Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 31, 2020 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0001012019 | |
Entity Registrant Name | RUSH ENTERPRISES INC \TX\ | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2020 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 0-20797 | |
Entity Incorporation, State or Country Code | TX | |
Entity Tax Identification Number | 74-1733016 | |
Entity Address, Address Line One | 555 I.H. 35 South, Suite 500 | |
Entity Address, City or Town | New Braunfels | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 78130 | |
City Area Code | 830 | |
Local Phone Number | 302-5200 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Common Class B [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 8,408,897 | |
Title of 12(b) Security | Class B Common Stock, $0.01 par value | |
Trading Symbol | RUSHB | |
Security Exchange Name | NASDAQ | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 27,989,698 | |
Title of 12(b) Security | Class A Common Stock, $0.01 par value | |
Trading Symbol | RUSHA | |
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 215,556 | $ 181,620 |
Accounts receivable (less allowances for credit losses of $1,312 and $1,424, respectively) | 162,677 | 183,704 |
Inventories, net | 1,004,624 | 1,326,080 |
Prepaid expenses and other | 15,482 | 20,728 |
Assets held for sale | 0 | 419 |
Total current assets | 1,398,339 | 1,712,551 |
Property and equipment, net | 1,251,876 | 1,279,931 |
Operating lease right-of-use assets, net | 57,266 | 57,197 |
Goodwill, net | 292,142 | 292,142 |
Other assets, net | 64,978 | 65,508 |
Total assets | 3,064,601 | 3,407,329 |
Current liabilities: | ||
Floor plan notes payable | 724,946 | 996,336 |
Current maturities of long-term debt | 177,742 | 189,265 |
Current maturities of finance lease obligations | 24,223 | 22,892 |
Current maturities of operating lease obligations | 9,939 | 10,114 |
Trade accounts payable | 98,011 | 133,697 |
Customer deposits | 17,609 | 42,695 |
Accrued expenses | 111,183 | 112,390 |
Total current liabilities | 1,163,653 | 1,507,389 |
Long-term debt, net of current maturities | 408,580 | 438,413 |
Finance lease obligations, net of current maturities | 82,145 | 69,478 |
Operating lease obligations, net of current maturities | 47,922 | 47,555 |
Other long-term liabilities | 21,881 | 20,704 |
Deferred income taxes, net | 153,860 | 164,297 |
Shareholders’ equity: | ||
Preferred stock, par value $.01 per share; 1,000,000 shares authorized; 0 shares outstanding in 2020 and 2019 | 0 | 0 |
Common stock, par value $.01 per share; 60,000,000 Class A shares and 20,000,000 Class B shares authorized; 27,728,493 Class A shares and 8,410,440 Class B shares outstanding in 2020; and 27,953,648 Class A shares and 8,240,486 Class B shares outstanding in 2019 | 471 | 465 |
Additional paid-in capital | 414,812 | 397,267 |
Treasury stock, at cost: 5,610,906 Class A shares and 5,360,832 Class B shares in 2020 and 5,055,783 Class A shares and 5,306,341 Class B shares in 2019 | (324,031) | (304,129) |
Retained earnings | 1,095,976 | 1,065,553 |
Accumulated other comprehensive (loss) income | (668) | 337 |
Total shareholders’ equity | 1,186,560 | 1,159,493 |
Total liabilities and shareholders’ equity | $ 3,064,601 | $ 3,407,329 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Allowances for credit losses | $ 1,312 | $ 1,424 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Class A [Member] | ||
Common stock, authorized (in shares) | 60,000,000 | 60,000,000 |
Common stock, outstanding (in shares) | 27,728,493 | 27,953,648 |
Treasury stock (in shares) | 5,610,906 | 5,055,783 |
Common Class B [Member] | ||
Common stock, authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, outstanding (in shares) | 8,410,440 | 8,240,486 |
Treasury stock (in shares) | 5,360,832 | 5,306,341 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues | ||||
Revenue | $ 945,222 | $ 1,482,970 | $ 2,171,104 | $ 2,771,854 |
Lease and rental sales | 57,290 | 61,591 | 118,071 | 121,024 |
