Rush Enterprises, Inc. (NASDAQ:RUSHA) (Nasdaq:RUSHB), which
operates the largest network of commercial vehicle dealerships in
North America, today announced that for the quarter ended June 30,
2017, the Company achieved revenues of $1.204 billion and net
income of $22.0 million, or $0.54 per diluted share, compared with
revenues of $1.026 billion and net income of $10.8 million, or
$0.27 per diluted share, in the quarter ended June 30, 2016. During
the second quarter of 2016, the Company incurred a restructuring
charge of $0.9 million to selling, general and administrative
expenses, which reduced earnings per diluted share by $0.01,
related to the consolidation of certain dealerships.
“Continued growth in the housing and construction sectors,
improvement in the energy sector and general economic improvement
across the country contributed to our strong financial performance
this quarter,” said W.M. “Rusty” Rush, Chairman, Chief Executive
Officer and President of Rush Enterprises, Inc. “We remained
focused on our long-term growth goals, which include expansion of
our all-makes parts business, advanced vehicle technologies, and
alternative fuel solutions,” he added.
“It is important that I thank all of our employees for their
continued hard work and commitment to providing superior service to
our customers. Our financial performance this quarter would not
have been possible without their impressive efforts,” said
Rush.
Operations
Aftermarket SolutionsAftermarket services
accounted for approximately 64.4% of the Company's total gross
profits, with parts, service and body shop revenues up 11.5%, as
compared to the second quarter of 2016. The Company achieved a
quarterly absorption ratio of 121.8% in the second quarter of
2017.
“Our increase in aftermarket revenues is primarily attributed to
growth in energy sector activity, along with strong vocational
business across the country, including continued
construction-related growth along both coasts,” said Rush. “As we
look ahead, we expect our aftermarket services revenues to remain
strong in the third quarter,” he added.
“With a renewed aftermarket sales management focus, we are
beginning to see financial benefit from our growth initiatives,
particularly in the area of all-makes parts, and we expect that to
continue as we gain more traction in the future,” he said.
“Further, our Business Process Management group is continuing their
efforts to drive efficiencies in a manner that will enable us to
increase productivity, decrease expenses and better ensure a
consistent experience for both our customers and our employees,
while our employees companywide remain focused on managing
expenses,” Rush noted.
Truck SalesU.S. Class 8 retail sales were
48,771 units in the second quarter, down 8.2% over the same period
last year, according to ACT Research. Rush’s Class 8 sales
increased 29.3% as compared to the second quarter of 2016 and
accounted for 6.9% of the U.S. Class 8 truck market. ACT Research
forecasts U.S. retail sales for Class 8 vehicles to be 186,100
units in 2017, a 5.5% decrease compared to 2016, but considerably
higher than their original 2017 forecast of 154,000 units.
“Our Class 8 new truck sales in the second quarter reflect an
improving energy sector, continued solid vocational demand from
construction and refuse customers and continued demand for
replacement trucks supporting general freight,” said
Rush.
“The over-supply of used trucks available nationwide continues
to present challenges to the market, but we believe values have
begun to stabilize,” said Rush. “Our used truck inventory is
well-positioned to support trade activity and new truck sales,” he
noted.
“Due to increased activity from a wide variety of industries and
overall economic improvement, we believe our Class 8 new truck
sales in the second half of 2017 will remain strong,” Rush
said.
Rush’s Class 4-7 medium-duty sales increased 10.1% from the
second quarter of 2016, accounting for 4.9% of the total U.S.
market. U.S. Class 4-7 retail sales were 62,618 units in the second
quarter of 2017, up approximately 9.2% over the second quarter of
2016. ACT Research forecasts U.S. retail sales for Class 4-7
vehicles to reach 233,600 units in 2017, a 3.3% increase over
2016.
“Our medium-duty truck sales were strong in the second quarter,
bolstered in part due to the timing of some large fleet
deliveries,” Rush explained. “Additionally, our inventory of
’ready- to-roll’ trucks nationwide allows us to support customers
in construction, infrastructure and a wide variety of other
industries,” said Rush.
“The medium-duty market remains strong, and we expect our Class
4-7 sales for the remainder of the year to be consistent with our
first half performance,” said Rush.
