All comparisons presented below are for the quarter ended June 30, 2012 to the quarter ended June 30, 2011 unless otherwise indicated.

MOBILE MODULAR

For the second quarter of 2012, the Company’s Mobile Modular division reported a 29% decrease in income from operations to $3.7 million. Rental revenues decreased 1% to $19.5 million and other direct costs decreased 5% to $5.7 million, which resulted in a decrease in gross profit on rental revenues of $0.1 million to $10.3 million. Sales revenues decreased 50% to $2.1 million with gross profit on sales revenues decreasing 58% to $0.5 million, primarily due to lower margins on new and used equipment sales. Selling and administrative expenses increased 6% to $8.3 million primarily as a result of higher facility rent expense and higher salary and benefit costs, primarily related to the expansion of our portable storage growth initiative.

TRS-RENTELCO

For the second quarter of 2012, the Company’s TRS-RenTelco division reported a 6% increase in income from operations to $8.4 million. Rental revenues increased 6% to $24.9 million. The increase in rental revenues together with a 1% decrease in depreciation to $9.3 million and a 6% decrease in other direct costs to $3.4 million, resulted in an increase in gross profit on rental revenues of 16% to $12.2 million. Sales revenues decreased 30% to $4.5 million with gross profit on sales decreasing 27% to $2.3 million, primarily due to higher gross margins on used equipment sales revenues in the second quarter of 2012. Selling and administrative expenses increased 3% to $6.4 million primarily due to increased salary and benefit costs.

ADLER TANKS

For the second quarter of 2012, the Company’s Adler Tanks division reported a 6% decrease in income from operations to $7.4 million. Rental revenues increased 16% to $16.0 million, which resulted in an increase in gross profit on rental revenues of 7% to $11.5 million. Rental related services revenues increased 45% to $4.1 million, with gross profit on rental related services increasing 28% to $1.0 million. Selling and administrative expenses increased 43% to $5.3 million, primarily due to higher bad debt expense, higher allocated corporate expenses as Adler’s revenue grew at a higher rate compared to our other business segments and higher salary and benefit costs to support the continued expansion of Adler’s operations.

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