers that require flexible facilities to continue or expand operations. Kitchens To Go will become part of the Mobile Modular division, providing temporary foodservice facilities nationwide.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Mar. 31, 2021
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 842) and non-lease revenues (within the scope of Topic 606) and the underlying service provided for the three months ended March 31, 2021 and 2020: (in thousands) Mobile Modular TRS- RenTelco Adler Tanks Enviroplex Consolidated Three Months Ended March 31, 2021 Leasing $ 57,803 $ 27,813 $ 12,339 $ — $ 97,955 Non-lease: Rental related services 3,206 608 4,761 — 8,575 Sales 7,620 4,877 608 1,234 14,339 Other 19 305 2 — 326 Total non-lease 10,845 5,790 5,371 1,234 23,240 Total revenues $ 68,648 $ 33,603 $ 17,710 $ 1,234 $ 121,195 2020 Leasing $ 59,235 $ 28,220 $ 14,780 $ — $ 102,235 Non-lease: Rental related services 6,690 719 5,389 — 12,798 Sales 7,256 4,673 498 1,503 13,930 Other 17 451 22 — 490 Total non-lease 13,963 5,843 5,909 1,503 27,218 Total revenues $ 73,198 $ 34,063 $ 20,689 $ 1,503 $ 129,453

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2021
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) 2021 2020 Weighted-average number of shares of common stock for calculating basic earnings per share 24,153 24,292 Effect of potentially dilutive securities from equity-based compensation 359 446 Weighted-average number of shares of common stock for calculating diluted earnings per share 24,512 24,738
Summary of Share Repurchase Activity	The following table presents share repurchase activities during the three months ended March 31, 2021 and 2020. Three Months Ended March 31, (in thousands, except share and per share amounts) 2021 2020 Number of shares repurchased — 163,946 Aggregate purchase price $ — $ 7,851 Average price per repurchased share $ — $ 47.89

Intangible Assets (Tables)

Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2021
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, 2021 December 31, 2020 Trade name Indefinite $ 5,871 $ 5,871 Customer relationships 11 10,644 10,644 Non-compete agreements 5 157 157 16,672 16,672 Less accumulated amortization (9,603 ) (9,554 ) $ 7,069 $ 7,118

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Mar. 31, 2021
Segment Reporting [Abstract]
Summarized Financial Information for Company's Reportable Segments	Summarized financial information for the three months ended March 3 1 , 20 2 1 and 20 20 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, 2021 Rental revenues $ 46,657 $ 27,276 $ 12,154 $ — $ 86,087 Rental related services revenues 14,051 740 4,878 — 19,669 Sales and other revenues 7,940 5,587 678 1,234 15,439 Total revenues 68,648 33,603 17,710 1,234 121,195 Depreciation of rental equipment 5,819 11,362 4,074 — 21,255 Gross profit 34,934 14,753 7,043 351 57,081 Selling and administrative expenses 19,237 6,298 6,267 1,335 33,137 Income (loss) from operations 15,697 8,455 776 (984 ) 23,944 Interest (expense) income allocation (1,046 ) (420 ) (431 ) 114 (1,783 ) Income (loss) before provision for income taxes 14,651 7,980 345 (870 ) 22,106 Rental equipment acquisitions 8,428 16,380 (102 ) — 24,706 Accounts receivable, net (period end) 81,378 21,367 13,030 6,433 122,208 Rental equipment, at cost (period end) 886,299 342,105 314,444 — 1,542,848 Rental equipment, net book value (period end) 611,097 159,410 165,436 — 935,943 Utilization (period end) 2 75.8 % 69.2 % 43.0 % Average utilization 2 75.8 % 68.1 % 40.3 % 2020 Rental revenues $ 47,410 $ 27,536 $ 14,560 $ — $ 89,506 Rental related services revenues 18,144 826 5,541 — 24,511 Sales and other revenues 7,644 5,701 588 1,503 15,436 Total revenues 73,198 34,063 20,689 1,503 129,453 Depreciation of rental equipment 5,669 11,832 4,137 — 21,638 Gross profit 36,859 14,757 9,509 531 61,656 Selling and administrative expenses 17,418 6,361 6,824 1,351 31,954 Income (loss) from operations 19,441 8,396 2,685 (820 ) 29,702 Interest (expense) income allocation (1,547 ) (647 ) (661 ) 203 (2,652 ) Income (loss) before provision for income taxes 17,894 7,313 2,024 (617 ) 26,614 Rental equipment acquisitions 19,135 16,075 205 - 35,415 Accounts receivable, net (period end) 79,220 23,949 15,967 6,698 125,834 Rental equipment, at cost (period end) 883,076 341,841 315,581 — 1,540,498 Rental equipment, net book value (period end) 620,138 174,762 180,809 — 975,709 Utilization (period end) 2 78.3 % 63.8 % 47.0 % Average utilization 2 78.7 % 65.3 % 47.8 % 1 . Gross Enviroplex sales revenues were $2,090 and $2,778 for the three months ended March 31, 2021 and 2020, respectively. There were $856 and 1,275 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 .