Financial Highlights
In the second quarter of 2017, the Company’s gross revenues
totaled $1.204 billion, a 17.2% increase from gross revenues of
$1.026 billion reported for the quarter ended June 30, 2016. Net
income for the quarter was $22.0 million, or $0.54 per diluted
share, compared to net income of $10.8 million, or $0.27 per
diluted share, in the quarter ended June 30, 2016. During the
second quarter of 2016, the Company incurred a non-recurring
restructuring charge of $0.9 million to selling, general and
administrative expenses, which reduced earnings per diluted share
by $0.01, related to the consolidation of certain dealerships.
Parts, service and body shop revenues were $366.6 million in the
second quarter of 2017, compared to $328.7 million in the second
quarter of 2016. The Company delivered 3,352 new heavy-duty trucks,
3,073 new medium-duty commercial vehicles, 473 new light-duty
commercial vehicles and 1,743 used commercial vehicles during the
second quarter of 2017, compared to 2,592 new heavy-duty trucks,
2,792 new medium-duty commercial vehicles, 386 new light-duty
commercial vehicles and 1,750 used commercial vehicles during the
second quarter of 2016.
During the second quarter of 2017, the Company repurchased $18.6
million of its common stock and ended the quarter with $123.8
million in cash and cash equivalents, an increase of $34.7 million
from March 31, 2017.
Conference Call
Information
Rush Enterprises will host its quarterly
conference call to discuss earnings for the second quarter on
Thursday, July 27, 2017, at 10 a.m. Eastern/9 a.m.
Central. The call can be heard live by dialing
877-638-4557 (Toll Free) or 914-495-8522 (Conference ID
48405952) or via the Internet
athttp://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 October 10, 2017. Listen to the audio replay until
August 3, 2017, by dialing 855-859-2056 (Toll Free) or
404-537-3406 and entering the Conference ID
48405952.
About Rush Enterprises,
Inc.
Rush Enterprises, Inc. is the premier solutions provider to the
commercial vehicle industry. The Company owns and operates Rush
Truck Centers, the largest network of commercial vehicle
dealerships in the United States, with more than 100 dealership
locations in 21 states. These vehicle centers, strategically
located in high traffic areas on or near major highways throughout
the United States, represent truck and bus manufacturers, including
Peterbilt, International, Hino, Isuzu, Ford, Mitsubishi, IC Bus and
Blue Bird. They offer an integrated approach to meeting customer
needs — from sales of new and used vehicles to aftermarket parts,
service and body shop operations plus financing, insurance, leasing
and rental. Rush Enterprises' operations also provide CNG fuel
systems, telematics products and other vehicle technologies, as
well as vehicle up-fitting, chrome accessories and tires.
Additional information about Rush Enterprises’ products and
services is available at www.rushenterprises.com. Follow our news
on Twitter at @rushtruckcenter and on Facebook at
facebook.com/rushtruckcenters.
Certain statements contained herein, including those concerning
current and projected market conditions, sales forecasts, market
share forecasts, demand for the Company’s services and the impact
of strategic initiatives 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, one-time events and other factors described
herein and in filings made by the Company with the Securities and
Exchange Commission.
-Tables and Additional Information to Follow-
RUSH ENTERPRISES, INC. AND
SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
