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 22, 2002

 

 

 

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 9.	Regulation FD Disclosure.

 

On July 22, 2003, the Company issued a press release regarding its financial results for the quarter ended June 30, 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.

 

All of the foregoing information is being furnished under Item 12 – Results of Operations and Financial Condition.  It is being furnished under Item 9 of this Form 8-K in accordance with interim guidance issued by the SEC in Release No. 33-8216.  Such information, including the Exhibits attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933.

 

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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. Naeglin, Jr.
		Vice President and Chief Financial Officer
		Dated July 22, 2003

 

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EXHIBIT 99.1

 

CONTACT:                                 Martin A. Naegelin, Jr.

(830) 626-5230

 

RUSH ENTERPRISES, INC. REPORTS SECOND QUARTER RESULTS

 

SAN ANTONIO, Tex., July 22, 2003 — Rush Enterprises, Inc. (NASDAQ: RUSHA & RUSHB), whose continuing operations includes the largest network of Peterbilt heavy-duty truck dealerships in North America and a John Deere construction equipment dealership in Texas, today announced results for the quarter ended June 30, 2003.

 

In the second quarter, the Company’s gross revenues totaled $193.3 million, a 12.1 percent increase from gross revenues of $172.4 million reported for the second quarter ended June 30, 2002.  Income from continuing operations was $2.3 million, or $0.16 per diluted share, during the second quarter of 2003 compared to $2.1 million, or $0.15 per diluted share, in the second quarter of 2002.  Net income for the quarter was $2.2 million, or $0.15 per diluted share, compared with net income of $2.0 million, or $0.14 per diluted share, reported in the quarter ended June 30, 2002.  The Company recorded a net loss from discontinued operations of $100,000 in the second quarter of 2003.  This loss consists primarily of real estate carrying costs related to the Company’s retail center in Hockley, Texas.

 

The Company’s heavy-duty truck segment recorded revenues of $179.3 million in the second quarter of 2003, compared to $160.6 million in the second quarter of 2002. The Company delivered 990 new trucks and 588 used trucks during the second quarter of 2003 compared to 972 new trucks and 535 used trucks for the same period in 2002.  Parts, service and body shop sales increased 18.8 percent from $50.5 million in the second quarter of 2002 to $60.0 million in the second quarter of 2003.

 

 

The Company’s construction equipment segment recorded revenues of $12.0 million in the second quarter of 2003 compared to $9.7 million in the second quarter of 2002. New and used construction equipment unit sales revenue increased $1.9 million, or 29.0 percent, from the second quarter of 2002 to the second quarter of 2003.  Parts and service sales increased 10.7 percent from $2.8 million in the second quarter of 2002 to $3.1 million in the second quarter of 2003.  Lease and rental sales decreased $58,000, or 27.2 percent, from the second quarter of 2002 to the second quarter of 2003.

 

In announcing the results, W. Marvin Rush, Chairman and Chief Executive Officer of Rush Enterprises, said, “We are very pleased to announce our second quarter results.  Although truck sales remained slow during the second quarter, we are beginning to see an increased level of interest from our customers, and as a result, we are quoting more truck deals.  The industry continues to predict an increase in new truck deliveries in the last half of 2003 and for the truck market to be strong in 2004 through 2006.”  Mr. Rush added, “Since the last strong truck market, we have increased the number of truck locations from 22 to 39, streamlined our expense structure and strengthened our back-end operations.  The sum of these events, coupled with the anticipated increase in industry-wide truck sales, should equal strong financial results for our Company.”

 

Rush Enterprises operates the largest network of Peterbilt heavy-duty truck dealerships in North America and a John Deere construction equipment dealership in Texas. Its current operations include a network of dealerships located in Texas, California, Oklahoma, Louisiana, 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 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. The Company is in the process of discontinuing the operations of its retail farm and ranch superstore that serves the greater San Antonio, Texas area.

 

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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.

 

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RUSH ENTERPRISES, INC., AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

JUNE 30, 2003 AND DECEMBER 31, 2002

 

(In Thousands, Except Shares and Per Share Amounts)

 

		June 30, 2003			December 31, 2002
		(unaudited)			(audited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	21,717		$	24,763
Accounts receivable, net		23,148			24,935
Inventories		120,488			115,333
Assets held for sale		9,358			16,962
Prepaid expenses and other		1,511			1,764
Deferred income taxes		4,268			4,375
Total current assets		180,490			188,132
PROPERTY AND EQUIPMENT, net		116,026			117,859
OTHER ASSETS, net		43,128			38,519
Total assets		$	339,644		$	344,510
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Floor plan notes payable		$	95,180		$	89,288
Current maturities of long-term debt		24,666			24,958
Advances outstanding under lines of credit		17,775			22,395
Trade accounts payable		11,906			15,082
Accrued expenses		26,740			28,414
Total current liabilities		176,267			180,137
LONG-TERM DEBT, net of current maturities		66,795			69,958
DEFERRED INCOME TAXES, net		14,327			14,720
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY:
Preferred stock, par value $.01 per share; 1,000 shares authorized; 0 shares outstanding in 2001 and 2002		—			—
Common stock, par value $.01 per share; 50,000,000 shares authorized; 14,004,088 shares outstanding in 2002 and 2003		140			140
Additional paid-in capital		39,155			39,155
Retained earnings		42,960			40,400
Total shareholders’ equity		82,255			79,695
Total liabilities and shareholders’ equity		$	339,644		$	344,510

 

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RUSH ENTERPRISES, INC., AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME

(In Thousands, Except Per Share Amounts)

(Unaudited)

 

		Three months ended June 30,						Six months ended June 30,
		2003			2002			2003			2002
REVENUES:
New and used truck sales		$	111,628		$	103,110		$	202,846		$	201,329
Parts and service		64,371			54,778			119,082			105,589
Construction equipment sales		8,519			6,604			14,176			12,441
Lease and rental		6,319			6,115			12,443			12,399
Finance and insurance		1,563			1,315			2,931			2,313
Other		859			513			1,397			923
Total revenues		193,259			172,435			352,875			334,994
COST OF PRODUCTS SOLD		154,566			137,416			280,008			267,845
GROSS PROFIT		38,693			35,019			72,867			67,149
SELLING, GENERAL AND ADMINISTRATIVE		31,128			27,727			60,217			54,151
DEPRECIATION AND AMORTIZATION		2,252			2,164			4,442			4,309
OPERATING INCOME		5,313			5,128			8,208			8,689
INTEREST EXPENSE, NET		1,613			1,581			3,161			3,227
GAIN ON SALE OF ASSETS		191			14			299			12
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		3,891			3,561			5,346			5,474
PROVISION FOR INCOME TAXES		1,557			1,424			2,139			2,189
INCOME FROM CONTINUING OPERATIONS		2,334			2,137			3,207			3,285
(LOSS) FROM DISCONTINUED OPERATIONS, NET		(100		)	(147		)	(647		)	(861		)
NET INCOME		$	2,234		$	1,990		$	2,560		$	2,424
EARNINGS (LOSS) PER COMMON SHARE - BASIC
Income from continuing operations		$	.17		$	.15		$	.23		$	.23
Net income (loss)		$	.16		$	.14		$	.18		$	.17
EARNINGS (LOSS) PER COMMON SHARE - DILUTED
Income from continuing operations		$	.16		$	.15		$	.22		$	.23
Net income (loss)		$	.15		$	.14		$	.18		$	.17
Weighted average shares outstanding:
Basic		14,004			14,004			14,004			14,004
Diluted		14,583			14,634			14,468			14,490

 

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