<SEC-DOCUMENT>0001171843-17-002277.txt : 20170424
<SEC-HEADER>0001171843-17-002277.hdr.sgml : 20170424
<ACCEPTANCE-DATETIME>20170424165635
ACCESSION NUMBER:		0001171843-17-002277
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20170424
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20170424
DATE AS OF CHANGE:		20170424

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			RUSH ENTERPRISES INC \TX\
		CENTRAL INDEX KEY:			0001012019
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-AUTO DEALERS & GASOLINE STATIONS [5500]
		IRS NUMBER:				741733016
		STATE OF INCORPORATION:			TX
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-20797
		FILM NUMBER:		17778771

	BUSINESS ADDRESS:	
		STREET 1:		555 IH 35 SOUTH
		CITY:			NEW BRAUNFELS
		STATE:			TX
		ZIP:			78130
		BUSINESS PHONE:		8306265200

	MAIL ADDRESS:	
		STREET 1:		555 IH 35 SOUTH
		CITY:			NEW BRAUNFELS
		STATE:			TX
		ZIP:			78130
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>f8k_042417.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<html><head><title></title></head><body><div style="margin-top: 3pt; margin-bottom: 12pt;"><div style="font-size: 1pt; border-top: Black 2.5pt solid; border-bottom: Black 1.1pt solid; width: 100%;"><font style="font-size: 10pt;">&#160;</font></div></div><p style="text-align: center;"><font style="font-size: 14pt;"><strong>UNITED STATES</strong><br><strong>SECURITIES AND EXCHANGE COMMISSION</strong><br><strong>Washington, D.C. 20549</strong><br>_____________________</font></p><p style="text-transform: uppercase; text-align: center;"><font style="font-size: 14pt;"><strong>Form 8-K</strong><br>_____________________</font></p><p style="text-align: center;"><font style="font-size: 12pt;"><strong>CURRENT REPORT</strong></font></p><p style="text-align: center;"><font style="font-size: 12pt;"><strong>Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</strong></font></p><p align="center"><font style="font-size: 10pt;">Date of Report (Date of earliest event Reported): <!--April 24, 2017-->April 24, 2017 &#160;</font></p><p align="center"><font style="font-size: 12pt;"><strong>Rush Enterprises, Inc.</strong></font><br><font style="font-size: 10pt;">(Exact Name of Registrant as Specified in Charter)</font></p><table style="width: 100%;" border="0" cellspacing="0" cellpadding="0"><tr valign="top"><td align="center" width="33%"><font style="font-size: 10pt;"><strong>Texas</strong></font></td><td align="center" width="34%"><font style="font-size: 10pt;"><strong>0-20797</strong></font></td><td align="center" width="33%"><font style="font-size: 10pt;"><strong>74-1733016</strong></font></td></tr><tr valign="top"><td align="center" width="33%"><font style="font-size: 10pt;">(State or Other Jurisdiction of Incorporation)</font></td><td align="center" width="34%"><font style="font-size: 10pt;">(Commission File Number)</font></td><td align="center" width="33%"><font style="font-size: 10pt;">(I.R.S. 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Press release dated April 24, 2017</font></p><p><font style="font-size: 10pt;"></font></p><p><font style="font-size: 10pt;"></font></p><hr style="page-break-after: always;" noshade="noshade"><p align="center"><font style="font-size: 10pt;"><strong>SIGNATURE</strong></font></p><p><font style="font-size: 10pt;">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</font></p><table style="width: 100%;" border="0" cellspacing="0" cellpadding="0"><tr valign="top"><td valign="top" width="49%"><font style="font-size: 10pt;">&#160;</font></td><td style="font-size: 12pt;" colspan="2" valign="top"><font style="font-size: 10pt;"><strong>Rush Enterprises, Inc.</strong></font></td></tr><tr valign="top"><td width="49%"><font style="font-size: 10pt;">&#160;</font></td><td width="2%"><font style="font-size: 10pt;">&#160;</font></td><td width="49%"><font style="font-size: 10pt;">&#160;</font></td></tr><tr valign="top"><td width="49%"><font style="font-size: 10pt;">&#160;</font></td><td width="2%"><font style="font-size: 10pt;">&#160;</font></td><td width="49%"><font style="font-size: 10pt;"></font></td></tr><tr valign="top"><td width="49%"><font style="font-size: 10pt;">Date: April 24, 2017</font></td><td width="2%"><font style="font-size: 10pt;">By:&#160;</font></td><td style="text-decoration: underline;" width="49%"><font style="font-size: 10pt;">/s/ Steven L. 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</TEXT>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>exh_991.htm
<DESCRIPTION>PRESS RELEASE
<TEXT>
