UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) July 20, 2004
RUSH ENTERPRISES, INC.
(Exact name of registrant as specified in its charter)
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Texas |
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0-20797 |
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74-1733016 |
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(State or other jurisdiction of incorporation) |
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(Commission File Number) |
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(IRS Employer Identification No.) |
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555 IH-35 South, Suite 500, New Braunfels, Texas |
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78130 |
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(Address of principal executive offices) |
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(Zip Code) |
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Registrant’s telephone number, including area code: (830) 626-5200
(Former name or former address, if changed since last report.)
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(a) Financial Statements of Business Acquired.
None.
(b) Pro Forma Financial Information.
None.
(c) Exhibits
99.1 Press Release
Item 12. Results of Operations and Financial Condition.
On July 20, 2004, the Company issued a press release regarding its financial results for the quarter ended June 30, 2004. A copy of the press release issued by the Company concerning its financial results is attached hereto as Exhibit 99.1 and incorporated herein by reference.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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RUSH ENTERPRISES, INC. |
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By |
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/s/Martin A. Naegelin, Jr. |
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Martin A Naegelin, Jr. |
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Vice President and Chief Financial Officer |
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Dated: July 20, 2004 |
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EXHIBIT 99.1
Contact:
Rush Enterprises Inc., San Antonio
Martin A. Naegelin, Jr., 830-626-5230
Adam Friedman Associates
Adam Friedman, 212-981-2529, ext. 18
RUSH ENTERPRISES, INC. REPORTS SECOND QUARTER RESULTS
Earnings Per Share Increases to $0.26 Compared to $0.15 in 2003
SAN ANTONIO, Texas, July 20, 2004 — Rush Enterprises, Inc. (NASDAQ: RUSHA & RUSHB), whose operations include the largest network of Peterbilt heavy-duty truck dealerships in North America and a John Deere construction equipment dealership in Houston, Texas, today announced results for the second quarter ended June 30, 2004.
In the second quarter, the Company’s gross revenues totaled $267.2 million, a 38.2% increase from gross revenues of $193.3 million reported for the second quarter ended June 30, 2003. Net income was $4.1 million, or $0.26 per diluted share, during the second quarter of 2004 compared to $2.2 million, or $0.15 per diluted share, in the second quarter of 2003. Income from continuing operations was $4.1 million, or $0.25 per diluted share, during the second quarter of 2004 compared to $2.3 million, or $0.16 per diluted share in the second quarter of 2003.
The Company’s truck segment recorded revenues of $253.3 million in the second quarter of 2004, compared to $179.3 million in the second quarter of 2003. The Company delivered 1,283 new heavy-duty trucks, 433 medium-duty trucks and 647 used trucks during the second quarter of 2004, compared to 755 new heavy-duty trucks, 211 medium-duty trucks and 588 used trucks for the same period in 2003. Parts, service and body shop sales increased 12.2% from $60.0 million in the second quarter of 2003 to $67.3 million in the second quarter of 2004.
The Company’s construction equipment segment recorded revenues of $11.5 million in the second quarter of 2004, compared to $12.0 million in the second quarter of 2003. Revenue generated from the sale of new construction equipment units remained flat in the second quarter of 2004 compared to the second quarter of 2003, while revenue generated from the sale of used construction equipment units decreased approximately 41% in the second quarter of 2004 compared to the second quarter of 2003. Parts, service and body shop sales for the second quarter of 2004 were $3.4 million compared to $3.1 million in the second quarter of 2003. Pretax income from the construction equipment segment increased from $0.6 million for the second quarter of 2003 to $0.8 million in the second quarter of 2004.
In announcing the results, W. Marvin Rush, Chairman and Chief Executive Officer of Rush Enterprises, said, “Obviously we are very happy with our performance in the second quarter of 2004. Our prediction of strong demand for both heavy and medium-duty trucks has proven to be accurate as
indicated by the numbers we are reporting today. Manufacturer and component suppliers expect demand for trucks to continue to increase through at least 2006.”
Mr. Rush continued, “The continued upward market trend and Rush’s improving absorption rates should continue to directly correspond to an improving bottom line for the Company.”
Conference Call
Rush Enterprises will host a conference call to review its second quarter results on July 21, 2004 at 10 a.m. EST/9 a.m. CST. The call can be heard live by dialing 800.901.5247 (US) or 617.786.4501 (International) and entering the passcode 38844206, or via the web on the ‘Events’ section of the Company’s website at www.RushEnterprises.com, or at www.fulldisclosure.com, or www.streetevents.com. For those who cannot listen to the live broadcast, the Webcast and audio replay will be available until August 12, 2004 by dialing 888.286.8010 (US) or 617.801.6888 (International) and entering the passcode 26410412.
About Rush Enterprises
Rush Enterprises operates the largest network of Peterbilt heavy-duty truck dealerships in North America and a John Deere construction equipment dealership in Houston, Texas. Its current operations include a network of dealerships located in Texas, California, Oklahoma, Colorado, Arizona, New Mexico, Alabama and Florida. These dealerships provide an integrated, one-stop source for the retail sale of new and used heavy-duty and medium-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.
Certain statements contained herein, including those concerning general industry conditions, and the continued strong demand for heavy and medium-duty trucks, 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, the decrease in demand for heavy and medium-duty trucks, competitive factors, general economic conditions, cyclicality, economic conditions in the new and used truck and construction equipment markets, customer relations, relationships with vendors, the interest rate environment, governmental regulation and supervision, seasonality, distribution networks, product introductions and acceptance, technological change, changes in industry practices, onetime events and other factors described herein and in filings made by the company with the Securities and Exchange Commission.
