Rush Enterprises Inc. Reports Fourth Quarter and Year-End Results
22 February 2000
Rush Enterprises Inc. Reports Fourth Quarter and Year-End Results; Revenues Increase 31.9%; Net Income Up 50.0%
SAN ANTONIO--Feb. 22, 2000--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 fourth quarter and year ended Dec. 31, 1999.In the fourth quarter, the Company's gross revenues totaled $226.3 million, a 35.3 percent increase over gross revenues of $167.2 million reported for the fourth quarter ended Dec. 31, 1998. Net income for the quarter increased 23.7 percent to $4.8 million, or $0.66 per diluted share, compared with net income of $3.9 million, or $0.58 per diluted share reported in the quarter ended Dec. 31, 1998.
For the year ended Dec. 31, 1999, the Company's gross revenues totaled $808.4 million, a 31.9 percent increase over gross revenues of $612.8 million reported during 1998. Net income for the year ended 1999 was $16.2 million, or $2.34 per diluted share, a 50.0 percent increase over net income of $10.8 million, or $1.62 per diluted share reported during 1998.
The Company's heavy-duty truck segment recorded revenues of $189.7 million in the fourth quarter of 1999, compared to $144.4 million in the fourth quarter of 1998. The acquisitions of the Arizona, New Mexico and southern California locations significantly impacted the increase in revenues.
The Company delivered 1,483 and 504 new and used trucks, respectively, during the fourth quarter of 1999 compared to 1,200 and 470 new and used trucks, respectively, for the same period in 1998. Parts, service and body shop sales increased 32.8 percent from $25.7 million to $34.2 million from the fourth quarter of 1998 to the fourth quarter of 1999.
The Company's construction equipment segment recorded revenues of $29.2 million in the fourth quarter of 1999, compared to $16.4 million in the fourth quarter of 1998. The acquisition of the eastern Michigan locations impacted the increase in revenues. The Company delivered 220 and 150 new and used construction equipment units, respectively, during the fourth quarter of 1999 compared to 164 and 45 new and used construction equipment units, respectively, for the same period in 1998. Parts and service sales increased 29.6 percent from $4.1 million to $5.3 million from the fourth quarter of 1998 to the fourth quarter of 1999. Rental sales increased from $1.1 million to $2.3 million, or 120.7 percent, from the fourth quarter of 1998 to the fourth quarter of 1999.
In announcing the results, W. Marvin Rush, chairman and chief executive officer of Rush Enterprises, said, "The fourth quarter was highlighted by the acquisition of eight new truck locations in Arizona, New Mexico and California. These acquisitions represent a significant step towards completing our presence in the southwest and positioning our company to take advantage of NAFTA-related businesses.
"I am very pleased with our fourth quarter and year-end results. However, we believe there are signs the trucking industry as a whole, in the year 2000, will not perform up to the high standards set in 1999. While we believe we will perform at a level above our competitors, industry factors will impact our business."
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 Year ended
December 31, December 31,
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1999 1998 1999 1998
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REVENUES:
New and used truck sales $153,349 $114,511 $554,571 $422,754
Parts and service 35,981 28,842 130,548 108,024
Construction
equipment sales 20,851 10,661 62,042 35,402
Lease and rental 7,102 4,954 25,375 18,594
Finance and insurance 2,752 3,292 13,581 11,432
Retail sales 5,008 4,190 18,573 13,895
Other 1,213 737 3,665 2,684
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TOTAL REVENUES 226,256 167,187 808,355 612,785
COST OF PRODUCTS SOLD 188,497 138,049 673,563 508,242
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GROSS PROFIT 37,759 29,138 134,792 104,543
SELLING, GENERAL
AND ADMINISTRATIVE 25,066 19,676 93,502 75,849
DEPRECIATION
AND AMORTIZATION 1,892 1,473 6,162 4,813
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OPERATING INCOME 10,801 7,989 35,128 23,881
INTEREST EXPENSE, NET 2,842 1,549 8,185 5,884
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INCOME BEFORE INCOME TAXES 7,959 6,440 26,943 17,997
PROVISION FOR INCOME TAXES 3,184 2,578 10,777 7,200
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NET INCOME $ 4,775 $ 3,862 $ 16,166 $ 10,797
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EARNINGS PER SHARE:
Basic $ 0.68 $ 0.58 $ 2.40 $ 1.62
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Diluted $ 0.66 $ 0.58 $ 2.34 $ 1.62
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Weighted average
shares outstanding
Basic 7,002 6,644 6,735 6,644
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Diluted 7,180 6,669 6,888 6,669
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