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"><html lang="en-US"><head><title>EdgarFiling</title><meta content="text/html; charset=windows-1252"><meta name="GENERATOR" content="MSHTML 8.00.7601.18094"></head><body bgcolor="#ffffff"><p style="text-align: right;"><strong>Exhibit 99.1</strong></p><p style="text-align: center;"><strong>Rush Enterprises, Inc. Reports First Quarter 2017 Results</strong></p><p style="text-align: center;"><p> <ul><li>Revenues of $1.0 billion, $14.5 million net income</li><li>Rush Class 8 truck sales outperformed U.S. market; market share increases to 7.1%</li><li>Class 4-7 truck sales impacted by timing of large fleet deliveries</li><li>Aftermarket revenues up slightly due to increased activity in energy and construction</li></ul>  <p>SAN ANTONIO, April  24, 2017  (GLOBE NEWSWIRE) -- 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 March 31, 2017, the Company achieved revenues of $1.045 billion and net income of $14.5 million, or $0.36 per diluted share, compared with revenues of $1.071 billion and net income of $2.4 million, or $0.06 per diluted share, in the quarter ended March 31, 2016.&#160; Our net income in the first quarter of 2016 was negatively impacted by the Company taking a non-recurring restructuring charge of $8.1 million to selling, general and administrative expenses.&#160; This non-recurring restructuring charge was related to the closing of certain dealerships and the disposition of excess real estate in the first quarter of 2016.&#160; This non-recurring restructuring charge reduced earnings per diluted share by $0.12 in the first quarter. &#160;Excluding the first quarter 2016 non-recurring restructuring charge, net income increased by $7.2 million in the first quarter of 2017 compared to the first quarter of 2016.</p>  <p>&#8220;Given continued challenging market conditions, I am proud of our financial performance this quarter. &#160;Modest increases in activity in both the energy and construction sectors positively impacted revenues in all parts of our business,&#8221; said W.M. &#8220;Rusty&#8221; Rush, Chairman, Chief Executive Officer and President of Rush Enterprises, Inc.&#160; &#8220;We continued to aggressively manage costs throughout our organization, which also contributed to our improved net income this quarter. &#160;We also expanded our service and sales capacity with the opening of two new Peterbilt dealerships, one in New Mexico and one in Texas, and we continued numerous facility renovation projects across our network,&#8221; he said.&#160; &#8220;We reorganized certain positions in our leadership team over the past few months to better align our operations and heighten our focus on strategic initiatives, and we are beginning to build momentum in these areas,&#8221; Rush added.</p>  <p>&#8220;As always, I wish to extend my thanks to all of our employees for their steadfast dedication to our customers while also managing expenses and staying focused on our strategic growth initiatives,&#8221; said Rush.&#160;</p>  <p align="center"><strong><em>Operations</em></strong></p>  <p><strong>Aftermarket Solutions</strong></p>  <p>Aftermarket services accounted for approximately 67% of the Company&#8217;s total gross profit in the first quarter of 2017, with parts, service and body shop revenues up 2.4%, as compared to the first quarter of 2016.&#160; The Company achieved a quarterly absorption ratio of 113.4% in the first quarter of 2017.&#160;</p>  <p>&#8220;In general, vocational aftermarket business remains steady, and we are seeing growth on both coasts primarily linked to construction,&#8221; said Rush. &#160;&#8220;We are also seeing modest growth in energy sector activity, and we expect that growth will continue at the same pace throughout 2017.&#160;</p>  <p>&#8220;Our dealerships continue to work diligently to manage expenses and gain efficiencies, both of which have helped improve our operating profit this quarter,&#8221; Rush noted. &#8220;Further, we remain committed to our strategic growth initiatives and are beginning to gain traction on these efforts,&#8221; he added.</p>  <p><strong>Truck Sales</strong></p>  <p>U.S. Class 8 retail sales were 38,023 units in the first quarter, down 29% over the same time period last year.&#160; The Company sold 2,706 Class 8 trucks in the first quarter, an increase of 1.0% compared to 2016, and accounted for 7.1% of the U.S. Class 8 truck market.&#160; ACT Research forecasts U.S. retail sales for Class 8 vehicles to be 168,000 units in 2017, a 15% decrease compared to 2016.</p>  <p>&#8220;Over-the-road fleet sales remain challenging, as they did throughout 2016, but we experienced moderate increases in stock truck, small fleet and vocational sales in the first quarter,&#8221; said Rush. &#160;&#8220;The number of used trucks for sale nationwide remains higher than normal causing continued low used truck values.