v3.25.2
Segment Reporting
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Reporting

NOTE 8. SEGMENT REPORTING

FASB guidelines establish annual and interim reporting standards for an enterprise’s operating segments and related disclosures about its products, services, geographic areas and major customers. In accordance with these guidelines, the Company’s four reportable segments are Mobile Modular, Portable Storage, TRS-RenTelco and Enviroplex. The Company's Chief Operating Decision Maker ("CODM") Joe Hanna, Chief Executive Officer, and senior management focus on several key measures to evaluate and assess each segment’s performance, including rental, rental related services and sales revenue growth, gross profit, income from operations and income before provision for income taxes. In addition to the evaluation of the aforementioned key measures of each reportable segment, the CODM and senior management evaluate supplemental information by reportable segment, such as rental equipment acquisitions, fleet utilization, and average utilization, to further assess segment performance and the future allocation of Company resources.

The CODM is the primary individual in control of resource allocation, and the allocation determinations are made in consultation with the Company’s senior management team, of which the CODM is a member. The most significant allocation determinations made by the CODM pertain to purchases of rental equipment and employee headcount. These determinations are generally made as part of the annual budgeting process, with regular reviews occurring throughout the year that can result in allocation changes depending upon performance against budget. On a monthly basis, the CODM considers period end and average rental equipment utilization and budget-to-actual variances to gross profit, income from operations and income before provision for income taxes when making decisions about allocating capital and employee resources to the segments. Excluding interest expense, allocations of revenue and expense not directly associated with one of these segments are generally allocated to Mobile Modular, Portable Storage and TRS-RenTelco, based on their pro-rata share of direct revenues. Interest expense is allocated amongst Mobile Modular, Portable Storage and TRS-RenTelco based on their pro-rata share of average rental equipment at cost, goodwill, intangible assets, accounts receivable, deferred income and customer security deposits. The Company does not report total assets by business segment.

Summarized financial information for the six months ended June 30, 2025 and 2024, for the Company’s reportable segments is shown in the following tables:

(dollar amounts in thousands)

 

Mobile
Modular

 

 

Portable Storage

 

 

TRS-
RenTelco

 

 

Enviroplex1

 

 

Consolidated

 

Six Months Ended June 30,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental revenues

 

$

160,404

 

 

$

33,014

 

 

$

52,680

 

 

$

—

 

 

$

246,098

 

Rental related services revenues

 

 

61,647

 

 

 

8,025

 

 

 

1,727

 

 

 

—

 

 

 

71,399

 

Sales

 

 

62,974

 

 

 

2,956

 

 

 

15,692

 

 

 

27,079

 

 

 

108,701

 

Other

 

 

2,881

 

 

 

617

 

 

 

1,336

 

 

 

—

 

 

 

4,834

 

Total revenues

 

 

287,906

 

 

 

44,612

 

 

 

71,435

 

 

 

27,079

 

 

 

431,032

 

Costs of Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation of rental equipment

 

 

21,294

 

 

 

2,070

 

 

 

19,567

 

 

 

—

 

 

 

42,931

 

Rental related services

 

 

40,190

 

 

 

8,237

 

 

 

1,363

 

 

 

—

 

 

 

49,790

 

Other

 

 

44,802

 

 

 

3,445

 

 

 

10,924

 

 

 

—

 

 

 

59,171

 

Costs of sales

 

 

42,926

 

 

 

1,879

 

 

 

8,343

 

 

 

18,842

 

 

 

71,990

 

Total costs of revenues

 

 

149,212

 

 

 

15,631

 

 

 

40,197

 

 

 

18,842

 

 

 

223,882

 

Gross profit

 

 

138,694

 

 

 

28,981

 

 

 

31,238

 

 

 

8,237

 

 

 

207,150

 

Significant Segment Expenses 3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wages and benefits

 

 

29,734

 

 

 

6,933

 

 

 

5,810

 

 

 

2,411

 

 

 

44,888

 

Depreciation and amortization

 

 

7,101

 

 

 

749

 

 

 

35

 

 

 

204

 

 

