"We are proud of our success to date in capturing a significant share of expanding global LNG equipment demand," said Mr. Thomas. "We remain optimistic that we will have the appropriate products and capacity available to continue to capitalize on the emerging, secular LNG growth trends this year and at an accelerating pace in future years."
He continued, "While the LNG infrastructure build-out is advancing at a rapid pace in China, in North America the investments have not as yet accelerated at the rate many had forecast. We do not believe this reflects any decline in interest among the major players. Rather it is a lead time issue related to production scale up of LNG-powered truck engines and construction of LNG liquefaction capacity in the short term. We expect both of these bottlenecks to be resolved over the coming year, likely yielding higher demand in 2014. In the meantime, our capacity additions have positioned us well to exceed customer expectations as we enter the next leg up in demand."
Selling, general and administrative ("SG&A") expenses for the fourth quarter of 2012 increased $12.8 million to $48.0 million compared with the same period in 2011. The increase was largely due to the AirSep acquisition, as well as higher employee-related costs as we continue to invest in growth opportunities. SG&A as a percent of sales was 15.8% compared with 16.0% in the prior year quarter.
Interest expense was $4.0 million for the fourth quarter of 2012, which included $2.3 million of non-cash accretion expense associated with the Company's Convertible Notes. Therefore, cash interest was $1.7 million.Income tax expense was $7.7 million for the fourth quarter and represented an effective tax rate of 26.7% compared with $2.7 million for the prior year's fourth quarter, or an effective tax rate of 24.8%. The full year effective tax rate for 2012 was 29.9%, which compares to 29.7% for 2011.
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