&#160; However, we have positioned our used truck inventory to be as aggressive as possible in the current market,&#8221; Rush said.</p>  <p>&#8220;In addition, we have seen an increase in Class 8 truck orders from stronger activity in the vocational segment, such as construction and energy, and general economic improvement.&#160; We are encouraged by this increase in order activity, and believe 2017 is shaping up to be better than originally anticipated,&#8221; said Rush.&#160; The Company sold 2,553 Class 4-7 medium-duty commercial vehicles in the first quarter, a decrease of 22.0% compared to the first quarter of 2016, and accounted for 4.5% of the U.S. Class 4-7 commercial vehicle market.&#160; ACT Research forecasts U.S. retail sales for Class 4-7 vehicles to reach 233,800 units in 2017, a 3% increase over 2016.&#160;</p>  <p>&#8220;Due to the timing of several large fleet deliveries in the first quarter of 2016, we showed a decline in our medium-duty sales this quarter, but we expect to remain on pace with the market throughout the rest of 2017,&#8221; Rush said.&#160; &#8220;We continue to see demand for our &#8216;Ready-to-Roll&#8217; work-ready inventory, especially in the Southeast United States where construction is strong, as well as strong demand in our vehicle lease and rental markets,&#8221; said Rush.</p>  <p align="center"><strong><em>Financial Highlights</em></strong></p>  <p>In the first quarter, the Company&#8217;s gross revenues totaled $1.045 billion, a 2.4% decrease from $1.071 billion in the first quarter of 2016.&#160; Net income for the quarter was $14.5 million, or $0.36 per diluted share, compared to net income of $2.4 million, or $0.06 per diluted share, in the quarter ended March 31, 2016.&#160; The non-recurring restructuring charge in the first quarter of 2016, related to the closing of certain dealerships and the disposition of excess real estate, reduced earnings per diluted share by $0.12 in the first quarter of 2016.&#160; Excluding the first quarter 2016 non-recurring restructuring charge, net income increased by $7.2 million in the first quarter of 2017 compared to the first quarter of 2016.</p>  <p>Parts, service and body shop revenues were $350.1 million in the first quarter of 2017, compared to $341.9 million in the first quarter of 2016.&#160; The Company delivered 2,706 new heavy-duty trucks, 2,553 new medium-duty commercial vehicles, 347 new light-duty commercial vehicles and 1,711 used commercial vehicles during the first quarter of 2017, compared to 2,679 new heavy-duty trucks, 3,271 new medium-duty commercial vehicles, 387 new light-duty commercial vehicles and 1,735 used commercial vehicles during the first quarter of 2016.</p>  <p>&#8220;As is customary for us in the first quarter of every year, expenses increased due to employee benefits and payroll taxes,&#8221; Rush said. &#160;&#8220;Even with these expense increases and $7.65 million of stock repurchases made under our $40 million stock repurchase plan, our cash position remains strong, allowing us to plan for future growth,&#8221; Rush concluded.</p>  <p align="center"><strong><em>Conference Call Information</em></strong></p>  <p align="justify">Rush Enterprises will host its quarterly conference call to discuss earnings for the first quarter on <strong>Tuesday, April 25, 2017, at 10 a.m. Eastern/9 a.m. Central</strong>.&#160; The call can be heard live by dialing <strong>877-638-4557 (U.S.) or 914-495-8522 (International) </strong>or via the Internet at http://investor.rushenterprises.com/events.cfm.&#160;</p>  <p align="justify">For those who cannot listen to the live broadcast, the webcast will be available on our website at the above link until July 10, 2017.&#160; Listen to the audio replay until April 30, 2017 by dialing <strong>855-859-2056 (U.S.) or 404-537-3406 (International)</strong> and entering the <strong>Conference ID 5310068.</strong></p>  <p align="justify"><strong>About Rush Enterprises, Inc.</strong></p>  <p>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 &#8212; 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&#8217; products and services is available at www.rushenterprises.com. Follow our news on Twitter at @rushtruckcenter and on Facebook at facebook.com/rushtruckcenters.</p>  <p><em>Certain statements contained herein, including those concerning current and projected market conditions, sales forecasts, market share forecasts, demand for the Company&#8217;s services and the impact of strategic initiatives are &#8220;forward-looking&#8221; 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. 