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) April 18, 2006
RUSH ENTERPRISES, INC.
(Exact name of registrant as specified in its charter)
Texas |
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0-20797 |
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74-1733016 |
(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) |
Registrants telephone number, including area code: (830) 626-5200
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
o Item 2.02. Results of Operations and Financial Condition
On April 18, 2006, the Company issued a press release regarding its financial results for the first quarter ended March 31, 2006. The full text of the press release issued in connection with the announcement is attached as Exhibit 99.1 to this Current Report on Form 8-K. The information furnished in this report, including the information contained in Exhibit 99.1, shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act (the Exchange Act) or otherwise subject to liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 of the Exchange Act, except as expressly set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits
(a) Financial Statements of Business Acquired.
None.
(b) Pro Forma Financial Information.
None.
(c) Exhibits
99.1 Press Release
2
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 |
/s/ Martin A. Naegelin, Jr. |
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Martin A. Naegelin, Jr. |
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Senior Vice President and Chief Financial Officer |
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Dated April 18, 2006 |
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3
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
SAN ANTONIO, Texas, April 18, 2006 Rush Enterprises, Inc. (NASDAQ: RUSHA & RUSHB), which operates the largest network of heavy-duty and medium-duty truck dealerships in North America and a John Deere construction equipment dealership in Houston, Texas, today announced results for the first quarter ended March 31, 2006.
In the first quarter, the Companys gross revenues totaled $497.9 million, a 23.9% increase from gross revenues of $402.0 million reported for the first quarter ended March 31, 2005. Net income for the quarter was $11.6 million, or $0.46 per diluted share, compared with net income of $7.7 million, or $0.31 per diluted share, in the quarter ended March 31, 2005.
The Company began recording stock option expense in the first quarter of 2006 as required by Statement of Financial Accounting Standards No. 123R. This non-cash expense totaled $964,000 ($602,500 after tax or $0.02 per diluted share) in the first quarter of 2006.
The Companys truck segment recorded revenues of $474.3 million in the first quarter of 2006, compared to $388.5 million in the first quarter of 2005. The Company delivered 2,299 new heavy-duty trucks, 891 new medium-duty trucks and 1,058 used trucks during the first quarter of 2006, compared to 2,185 new heavy-duty, 624 new medium-duty and 980 used trucks in the first quarter of 2005. Parts, service and body shop sales increased to $97.5 million in the first quarter of 2006 from $78.5 million in the first quarter of 2005.
The Companys construction equipment segment recorded revenues of $18.9 million in the first quarter of 2006, compared to $11.3 million in the first quarter of 2005. New and used construction equipment unit sales revenue increased 80.0% to $14.4 million in the first quarter of 2006 from $8.0 million in the first quarter of 2005. Construction equipment parts, service and body shop sales increased 25.0% to $4.0 million in the first quarter of 2006 from $3.2 million in the first quarter of 2005.
In announcing the results, W. Marvin Rush, Chairman of Rush Enterprises said, We are very pleased with our first quarter results and are confident about Rushs prospects for the remainder of 2006. Our deliveries of class 8, medium
duty and used trucks are expected to set all time records. Increased truck sales, combined with growing parts, service and body shop revenues, should increase our absorption rate and result in record profits in 2006.
Mr. Rush added, We expect three of the next four years to be at or near record levels for class 8 deliveries. We anticipate, the industry will experience a decline in truck sales in 2007 due to new diesel emission requirements, followed by strong years in 2008 and 2009. We remain committed to improving our absorption rates. We believe this will maximize our profits in 2006 and soften the earnings impact that will result from fewer trucks being sold in 2007. The first quarter comparison yielded an improvement in absorption from 96.4% in 2005 to 100.9% in 2006. We have a stated goal of achieving a 110% absorption rate by 2008.
Mr. Rush added, In March 2006, we reported that Rush purchased certain assets of Great Southern Peterbilt, Inc.s Peterbilt and Hino truck dealership in Jacksonville, Florida. This acquisition provides Rush with the rights to sell Peterbilt and Hino trucks and parts in Jacksonville and provides Rush Enterprises with its fifth location in Florida. Jacksonville is a great city with a growing economy and we believe that Rush Truck Center of Jacksonville will be a great addition to our network of Rush Truck Centers.
Rush Enterprises operates the largest network of heavy-duty truck and medium-duty dealerships in North America and a John Deere construction equipment dealership in Houston, Texas. Its operations include a network of over 40 Rush Truck Centers located in Alabama, Arizona, California, Colorado, Florida, Oklahoma, New Mexico, Tennessee and Texas. The Company has developed its Rush Truck Centers and its Rush Equipment Center as one-stop centers where, at one convenient location, its customers can purchase new or used trucks or construction equipment, purchase insurance products, purchase aftermarket parts and accessories and have service performed by certified technicians. For additional information on Rush Enterprises, Inc., please visit www.rushenterprises.com.
