Rush Enterprises Inc. Reports Fourth Quarter and Year-End Results
SAN ANTONIO--Feb. 20, 2001--Rush Enterprises Inc. , which operates the largest network of Peterbilt heavy-duty truck dealerships in North America, as well as John Deere construction equipment dealerships in Texas and Michigan, and three of the largest farm and ranch superstores (D&D) in America, today announced results for the fourth quarter and year ended Dec. 31, 2000.In the fourth quarter, the Company's gross revenues totaled $211.6 million, a 6.5 percent decrease from gross revenues of $226.3 million reported for the fourth quarter ended Dec. 31, 1999. The Company reported a net loss for the quarter of $1.6 million, or $0.23 per share, a 133.3 percent decrease compared to net income of $4.8 million, or $0.66 per diluted share reported in the quarter ended Dec. 31, 1999. These results include $1.25 million of pretax loss provision recognized during the fourth quarter of 2000 to increase the Company's reserve for new and used truck valuation losses.
For the year ended Dec. 31, 2000, the Company's gross revenues totaled $897.4 million, an 11.0 percent increase over gross revenues of $808.4 million reported during 1999. Net income for the year ended 2000 was $3.3 million, or $0.47 per diluted share, a 79.6 percent decrease from net income of $16.2 million, or $2.34 per diluted share reported during 1999.
The Company's heavy-duty truck segment recorded revenues of $170.6 million in the fourth quarter of 2000, compared to $189.7 million in the fourth quarter of 1999. The Company delivered 1,310 and 462 new and used trucks, respectively, during the fourth quarter of 2000 compared to 1,483 and 504 new and used trucks, respectively, for the same period in 1999. Parts, service and body shop sales increased 21.3 percent from $34.2 million to $41.5 million from the fourth quarter of 1999 to the fourth quarter of 2000.
The Company's construction equipment segment recorded revenues of $28.1 million in the fourth quarter of 2000, compared to $29.2 million in the fourth quarter of 1999. The Company delivered 296 and 113 new and used construction equipment units, respectively, during the fourth quarter of 2000 compared to 319 and 172 new and used construction equipment units, respectively, for the same period in 1999. Parts and service sales increased 3.8 percent from $5.3 million to $5.5 million from the fourth quarter of 1999 to the fourth quarter of 2000. Rental sales decreased from $2.3 million to $1.4 million, or 39.1 percent, from the fourth quarter of 1999 to the fourth quarter of 2000.
In announcing the results, W. Marvin Rush, chairman and chief executive officer of Rush Enterprises, said, "As indicated by our fourth quarter and year-end results, the truck and construction equipment markets remain soft. The oversupply of used trucks and high fuel prices continue to be the main reasons for the decline in our markets. The heavy-duty truck industry as a whole, expects to deliver approximately 115,000 new trucks in the United States during 2001, compared to approximately 211,147 and 248,000 new trucks during 2000 and 1999, respectively. Although we have taken the steps necessary to operate in this environment, this will impact our sales and earnings. As always we look forward to the challenge and we remain positioned to take advantage of any opportunities that may arise."
RUSH ENTERPRISES INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands - unaudited)
2000 1999
-------- --------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 18,892 $ 20,004
Accounts receivable, net 20,350 29,767
Inventories 177,915 173,565
Prepaid expenses and other 3,800 736
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Total current assets 220,957 224,072
PROPERTY AND EQUIPMENT, net 130,532 103,426
OTHER ASSETS, net 37,885 38,198
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Total assets $389,374 $365,696
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Floor plan notes payable $146,272 $150,862
Current maturities of long-term debt 11,379 8,463
Advances outstanding under lines of
credit 33,779 10,953
Trade accounts payable 14,157 9,710
Accrued expenses 17,909 20,516
Note payable to shareholder -- 20,725
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Total current liabilities 223,496 221,229
LONG-TERM DEBT, net of current
maturities 79,607 65,414
DEFERRED INCOME TAXES, net 8,094 4,201
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Preferred stock, par value $.01 per
share; 1,000 shares authorized; 0
shares outstanding in 2000 and 1999 -- --
Common stock, par value $.01 per
share; 25,000 shares authorized;
7,002 shares outstanding - 2000
and 1999 70 70
Additional paid-in capital 39,155 39,155
Retained earnings 38,952 35,627
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Total shareholders' equity 78,177 74,852
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Total liabilities and
shareholders' equity $389,374 $365,696
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RUSH ENTERPRISES INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except earnings per share - unaudited)
Three months ended Year ended
December 31, December 31,
---------------------- ---------------------
2000 1999 2000 1999
--------- --------- --------- ---------
REVENUES:
New and used
truck sales $ 126,507 $ 153,349 $ 571,159 $ 554,571
Parts and
service 44,528 35,981 177,874 130,548
Construction
equipment sales 20,886 20,851 77,685 62,042
Lease and
rental 6,947 7,102 29,143 25,375
Finance and
insurance 934 2,752 7,437 13,581
Retail sales 10,864 5,008 30,245 18,573
Other 905 1,213 3,885 3,665
--------- --------- --------- ---------
TOTAL REVENUES 211,571 226,256 897,428 808,355
COST OF PRODUCTS
SOLD 174,697 188,497 742,957 673,563
--------- --------- --------- ---------
GROSS PROFIT 36,874 37,759 154,471 134,792
SELLING,
GENERAL AND
ADMINISTRATIVE 32,461 25,066 123,413 93,502
DEPRECIATION AND
AMORTIZATION 2,620 1,892 9,449 6,162
--------- --------- --------- ---------
OPERATING INCOME 1,793 10,801 21,609 35,128
INTEREST
EXPENSE, NET 4,431 2,842 16,068 8,185
--------- --------- --------- ---------
INCOME (LOSS)
BEFORE INCOME
TAXES (2,638) 7,959 5,541 26,943
PROVISION
(BENEFIT) FOR
INCOME TAXES (1,056) 3,184 2,216 10,777
--------- --------- --------- ---------
NET INCOME
(LOSS) $ (1,582) $ 4,775 $ 3,325 $ 16,166
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EARNINGS (LOSS)
PER SHARE:
Basic $ (0.23) $ 0.68 $ 0.47 $ 2.40
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Diluted $ (0.23) $ 0.66 $ 0.47 $ 2.34
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Weighted average
shares outstanding
Basic 7,002 7,002 7,002 6,735
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Diluted 7,002 7,180 7,008 6,887
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