Question-and-Answer Session
Operator
(Operator instructions) We'll have our first question from Brandt Sakakeeny with Deutsche Bank.
Brandt Sakakeeny – Deutsche Bank
Thanks. Hi, John and Leslie, a couple of questions. First, can you talk about the softer markets? Do you feel like business is stabilized in those markets or sort of bumping along the bottom or have you yet to see the bottom in those markets?
John Engquist
I think in Florida and southern California that those markets have stabilized or bottomed out, whatever term you want to use. I don't see any big recovery there. I mean, we are not seeing our own rents go up a lot or anything like that, but we have seen the markets stabilize. What we have done is significantly de-fleet those markets and right size our fleets there which I do believe will improve our financial performance going forward. So, not a lot of recovery, but we don't see further deterioration there right now.
Brandt Sakakeeny – Deutsche Bank
Okay, great. And just with respect to the Burress business, can you talk to perhaps the growth rate that you would expect out of that business in the next 12 months?
John Engquist
I don't know that we can guide you to the growth rate. They're in a difficult environment. Their market has softened considerably particularly on the earthmoving side of their business, which is a significant component of their business. So, some of those markets are off 30%, 40%, 50%. So it's a challenging environment from a market standpoint. And to be going through an integration and everything we're throwing at them, it's tough right now; it's a challenging market. I can tell you we are making steady progress. We're putting the rental infrastructure in place, we're creating a rental culture and we're going to start benefiting from that. And I think that's where we have a lot of upside in that acquisition is on the rental side. So, we're making steady progress.
Brandt Sakakeeny – Deutsche Bank
Okay. I guess, Leslie, I've talked to a couple of other folks in the business and I think there was some benefit from some of the tax provisions in the stimulus package. Are you going to benefit from those same incentives on your ability to expedite I guess the depreciation of equipment and the impact on your free cash flow for this year?
Leslie Magee
Yes. We definitely expect a benefit on our cash taxes this year. We expect some savings over – a little bit of savings over our 2007 cash tax level. But definitely some savings in comparison to our original forecast before the federal stimulus package was put in place.
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