Rush Enterprises, Inc. Reports Q2 Results
20 July 1998
Rush Enterprises, Inc. Reports Second Quarter and Six Months Results
SAN ANTONIO--July 20, 1998--Revenues Increase 73.3%; Net Income Up 174%
Rush Enterprises, Inc. , which operates the largest network of Peterbilt heavy-duty truck dealerships in North America and a John Deere construction equipment dealership in Houston, today announced results for the second quarter and six months ended June 30, 1998.
In the second quarter, the Company's gross revenues totaled $166.0 million, a 73.3 percent increase over gross revenues of $95.8 million reported for the second quarter ended June 30, 1997. Net income for the quarter increased 174 percent to $2.7 million, or $0.41 per share, compared with net income of $997,000, or $0.15 per share reported in the quarter ended June 30, 1997.
For the six months ended June 30, 1998 gross revenues totaled $292.0 million, a 63.4 percent increase over gross revenues of $178.7 million reported for the first half of 1997. Net income for the six months was $4.1 million, or $0.61 per share, a 128 percent increase over net income of $1.8 million, or $0.27 per share reported for the 1997 six months period.
In announcing the results, W. Marvin Rush, Chairman and Chief Executive Officer of Rush Enterprises, said, "We are pleased with the strength of each profit center in our dealership structure. Our bottom line growth has been significantly improved by a number of factors, including strong parts and service business, finance income and the decrease in our Selling, General & Administrative expenses as a percentage of revenues. The combination of these factors has resulted in greater profit margins."
Rush added, "We continue to witness exceptional strength in our industry. Order backlog is now much higher than manufacturing capacity which bodes well for our future performance. Along with strong internal growth, we are committed to grow our truck business through targeted acquisitions."
Rush recently signed a definitive agreement to purchase the assets of Klooster Equipment Inc., a John Deere Construction Equipment Dealership with four locations in western Michigan.
Rush Enterprises operates the largest network of Peterbilt heavy-duty truck dealerships in North America and a John Deere construction equipment dealership in Houston. Its current operations include a network of dealerships located in Texas, California, Oklahoma, Louisiana and Colorado. 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 full-service 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.
These release is available on the KCSA Worldwide website at www.kcsa.com
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,
1998 1997 1998 1997
Revenues
New and used truck
sales $ 117,392 $ 71,831 $ 202,379 $ 133,636
Parts and service 27,047 19,051 50,376 35,346
Construction
equipment sales 9,962 0 17,913 0
Lease and rental 4,145 3,448 8,975 6,656
Finance and
insurance 3,039 1,056 5,397 2,081
Other 4,398 386 7,018 965
Total Revenues 165,983 95,772 292,058 178,684
Cost of Products Sold 139,464 81,301 243,827 151,044
Gross Profit 26,519 14,471 48,231 27,640
Selling, General and
Administrative 19,279 11,716 36,510 22,500
Depreciation and
Amortization 1,119 715 2,074 1,343
Operating Income 6,121 2,040 9,647 3,797
Interest Expense 1,570 433 2,868 923
Income Before Income
Taxes 4,551 1,607 6,779 2,874
Provision for Income
Taxes 1,821 610 2,712 1,092
Net Income $ 2,730 $ 997 $ 4,067 $ 1,782
Basic and diluted
income from operations
per share $ 0.41 $ 0.15 $ 0.61 $ 0.27
Weighted average shares
outstanding:
Basic 6,644 6,644 6,644 6,644
Diluted 6,660 6,644 6,660 6,644