Rush Enterprises, Inc. · NASDAQ:RUSHA
Rush Enterprises — Rush Enterprises Inc \tx\ — Investor Presentation (August 2019)
25 slides from Rush Enterprises's investor presentation, Aug 9, 2019
Slide 1: Rush Enterprises – August 2019
Slide 2: Disclosure/Safe Harbor
Disclosure/Safe Harbor This presentation may contain forward-looking statements (as defined in the Private Securities Litigation Reform Act 199). Any forward-looking statements are based on current expectations with respect to important risk factors. tis important to note that our actual results cou
Slide 3: Company Overview
7 Company Overview + Full service solutions provider to commercial vehicle industry a + 7,518 dedicated employees + $5.5 billion in revenue in 2018 + 37,797 trucks sold in 2018 * 5.7% U.S. Class 8 market share in 2018 * 5.0% U.S. Class 4-7 market share in 2018 * Dual class structure + Initiated firs
Slide 4: Rush Truck Centers
Rush Truck Centers. Rush Refuse Systems Rush Crane Systems Rush Towing Systems Rush Bus Centers Rush Truck Leasing Rush Truck Insurance Perfection Truck Parts & Equipment Rig Tough Truck Parts House of Trucks Momentum Fuel Technologies. Custom Vehicle Solutions Chrome Country World Wide Tires
Slide 5: Commercial Vehicle Market
Commercial Vehicle Market + Healthy economy positively impacting truck sales and aftermarket services + Aftermarket parts and service activity remains healthy Q3 Class 8 truck deliveries should remain strong + Market conditions and industry indicators could impact Class 8 truck sales in Q4 and 2020
Slide 6: U.S. Retail Truck Sales
U.S. Retail Truck Sales @Class8 @ Class 4-7 nN 3 2 2 Se 2 Ss 2011 2012-2013 2014-2015 2046 = «2017-2018 «2019E°--2020E--2021E 174 199 188 224 253 197 | 197 256 275 204 212 146 164 180 200 218 226 | 226 258 262 245, 239
Slide 7: Strategic Growth Initiatives
j y Strategic Growth Initiatives + 2022 financial goals — $7.0 billion in annual revenue — 5% pretax profit margin * Growth goals and opportunities Grow parts revenue to $2 billion Grow service and body shop revenue to $600 million Increase U.S. Class 8 market share to 7.5% Increase U.S. Class 4-7 m
Slide 8: Rush Truck Centers
ff Rush Truck Centers + Largest commercial vehicle dealer group in North America + More than 120 locations in 22 states + 50% ownership of Rush Truck Centres of Canada, 14 International locations in Ontario * Class 3-8 truck sales, full range of aftermarket solutions + Broad market segment coverage
Slide 9: Dealership Locations Map
> Peterbit Dealerships Intemational Dealerships IndependentParts and Senice Locations © Rush Truck Cente
Slide 10: Solutions Network
Solutions Network + Capabilities for all makes and models + Aftermarket parts = More than $278 million parts inventory ~ Genuine OEM and all-makes parts including proprietary Rig Tough and Premium Power powertrain parts — RushCare Rapid Parts Call Centers — RushCare Parts Connect online parts orderi
Slide 11: Technology Innovation
’ Technology Innovation RushCare Parts Connect RushCare Service Connect RushCare Telematics Solutions - Custom fault code monitoring system = OEM/component supplier support RushCare Complete call center and customer support team Parts sales analytics to drive efficiencies for customers and increase
Slide 12: Absorption Performance
Absorption Performance * Critical metric for dealership efficiency * Measures less cyclical gross profit compared to controllable expenses + Above 95% in recession due to efficient expense management + Entered up cycle at 106% + 122% overallin 2018 ABSORPTION RATIO*