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Disaggregation Of Revenue [Line Items]
Period for credit risk identified	30 days
Sales revenues totaling	$ 3
Lease revenue	98
Operating lease revenue	97.6
Finance lease revenue	0.4
Finance lease revenue, sales revenue	0.3
Finance lease revenue, interest income	$ 0.1
Period for warranties for rental equipment	90 days
Period for warranties for equipment manufactured	1 year
Deferred Income [Member]
Disaggregation Of Revenue [Line Items]
Customer contract liability	$ 19.1	$ 11.3
Accounts Receivable [Member]
Disaggregation Of Revenue [Line Items]
Unbilled contract assets	$ 0.7	$ 1.4

Revenue Recognition - Summary o

Revenue Recognition - Summary of Disaggregates the Company's Revenue by Lease and Non Lease (Detail) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2021	Mar. 31, 2020
Disaggregation Of Revenue [Line Items]
Leasing revenues		$ 98,000
Total non-lease revenues		15,439	$ 15,436
Total revenues		121,195	129,453
Leasing [Member]
Disaggregation Of Revenue [Line Items]
Leasing revenues		97,955	102,235
Non-lease Rental Related Services [Member]
Disaggregation Of Revenue [Line Items]
Total non-lease revenues		8,575	12,798
Non-lease Sales [Member]
Disaggregation Of Revenue [Line Items]
Total non-lease revenues		14,339	13,930
Non-lease Other [Member]
Disaggregation Of Revenue [Line Items]
Total non-lease revenues		326	490
Non-lease Revenues [Member]
Disaggregation Of Revenue [Line Items]
Total non-lease revenues		23,240	27,218
Mobile Modular [Member]
Disaggregation Of Revenue [Line Items]
Total non-lease revenues		7,940	7,644
Total revenues		68,648	73,198
Mobile Modular [Member] | Leasing [Member]
Disaggregation Of Revenue [Line Items]
Leasing revenues		57,803	59,235
Mobile Modular [Member] | Non-lease Rental Related Services [Member]
Disaggregation Of Revenue [Line Items]
Total non-lease revenues		3,206	6,690
Mobile Modular [Member] | Non-lease Sales [Member]
Disaggregation Of Revenue [Line Items]
Total non-lease revenues		7,620	7,256
Mobile Modular [Member] | Non-lease Other [Member]
Disaggregation Of Revenue [Line Items]
Total non-lease revenues		19	17
Mobile Modular [Member] | Non-lease Revenues [Member]
Disaggregation Of Revenue [Line Items]
Total non-lease revenues		10,845	13,963
TRS-RenTelco [Member]
Disaggregation Of Revenue [Line Items]
Total non-lease revenues		5,587	5,701
Total revenues		33,603	34,063
TRS-RenTelco [Member] | Leasing [Member]
Disaggregation Of Revenue [Line Items]
Leasing revenues		27,813	28,220
TRS-RenTelco [Member] | Non-lease Rental Related Services [Member]
Disaggregation Of Revenue [Line Items]
Total non-lease revenues		608	719
TRS-RenTelco [Member] | Non-lease Sales [Member]
Disaggregation Of Revenue [Line Items]
Total non-lease revenues		4,877	4,673
TRS-RenTelco [Member] | Non-lease Other [Member]
Disaggregation Of Revenue [Line Items]
Total non-lease revenues		305	451
TRS-RenTelco [Member] | Non-lease Revenues [Member]
Disaggregation Of Revenue [Line Items]
Total non-lease revenues		5,790	5,843
Adler Tanks [Member]
Disaggregation Of Revenue [Line Items]
Total non-lease revenues		678	588
Total revenues		17,710	20,689
Adler Tanks [Member] | Leasing [Member]
Disaggregation Of Revenue [Line Items]
Leasing revenues		12,339	14,780
Adler Tanks [Member] | Non-lease Rental Related Services [Member]
Disaggregation Of Revenue [Line Items]
Total non-lease revenues		4,761	5,389
Adler Tanks [Member] | Non-lease Sales [Member]
Disaggregation Of Revenue [Line Items]
Total non-lease revenues		608	498
Adler Tanks [Member] | Non-lease Other [Member]
Disaggregation Of Revenue [Line Items]
Total non-lease revenues		2	22
Adler Tanks [Member] | Non-lease Revenues [Member]
Disaggregation Of Revenue [Line Items]
Total non-lease revenues		5,371	5,909
Enviroplex [Member]
Disaggregation Of Revenue [Line Items]
Total non-lease revenues	[1]	1,234	1,503
Total revenues	[1]	1,234	1,503
Enviroplex [Member] | Non-lease Sales [Member]
Disaggregation Of Revenue [Line Items]
Total non-lease revenues		1,234	1,503
Enviroplex [Member] | Non-lease Revenues [Member]
Disaggregation Of Revenue [Line Items]
Total non-lease revenues		$ 1,234	$ 1,503
[1]	Gross Enviroplex sales revenues were $2,090 and $2,778 for the three months ended March 31, 2021 and 2020, respectively. There were $856 and 1,275