 

8,089

 

Marketing and administrative expenses

 

 

9,598

 

 

 

3,352

 

 

 

2,678

 

 

 

1,173

 

 

 

16,801

 

Allocated corporate services 4

 

 

23,949

 

 

 

3,742

 

 

 

6,139

 

 

 

—

 

 

 

33,830

 

Other segment items 5

 

 

383

 

 

 

325

 

 

 

96

 

 

 

—

 

 

 

804

 

Total expenses

 

 

70,765

 

 

 

15,101

 

 

 

14,758

 

 

 

3,788

 

 

 

104,412

 

Income from operations

 

 

67,929

 

 

 

13,880

 

 

 

16,480

 

 

 

4,449

 

 

 

102,738

 

Interest expense (income) allocation

 

 

12,914

 

 

 

1,852

 

 

 

2,410

 

 

 

(1,222

)

 

 

15,954

 

Foreign currency exchange gain

 

 

—

 

 

 

—

 

 

 

(86

)

 

 

—

 

 

 

(86

)

Income before provision for income taxes

 

$

55,015

 

 

$

12,028

 

 

$

14,156

 

 

$

5,671

 

 

$

86,870

 

Reconciliation of Segment Profit (Loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total segment gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

$

207,150

 

Segment operating expenses, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

104,412

 

Interest expense allocation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15,954

 

Foreign currency exchange gain

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(86

)

Income before provision for income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

$

86,870

 

Other Selected Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental equipment acquisitions

 

$

34,479

 

 

$

618

 

 

$

18,399

 

 

 

—

 

 

$

53,496

 

Accounts receivable, net (period end)

 

$

177,549

 

 

$

12,857

 

 

$

23,085

 

 

$

20,310

 

 

$

233,801

 

Rental equipment, at cost (period end)

 

$

1,443,314

 

 

$

244,261

 

 

$

333,171

 

 

—

 

 

$

2,020,746

 

Rental equipment, net book value (period end)

 

$

1,071,846

 

 

$

220,048

 

 

$

101,788

 

 

—

 

 

$

1,393,682

 

Utilization (period end) 2

 

 

73.1

%

 

 

61.8

%

 

 

64.8

%

 

 

 

 

 

 

Average utilization 2

 

 

74.2

%

 

 

60.6

%

 

 

63.0

%

 

 

 

 

 

 

 

(dollar amounts in thousands)

 

Mobile
Modular

 

 

Portable Storage

 

 

TRS-
RenTelco

 

 

Enviroplex1

 

 

Consolidated

 

Six Months Ended June 30,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental revenues

 

$

154,535

 

 

$

36,230

 

 

$

50,743

 

 

$

—

 

 

$

241,508

 

Rental related services revenues

 

 

53,053

 

 

 

9,363

 

 

 

1,522

 

 

 

—

 

 

 

63,938

 

Sales

 

 

61,256

 

 

 

2,478

 

 

 

12,657

 

 

 

13,092

 

 

 

89,483

 

Other

 

 

3,287

 

 

 

711

 

 

 

1,511

 

 

 

—

 

 

 

5,509

 

Total revenues

 

 

272,131

 

 

 

48,782

 

 

 

66,433

 

 

 

13,092

 

 

 

400,438

 

Costs of Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation of rental equipment

 

 

19,870

 

 

 

1,965

 

 

 

22,696

 

 

 

—

 

 

 

44,531

 

Rental related services

 

 

35,608

 

 

 

8,932

 

 

 

1,236

 

 

 

—

 

 

 

45,776

 

Other

 

 

43,938

 

 

 

2,995

 

 

 

9,997

 

 

 

—

 

 

 

56,930

 

Costs of sales

 

 

39,584

 

 

 

1,484

 

 

 

5,658

 

 

 

9,792

 

 

 

56,518

 

Total costs of revenues

 

 

139,000

 

 

 

15,377

 

 

 

39,587

 

 

 

9,792

 

 

 

203,755

 

Gross profit

 

 

133,131

 

 

 

33,405

 

 

 

26,846

 

 