Slide 13: Quality of Earnings
Quality of Earnings 100% 19% 80% 60% 2006 2009 f 2018 Class 8 Units 290,000 97,000 255,000 2018GP Margin Truck Sales 7.8% | Parts/Service 37.1% | Rental and Leasing 17.2% sTruckSales —™ Leasing& Rental === Other
Slide 14: Rush Annual Truck Sales
Rush Annual Truck Sales 3 £ = 2 5 Light-duty = Medium-duty
Slide 15: Vehicle Franchises
EP Vehicle Franchises Peterbilt, Class 6-8 - 59 locations, 11 states International, Class 5-8 - 45 locations, 9 states, 50% ownership of 14 locations in Canada Ford, Class 3-7 - 9 locations, 7 states Hino, Class 5-7 - 32 locations, 9 states Isuzu, Class 4-5 - 26 locations, 9 states Mitsubishi Fuso,
Slide 16: Class 8 Fleet Type Customers
Fleet Type 7 Class 8 Customers + Rush Enterprises 2018 U.S. Class 8 market share — 5.7% * Strong vocational component + Large fleets consolidating + Private mid-size fleets remain viable + Independent owner-operator now variable component of truckload carrier Owner Operator ) scmmcm} Walmart>|< "\MA
Slide 17: Class 4-7 Customers
’ Class 4-7 Customers + Rush Enterprises 2018 U.S. Class 4-7 market share — 5.0% + Vocational and specialty markets + Ready-to-Rolls” + National fleet accounts + Market tied closely to general economy Customer Type
Slide 18: Rush Truck Leasing
Rush Truck Leasing + Full service leasing and rental + Lease trucks captive source for parts and service revenue + PacLease and Idealease franchises + 45 locations including 4 captive shops + 8,310 units in truck fleet, 1,143 units under contract maintenance + Growing need by customers for outsource
Slide 19: Historical Results
Historical Results $in Millions, except Revenue | 942146 Grossprott $7180 Gross proft margin % 170% ‘Adjusted EBIT(1)° $760 Adjusted EBIT margin* E 18% Netincome $406 Adjusted netincome(1)" 6. $460 EPS $1.00 Adjusted EPS (1)" $113
Slide 20: Adjusted Return on Invested Capital
Adjusted Return on Invested Capital $in Thousands e001 | 613072019 Total debi 31506278 | sia3sae | $1473.20 | s193a06 | $1533163 | $2025.59 Adjusments Pabtteidedioeaseandrental | eéo3eqq) | 579819) | ($598512) | ($589,933) | ($579.434) | (9638.513) Floorplan noes payable (254758) | (9646945) | (978,
Slide 21: Free Cash Flow
Free Cash Flow $in Thousands Nat cash rovdedy (used prenong maetty (ede) $227,250 $621,170 $152,737 $215,364 e Mor ($6562) ‘Acquistion of properyequipment ($367,790) ($196 965) (209817) ($238 260) (2.15) Freecash tow" ($140,540) $324,205 ($57,180) ($22,896) ($24,565) ($2167) Adjustments: Draws (paym
Slide 22: Rush Enterprises – August 2019
ENTERPRISES: August 2019
Slide 23: 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 Return on Invested Capital,
Slide 24: Appendix Reconciliation Adjusted Net Income and EPS
Appendix Reconciliation Adjusted Net Income and EPS usands, excep ae ; F Six Months per share amounts Z z z : inded 6/3012 NetIncome 366053 | s40.5a2 | $172,129 | s139062 | $50,428 $78,725 Agustments Resrucuring charges, netoftax $5425 ERP platorm wete-of, net of tax $15,886 $15,682 Revaluation of d
Slide 25: Appendix Reconciliation
Appendix Reconciliation Netcom 10582 sim.0 $50,028 S787 ‘ales Net come r $6007 $1657 ; 0 s7a75 Proisionterineome Taxes 9372 $47 102 16587 25283 Tres expense 14278 312310 $8,600 316480 Doprcion an amotzaion $1261 $0,059 14001 szasi0 [Assalinpatmerichage, eto (S15 682) (Ga) Loss on ses asses sua (S175
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