Rush Enterprises Reports Second Quarter Results; Revenues Increase 14.1%
20 July 1999
Rush Enterprises Inc. Reports Second Quarter Results; Revenues Increase 14.1%; Net Income Up 42.3%
SAN ANTONIO--July 19, 1999--Rush Enterprises Inc. , which operates the largest network of Peterbilt heavy-duty truck dealerships in North America and John Deere construction equipment dealerships in Texas and Western Michigan, today announced results for the second quarter ended June 30, 1999.In the second quarter, the Company's gross revenues totaled $189.4 million, a 14.1 percent increase over gross revenues of $166.0 million reported for the second quarter ended June 30, 1998. Net income for the quarter increased 42.3 percent to $3.9 million, or $0.57 per diluted share, compared with net income of $2.7 million, or $0.41 per diluted share reported in the quarter ended June 30, 1998.
The Company's heavy-duty truck segment recorded revenues of $162.4 million in the second quarter of 1999, compared to $146.8 million in the second quarter of 1998. The Company delivered 1,226 and 542 new and used trucks, respectively, during the second quarter of 1999 compared to 1,202 and 521 new and used trucks, respectively, for the same period in 1998. Parts, service and body shop sales increased 8.2% from $25.9 million to $28.0 million from the second quarter of 1998 to the second quarter of 1999. Finance and insurance revenues increased $836,000 or 27.5% from the second quarter of 1998 to the second quarter of 1999.
The Company's construction equipment segment recorded revenues of $20.0 million in the second quarter of 1999, compared to $12.4 million in the second quarter of 1998. The acquisition of the western Michigan locations significantly impacted the increase in revenues.
In announcing the results, W. Marvin Rush, chairman and chief executive officer of Rush Enterprises, said, "I am very pleased with our second quarter results. We are on pace to have another record year. Our heavy-duty truck segment is operating efficiently and is positioned for further growth. The construction equipment stores are meeting our expectations, however, we are still in the development stages with this business and look forward to gaining operating efficiencies in the remainder of 1999.
"These increases are a result of our management's focus on increasing the profitability of every profit center in our dealerships and are evidence that modest revenue gains coupled with efficiencies lead to impressive earnings growth. Our investment in training personnel and technology is proving to be very successful, not only in growing our sales, but in widening our margins as well. We remain committed to improving our operations and growing our dealership network, and look forward to the remainder of 1999."
Rush Enterprises operates the largest network of Peterbilt heavy-duty truck dealerships in North America and John Deere construction equipment dealerships in Texas and Michigan. Its current operations include a network of dealerships located in Texas, California, Oklahoma, Louisiana, Colorado and Michigan. 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 leasing and rentals. The Company also operates a retail farm and ranch superstore that serves the greater San Antonio, Texas, area.
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,
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1999 1998 1999 1998
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REVENUES:
New and used
truck sales $ 129,607 $ 117,392 $ 251,291 $ 202,379
Parts and service 31,477 27,047 61,618 50,376
Construction
equipment sales 12,807 9,962 24,599 17,913
Lease and rental 6,279 4,145 11,337 8,975
Finance and insurance 3,875 3,039 7,503 5,397
Retail sales 4,499 4,239 9,111 5,629
Other 868 159 1,796 1,389
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TOTAL REVENUES 189,412 165,983 367,255 292,058
COST OF PRODUCTS SOLD 157,279 139,464 303,887 243,827
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GROSS PROFIT 32,133 26,519 63,368 48,231
SELLING, GENERAL AND
ADMINISTRATIVE 22,318 19,279 45,207 36,510
DEPRECIATION AND
AMORTIZATION 1,457 1,119 2,787 2,074
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OPERATING INCOME 8,358 6,121 15,374 9,647
INTEREST EXPENSE 1,882 1,570 3,366 2,868
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INCOME BEFORE INCOME
TAXES 6,476 4,551 12,008 6,779
PROVISION FOR INCOME
TAXES 2,590 1,821 4,803 2,712
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NET INCOME $ 3,886 $ 2,730 $ 7,205 $ 4,067
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EARNINGS PER SHARE:
Basic $ 0.58 $ 0.41 $ 1.08 $ 0.61
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Diluted $ 0.57 $ 0.41 $ 1.07 $ 0.61
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Weighted average shares
outstanding
Basic 6,646 6,644 6,646 6,644
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Diluted 6,809 6,660 6,760 6,660
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