Rush Enterprises Inc. Reports Third Quarter Results
18 October 2000
Rush Enterprises Inc. Reports Third Quarter Results
SAN ANTONIO--Oct. 17, 2000--Rush Enterprises Inc. , which operates the largest network of Peterbilt heavy-duty truck dealerships in North America, as well as John Deere construction equipment dealerships in Texas and Michigan, and two of the largest farm and ranch superstores (D&D) in America, today announced results for the third quarter ended Sept. 30, 2000.In the third quarter of 2000, the Company's gross revenues totaled $227.4 million, a 5.9 percent increase over gross revenues of $214.8 million reported for the third quarter ended Sept. 30, 1999. Net income for the quarter decreased 50.0 percent to $2.1 million, or $0.30 per diluted share, compared with net income of $4.2 million, or $0.61 per share reported in the quarter ended Sept. 30, 1999.
The Company's heavy-duty truck segment recorded revenues of $190.3 million in the third quarter of 2000, compared to $183.8 million in the third quarter of 1999. The Company delivered 1,488 and 528 new and used trucks, respectively, during the third quarter of 2000 compared to 1,428 and 509 new and used trucks, respectively, for the same period in 1999. Parts, service and body shop sales increased 52.1 percent from $26.3 million to $40.0 million from the third quarter of 1999 to the third quarter of 2000. The acquisitions of the Arizona, New Mexico and southern California locations during the fourth quarter of 1999 significantly impacted the increase in 2000 revenues.
The Company's construction equipment segment recorded revenues of $27.4 million in the third quarter of 2000, compared to $24.6 million in the third quarter of 1999. The Company delivered 230 and 68 new and used construction equipment units, respectively, during the third quarter of 2000 compared to 185 and 68 new and used construction equipment units, respectively, for the same period in 1999. Parts and service sales increased 22.0 percent from $5.0 million to $6.1 million from the third quarter of 1999 to the third quarter of 2000. Rental sales remained steady at $2.5 million, from the third quarter of 1999 to the third quarter of 2000. The September 1999 acquisition of the eastern Michigan locations impacted the increase in 2000 revenues.
In announcing the results, W. Marvin Rush, Chairman and Chief Executive Officer of Rush Enterprises, said, "As indicated by our third quarter results, the truck and construction equipment markets remain soft. The oversupply of used trucks, high fuel prices and increased interest rates have negatively impacted earnings. We expect industry conditions to continue to weaken and have taken the steps necessary to operate in this environment. We remain positioned to take advantage of any opportunities that may arise."
RUSH ENTERPRISES INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except earnings per share - unaudited)
Three months ended Nine months ended
Sept. 30, Sept. 30,
-------------------- -------------------
2000 1999 2000 1999
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REVENUES:
New and used truck sales $144,128 $149,931 $444,652 $401,222
Parts and service 47,693 32,949 133,346 94,567
Construction equipment
sales 18,388 16,592 56,799 41,191
Lease and rental 7,845 6,936 22,196 18,273
Finance and insurance 1,278 3,326 6,503 10,829
Retail sales 7,334 4,454 19,381 13,565
Other 703 656 2,980 2,452
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TOTAL REVENUES 227,369 214,844 685,857 582,099
COST OF PRODUCTS SOLD 186,009 181,179 568,260 485,066
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GROSS PROFIT 41,360 33,665 117,597 97,033
SELLING, GENERAL AND
ADMINISTRATIVE 30,935 23,229 90,952 68,436
DEPRECIATION AND
AMORTIZATION 2,502 1,483 6,829 4,270
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OPERATING INCOME 7,923 8,953 19,816 24,327
INTEREST EXPENSE 4,426 1,977 11,637 5,343
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INCOME BEFORE INCOME TAXES 3,497 6,976 8,179 18,984
PROVISION FOR INCOME TAXES 1,399 2,791 3,272 7,594
-------- -------- -------- --------
NET INCOME $2,098 $4,185 $4,907 $11,390
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EARNINGS PER SHARE:
Basic $0.30 $0.63 $0.70 $1.71
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Diluted $0.30 $0.61 $0.70 $1.68
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Weighted average shares
outstanding
Basic 7,002 6,646 7,002 6,646
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Diluted 7,002 6,860 7,030 6,799
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