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text-align: left ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; padding-right: 0 ; text-align: right ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td><td style="padding-left: 0 ; text-align: left ;  vertical-align: bottom; vertical-align: bottom ; ">&#160;</td></tr></table> <p align="justify"><strong><u>Absorption Ratio</u></strong><br>Management uses several performance metrics to evaluate the performance of its commercial vehicle dealerships and considers Rush Truck Centers&#8217; &#8220;absorption ratio&#8221; to be of critical importance.&#160; 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&#8217;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.&#160; 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are key financial measures of the Company&#8217;s ability to generate cash from operating its business.&#160; Free Cash Flow is calculated by subtracting the acquisition of property and equipment included in the <em>Cash flows from investing activities</em> from <em>Net cash provided by (used in) operating activities</em>.&#160; For purposes of deriving Adjusted Free Cash Flow from the Company&#8217;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 <em>Cash flows from financing activities</em> as their purpose is to finance the vehicle inventory that is included in <em>Cash flows from operating activities</em>; (ii) adds back proceeds from notes payable related specifically to the financing of the lease and rental fleet that are reflected in <em>Cash flows from financing activities</em>; (iii) subtracts draws on floor plan financing, net and proceeds from L&amp;RFD related to business acquisition assets that are included in <em>Cash flows from investing activities; (</em>iv) subtracts principal payments on notes payable related specifically to the financing of the lease and rental fleet that are included in <em>Cash flows from financing activities</em>; 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.&#160; &#8220;Free Cash Flows&#8221; and &#8220;Adjusted Free Cash Flows&#8221; are both presented so that investors have the same financial data that management uses in evaluating the Company&#8217;s cash flows from operating activities.&#160; &#8220;Free Cash Flow&#8221; and &#8220;Adjusted Free Cash Flow&#8221; 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&#8217;s consolidated statement of cash flows in accordance with U.S. GAAP.&#160; Additionally, these non-GAAP measures may vary among companies and may not be comparable to similarly titled non-GAAP measures used by other companies.&#160;</p> <table style="border-collapse: collapse; border-collapse: collapse; border-collapse: collapse; "><tr><td style="border-bottom: solid black 1pt ; vertical-align: bottom ; "><strong>Invested Capital </strong>(in thousands)</td><td style="vertical-align: bottom ; ">&#160;</td><td colspan="2" style="vertical-align: bottom;   text-align: left;   padding-left: 10.0px; border-bottom: solid black 1pt ; text-align: center ;  vertical-align: bottom; vertical-align: bottom ; "><strong>&#160;March 31, <br>2017</strong></td><td colspan="2" style="border-bottom: solid black 1pt ; text-align: center ;  vertical-align: bottom; vertical-align: bottom ; "><strong>March 31, <br>2016</strong></td></tr><tr><td style="vertical-align: bottom ; ">Total Shareholders' equity (GAAP)</td><td style="vertical-align: bottom ; ">&#160;</td><td style="padding-right: 0 ; 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">&#160;</td><td style="vertical-align: bottom ; ">&#160;</td><td style="vertical-align: bottom ; ">&#160;</td></tr></table> <p align="justify">&#8220;Adjusted Invested Capital&#8221; is a key financial measure used by the Company to calculate its return on invested capital.&#160; For purposes of this analysis, management excludes L&amp;RFD, FPNP, and cash and cash equivalents, for the reasons provided in the debt analysis above and uses Adjusted Net Debt in the calculation.&#160; The Company believes this approach provides management a more accurate picture of the Company&#8217;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.&#160; &#8220;Adjusted Net (Cash) Debt&#8221; and &#8220;Adjusted Invested Capital&#8221; are both non-GAAP financial measures.&#160; Additionally, these non-GAAP measures may vary among companies and may not be comparable to similarly titled non-GAAP measures used by other companies.</p></p><p>Contact:<br>Rush Enterprises, Inc., San Antonio <br>Steven L. Keller, 830-302-5226</p></body></html>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
