Rush Enterprises Inc. Reports Third Quarter Results
12 October 1999
Rush Enterprises Inc. Reports Third Quarter Results; Revenues Increase 39.9%; Net Income Up 45.9%
SAN ANTONIO--Oct. 12, 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 Michigan, today announced results for the third quarter ended Sept. 30, 1999.In the third quarter, the Company's gross revenues totaled $214.8 million, a 39.9 percent increase over gross revenues of $153.6 million reported for the third quarter ended Sept. 30, 1998. Net income for the quarter increased 45.9 percent to $4.2 million, or $0.61 per diluted share, compared with net income of $2.9 million, or $0.43 per diluted share reported in the quarter ended Sept. 30, 1998.
The Company's heavy-duty truck segment recorded revenues of $183.2 million in the third quarter of 1999, compared to $136.2 million in the third quarter of 1998. The Company delivered 1,428 and 509 new and used trucks, respectively, during the third quarter of 1999 compared to 1,056 and 536 new and used trucks, respectively, for the same period in 1998. Parts, service and body shop sales increased 8.4% from $26.7 million to $29.0 million from the third quarter of 1998 to the third quarter of 1999. Finance and insurance revenues increased $434,000 or 16.5% from the third quarter of 1998 to the third quarter of 1999.
The Company's construction equipment segment recorded revenues of $24.6 million in the third quarter of 1999, compared to $10.6 million in the third quarter of 1998. The acquisition of the Michigan locations significantly impacted the increase in revenues. The Company delivered 162 and 67 new and used construction equipment units, respectively, during the third quarter of 1999 compared to 54 and 29 new and used construction equipment units, respectively, for the same period in 1998. Parts, service and rental sales increased 219% from $3.4 million to $7.4 million from the third quarter of 1998 to the third quarter of 1999. Finance and insurance revenues increased $149,000 or 126% from the third quarter of 1998 to the third quarter of 1999.
In announcing the results, W. Marvin Rush, Chairman and Chief Executive Officer of Rush Enterprises, said, "The third quarter picked-up where the second quarter left-off, with strong revenue growth and even stronger earnings growth. I am very pleased with our third quarter results, and the recent addition of five truck stores in Arizona and New Mexico and two construction equipment stores in eastern Michigan.
"I am optimistic about the future financial results of the Company as 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 and look forward to gaining operating efficiencies.
"These increases are a result of our management's focus on increasing the revenues and profitability of each profit center in our dealerships and are evidence that efficiencies lead to impressive earnings growth. We continue to invest in training and technology, cornerstones to future success. 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, Arizona, New Mexico 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 Nine months ended
September 30, September 30,
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1999 1998 1999 1998
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REVENUES:
New and used truck sales $149,931 $105,864 $401,222 $308,243
Parts and service 32,949 28,806 94,567 79,182
Construction equipment sales 16,592 6,828 41,191 24,741
Lease and rental 6,936 4,665 18,273 13,640
Finance and insurance 3,326 2,743 10,829 8,140
Retail sales 4,454 4,076 13,565 9,705
Other 656 558 2,452 1,947
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TOTAL REVENUES 214,844 153,540 582,099 445,598
COST OF PRODUCTS SOLD 181,179 126,366 485,066 370,193
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GROSS PROFIT 33,665 27,174 97,033 75,405
SELLING, GENERAL AND ADMINISTRATIVE 23,229 19,663 68,436 56,173
DEPRECIATION AND AMORTIZATION 1,483 1,266 4,270 3,340
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OPERATING INCOME 8,953 6,245 24,327 15,892
INTEREST EXPENSE 1,977 1,467 5,343 4,335
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INCOME BEFORE INCOME TAXES 6,976 4,778 18,984 11,557
PROVISION FOR INCOME TAXES 2,791 1,910 7,594 4,622
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NET INCOME $ 4,185 $ 2,868 $ 11,390 $ 6,935
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EARNINGS PER SHARE:
Basic $ 0.63 $ 0.43 $ 1.71 $ 1.04
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Diluted $ 0.61 $ 0.43 $ 1.68 $ 1.04
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Weighted average shares
outstanding
Basic 6,646 6,644 6,646 6,644
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Diluted 6,860 6,664 6,799 6,664
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