Total revenue | 1,002,512 | 1,544,561 | 2,289,175 | 2,892,878 |
Cost of products sold | ||||
Lease and rental sales | 51,491 | 51,298 | 103,699 | 101,093 |
Total cost of products sold | 810,181 | 1,275,055 | 1,862,343 | 2,366,456 |
Gross profit | 192,331 | 269,506 | 426,832 | 526,422 |
Selling, general and administrative expense | 156,195 | 193,981 | 341,269 | 381,162 |
Depreciation and amortization expense | 14,516 | 13,594 | 28,846 | 26,519 |
Gain (loss) on sale of assets | 1,381 | (139) | 1,481 | (82) |
Operating income | 23,001 | 61,792 | 58,198 | 118,659 |
Other income | 1,720 | 690 | 2,961 | 739 |
Interest expense, net | 2,209 | 8,072 | 6,978 | 15,430 |
Income before taxes | 22,512 | 54,410 | 54,181 | 103,968 |
Income tax provision | 5,696 | 12,789 | 14,258 | 25,243 |
Net income | $ 16,816 | $ 41,621 | $ 39,923 | $ 78,725 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 0.46 | $ 1.13 | $ 1.10 | $ 2.14 |
Diluted (in dollars per share) | $ 0.46 | $ 1.10 | $ 1.08 | $ 2.08 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 36,291 | 36,852 | 36,387 | 36,847 |
Diluted (in shares) | 36,900 | 37,695 | 37,113 | 37,764 |
Dividends declared per common share (in dollars per share) | $ 0.13 | $ 0.12 | $ 0.26 | $ 0.24 |
Comprehensive income | $ 17,741 | $ 41,116 | $ 38,918 | $ 78,604 |
New and Used Commercial Vehicle [Member] | ||||
Revenues | ||||
Revenue | 559,062 | 1,024,801 | 1,348,616 | 1,863,084 |
Cost of products sold | ||||
Cost of products sold | 521,494 | 951,121 | 1,250,033 | 1,719,538 |
Parts and Service [Member] | ||||
Revenues | ||||
Revenue | 377,553 | 448,166 | 805,531 | 886,520 |
Cost of products sold | ||||
Cost of products sold | 237,196 | 272,636 | 508,611 | 545,825 |
Finance and Insurance [Member] | ||||
Revenues | ||||
Revenue | 4,960 | 6,401 | 9,427 | 13,011 |
Product and Service, Other [Member] | ||||
Revenues | ||||
Revenue | $ 3,647 | $ 3,602 | $ 7,530 | $ 9,239 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Class A [Member]Common Stock [Member] | Common Class A [Member]Retained Earnings [Member] | Common Class A [Member] | Common Class B [Member]Common Stock [Member] | Common Class B [Member]Retained Earnings [Member] | Common Class B [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balance (in shares) at Dec. 31, 2018 | 28,710,000 | 8,290,000 | ||||||||||
Balance at Dec. 31, 2018 | $ 458 | $ 370,025 | $ (245,842) | $ 942,287 | $ 0 | $ 1,066,928 | ||||||
Stock options exercised and stock awards (in shares) | 59,000 | 0 | ||||||||||
Stock options exercised and stock awards | 1 | 1,230 | 0 | 0 | 0 | 1,231 | ||||||
Stock-based compensation related to stock options, restricted shares and employee stock purchase plan | 0 | 8,836 | 0 | 0 | 0 | 8,836 | ||||||
Vesting of restricted share awards (in shares) | 0 | 226,000 | ||||||||||
Vesting of restricted share awards | 2 | (2,317) | 0 | 0 | 0 | (2,315) | ||||||
Issuance of common stock under employee stock purchase plan (in shares) | 57,000 | 0 | ||||||||||
Issuance of common stock under employee stock purchase plan | 1 | 1,680 | 0 | 0 | 0 | 1,681 | ||||||
Common stock repurchases (in shares) | (639,000) | (53,000) | ||||||||||
Common stock repurchases | 0 | 0 | (26,048) | 0 | 0 | (26,048) | ||||||
Dividends | $ (3,389) | $ (3,389) | $ (991) | $ (991) | ||||||||
Other comprehensive income | 0 | 0 | 0 | 0 | 384 | 384 | ||||||
Net income | 0 | 0 | 0 | 37,104 | 0 | 37,104 | ||||||
Balance (in shares) at Mar. 31, 2019 | 28,187,000 | 8,463,000 | ||||||||||
Balance at Mar. 31, 2019 | 462 | 379,454 | (271,890) | 975,011 | 384 | 1,083,421 | ||||||
Balance (in shares) at Dec. 31, 2018 | 28,710,000 | 8,290,000 | ||||||||||
Balance at Dec. 31, 2018 | 458 | 370,025 | (245,842) | 942,287 | 0 | 1,066,928 | ||||||
Net income | 78,725 | |||||||||||
Balance (in shares) at Jun. 30, 2019 | 28,023,000 | 8,396,000 | ||||||||||
Balance at Jun. 30, 2019 | 462 | 384,940 | (283,952) | 1,012,195 | (121) | 1,113,524 | ||||||
Balance (in shares) at Mar. 31, 2019 | 28,187,000 | 8,463,000 | ||||||||||
