Rush Enterprises, Inc. Adopts $100 Million Stock Repurchase Program
December 03 2019 - 4:45PM
Rush Enterprises, Inc. (Nasdaq:RUSHA) (Nasdaq:RUSHB), which
operates the largest network of commercial vehicle dealerships in
North America, today announced that its Board of Directors approved
a new stock repurchase program authorizing the Company to
repurchase, from time to time, up to an aggregate of $100 million
of its shares of Class A common stock, $.01 par value per share,
and/or Class B common stock, $.01 par value per share.
“I am pleased to announce the approval of a new $100 million
stock repurchase program, said W.M. “Rusty” Rush, Chairman, Chief
Executive Officer and President of the Company. “While we
expect 2020 to be a challenging year for the commercial vehicle
market, we remain confident in our strategy and in our ability to
achieve positive financial results and generate positive free cash
flow in all cycles of the truck market,” Rush stated. “Our
first priority in allocating capital is to invest in our strategy
to grow our market share in both heavy- and medium-duty commercial
vehicle sales and aftermarket parts and service sales. We
believe that we can continue to invest in our growth strategy while
also continuing to return capital to shareholders, and if we can
achieve this goal in a year when the Class 8 truck market is
expected to contract significantly, we believe it will be a strong
signal that our strategy is working,” Rush added.
This new stock repurchase program replaces the Company’s prior
$150 million stock repurchase program. As of November 30,
2019, the Company had repurchased $123.6 million shares of its
common stock under the prior stock repurchase program, which was
scheduled to expire on December 31, 2019, and was terminated
effective November 30, 2019.
Repurchases under the new stock repurchase program will be made
at times and in amounts as the Company deems appropriate and may be
made through open market transactions at prevailing market prices,
privately negotiated transactions or by other means in accordance
with federal securities laws. The actual timing, number and
value of repurchases under the new stock repurchase program will be
determined by management in its discretion and will depend on a
number of factors, including market conditions, stock price and
other factors. The new stock repurchase program expires on
December 31, 2020, and may be suspended or discontinued at any
time.
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 North America. 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, 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 collision center operations plus financing, insurance,
leasing and rental. Rush Enterprises' operations also provide
vehicle up-fitting, CNG fuel systems and vehicle telematics
products. For more information, please visit
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, new commercial vehicle
sales forecasts, the impact of strategic initiatives and the
Company’s capital allocation strategy, including future investments
in strategic initiatives, future issuances of cash dividends and
future repurchases of the Company’s common stock, 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. In
addition, the declaration and payment of cash dividends and
authorization of future share repurchase programs remains at the
sole discretion of the Company’s Board of Directors and the
issuance of future dividends and authorization of future share
repurchase programs will depend upon the Company’s financial
results, cash requirements, future prospects, applicable law and
other factors that may be deemed relevant by the Company’s Board of
Directors.
Contact:
Rush Enterprises, Inc., San Antonio
Steven L. Keller, 830-302-5226
kellers@rushenterprises.com
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