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, 2021	Mar. 31, 2020
Earnings Per Share [Abstract]
Weighted-average number of shares of common stock for calculating basic earnings per share	24,153	24,292
Effect of potentially dilutive securities from equity-based compensation	359	446
Weighted-average number of shares of common stock for calculating diluted earnings per share	24,512	24,738

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Detail) - shares	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Aug. 31, 2015
Earnings Per Share Basic [Line Items]
Anti-dilutive securities excluded from computation of diluted earnings per share	0	0
Shares remain authorized for repurchase	1,309,805
Maximum [Member]
Earnings Per Share Basic [Line Items]
Common stock shares authorized for repurchase			2,000,000

Earnings Per Share - Summary of

Earnings Per Share - Summary of Share Repurchase Activity (Detail) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)$ / sharesshares
Earnings Per Share [Abstract]
Number of shares repurchased | shares	163,946
Aggregate purchase price | $	$ 7,851
Average price per repurchased share | $ / shares	$ 47.89

Intangible Assets - Summary of

Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Finite Lived Intangible Assets [Line Items]
Trade name	$ 5,871	$ 5,871
Customer relationships	10,644	10,644
Non-compete agreements	157	157
Intangible Assets, gross	16,672	16,672
Less accumulated amortization	(9,603)	(9,554)
Intangible Assets, net	$ 7,069	$ 7,118
Customer Relationships [Member]
Finite Lived Intangible Assets [Line Items]
Estimated useful life in years	11 years
Non-compete Agreements [Member]
Finite Lived Intangible Assets [Line Items]
Estimated useful life in years	5 years

Intangible Assets - Additional

Intangible Assets - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Goodwill And Intangible Assets Disclosure [Abstract]
Impairment of goodwill and intangible assets	$ 0	$ 0
Subsequent impairment of the underlying assets	0
Expected annual amortization expense for 2021	200,000
Expected annual amortization expense for 2022	200,000
Expected annual amortization expense for 2023	200,000
Expected annual amortization expense for 2024	200,000
Expected annual amortization expense for 2025	200,000
Expected annual amortization expense for 2026	$ 200,000

Segment Reporting - Additional

Segment Reporting - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2021SegmentCustomer	Mar. 31, 2020Customer
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	5.00%	2.00%