Balance at Mar. 31, 2019 | 462 | 379,454 | (271,890) | 975,011 | 384 | 1,083,421 | ||||||
Stock options exercised and stock awards (in shares) | 87,000 | 0 | ||||||||||
Stock options exercised and stock awards | 0 | 1,745 | 0 | 0 | 0 | 1,745 | ||||||
Stock-based compensation related to stock options, restricted shares and employee stock purchase plan | 0 | 4,258 | 0 | 0 | 0 | 4,258 | ||||||
Vesting of restricted share awards | 0 | (517) | 0 | 0 | 0 | (517) | ||||||
Common stock repurchases (in shares) | (251) | (67) | ||||||||||
Common stock repurchases | 0 | 0 | (12,062) | 0 | 0 | (12,062) | ||||||
Dividends | (3,387) | (3,387) | (1,050) | (1,050) | ||||||||
Other comprehensive income | 0 | 0 | 0 | 0 | (505) | (505) | ||||||
Net income | 0 | 0 | 0 | 41,621 | 0 | 41,621 | ||||||
Balance (in shares) at Jun. 30, 2019 | 28,023,000 | 8,396,000 | ||||||||||
Balance at Jun. 30, 2019 | 462 | 384,940 | (283,952) | 1,012,195 | (121) | 1,113,524 | ||||||
Balance (in shares) at Dec. 31, 2019 | 27,954,000 | 8,240,000 | ||||||||||
Balance at Dec. 31, 2019 | 465 | 397,267 | (304,129) | 1,065,553 | 337 | 1,159,493 | ||||||
Stock options exercised and stock awards (in shares) | 73,000 | 0 | ||||||||||
Stock options exercised and stock awards | 1 | 1,421 | 0 | 0 | 0 | 1,422 | ||||||
Stock-based compensation related to stock options, restricted shares and employee stock purchase plan | 0 | 8,553 | 0 | 0 | 0 | 8,553 | ||||||
Vesting of restricted share awards (in shares) | 0 | 224,000 | ||||||||||
Vesting of restricted share awards | 2 | (2,416) | 0 | 0 | 0 | (2,414) | ||||||
Issuance of common stock under employee stock purchase plan (in shares) | 61,000 | 0 | ||||||||||
Issuance of common stock under employee stock purchase plan | 1 | 1,900 | 0 | 0 | 0 | 1,901 | ||||||
Common stock repurchases (in shares) | (555,000) | (54,000) | ||||||||||
Common stock repurchases | 0 | 0 | (19,902) | 0 | 0 | (19,902) | ||||||
Dividends | (3,646) | (3,646) | (1,108) | (1,108) | ||||||||
Other comprehensive income | 0 | 0 | 0 | 0 | (1,930) | (1,930) | ||||||
Net income | 0 | 0 | 0 | 23,107 | 0 | 23,107 | ||||||
Balance (in shares) at Mar. 31, 2020 | 27,533,000 | 8,410,000 | ||||||||||
Balance at Mar. 31, 2020 | 469 | 406,725 | (324,031) | 1,083,906 | (1,593) | 1,165,476 | ||||||
Balance (in shares) at Dec. 31, 2019 | 27,954,000 | 8,240,000 | ||||||||||
Balance at Dec. 31, 2019 | 465 | 397,267 | (304,129) | 1,065,553 | 337 | 1,159,493 | ||||||
Net income | 39,923 | |||||||||||
Balance (in shares) at Jun. 30, 2020 | 27,728,000 | 8,410,000 | ||||||||||
Balance at Jun. 30, 2020 | 471 | 414,812 | (324,031) | 1,095,976 | (668) | 1,186,560 | ||||||
Balance (in shares) at Mar. 31, 2020 | 27,533,000 | 8,410,000 | ||||||||||
Balance at Mar. 31, 2020 | 469 | 406,725 | (324,031) | 1,083,906 | (1,593) | 1,165,476 | ||||||
Stock options exercised and stock awards (in shares) | 195,000 | 0 | ||||||||||
Stock options exercised and stock awards | 2 | 4,529 | 0 | 0 | 0 | 4,531 | ||||||
Stock-based compensation related to stock options, restricted shares and employee stock purchase plan | 0 | 3,586 | 0 | 0 | 0 | 3,586 | ||||||
Vesting of restricted share awards (in shares) | 0 | 0 | ||||||||||
Vesting of restricted share awards | 0 | (28) | 0 | 0 | 0 | (28) | ||||||
Dividends | $ (3,581) | $ (3,581) | $ (1,165) | $ (1,165) | ||||||||
Other comprehensive income | 0 | 0 | 0 | 0 | 925 | 9,251,681 | ||||||
Net income | 0 | 0 | 0 | 16,816 | 0 | 16,816 | ||||||
Balance (in shares) at Jun. 30, 2020 | 27,728,000 | 8,410,000 | ||||||||||
Balance at Jun. 30, 2020 | $ 471 | $ 414,812 | $ (324,031) | $ 1,095,976 | $ (668) | $ 1,186,560 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 39,923 | $ 78,725 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 89,897 | 84,982 |
Loss (gain) on sale of property and equipment | (1,481) | 82 |
Stock-based compensation expense related to stock options and employee stock purchases | 12,139 | 13,094 |
Deferred income tax expense | (10,437) | 4,901 |
