Rush Enterprises, Inc. Reports Fourth Quarter And Year End Results.SAN ANTONIO San Antonio (săn ăntō`nēō, əntōn`), city (1990 pop. 935,933), seat of Bexar co., S central Tex., at the source of the San Antonio River; inc. 1837. -- Rush Enterprises Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : RUSHA; NASDAQ: RUSHB) today announced results for the fourth quarter and year ended December December: see month. 31, 2004. Rush Enterprises' continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the include the largest network of Peterbilt Peterbilt Motors Company is a manufacturer of medium- and heavy-duty Class 6 through Class 8 trucks headquartered in Denton, Texas. The company is a subsidiary of PACCAR. Founded in 1939, Peterbilt operates manufacturing facilities in Madison, Tennessee (1969), Denton, Texas heavy-duty heav·y-dut·y adj. Made to withstand hard use or wear. heavy-duty Adjective made to withstand hard wear, bad weather, etc. Adj. 1. truck dealerships in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and a construction equipment dealership in Houston, Texas “Houston” redirects here. For other uses, see Houston (disambiguation). Houston (pronounced /'hjuːstən/) is the largest city in the state of Texas and the . In the fourth quarter, the Company's gross revenues totaled $301.0 million, as compared with gross revenues of $239.7 million reported for the fourth quarter ended December 31, 2003, an increase of 25.6%. The Company reported net income from continuing operations of $5.3 million, or $0.27 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, during the fourth quarter of 2004 compared to net income from continuing operations of $3.1 million, or $0.20 per diluted share, during the fourth quarter of 2003. The Company reported net income of $5.1 million, or $0.26 per diluted share, during the fourth quarter of 2004 compared to net income of $3.1 million, or $0.20 per diluted share, during the fourth quarter of 2003. Included in the 2003 fourth quarter results from continuing operations is a pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern nonrecurring Non`re`cur´ring a. 1. Nonrecurrent; as, the costs of a layoff are considered as a nonrecurring expense s>. gain of $1.6 million, recognized for the sale of the Company's Bossier City, Louisiana Bossier City is a city in Bossier Parish, Louisiana, United States. [1] [2] As of the 2000 Census, the city had a total population of 56,461. Bossier City is closely tied to its larger sister city Shreveport, located on the western bank of the Red River. dealership. Additionally, the Company recognized approximately $1.2 million of pretax truck inventory valuation losses during the fourth quarter of 2003 compared to $0.4 million during the fourth quarter of 2004. The Company's heavy-duty truck segment recorded revenues of approximately $286.6 million in the fourth quarter of 2004, compared to approximately $225.5 million in the fourth quarter of 2003. The Company delivered 1,546 new heavy-duty trucks, 548 new medium-duty trucks and 621 used trucks, during the fourth quarter of 2004 compared to 1,224 new heavy-duty trucks, 271 new medium-duty trucks and 630 used trucks for the same period in 2003. Parts, service and body shop sales increased 11.3 percent from $59.3 million in the fourth quarter of 2003 to $66.0 million in the fourth quarter of 2004. The Company's construction equipment segment recorded revenues of $12.1 million in the fourth quarter of 2004, compared to $11.3 million in the fourth quarter of 2003. New and used construction equipment unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. revenue increased $0.6 million or 7.6 percent from the same period in 2003. Parts, service and body shop sales increased 14.3 percent from $2.8 million in the fourth quarter of 2003 to $3.2 million in the fourth quarter of 2004. For the year ended December 31, 2004, the Company's gross revenues totaled $1,095.0 million, a 34.3 percent increase compared to gross revenues of $815.3 million reported in 2003. Net income from continuing operations was $17.2 million, or $1.03 per diluted share, an 81.1 percent increase compared to net income from continuing operations of $9.5 million or $0.63 per diluted share in 2003. In announcing the results, W. Marvin Rush, Chairman and Chief Executive Officer of Rush Enterprises, said, "Our 2004 results are a clear indication of the progress we have made in growing our earnings during a market recovery and demonstrates the robust health of the overall market. Additionally, the quality of our earnings continues to improve as our absorption rate moved from approximately 92% in 2003 to approximately 95% in 2004. On January January: see month. 