(In Thousands, Except Shares and Per Share
Amounts) |
|
|
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
|
2017 |
|
|
|
2016 |
|
|
(Unaudited) |
|
|
Assets |
|
|
|
Current assets: |
|
|
|
Cash and
cash equivalents |
$ |
123,807 |
|
|
$ |
82,026 |
|
Accounts
receivable, net |
|
142,556 |
|
|
|
156,199 |
|
Note
receivable affiliate |
|
16,742 |
|
|
|
10,166 |
|
Inventories, net |
|
916,601 |
|
|
|
840,304 |
|
Prepaid
expenses and other |
|
9,557 |
|
|
|
8,798 |
|
Assets
held for sale |
|
11,714 |
|
|
|
13,955 |
|
Total
current assets |
|
1,220,977 |
|
|
|
1,111,448 |
|
Investments |
|
6,375 |
|
|
|
6,231 |
|
Property and equipment,
net |
|
1,118,758 |
|
|
|
1,135,805 |
|
Goodwill, net |
|
290,191 |
|
|
|
290,191 |
|
Other assets, net |
|
55,498 |
|
|
|
59,372 |
|
Total
assets |
$ |
2,691,799 |
|
|
$ |
2,603,047 |
|
|
|
|
|
Liabilities and shareholders’ equity |
|
|
|
Current
liabilities: |
|
|
|
Floor
plan notes payable |
$ |
692,125 |
|
|
$ |
646,945 |
|
Current
maturities of long-term debt |
|
137,320 |
|
|
|
130,717 |
|
Current
maturities of capital lease obligations |
|
15,443 |
|
|
|
14,449 |
|
Liabilities directly associated with assets held for sale |
|
– |
|
|
|
783 |
|
Trade
accounts payable |
|
114,148 |
|
|
|
97,844 |
|
Customer
deposits |
|
29,748 |
|
|
|
18,418 |
|
Accrued
expenses |
|
88,951 |
|
|
|
83,974 |
|
Total
current liabilities |
|
1,077,735 |
|
|
|
993,130 |
|
Long-term debt, net of
current maturities |
|
443,465 |
|
|
|
472,503 |
|
Capital
lease obligations, net of current maturities |
|
66,313 |
|
|
|
70,044 |
|
Other long-term
liabilities |
|
9,298 |
|
|
|
7,214 |
|
Deferred income taxes,
net |
|
200,108 |
|
|
|
197,331 |
|
Shareholders’
equity: |
|
|
|
Preferred
stock, par value $.01 per share; 1,000,000 shares authorized; 0
shares outstanding in 2017 and 2016 |
|
– |
|
|
|
– |
|
Common
stock, par value $.01 per share; 60,000,000 Class A shares and
20,000,000 Class B shares authorized; 30,793,032 Class A shares and
8,637,855 Class B shares outstanding in 2017; and 30,007,088 Class
A shares and 9,245,447 Class B shares outstanding in 2016 |
|
448 |
|
|
|
438 |
|
Additional paid-in capital |
|
330,617 |
|
|
|
309,127 |
|
Treasury
stock, at cost: 934,171 class A shares and 4,456,753 class
B shares in 2017 and 934,171 class A shares and 3,650,491
class B shares in 2016 |
|
(113,091 |
) |
|
|
(86,882 |
) |
Retained
earnings |
|
676,906 |
|
|
|
640,428 |
|
Accumulated other comprehensive loss, net of tax |
|
– |
|
|
|
(286 |
) |
Total
shareholders’ equity |
|
894,880 |
|
|
|
862,825 |
|
Total liabilities and shareholders’ equity |
$ |
2,691,799 |
|
|
$ |
2,603,047 |
|
|
|
|
|
|
|
|
|
RUSH ENTERPRISES, INC. AND
SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF
OPERATIONS |
(In Thousands, Except Per Share Amounts) |
(Unaudited) |
|
|
|
|
|
Three Months EndedJune
30, |
|
Six Months EndedJune
30, |
|
|
2017 |
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
New and
used commercial vehicle sales |
$ |
775,988 |
|
$ |
636,853 |
|
|
$ |
1,411,941 |
|
|
$ |
1,305,398 |
Parts and
service sales |
|
366,599 |
|
|
328,665 |
|
|
|
716,705 |
|
|
|
670,604 |
Lease and
rental |
|
53,048 |
|
|
52,152 |
|
|
|
104,292 |
|
|
|
103,039 |
Finance
and insurance |
|
4,392 |
|
|
4,837 |
|
|
|
8,321 |
|
|
|
9,336 |
Other |
|
3,496 |
|
|
3,955 |
|
|
|
7,061 |
|
|
|
8,925 |
Total
revenue |
|
1,203,523 |
|
|
1,026,462 |
|
|
|
2,248,320 |
|
|
|
2,097,302 |
Cost of products sold: |
|
|
|
|
|
|
|
New and
used commercial vehicle sales |
|
718,253 |
|
|
591,331 |
|
|
|
1,306,373 |
|
|
|
1,214,991 |
Parts and
service sales |
|