Change in accounts and notes receivable, net | 21,027 | (39,008) |
Change in inventories, net | 358,945 | (136,611) |
Change in prepaid expenses and other, net | 5,246 | (5,297) |
Change in trade accounts payable | (36,147) | 15,717 |
Payments on floor plan notes payable – trade, net | (32,609) | (9,801) |
Change in customer deposits | (25,086) | (7,297) |
Change in accrued expenses | (1,207) | (30,571) |
Other, net | (2,000) | (859) |
Net cash provided by (used in) operating activities | 418,210 | (31,943) |
Cash flows from investing activities: | ||
Acquisition of property and equipment | (82,236) | (153,073) |
Proceeds from the sale of property and equipment | 5,342 | 1,950 |
Business acquisitions | 0 | (10,168) |
Purchase of equity method investment and call option | 0 | (22,499) |
Change in other assets | 2,515 | 2,109 |
Net cash (used in) investing activities | (74,379) | (181,681) |
Cash flows from financing activities: | ||
(Payments) draws on floor plan notes payable – non-trade, net | (238,781) | 176,918 |
Proceeds from long-term debt | 119,348 | 106,083 |
Draws on line of credit | 0 | 135,000 |
Principal payments on long-term debt | (160,704) | (99,982) |
Principal payments on finance lease obligations | (5,768) | (4,358) |
Payments on line of credit | 0 | (75,000) |
Debt issuance costs | 0 | (731) |
Proceeds from issuance of shares relating to employee stock options and employee stock purchases | 5,412 | 1,825 |
Payments of cash dividends | (9,500) | (8,817) |
Common stock repurchased | (19,902) | (37,694) |
Net cash (used in) provided by financing activities | (309,895) | 193,244 |
Net (decrease) increase in cash and cash equivalents | 33,936 | (20,380) |
Cash and cash equivalents, beginning of period | 181,620 | 131,726 |
Cash and cash equivalents, end of period | 215,556 | 111,346 |
Supplemental disclosure of cash flow information: | ||
Interest | 22,559 | 28,573 |
Income taxes, net of refunds | 165 | 33,771 |
Noncash activities: | ||
Assets acquired under finance leases | 26,492 | 15,327 |
Common stock repurchased | 0 | 416 |
Guaranty agreement | $ 0 | $ 5,025 |
Note 1 - Principles of Consolid
Note 1 - Principles of Consolidation and Basis of Presentation | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1 The interim consolidated financial statements included herein have been prepared by Rush Enterprises, Inc. and its subsidiaries (collectively referred to as the “Company”), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). All adjustments have been made to the accompanying interim consolidated financial statements, which, in the opinion of the Company’s management, are necessary for a fair presentation of its operating results. All adjustments are of a normal recurring nature. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. It is recommended that these interim consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10 December 31, 2019. not may Adoption of New Accounting Pronouncements Accounting Standards Update ("ASU") No. 2016 13, Financial Instruments - Credit Losses (“Topic 326” : Measurement of Credit Losses on Financial Instruments , June 2016. 326, 326, 326. 326 January 1, 2020, not 12 COVID- 19 In March 2020, 19 19 19 June 30, 2020. 19 |
Note 2 - Other Assets
Note 2 - Other Assets | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Other Assets Disclosure [Text Block] | 2 ERP Platform The total capitalized costs of the Company’s SAP enterprise resource planning software platform (“the ERP Platform”) of $7.9 million are recorded on the Consolidated Balance Sheet in Other Assets. Amortization expense relating to the ERP Platform, which is recognized in depreciation and amortization expense in the Consolidated Statements of Income and Comprehensive Income, was $0.5 million for the three June 30, 2020 three June 30, 2019, six June 30, 2020 six June 30, 2019. four Franchise Rights The Company’s only significant identifiable intangible assets, other than goodwill, are rights under franchise agreements with manufacturers. The