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) March 1, 2004

 

 

 

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 March 1, 2004, the Company issued a press release regarding its financial results for the quarter and fiscal year ended December 31, 2003 .  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.

 

		RUSH ENTERPRISES, INC.
		By		/s/Martin A. Naegelin, Jr.
				Martin A Naegelin, Jr.
				Vice President and Chief Financial Officer
Dated: March 1, 2004

 

3

EXHIBIT 99.1

 

RUSH ENTERPRISES, INC. REPORTS FOURTH QUARTER AND YEAR END RESULTS

 

Contact:

Rush Enterprises Inc., San Antonio

Martin A. Naegelin Jr., 830-626-5230

 

Adam Friedman Associates

Barbara Cano, 212-981-2529, ext 22

 

SAN ANTONIO (March 1, 2004)- Rush Enterprises Inc. (NASDAQ: RUSHA; NASDAQ: RUSHB) today announced results for the quarter and year ended December 31, 2003.  Rush Enterprises’ continuing operations include the largest network of Peterbilt heavy-duty truck dealerships in North America and a construction equipment dealership in Houston, Texas.

 

In the fourth quarter, the Company’s gross revenues totaled $239.7 million, as compared with gross revenues of $197.3 million reported for the fourth quarter ended December 31, 2002, an increase of 21.5%.  The Company reported net income from continuing operations of $3.1 million, or $0.20 per diluted share, during the fourth quarter of 2003 compared to net income from continuing operations of $2.1 million, or $0.15 per diluted share, during the fourth quarter of 2002.  The company reported net income of $3.1 million, or $0.20 per diluted share, during the fourth quarter of 2003 compared to a net loss of ($7.1) million, or ($0.49) per diluted share, during the fourth quarter of 2002.  Included in the 2002 fourth quarter results are one-time nonrecurring and unusual charges, net of income tax benefits, of $7.9 million ($0.54 diluted share) related to the Company’s discontinued operations.

 

Included in the 2003 fourth quarter results from continuing operations is a pretax nonrecurring gain on sale of $1.6 million, recognized for the sale of the Company’s Bossier City, Louisiana dealership.  Additionally, the Company recognized approximately $1.3 million of pretax new and used vehicle inventory valuation losses during the fourth quarter of 2003, compared to approximately $0.5 million during the fourth quarter of 2002.

 

The Company’s heavy-duty truck segment recorded revenues of approximately $ 226.1 million in the fourth quarter of 2003, compared to approximately $186.1 million in the fourth quarter of 2002.  The Company delivered 1,224 new heavy-duty trucks, 271 new medium-duty trucks and 630 used trucks, during the fourth quarter of 2003 compared to 1,029 new heavy-duty trucks, 163 new medium-duty trucks and 557 used trucks for the same period in 2002.  Parts, service and body shop sales increased 24.5 percent from $47.6 million in the fourth quarter of 2002 to $59.3 million in the fourth quarter of 2003.

 

The Company’s construction equipment segment recorded revenues of $11.3 million in the fourth quarter of 2003, compared to $9.8 million in the fourth quarter of 2002.  New and used construction equipment unit sales revenue increased $1.2 million or 17.4 percent from the same period in 2002.  Parts, service and body shop sales increased 16.7 percent from $2.4 million in the fourth quarter of 2002 to $2.8 million in the fourth quarter of 2003.  Consistent with the planned reduction in the rental fleet, the Company’s rental sales decreased from $355,000 in the fourth quarter of 2002 to $108,000 in the fourth quarter of 2003.

 

 

For the year ended December 31, 2003, the Company’s gross revenues totaled $815.3 million, a 7.7 percent increase compared to gross revenues of $757.1 million reported in 2002.  Net income from continuing operations was $9.5 million, or $0.63 per diluted share, during 2003, an 8.3 percent increase compared to net income from continuing operations of $8.7 million or $0.60 per diluted share, during 2002.

 

In announcing the results, W. Marvin Rush, Chairman and Chief Executive Officer of Rush Enterprises, said, “The fourth quarter is particularly important, as it represents the beginning of a significant trend of increasing demand.  Pent up demand, driven by the need to replace aging equipment, combined with an economy that is heating up, will fuel our growth in the coming years.  We are already seeing a marked acceleration of truck orders in the first quarter.”

