Rush Enterprises, Inc. Reports Second Quarter Results; Earnings Per Share Increases to $0.26 Compared to $0.15 in 2003
SAN ANTONIO--July 20, 2004--Rush Enterprises, Inc. , whose operations include the largest network of Peterbilt heavy-duty truck dealerships in North America and a John Deere construction equipment dealership in Houston, Texas, today announced results for the second quarter ended June 30, 2004.In the second quarter, the Company's gross revenues totaled $267.2 million, a 38.2% increase from gross revenues of $193.3 million reported for the second quarter ended June 30, 2003. Net income was $4.1 million, or $0.26 per diluted share, during the second quarter of 2004 compared to $2.2 million, or $0.15 per diluted share, in the second quarter of 2003. Income from continuing operations was $4.1 million, or $0.25 per diluted share, during the second quarter of 2004 compared to $2.3 million, or $0.16 per diluted share in the second quarter of 2003.
The Company's truck segment recorded revenues of $253.3 million in the second quarter of 2004, compared to $179.3 million in the second quarter of 2003. The Company delivered 1,283 new heavy-duty trucks, 433 medium-duty trucks and 647 used trucks during the second quarter of 2004, compared to 755 new heavy-duty trucks, 211 medium-duty trucks and 588 used trucks for the same period in 2003. Parts, service and body shop sales increased 12.2% from $60.0 million in the second quarter of 2003 to $67.3 million in the second quarter of 2004.
The Company's construction equipment segment recorded revenues of $11.5 million in the second quarter of 2004, compared to $12.0 million in the second quarter of 2003. Revenue generated from the sale of new construction equipment units remained flat in the second quarter of 2004 compared to the second quarter of 2003, while revenue generated from the sale of used construction equipment units decreased approximately 41% in the second quarter of 2004 compared to the second quarter of 2003. Parts, service and body shop sales for the second quarter of 2004 were $3.4 million compared to $3.1 million in the second quarter of 2003. Pretax income from the construction equipment segment increased from $0.6 million for the second quarter of 2003 to $0.8 million in the second quarter of 2004.
In announcing the results, W. Marvin Rush, Chairman and Chief Executive Officer of Rush Enterprises, said, "Obviously we are very happy with our performance in the second quarter of 2004. Our prediction of strong demand for both heavy and medium-duty trucks has proven to be accurate as indicated by the numbers we are reporting today. Manufacturer and component suppliers expect demand for trucks to continue to increase through at least 2006."
Mr. Rush continued, "The continued upward market trend and Rush's improving absorption rates should continue to directly correspond to an improving bottom line for the Company."
Conference Call
Rush Enterprises will host a conference call to review its second quarter results on July 21, 2004 at 10 a.m. EST/9 a.m. CST. The call can be heard live by dialing 800-901-5247 (US) or 617-786-4501 (International) and entering the passcode 38844206, or via the web on the 'Events' section of the Company's website at www.RushEnterprises.com, or at www.fulldisclosure.com, or www.streetevents.com. For those who cannot listen to the live broadcast, the Webcast and audio replay will be available until August 12, 2004 by dialing 888-286-8010 (US) or 617-801-6888 (International) and entering the passcode 26410412.
About Rush Enterprises
Rush Enterprises operates the largest network of Peterbilt heavy-duty truck dealerships in North America and a John Deere construction equipment dealership in Houston, Texas. Its current operations include a network of dealerships located in Texas, California, Oklahoma, 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 and medium-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.