231,992 |
|
|
209,519 |
|
|
|
456,458 |
|
|
|
427,762 |
Lease and
rental |
|
44,206 |
|
|
45,134 |
|
|
|
88,510 |
|
|
|
90,801 |
Total
cost of products sold |
|
994,451 |
|
|
845,984 |
|
|
|
1,851,341 |
|
|
|
1,733,554 |
Gross profit |
|
209,072 |
|
|
180,478 |
|
|
|
396,979 |
|
|
|
363,748 |
Selling,
general and administrative expense |
|
159,353 |
|
|
146,080 |
|
|
|
309,756 |
|
|
|
308,532 |
Depreciation and amortization expense |
|
12,444 |
|
|
12,821 |
|
|
|
24,936 |
|
|
|
25,468 |
Gain
(loss) on sale of assets |
|
132 |
|
|
(5 |
) |
|
|
(31 |
) |
|
|
5 |
Operating income |
|
37,407 |
|
|
21,572 |
|
|
|
62,256 |
|
|
|
29,753 |
Interest
expense, net |
|
2,824 |
|
|
3,763 |
|
|
|
5,615 |
|
|
|
8,002 |
Income before taxes |
|
34,583 |
|
|
17,809 |
|
|
|
56,641 |
|
|
|
21,751 |
Provision
for income taxes |
|
12,584 |
|
|
6,992 |
|
|
|
20,163 |
|
|
|
8,539 |
Net income |
$ |
21,999 |
|
$ |
10,817 |
|
|
$ |
36,478 |
|
|
$ |
13,212 |
|
|
|
|
|
|
|
|
Earnings per common share: |
|
|
|
|
|
|
|
Basic |
$ .55 |
|
$ .27 |
|
$ .92 |
|
$ .33 |
Diluted |
$ .54 |
|
$ .27 |
|
$ .90 |
|
$ .32 |
|
|
|
|
|
|
|
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
Basic |
|
39,642 |
|
|
40,250 |
|
|
|
39,493 |
|
|
|
40,402 |
Diluted |
|
40,839 |
|
|
40,778 |
|
|
|
40,737 |
|
|
|
40,914 |
|
|
|
|
|
|
|
|
This press release and the attached financial
tables contain certain non-GAAP financial measures as defined under
SEC rules, such as Adjusted total debt, Adjusted net (cash) debt,
EBITDA, Adjusted EBITDA, Free cash flow, Adjusted free cash flow
and Adjusted invested capital, which exclude certain items
disclosed in the attached financial tables. The Company provides
reconciliations of these measures to the most directly comparable
GAAP measures.
Management believes the presentation of these
non-GAAP financial measures provides useful information about the
results of operations of the Company for the current and past
periods. Management believes that investors should have the same
information available to them that management uses to assess the
Company’s operating performance and capital structure. These
non-GAAP financial measures should not be considered in isolation
or as a substitute for the most comparable GAAP financial measures.
Investors are cautioned that non-GAAP financial measures utilized
by the Company may not be comparable to similarly titled non-GAAP
financial measures used by other companies.
|
|
Three Months Ended |
Vehicle Sales Revenue (in
thousands) |
|
June 30, 2017 |
|
June 30, 2016 |
New heavy-duty
vehicles |
|
$ |
468,317 |
|
|
$ |
346,617 |
|
New medium-duty
vehicles (including bus sales revenue) |
|
|
213,192 |
|
|
|
198,364 |
|
New light-duty
vehicles |
|
|
18,216 |
|
|
|
14,353 |
|
Used
vehicles |
|
|
72,194 |
|
|
|
70,920 |
|
Other
vehicles |
|
|
4,069 |
|
|
|
6,599 |
|
|
|
|
|
|
Absorption Ratio |
|
|
121.8 |
% |
|
|
110.3 |
% |
Absorption RatioManagement uses
several performance metrics to evaluate the performance of its
commercial vehicle dealerships and considers Rush Truck Centers’
“absorption ratio” to be of critical importance. Absorption ratio
is calculated by dividing the gross profit from the parts, service
and body shop departments by the overhead expenses of all of a
dealership’s departments, except for the selling expenses of the
new and used commercial vehicle departments and carrying costs of
new and used commercial vehicle inventory. When 100% absorption is
achieved, then gross profit from the sale of a commercial vehicle,
after sales commissions and inventory carrying costs, directly
impacts operating profit.
