Financial Analysis

"NOTE 3. BUSINESS COMBINATIONS During the quarter ended June 30, 2026, the Company completed the acquisition of a regional provider of temporary and permanent modular space solutions for a total purchase price of $ 11.3 million, subject to a holdback payment of $ 1.2 million. The preliminary purchase price allocation was $ 7.0 million to the fair value of rental equipment acquired, $ 0.2 million to intangible assets, $ 4.8 million to goodwill, less acquired net working capital and deferred income taxes. The acquisition expanded the Mobile Modular operations in the mid-west region of the United States. The acquisition was accounted for as a purchase of a business in accordance with criteria in ASC 805, Business Combinations (""ASC 805""), using the purchase method of accounting. Incremental transaction costs totaled $ 0.2 million for the six months ended June 30, 2026. During the year ended December 31, 2025, the Company completed the acquisition of a regional provider of temporary and permanent modular space solutions for $ 11.8 million and a regional provider of container solutions for $ 12.0 million. The final purchase price allocation of the modular solutions provider was $ 6.3 million to the fair value of rental equipment acquired, intangible assets of $ 1.1 million and $ 4.3 million to goodwill. The final purchase price allocation to the container solutions provider was $ 4.5 million to the fair value of rental equipment acquired, $ 1.0 million to property, plant and equ …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

The following table disaggregates the Companys 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 and six months ended June 30, 2026 and 2025: (in thousands) Mobile Modular Portable Storage TRS- RenTelco Enviroplex Consolidated Three Months Ended June 30, 2026 Leasing $ 112,522 $ 17,342 $ 32,847 $ $ 162,711 Non-lease: Rental related services 6,711 4,235 1,180 12,126 Sales 31,179 1,853 8,152 4,616 45,800 Other 12 89 374 475 Total non-lease 37,902 6,177 9,706 4,616 58,401 Total revenues $ 150,424 $ 23,519 $ 42,553 $ 4,616 $ 221,112 2025 Leasing $ 107,971 $ 17,383 $ 28,837 $ $ 154,191 Non-lease: Rental related services 7,498 4,123 794 12,415 Sales 40,484 1,712 6,444 19,866 68,506 Other 35 128 341 504 Total non-lease 48,017 5,963 7,579 19,866 81,425 Total revenues $ 155,988 $ 23,346 $ 36,416 $ 19,866 $ 235,616 Six Months Ended June 30, 2026 Leasing $ 220,286 $ 34,100 $ 62,731 $ $ 317,117 Non-lease: Rental related services 12,411 7,792 2,088 22,291 Sales 52,074 3,457 15,673 8,120 79,324 Other 55 100 767 922 Total non-lease 64,540 11,349 18,528 8,120 102,537 Total revenues $ 284,826 $ 45,449 $ 81,259 $ 8,120 $ 419,654 2025 Leasing $ 212,735 $ 33,975 $ 55,401 $ $ 302,111 Non-lease: Rental related services 12,127 7,512 1,474 21,113 Sales 62,974 2,956 13,866 27,079 106,875 Other 70 169 694 933 Total non-lease 75,171 10,637 16,034 27,079 128,921 Total revenues $ 287,906 $ 44,612 $ 71 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

NOTE 7. GOODWILL AND INTANGIBLE ASSETS Intangible assets consist of the following: (dollar amounts in thousands) Estimated useful life in years Average remaining life in years Cost Accumulated amortization Net book value June 30, 2026 Customer relationships 6 to 11 5.7 $ 75,783 $( 37,404 ) $ 38,379 Non-compete agreements 5 1.9 10,916 ( 8,308 ) 2,608 Trade name 0.75 to 8 2.6 2,068 ( 1,596 ) 472 Total amortizing 88,767 ( 47,308 ) 41,459 Trade name - non-amortizing Indefinite 171 171 Total $ 88,938 $( 47,308 ) $ 41,630 December 31, 2025 Customer relationships 6 to 11 6.1 $ 75,734 $( 33,243 ) $ 42,491 Non-compete agreements 5 2.1 10,806 ( 7,351 ) 3,455 Trade name 0.75 to 8 3.3 2,000 ( 1,512 ) 488 Total amortizing 88,540 ( 42,106 ) 46,434 Trade name - non-amortizing Indefinite 171 171 Total $ 88,711 $( 42,106 ) $ 46,605 Goodwill consisted of the following: (dollar amounts in thousands) Mobile Modular Portable Storage Enviroplex Total Balance at December 31, 2025 $ 319,574 $ 11,212 $ 1,798 $ 332,584 Goodwill acquired through business combinations 4,764 4,764 Balance at June 30, 2026 $ 324,338 $ 11,212 $ 1,798 $ 337,348 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 assets 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 t …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 4. REVENUE RECOGNITION The Companys accounting for revenues is governed by two accounting standards. The majority of the Companys 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 Topic 606, Revenue from Contracts with Customers . 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 Companys 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 Companys 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. Revenue from contracts that satisfy the criteria for over time recognition are recognized as work is performed by using the ratio of costs incurred to estimated total contract c …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"NOTE 8. SEGMENT REPORTING FASB guidelines establish annual and interim reporting standards for an enterprises operating segments and related disclosures about its products, services, geographic areas and major customers. In accordance with these guidelines, the Companys four reportable segments are Mobile Modular, Portable Storage, TRS-RenTelco and Enviroplex. The Company's Chief Operating Decision Maker (""CODM"") Phil Hawkins, Chief Executive Officer, and senior management focus on several key measures to evaluate and assess each segments 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 Companys 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 occur …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing