Press Release Details
Rush Enterprises, Inc. Reports Third Quarter Results
Oct 20, 2010 (GlobeNewswire via COMTEX News Network) --
-- Revenues up 38% compared to Q3 2009
-- Diluted EPS $0.37, up 370% over prior year; Diluted EPS from continuing
operations $0.21, up 168% compared to Q3 2009
-- Company records second highest quarterly absorption rate of 109.1%
-- Increases seen in Class 8 retail truck sales, sustainability remains
questionable
SAN ANTONIO, Texas, Oct. 20, 2010 (GLOBE NEWSWIRE) -- Rush Enterprises, Inc. (Nasdaq:RUSHA) (Nasdaq:RUSHB), which operates the largest network of commercial vehicle dealerships in North America, today announced results for the third quarter ended September 30, 2010.
In the third quarter ended September 30, 2010, the Company's gross revenues from continuing operations totaled $405.8 million, a 38.1% increase from gross revenues from continuing operations of $293.9 million reported for the third quarter ended September 30, 2009. Income from continuing operations for the quarter was $8.0 million, or $0.21 per diluted share, compared with income from continuing operations of $3.0 million, or $0.08 per diluted share, in the quarter ended September 30, 2009. The Company reported net income for the quarter of $14.2 million, or $0.37 per diluted share, compared with a net income of $3.0 million, or $0.08 per diluted share, in the quarter ended September 30, 2009.
On September 9, 2010, the Company sold the assets of its John Deere construction equipment business, including its Rush Equipment Centers in Houston and Beaumont, Texas, to Doggett Heavy Machinery Services, LLC. The construction equipment business recorded income from discontinued operations, net of tax, of $6.1 million ($0.16 per diluted share) during the third quarter of 2010, compared to $20,000 during the third quarter of 2009. A majority of the income from discontinued operations during the quarter is attributable to the gain on the sale of Rush Equipment Centers' assets.
The Company's truck segment recorded revenues of $401.7 million in the third quarter of 2010, compared to $289.8 million in the third quarter of 2009. The Company delivered 1,283 new heavy-duty trucks, 678 new medium-duty trucks and 899 used trucks during the third quarter of 2010, compared to 1,030 new heavy-duty trucks, 637 new medium-duty trucks and 760 used trucks in the third quarter of 2009. Parts, service and body shop sales revenue was $133.3 million in the third quarter of 2010, compared to $96.0 million in the third quarter of 2009.
"Despite the fact that general economic uncertainty continues to negatively impact demand for new trucks, we were able to increase new Class 8 truck deliveries by 25% as compared to the same quarter last year and 58% over the second quarter of 2010, reaching the highest levels of new Class 8 truck deliveries we've seen since the fourth quarter of 2008," said W. M. "Rusty" Rush, President and Chief Executive Officer for Rush Enterprises, Inc.
"Major oilfield and general freight fleet customers have gained enough confidence in their business outlook to begin to invest in new Class 8 trucks this quarter. New truck sales are clearly poised for a return to historically normal levels as customers have accepted the new emissions-compliant engine technology and pricing, and the age of the current fleet continues to drive the need for truck replacement," explained Rusty Rush.
"However, the sustainability of this increase in new truck retail sales activity is still in question. Until improvements are evident in major sectors that drive freight movement, like residential construction and capital goods manufacturing, new truck sales may remain volatile. However, used Class 8 truck sales and values are expected to remain strong for the foreseeable future," Rusty Rush said.
"Manufacturer production delays limited the availability of medium-duty trucks, which negatively impacted Rush's medium-duty truck sales this quarter. In addition, we continue to work to replace lost GM franchise revenues with other truck brands. To this end, we recently acquired a Ford and Isuzu dealership in Dallas. We have now acquired seven new medium-duty franchises since GM announced that it was discontinuing its medium-duty product line," continued Rusty Rush.
"Parts, service and body shop revenues continued to be strong throughout the third quarter, up 38% over Q3 2009 and approaching peak levels achieved prior to the downturn in 2008. This resulted in a third quarter absorption rate of 109.1%, the second highest quarterly absorption rate in the Company's history. As freight continues to increase and truck utilization remains high, we expect parts, service and body shop sales to continue to remain strong, impacted only by typical seasonality and fewer working days in November and December," added Rusty Rush.
"We are very encouraged by the performance of our recently acquired International and Ford franchises. We are excited about our expanding relationships with International and Ford and believe that there are opportunities for continued growth with these manufacturers. We continue to evaluate opportunities to extend our contiguous network of dealership locations into other parts of the country and expand the breadth of product we offer so that we can offer our solutions to new customers," said Rusty Rush.
"We are very proud of the company's strong financial performance this quarter. It appears that we may finally be approaching a turning point in the truck sales market. It is encouraging to see an uptick in truck sales activity to complement the increase in parts, service and body shop sales we've seen throughout 2010," concluded W. Marvin Rush, Chairman of Rush Enterprises, Inc.
Conference Call Information
Rush Enterprises will host its quarterly conference call to discuss earnings for the third quarter on Thursday, October 21, 2010, at 11 a.m. Eastern/10 a.m. Central. The call can be heard live by dialing 877-638-4557 (US) or 914-495-8522 (International) or via the Internet at http://investor.rushenterprises.com/events.cfm.
For those who cannot listen to the live broadcast, the webcast will be available on our website at the above link until February 15, 2011. Listen to the audio replay until October 28, 2010, by dialing 800-642-1687 (US) or 706-645-9291 (International) and entering the conference ID 15535467.
About Rush Enterprises, Inc.
