Gross margin on new equipment sales was 11.6% compared to 9.9% in the third quarter a year ago driven primarily by improved crane margins. Gross margin on used equipment sales was 23.4% compared to 24.6% a year ago which was largely due to the mix of used equipment sold. Gross margin on parts sales increased to 26.7% from 26.1% a year ago. Gross margin on service revenues increased to 61.6% from 58.3% in the prior year.
At the end of the third quarter of 2011, the original acquisition cost of the Company’s rental fleet was $726.1 million, an increase of $60.6 million from $665.5 million at the end of the third quarter of 2010 and an increase of $41.0 million from $685.1 million at the end of 2010. Dollar utilization was 33.7% compared to 29.2% for the third quarter of 2010. Dollar returns increased reflecting higher year-over-year average rental rates and improved time utilization.
Selling, General and Administrative ExpensesSG&A expenses for the third quarter of 2011 were $39.0 million compared with $36.6 million last year, a $2.4 million, or 6.7%, increase. The net increase in SG&A expenses is largely a result of increased commission and incentive pay that resulted from higher rental and sales revenues. For the third quarter of 2011, SG&A expenses as a percentage of total revenues were 21.2% compared to 23.8% a year ago. Income from Operations Income from operations for the third quarter of 2011 was $15.1 million, or 8.2% of revenues, compared with $1.5 million, or 0.9% of revenues, a year ago. Interest Expense Interest expense for the third quarter of 2011 was $7.2 million compared to $7.3 million in 2010. Net Income (Loss) Net income was $4.8 million, or $0.14 per diluted share, compared to net loss of $3.8 million, or ($0.11) per diluted share, a year ago. The effective income tax rate was 39.1% compared to 35.1% a year ago.
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