Rush Enterprises Announces Q1 Results
7 May 1997
Rush Enterprises Announces First Quarter Results
SAN ANTONIO, May 7 -- Rush Enterprises, Inc. ,
one of the largest heavy-duty truck dealers in the U.S. and the first to go
public, today announced results of operations for the first quarter ended
March 31, 1997.
In the first quarter ended March 31, 1997, the Company's net revenues
totaled $82.9 million, up 5.9% from the $78.3 million reported in the previous
year. Proforma net income decreased $114,000 to $785,000 from the prior year
level of $899,000. Pro forma earnings per share decreased from $0.21 to
$0.12, or 42.8%, on a 41% increase in the average shares outstanding,
resulting from the Company's initial public offering. The 1996 results were
reported as pro forma figures, computed as if the Company's subchapter S
earnings were subject to income taxes.
W. Marvin Rush, Chairman and Chief Executive Officer of Rush Enterprises,
Inc., stated, "The first quarter is typically slow in the truck dealership
industry and our results are reflective of a generally sluggish truck market.
In addition, the first quarter of 1997 was particularly affected by the recent
enactment of a federal brake law just prior to the year end model changes. We
believe the truck market will improve over the remainder of the year and more
specifically during the second half of the year. We remain optimistic as to
the prospects for the remainder of the year."
"We remain committed to our strategy of industry consolidation and believe
the offering of high-quality service to our customers over a wide geographic
area will enable us to realize economies of scale and more favorable
purchasing power. By following this strategy, we believe we are poised to
become the dominant player in this industry, all while generating increasing
levels of revenues, earnings, and shareholder value."
Rush Enterprises is one of the largest heavy-duty truck dealers in the
country. Its current operations include a network of truck centers located in
Texas, California, Oklahoma, Louisiana and Colorado. These truck centers
provide an integrated, one-stop source for the retail sale of new Peterbilt
and used heavy-duty trucks of various makes; aftermarket parts, service and
body shop facilities; and a wide array of financial services, including the
financing of truck sales, insurance products, and truck leasing and rentals.
Certain statements contained herein 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, those discussed in filings made by the Company with the
Securities and Exchange Commission.
RUSH ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except earnings per share -- unaudited)
Three months ended
March 31,
1997 1996
REVENUES:
New and used truck sales $61,805 $58,133
Parts and service 16,295 15,351
Lease and rental 3,208 3,016
Finance and insurance 1,025 1,486
Other 579 311
Total revenues 82,912 78,297
COST OF PRODUCTS SOLD 69,743 63,514
GROSS PROFIT 13,169 14,783
SELLING, GENERAL
AND ADMINISTRATIVE 10,784 11,812
DEPRECIATION AND AMORTIZATION 628 547
OPERATING INCOME 1,757 2,424
INTEREST EXPENSE 490 973
INCOME BEFORE INCOME TAXES 1,267 1,451
PROVISION FOR INCOME TAXES 482 0
NET INCOME $ 785 $ 1,451
UNAUDITED PRO FORMA DATA:
Income from continuing
operations before
income taxes $ 1,267 $ 1,451
Pro forma adjustments
to reflect federal and
state income taxes 482 552
Proforma income from
continuing operations
after provision
for income taxes $ 785 $ 899
Pro forma income from
continuing operations
per share $ .12 $ .21
Weighted average shares
outstanding used
in the pro forma income
from continuing operations
per share calculation 6,644 4,699
SOURCE Rush Enterprises, Inc.