Rush Enterprises, Inc. · NASDAQ:RUSHA
Rush Enterprises — Rush Enterprises Inc \tx\ — Investor Presentation (December 2024)
27 slides from Rush Enterprises's investor presentation, Dec 3, 2024
Slide 1: Investor Presentation December 2024
Exhibit 99.4 INVESTOR PRESENTATION December 2024 expect Priore.
Slide 2: Disclosure/Safe Harbor
DISCLOSURE/SAFE HARBOR This presentation may contain forward-looking statements (as defined in the Private Secures Litigation Reform Act 1995). Any forward-looking statements are based on current expectations with respect to important risk factors. Itis important to note that our actual results coul
Slide 3: Company Performance
COMPANY PERFORMANCE + The largest commercial vehicle dealer group in North America + Full-service solutions provider to commercial vehicle industry + 8,000 dedicated employees + $7.98 in revenue in 2023 + 39,686 trucks sold in 2023 + 2023 Class 8 market share: 6.2% U.S. and 2.0% Canada + 2023 Class
Slide 4: The Premier Full-Service Solutions Provider
THE PREMIER FULL-SERVICE SOLUTIONS PROVIDER Rush Truck Centers The House of Trucks Rush Refuse Systems Cummins Clean Fuel Technologies Rush Crane Systems Custom Vehicle Solutions Rush Towing Systems Perfection Truck Parts & Equipment Rush Bus Centers Chrome Country Rush Truck Leasing World Wide Tire
Slide 5: Industry Outlook
INDUSTRY OUTLOOK + Low freight rates and high interest rates negatively impacting over-the-road customers * Commercial vehicle demand is weak but should improve in second half of 2025 due to emissions * Vocational segments remain strong + Used truck demand weak, but depreciation rates have normalize
Slide 6: Liquidity and Expense Management
LIQUIDITY AND EXPENSE MANAGEMENT + Strong free cash flow; $185M in cash as of September 2024 * Continuing to invest in strategic initiatives + Authorized $150M share repurchase program in December 2024 + Quarterly cash dividend in Q3 2024 - $0.18 * Disciplined expense management approach + $1.27B in
Slide 7: U.S. Retail Truck Sales Projections to 2027
U.S. RETAIL TRUCK SALES PROJECTIONS TO 2027 325 300 275 250 225 200 175 ¥ 150 Units (Thousands) 2017-2018) 2019 2020 2021 2022 = 2023 2024E = 2025E« 2026E =. 2027E 197 Source: ACT Research 7
Slide 8: Strategic Growth Initiatives
STRATEGIC GROWTH INITIATIVES + Financial goals = $10B in annual revenue - 6%return on sales + Growth goals and opportunities Grow aftermarket parts and service revenue to $3.58, Increase U.S. Class 8 market share to 7.5% Increase U.S. Class 4-7 market share to 6.5% Maintain RTL retum on sales > 15%
Slide 9: Sustainability - ESG
SUSTAINABILITY - ESG Oversight by Nominating and Governance Committee of the Board Issued second Corporate Responsibility Report ~ November 2023 Environmental — Supporting transition from fossil fuels (zero emission vehicles) — Working with OEMs on altemative fuel technologies ~ Cummins Clean Fuel T
Slide 10: Rush Truck Centers
RUSH TRUCK CENTERS + Largest commercial vehicle dealer network in North America + 141 locations in 23 states, 13 locations in Canada * Class 3-8 commercial vehicle sales, full range of aftermarket solutions + Largest dealer group for Peterbilt, Navistar, Hino, Isuzu, Blue Arc, growing with Ford + Br
Slide 11: Rush Truck Centers Network
RUSH TRUCK CENTERS NETWORK o Perenaur veers ‘@ remo DeaERsHS (© ono ores “© wocrenent ras ano service LocaTONS Tena 408 TEAL 108
Slide 12: Solutions Network
SOLUTIONS NETWORK * Capabilities for all makes and models + Aftermarket parts — $320 million parts inventory — Genuine OEM and all-makes parts, including proprietary Rig Tough and Premium Power powertrain parts * Service and body shop 2,678 service bays 2,426 technicians in the U.S. 167 technicians
Slide 13: An Unrivaled Portfolio of Aftermarket Solutions
