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 September
30, 2017, the Company achieved revenues of $1.257 billion and net
income of $29.8 million, or $0.72 per diluted share, compared with
revenues of $1.096 billion and net income of $14.9 million, or
$0.37 per diluted share, in the quarter ended September 30,
2016.
“Continued broad-based strength in the U.S. economy and most of
the customer segments we support helped us achieve record-high
profitability in the third quarter,” said W.M. “Rusty” Rush,
Chairman, Chief Executive Officer and President of Rush
Enterprises, Inc. “Further, we continued to advance our strategic
initiatives, particularly in the areas of all-makes parts and
service, which also contributed to our strong performance this
quarter,” he said.
“In the third quarter, many of our employees were impacted by
Hurricanes Harvey and Irma. Employees nationwide rallied to
support them, donating money, time and valuable goods to help not
just their fellow employees in need, but also the affected
communities as well. I am sincerely grateful for our
employees for not only their hard work and extraordinary results
this quarter, but also for their generosity and dedication to each
other and their communities, which I greatly admire,” Rush
said.
Operations
Aftermarket Solutions Aftermarket
products and services accounted for approximately 62.9% of the
Company's total gross profits in the third quarter, with parts,
service and body shop revenues up 11.7% as compared to the same
timeframe in 2016. This contributed to a quarterly absorption
ratio of 120.9%.
“The growth in our aftermarket revenues in the third quarter was
driven by continued activity in the energy and construction
sectors, as well as increasing activity from over-the-road fleet
customers, and by the successful execution of certain strategic
initiatives designed to increase aftermarket sales and gross
profits, ” Rush said. “Looking ahead, we expect customer
demand for aftermarket products and services to remain solid,
however we expect our aftermarket revenues to be negatively
impacted by the seasonal decline we typically experience during the
fourth quarter,” Rush explained.
“We remain focused on our long-term plans and are now benefiting
financially from our strategic initiatives, which include our
all-makes parts and service business,” said Rush. “It is also
important to note our mobile service business is growing and
positively impacted our aftermarket revenues in the third quarter,”
Rush said. “Though the alternative fuel market is relatively
flat, our Momentum Fuel Systems product line is beginning to gain
market share,” he added.
Truck SalesU.S. Class 8 retail sales were
51,574 units in the third quarter, up 11% over the same time period
last year, according to ACT Research. Rush’s Class 8 sales
outpaced the industry in the third quarter, increasing 20.6% as
compared to the third quarter of 2016 and accounting for 7.1% of
the U.S. Class 8 truck market. ACT Research forecasts U.S.
retail sales for Class 8 vehicles to be 190,000 units in 2017, a
3.5% decrease compared to 2016, but considerably higher than their
original 2017 forecast of 154,000 units.
“The increase in our Class 8 new truck sales compared to the
third quarter of 2016 is attributable in large part to increased
activity from energy customers,” said Rush. “Additionally, vehicle
sales activity remains solid in construction, refuse, general
freight and the majority of the other industries we support around
the country. We believe our Class 8 new truck sales in the
fourth quarter will remain solid, due to this general economic
strength,” he explained.
“Used truck valuations have stabilized, and we believe our used
truck inventory is appropriately positioned to support current
market dynamics and new truck sales,” Rush said.
Rush’s Class 4-7 medium-duty sales increased 14.5% from the
third quarter of 2016, accounting for 4.6% of the total U.S.
market. U.S. Class 4-7 retail sales were 61,538 units in the
third quarter of 2017, up approximately 9.0% over the third quarter
of 2016. ACT Research forecasts U.S. retail sales for Class
4-7 vehicles to reach 238,475 units in 2017, a 5.4% increase over
2016.
“We had another strong quarter for our medium-duty truck sales,
which were also positively impacted by continued strength in a wide
variety of industries across the country,” said Rush. “Our
continued ability to stock bodied-up medium-duty trucks allows us
to meet our customers’ immediate needs,” he said. “We expect
our Class 4-7 new truck sales to also remain solid throughout the
remainder of the year,” Rush added.
