updated 2/15/2011 5:16:19 PM ET 2011-02-15T22:16:19

  • Annual revenues up 25% compared to 2009
  • Annual diluted EPS $0.82, up 413% over prior year; diluted EPS from continuing operations $0.64, up 300% compared to 2009
  • Record quarterly absorption rate of 110.2% in the fourth quarter

SAN ANTONIO, Feb. 15, 2011 (GLOBE NEWSWIRE) -- Rush Enterprises, Inc. (Nasdaq:RUSHA) (Nasdaq:RUSHB), which operates the largest network of commercial vehicle dealerships in North America, today announced results for the fourth quarter and year ended December 31, 2010.

For the quarter ended December 31, 2010, the Company's gross revenues from continuing operations totaled $463.0 million, a 61.6% increase from gross revenues from continuing operations of $286.5 million reported in the fourth quarter of 2009. The Company reported income from continuing operations and net income for the quarter of $9.2 million, or $0.24 per diluted share, compared with income from continuing operations and net income of $1.5 million, or $0.04 per diluted share, in the fourth quarter of 2009.

The Company earns federal income tax credits on the sale of alternative fuel vehicles to tax-exempt entities. These tax credits are reflected as tax benefits in the Company's Consolidated Statements of Operations. A portion of these tax credits are passed back to the tax-exempt customer and are reflected as selling expense to the Company in the quarter in which the trucks are sold. The net effect of the federal tax credits and the pass through payments to tax-exempt customers was $1.4 million, or $.04 per diluted share, for the quarter ended December 31, 2010 and $0.2 million for the quarter ended December 31, 2009. These alternative fuel tax credits and the amount passed back to the customers are directly attributable to the sale of a truck. Accordingly, the Company believes the tax credits and the amounts passed back to customers should be considered operating items when analyzing the financial performance of the Company. 

For the year ended December 31, 2010, the Company's gross revenues from continuing operations totaled $1.5 billion, a 25% increase from gross revenues from continuing operations of $1.2 billion reported in 2009. Income from continuing operations for the year was $24.6 million, or $0.64 per diluted share, compared with income from continuing operations of $5.1 million, or $0.14 per diluted share, in 2009.  The Company reported net income for the year of $31.3 million, or $0.82 per diluted share, compared with a net income of $5.9 million, or $0.16 per diluted share in 2009. 

On September 9, 2010, the Company sold the assets of its John Deere construction equipment business, including its Rush Equipment Centers in Houston and Beaumont, Texas.  The construction equipment business recorded income from discontinued operations, net of tax, of $6.7 million ($0.18 per diluted share) during 2010, compared to $0.8 million ($0.02 per diluted share) during 2009. A majority of the income from discontinued operations during 2010 is attributable to the gain on the sale of Rush Equipment Centers' assets. 

The Company sold 11,141 new and used commercial vehicles in 2010, a 17.4% increase compared to 9,490 new and used commercial vehicles in 2009. The Company delivered 4,746 new heavy-duty trucks, 2,934 new medium-duty commercial vehicles and 3,461 used commercial vehicles during 2010, compared 3,972 new heavy-duty trucks, 2,643 new medium-duty commercial vehicles and 2,875 used commercial vehicles during 2009. Parts, service and body shop sales from our truck segment increased by 24.8% to $479.1 million in 2010 from $384.0 million in 2009. 

During the fourth quarter of 2010, the Company delivered 1,681 new heavy-duty trucks, 813 new medium-duty commercial vehicles and 987 used commercial vehicles, compared to 956 new heavy-duty trucks, 614 new medium-duty commercial vehicles and 762 used commercial vehicles during the fourth quarter of 2009.  Parts, service and body shop sales revenue from our truck segment increased 44.1% to $130.4 million in the fourth quarter of 2010, compared to $90.5 million in the fourth quarter of 2009.

"Despite another year of weak truck sales, 2010 was a very significant year for the Company. We matched our record high annual absorption rate of 106% – previously achieved in 2008, fulfilled our commitment to grow our service network, established a new Navistar Division, extended the breadth of our product offerings in existing areas of responsibility and ended the year in a strong financial position," said W. M. "Rusty" Rush, president and chief executive officer of Rush Enterprises, Inc.

"During the spring of 2010, our parts, service and body shop business began accelerating from the depressed levels we experienced throughout 2009, and continued to accelerate to record high levels at the end of the year. Our parts, service and body shop revenues were up 24% in 2010 compared to 2009, primarily due to increased maintenance and repair on aging vehicles that were put back into service during the year as well as significant increases in the oil and gas service industry in the south central U.S. This increase resulted in a fourth quarter absorption rate of 110%, the highest quarterly absorption rate we have ever achieved, and an annual absorption rate of 106%. We expect parts, service and body shop operations to remain strong in 2011," continued Rusty Rush.

