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) October 18, 2007
Rush Enterprises, Inc.
(Exact name of registrant as specified in its charter)
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Texas |
0-20797 |
74-1733016 |
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(State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
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555 IH-35 South, Suite 500, New Braunfels, Texas |
78130 |
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| (Address of principal executive offices) | (Zip Code) |
Registrant's 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: | ||
| [ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
| [ ] | Soliciting material pursuant to Rule 14a-12(b) under the Exchange Act (17 CFR 240.14a-12) | |
| [ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
| [ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |
Item 2.02. Results of Operations and Financial Condition.
On October 18, 2007 the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
Exhibit 99.1. Press release dated October 18, 2007
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, 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.
(Registrant) |
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October 18, 2007
(Date) |
/s/ STEVEN L. KELLER
Steven L. Keller Vice President and Chief Financial Officer |
EXHIBIT 99.1
Rush Enterprises, Inc. Reports Third Quarter Results
SAN ANTONIO, Oct. 18, 2007 (PRIME NEWSWIRE) -- Rush Enterprises, Inc. (Nasdaq:RUSHA); (Nasdaq: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 third quarter ended September 30, 2007.
As previously announced, on October 10, 2007, Rush Enterprises, Inc. distributed one additional share of stock for every two shares of Class A common stock, par value $0.01 per share, or Class B common stock, par value $0.01 per share, held by shareholders of record as of October 1, 2007. All share and per share amounts in the attached consolidated balance sheets and consolidated statements of income have been adjusted and restated to reflect the stock split as if it occurred on the first day of the earliest period presented.
In the third quarter, the Company's gross revenues totaled $521.6 million, a 19.9% decrease from gross revenues of $651.3 million reported for the third quarter ended September 30, 2006. Net income for the quarter was $13.1 million, or $0.34 per diluted share, compared with net income of $16.4 million, or $0.43 per diluted share, in the quarter ended September 30, 2006. During the third quarter of 2007, the Company decreased its effective tax rate from 38% to 37% which resulted in reporting an additional $.01 per diluted share.
The Company's truck segment recorded revenues of $491.3 million in the third quarter of 2007, compared to $625.6 million in the third quarter of 2006. The Company delivered 1,820 new heavy-duty trucks, 1,520 new medium-duty trucks and 1,032 used trucks during the third quarter of 2007, compared to 3,512 new heavy-duty trucks, 1,109 new medium-duty trucks and 999 used trucks during the third quarter of 2006. Parts, service and body shop sales increased to $115.5 million in the third quarter of 2007 from $105.6 million in the third quarter of 2006.
The Company's construction equipment segment recorded revenues of $25.3 million in the third quarter of 2007, compared to $20.7 million in the third quarter of 2006. New and used construction equipment unit sales revenue increased 22.6% to $19.5 million in the third quarter of 2007 from $15.9 million in the third quarter of 2006. Construction equipment parts and service sales increased 18.6% to $5.1 million in the third quarter of 2007 from $4.3 million in the third quarter of 2006.
In making the announcement, W. Marvin Rush, Chairman of Rush Enterprises, Inc., said, "I am pleased to announce that we have significantly outperformed the Class 8 truck market in the third quarter. And more importantly, that our business model has proven to be successful in both strong and weak Class 8 truck markets. Our strategic focus to improve the quality of earnings by building a network that is diverse in product offerings, customer base and geography has made us less dependent on Class 8 truck sales. We are confident this diversity -- mainly due to our focus on the less cyclical parts, service and body shop operations, medium-duty truck sales, expansion in the refuse and crane market, and construction equipment sales growth, as well as the ability of our people and stores to operate efficiently -- will continue to allow us to out-perform the Class 8 truck market.
"We believe normal customer trade cycles and new diesel emission regulations scheduled to take effect in 2010 will result in increased Class 8 truck orders beginning in the first half of 2008. The magnitude of the 2008 and 2009 pre-buy will be largely dictated by the economy, among other factors. If general economic conditions in the U. S. are good, we continue to believe 2009 could be a record year for U. S. Class 8 deliveries."
W. M. "Rusty" Rush, President and Chief Executive Officer of Rush Enterprises, Inc., said, "As our results indicate, we were well prepared for the expected downturn in Class 8 truck sales. Year to date, we have increased our absorption rate and outperformed the industry in terms of both Class 8 and medium-duty truck deliveries and increased our construction equipment segment revenue by 22%. This has resulted in our year-to-date net income declining only 8.5% while Class 8 truck deliveries are down 43%.
"Despite the weak Class 8 truck market, our parts, service and body shop sales increased 9%, resulting in another quarter of solid absorption rate performance. This quarter our absorption rate increased to 105.1%, compared to last year's 104.5%, while our year-to-date same store absorption rate increased to 106.1% in 2007 compared to 105.0% in 2006.
"I am extremely proud of the 34% increase in our year-to-date Class 4-7 (medium-duty) truck sales compared to the industry's overall decrease of 8%. This increase is directly related to our focus over the past several years to penetrate the medium-duty market segment in the areas where we operate by providing a knowledgeable dedicated sales staff and offering a breadth of products to meet the varied needs of this customer base. We expect medium-duty truck sales will continue to grow as our medium-duty franchises mature in their respective markets and we strengthen relationships with our customers in this segment," Rusty Rush emphasized.
"I continue to credit the dedication and hard work of our people for the Company's strong performance during this challenging market environment. They continue to operate within a set of core values that include productivity, excellence, fairness and a positive attitude. It is this culture that promotes the entrepreneurial spirit that sustains our success," Rusty Rush concluded.
