Rush Enterprises Peterbilt Dealerships Reports First Quarter Results
SAN ANTONIO--April 16, 2002--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, 2002.In the first quarter, the Company's gross revenues totaled $181.7 million, an 11.1 percent decrease from gross revenues of $204.5 million reported for the first quarter ended March 31, 2001. Net income for the quarter increased 180.0 percent to $434,000, or $0.06 per share, compared with net income of $155,000, or $0.02 per share reported in the quarter ended March 31, 2001.
The Company's heavy-duty truck segment recorded revenues of $153.0 million in the first quarter of 2002, compared to $172.8 million in the first quarter of 2001. The Company delivered 975 and 482 new and used trucks, respectively, during the first quarter of 2002 compared to 1,387 and 513 new and used trucks, respectively, for the same period in 2001. Parts, service and body shop sales increased 13.5 percent from $43.8 million to $49.7 million from the first quarter of 2001 to the first quarter of 2002.
The Company's construction equipment segment recorded revenues of $17.4 million in the first quarter of 2002 compared to $20.3 million in the first quarter of 2001. New and used construction equipment unit sales revenue decreased $2.9 million or 20.9 percent from the same period in 2001. Parts and service sales increased 3.6 percent from $5.5 million to $5.7 million from the first quarter of 2001 to the first quarter of 2002. Rental sales decreased from $700,000 to $500,000, or 28.6 percent, from the first quarter of 2001 to the first quarter of 2002.
In announcing the results, W. Marvin Rush, chairman and chief executive officer of Rush Enterprises, said, "We are very pleased to announce our first quarter results. In spite of a 30 percent drop in our new truck deliveries during the quarter, it is the second straight quarter our earnings have increased versus the prior year. This is primarily due to the successful results of our asset reduction efforts and the continued planned growth of our higher margin parts and service business. I believe we are positioned well for continued earnings growth. For the first time since late 1999, the industry expects new truck deliveries to increase significantly during the second and third quarters, as customers accelerate their purchases prior to new emission regulations becoming effective October 1, 2002."
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- except for share information)
March 31, Dec. 31,
2002 2001
(unaudited) (audited)
-------- --------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 12,402 $ 19,852
Accounts receivable, net 24,635 26,403
Inventories 111,419 114,305
Prepaid expenses and other 1,208 1,244
Deferred income taxes 1,508 1,508
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Total current assets 151,172 163,312
PROPERTY AND EQUIPMENT, net 131,239 132,196
OTHER ASSETS, net 41,848 42,703
-------- --------
Total assets $324,259 $338,211
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Floor plan notes payable $ 74,696 $ 85,300
Current maturities of long-term debt 15,669 15,594
Advances outstanding under lines of credit 28,481 22,459
Trade accounts payable 13,652 15,284
Accrued expenses 16,657 23,047
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Total current liabilities 149,155 161,684
LONG-TERM DEBT, net of current maturities 80,719 82,576
DEFERRED INCOME TAXES, net 12,512 12,512
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Preferred stock, par value $.01 per share;
1,000 shares authorized; 0 shares
outstanding in 2002 and 2001 -- --
Common stock, par value $.01 per share;
25,000,000 shares authorized; 7,002,044
shares outstanding - 2002 and 2001 70 70
Additional paid-in capital 39,155 39,155
Retained earnings 42,648 42,214
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Total shareholders' equity 81,873 81,439
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Total liabilities and shareholders' equity $324,259 $338,211
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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,
-------------------
2002 2001
-------- --------
REVENUES:
New and used truck sales $ 98,219 $126,041
Parts and service 54,023 46,922
Construction equipment sales 11,056 13,941
Lease and rental 6,337 6,256
Finance and insurance 1,065 1,117
Retail sales 9,633 9,397
Other 1,376 873
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Total revenues 181,709 204,547
COST OF PRODUCTS SOLD 145,438 167,636
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GROSS PROFIT 36,271 36,911
SELLING, GENERAL AND ADMINISTRATIVE 30,925 30,119
DEPRECIATION AND AMORTIZATION 2,477 2,657
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OPERATING INCOME 2,869 4,135
INTEREST EXPENSE, NET 2,068 3,902
GAIN (LOSS) ON SALE OF ASSETS (78) 25
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INCOME BEFORE INCOME TAXES 723 258
PROVISION FOR INCOME TAXES 289 103
-------- --------
NET INCOME $ 434 $ 155
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BASIC AND DILUTED INCOME PER SHARE $ .06 $ .02
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Weighted average shares outstanding:
Basic 7,002 7,002
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Diluted 7,152 7,013
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