Rush Enterprises, Inc. · NASDAQ:RUSHA
Rush Enterprises — Rush Enterprises Inc \tx\ — Investor Presentation (February 2015)
28 slides from Rush Enterprises's investor presentation, Feb 11, 2015
Slide 1: Rush Enterprises
ZN ENTERPRISES February 9, 2015 expect more.
Slide 2: Disclosure/Safe Harbour
Disclosure/Safe Harbour This presentation may contain forward-looking statements (as defined in the Private Securities Litigation Reform Act 1995). Any forward-looking statements are based on current expectations with respect to important risk factors. It is important to note that our actual results
Slide 3: Company Overview
Company Overview + Full service solutions provider to commercial vehicle industry * 6,400 dedicated employees + $47 billion in revenues in 2014 * 35,352 trucks sold in 2014 * 4.9-7.5% U.S. Class 4-8 market share * $40 million share repurchase authorization + Aand B common shares due to control requi
Slide 4: Commercial Vehicle Market
Commercial Vehicle Market + Fleet age will continue to drive strong aftermarket sales + Automotive strong, commercial and residential construction continues to improve + Vocational markets drive need for aftermarket solutions (upfitting, mobile service, modifications) + Alternate fuel vehicles growi
Slide 5: US Truck Retail Sales
US Truck Retail Sales Units (000's) 350 300 250 200 150 100 ACT Research 2004 §=©2005 «2006 §=62007 «2008 «2009 «2010 «2011 «2012 «2013 «2014 2015E Class 4-7 JEM 239 | 173 | 111 | 118 | 146 200 | 207 50
Slide 6: Rush Truck Centers
Rush Truck Centers + Largest commercial vehicle dealer group in North America * 112 locations in 20 states + Broad market segment coverage + Peterbilt and Navistar divisions + Medium-duty operates within both divisions + Leasing and rental + Financial and insurance services * Over 2 million sq. ft.
Slide 7: Peterbilt Division
Peterbilt Division ct more.
Slide 8: Navistar Division
Navistar Division Us aot rl ° . rw é. 8, ct more.
Slide 9: Rush Truck Centers Network
Rush Truck Centers Network é 4 . = 3 3, 3 e A 3 os ° 5 Fs . ef ae . ° e. 7 0 oe . a ge we ‘9 ove . ! o & expect more.
Slide 10: Solutions Network
Solutions Network * 112 locations support all Rush businesses * Capabilities for all makes and models + Aftermarket Parts — $200 million parts inventory — Proprietary Rig Tough truck parts — RushCare Rapid Parts call centers * Service and Body Shop - 1,900 service bays; 2,357 technicians; 28 collisi
Slide 11: Natural Gas Sales and Service
Natural Gas Sales and Service + Expected 8-10% of industry by 2017 + Rush sales — 3,520 units since 2005 (785 in 2014) * Sales support — Green consultant — Sales specialist + Parts and service support — Natural Gas Operations Manager - 10 dedicated CNG locations, 15 underway — Natural Gas service be
Slide 12: Momentum Fuel Technologies
Momentum Fuel Technologies * Complete natural gas fuel system solution + Momentum Fuel Technologies - Design, manufacturing and installation — Sales and distribution — Warranty and service support + Partnership with 3M - Advanced proprietary materials and tank technology — Lean manufacturing experti
Slide 13: Absorption Performance
Absorption Performance * Critical metric for dealership efficiency ABSORPTION RATIO’ + Measures less cyclical gross profit 120 16 14 compared to controllable expenses + Above 95% in down cycle due to efficient expense management + Entered up cycle at 106%; 100 92% in 2003 92 * Q3 2014 record 120.2%
Slide 14: Quality of Earnings
Quality of Earnings ‘00. | A wm 9 80 coRK) 29.1% 36.9% 60 40 71.0% 62.6% 52.5% 20 0 2014 Parts and Service Leasing and Rental Class 8 Units
Slide 15: Rush Annual Truck Sales
Rush Annual Truck Sales 15,833 9,545 9,925 9,052 12,000 ¢ 000 yoda 5 ey 7,126 mnt! me 2 4000 rade) 4609) a7a4 2010 2011 2012 2013 2014 Used @ Light - Duty Medium — Duty gate), 9922 6,405 AE 42% 40,750) |76% 5% 9,250 925% 2015E m Class 8
Slide 16: Commercial Vehicle Franchises
