Rush Enterprises, Inc. · NASDAQ:RUSHA
Rush Enterprises — Rush Enterprises Inc \tx\ — Investor Presentation (June 2015)
28 slides from Rush Enterprises's investor presentation, Jun 5, 2015
Slide 1: Rush Enterprises - June 5, 2015
VN ENTERPRISES dune 5, 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: Full service solutions provider to commercial vehicle industry
¢ Full service solutions provider to commercial vehicle industry * 6,735 dedicated employees + $4.7 billion in revenues in 2014 * 35,352 trucks sold in 2014 * 4.9-7.1% U.S. Class 4-8 market share in 2014 + $40 million share repurchase authorization « Aand B common shares due to voting control requir
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 (00's) 350 300 250 a 200 150 100 ACT Research 50 2004 2005 «2006 §=2007 «2008 ~=2009 «2010 2011 2012 2013 2014 2015E Class 4-7
Slide 6: Rush Truck Centers
Rush ‘Truck Centers « Largest commercial vehicle dealer group in North America * 120 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 5 million sq. ft.
Slide 7: Peterbilt Division
Peterbilt Division
Slide 8: Navistar Division
Navistar Division Fe ee 3 % $ ” few &°\ee é 2 “ee o. ots . is ®% Wt ©
Slide 9: Rush Truck Centers Network
Rush ‘Truck Centers Network 6 ve .? ie : Be ra) A 4 a oe le? PRs ° e 4 bs e, x) ° e e e oes e. e : od ° e a = ae nae % “s s * e e fege td e 2 ee e ee 3 oa :°
Slide 10: Solutions Network
Solutions Network * 120 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 — 1,965 service bays; 2,455 technicians; 28 collisio
Slide 11: Natural Gas Sales and Service
Natural Gas Sales and Service « Expected 8 - 10% of market by 2018 « Rush sales — 3,639 units since 2005 (319 YTD) * Sales support — Green consultant — Sales specialist « Parts and service support — Natural Gas Operations Manager — 14 dedicated CNG locations, 12 underway — Natural Gas service being
Slide 12: Momentum Fuel Technologies
Momentum Fuel Technologies + Innovative design and manufacturing capabilities ¢ Advanced safety features + Installation expertise « Nationwide service network « Production Summer 2015 U.S. CLASS 8 NATURAL GAS ADOPTION RATES Units (000) Source: ACT Research 2012 2013 2014 «2015 2016 2017 2018 2019 20
Slide 13: Absorption Performance
Absorption Performance * Critical metric for dealership efficiency ABSORPTION RATIO" « Measures less cyclical gross profit 120 5 compared to controllable expenses « Above 95% in down cycle due to efficient expense management ¢ Entered up cycle at 106%; 100 92% in 2003 lg2 * Q3 2014 record 120.2% © 1
Slide 14: Quality of Earnings
Quality of Earnings ‘00 4 , cA 9% 80 al 29.1% 36.9% 60 40 71.0% 62.6% 52.5% 3 20 Peak Trough 0 2006 2014 Parts and Service Truck Sales Leasing and Rental Class 8 Units 290,000 224,000
Slide 15: Rush Annual Truck Sales
Rush Annual ‘Truck Sales 9,545 | 9,052 | . 8416), 9,922 42% 4746 sey 7,126 0. 26% 1% 2,934 mma L376 ain 7,893 9,250 a 31% 3454 4,649 4744 , a 2010 2011 2012 2013 2014 2015E Used @ Light - Duty Medium — Duty m Class 8
Slide 16: Commercial Vehicle Franchises
Commercial Vehicle Franchises Peterbilt, Class 6-8 International, Class 5-8 Isuzu, Class 4-5 Hino, Class 5-7 Ford, Class 3-7 Mitsubishi Fuso, Class 4-5 — 50 locations, 10 states — 58 locations, 10 states — 30 locations, 10 states — 30 locations, 8 states — 6 locations, 6 states — 5 locations, 3 stat
Slide 17: Rush Class 8 Customers
Rush Class 8 Customers Rush US Class 8 <=> Walmart market share - 6% to 6.5% wae * Strong vocational component —saxeR + Large fleets consolidating 7 " Fed Pilot Schlumberger + Private mid-size fleets PORNO Y, Pear remain viable * Independent owner-operator LSAT now variable component of truckload ca
Slide 18: Rush Class 4-7 Customers
Rush Class 4-7 Customers Rush US Class 4-7 bright house ERR-D MASCO market share - 5% - 5.5% 4) i Pierce, * Vocational and specialty markets Mpreauild IPODS! « Ready to roll inventory * National fleet accounts « Market tied closely to the : \ PICK-UP! general economy ‘ 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 * 72 locations including 14 captive shops ¢ 7,125 truck fleet, 1,248 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 — I
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 Seelam me zon mame SL So Revenue $1,497.9 $2,580.6 $3,090.6 $3,384.7 $4,7274 $958.7 $1,193.5 Gross Profit $284.9 $423.3 $500.8 $572.0 $756.0 $165.9 $193.6 Gross Profit Margin 19.0% 16.4% 16.2% 16.9% 16.0% 17.3% 16.2% Adjusted EBIT (1)* $42.6 $93.0 $105.6 $95.4 $133.2 $20.3 $28.4 A
Slide 23: Adjusted Return on Invested Capital
Adjusted Return on Invested Capital Total debt $532,141 $804,534 $984,157 $1,121,897 $1,487,641 $1,224,968 $1,544,608 Adjustments Debt related to lease noes 6 ($181,022) ($233,624) ($322,913) ($413,066) ($539,426) ($453,531) ($552,223) Floor plan es at ($237,810) ($520,693) ($534,520) ($593,649) ($8
Slide 24: Free Cash Flow
Free Cash Flow Net cash provided by (used in) operations Acquisition of propertylequipment Free cash flow Adjustments: Draws (payments) on floor plan financing, net Proceeds from leaselrental debt Principal payments on leaselrental debt Debt proceeds related to acquisitions Non-maintenance capital e
Slide 25: Rush Enterprises - June 5, 2015
VN ENTERPRISES dune 5, 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: Appendix Reconciliation Adjusted Net Income and EPS
Appendix Reconciliation Adjusted Net Income and EPS In thousands, except per 3 months ended 3 months ended Shae aroun 2010 2011 2012 2013 2014 ar Levee Net Income $31,282 $55,213 $62,455 $49,217 $79,957 $12,014 $16,781 Adjustments Income from Discontinued Operations. (86,715) W. Marvin Rush retireme
Slide 28: Appendix Reconciliation Adjusted EBITDA and EBIT
Appendix Reconciliation Adjusted EBITDA and EBIT 3months ended 3 months ended $in thousands 2010 2011 2012 2013 2014 3/31/2014 3/31/2015 Adjusted Net Income* $24,567 $55,213 $62,455 $55,791 $82,040 $12,014 $16,781 Provision for incom! Taxes: $11,737 $34,984 «$38,728 ~=—$36,047 «$50,586 $7,801 $10,60
Rush Enterprises Inc \tx\ — Investor Presentation (June 2015) on 6ix