Conference Call Information
Rush Enterprises will host its quarterly conference call to discuss earnings for the third quarter of 2007 on Friday, October 19, 2007 at 10 a.m. EST/ 9 a.m. CST. The call can be heard live by dialing 800-289-0459 (U.S.) or 913-312-1498 (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 January 10, 2008. Listen to the audio replay until November 30, 2007 by dialing 888-203-1112 (U.S.) or 719-457-0820 (International) and entering the replay pass code 9806004.
About Rush Enterprises, Inc.
Rush Enterprises, Inc. 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. Its operations include a network of over 50 Rush Truck Centers located in Alabama, Arizona, California, Colorado, Florida, Georgia, New Mexico, Oklahoma, 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 and market conditions, the timing of such conditions, sales and delivery forecasts, projections regarding the Company's absorption rates, predictions regarding our ability to outperform the Class 8 truck market, growth of the Company's medium-duty market, ability to properly manage inventories, the Company's prospects and anticipated results for 2007, and the impact of 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.
The Rush Enterprises, Inc. logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3352
RUSH ENTERPRISES, INC. AND SUBSIDIARIES
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CONSOLIDATED BALANCE SHEETS
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(In Thousands, Except Shares and Per Share Amounts)
September 30, December 31,
2007 2006
---------- ----------
Assets (Unaudited)
------
Current assets:
Cash and cash equivalents $ 176,601 $ 161,558
Accounts receivable, net 55,527 74,441
Inventories 386,036 484,696
Prepaid expenses and other 2,094 2,128
Deferred income taxes, net 7,894 7,496
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Total current assets 628,152 730,319
Property and equipment, net 296,312 278,690
Goodwill, net 120,576 117,071
Other assets, net 2,108 2,330
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Total assets $1,047,148 $1,128,410
========== ==========
Liabilities and shareholders' equity
------------------------------------
Current liabilities:
Floor plan notes payable $ 320,351 $ 446,354
Current maturities of long-term debt 26,211 25,999
Current maturities of capital lease
obligations 3,266 2,933
Trade accounts payable 30,278 37,449
Accrued expenses 60,185 61,287
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Total current liabilities 440,291 574,022
Long-term debt, net of current maturities 169,529 166,125
Capital lease obligations, net of current
maturities 13,863 14,799
Deferred income taxes, net 38,344 33,856
Shareholders' equity:
Preferred stock, par value $.01 per share;
1,000,000 shares authorized; 0 shares
outstanding in 2007 and 2006 -- --
Common stock, par value $.01 per share;
60,000,000 class A shares and 20,000,000
class B shares authorized; 25,969,747
class A shares and 12,206,592 class B
shares outstanding in 2007; 25,604,241
class A shares and 12,108,339 class B
shares outstanding in 2006 382 377
Additional paid-in capital 176,109 169,801
Retained earnings 208,630 169,430
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Total shareholders' equity 385,121 339,608
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Total liabilities and shareholders' equity $1,047,148 $1,128,410
========== ==========
RUSH ENTERPRISES, INC. AND SUBSIDIARIES
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CONSOLIDATED STATEMENTS OF INCOME
---------------------------------
(In Thousands, Except Per Share Amounts)
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
---------------------- ----------------------
2007 2006 2007 2006
---------- ---------- ---------- ----------
Revenues:
New and used truck
sales $ 357,408 $ 504,281 $1,091,548 $1,291,345
Parts and service 123,690 113,183 361,488 330,499
Construction
equipment sales 19,465 15,939 56,889 46,079
Lease and rental 13,457 10,978 38,779 30,546
Finance and insurance 5,457 4,717 17,234 13,787
Other 2,121 2,223 6,322 6,137
---------- ---------- ---------- ----------
Total revenues 521,598 651,321 1,572,260 1,718,393
Cost of products sold:
New and used truck
sales 329,629 470,208 1,006,229 1,197,678
Parts and service 73,433 65,330 211,477 193,677
Construction
equipment sales 17,498 14,228 50,880 40,934
Lease and rental 11,297 8,472 32,712 23,506
---------- ---------- ---------- ----------
Total cost of
products sold 431,857 558,238 1,301,298 1,455,795
---------- ---------- ---------- ----------
Gross profit 89,741 93,083 270,962 262,598
Selling, general and
administrative 61,780 59,141 184,767 173,318
Depreciation and
amortization 3,769 3,353 11,046 9,367
---------- ---------- ---------- ----------
Operating income 24,192 30,589 75,149 79,913
Interest expense, net 3,444 4,235 12,505 11,299
Gain (loss) on sale of
assets 91 (93) 247 (43)
---------- ---------- ---------- ----------
Income before taxes 20,839 26,261 62,891 68,571
Provision for income
taxes 7,711 9,849 23,691 25,714
---------- ---------- ---------- ----------
Net income $ 13,128 $ 16,412 $ 39,200 $ 42,857
========== ========== ========== ==========
Earnings per common
share: (a)
Basic $ .34 $ .44 $ 1.03 $ 1.15
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Diluted $ .34 $ .43 $ 1.02 $ 1.13
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Weighted average
shares outstanding:
(a)
Basic 38,162 37,647 37,987 37,404
========== ========== ========== ==========
Diluted 38,653 37,899 38,391 37,832
========== ========== ========== ==========
(a) Amounts have been adjusted to reflect the stock split that was
effective October 10, 2007.
CONTACT: Rush Enterprises, Inc., San Antonio
Steven L. Keller
830-626-5226