v3.25.0.1
Segment Reporting
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
In January 2024, the Company completed the unification of its go-to market structure by integrating its modular and storage divisions under a single leadership team organized by geography, achieving local product unification within each metropolitan statistical area and the ability to consistently deliver its portfolio of solutions to its entire customer base. In connection with this change in operating model, the Company realigned the composition of its operating and reportable segments to reflect how its Chief Operating Decision Maker ("CODM") reviews financial information to allocate resources to and assess performance of the segments. As a result, the Company concluded that its two operating segments (US and Other North America) are aggregated into one reportable segment as the operating segments share similar economic characteristics (e.g., comparable gross margins and comparable adjusted earnings before interest, taxes, depreciation and amortization margins) and similar qualitative characteristics as the operating segments offer similar products and services to similar customers, use similar methods to distribute products and are subject to similar competitive risks. All historical financial segment information has been recast to conform to this new presentation.
The Company's CODM is the Chief Executive Officer ("CEO"), who reviews operating results to make decisions about allocating resources and assessing performance for the entire company.
Refer to Note 4 for revenue by geographic area and revenue by major product and service lines. Refer to Note 7 for rental equipment by geographic area. Refer to the Consolidated Balance Sheet for total assets. Refer to the Consolidated Statement of Cash Flows for total expenditures for additions to long-lived assets.
The Company defines EBITDA as net income (loss) plus interest (income) expense, income tax (benefit) expense, depreciation and amortization. The Company reflects further adjustments to EBITDA (“Adjusted EBITDA”) to exclude certain non-cash items and the effect of what the Company considers transactions or events not related to its core and ongoing business operations. The measure of profit or loss used by the CODM to evaluate operating segment performance and allocate resources is Adjusted EBITDA. Adjusted EBITDA is used to determine capital allocation between operating segments and certain aspects of management's compensation. Management believes that evaluating operating segment performance excluding such items is meaningful because it provides insight with respect to the intrinsic and ongoing operating results of the Company. The Company considers Adjusted EBITDA to be an important metric because it reflects the business performance of the segments, inclusive of indirect costs.
The following tables set forth certain information regarding significant expense categories for the years ended December 31, 2024, 2023, and 2022, respectively.
Year Ended December 31,
(in thousands)202420232022
Revenues:
Leasing and services revenue:
Unit leasing and other rental-related$1,442,235 $1,441,987 $1,278,065 
VAPS and third party leasing397,640 391,948 343,625 
Delivery revenue224,371 273,598 267,320 
Installation revenue194,510 163,581 161,832 
Sales revenue:
New units74,499 48,129 40,338 
Rental units62,463 45,524 51,443 
Total revenues2,395,718 2,364,767 2,142,623 
Less:(a)
Costs of leasing and services:
Unit leasing316,422 328,124 311,441 
VAPS and third party leasing68,656 70,343 65,427 
Delivery176,551 185,639 194,821 
Installation152,329 131,478 127,815 
Costs of sales:
New units45,554 26,439 24,011 
Rental units32,224 23,141 26,907 
Employee SG&A expense(b)
247,886 257,327 268,136 
Other segment items(c)
292,936 280,811 240,191 
Adjusted EBITDA from continuing operations$1,063,160 $1,061,465 $883,874 
(a) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
(b) Employee SG&A expense consists of salaries and wages, bonus, commissions, payroll taxes, and employee benefits.
(c) Other segment items consist of service agreements and professional fees, real estate and occupancy costs, travel, bad debt expense, marketing and advertising, taxes, and other miscellaneous expenses.
The following tables present a reconciliation of the Company’s Income from continuing operations to Adjusted EBITDA for the years ended December 31, 2024, 2023, and 2022, respectively:
Year Ended December 31,
(in thousands)202420232022
Income from continuing operations$28,129 $341,844 $276,341 
Income tax expense from continuing operations8,475 126,575 88,863 
Depreciation and amortization384,972 338,654 319,099 
Interest expense, net227,311 205,040 146,278 
Impairment loss on intangible asset132,540 — — 
Restructuring costs, lease impairment expense and other related charges9,435 22 168 
Currency losses, net593 6,754 886 
Transaction costs651 2,259 25 
Integration costs7,521 10,366 15,484 
Impairment loss on long-lived asset374 — — 
Stock compensation expense35,966 34,486 29,613 
Termination fee180,000 — — 
Other(a)
47,193 (4,535)7,117 
Adjusted EBITDA from continuing operations$1,063,160 $1,061,465 $883,874 
(a) Includes $42.4 million in legal and professional fees related to the terminated McGrath transaction for the year ended December 31, 2024.