Financial Data and Key Metrics Changes - Total revenues decreased by 4% to $256 million, with rental operations increasing by 4% and sales revenues decreasing by 18% [13] - Adjusted EBITDA decreased by 7% to $96.5 million, while net income decreased by 8% to $42.3 million [13][14] - Diluted earnings per share decreased by $0.15 to $1.72 [13] Business Line Data and Key Metrics Changes - Mobile Modular total revenues decreased by 5% to $181.5 million, with rental revenues up by 2% and rental-related services revenues up by 5%, offset by a 21% decrease in sales revenues [13][14] - Portable Storage rental revenues increased by 1% year over year to $17.3 million, marking the first year-over-year growth since Q1 of the previous year [15] - TRS RenTelco total revenues increased by 6% to $36.9 million, driven by a 9% increase in rental revenues [16] Market Data and Key Metrics Changes - Utilization rates for Mobile Modular decreased to 72.6% from 77.1% a year earlier, while Portable Storage utilization was at 61.4% compared to 62.8% a year ago [14][15] - Average monthly revenue per unit on rent increased by 6% year over year to $865 [14] Company Strategy and Development Direction - The company is focused on expanding its modular and portable storage businesses, entering new regions, and increasing coverage through acquisitions [11] - The strategy includes becoming a national modular solutions provider capable of serving diverse customer needs [11] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing market uncertainties but expressed optimism due to increased booked orders and stable pricing [5][10] - The company has upwardly revised its full-year financial outlook, expecting total revenue between $935 million and $955 million [20] Other Important Information - The company is managing the impact of tariffs effectively, with minimal effects on results [10] - Cash flow highlights include net cash provided by operating activities of $175 million and a decrease in rental equipment purchases to $92 million [19] Q&A Session Summary Question: Can you address the lumpiness of sales activity? - Management confirmed that sales backlog is strong and projects that did not close in Q3 will move into Q4, maintaining a positive sales outlook [23][24] Question: Is the business on an upward trajectory? - Management anticipates continued growth, emphasizing the importance of being positioned to meet customer needs [25][26] Question: How is the education sector performing? - Management reported solid funding for education projects, with significant bonds passed in California and Texas, indicating a positive outlook for the education business [29][30] Question: What is the rate environment like? - Rates are holding steady, with efforts to maintain rental rates despite some transportation cost concessions [31][32] Question: How is visibility for TRS heading into next year? - Management noted strong bookings and rental order volume, indicating positive momentum heading into Q4 [38][39] Question: Can you elaborate on technology investments? - Management highlighted ongoing technology investments to keep systems relevant and customer-friendly [44][45] Question: What is the cash usage prioritization for next year? - Management indicated a strong free cash flow position, allowing for flexibility in acquisitions and capital expenditures [70][72] Question: How are the recent acquisitions progressing? - The two small acquisitions are integrated and contributing positively, with no red flags noted [63][65]