Debt Analysis (in
thousands) |
|
June 30, 2017 |
June 30, 2016 |
Floor plan notes
payable |
|
$ |
692,125 |
|
$ |
830,092 |
|
Current maturities of
long-term debt |
|
|
137,320 |
|
|
134,830 |
|
Current maturities of
capital lease obligations |
|
|
15,443 |
|
|
14,303 |
|
Liabilities directly
associated with asset held for sale |
|
|
− |
|
|
1,196 |
|
Long-term debt, net of
current maturities |
|
|
443,465 |
|
|
496,658 |
|
Capital lease
obligations, net of current maturities |
|
|
66,313 |
|
|
69,628 |
|
Total Debt
(GAAP) |
|
|
1,354,666 |
|
|
1,546,707 |
|
Adjustments: |
|
|
|
Debt related to
lease & rental fleet |
|
|
(560,380 |
) |
|
(599,073 |
) |
Floor plan notes
payable |
|
|
(692,125 |
) |
|
(830,092 |
) |
Adjusted Total
Debt (Non-GAAP) |
|
|
102,161 |
|
|
117,542 |
|
Adjustment: |
|
|
|
Cash and cash
equivalents |
|
|
(123,807 |
) |
|
(92,664 |
) |
Adjusted Net
Debt (Cash) (Non-GAAP) |
|
$ |
(21,646 |
) |
$ |
24,878 |
|
Management uses “Adjusted Total Debt” to reflect
the Company’s estimated financial obligations less debt related to
lease and rental fleet (L&RFD) and floor plan notes payable
(FPNP), and “Adjusted Net (Cash) Debt” to present the amount of
Adjusted Total Debt net of cash and cash equivalents on the
Company’s balance sheet. The FPNP is used to finance the Company’s
new and used inventory, with its principal balance changing daily
as vehicles are purchased and sold and the sale proceeds are used
to repay the notes. Consequently, in managing the business,
management views the FPNP as interest bearing accounts payable,
representing the cost of acquiring the vehicle that is then repaid
when the vehicle is sold, as the Company’s credit agreements
require it to repay loans used to purchase vehicles when such
vehicles are sold. The Company’s lease & rental fleet are fully
financed and are either (i) leased to customers under long-term
lease arrangements or (ii), to a lesser extent, dedicated to the
Company’s rental business. In both cases, the lease and rental
payments fully cover the capital costs of the lease & rental
fleet (i.e., the principal repayments and interest expense on the
borrowings used to acquire the vehicles and the depreciation
expense associated with the vehicles), plus a profit margin for the
Company. The Company believes excluding the FPNP and L&RFD
from the Company’s total debt for this purpose provides management
with supplemental information regarding the Company’s capital
structure and leverage profile and assists investors in performing
analysis that is consistent with financial models developed by
Company management and research analysts. “Adjusted Total Debt” and
“Adjusted Net (Cash) Debt” are both non-GAAP financial measures and
should be considered in addition to, and not as a substitute for,
the Company’s debt obligations, as reported in the Company’s
consolidated balance sheet in accordance with U.S. GAAP.
Additionally, these non-GAAP measures may vary among companies and
may not be comparable to similarly titled non-GAAP measures used by
other companies.
|
|
Twelve Months Ended |
EBITDA (in thousands) |
|
June 30, 2017 |
June 30, 2016 |
Net Income
(GAAP) |
|
$ |
63,848 |
|
$ |
42,908 |
|
Provision for income
taxes |
|
|
37,491 |
|
|
27,296 |
|
Interest expense |
|
|
11,892 |
|
|
14,936 |
|
Depreciation and
amortization |
|
|
50,729 |
|
|
48,504 |
|
(Gain) loss on sale of
assets |
|
|
(1,719 |
) |
|
(68 |
) |
EBITDA
(Non-GAAP) |
|
|
162,241 |
|
|
133,576 |
|
Adjustments: |
|
|
|
Interest expense
associated with FPNP |
|
|
(9,747 |
) |
|
(13,870 |
) |
Restructuring
and impairment charges |
|
− |
|
8,930 |
|
Adjusted EBITDA
(Non-GAAP) |
|
$ |
152,494 |
|
$ |
128,636 |
|
The Company presents EBITDA and Adjusted EBITDA
as additional information about its operating results. The
presentation of Adjusted EBITDA that excludes the addition of
interest expense associated with FPNP to EBITDA is consistent with
management’s presentation of Adjusted Total Debt, in each case
reflecting management’s view of interest expense associated with
the FPNP as an operating expense of the Company, and to provide
management with supplemental information regarding operating
results and to assist investors in performing analysis that is
consistent with financial models developed by management and
research analyst. Management recorded a charge to selling, general
and administrative expense during the first and second quarters of
2016 related to the closing of certain dealerships and the
disposition of excess real estate. Management believes adding back
this charge to EBITDA provides both the investors and management
with supplemental information regarding the Company’s core
operating results. “EBITDA” and “Adjusted EBITDA” are both non-GAAP
financial measures and should be considered in addition to, and not
as a substitute for, net income of the Company, as reported in the
Company’s consolidated statements of income in accordance with U.S.