Certain statements contained herein, including those concerning current and projected truck industry conditions, sales and delivery forecasts, anticipated improvement in the Companys absorption rates, and the impact of new diesel emissions standards on the truck market, 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 truck and construction equipment 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.
-Tables to Follow-
(In Thousands, Except Shares and Per Share Amounts)
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March 31, |
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December 31, |
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2006 |
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2005 |
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(Unaudited) |
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ASSETS |
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CURRENT ASSETS: |
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Cash and cash equivalents |
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$ |
121,305 |
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$ |
133,069 |
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Accounts receivable, net |
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53,714 |
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63,473 |
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Inventories |
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355,626 |
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338,212 |
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Prepaid expenses and other |
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1,640 |
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1,829 |
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Deferred income taxes |
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4,220 |
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3,856 |
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Total current assets |
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536,505 |
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540,439 |
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PROPERTY AND EQUIPMENT, net |
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200,525 |
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196,161 |
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OTHER ASSETS, net |
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112,591 |
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103,634 |
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Total assets |
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$ |
849,621 |
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$ |
840,234 |
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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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$ |
307,385 |
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$ |
315,985 |
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Current maturities of long-term debt |
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20,154 |
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18,807 |
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Current maturities of capital lease obligations |
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2,595 |
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2,277 |
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Advances outstanding under lines of credit |
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2,889 |
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2,755 |
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Trade accounts payable |
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26,752 |
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23,327 |
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Accrued expenses |
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52,592 |
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51,151 |
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Total current liabilities |
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412,367 |
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414,302 |
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LONG-TERM DEBT, net of current maturities |
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111,760 |
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114,345 |
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CAPITAL LEASE OBLIGATIONS, net of current maturities |
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13,961 |
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14,628 |
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DEFERRED INCOME TAXES, net |
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24,203 |
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23,339 |
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COMMITMENTS AND CONTINGENCIES |
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SHAREHOLDERS EQUITY: |
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Preferred stock, par value $.01 per share; 1,000,000 shares authorized; 0 shares outstanding in 2005 and 2006 |
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Common stock, par value $.01 per share; 40,000,000 class A shares and 10,000,000 class B shares authorized; 16,770,060 class A shares and 7,895,863 class B shares outstanding in 2005; and 16,856,465 class A shares and 7,935,745 class B shares outstanding in 2006 |
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248 |
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247 |
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Additional paid-in capital |
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164,735 |
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162,603 |
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Retained earnings |
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122,347 |
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110,770 |
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Total shareholders equity |
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287,330 |
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273,620 |
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Total liabilities and shareholders equity |
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$ |
849,621 |
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$ |
840,234 |
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RUSH ENTERPRISES, INC. AND SUBSIDIARIES
(In Thousands, Except Per Share Amounts)
(Unaudited)
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Three months ended |
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2006 |
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2005 |
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REVENUES: |
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New and used truck sales |
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$ |
363,347 |
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$ |
298,931 |
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Parts and service |
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104,867 |
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83,009 |
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Construction equipment sales |
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14,434 |
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7,976 |
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Lease and rental |
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9,380 |
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7,703 |
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Finance and insurance |
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4,065 |
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3,163 |
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Other |
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1,792 |
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1,261 |
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Total revenues |
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497,885 |
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402,043 |
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COST OF PRODUCTS SOLD: |
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New and used truck sales |
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334,172 |
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278,370 |
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Parts and service |
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62,279 |
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50,006 |
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Construction equipment sales |
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12,698 |
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7,018 |
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Lease and rental |
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7,136 |
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5,702 |
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Total cost of products sold |
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416,285 |
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341,096 |
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GROSS PROFIT |
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81,600 |
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60,947 |
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SELLING, GENERAL AND ADMINISTRATIVE |
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56,656 |
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43,608 |
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DEPRECIATION AND AMORTIZATION |
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2,908 |
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2,413 |
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OPERATING INCOME |
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22,036 |
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14,926 |
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INTEREST EXPENSE, NET |
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3,546 |
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2,494 |
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GAIN ON SALE OF ASSETS |
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33 |
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63 |
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INCOME BEFORE INCOME TAXES |
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18,523 |
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12,495 |
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PROVISION FOR INCOME TAXES |
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6,946 |
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4,811 |
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NET INCOME |
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$ |
11,577 |
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$ |
7,684 |
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EARNINGS PER COMMON SHARE BASIC |
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Net income |
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$ |
.47 |
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$ |
.32 |
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EARNINGS PER COMMON SHARE DILUTED |
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Net income |
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$ |
.46 |
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$ |
.31 |
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Weighted average shares outstanding: |
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Basic |
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24,707 |
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23,929 |
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Diluted |
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25,305 |
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24,795 |
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