Rush Enterprises, Inc. · NASDAQ:RUSHA
Rush Enterprises — Rush Enterprises Inc \tx\ — Investor Presentation (August 2021)
26 slides from Rush Enterprises's investor presentation, Aug 26, 2021
Slide 1: Rush Enterprises August 2021
Slide 2: Disclosure/Safe Harbor
DISCLOSURE/SAFE HARBOR 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 + Ful-service solutions provider to commercial vehicle industry + 6,330 dedicated employees + $4.78 in revenue in 2020 + 30,513 trucks sold in 2020 + 5.5% U.S. Class 8 market share in 2020 + 4.9% U.S. Class 4-7 market share in 2020 Aftermarket revenues account for 66.7% of company g
Slide 4: Company at a Glance
COMPANY AT A GLANCE Rush Truck Centers Rush Truck Leasing Rush Refuse Rush Truck Insurance Rush Crane Systems House of Trucks Rush Towing Systems Momentum Fuel Technologies Rush Bus Centers Custom Vehicle Solutions Perfection Truck Parts & Equipment Chrome Country World Wide Tires expect more.
Slide 5: Economic Outlook and Commercial Vehicle Market
ECONOMIC OUTLOOK AND COMMERCIAL VEHICLE MARKET * General economic industry conditions remain strong — Consumer spending, general economy expected to remain strong ~ Supply chain issues impacting new commercial vehicle and parts availablity in 2021 ¢ ~ Truck demand is strong, and manufacturers are ad
Slide 6: Liquidity and Expense Management
LIQUIDITY AND EXPENSE MANAGEMENT + Strong free cash flow; $315.9M in cash as of June 2021 $100M line of credit, no outstanding draws * Continuing to invest in strategic initiatives Authorized $100M share repurchase program in December 2020 and increased dividend in Q1 2021 and Q3 2021 * Disciplined
Slide 7: U.S. Retail Truck Sales Projections to 2025
U.S. RETAIL TRUCK SALES PROJECTIONS TO 2025 300 250 200 Was 3 150 2 100 5 50 2011 2012 2013 2014 «2015 2016 2017 2018 2019 2020 2021E 2022E 2023E 2024E 2025E class | 174 488 | 224 | 253 | 197 | 197 24 | 261 | 187 | 236 Class 47 | 146 | 164 | 180 | 200 | 218 | 226 232 | 258 | 264 | 276 | 253 | Source
Slide 8: Strategic Growth Initiatives
STRATEGIC GROWTH INITIATIVES + Financial goals = $78 in annual revenue — 5% pre-tax profit margin * Growth goals and opportunities Grow parts revenue to $28 Grow service and colision center revenue to $600M Increase U.S. Class 8 market share to 7.5% Increase U.S. Class 4-7 market share to 6.5% Incre
Slide 9: Rush Truck Centers
RUSH TRUCK CENTERS + Largest commercial vehicle dealer group in North America * 119 locations in 22 states + 50% ownership of Rush Truck Centres of Canada, 14 Intemational locations in Ontario * Class 3-8 commercial vehicle sales, full range of aftermarket solutions + Broad market segment coverage +
Slide 10: Rush Truck Centers Network
Slide 11: Solutions Network
SOLUTIONS NETWORK * Capabilities for all makes and models + Aftermarket parts ~ Over $200M parts inventory ~ Genuine OEM and all: makes parts including proprietary Rig Tough and Premium Power powertrain parts * Service and body shop — 2,398 service bays, 2,194 technicians; 26 colision centers — 612
Slide 12: Technology and Customer Service Innovation
TECHNOLOGY AND CUSTOMER SERVICE INNOVATION + RushCare Parts Connect + RushCare Service Connect + RushCare Telematics Solutions — Custom fault code monitoring system — OEM/component supplier support + RushCare Rapid Parts and Rapid Service call centers + Nationwide call center and dedicated service c
Slide 13: Absorption Performance
ABSORPTION PERFORMANCE * Critical metric for dealership efficiency ‘ABSORPTION RATIO® rd 130% + Measures less cyclical gross profit 11385 compared to controllable expenses Pare * 118.7% overall in 2020 * 125.9% YTD Q2 2021 12% 95 16% 90% 70% ove 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Slide 14: Quality of Earnings 2020
QUALITY OF EARNINGS 2020 Lease, RentaliFinance, InsurancelOther —| 8% ~ Lease, RentaliFinance, Insurance/Other 6% Parts and Service 61%
Slide 15: Rush Enterprises Annual Truck Sales
RUSH ENTERPRISES ANNUAL TRUCK SALES 50 40 a 5 5. 3 30 168 146 150 & 108 130 107 13 > 20 129 144 n2 14 109 13 113 10 oe | 2015 2016 2017 2018 2019 2020 20216 expect Used Lightly Medium-duty Cass 8 more.
Slide 16: Vehicle Franchises
VEHICLE FRANCHISES Peterbilt, Class 6-8 - 62 locations, 11 states [ Asccr) + International, Class 5-8 - 42 locations, 9 states, ‘50% ownership of 14 locations in Canada + Ford, Class 3-7 ~ 9 locations, 7 states o B Ez © iS) + Hino, Class 5-7 ~ 33 locations, 9 states BLUEBIRD. + Isuzu, Class 4-5 - 26
Slide 17: Class 8 Customers
CLASS 8 CUSTOMERS + Rush Enterprises 2020 U.S. Class 8 market share - 5.5% Strong vocational component * Large fleets consolidating + Private mid-size fleets remain viable * Independent owner-operator now variable component of truckload carrier Fedx. Walmart: UneL dh. wu WYEREEE — Qoswos GET Mena CA
Slide 18: Class 4-7 Customers
CLASS 4-7 CUSTOMERS + Rush Enterprises 2020 U.S. Class 4-7 market share - 4.9% Vocational and specialty markets + Ready-to-Roll any ff + National fleet accounts * Market tied closely to general economy expect more.
Slide 19: Rush Truck Leasing
RUSH TRUCK LEASING + Fullservice leasing and rental LEASING AND RENTAL REVENUE + Lease trucks captive source for $300 parts and service revenue 20 3298 S248__gyqq $248 + PacLease and Idealease franchises me 27 44 locations including 4 captive shops 8,018 units in truck fleet, including cranes 1,481
Slide 20: Historical Results
HISTORICAL RESULTS expect more.
Slide 21: Adjusted Return on Invested Capital
ADJUSTED RETURN ON INVESTED CAPITAL Total debt (GAAP) $1473.20 $1693906 «$1716 = S.N5B553—«$1417636 1.040860 dsments | cues (9598512) (8589933) ($661,191) —($601272)—(883SHS) ($565 856) Floor plan notes payable (877856!) ($1,023019) ($996,336) ($511,786) ($724,346) ($470 877) ‘Ads tal debt $95,157 $
Slide 22: Free Cash Flow
FREE CASH FLOW expect more.
Slide 23: Free Cash Flow
Slide 24: 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 25: Appendix Reconciliation Adjusted Net Income and EPS
APPENDIX RECONCILIATION Adjusted Net Income and EPS expect more.
Slide 26: Appendix Reconciliation
APPENDIX RECONCILIATION Netincome ‘Adjusted Netncome™ Prowson for nome Taxes trees expense Depreciation and amorzaton ‘Asset inpaimentharge, nef ax (Gain) Lossonsalescf assets TOA ‘dusmens henge or Adjusted EBITDA Depreiaton and amorzaon ‘Adjusted EBT" "Neo GAAP focal messi $172,129 ‘$139,062 $141,5
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