Rush Enterprises, Inc. · NASDAQ:RUSHA
Rush Enterprises — Rush Enterprises Inc \tx\ — Investor Presentation (November 2013)
26 slides from Rush Enterprises's investor presentation, Nov 1, 2013
Slide 1: October 29, 2013 expect more.
October 29, 2013 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: Full service solutions provider to commercial equipment industry
Full service solutions provider to commercial equipment industry 5,400 dedicated employees $3.1 billion in revenues in 2012 23,171 trucks sold in 2012, roughly 5% U.S. market share $40 million share repurchase authorization Aand B common shares due to control requirements established upon IPO
Slide 4: Fleet age will continue to drive strong aftermarket sales
= Fleet age will continue to drive strong aftermarket sales = Housing and automotive showing early signs of recovery = Vocational markets drive need for aftermarket solutions (upfitting, mobile service, modifications) = Alternate fuel vehicles grow opportunity -— up to 10% of market by 2017 = Improv
Slide 5: U.S. Truck Retail Sales
US. Truck Retail Sales Units (000’s) 350 300 250 200 150 100 ACT Research 50 2004 =2005 2006 §=2007 +2008 2009 2010 2011 2012 2013E 2014E oe TRE 111 146 Class 4-7 EE
Slide 6: Largest commercial vehicle dealer group in North America
= Largest commercial vehicle dealer group in North America = 96 locations in 19 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. of premium facilitie
Slide 7: Peterbilt Division
Peterbilt Division
Slide 8: Navistar Division
Navistar Division
Slide 9: Rush Truck Centers Network
Rush ‘Truck Centers Network
Slide 10: Locations support all divisions
= 96 locations support all divisions = Capabilities for all makes and models at all locations h zi TS * $150 million parts inventory = Only authorized Peterbilt and International parts dealer in territories = Proprietary Rig Tough truck parts -RVICE AND BODY SHOP = 1,697 service bays; 1,974 technici
Slide 11: Absorption Performance
Absorption Performance ABSORPTION RATIO" Critical metric for dealership cycle — expense management = Entered up cycle at 106%; = 92% in 2003 90 ee” Record 116% in 2012 Yer 3 4 5 6 7 8 9 10 11 12136 = 114.6% in Q3 2013 ad efficiency 114 116144 = Measures less cyclical gross profit compared to control
Slide 12: Quality of Earnings
Quality of Earnings Percentage 100 80 | 60 | 40 63.4% 52.5% 20 Peak | Trough |» y y 6 L L da 2006 2009 2012 Parts and Service w Truck Sales @ Other Leasing and Rental Class 8 Units 290,000 97,000 199,000 2013E GP Margin Truck Sales6.5% to 7.5% | PartsiService 37-40% | Rental and Leasing 14 to 16%
Slide 13: Rush Annual Truck Sales
Rush Annual Truck Sales Trucks 24,000 20,000 16,000 12,000 8,000 4,000 0 2008 2009 2010 2011 2012 2013E Used m Light Duty Medium Duty m Class 8
Slide 14: Peterbilt, Class 6-8 and other brands and locations
Peterbilt, Class 6-8 Hino, Class 4-7 Isuzu, Class 4-7 International, Class 4-8 Mitsubishi Fuso, Class 4-8 Ford, Class 3-7 Autocar Kalmar IC Bus Blue Bird Elkhart Collins Jert-Dan PacLease Idealease - 47 locations, 10 states — 24 locations, 8 states — 28 locations, 10 states - 37 locations, 9 states
Slide 15: Rush Class 8 Customers
Rush Class 8 Customers RUSH U.S. CLASS 8 MARKET SHARE - 5.0% - 5.5% = Strong vocational component = Large fleets consolidating = Private mid-size fleets remain viable = Independent Owner-Operator now variable component of truckload carrier VOCATIONAL 45-50% me AVERITTEXPHESS PRIPE Putoe osibsy yyvi
Slide 16: Rush Class 4-7 Customers
Rush Class 4-7 Customers ea RUSH MEDIUM-DUTY MARKET SHARE - 4.1% - 4.6% = Vocational and specialty markets RENTAL = Ready to roll inventory 10% «National fleet accounts = Market tied closely to the general economy
Slide 17: Full service leasing and rental
= Full service leasing and rental = Lease trucks captive source for parts and service revenue = PacLease and Idealease $i LEASING AND RENTAL REVENUE Trarichises F 5: lilions $125 = _§7 locations including $125 ih | 8 captive shops 10s | $100 = 6,083 truck fleet al = 968 units under contract $65 main
Slide 18: Objectives
= Provide comprehensive solutions and premier service to commercial equipment industry = Expand scope of commercial equipment product offerings = Enhance value of Rush brand = Grow to $5 billion in revenue with 20% average ROIC OBJECT = Expand network = Extend breadth of product and service offering
Slide 19: 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, ATIS Truck Insuranée Perfection Equipment Rig Tough Truck Parts. Custom Vehicle Solutions. Chrome Country World Wide Tires
Slide 20: Historical Results
Historical Results 9 months ended 2008 2009 2010 2011 2012 9. 30-13 per share amounts Revenue $52 $1,205 $1479 925008 $3096 92,4595 Gross Profit wO2 $156 sag 9433 «= sa008 218 ee 178% 180% 190% 164% 162% 16.2% 171% Adjusted EBIT(1)* $408 «$130 426.« $930 $105G Sig $701 fallusted EBIT 26% 11% 28% 36%
Slide 21: Adjusted Return on Invested Capital
Adjusted Return on Invested Capital Non GAAP $ in thousands 2008 2009 2010 2011 93012 930-13 Total debt $507,198 $433,202 $532,141 $894,534 $999,017 $1,081,168 Adjustments Debt related to lease and rental fleet (187,167) ($149,615) (181,022) ($233,624) ($294,315) $374,675) Floorplan notes payable 28
Slide 22: Free Cash Flow
Free Cash Flow Non GAAP $ in thousands 2008 2009 2010 2011 2012 9-30-12 9-30-13 Net cash provided by (used in) $83,059 $150,295 $66,433, $31,369) $219,336, $58,127 $208, 160, operations Fees cain ($68,160) (650,485) 84,303) 148,543) 170.951) 178.218) 164,121) Free cash flow $1499 $09,810 GI7,870) 20
Slide 23: October 29, 2013 expect more.
October 29, 2013 expect more.
Slide 24: 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 25: Appendix: Reconciliation Adjusted EBITDA and EBIT
Appendix Reconciliation Adjusted EBITDA and EBIT 9 months ended $ in thousand 2008 2003 2010 2011 2012 Adjusted Net Income* = $25,178 $6,925 $24,567 $55,213 $62,455 $48,237 $40,932 Provision for neaine Takes $13,964 (93,173) S14,737 $34,964 «938,728 ga0,642 928,348 Interest expense 97,280 $5605 «$53
Slide 26: Appendix: Reconciliation Adjusted Net Income and EPS
Appendix Reconciliation Adjusted Net Income and EPS 9 months ended Inthousands, except 2008 2008 2010 2011 2012 per share amounts A3 Net Income $28,965 95,884 $31 282 $55,213 $62,455 $48,237 $34,358 Adjustments Income from Discontinued (93,687) 6789) (86,715) Operations GMC franchise termination, ne
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