Rush Enterprises Inc. Reports First Quarter Results
SAN ANTONIO--April 17, 2001--Rush Enterprises Inc. , which operates the largest network of Peterbilt heavy-duty truck dealerships in North America, 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 quarter ended March 31, 2001.In the first quarter, the Company's gross revenues totaled $204.6 million, a 2.6 percent decrease from gross revenues of $210.0 million reported for the first quarter ended March 31, 2000. Net income for the quarter decreased 81.8 percent to $200,000, or $0.02 per share, compared with net income of $1.1 million, or $0.15 per share reported in the quarter ended March 31, 2000.
The Company's heavy-duty truck segment recorded revenues of $172.8 million in the first quarter of 2001, compared to $177.2 million in the first quarter of 2000. The Company delivered 1,387 and 514 new and used trucks, respectively, during the first quarter of 2001 compared to 1,339 and 592 new and used trucks, respectively, for the same period in 2000. Parts, service and body shop sales increased 14.7 percent from $38.2 million to $43.8 million from the first quarter of 2000 to the first quarter of 2001.
The Company's construction equipment segment recorded revenues of $20.3 million in the first quarter of 2001 compared to $25.9 million in the first quarter of 2000. The Company delivered 155 and 59 new and used construction equipment units, respectively, during the first quarter of 2001 compared to 182 and 89 new and used construction equipment units, respectively, for the same period in 2000. Parts and service sales were $5.5 million during both the first quarter of 2001 and the first quarter of 2000. Rental sales decreased from $1.9 million to $800,000, or 55.9 percent, from the first quarter of 2000 to the first quarter of 2001.
In announcing the results, W. Marvin Rush, chairman and chief executive officer of Rush Enterprises, said, "We hope to see the market tick up in the second half of the year, however, year 2001 U.S. new truck deliveries are still predicted to be down approximately 40% from prior year levels. Although industry conditions remain weak, I am satisfied with growth in the back-ends of our business and the progress we are making in terms of servicing niche markets, such as the oil and gas, refuse, and construction industries. We believe the Company is positioned to take advantage of any opportunities that may arise."
RUSH ENTERPRISES INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands -- unaudited)
March 31, December 31,
2001 2000
(Unaudited) (Audited)
ASSETS -------- --------
CURRENT ASSETS:
Cash and cash equivalents $ 19,535 $ 18,892
Accounts receivable, net 21,841 20,350
Inventories 155,210 177,915
Prepaid expenses and other 1,624 3,800
-------- --------
Total current assets 198,210 220,957
PROPERTY AND EQUIPMENT, net 128,095 130,532
OTHER ASSETS, net 37,488 37,885
-------- --------
Total assets $363,793 $389,374
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Floor plan notes payable $123,177 $146,272
Current maturities of long-term debt 11,361 11,379
Advances outstanding under lines of credit 40,693 33,779
Trade accounts payable 11,228 14,157
Accrued expenses 13,188 17,909
-------- --------
Total current liabilities 199,647 223,496
LONG-TERM DEBT, net of current maturities 77,720 79,607
DEFERRED INCOME TAXES, net 8,094 8,094
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Preferred stock, par value $.01 per share;
1,000 shares authorized; 0 shares
outstanding in 2001 and 2000 -- --
Common stock, par value $.01 per share;
25,000 shares authorized; 7,002 shares
outstanding -- 2001 and 2000 70 70
Additional paid-in capital 39,155 39,155
Retained earnings 39,107 38,952
-------- --------
Total shareholders' equity 78,332 78,177
-------- --------
Total liabilities and shareholders' equity $363,793 $389,374
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RUSH ENTERPRISES INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, Except Per Share Amounts)
(Unaudited)
Three Months Ended
March 31,
2001 2000
-------- --------
REVENUES:
New and used truck sales $126,401 $133,645
Parts and service 46,922 41,586
Construction equipment sales 13,941 18,167
Lease and rental 6,256 6,894
Finance and insurance 1,117 3,395
Retail sales 9,397 4,880
Other 898 1,385
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Total revenues 204,572 209,952
COST OF PRODUCTS SOLD 167,636 173,207
-------- --------
GROSS PROFIT 36,936 36,745
SELLING, GENERAL AND ADMINISTRATIVE 30,119 29,466
DEPRECIATION AND AMORTIZATION 2,657 2,068
-------- --------
OPERATING INCOME 4,160 5,211
INTEREST EXPENSE, NET 3,902 3,418
-------- --------
INCOME BEFORE INCOME TAXES 258 1,793
PROVISION FOR INCOME TAXES 103 717
-------- --------
NET INCOME $ 155 $ 1,076
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BASIC AND DILUTED INCOME PER SHARE $ .02 $ .15
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Weighted average shares outstanding:
Basic 7,002 7,002
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Diluted 7,013 7,036
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