"We formed a new Navistar Division within the Company, naming Richard J. Ryan as Senior Vice President - Navistar Dealerships, and completed the acquisition of the assets of Lake City International – adding 11 International dealership locations in Utah, Idaho and Oregon.  We are very pleased with the performance of our new International dealerships, and more importantly, are excited about the growth potential for this new division, not only in incremental truck sales for Rush Truck Centers but also in parts and service revenues. We look forward to continued growth in our relationship with Navistar as we continue to expand our geographic network of truck centers," added Rusty Rush.

"We opened a new flagship facility in Oklahoma City, replacing our existing Peterbilt and Hino dealership location there and added Isuzu and Ford commercial truck franchises to the newly opened location. We also added a Ford and Isuzu commercial truck dealership in Dallas, Texas and Isuzu commercial truck franchises to our Sealy, Texas and Orlando, Florida dealerships. Investment in our existing Rush Truck Centers network and the addition of medium-duty franchises allows us to better serve customers in our existing markets with more service capabilities and a broader medium-duty vehicle offering," said Rusty Rush. 

"We also completed the sale of our John Deere franchise in Texas, but will seek opportunities to re-enter the construction equipment dealership business with a brand leader that we can support with a contiguous network, similar to our truck centers business model," Rusty Rush explained.

"The Company ended the year with $169 million in cash and cash equivalents, an increase of $20 million compared to year end 2009. This positive cash flow is net of $39 million in cash paid for business acquisitions.  Given the economic uncertainty that plagued consumer confidence throughout the year and hesitation by fleet customers to invest in major truck purchases, I am very pleased with our financial performance this year and our strong financial position headed into the industry upturn," added Rusty Rush.

"We are encouraged by the continuing improvement in Class 8 and medium-duty truck orders during the past several months.  We believe this increase in new truck orders reflects the replacement of existing aged trucks that are currently in service and does not reflect fleet expansion or growth. While U.S. Class 8 order intake has reached over 25,000 units for three consecutive months, retail sales are not expected to substantially increase until later in 2011, causing the new truck sales market to remain competitive and challenging throughout the first half of the year. Industry experts forecast 2011 U.S. Class 8 truck sales to reach 179,000 units, up from 110,109 units sold in 2010. Current industry projections are for U.S. Class 4-7 retail sales in 2011 to be 128,300 units, up from 117,572 units in 2010. If economic conditions continue to improve, we expect that activity will increase in automotive and capital goods manufacturing as well as residential and commercial construction, which should result in strong truck sales markets in 2012 and 2013," Rusty Rush added.   

"Our strong financial position will continue to allow us to fund significant investments in pending acquisitions and employee programs," continued Rusty Rush. "We recently entered into an agreement to acquire certain assets of Asbury Automotive Atlanta, LLC's Nalley Motor Trucks dealerships in metro Atlanta, and we are scheduled to acquire a Ford Commercial Truck franchise in Orlando next week.    When completed, these acquisitions will expand the Company's contiguous network of Rush Truck Centers in the southeast and result in the Company operating 65 Rush Truck Center locations in 14 states. We also announced that we will increase the Company's matching contribution to its employee 401K program," Rusty Rush said.

"We are very proud of the Company's financial performance this year and are encouraged by strong parts, service and body shop operations and signs of increasing new truck sales. We are very optimistic about the possibilities for growth as we see signs of an emerging market up-cycle. We remain grateful to our dedicated employees, who have persevered throughout this market downturn and continued to serve our customers well," said W. Marvin Rush, chairman and founder, Rush Enterprises, Inc.

Conference Call Information

Rush Enterprises will host its quarterly conference call to discuss earnings for the fourth quarter and year-end on Wednesday, February 16, 2011, at 11 a.m. Eastern/10 a.m. Central. The call can be heard live by dialing 877-638-4557 (US) or 914-495-8522 (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 April 15, 2011. Listen to the audio replay until February 23, 2011 by dialing 800-642-1687 (US) or 706-645-9291 (International) and entering the conference ID 39861800.

About Rush Enterprises, Inc.

Rush Enterprises, Inc. owns and operates the largest network of commercial vehicle dealerships in the United States, representing truck and bus manufacturers including Peterbilt, International, Hino, Isuzu, Ford, UD, Blue Bird, IC, Diamond and Elkhart. The Company's vehicle centers are strategically located in high traffic areas on or near major highways in 14 states throughout the southern and western United States. These one-stop centers offer an integrated approach to meeting customer needs -- from sales of new and used vehicles to aftermarket parts, service and body shop operations plus a wide array of financial services, including financing, insurance, leasing and rental. Rush Enterprises' operations also provide vehicle up-fitting, chrome accessories and tires. For more information, please visit www.rushenterprises.com .