 

3,300

 

 

 

196,683

 

Significant Segment Expenses 3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wages and benefits

 

 

28,201

 

 

 

7,035

 

 

 

5,210

 

 

 

2,283

 

 

 

42,729

 

Depreciation and amortization

 

 

6,758

 

 

 

801

 

 

 

53

 

 

 

193

 

 

 

7,805

 

Marketing and administrative expenses

 

 

8,829

 

 

 

3,058

 

 

 

2,732

 

 

 

1,038

 

 

 

15,657

 

Allocated corporate services 4

 

 

22,620

 

 

 

4,082

 

 

 

5,796

 

 

 

—

 

 

 

32,498

 

Other segment items 5

 

 

446

 

 

 

299

 

 

 

32

 

 

 

—

 

 

 

777

 

Total expenses

 

 

66,854

 

 

 

15,275

 

 

 

13,823

 

 

 

3,515

 

 

 

99,467

 

Other income, net

 

 

(6,220

)

 

 

(1,319

)

 

 

(1,742

)

 

 

—

 

 

 

(9,281

)

Income from operations

 

 

72,499

 

 

 

19,450

 

 

 

14,765

 

 

 

(215

)

 

 

106,497

 

Interest expense (income) allocation

 

 

19,971

 

 

 

2,867

 

 

 

4,121

 

 

 

(1,218

)

 

 

25,741

 

Foreign currency exchange loss

 

 

—

 

 

 

—

 

 

 

163

 

 

 

—

 

 

 

163

 

Income before provision for income taxes

 

$

52,528

 

 

$

16,583

 

 

$

10,481

 

 

$

1,003

 

 

$

80,593

 

Reconciliation of Segment Profit (Loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total segment gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

$

196,683

 

Segment operating expenses, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

99,467

 

Other income, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(9,281

)

Interest expense allocation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

25,741

 

Foreign currency exchange loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

163

 

WillScot Mobile Mini transaction costs 6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

21,721

 

Income before provision for income taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

$

58,872

 

Other Selected Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental equipment acquisitions

 

$

118,300

 

 

$

7,403

 

 

$

10,623

 

 

 

—

 

 

$

136,326

 

Accounts receivable, net (period end)

 

$

170,966

 

 

$

12,231

 

 

$

20,333

 

 

$

13,849

 

 

$

217,379

 

Rental equipment, at cost (period end)

 

$

1,398,475

 

 

$

242,107

 

 

$

368,324

 

 

—

 

 

$

2,008,906

 

Rental equipment, net book value (period end)

 

$

1,058,041

 

 

$

221,486

 

 

$

127,795

 

 

—

 

 

$

1,407,322

 

Utilization (period end) 2

 

 

78.1

%

 

 

64.5

%

 

 

55.8

%

 

 

 

 

 

 

Average utilization 2

 

 

78.6

%

 

 

67.8

%

 

 

56.4

%

 

 

 

 

 

 
1.
Gross Enviroplex sales revenues were $27,079 and $13,093 for the six months ended June 30, 2025 and 2024, respectively. There were no inter-segment sales to Mobile Modular in the six months ended June 30, 2025 and $2 of inter-segment sales to Mobile Modular in the six months ended June 30, 2024, which required elimination 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 new equipment inventory and accessory equipment. The average utilization for the period is calculated using the average costs of rental equipment.
3.
The Significant Segment Expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
4.
Allocated corporate services costs are comprised of expenses incurred by the Company which are not directly incurred by each business segment as a part of their normal operations. These allocated indirect corporate costs primarily include wages and benefits, depreciation of corporate capital assets, information technology, legal, accounting and other administrative expenses.
5.
Other segment items for each reportable segment is primarily comprised of credit losses.
6.
During the six months ended June 30, 2024, the Company incurred $21,721 of transaction costs attributed to the terminated merger with WillScot Mobile Mini.

No single customer accounted for more than 10% of total revenues for the six months ended June 30, 2025 and 2024. Revenues from foreign country customers accounted for 2% of the Company’s total revenues for the same periods, respectively.