Segment Reporting - Summarized

Segment Reporting - Summarized Financial Information for Company's Reportable Segments (Detail) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Segment Reporting Information [Line Items]
Rental revenues		$ 86,087	$ 89,506
Rental related services revenues		19,669	24,511
Sales and other revenues		15,439	15,436
Total revenues		121,195	129,453
Depreciation of rental equipment		21,255	21,638
Gross profit		57,081	61,656
Selling and administrative expenses		33,137	31,954
Income from operations		23,944	29,702
Interest (expense) income allocation		(1,783)	(2,652)
Income (loss) before provision for income taxes		22,106	26,614
Rental equipment acquisitions		24,706	35,415
Accounts receivable, net (period end)		122,208	125,834	$ 123,316
Rental equipment, at cost (period end)		1,542,848	1,540,498	1,530,841
Rental equipment, net book value (period end)		935,943	975,709	$ 938,116
Mobile Modular [Member]
Segment Reporting Information [Line Items]
Rental revenues		46,657	47,410
Rental related services revenues		14,051	18,144
Sales and other revenues		7,940	7,644
Total revenues		68,648	73,198
Depreciation of rental equipment		5,819	5,669
Gross profit		34,934	36,859
Selling and administrative expenses		19,237	17,418
Income from operations		15,697	19,441
Interest (expense) income allocation		(1,046)	(1,547)
Income (loss) before provision for income taxes		14,651	17,894
Rental equipment acquisitions		8,428	19,135
Accounts receivable, net (period end)		81,378	79,220
Rental equipment, at cost (period end)		886,299	883,076
Rental equipment, net book value (period end)		$ 611,097	$ 620,138
Utilization (period end)	[1]	75.80%	78.30%
Average utilization	[1]	75.80%	78.70%
TRS-RenTelco [Member]
Segment Reporting Information [Line Items]
Rental revenues		$ 27,276	$ 27,536
Rental related services revenues		740	826
Sales and other revenues		5,587	5,701
Total revenues		33,603	34,063
Depreciation of rental equipment		11,362	11,832
Gross profit		14,753	14,757
Selling and administrative expenses		6,298	6,361
Income from operations		8,455	8,396
Interest (expense) income allocation		(420)	(647)
Income (loss) before provision for income taxes		7,980	7,313
Rental equipment acquisitions		16,380	16,075
Accounts receivable, net (period end)		21,367	23,949
Rental equipment, at cost (period end)		342,105	341,841
Rental equipment, net book value (period end)		$ 159,410	$ 174,762
Utilization (period end)	[1]	69.20%	63.80%
Average utilization	[1]	68.10%	65.30%
Adler Tanks [Member]
Segment Reporting Information [Line Items]
Rental revenues		$ 12,154	$ 14,560
Rental related services revenues		4,878	5,541
Sales and other revenues		678	588
Total revenues		17,710	20,689
Depreciation of rental equipment		4,074	4,137
Gross profit		7,043	9,509
Selling and administrative expenses		6,267	6,824
Income from operations		776	2,685
Interest (expense) income allocation		(431)	(661)
Income (loss) before provision for income taxes		345	2,024
Rental equipment acquisitions		(102)	205
Accounts receivable, net (period end)		13,030	15,967
Rental equipment, at cost (period end)		314,444	315,581
Rental equipment, net book value (period end)		$ 165,436	$ 180,809
Utilization (period end)	[1]	43.00%	47.00%
Average utilization	[1]	40.30%	47.80%
Enviroplex [Member]
Segment Reporting Information [Line Items]
Sales and other revenues	[2]	$ 1,234	$ 1,503
Total revenues	[2]	1,234	1,503
Gross profit	[2]	351	531
Selling and administrative expenses	[2]	1,335	1,351
Income from operations	[2]	(984)	(820)
Interest (expense) income allocation	[2]	114	203
Income (loss) before provision for income taxes	[2]	(870)	(617)
Accounts receivable, net (period end)	[2]	$ 6,433	$ 6,698
[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 $2,090 and $2,778 for the three months ended March 31, 2021 and 2020, respectively. There were $856 and 1,275

Segment Reporting - Summarize_2

Segment Reporting - Summarized Financial Information for Company's Reportable Segments (Parenthetical) (Detail) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2021	Mar. 31, 2020
Segment Reporting Information [Line Items]
Revenues		$ 121,195	$ 129,453
Sales revenues		(15,439)	(15,436)
Sales [Member]
Segment Reporting Information [Line Items]
Sales revenues		(14,611)	(14,366)
Enviroplex [Member]
Segment Reporting Information [Line Items]
Revenues	[1]	1,234	1,503
Sales revenues	[1]	(1,234)	(1,503)
Mobile Modular [Member]
Segment Reporting Information [Line Items]
Revenues		68,648	73,198
Sales revenues		(7,940)	(7,644)
Operating Segments [Member] | Enviroplex [Member] | Sales [Member]
Segment Reporting Information [Line Items]
Revenues		2,090	2,778
Inter-segment Eliminations [Member] | Mobile Modular [Member]
Segment Reporting Information [Line Items]
Sales revenues		$ 856	$ 1,275
Type of Revenue [Extensible List]		Sales [Member]	Sales [Member]
[1]	Gross Enviroplex sales revenues were $2,090 and $2,778 for the three months ended March 31, 2021 and 2020, respectively. There were $856 and 1,275

Subsequent Event - Additional I

Subsequent Event - Additional Information (Detail) $ in Millions	Apr. 01, 2021USD ($)
Subsequent Event [Member] | GRS Holding LLC, DBA Kitchens To Go [Member]
Subsequent Event [Line Items]
Purchase of assets	$ 18.3