Financial Highlights
In the third quarter of 2017, the Company’s gross revenues
totaled $1.257 billion, a 14.7% increase from gross revenues of
$1.096 billion reported for the quarter ended September 30,
2016. Net income for the quarter was $29.8 million, or $0.72
per diluted share, compared to net income of $14.9 million, or
$0.37 per diluted share, in the quarter ended September 30,
2016.
Parts, service and body shop revenues were $375.8 million in the
third quarter of 2017, compared to $336.5 million in the third
quarter of 2016. The Company delivered 3,647 new heavy-duty
trucks, 2,828 new medium-duty commercial vehicles, 447 new
light-duty commercial vehicles and 1,743 used commercial vehicles
during the third quarter of 2017, compared to 3,024 new heavy-duty
trucks, 2,469 new medium-duty commercial vehicles, 523 new
light-duty commercial vehicles and 1,795 used commercial vehicles
during the third quarter of 2016.
During the third quarter of 2017, the Company repurchased $1.2
million of its common stock and ended the quarter with $127.9
million in cash and cash equivalents, an increase of $4.1 million
from June 30, 2017.
Conference Call
Information
Rush Enterprises will host its quarterly conference call to
discuss earnings for the third quarter on Thursday, October
26, 2017, at 10 a.m. Eastern/9 a.m. Central. The
call can be heard live by dialing 877-638-4557 (US) or
914-495-8522 (International), Conference ID 94625029 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 February
9, 2018. Listen to the audio replay until November 2, 2017,
by dialing 855-859-2056 (US) or 404-537-3406
(International) and entering the Conference ID
94625029.
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
SUBSIDIARIESCONSOLIDATED BALANCE
SHEETS(In Thousands, Except Shares and Per Share
Amounts) |
|
|
September 30, |
|
December 31, |
|
|
2017 |
|
|
|
2016 |
|
|
(Unaudited) |
|
|
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash
equivalents |
$ |
127,915 |
|
|
$ |
82,026 |
|
Accounts
receivable, net |
|
153,526 |
|
|
|
156,199 |
|
Note receivable
affiliate |
|
14,320 |
|
|
|
10,166 |
|
Inventories,
net |
|
960,962 |
|
|
|
840,304 |
|
Prepaid expenses
and other |
|
7,330 |
|
|
|
8,798 |
|
Assets held for
sale |
|
10,319 |
|
|
|
13,955 |
|
Total current
assets |
|
1,274,372 |
|
|
|
1,111,448 |
|
Investments |
|
6,375 |
|
|
|
6,231 |
|
Property and equipment,
net |
|
1,133,309 |
|
|
|
1,135,805 |
|
Goodwill, net |
|
290,191 |
|
|
|
290,191 |
|
Other assets, net |
|
54,743 |
|
|
|
59,372 |
|
Total
assets |
$ |
2,758,990 |
|
|
$ |
2,603,047 |
|
|
|
|
|
Liabilities and shareholders’ equity |
|
|
|
Current
liabilities: |
|
|
|
Floor
plan notes payable |
$ |
706,995 |
|
|
$ |
646,945 |
|
Current
maturities of long-term debt |
|
142,675 |
|
|
|
130,717 |
|
Current
maturities of capital lease obligations |
|
15,314 |
|
|
|
14,449 |
|
Liabilities directly associated with assets held for sale |
|
– |
|
|
|
783 |
|
Trade
accounts payable |
|
111,100 |
|
|
|
97,844 |
|
Customer
deposits |
|
22,976 |
|
|
|
18,418 |
|
Accrued
expenses |
|
95,022 |
|
|
|
83,974 |
|
Total
current liabilities |
|
1,094,082 |
|
|
|
993,130 |
|
Long-term debt, net of
current maturities |