AN UNRIVALED PORTFOLIO OF AFTERMARKET SOLUTIONS . =
Slide 14: Absorption Performance
ABSORPTION PERFORMANCE * Critical metric for dealership efficiency ABSORPTION RATIO" + Measures less cyclical gross profit ee compared to controllable expenses Pe * 135% in 2023 + 136.2% in 08 2024 = * Sustained performance highlights effectiveness of strategic initiatives 115% 100% Du OH mH BT we m
Slide 15: Quality of Earnings 2024
QUALITY OF EARNINGS 2024 Sas | REVENUE Leaafariene 62% InsurancelOther —| 9% Parts and Service ™ Lease, RentaliFinance, 6I% Insurance/Other 5%
Slide 16: Rush Enterprises Annual Truck Sales
RUSH ENTERPRISES ANNUAL TRUCK SALES Units (Thousands) 50 40 15.0 175 155 30 146 168 107 20 129 144 ia 133 145 10 i i | Bl el | 2018 2019 2020 2021 2022 2023 20048 Used Light-duty m Medium-duty sm Class 8 oped es
Slide 17: Vehicle Franchises
VEHICLE FRANCHISES Peterbilt, Class 6-8 - 67 locations, 12 states + Intemational, Class 5-8 - 57 locations, 12 states, 80% ownership of 13 locations in Canada + Ford, Class 3-7 - 10 locations, 8 states + Hino, Class 5-7 — 34 locations, 9 states + Isuzu, Class 4-5 - 29 locations, 14 states + Blue Arc
Slide 18: Class 8 Customers
CLASS 8 CUSTOMERS + Rush Enterprises 2023 U.S. Class 8 market share - 6.2% + 2023 Canadian Class 8 market share - 1.6% Strong vocational component Large fleets consolidating + Private mid-size fleets remain viable + Independent owner-operator now variable component of truckload cari 15.20% Owner. Op
Slide 19: Class 4-7 Customers
CLASS 4-7 CUSTOMERS + Rush Enterprises 2023 U.S. Class 4-7 market share - 5.1% 2023 Canadian Class 4-7 market share - 2.9% Vocational and specialty markets Ready-to-Roll® inventory National fleet accounts + Market tied closely to general economy 541 % amazon Saver FedEx is expect Pitore.
Slide 20: Rush Truck Leasing
RUSH TRUCK LEASING + Full-service leasing and rental + PacLease and Idealease franchises + 66 locations in 22 states + 10,000+ units in truck fleet, including cranes + 2,200 units under contract fleet maintenance + Growing need by customers for outsourced maintenance IDEALEASE ——— $400 $350 $300 $25
Slide 21: Historical Results
HISTORICAL RESULTS Revenue $47359 $5,261 $7,017 —$7,9250 $5,895.6 $5.7952 Gross profit $8755 $1,0923$1.4872 $1,593 $1,207.0 $1,161.3 Gross profit margin 185% 21.3% 209% 20.1% 208% 200% ‘Adjusted EBIT (1)" $149.9 $348 $505.9 $459.1 $356.1 $7096 ‘Adjusted EBIT margin? 3.2% 6.1% 71% 58% 6.0% 52% Net in
Slide 22: Adjusted Return on Invested Capital
ADJUSTED RETURN ON INVESTED CAPITAL PE EE EEE ee Taal dett (GAAP) $1,158,553 $108,187 $1331328 $1687482 © $1568733 ——$1.815461 Adjustments, Dettreleted to lease andrea fet ($601,272) ($47,098) ($3E3.879) ($543,625) (SHI3086) (8526443) Floor pianntes payable (8511786) ($630,731) ($883,203) (61,199744
Slide 23: Free Cash Flow
FREE CASH FLOW expect more.
Slide 24: Slide 24
Slide 25: Appendix
APPENDIX This presentation contains certain Non-GAAP financial measures as defined under SEC rules, such as Adjusted EBITDA, Adjusted EBIT, Adjusted EBIT Margin, Adjusted Net Income, Adjusted EPS, Adjusted Total Debt, Adjusted Net Debt, Adjusted Invested Capital, Adjusted Retum on Invested Capital,
Slide 26: Appendix Reconciliation Adjusted Net Income and EPS
APPENDIX RECONCILIATION Adjusted Net Income and EPS expect more.
Slide 27: Appendix Reconciliation
a APPENDIX RECONCILIATION Net Income ‘Adjusted Net Income” Provision fr Income Taxes Interest expense Depreciation and amotzation (Gain) Loss on ses of assets EBITDAY Adjustments: Interest expense associated wth forpian notes payable ‘Adjusted EBITDA" Depreciation and amotzation ‘Adjusted BIT" “Aen
Rush Enterprises Inc \tx\ — Investor Presentation (December 2024) on 6ix