EVANSTON, Ill. - National Equipment Services reported a slight drop in net income for the second quarter ended June 30 despite increased revenue. Although the company grossed $158.7 million in total revenue in the second quarter, up from $109.8 million in Q2 1999 - $117.9 in rental, up from $78.9 last year - the combination of an aggressive startup campaign and slow business in the Gulf Coast region negatively affected earnings.
Although the investment in 24 startup locations over the previous 18 months posed a near-term drain on performance, "we believe this is far outweighed by the long-term gains they provide through access to growing markets," CEO Kevin Rodgers said. Same-store rental revenue grew 17 percent in the second quarter.
NES totaled $293 million in revenue for the first six months of 2000, a 48.5 percent increase from the same period of 1999, with $217.4 million in rental revenue, up 56.7 percent year over year. EBITDA increased 40 percent in the second quarter to $60.2 million, up from $42.9 million from Q2 '99.
NES' board of directors authorized the company to repurchase 1.5 million shares. "We continue to believe that our program to maximize returns at existing operations, reduce total debt, and make acquisitions or develop new locations only when they represent an exceptional value will bring NES good levels of long-term growth and profitability," Rodgers said.
NES, No. 5 on the RER 100, has acquired 41 businesses since January 1997. It has 184 locations in 35 states.