 

Mr. Rush continued, “We are particularly well positioned to address our customers’ needs, due to the fact that we have a strategically diversified geographic presence in the sunbelt states and the quality of service we offer remains unmatched.  Moreover, in the next few months we will continue to compliment our Peterbilt medium-duty truck line by adding new medium-duty franchises into some of our existing dealerships, enabling us to further penetrate the medium-duty market while leveraging off our existing asset base.  We are confident that we can realize our goal of selling 10,000 new trucks in 2006, as we aggressively pursue both the heavy and medium-duty truck markets.”

 

Conference Call

 

Rush Enterprises will host a conference call to review its fourth quarter and year-end results on March 2, 2004 at 10 a.m., EST (9 a.m. Central Time).  The call can be heard live by dialing 800-299-8538 (US) or 617-786-2902 (International) and entering the passcode 22096559, or via the web on the ‘Events’ section of the Company’s website at www.RushEnterprises.com., 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 March 15, by dialing 888-286-8010 (US) or 617-801-6888 (International) and entering the passcode 20658224.

 

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 industry 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. 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 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

 

DECEMBER 31, 2002 AND 2003

 

(In Thousands, Except Shares and Per Share Amounts)

 

		December 31, 2002			December 31, 2003
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	24,763		$	34,389
Accounts receivable, net		24,935			24,492
Inventories		115,333			137,423
Prepaid expenses and other		1,764			1,122
Assets held for sale		16,962			8,824
Deferred income taxes		4,375			2,863
Total current assets		188,132			209,113
PROPERTY AND EQUIPMENT, net		117,859			114,477
OTHER ASSETS, net		38,519			43,288
Total assets		$	344,510		$	366,878
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Floor plan notes payable		$	89,288		$	108,235
Current maturities of long-term debt		24,958			23,767
Advances outstanding under lines of credit		22,395			17,732
Trade accounts payable		15,082			16,170
Accrued expenses		28,414			29,306
Total current liabilities		180,137			195,210
LONG-TERM DEBT, net of current maturities		69,958			66,261
DEFERRED INCOME TAXES, net		14,720			16,701
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY:
Preferred stock, par value $.01 per share; 1,000 shares authorized; 0 shares outstanding in 2002 and 2003		—			—
Common stock, par value $.01 per share; 50,000,000 shares authorized; 14,004,088 shares outstanding in 2002 and 14,042,304 outstanding in 2003		140			140
Additional paid-in capital		39,155			39,337
Retained earnings		40,400			49,229
Total shareholders’ equity		79,695			88,706
Total liabilities and shareholders’ equity		$	344,510		$	366,878

 

 

RUSH ENTERPRISES, INC., AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In Thousands, Except Per Share Amounts)

 

		Three Months Ended December 31,						Year Ended December 31,
		2003			2002			2003			2002
REVENUES:
New and used truck sales		$	158,270		$	130,903		$	501,757		$	488,456
Parts and service		63,683			50,959			249,818			211,478
Construction equipment sales		7,985			6,803			28,263			24,324
Lease and rental		6,855			6,634			25,847			25,277
Finance and insurance		1,736			1,474			6,286			5,448
Other		1,133			527			3,361			2,164
Total revenues		239,662			197,300			815,332			757,147
COST OF PRODUCTS SOLD		200,427			162,302			662,082			615,942
GROSS PROFIT		39,235			34,998			153,250			141,205
SELLING, GENERAL AND ADMINISTRATIVE		31,958			27,767			124,207			111,721
DEPRECIATION AND AMORTIZATION		2,224			2,127			8,929			8,594
OPERATING INCOME		5,053			5,104			20,114			20,890
INTEREST (EXPENSE)		(1,607		)	(1,622		)	(6,348		)	(6,499		)
GAIN ON SALE OF ASSETS		1,642			44			1,984			155
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		5,088			3,526			15,750			14,546
PROVISION FOR INCOME TAXES		2,035			1,410			6,300			5,818
INCOME FROM CONTINUING OPERATIONS		3,053			2,116			9,450			8,728
GAIN (LOSS) FROM DISCONTINUED OPERATIONS, NET		62			(9,180		)	(621		)	(10,472		)
NET INCOME (LOSS)		$	3,115		$	(7,064	)	$	8,829		$	(1,744	)
EARNINGS PER SHARE:
EARNINGS (LOSS) PER COMMON SHARE - BASIC
Income from continuing operations		$	0.22		$	0.15		$	0.67		$	0.62
Net income (loss)		$	0.22		$	(0.50	)	$	0.63		$	(0.12	)
EARNINGS (LOSS) PER COMMON SHARE - DILUTED
Income from continuing operations		$	0.20		$	0.15		$	0.63		$	0.60
Net income (loss)		$	0.20		$	(0.49	)	$	0.59		$	(0.12	)