Rush Enterprises, Inc. · NASDAQ:RUSHA
Rush Enterprises — Rush Enterprises Inc \tx\ — Investor Presentation (March 2021)
26 slides from Rush Enterprises's investor presentation, Mar 24, 2021
Slide 1: Rush Enterprises March 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 + Full-service solutions provider to commercial vehicle industry + 6,282 dedicated employees + $4.7B 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 compan
Slide 4: 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 Leasing Rush Truck Insurance House of Trucks Momentum Fuel Technologies Custom Vehicle Solutions Perfection Truck Parts & Equipment Chrome Country World Wide Tires expect mor
Slide 5: Economic Outlook and Commercial Vehicle Market
ECONOMIC OUTLOOK AND COMMERCIAL VEHICLE MARKET Continued uncertainty due to COVID-19, but general economic industry conditions have improved — Housing, automotive, consumer spending =a expected to remain strong { ~ Truck manufacturers increasing capacity ~ Supply chain issues may impact truck and pa
Slide 6: Liquidity and Expense Management
LIQUIDITY AND EXPENSE MANAGEMENT * Strong free cash flow; $312.0M in cash as of December 2020 * $100M line of credit, no outstanding draws * Continuing to invest in strategic initiatives * Authorized $100M share repurchase program and increased dividend + Rapidly implemented broad expense reduction
Slide 7: U.S. Retail Truck Sales Projections to 2025
U.S. RETAIL TRUCK SALES PROJECTIONS TO 2025 300 250 200 i 150 100 50 0 Units (Thousands) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022E 2023E 2024E 2025E 249 | 278 | 262 | 186 | 2 Class 47 | 146 480 | 200 | 218 | 226 | 242 | 258 | 267 | 232 | 250 | 257 | 274 | 251 expect Source: ACT Re
Slide 8: Strategic Growth Initiatives
STRATEGIC GROWTH INITIATIVES + Financial goals ~ $7B in annual revenue ~ 5% pre-tax profit margin * Growth goals and opportunities — Growparts revenue to $28 Grow service and colision center revenue to $600M Increase U.S. Class 8 market share to 7.5% Increase US. 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 * 118 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 inv — Genuine OEM and all-makes parts including proprietary Rig Tough and Premium Power powertrain parts * Service and body shop — 2379 service bays, 2,156 technicians; 26 collision centers ~ 487 mobile
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 + Measures less cyclical gross profit compared to controllable expenses + 118.7% overall in 2020 * 132.9% in Q4 2020 130% 90% 10% ABSORPTION RATIO" a1 12% 8 320% soe 188 188% 1956 ME sas, 123 2000 2010 2011 2012 2013 2014 2045 7016 z
Slide 14: Quality of Earnings 2020
QUALITY OF EARNINGS 2020 Lease, Rental/Financé Insurance/Other 8% Parts and Service ~. Lease, RentalFinance, 67% Insurance/Other 6%
Slide 15: Rush Enterprises Annual Truck Sales
RUSH ENTERPRISES ANNUAL TRUCK SALES Units (Thousands) 50 40 30 20 10 108 aay : 2016 2017 a 2019 2020 Used Light-duty m Medium-duty Class 8 20216 expect more.
Slide 16: Vehicle Franchises
VEHICLE FRANCHISES Peterbilt, Class 6-8 - 62 locations, 11 states * International, Class 5-8 ~ 42 locations, 9 states, ‘50% ownership of 14 locations in Canada + Ford, Class 3-7 - 9 locations, 7 states + Hino, Class 5-7 - 33 locations, 9 states * Isuzu, Class 4-5 - 26 locations, 9 states. * Blue Bir
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 ann Fors + Private mid-size fleets remain viable Independent owner-operator now variable component of truckload carrier FedEx, Walmart: UNFL fe =| WM WEMER — Qoomece Gena
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-Roll2 oe ve * National fleet accounts y * Market tied closely to general economy ‘ 4.9% TRUGREEN YERRDAN Southweste expect more.
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 + 44 locations including 4 captive shops * 8,104 units in truck fleet, including cranes * 1,407 units under contract fleet maintenance * Growing need b
Slide 20: Historical Results
HISTORICAL RESULTS expect more.
Slide 21: Adjusted Return on Invested Capital
ADJUSTED RETURN ON INVESTED CAPITAL Tl debt (GAAP) $1:335,441 ‘Adjusments: Pedic blases (5579819) ‘Floorplan notes payable ($646,945) ‘Adjusted etal debt 108677 ‘Cash andcashequiaens| (582028) ‘Adjusted net (cash debt $25,651 ‘Shareholders equiy $662 805 ‘Adjusted vested cata” $889,476 ‘Adjusted rem
Slide 22: Free Cash Flow
FREE CASH FLOW expect more.
Slide 23: Slide 23
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 Adjusted EBITDA and EBIT
APPENDIX RECONCILIATION Adjusted EBITDA and EBIT 206 20 2019 2020 Net ncome 40582 $172,129 $198,062 $141,583 114987 ‘Adjusted Net income™ 46007 $9267 S54 sH8 STS Sid g87 Provsion fo inoome Taxes $2972 $47,132 $44,107 s47940 $5936 trierest expense 14279 $12310 19682 $28.807 $9014 Depreciation and amo
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