|
450,121 |
|
|
|
472,503 |
|
Capital lease
obligations, net of current maturities |
|
64,972 |
|
|
|
70,044 |
|
Other long-term
liabilities |
|
9,575 |
|
|
|
7,214 |
|
Deferred income taxes,
net |
|
206,123 |
|
|
|
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; 31,183,787 Class A shares and
8,606,623 Class B shares outstanding in 2017; and 30,007,088 Class
A shares and 9,245,447 Class B shares outstanding in 2016 |
|
452 |
|
|
|
438 |
|
Additional paid-in capital |
|
341,245 |
|
|
|
309,127 |
|
Treasury
stock, at cost: 934,171 class A shares and 4,487,985 class B
shares in 2017 and 934,171 class A shares and 3,650,491 class
B shares in 2016 |
|
(114,270 |
) |
|
|
(86,882 |
) |
Retained earnings |
|
706,690 |
|
|
|
640,428 |
|
Accumulated other
comprehensive loss, net of tax |
|
– |
|
|
|
(286 |
) |
Total shareholders’
equity |
|
934,117 |
|
|
|
862,825 |
|
Total
liabilities and shareholders’ equity |
$ |
2,758,990 |
|
|
$ |
2,603,047 |
|
RUSH ENTERPRISES, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF
OPERATIONS(In Thousands, Except Per Share
Amounts)(Unaudited) |
|
|
Three Months EndedSeptember
30, |
|
Nine Months EndedSeptember
30, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
New and used commercial vehicle sales |
$ |
819,028 |
|
$ |
698,838 |
|
$ |
2,230,969 |
|
$ |
2,004,236 |
Parts and service sales |
|
375,835 |
|
|
336,459 |
|
|
1,092,540 |
|
|
1,007,063 |
Lease and rental |
|
54,630 |
|
|
52,452 |
|
|
158,922 |
|
|
155,491 |
Finance and insurance |
|
4,771 |
|
|
4,870 |
|
|
13,092 |
|
|
14,206 |
Other |
|
3,195 |
|
|
3,422 |
|
|
10,256 |
|
|
12,347 |
Total revenue |
|
1,257,459 |
|
|
1,096,041 |
|
|
3,505,779 |
|
|
3,193,343 |
Cost of products sold: |
|
|
|
|
|
|
|
New and used commercial vehicle sales |
|
754,762 |
|
|
653,992 |
|
|
2,061,135 |
|
|
1,868,983 |
Parts and service sales |
|
237,452 |
|
|
214,916 |
|
|
693,910 |
|
|
642,678 |
Lease and rental |
|
45,197 |
|
|
45,817 |
|
|
133,707 |
|
|
136,618 |
Total cost of products sold |
|
1,037,411 |
|
|
914,725 |
|
|
2,888,752 |
|
|
2,648,279 |
Gross profit |
|
220,048 |
|
|
181,316 |
|
|
617,027 |
|
|
545,064 |
Selling,
general and administrative expense |
|
159,281 |
|
|
142,280 |
|
|
469,037 |
|
|
450,812 |
Depreciation and amortization expense |
|
12,438 |
|
|
13,014 |
|
|
37,374 |
|
|
38,482 |
Gain on
sale of assets |
|
107 |
|
|
1,566 |
|
|
76 |
|
|
1,571 |
Operating income |
|
48,436 |
|
|
27,588 |
|
|
110,692 |
|
|
57,341 |
Interest
expense, net |
|
3,101 |
|
|
3,285 |
|
|
8,716 |
|
|
11,287 |
Income before taxes |
|
45,335 |
|
|
24,303 |
|
|
101,976 |
|
|
46,054 |
Provision
for income taxes |
|
15,551 |
|
|
9,423 |
|
|
35,714 |
|
|
17,962 |
Net income |
$ |
29,784 |
|
$ |
14,880 |
|
$ |
66,262 |
|
$ |
28,092 |
|
|
|
|
|
|
|
|
Earnings per common share: |
|
|
|
|
|
|
|
Basic |
$ |
.75 |
|
$ |
.38 |
|
$ |
1.68 |
|
$ |
.70 |
Diluted |
$ |
.72 |
|
$ |
.37 |
|
$ |
1.62 |
|
$ |
.69 |
|
|
|
|
|
|
|
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
Basic |
|
39,825 |
|
|
39,617 |
|
|
39,560 |
|
|
40,138 |
Diluted |
|
41,146 |
|
|
40,274 |
|
|
40,830 |
|
|
40,698 |
|
|
|
|
|
|
|
|
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) |
|
September 30, 2017 |
