Rush Enterprises Inc. Reports Third Quarter Results
SAN ANTONIO--Oct. 16, 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 Sept. 30, 2001.In the third quarter, the Company's gross revenues totaled $195.2 million, a 14.0 percent decrease from gross revenues of $226.9 million reported for the third quarter ended Sept. 30, 2000. Net income for the quarter decreased 47.6 percent to $1.1 million, or $0.15 per share, compared with net income of $2.1 million, or $0.30 per share reported in the quarter ended Sept. 30, 2000.
The Company's heavy-duty truck segment recorded revenues of $154.8 million in the third quarter of 2001, compared to $190.3 million in the third quarter of 2000. The Company delivered 970 and 480 new and used trucks, respectively, during the third quarter of 2001 compared to 1,515 and 528 new and used trucks, respectively, for the same period in 2000. Parts, service and body shop sales at our truck dealerships increased 11.1 percent from $44.1 million to $49.0 million from the third quarter of 2000 to the third quarter of 2001.
The Company's construction equipment segment recorded revenues of $28.4 million in the third quarter of 2001 compared to $27.4 million in the third quarter of 2000. The Company delivered 233 and 82 new and used construction equipment units, respectively, during the third quarter of 2001 compared to 229 and 68 new and used construction equipment units, respectively, for the same period in 2000.
Parts and service sales increased 6.8 percent from $5.9 million in the third quarter of 2000 to $6.3 million in the third quarter of 2001. Rental sales decreased from $2.6 million to $1.1, or 57.7 percent, from the third quarter of 2000 to the third quarter of 2001.
In announcing the results, W. Marvin Rush, chairman and chief executive officer of Rush Enterprises, said, "In spite of very difficult market conditions, as evidenced by the recent results of heavy-duty truck manufacturers, we have remained profitable. I am proud of our people. Under the Rush management style, their ability to exercise the freedom of thought and action in this declining market, made these results possible."
Mr. Rush added, "I believe that as the truck market continues to remain soft, there will be an increasing number of attractive acquisition opportunities. Our Company is positioned to take advantage of any such opportunities that may arise."
Rush Enterprises operates the largest network of Peterbilt heavy-duty truck dealerships in North America and John Deere construction equipment dealerships in Texas and Michigan. Its current operations include a network of dealerships located in Texas, California, Oklahoma, Louisiana, Colorado, Arizona, New Mexico and Michigan. These dealerships provide an integrated, one-stop source for the retail sale of new and used heavy-duty trucks and construction equipment; aftermarket parts, service and body shop facilities; and a wide array of financial services, including the financing of truck and equipment sales, insurance products and leasing and rentals. The Company also operates retail farm and ranch superstores that serve the greater San Antonio, Houston and Dallas/Forth Worth, Texas areas.
Certain statements contained herein, including those concerning industry conditions, are "forward-looking" statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, competitive factors, general economic conditions, cyclicality, economic conditions in the new and used truck and construction equipment markets, customer relations, relationships with vendors, the interest rate environment, governmental regulation and supervision, seasonality, distribution networks, product introductions and acceptance, technological change, changes in industry practices, onetime events and other factors described herein and in filings made by the company with the Securities and Exchange Commission.
RUSH ENTERPRISES INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands -- unaudited, except for share information)
September 30, December 31,
2001 2000
(Unaudited) (Audited)
-------- --------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 21,264 $ 18,892
Accounts receivable, net 19,391 20,350
Inventories 122,846 177,415
Prepaid expenses and other 1,249 3,800
Deferred income taxes 1,395 1,867
-------- --------
Total current assets 166,145 222,324
PROPERTY AND EQUIPMENT, net 128,165 130,532
OTHER ASSETS, net 38,237 37,885
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Total assets $332,547 $390,741
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Floor plan notes payable $ 90,952 $146,272
Current maturities
of long-term debt 9,103 11,379
Advances outstanding under
lines of credit 26,034 33,779
Trade accounts payable 13,783 14,157
Accrued expenses 18,251 17,409
-------- --------
Total current liabilities 158,123 222,996
LONG-TERM DEBT, net
of current maturities 82,653 79,607
DEFERRED INCOME TAXES, net 10,912 9,961
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; 25,000,000 shares
authorized; 7,002,044 shares
outstanding -- 2001 and 2000 70 70
Additional paid-in capital 39,155 39,155
Retained earnings 41,634 38,952
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Total shareholders' equity 80,859 78,177
-------- --------
Total liabilities and
shareholders' equity $332,547 $390,741
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RUSH ENTERPRISES INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except earnings per share -- unaudited)
Three months ended Nine months ended
September 30, September 30,
-------------------- --------------------
2001 2000 2001 2000
--------- --------- --------- ---------
REVENUES:
New and used
truck sales $ 102,646 $ 144,128 $ 339,415 $ 444,652
Parts and service 52,381 47,693 149,571 133,346
Construction
equipment sales 20,626 18,388 52,556 56,799
Lease and rental 7,050 7,845 20,729 22,196
Finance and insurance 1,509 1,278 4,294 6,503
Retail sales 9,967 7,334 29,605 19,381
Other 988 258 2,778 2,468
--------- --------- --------- ---------
TOTAL REVENUES 195,167 226,924 598,948 685,345
COST OF PRODUCTS SOLD 156,739 186,009 486,107 568,260
--------- --------- --------- ---------
GROSS PROFIT 38,428 40,915 112,841 117,085
SELLING, GENERAL
AND ADMINISTRATIVE 31,420 30,935 91,758 90,952
DEPRECIATION
AND AMORTIZATION 2,664 2,502 7,979 6,829
--------- --------- --------- ---------
OPERATING INCOME 4,344 7,478 13,104 19,304
INTEREST INCOME
(EXPENSE) (2,585) (4,426) (9,505) (11,637)
GAIN ON SALE OF ASSETS 18 445 871 512
--------- --------- --------- ---------
INCOME BEFORE
INCOME TAXES 1,777 3,497 4,470 8,179
PROVISION FOR
INCOME TAXES 711 1,399 1,788 3,272
--------- --------- --------- ---------
NET INCOME $ 1,066 $ 2,098 $ 2,682 $ 4,907
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EARNINGS PER SHARE:
Basic $ 0.15 $ 0.30 $ 0.38 $ 0.70
Diluted $ 0.15 $ 0.30 $ 0.38 $ 0.70
========= ========= ========= =========
Weighted average
shares outstanding
Basic 7,002 7,002 7,002 7,002
========= ========= ========= =========
Diluted 7,142 7,002 7,069 7,030
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