"Our fleet replenishment cycle is on schedule with the average age of our tractor fleet reaching 1.70 years as of December 2012, down from 2.67 years at December 2011 and 3.47 years at its peak in April 2011. We took delivery of approximately 600 tractors and 600 trailers in 2012 and plan to continue a similar cycle through 2013. We are very pleased with the improvements we have seen in fuel efficiency, maintenance costs, driver and customer satisfaction and CSA scores as a result of the newer fleet. In addition, our truck fleet was equipped with electronic on-board recorders (EOBR's) for all of 2012, well in advance of the July 2015 mandated implementation. The real time driver availability information provided by EOBR's has enhanced our safety programs as well as increased utilization through our ability to plan more effectively. We believe there are additional opportunities to further leverage this information and will aggressively implement these initiatives in 2013.

"The driver market continued to tighten throughout 2012, but we ended the year with 260 more drivers and 143 more owner operators than we ended with in 2011. We continue to focus on programs and processes centered in our driving associates and our dedication to creating value for them with PAM in an intensely competitive market.

"As we become more satisfied with the diversification of our customer base, we have greatly intensified our focus on premium service in order to create satisfaction, loyalty and growth within our customer base. We continue to increase the percentage of our total revenue earned from Mexico, Expedited Services, and Dedicated operations while being very systematic and disciplined in our choices of origins, destinations and pricing within our general, random offering.

"We made significant progress towards the goal of sustainable profitability during 2012, but will not be satisfied until we can overcome months like December that pose specific challenges to profitability. We would like to commend our dedicated employees and thank our customers, suppliers and shareholders for their continued commitment and support."

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