The Rush Enterprises, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3352

Certain statements contained herein, including those concerning current and projected truck industry and market conditions, sales forecasts, the Company's acquisition prospects, and the impact of general economic 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. 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 commercial vehicle 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.

RUSH ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

 
(In Thousands, Except Shares and Per Share Amounts)
     
  December 31, December 31,
  2010 2009
  (Unaudited)  
Assets    
Current assets:    
 Cash and cash equivalents $ 168,976 $ 149,095
 Accounts receivable, net  43,513  38,869
 Inventories, net  321,933  252,219
 Prepaid expenses and other  14,104  3,650
 Assets held for sale  –   22,719
 Deferred income taxes, net  10,281  11,414
     
 Total current assets  558,807  477,966
     
Investments 7,575 7,575
     
Property and equipment, net  445,919  353,841
     
Goodwill, net 150,388 136,761
     
Other assets, net  5,244  1,154
     
Total assets $ 1,167,933 $ 977,297
     
     
Liabilities and shareholders' equity    
Current liabilities:    
 Floor plan notes payable $ 237,810 $ 189,256
 Current maturities of long-term debt  62,279  55,545
 Current maturities of capital lease obligations  7,971  5,730
 Trade accounts payable  37,933  22,427
 Accrued expenses  69,036  40,843
 Total current liabilities  415,029  313,801
     
Long-term debt, net of current maturities  189,850  153,957
Capital lease obligations, net of current maturities 34,231 28,714
Other long-term liabilities 364  –  
Deferred income taxes, net  63,540  54,600
     
Shareholders' equity:    
Preferred stock, par value $.01 per share; 1,000,000 shares authorized; 0 shares outstanding in 2010 and 2009  

 –  
 

 –  
Common stock, par value $.01 per share; 60,000,000 class A shares and 20,000,000 class B shares authorized; 26,798,707 class A  shares and 10,700,044 class B shares outstanding in 2010; and 26,437,848 class A shares and 10,689,375 class B shares outstanding in 2009  

 

 

391
 

 

 

388
Additional paid-in capital  195,747  188,116
Treasury stock, at cost: 1,639,843 class B shares (17,948) (17,948)
Retained earnings  286,951  255,669
Accumulated other comprehensive loss, net of tax  (222)  –  
     
Total shareholders' equity  464,919  426,225
     
Total liabilities and shareholders' equity $ 1,167,933 $ 977,297

 

 

 

RUSH ENTERPRISES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)
         
  Three Months Ended

December 31,
Year Ended

December 31,
  2010 2009 2010 2009
  (Unaudited)   (Unaudited)  
         
Revenues:        
 New and used truck sales $   306,347 $ 176,442 $   926,584 $   738,705
 Parts and service 132,807 92,862 489,259 395,133
 Lease and rental 18,882 13,698 67,423 53,710
 Finance and insurance 2,208 1,868 7,922 7,468
 Other 2,715 1,580 6,739 5,437
         
 Total revenue 462,959 286,450 1,497,927 1,200,453
         
Cost of products sold:        
 New and used truck sales 284,852 165,265 854,879 695,334
 Parts and service 82,742 57,718 300,783 241,933
 Lease and rental 15,914 12,272 57,375 47,545
 Total cost of products sold 383,508 235,255 1,213,037 984,812
         
Gross profit 79,451 51,195 284,890 215,641
         
Selling, general and administrative 61,790 43,039 227,467 192,296
         
Depreciation and amortization 4,429 3,643 15,720 15,890
         
Gain (loss) on sale of assets (27) (4) (36) 162
         
Operating income 13,205 4,509 41,667 7,617
         
Interest expense, net 1,312 1,307 5,363 5,695
         
Income from continuing operations before taxes 11,893 3,202 36,304 1,922
         
Provision (benefit) for income taxes 2,695 1,741 11,737 (3,173)
         
Income from continuing operations  9,198  1,461  24,567  5,095
         
Income from discontinued operations, net of tax 73 6,715 789
         
Net income $   9,198 $   1,534  $ 31,282 $   5,884 
         
Earnings per common share - Basic:        
Income from continuing operations $  .25 $  .04 $  .66 $  .14
Net income $  .25 $  .04 $  .84 $  .16
         
Earnings per common share - Diluted:        
Income from continuing operations $    .24 $  .04 $  .64 $  .14
Net income $    .24  $  .04 $  .82 $  .16
         
Weighted average shares outstanding:        
 Basic 37,414 37,121 37,307 37,066
 Diluted 38,530 37,668 38,218 37,597
CONTACT: Rush Enterprises, Inc., San Antonio
         Steven L. Keller, 830-626-5226

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