Rush Enterprises Inc. Reports First Quarter Results
SAN ANTONIO--April 22, 2003--Rush Enterprises Inc. , whose continuing operations includes the largest network of Peterbilt heavy-duty truck dealerships in North America and a John Deere construction equipment dealership in Texas, today announced results for the quarter ended March 31, 2003.In the first quarter, the Company's gross revenues totaled $159.6 million, a 1.8 percent decrease from gross revenues of $162.6 million reported for the first quarter ended March 31, 2002. Income from continuing operations was $873,000 or $0.06 per diluted share during the first quarter of 2003 compared to $1.1 million or $.08 per diluted share in the first quarter of 2002.
Net income for the quarter was $326,000, or $0.02 per diluted share, compared with net income of $434,000, or $0.03 per share reported in the quarter ended March 31, 2002. The Company recorded a net loss from discontinued operations of $547,000 in the first quarter of 2003. This loss consists primarily of operating costs incurred in the liquidation and closing of the Company's retail center in Hockley, Texas.
The Company's heavy-duty truck segment recorded revenues of $156.3 million in the first quarter of 2003, compared to $152.0 million in the first quarter of 2002. The Company delivered 795 and 519 new and used trucks, respectively, during the first quarter of 2003 compared to 975 and 482 new and used trucks, respectively, for the same period in 2002. Parts, service and body shop sales increased 8.4 percent from $47.3 million in the first quarter of 2002 to $51.2 million in the first quarter of 2003.
The Company's construction equipment segment recorded revenues of $8.6 million in the first quarter of 2003 compared to $8.8 million in the first quarter of 2002. New and used construction equipment unit sales revenue decreased $180,000 or 3.1 percent from the first quarter of 2002 to the first quarter of 2003. Parts and service sales increased $200,000, or 8.0 percent, from $2.5 million in the first quarter of 2002 to $2.7 million in the first quarter of 2003. Lease and rental sales decreased $179,000, or 44.9 percent from the first quarter of 2002 to the first quarter of 2003.
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. As expected, new truck deliveries decreased during the first quarter due to the new truck pre-buy experienced in the third and fourth quarters of 2002. However, the industry expects new truck deliveries to increase in the last half of 2003 and for the truck market to be strong in 2004 through 2006."
Mr. Rush added, "I am pleased with the progress of our newly acquired stores in Florida and Alabama and believe that our Company is well positioned to take advantage of the expected growth over the next three years."
Rush Enterprises operates the largest network of Peterbilt heavy-duty truck dealerships in North America and a John Deere construction equipment dealership in Texas. Its current operations include a network of dealerships located in Texas, California, Oklahoma, Louisiana, Colorado, Arizona, New Mexico, Alabama and Florida. 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 is in the process of discontinuing the operations of its retail farm and ranch superstore that serves the greater San Antonio, Texas, area.
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
MARCH 31, 2003 AND DECEMBER 31, 2002
(In Thousands, Except Shares and Per Share Amounts)
March 31, Dec. 31,
2003 2002
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ASSETS
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CURRENT ASSETS:
Cash and cash equivalents $16,181 $24,763
Accounts receivable, net 22,972 24,935
Inventories 109,945 115,333
Assets held for sale 10,229 16,962
Prepaid expenses and other 1,542 1,764
Deferred income taxes 4,375 4,375
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Total current assets 165,244 188,132
PROPERTY AND EQUIPMENT, net 117,610 117,859
OTHER ASSETS, net 42,005 38,519
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Total assets $324,859 $344,510
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LIABILITIES AND SHAREHOLDERS' EQUITY
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CURRENT LIABILITIES:
Floor plan notes payable $83,238 $89,288
Current maturities of long-term debt 24,353 24,958
Advances outstanding under lines of credit 19,129 22,395
Trade accounts payable 11,692 15,082
Accrued expenses 23,033 28,414
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Total current liabilities 161,445 180,137
LONG-TERM DEBT, net of current maturities 68,673 69,958
DEFERRED INCOME TAXES, net 14,720 14,720
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Preferred stock, par value $.01 per share;
1,000 shares authorized; 0 shares
outstanding in 2001 and 2002 -- --
Common stock, par value $.01 per share;
50,000,000 shares authorized; 14,004,088
shares outstanding in 2001 and 2002 140 140
Additional paid-in capital 39,155 39,155
Retained earnings 40,726 40,400
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Total shareholders' equity 80,021 79,695
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Total liabilities and shareholders'
equity $324,859 $344,510
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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,
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2003 2002
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REVENUES:
New and used truck sales $91,218 $98,219
Parts and service 54,711 50,811
Construction equipment sales 5,657 5,837
Lease and rental 6,124 6,284
Finance and insurance 1,368 998
Other 538 410
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Total revenues 159,616 162,559
COST OF PRODUCTS SOLD 125,442 130,429
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GROSS PROFIT 34,174 32,130
SELLING, GENERAL AND ADMINISTRATIVE 29,089 26,424
DEPRECIATION AND AMORTIZATION 2,190 2,145
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OPERATING INCOME 2,895 3,561
INTEREST EXPENSE, NET 1,548 1,646
GAIN (LOSS) ON SALE OF ASSETS 108 (2)
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INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES 1,455 1,913
PROVISION FOR INCOME TAXES 582 765
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INCOME FROM CONTINUING OPERATIONS 873 1,148
(LOSS) FROM DISCONTINUED OPERATIONS, NET (547) (714)
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NET INCOME $326 $434
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EARNINGS (LOSS) PER COMMON SHARE -- BASIC
Income from continuing operations $.06 $.08
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Net income (loss) $.02 $.03
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EARNINGS (LOSS) PER COMMON SHARE -- DILUTED
Income from continuing operations $.06 $.08
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Net income (loss) $.02 $.03
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Weighted average shares outstanding:
Basic 14,004 14,004
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Diluted 14,309 14,310
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