Rush Enterprises, Inc. · NASDAQ:RUSHA
Rush Enterprises — Rush Enterprises Inc \tx\ — Investor Presentation (February 2014)
26 slides from Rush Enterprises's investor presentation, Feb 12, 2014
Slide 1: February 12, 2014 expect more.
February 12, 2014 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 result
Slide 3: Full service solutions provider to commercial equipment industry
Full service solutions provider to commercial equipment industry 5,800 dedicated employees $3.4 billion in revenues in 2013 26,336 trucks sold in 2013, roughly 5% U.S. market share $40 million share repurchase authorization Aand Bcommon 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 dive need for aftermarket solutions (upfitting, mobile service, modifications) = Altemate fuel vehicles growing opportunity — up to 10% of market by 2017 = |mprov
Slide 5: U.S. Truck Retail Sales
U.S. Truck Retail Sales Units (00's) 360 300 250 200 150 100 AGT Research 50 2004 2005 2008 2007 2008 «2009 2010 2011 2012 2013 2014E oo: EEE EN TE ot EES RT
Slide 6: Largest commercial vehicle dealer group in North America
Largest commercial vehicle dealer group in North America 107 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. of prernium facilities
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
= 407 locations suppot all divisions = Capabilities for all makes and models at all locations AFTERMARKET PARTS = $150 million parts inventory = Only authorized Peterbilt and International pars dealer in territories = Proprietary Rig Tough truck parts SERVICE AND BODY SHOP = 4,897 service bays; 2,19
Slide 11: Absorption Performance
Absorption Performance ABSORPTION RATIO" Percent 120 > 405495 105 10) 100 = Yar 3 45 67 8 9 01 +14 Me Critical metric for dealership efficiency Measures less cyclical gross profit compared to controllable expenses Maintained above 95% in down cycle — expense management Entered up cycle at 106%; 92%
Slide 12: Quality of Earnings
Quality of Earnings Percentage 100 80 60 40 71.0% 52.5% 64.4% 20 4 | Peak | Trough 4 di 0 2008 2009 2018 Parts and Service Truck Sales @Other Leasing and Rental Class 8 Units 290,000 97,000 188,000 2013E GP Margin Tuck Sales 6.5% to 75% | Parls(Service 37-39% | Rental and Leasing 14to 16%
Slide 13: Rush Annual Truck Sales
Rush Annual Truck Sales Trucks 28,000 24,000 20,000 16,000 12,000 8,000 4,000 3.294 6,405 0 2008 2009 2010 2011 2012 2013 Used might Duty Medium Duty mi Class 8
Slide 14: Vendors
WY vennoa Peterbilt, Class 6-8 International, Class 5-8 Isuzu, Class 45 Hino, Class 5-7 Ford, Class 3-7 Mitsubishi Fuso, Class 4-5 Kalmar IC Bus Blue Bird Elkhart Collins Jere-Dan PacLease Idealease — 48 locations, 10 states 48 locations, 10 states 30 locations, 10 states 26 locations, 7 states - 6
Slide 15: Rush Class 8 Customers
Rush Class 8 Customers ee RUSH U.S. CLASS 8 45.50% 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 X MARTEN By AUERITTEXPRESS Puss omkbsy yy ag Aeame
Slide 16: Rush Class 4-7 Customers
Rush Class 4-7 Customers RUSH MEDIUM-DUTY MARKET SHARE - 4.2%- 4.7% = Vocational and specialty markets = Ready to roll inventory = National fleet accounts = Market tied closely to the general economy brighthouse (©) YEFEDAN =MASCO — BSPROBuild a <a> * GD canteen
Slide 17: Rush Truck Leasing
Rush Truck Leasing = Full service leasing and rental = Lease trucks captive source for parts and service revenue » PacLease and Idealease . franchises $ Miong CEASINGAND RENTAL REVENUE eh = 62 locations including BD 10 captive shops = 6,302 truck fleet, 936 units under contract maintenance = Growing
Slide 18: Goals and Objectives
GOALS = Provide comprehensive solutions and premier service to cornmmercial equipment industry = Expand scope of commercial equipment product offerings = Enhance value of Rush brand = Grow to $5 billion in revenue with 20% average ROIC OBJECTIVES = Expand network = Extend breadth of product and serv
Slide 19: Company at a Glance
Company at a Glance Ruish Truck Centers Rush Refuse Systems Rush Crane Systeris Ruish Towing Systerns. Rush Bus Certers, Ruish Truck Financitg Rush Truck Leasing Rush Truck Insuratioe Perfection Equipment Rig Tough Truck Parts Rig Tough Used Trucks Custorn Vehicle Solutiofts Chrome Country ‘World Wi
Slide 20: Historical Results
Historical Results Simin axes 2008 En) 2010 21 2012 2013 Revenue $15712 $1 2005 $4979 92.5806 $3,090 $3,847 Gross Profit $2802 $2156 «= $2849 $483 SHIN $5720 Gross Profit Margin 178% 180% 19.0% 16.4% 16.2% 163% Adjusted EBIT (1)" $408 $80 $426 $930 $405.6 $95.4 Adjusted EBIT a 7 7 . 7 " Margi 26% 11
Slide 21: Adjusted Return on Invested Capital
Adjusted Return on Invested Capital inthousands 2008 2009 2010 an 2012 2013 Total debt $507,198 $433,202 $592,141 $804534 — $oRK 1ST $1,101,897 Adjustments Debt related to ndieaelieet (137,167) 149,615) 181,022) 233,624) 322,913) (413,066) Floor pk notes payalde 282,702) $189,266) $287,810) 520,602)
Slide 22: Free Cash Flow
Free Cash Flow Sinthousands 2008 2009 a0 201 ame ma Not cash provided b fipedinp operations $83,059 $180,205 $56,423 $B1,369) $219,206 $173,488 proberyiaqapment 62,160) SOAR) E4200) 148,540) 170.951) GI 4) Free cash flow $4s09 <G00810 O17 87) GOIN) GEE _—_— IE LBO) Adjustments: Draws (payments) on f
Slide 23: February 12, 2014 expect more.
February 12, 2014 expect more.
Slide 24: Appendix
Appendix This presentation contains certain Non-GAAP financial measures as defined under SEC rules, such as Absorption Retio, Adjusted EBITDA, Adjusted EBIT, Aduusted EBIT Margin, Adjusted Net Income, Adjusted EPS, Adjusted Total Debt, Adjusted Net Debt, Invested Capital, Adjusted Return on Invested
Slide 25: Reconciliation adjusted EBITDA and EBIT
Appendix Reconciliation adjusted EBITDA and EBIT $n thousand 20082009 2010 2m 2012 2013 Adjusted Net Income” $5178 M25 SUNSBT 855213 RASH ZT Froriia fer $3864 6,003) ST1,737 $34964 $3872 $3647 Interest expense 720 605 85,5683 A TC TS Devreeliden and 15273 $15890 $15,720 $20 p84 $5016 $29,825 foe ye)
Slide 26: Reconciliation Adjusted Net Income and EPS
Appendix Reconciliation Adjusted Net Income and EPS Ey 2009 En) 2011 m2 mia Net Income 2Be5 $5.84 31 282 955213 s62485 840217 Adjustments ee e719 GNC franchise termination, netoftax $1,830 'W. Marvin Rush retirement payment acerual, net of ax. conte Adjusted Net Income* S516 6905045 5213 S55 95577 D
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