Rush Enterprises Announces Third Quarter Results
4 November 1997
Rush Enterprises Announces Third Quarter Results
SAN ANTONIO, Nov. 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 third quarter ended
September 30, 1997.
In the third quarter ended September 30, 1997, the Company's net revenues
totaled $102.1 million, up 17.2% from the $87.1 million reported in the
previous year. Net income increased $121,000 to $1,658,000 from the prior
year level of $1,537,000. Earnings per share increased from $0.23 to $0.25,
or 8.7%.
Marvin Rush, Chairman and Chief Executive Officer of Rush Enterprises,
Inc. stated "After a slow first half of the year, the third quarter results
reflect strengthening financial performance. Revenue growth, particularly in
the finance area, led to a strong quarter. Revenues exceeded both 1997 second
quarter revenues and 1996 third quarter revenues in all sales categories.
"We remain committed to the trucking and equipment industries and are
entering the final quarter of 1997 with momentum and confidence. 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-step 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.
Additionally, on October 6, 1997, the Company acquired from C. Jim Stewart
& Stevenson, Inc. the assets of its John Deere dealership in
the gulf coast territory. The dealership provides a source for the retail
sale of new John Deere and used construction equipment of various makes, after
market parts and service facilities, and equipment 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 Nine months ended
September 30, September 30,
1997 1996 1997 1996
REVENUES:
New and used truck sales $75,545 65,427 $209,181 $186,751
Parts and service 20,934 16,414 56,280 48,359
Lease and rental 3,605 3,490 10,262 10,056
Finance and insurance 1,732 1,513 3,812 4,371
Other 329 288 1,294 986
Total revenues 102,145 87,132 280,829 250,523
COST OF PRODUCTS SOLD 85,473 72,926 236,521 209,870
GROSS PROFIT 16,672 14,206 44,308 40,653
SELLING, GENERAL AND
ADMINISTRATIVE 12,732 10,595 35,229 30,283
DEPRECIATION AND AMORTIZATION 730 610 2,071 1,789
OPERATING INCOME 3,210 3,001 7,008 8,581
INTEREST EXPENSE 537 554 1,462 2,676
INCOME BEFORE INCOME TAXES 2,673 2,447 5,546 5,905
PROVISION FOR INCOME TAXES 1,015 910 2,107 1,310
NET INCOME $1,658 $1,537 $3,439 $4,595
EARNINGS PER SHARE
Primary $0.25 $0.23 $0.52 ---
Fully Diluted $0.25 $0.23 $0.52 ---
WEIGHTED AVERAGE SHARES
OUTSTANDING
Primary 6,646 6,640 6,646 ---
Fully Diluted 6,646 6,640 6,646 ---
UNAUDITED PRO FORMA DATA:
Income before income taxes --- --- --- $5,905
Pro forma adjustments to
reflect federal and state
income taxes --- --- --- 2,244
Pro forma income after
provision for income taxes --- --- --- $3,661
Pro forma income per share --- --- --- $ 0.70
Weighted average shares
outstanding used in the
pro forma net income
per share calculation --- --- --- 5,237
SOURCE Rush Enterprises, Inc.