RUSH ENTERPRISES, INC., AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
JUNE 30, 2004 AND DECEMBER 31, 2003
(In Thousands, Except Shares and Per Share Amounts)
June 30, December 31,
2004 2003
(Unaudited) (Audited)
------------- --------------
ASSETS
------
CURRENT ASSETS:
Cash and cash equivalents $33,977 $34,389
Accounts receivable, net 38,399 24,492
Inventories 135,878 137,423
Assets held for sale 9,060 8,824
Prepaid expenses and other 1,591 1,122
Deferred income taxes 2,811 2,863
------------- --------------
Total current assets 221,716 209,113
PROPERTY AND EQUIPMENT, net 120,862 114,477
OTHER ASSETS, net 44,440 43,288
------------- --------------
Total assets $387,018 $366,878
============= ==============
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES:
Floor plan notes payable $117,865 $108,235
Current maturities of long-term debt 22,655 23,767
Advances outstanding under lines of
credit 17,560 17,732
Trade accounts payable 16,332 16,170
Accrued expenses 28,260 29,096
------------- --------------
Total current
liabilities 202,672 195,000
LONG-TERM DEBT, net of current maturities 64,930 66,261
DEFERRED INCOME TAXES, net 17,474 16,911
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Preferred stock, par value $.01 per
share; 1,000 shares authorized; 0 shares
outstanding in 2003 and 2004 - -
Common stock, par value $.01 per share;
50,000,000 shares authorized; 14,042,304
shares outstanding in 2003 and
14,984,824 shares outstanding in 2004 149 140
Additional paid-in capital 46,281 39,337
Retained earnings 55,512 49,229
------------- --------------
Total shareholders'
equity 101,942 88,706
------------- --------------
Total liabilities and
shareholders' equity $387,018 $366,878
============= ==============
RUSH ENTERPRISES, INC., AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, Except Per Share Amounts)
(Unaudited)
Three months ended Six months ended
June 30, June 30,
------------------- -------------------
2004 2003 2004 2003
--------- --------- --------- ---------
REVENUES:
New and used truck sales $177,456 $111,628 $323,724 $202,846
Parts and service 72,328 64,371 139,333 119,082
Construction equipment sales 7,835 8,519 15,378 14,176
Lease and rental 6,805 6,319 13,476 12,443
Finance and insurance 2,058 1,563 3,781 2,931
Other 697 859 1,371 1,397
--------- --------- --------- ---------
Total revenues 267,179 193,259 497,063 352,875
COST OF PRODUCTS SOLD 221,592 154,840 410,065 280,282
--------- --------- --------- ---------
GROSS PROFIT 45,587 38,419 86,998 72,593
SELLING, GENERAL AND
ADMINISTRATIVE 34,993 30,854 69,587 59,943
DEPRECIATION AND AMORTIZATION 2,280 2,252 4,476 4,442
--------- --------- --------- ---------
OPERATING INCOME 8,314 5,313 12,935 8,208
INTEREST EXPENSE, NET 1,536 1,613 3,083 3,161
GAIN ON SALE OF ASSETS 29 191 459 299
--------- --------- --------- ---------
INCOME FROM CONTINUING
OPERATIONS BEFORE INCOME TAXES 6,807 3,891 10,311 5,346
PROVISION FOR INCOME TAXES 2,723 1,557 4,125 2,139
--------- --------- --------- ---------
INCOME FROM CONTINUING
OPERATIONS 4,084 2,334 6,186 3,207
GAIN (LOSS) FROM DISCONTINUED
OPERATIONS, NET 44 (100) 97 (647)
--------- --------- --------- ---------
NET INCOME $4,128 $2,234 $6,283 $2,560
========= ========= ========= =========
EARNINGS PER COMMON SHARE -
BASIC
Income from continuing
operations $.27 $.17 $.41 $.23
========= ========= ========= =========
Net income $.28 $.16 $.42 $.18
========= ========= ========= =========
EARNINGS PER COMMON SHARE -
DILUTED
Income from continuing
operations $.25 $.16 $.39 $.22
========= ========= ========= =========
Net income $.26 $.15 $.40 $.18
========= ========= ========= =========
Weighted average shares
outstanding:
Basic 14,985 14,004 14,985 14,004
========= ========= ========= =========
Diluted 16,177 14,583 15,802 14,468
========= ========= ========= =========