Interest expense was $11 million, an increase of $7.7 million as the result of higher average interest rates and $242 million higher average debt levels during the quarter, which was primarily the result of funding or acquisitions. The third quarter provision for income taxes was based on an effective tax rate of 27.3% compared to 25.3% a year earlier. Turning to our year-to-date cash flow highlights, net cash provided by operating activities was $119 million, compared to $133 million in the prior year with transaction expenses, accounting for most of the reduction. Rental equipment purchases, excluding equipment received from recent acquisitions were $171 million, compared to $130 million in the prior year. The total cash paid for acquisitions year-to-date of Vesta, Brekke, Dixie and Inland was $462 million, emphasizing our strategic initiatives to grow the modular and portable storage businesses.
Proceeds from the sale of Adler Tank Rentals earlier this year was $268 million. In addition to significant investments in new fleet, and the acquisitions, healthy cash generation allowed us to pay $34 million in shareholder dividends. At quarter end, we had net borrowings of $668 million comprised of $175 million notes outstanding and $493 million under our credit facility with capacity to borrow an additional $157 million under our lines of credit. The ratio of funded debt to the last 12 months actual adjusted EBITDA was 2.03 to 1. Finally, our updated 2023 financial outlook. For the full year, we currently expect results from continuing operations to be total revenue between $820 and $830 million adjusted EBITDA between $312 and $320 million, gross rental equipment capital expenditures between $190 and $200 million.
Our outlook reflects the following expectations for the final quarter of the year. Modular rental revenues up sequentially from the third quarter. Modular rental related services revenues at a level comparable to the first quarter of 2023. We expect fewer site related services projects in the fourth quarter compared to the seasonally busier second and third quarters. Modular sales revenues comparable to the fourth quarter of 2022. Modular other direct costs of rental operations comparable to the third quarter as we continue to prepare buildings for new rental opportunities. Overall TRS performance comparable to the third quarter with the potential for some normal seasonal reduction in business levels towards year end. Total McGrath selling and administrative expenses, up sequentially from the third quarter.
We are very proud of McGrath strong third quarter performance, and we are fully focused on solid execution for the remainder of the year. That concludes our prepared remarks. Travis, you may now open the lines for questions.
Operator: Thank you, sir. [Operator Instructions] We do have a question from Scott Schneeberger, Oppenheimer.
Scott Schneeberger: Thanks very much. Good afternoon. I’d like to focus in most on Mobile Modular, what was volume in the quarter? It looks like it was plus 3%. And Joe, did you say that you think you were taking market share gains? And then one more question on that, Joe, you mentioned positive indicators into 2024, please elaborate on that as far as the business momentum? Thank you.
Joe Hanna: Sure. I mean, as far as business volume, Scott, shipments have been up sequentially, each quarter from Q2 to Q3. And we are estimating that that is going to be the case, again in Q4. So I mean, our shipment volume has been healthy. And we anticipate that for the remainder of the year. Also back that up to say that our quote volumes are healthy, and the business has been very steady. So we feel very confident about how we’re going to end this year. In looking at 2024, I would say that, based on what I just said, our – since our quote volumes are healthy, our commercial activity is steady. We are seeing just very high levels of funding for construction projects across the country. The Infrastructure and Jobs Act, has funded projects across all 50 states.
