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Filed Pursuant to Rule 424(b)(3)
SEC File No. 333-69997
NationsRent, Inc.
SUPPLEMENT NO. 1 DATED SEPTEMBER 9, 1999
TO PROSPECTUS DATED JUNE 30, 1999
The Prospectus dated June 30, 1999 of NationsRent, Inc. ("NationsRent")
is hereby supplemented as follows:
The Recent Developments section of the Prospectus Summary is hereby
amended to disclose the sale of NationsRent's preferred stock and the interim
operating results for the quarter ended June 30, 1999 as set forth below:
In July 1999, we entered into a Preferred Stock Purchase Agreement with
NR Holdings Limited and NR Investments Limited, affiliates of Investcorp, S.A. a
global investment group with a prior successful investment in the equipment
rental industry, to sell 100,000 shares of our perpetual Series A Convertible
Preferred Stock for an aggregate purchase price of $100,000,000. The 100,000
shares of preferred stock are convertible into approximately 14.3 million shares
of our common stock at any time, based on a liquidation preference of $1,000 per
share of preferred stock and a conversion price of $7.00 per share of common
stock. The private placement of $78.0 million was completed in July and the
private placement of $22.0 million was completed in August following approval
from our stockholders pursuant to a special meeting of the stockholders.
Proceeds from the private placement were used to pay down amounts outstanding
under our senior credit facilities. The holders of the preferred stock were
granted certain demand and piggy-back registration rights with respect to the
shares of our common stock issuable upon conversion of the preferred stock.
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INTERIM OPERATING RESULTS
On August 16, 1999, we filed our Quarterly Report on Form 10-Q for the
quarter ended June 30, 1999 which contained, among other financial information,
our unaudited consolidated operating results for the three months and six months
ended June 30, 1999 and 1998, as set forth below:
NATIONSRENT, INC. UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(Thousands, Except Per Share Data)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
----------------------- -----------------------
1999 1998 1999 1998
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<S> <C> <C> <C> <C>
Revenue:
Equipment rentals .................................... $ 96,928 $ 18,108 $ 172,028 $ 24,019
Sales of equipment, merchandise, service, parts
and supplies ......................................... 33,381 17,251 60,596 20,379
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Total revenue ................................. 130,309 35,359 232,624 44,398
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Cost of revenue:
Cost of equipment rentals, excluding
depreciation ......................................... 37,521 6,823 66,833 9,484
Rental equipment depreciation ........................ 13,383 4,042 25,008 5,118
Cost of sales of equipment, merchandise, service,
parts and supplies ................................... 22,465 12,226 40,631 14,479
--------- -------- --------- --------
Total cost of revenue ......................... 73,369 23,091 132,472 29,081
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Gross profit ........................................... 56,940 12,268 100,152 15,317
Operating expenses:
Selling, general and administrative expenses ......... 24,489 7,093 43,496 8,852
Expenses related to abandoned merger, net ............ 3,932 -- 3,932 --
Non-rental equipment depreciation and
amortization ......................................... 4,985 621 9,550 1,066
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Operating income ....................................... 23,534 4,554 43,174 5,399
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Other (income)/expense:
Interest expense, net ................................ 15,986 2,614 30,432 3,401
Other, net ........................................... (413) (130) (2,598) (232)
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15,573 2,484 27,834 3,169
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Income before provision for income taxes ............... 7,961 2,070 15,340 2,230
Provision for income taxes ........................... 3,304 870 6,366 937
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Net income ............................................. $ 4,657 $ 1,200 $ 8,974 $ 1,293
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Net income per share-- basic and diluted ............... $ 0.08 $ 0.04 $ 0.16 $ 0.05
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Weighted average common shares outstanding:
Basic ................................................ 55,759 26,726 55,733 25,820
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Diluted .............................................. 64,768 29,711 64,714 28,018
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