Rush Enterprises, Inc. owns and operates the largest network of commercial vehicle dealerships in the United States, representing truck and bus manufacturers including Peterbilt, International, Hino, Isuzu, Ford, UD, Blue Bird, IC, Diamond and Elkhart. The Company's vehicle centers are strategically located in high traffic areas on or near major highways in 14 states throughout the southern and western United States. These one-stop centers offer an integrated approach to meeting customer needs -- from sales of new and used vehicles to aftermarket parts, service and body shop operations plus a wide array of financial services, including financing, insurance, leasing and rental. Rush Enterprises' operations also provide vehicle up-fitting, chrome accessories and tires. For more information, please visit www.rushenterprises.com.
The Rush Enterprises, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3352
Certain statements contained herein, including those concerning current and projected truck industry and market conditions, sales forecasts, the Company's acquisition prospects, and the impact of general economic conditions 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. Important 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, competitive factors, general U.S. economic conditions, economic conditions in the new and used commercial vehicle markets, customer relations, relationships with vendors, the interest rate environment, governmental regulation and supervision, product introductions and acceptance, changes in industry practices, onetime events and other factors described herein and in filings made by the Company with the Securities and Exchange Commission.
RUSH ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Shares and Per Share Amounts)
September 30, December 31,
2010 2009
------------------ ------------------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 150,902 $ 149,095
Accounts receivable, net 67,889 38,869
Inventories, net 335,995 252,219
Prepaid expenses and other 3,754 3,650
Assets held for sale -- 22,719
Deferred income taxes, net 9,670 11,414
------------------ ------------------
Total current assets 568,210 477,966
Investments 7,575 7,575
Property and equipment, net 414,754 353,841
Goodwill, net 147,213 136,761
Other assets, net 6,972 1,154
------------------ ------------------
Total assets $ 1,144,724 $ 977,297
================== ==================
Liabilities and shareholders'
equity
Current liabilities:
Floor plan notes payable $ 252,383 $ 189,256
Current maturities of
long-term debt 52,359 55,545
Current maturities of capital
lease obligations 6,843 5,730
Trade accounts payable 37,533 22,427
Accrued expenses 64,511 40,843
------------------ ------------------
Total current liabilities 413,629 313,801
Long-term debt, net of current
maturities 193,159 153,957
Capital lease obligations, net
of current maturities 30,170 28,714
Other long-term liabilities 1,114 --
Deferred income taxes, net 53,910 54,600
Shareholders' equity:
Preferred stock, par value
$.01 per share; 1,000,000
shares authorized; 0 shares
outstanding in 2010 and 2009 -- --
Common stock, par value $.01
per share; 60,000,000 class A
shares and 20,000,000
class B shares authorized;
26,663,588 class A shares and
10,693,641 class B shares
outstanding in 2010; and
26,437,848 class A shares and
10,689,375 class B shares
outstanding in 2009 390 388
Additional paid-in capital 193,227 188,116
Treasury stock, at cost:
1,639,843 class B shares (17,948) (17,948)
Retained earnings 277,753 255,669
Accumulated other
comprehensive loss, net of
tax (680) --
------------------ ------------------
Total shareholders' equity 452,742 426,225
------------------ ------------------
Total liabilities and
shareholders' equity $ 1,144,724 $ 977,297
================== ==================
RUSH ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- --------------------
2010 2009 2010 2009
--------- --------- --------- ---------
Revenues:
New and used truck sales $ 248,324 $ 179,121 $ 620,237 $ 562,263
Parts and service 136,095 98,805 356,452 302,271
Lease and rental 18,254 13,300 48,541 40,012
Finance and insurance 2,182 1,729 5,714 5,600
Other 986 986 4,024 3,857
--------- --------- --------- ---------
Total revenue 405,841 293,941 1,034,968 914,003
Cost of products sold:
New and used truck sales 228,864 167,396 570,027 530,069
Parts and service 83,190 59,668 218,041 184,215
Lease and rental 15,590 11,756 41,461 35,273
--------- --------- --------- ---------
Total cost of products sold 327,644 238,820 829,529 749,557
--------- --------- --------- ---------
Gross profit 78,197 55,121 205,439 164,446
Selling, general and
administrative 60,392 50,340 165,677 149,257
Depreciation and amortization 4,068 3,724 11,291 12,247
Gain (loss) on sale of assets (5) 88 (9) 166
--------- --------- --------- ---------
Operating income 13,732 1,145 28,462 3,108
Interest expense, net 1,357 1,428 4,051 4,388
--------- --------- --------- ---------
Income (loss) from continuing
operations before taxes 12,375 (283) 24,411 (1,280)
Provision (benefit) for
income taxes 4,344 (3,271) 9,042 (4,914)
--------- --------- --------- ---------
Income from continuing
operations 8,031 2,988 15,369 3,634
Income from discontinued
operations, net of tax 6,128 20 6,715 716
--------- --------- --------- ---------
Net income $ 14,159 $ 3,008 $ 22,084 $ 4,350
========= ========= ========= =========
Earnings per common share -
Basic:
Income from continuing
operations $ .22 $ .08 $ .41 $ .10
Net income $ .38 $ .08 $ .59 $ .12
Earnings per common share -
Diluted:
Income from continuing
operations $ .21 $ .08 $ .40 $ .10
Net income $ .37 $ .08 $ .58 $ .12
Weighted average shares
outstanding:
Basic 37,350 37,110 37,271 37,047
Diluted 38,198 37,780 38,087 37,469
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: Rush Enterprises, Inc.
CONTACT: Rush Enterprises, Inc., San Antonio Steven L. Keller 830-626-5226
(C) Copyright 2010 GlobeNewswire, Inc. All rights reserved.
News Provided by COMTEX
