According to industry sources, the equipment rental market in the United States was a $29.3 billion industry in 2005 and experienced a 10.4% compound annual growth rate between 1990 and 2005. This market is expected to grow to $32.5 billion by the end of 2007.

The equipment rental industry encompasses a wide range of rental equipment from small tools to heavy earthmoving equipment, and growth is largely driven by two key factors. First, there is an increasing trend towards renting versus purchasing equipment. The penetration rate for equipment rental in the United States has expanded in line with the increasing recognition of the benefits that equipment rental offers compared to equipment ownership.

Industry sources estimate there has been an overall growth in rental industry penetration from 5% of total equipment deployed in 1993 to 35% in 2005. Second, the industry has experienced growth in its primary end-markets, which comprise the non-residential construction and industrial markets.

In 2002 and 2003, industry rental revenues decreased by approximately $1.0 billion from the level reached in 2001. This decrease reflected significant weakness in private non-residential construction activity, which declined by 13.2% in 2002 and by an additional 4.5% in 2003 according to U.S. Census Bureau data. According to U.S. Census Bureau data, private non-residential construction activity increased 5.5% in 2004 compared with 2003 and increased 7.2% in 2005 compared to 2004.

The equipment rental industry remains highly fragmented, with large numbers of companies operating on a regional or local scale and the top 10 companies combined accounting for less than 30% of the market by 2005 rental revenues.

The Company offers for rent over 1,400 categories of equipment on an hourly, daily, weekly or monthly basis. The type of equipment that the Company offers ranges from large equipment such as backhoes, forklifts, air compressors, scissor lifts, booms and skid-steer loaders to smaller items such as pumps, generators, welders and electric hand tools.

The Company routinely sells used rental equipment and invests in new equipment to manage the age, size and composition of its fleet and to adjust to changes in demand for specific rental products. The Company sells used rental equipment primarily through its existing branch network and, to a lesser extent through other means, including through third parties such as equipment auctions and brokers.

As a convenience for its customers, the Company offers for sale a broad selection of contractor supplies, including safety equipment such as hard hats and goggles, consumables such as blades and gloves, tools such as ladders, and shovels and certain other ancillary products. The Company also sells a small amount of new equipment.

From January 2005 to September 30, 2006, the average age of the Company’s fleet declined from 39.8 months to 24.6 months.

Total operating expenses increased $13.1 million, or 11.5%, from $114.4 million for the nine months ended September 30, 2005 to $127.6 million for the nine months ended September 30, 2006.

Operating income increased $101.1 million, or 46.1%, from $219.5 million for the nine months ended September 30, 2005 to $320.6 million for the nine months ended September 30, 2006.

Interest expense increased $24.1 million, or 48.8%, from $49.4 million for the nine months ended September 30, 2005 to $73.5 million for the nine months ended September 30, 2006.

Net income increased $44.5 million, or 40.5%, from $110.0 million for the nine months ended September 30, 2005 to $154.5 million for the nine months ended September 30, 2006.