Rush Enterprises Announces Second Quarter Results
4 August 1997
Rush Enterprises Announces Second Quarter Results
SAN ANTONIO, Texas, Aug. 4 -- Rush Enterprises, Inc.
, one of the largest heavy-duty truck dealers in the U.S. and
the first to go public, today announced the results of operations for the
second quarter ended June 30, 1997.
In the second quarter ended June 30, 1997, the Company's net revenues
totaled $95.8 million, up 13.2% from the $84.6 million reported in the
previous year. Pro forma net income decreased $247,000 to $997,000 from the
prior year level of $1,244,000. Pro forma earnings per share decreased from
$0.26 to $0.15, or 42.3%, on a 40% 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.
Marvin Rush, Chairman and Chief Executive Officer of Rush Enterprises,
Inc. stated "The second quarter results are consistent with our expectations
and are reflective of the industry for the first half of 1997. Earnings
through the second quarter were particularly affected by a decrease in finance
income. Finance revenues have limited direct costs and, therefore, contribute
a disproportionate share of operating profits. We believe finance revenues
have stabilized and will begin to increase as the truck market improves during
the second half of the year.
"We remain committed to the trucking and equipment industries and are
optimistic as to the prospects for the remainder of the year. We believe our
strategy of industry consolidation, in both industries, will lead to increased
efficiencies and the generation of 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; after market 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.
Rush recently announced the formation of a new construction equipment
division, Rush Equipment Centers. This division will pursue construction
equipment industry consolidation opportunities. Accordingly, the company
recently entered into a letter of intent with C. Jim Stewart & Stevenson, Inc.
to purchase the assets of its John Deere dealership in the Gulf Coast
territory. This territory is comprised of 20 counties which includes the
Houston, Texas metropolitan and surrounding areas.
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 Six months ended
June 30, June 30,
1997 1996 1997 1996
REVENUES:
New and used truck sales $71,831 $ 63,190 $133,636 $121,323
Parts and service 19,051 16,174 35,346 31,951
Lease and rental 3,448 3,468 6,656 6,636
Finance and insurance 1,056 1,389 2,081 2,875
Other 386 388 1,700 698
Total revenues 95,772 84,609 179,419 163,483
COST OF PRODUCTS SOLD 81,301 71,061 151,779 135,061
GROSS PROFIT 14,471 13,548 27,640 28,422
SELLING, GENERAL AND
ADMINISTRATIVE 11,716 9,882 22,500 21,784
DEPRECIATION AND AMORTIZATION 715 588 1,343 1,134
OPERATING INCOME 2,040 3,078 3,797 5,504
INTEREST EXPENSE 433 1,072 923 2,046
INCOME BEFORE INCOME TAXES 1,607 2,006 2,874 3,458
PROVISION FOR INCOME TAXES 610 400 1,092 400
NET INCOME $997 $1,606 $1,782 $3,058
EARNINGS PER SHARE
Primary $0.15 --- $0.27 ---
Fully Diluted $0.15 --- $0.27 ---
WEIGHTED AVERAGE SHARES
OUTSTANDING
Primary 6,644 --- 6,644 ---
Fully Diluted 6,644 --- 6,644 ---
UNAUDITED PRO FORMA DATA:
Income from continuing
operations before
income taxes --- $ 2,006 --- $3,458
Pro forma adjustments to
reflect federal and state
income taxes --- 762 --- 1,314
Pro forma income after
provision for income taxes --- $ 1,244 --- $2,144
Pro forma income per share --- $0.26 --- $0.47
Weighted average shares
outstanding used in the
pro forma net income
per share calculation --- 4,758 --- 4,528
SOURCE Rush Enterprises, Inc.