EVANSTON, Ill. - National Equipment Services announced record revenue but reduced net income for the third quarter and the nine-month period ended Sept. 30.

Total third-quarter revenue increased from $132.1 million to $167.5 million, a 26.8 percent jump year over year, while year-to-date revenue was up 39.8 percent, from $329.5 million to $460.5 million. Rental revenue increased 30.1 percent in the quarter, from $98.1 million last year to $127.6 million, and year-to-date rental revenue jumped 45.6 percent, from $236.9 million to $345 million.

EBITDA also increased, from $54.5 million in Q3 '99 to $63.2 million this year, a 16.2 percent leap, with a 31.3 percent boost in the nine-month period - $167.6 million this year, up from $127.7 million last year.

Net income is the only category that did not grow, declining from $9.2 million in the third quarter of 1999 to $5.7 million this year. CEO Kevin Rodgers attributed the decline to soft rental rates in some markets as well as costs associated with starting up 17 locations in the past 12 months. Rodgers said the company has taken steps to reduce costs, including improved information systems for local managers. "We also completed most of NES' capital spending program and are focusing on reducing our debt."

Rodgers said he is optimistic about the company's long-term growth prospects. "There has been no change in our industry fundamentals," he said. "Record numbers of companies are finding that it is more cost-effective for them to outsource their equipment needs to companies such as NES. The issue has been near-term pricing, as companies are jockeying for position in a consolidating industry.

"Given continued equipment demand, our stronger focus on equipment returns, our new equipment refurbishing center coming on line in January and our strong cash flows, NES has the ability to ride out the current industry uncertainty while positioning itself for long-term earnings and revenue growth."

NES is No. 5 on the RER 100. It has 192 locations in 35 states.