3, 2005, Rush Enterprises completed the largest acquisition in its 40-year history and thereby expanded its presence significantly in the sunbelt Sunbelt Region, south and southwestern U.S. It is characterized by a warm climate, rapid population growth since 1970, and relatively conservative voting patterns. Comprising 15 states, it extends from Virginia and Florida in the southeast through Nevada in the southwest, . The acquisition of American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Truck Source will allow us to build name recognition in new markets and introduce new customers to the quality service and personal attention that Rush provides along the major routes connecting California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). to Florida Florida, state, United States Florida (flôr`ĭdə, flŏr`–), state in the extreme SE United States. A long, low peninsula between the Atlantic Ocean (E) and the Gulf of Mexico (W), Florida is bordered by Georgia and . We have already begun the process of integrating ATS locations into the Rush network by merging their operations into ours and applying our IT and financial systems to their operations." Mr. Rush continued, "The general consensus among manufacturers and component suppliers is that 2005 truck sales will outpace out·pace tr.v. out·paced, out·pac·ing, out·pac·es To surpass or outdo (another), as in speed, growth, or performance. outpace Verb [-pacing, 2004 truck sales, indicating strong momentum for the industry. Our efforts in 2005 to integrate and upgrade our new ATS locations should allow us to sell more heavy and medium-duty trucks, increase our market share and improve our margins. Our current projections call for medium-duty truck sales to become a greater part of our business and we estimate that sales in that segment will reach 3,000 in 2006." Conference Call Rush Enterprises will host a conference call to review its fourth quarter and year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. results on February February: see month. 14, 2005 at 3:00 p.m., EST EST electroshock therapy. EST abbr. electroshock therapy (2:00 p.m. Central Time). The call can be heard live by dialing 800-901-5247 (US) or 617-786-4501 (International) and entering the passcode 55408260, 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 February 28, by dialing 888-286-8010 (US) or 617-801-6888 (International) and entering the passcode 55408260. 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 43 dealerships located in Texas, California, Oklahoma Oklahoma (ōkləhō`mə), state in SW United States. It is bordered by Missouri and Arkansas (E); Texas, partially across the Red R. (S, W); New Mexico, across the narrow edge of the Oklahoma Panhandle (W); and Colorado and Kansas (N). , Colorado, Arizona Arizona (âr'əzō`nə), state in the southwestern United States. It is bordered by Utah (N), New Mexico (E), Mexico (S), and, across the Colorado R., Nevada and California (W). , New Mexico New Mexico, state in the SW United States. At its northwestern corner are the so-called Four Corners, where Colorado, New Mexico, Arizona, and Utah meet at right angles; New Mexico is also bordered by Oklahoma (NE), Texas (E, S), and Mexico (S). , Alabama Alabama, indigenous people of North America Alabama (ăləbăm`ə), indigenous people of North America whose language belongs to the Muskogean branch of the Hokan-Siouan linguistic stock (see Native American languages). , Florida and Tennessee Tennessee, state, United States Tennessee (tĕn`əsē', tĕn'əsē`), state in the south-central United States. . The Company has developed its truck and construction equipment dealerships 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 Aftermarket See: Secondary market. aftermarket See secondary market. parts and accessories and have service performed by certified See certification. technicians. For additional information on Rush Enterprises, Inc., please visit www.rushenterprises.com. Certain statements contained herein, including those concerning general industry conditions and the continued strong demand for trucks, are "forward-looking" statements (as such term is defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . 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, the receipt of regulatory and third-party approvals of the pending acquisition of ATS, the demand for heavy and medium-duty trucks, 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.
