Gross margin on new equipment sales was 11.2% compared to 10.0% in the fourth quarter a year ago. Gross margin on used equipment sales was 30.2% compared to 25.9% a year ago. Gross margin on parts sales was 27.4% in this quarter and 27.0% a year ago. Gross margin on service revenues was 59.4% compared to 60.2% in the prior year.

Rental Fleet

At the end of the fourth quarter of 2012, the original acquisition cost of the Company’s rental fleet was $883.0 million, an increase of $146.4 million from $736.6 million at the end of 2011. Dollar utilization was 36.4% compared to 33.9% for the fourth quarter of 2011. Dollar returns increased reflecting higher year-over-year average rental rates.

Selling, General and Administrative Expenses

SG&A expenses for the fourth quarter of 2012 were $45.1 million compared with $38.7 million last year, a $6.4 million, or 16.7%, 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 fourth quarter of 2012, SG&A expenses as a percentage of total revenues were 18.1% compared to 17.8% a year ago.

Income from Operations

Income from operations for the fourth quarter of 2012 was $28.5 million, or 11.4% of revenues, compared with $17.7 million, or 8.1% of revenues, a year ago.

Interest Expense

Interest expense for the fourth quarter of 2012 was $11.9 million compared to $7.1 million in the fourth quarter of 2011.

Net Income

Net income was $10.7 million, or $0.31 per diluted share, compared to net income of $7.9 million, or $0.23 per diluted share, a year ago. The effective income tax rate was 36.1% compared to 26.0% a year ago.

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