IPO Company Profile
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National Equipment Services, Inc.
1800 Sherman Avenue, Evanston, IL 60201 * (847) 733-1000

The company is a leading participate in the growing and highly fragmented $18 billion rental industry. Through its 14 acquired businesses, NES specializes in the rental of specialty and general equipment to industrial and construction end-users.

Primary Underwriting Group
ManagerTierPhone
Salomon Smith BarneyLead Manager (212) 723-7300
CS First BostonCo-manager (212) 325-2000
Donaldson, Lufkin & Jenrette Securities Corp.Co-manager (212) 371-0641
Nationsbanc Montgomery Securities, Inc.Co-manager (415) 627-2100
William Blair & CompanyCo-manager (312) 364-8990

Offering Information
NYSE:NSV Financial: SIC 6719
Type of Shares:Common Shares Filing Date:4/2/98
U.S. Shares:7,000,000 Offer Date:7/14/98
Non-U.S. Shares:0 Filing Range:$13.00 - $15.00
Primary Shares:7,000,000 Offer Price:$13.50
Secondary Shares:0 Gross Spread:$0.94
Offering Amount: $98,000,000 Selling:$0.55
Expenses: - Reallowance:$0.10
Post-IPO Shares:28,400,000
Employees:1072

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Kirkland & Ellis
Bank's Law Firm: Latham & Watkins
Auditor: Price Waterhouse

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Audited
Income
Balance
Sheet
12/31/97 12/31/97
Revenue:$41.29Assets:$131.14
Net Income:$1.11Curr Assets:
EPS:Liabilities:$104.66
Prior EPS:Curr Liab:
Cash Flow/Oper:$7.38Equity:$26.47
Cash Flow/Fin:$109.79Cash:$35.68
Cash Flow/Inv:-$81.50

Competition
The equipment rental industry is highly fragmented and competitive. The Company's competitors include: large national companies; regional competitors which operate in one or two states; small, independent businesses with one or two rental locations; and equipment vendors and dealers who both sell and rent equipment to customers. Some of the Company's competitors have greater financial resources, are more geographically diverse and have greater name recognition than the Company. There can be no assurance that the Company will not encounter increased competition from existing competitors or new market entrants that may be significantly larger and have greater financial and marketing resources. In addition, to the extent existing or future competitors seek to gain or retain market share by reducing prices, the Company may be required to lower its prices and rates, thereby adversely affecting operating results. Existing or future competitors also may seek to compete with the Company for acquisitions, which could have the effect of increasing the price for acquisitions or reducing the number of suitable acquisitions.

Business Plan
The Company intends to attain its objective by continuing to execute the following growth strategy: (I) Acquire Specialty and General Equipment Rental Businesses, (ii) Increase Revenues from Industrial Customers, (iii) Maximize High-Margin Rental Revenues Through Efficient Fleet Management and (iv) Leverage New Remanufacturing Center.

Use of Proceeds
The proceeds from the proposed offering will be used to fund the acquisition of Falconite, repay indebtedness outstanding under the Credit Facility and fund the mandatory redemption.

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