Commercial Vehicle Franchises Peterbilt, Class 6-8 — 50 locations, 10 states International, Class 5-8 - 50 locations, 10 states Isuzu, Class 4-5 — 30 locations, 10 states Hino, Class 5-7 - 30 locations, 8 states Ford, Class 3-7 - 6 locations, 6 states Mitsubishi Fuso, Class 4-5 - 5 locations, 3 stat
Slide 17: Rush Class 8 Customers
Rush Class 8 Customers Rush US Class 8 r market share - 6.5% to 7.5% 2 + Strong vocational component sage PRIPE wu soosi KOSH i + Large fleets consolidating _ Pilot + Private mid-size fleets AMERITTEPRES pigs acme Schiunberyer remain viable + Independent owner-operator now variable component of truc
Slide 18: Rush Class 4-7 Customers
Rush Class 4-7 Customers Rush US Class 4-7 brighthouse BRU DY MASCO market share — 4.5% - 5.5% ‘ i [ Proce. + Vocational and specialty markets Mpreauild + Ready to roll inventory + National fleet accounts + Market tied closely to the general economy PICK-UP! DELIVERY
Slide 19: Rush Truck Leasing
Rush Truck Leasing + Full service leasing and rental + Lease trucks captive source for parts and service revenue + PacLease and Idealease franchises * 66 locations including 10 captive shops * 6,876 truck fleet, 1,197 units under contract maintenance * Growing need by customer for outsourced mainten
Slide 20: Growth Strategy
Growth Strategy * Goals — Provide comprehensive solutions and premier service to commercial equipment industry — Expand scope of commercial equipment product offerings - Enhance value of Rush brand * Objectives — Expand network - Extend breadth of product and service offerings in current markets
Slide 21: Company at a Glance
Company at a Glance Rush Truck Centers Rush Refuse Systems Rush Crane Systems Rush Towing Systems Rush Bus Centers Rush Truck Financing Rush Truck Leasing Rush Truck Insurance Perfection Equipment Rig Tough Truck Parts Rig Tough Used Trucks Momentum Fuel Technologies Custom Vehicle Solutions Chrome
Slide 22: Historical Results
Historical Results Revenue $1,2005 Gross Profit $2156 Gross Profit Margin 18.0% Adjusted EBIT (1)* $130 Adjusted EBIT Margin* 4.1% Net income (2 $69 Adjusted EPS (2)" $0.18 $1,497.9 $284.9 19.0% $426 28% $24.6 $0.64 $2,580.6 $423.3 16.4% $93.0 3.6% $55.2 $1.42 $3,090.6 $500.8 16.2% $105.6 3.4% $62.5
Slide 23: Adjusted Return on Invested Capital
Adjusted Return on Invested Capital thousands 2009 2010 2011 2012 2013 2014 Total debt $433,202 $532,144 $304,534 $904,157 $1,421,897 $1,487,641 Adjustments pe eee leas ($149,615) ($181,022) ($283,624) ($322,913) ($413,066) ($539,426) ened on ($189,256) ($287,810) ($520,693) ($534,520) ($593,649) ($
Slide 24: Free Cash Flow
$ in thousands Net cash provided by (used in) operations ‘Acquisition of property/equipment Free cash flow Adjustments: Draws (payments) on floor plan financing, net Proceeds from lease/rental debt Principal payments on lease/rental debt Debt proceeds related to acquisitions Non-maintenance capital
Slide 25: Rush Enterprises
ZN ENTERPRISES February 9, 2015 expect more.
Slide 26: Appendix
Appendix This presentation contains certain Non-GAAP financial measures as defined under SEC rules, such as Absorption Ratio, Adjusted EBITDA, Adjusted EBIT, Adjusted EBIT Margin, Adjusted Net Income, Adjusted EPS, Adjusted Total Debt, Adjusted Net Debt, Invested Capital, Adjusted Return on Invested
Slide 27: Reconciliation Adjusted Net Income and EPS
App endix Reconciliation Adjusted Net Income and EPS Inthousands, except per share aD a ane 2013 14 amounts Net Income $5,884 $31,282 $55,213 $362,455 $49,217 $79,957 Adjustments Income from Discontinued Operations ($789) ($6,715) GMC franchise termination, net sin W. Marvin Rush retirement payment
Slide 28: Reconciliation Adjusted EBITDA and EBIT
Appendix Reconciliation Adjusted EBITDA and EBIT $in thousands Adjusted Net Income* Provision for Income Taxes Interest expense Depreciation and amortization Aircraft impairment charge, net of tax (Gain) Loss on sales of assets EBITDA* Adjustments ‘Atterative fuel fax credits Interest expense associ
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