Business Resource Services

Sources of Revenues

	10% to 29% General Tool		30% to 59% General Tool		60% to 89% General Tool*		90% to 100% General Tool*
	All	Top 25%	All	Top 25%	All	Top 25%	All	Top 25%
Rental Income	75.5%	76.2%	73.4%	79.5	72.0		67.6%
Merchandise and Fuel Sales	14.2	15.5	16.9	12.5	19.2		25.3
Damage Waiver	2.2	1.6	2.5	2.6	2.0		1.8
Used Equipment Sales	3.2	3.0	2.6	1.6	2.4		1.4
Delivery, Set-up, Pick-up	2.6	2.3	1.8	1.6	2.0		0.4
Consulting/Creative Service	0.0	0.0	0.1	0.2	0.2		0.0
Outside Repairs to Customer-Owned Equipment	1.1	0.9	0.9	0.6	0.7		1.3
Other Labor Income	0.1	0.1	0.5	0.1	1.1		1.1
All Other Revenue	1.1	0.4	1.3	1.3	0.6		0.6
Total Revenues	100.0%	100.0%	100.0%	100.0%	100.0%		100.0%
Direct Costs	34.7	33.2	32.1	25.5	41.3		37.2
Gross Margin	65.3%	66.8%	67.9%	74.5%	58.7%		62.8%

Median Total Revenues	$1,296,744	$1,222,157	$964,117	$810,556	$784,988		$697,115

* Insufficient number of responses to present results for top 25%

Source: Common-Sized Income Statement, General Tool Rental Companies, Appendix B-3. The figures presented here are averages with the exception of Median Total Revenues from Appendix B-2, Median Financial Operating Ratios

Companies in the category 90% to 100% general tool had the lowest sales. Note that the figures presented at Appendix B-3 are averages, which can be significantly impacted by a few unusual companies. For this reason, the direct cost and gross margin percentages will not necessarily agree to the median ratios presented at Appendix B-2.

TREND NOTE: Gross margin increased by 2% for companies in both the 30% to 59% and 90% to 100% general tool categories as compared to the 1999 study results.

TREND NOTE:
Gross margin increased by 2% for companies in both the 30% to 59% and 90% to 100% general tool categories as compared to the 1999 study results.

Managing both direct costs and selling, general and administrative expenses contributes to the high operating profits for the top 25%.