-Tables to Follow-
RUSH ENTERPRISES, INC., AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
JUNE 30, 2004 AND DECEMBER 31, 2003
(In Thousands, Except Shares and Per Share Amounts)
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June 30, |
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December 31, |
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(Unaudited) |
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(Audited) |
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ASSETS |
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CURRENT ASSETS: |
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Cash and cash equivalents |
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$ |
33,977 |
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$ |
34,389 |
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Accounts receivable, net |
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38,399 |
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24,492 |
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Inventories |
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135,878 |
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137,423 |
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Assets held for sale |
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9,060 |
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8,824 |
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Prepaid expenses and other |
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1,591 |
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1,122 |
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Deferred income taxes |
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2,811 |
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2,863 |
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Total current assets |
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221,716 |
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209,113 |
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PROPERTY AND EQUIPMENT, net |
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120,862 |
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114,477 |
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OTHER ASSETS, net |
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44,440 |
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43,288 |
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Total assets |
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$ |
387,018 |
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$ |
366,878 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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CURRENT LIABILITIES: |
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Floor plan notes payable |
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$ |
117,865 |
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$ |
108,235 |
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Current maturities of long-term debt |
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22,655 |
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23,767 |
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Advances outstanding under lines of credit |
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17,560 |
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17,732 |
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Trade accounts payable |
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16,332 |
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16,170 |
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Accrued expenses |
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28,260 |
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29,096 |
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Total current liabilities |
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202,672 |
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195,000 |
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LONG-TERM DEBT, net of current maturities |
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64,930 |
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66,261 |
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DEFERRED INCOME TAXES, net |
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17,474 |
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16,911 |
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COMMITMENTS AND CONTINGENCIES |
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SHAREHOLDERS’ EQUITY: |
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Preferred stock, par value $.01 per share; 1,000 shares authorized; 0 shares outstanding in 2003 and 2004 |
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— |
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Common stock, par value $.01 per share; 50,000,000 shares authorized; 14,042,304 shares outstanding in 2003 and 14,984,824 shares outstanding in 2004 |
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149 |
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140 |
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Additional paid-in capital |
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46,281 |
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39,337 |
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Retained earnings |
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55,512 |
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49,229 |
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Total shareholders’ equity |
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101,942 |
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88,706 |
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Total liabilities and shareholders’ equity |
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$ |
387,018 |
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$ |
366,878 |
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RUSH ENTERPRISES, INC., AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, Except Per Share Amounts)
(Unaudited)
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Three months ended |
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Six months ended |
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2004 |
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2003 |
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2004 |
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2003 |
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REVENUES: |
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New and used truck sales |
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$ |
177,456 |
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$ |
111,628 |
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$ |
323,724 |
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$ |
202,846 |
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Parts and service |
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72,328 |
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64,371 |
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139,333 |
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119,082 |
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Construction equipment sales |
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7,835 |
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8,519 |
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15,378 |
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14,176 |
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Lease and rental |
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6,805 |
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6,319 |
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13,476 |
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12,443 |
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Finance and insurance |
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2,058 |
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1,563 |
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3,781 |
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2,931 |
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Other |
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697 |
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859 |
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1,371 |
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1,397 |
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Total revenues |
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267,179 |
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193,259 |
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497,063 |
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352,875 |
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COST OF PRODUCTS SOLD |
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221,592 |
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154,840 |
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410,065 |
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280,282 |
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GROSS PROFIT |
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45,587 |
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38,419 |
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86,998 |
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72,593 |
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SELLING, GENERAL AND ADMINISTRATIVE |
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34,993 |
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30,854 |
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69,587 |
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59,943 |
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DEPRECIATION AND AMORTIZATION |
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2,280 |
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2,252 |
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4,476 |
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4,442 |
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OPERATING INCOME |
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8,314 |
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5,313 |
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12,935 |
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8,208 |
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INTEREST EXPENSE, NET |
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1,536 |
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1,613 |
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3,083 |
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3,161 |
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GAIN ON SALE OF ASSETS |
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29 |
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191 |
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459 |
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299 |
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INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
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6,807 |
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3,891 |
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10,311 |
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5,346 |
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PROVISION FOR INCOME TAXES |
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2,723 |
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1,557 |
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4,125 |
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2,139 |
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INCOME FROM CONTINUING OPERATIONS |
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4,084 |
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2,334 |
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6,186 |
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3,207 |
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GAIN (LOSS) FROM DISCONTINUED OPERATIONS, NET |
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44 |
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(100 |
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97 |
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(647 |
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NET INCOME |
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$ |
4,128 |
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$ |
2,234 |
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$ |
6,283 |
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$ |
2,560 |
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EARNINGS PER COMMON SHARE – BASIC |
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Income from continuing operations |
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$ |
.27 |
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$ |
.17 |
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$ |
.41 |
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$ |
.23 |
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Net income |
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$ |
.28 |
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$ |
.16 |
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$ |
.42 |
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$ |
.18 |
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EARNINGS PER COMMON SHARE – DILUTED |
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Income from continuing operations |
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$ |
.25 |
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$ |
.16 |
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$ |
.39 |
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$ |
.22 |
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Net income |
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$ |
.26 |
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$ |
.15 |
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$ |
.40 |
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$ |
.18 |
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Weighted average shares outstanding: |
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Basic |
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14,985 |
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14,004 |
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14,985 |
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14,004 |
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Diluted |
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16,177 |
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14,583 |
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15,802 |
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14,468 |
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