TRS-RenTelco, our electronic test equipment division, rental revenues for the quarter increased by $1.8 million, or 7% to $26.5 million from a year ago. Divisional income from operations increased by 24% from the third quarter of 2011 to $10.2 million. The significantly higher percentage increase in profitability as compared to rental revenues was primarily related to lower direct SG&A and equipment depreciation expenses, partially offset by higher laboratory costs, all as a percentage of rental revenues from a year ago. Our results for TRS-RenTelco continue to reflect its discipline in strategic focus, strong brand following, operational efficiencies and an exceptionally talented and tenured work force.Adler Tank Rentals, our tank and box division, rental revenues increased by $0.8 million, or 5% to $16.9 million from a year ago. Divisional income from operations decreased by $1.9 million or 20% year over year to $7.6 million. The decrease in profitability was primarily due to lower utilization driving higher rental equipment depreciation as a percentage of rental revenues, and higher inventory center costs from a year ago. As a result of the ongoing reduction in dry natural gas production in the Northeast and markedly lower utilization of Adler’s 21,000 gallon tank fleet in the region, we moved a large number of units to other regions, primarily to fill order opportunities. The one-time costs to transport these tanks were a material portion of the increase in inventory center expenses compared to a year ago.
McGrath RentCorp Announces Results For Third Quarter 2012
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