RUSH ENTERPRISES, INC., AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2004 AND 2003
(In Thousands, Except Shares and Per Share Amounts)
December December
31, 31,
2004 2003
--------- ---------
ASSETS
------
CURRENT ASSETS:
Cash and cash equivalents $158,175 $34,389
Accounts receivable, net 30,296 24,492
Inventories 190,292 137,423
Prepaid expenses and other 1,418 1,122
Assets held for sale 0 8,824
Deferred income taxes 1,423 2,863
--------- ---------
Total current assets 381,604 209,113
PROPERTY AND EQUIPMENT, net 138,953 114,477
OTHER ASSETS, net 45,327 43,288
--------- ---------
Total assets $565,884 $366,878
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES:
Floor plan notes payable $168,002 $108,235
Current maturities of long-term debt 16,083 23,767
Advances outstanding under lines of credit 2,434 17,732
Trade accounts payable 16,970 16,170
Accrued expenses 39,932 29,096
--------- ---------
Total current liabilities 243,421 195,000
LONG-TERM DEBT, net of current maturities 79,973 66,261
DEFERRED INCOME TAXES, net 19,683 16,911
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; 14,042,304 shares
outstanding in 2003 and 23,896,976 outstanding
in 2004 239 140
Additional paid-in capital 156,423 39,337
Retained earnings 66,145 49,229
--------- ---------
Total shareholders' equity 222,807 88,706
--------- ---------
Total liabilities and
shareholders' equity $565,884 $366,878
========= =========
RUSH ENTERPRISES, INC., AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)
Three Months Ended Year Ended
December 31, December 31,
2004 2003 2004 2003
--------- --------- ---------- ---------
REVENUES:
New and used truck sales $211,058 $158,270 $738,225 $501,757
Parts and service 70,643 63,683 285,206 249,818
Construction equipment
sales 8,594 7,985 32,305 28,263
Lease and rental 6,915 6,855 27,193 25,847
Finance and insurance 2,290 1,736 7,909 6,286
Other 1,512 1,133 4,141 3,361
--------- --------- ---------- ---------
Total revenues 301,012 239,662 1,094,979 815,332
COST OF PRODUCTS SOLD:
New and used truck sales 195,885 149,742 684,724 466,396
Parts and service 44,265 38,453 177,250 151,373
Construction equipment
sales 7,253 6,883 28,114 25,158
Lease and rental 5,076 5,349 19,749 19,155
--------- --------- ---------- ---------
Total cost of products
sold 252,479 200,427 909,837 662,082
--------- --------- ---------- ---------
GROSS PROFIT 48,533 39,235 185,142 153,250
SELLING, GENERAL AND
ADMINISTRATIVE 35,887 31,958 141,947 124,207
DEPRECIATION AND
AMORTIZATION 2,285 2,224 9,119 8,929
--------- --------- ---------- ---------
OPERATING INCOME 10,361 5,053 34,076 20,114
INTEREST (EXPENSE) (1,590) (1,607) (5,950) (6,348)
GAIN ON SALE OF ASSETS 120 1,642 624 1,984
--------- --------- ---------- ---------
INCOME FROM CONTINUING
OPERATIONS BEFORE INCOME
TAXES 8,891 5,088 28,750 15,750
PROVISION FOR INCOME TAXES 3,630 2,035 11,574 6,300
--------- --------- ---------- ---------
INCOME FROM CONTINUING
OPERATIONS 5,261 3,053 17,176 9,450
GAIN (LOSS) FROM
DISCONTINUED OPERATIONS,
NET (117) 62 (260) (621)
--------- --------- ---------- ---------
NET INCOME $5,144 $3,115 $16,916 $8,829
========= ========= ========== =========
EARNINGS PER SHARE:
EARNINGS PER COMMON SHARE
- BASIC
Income from continuing
operations $0.28 $0.22 $1.10 $0.67
========= ========= ========== =========
Net income $0.27 $0.22 $1.08 $0.63
========= ========= ========== =========
EARNINGS PER COMMON SHARE
- DILUTED
Income from continuing
operations $0.27 $0.20 $1.03 $0.63
========= ========= ========== =========
Net income $0.26 $0.20 $1.02 $0.59
========= ========= ========== =========
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