|
September 30, 2016 |
New heavy-duty
vehicles |
|
$ |
515,150 |
|
|
$ |
411,238 |
|
New medium-duty
vehicles (including bus sales revenue) |
|
|
210,699 |
|
|
|
187,231 |
|
New light-duty
vehicles |
|
|
16,311 |
|
|
|
20,380 |
|
Used
vehicles |
|
|
73,716 |
|
|
|
74,628 |
|
Other
vehicles |
|
|
3,152 |
|
|
|
5,361 |
|
|
|
|
|
|
Absorption Ratio |
|
|
120.9 |
% |
|
|
112.6 |
% |
|
|
|
|
|
|
|
|
|
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) |
|
September 30, 2017 |
September 30, 2016 |
Floor plan notes
payable |
|
$ |
706,995 |
|
$ |
711,906 |
|
Current maturities of
long-term debt |
|
|
142,675 |
|
|
132,671 |
|
Current maturities of
capital lease obligations |
|
|
15,314 |
|
|
14,409 |
|
Liabilities directly
associated with asset held for sale |
|
|
− |
|
|
1,163 |
|
Long-term debt, net of
current maturities |
|
|
450,121 |
|
|
494,550 |
|
Capital lease
obligations, net of current maturities |
|
|
64,972 |
|
|
71,979 |
|
Total Debt
(GAAP) |
|
|
1,380,077 |
|
|
1,426,678 |
|
Adjustments: |
|
|
|
Debt related to
lease & rental fleet |
|
|
(573,978 |
) |
|
(600,586 |
) |
Floor plan notes
payable |
|
|
(706,995 |
) |
|
(711,906 |
) |
Adjusted Total
Debt (Non-GAAP) |
|
|
99,104 |
|
|
114,186 |
|
Adjustment: |
|
|
|
Cash and cash
equivalents |
|
|
(127,915 |
) |
|
(91,698 |
) |
Adjusted Net
(Cash) Debt (Non-GAAP) |
|
$ |
(28,811 |
) |
$ |
22,488 |
|
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) |
|
September 30, 2017 |
September 30, 2016 |
Net Income
(GAAP) |
|
$ |
78,752 |
|
$ |
37,905 |
|
Provision for income
taxes |
|
|
43,619 |
|
|
24,140 |
|
Interest expense |
|
|
11,708 |
|
|
14,653 |
|
Depreciation and
amortization |
|
|
50,153 |
|
|
50,290 |
|
(Gain) on sale of
assets |
|
|
(260 |
) |
|
(1,608 |
) |
EBITDA
(Non-GAAP) |
|
|
183,972 |
|
|
125,380 |
|
Adjustment: |
|
|
|
Interest expense
associated with FPNP |
|
|
(9,555 |
) |
|
(12,872 |
) |
Restructuring and
impairment charges |
|
|
− |
|
|
8,930 |
|
Adjusted EBITDA
(Non-GAAP) |
|
$ |
174,417 |
|
$ |
121,438 |
|
The Company presents EBITDA and Adjusted EBITDA,
for the twelve months ended each period presented, 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) |
|
September
30, 2017 |
September 30, 2016 |
Net cash
provided by operations (GAAP) |
|
$ |
304,726 |
|
$ |
514,543 |
|
Acquisition of property
and equipment |
|
|
(176,175 |
) |
|
(277,125 |
) |
Free cash flow
(Non-GAAP) |
|
|
128,551 |
|
|
237,418 |
|
Adjustments: |
|
|
|
Payments on
floor plan financing, net |
|
|
(35,962 |
) |
|
(205,716 |
) |
Proceeds from
L&RFD |
|
|
115,258 |
|
|
150,685 |
|
Principal
payments on L&RFD |
|
|
(153,459 |
) |
|
(161,762 |
) |
Non-maintenance
capital expenditures |
|
|
32,429 |
|
|
74,834 |
|
Adjusted Free
Cash Flow (Non-GAAP) |
|
$ |
86,817 |
|
$ |
95,459 |
|
“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) |
|
September 30, 2017 |
September 30, 2016 |
Total Shareholders'
equity (GAAP) |
|
$ |
934,117 |
|
$ |
853,170 |
Adjusted net (cash)
debt (Non-GAAP) |
|
|
(28,811 |
) |
|
22,488 |
Adjusted
Invested Capital (Non-GAAP) |
|
$ |
905,306 |
|
$ |
875,658 |
“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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