GAAP. Additionally, these non-GAAP measures may vary among
companies and may not be comparable to similarly titled non-GAAP
measures used by other companies.
|
|
Twelve Months Ended |
Free Cash Flow (in thousands) |
|
June 30, 2017 |
June 30, 2016 |
Net cash
provided by operations (GAAP) |
|
$ |
428,976 |
|
$ |
387,859 |
|
Acquisition of property
and equipment |
|
|
(161,269 |
) |
|
(318,855 |
) |
Free cash flow
(Non-GAAP) |
|
|
267,707 |
|
|
69,004 |
|
Adjustments: |
|
|
|
Draws (payments)
on floor plan financing, net |
|
|
(151,966 |
) |
|
(43,850 |
) |
Proceeds from
L&RFD |
|
|
103,806 |
|
|
146,128 |
|
Principal
payments on L&RFD |
|
|
(159,665 |
) |
|
(157,734 |
) |
Non-maintenance
capital expenditures |
|
|
34,142 |
|
|
117,213 |
|
Adjusted Free
Cash Flow (Non-GAAP) |
|
$ |
94,024 |
|
$ |
130,761 |
|
“Free Cash Flow” and “Adjusted Free Cash Flow”
are key financial measures of the Company’s ability to generate
cash from operating its business. Free Cash Flow is calculated by
subtracting the acquisition of property and equipment included in
the Cash flows from investing activities from Net cash provided by
(used in) operating activities. For purposes of deriving Adjusted
Free Cash Flow from the Company’s operating cash flow, Company
management makes the following adjustments: (i) adds back draws (or
subtracts payments) on the floor plan financing that are included
in Cash flows from financing activities as their purpose is to
finance the vehicle inventory that is included in Cash flows from
operating activities; (ii) adds back proceeds from notes payable
related specifically to the financing of the lease and rental fleet
that are reflected in Cash flows from financing activities; (iii)
subtracts draws on floor plan financing, net and proceeds from
L&RFD related to business acquisition assets that are included
in Cash flows from investing activities; (iv) subtracts principal
payments on notes payable related specifically to the financing of
the lease and rental fleet that are included in Cash flows from
financing activities; and (v) adds back non-maintenance capital
expenditures that are for growth and expansion (i.e. building of
new dealership facilities) that are not considered necessary to
maintain the current level of cash generated by the business. “Free
Cash Flow” and “Adjusted Free Cash Flow” are both presented so that
investors have the same financial data that management uses in
evaluating the Company’s cash flows from operating activities.
“Free Cash Flow” and “Adjusted Free Cash Flow” are both non-GAAP
financial measures and should be considered in addition to, and not
as a substitute for, net cash provided by (used in) operations of
the Company, as reported in the Company’s consolidated statement of
cash flows in accordance with U.S. GAAP. Additionally, these
non-GAAP measures may vary among companies and may not be
comparable to similarly titled non-GAAP measures used by other
companies.
Invested Capital (in thousands) |
|
June 30, 2017 |
June 30, 2016 |
Total
Shareholders' equity (GAAP) |
|
$ |
894,880 |
|
$ |
846,007 |
Adjusted net debt
(cash) (Non-GAAP) |
|
|
(21,646 |
) |
|
24,878 |
Adjusted
Invested Capital (Non-GAAP) |
|
$ |
873,234 |
|
$ |
870,885 |
“Adjusted Invested Capital” is a key financial
measure used by the Company to calculate its return on invested
capital. For purposes of this analysis, management excludes
L&RFD, FPNP, and cash and cash equivalents, for the reasons
provided in the debt analysis above and uses Adjusted Net Debt in
the calculation. The Company believes this approach provides
management a more accurate picture of the Company’s leverage
profile and capital structure, and assists investors in performing
analysis that is consistent with financial models developed by
Company management and research analysts. “Adjusted Net (Cash)
Debt” and “Adjusted Invested Capital” are both non-GAAP financial
measures. Additionally, these non-GAAP measures may vary among
companies and may not be comparable to similarly titled non-GAAP
measures used by other companies.
Contact:
Rush Enterprises, Inc., San Antonio
Steven L. Keller, 830-302-5226
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