fair value of the franchise right is determined at the acquisition date by discounting the projected cash flows specific to each acquisition. The carrying value of the Company’s manufacturer franchise rights was $7.0 million as of June 30, 2020 December 31, 2019, no not Due to the fact that manufacturer franchise rights are specific to geographic region, the Company has determined that evaluating and including all locations acquired in the geographic region is the appropriate level for purposes of testing franchise rights for impairment. Management reviews indefinite-lived manufacturer franchise rights for impairment annually during the fourth may The significant estimates and assumptions used by management in assessing the recoverability of manufacturer franchise rights include estimated future cash flows, present value discount rate and other factors. Any changes in these estimates or assumptions could result in an impairment charge. The estimates of future cash flows, based on reasonable and supportable assumptions and projections, require management’s subjective judgment. Depending on the assumptions and estimates used, the estimated future cash flows projected in the evaluations of manufacturer franchise rights can vary within a range of outcomes. No impairment write-down was required in the period presented. The Company cannot predict the occurrence of certain events that might adversely affect the reported value of manufacturer franchise rights in the future. Equity Method Investment and Call Option On February 25, 2019, February 25, 2024. June 30, 2020, On April 25, 2019, CAD250 2019, not June 30, 2020 December 31, 2019, June 30, 2020, |
Note 3 - Commitments and Contin
Note 3 - Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 3 – Commitments and Contingencies From time to time, the Company is involved in litigation arising out of its operations in the ordinary course of business. The Company maintains liability insurance, including product liability coverage, in amounts deemed adequate by management. To date, aggregate costs to us for claims, including product liability actions, have not not no no not |
Note 4 - Earnings Per Share
Note 4 - Earnings Per Share | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 4 – Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Numerator: Numerator for basic and diluted earnings per share – Net income available to common shareholders $ 16,816 $ 41,621 $ 39,923 $ 78,725 Denominator– Denominator for basic earnings per share – weighted average shares outstanding 36,291 36,852 36,387 36,847 Effect of dilutive securities– Employee stock options and restricted stock awards 609 843 726 917 Denominator for diluted earnings per share – adjusted weighted average shares outstanding and assumed conversions 36,900 37,695 37,113 37,764 Basic earnings per common share $ 0.46 $ 1.13 $ 1.10 $ 2.14 Diluted earnings per common share and common share equivalents $ 0.46 $ 1.10 $ 1.08 $ 2.08 Options to purchase shares of common stock that were outstanding for the three six June 30, 2020, 2019, not Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Weighted average anti-dilutive options 1,671 1,397 1,433 1,186 |
Note 5 - Stock Options and Rest
Note 5 - Stock Options and Restricted Stock Awards | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | 5 – Stock Options and Restricted S tock Awards Valuation and Expense Information The Company accounts for stock-based compensation in accordance with ASC 718 10, Compensation – Stock Compensation, Stock-based compensation expense, calculated using the Black-Scholes option-pricing model for employee stock options, and included in selling, general and administrative expense, was $3.6 million for the three June 30, 2020, three June 30, 2019. six June 30, 2020, six June 30, 2019, As of June 30, 2020, |
Note 6 - Financial Instruments
Note 6 - Financial Instruments and Fair Value | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 6 The Company measures certain financial assets and liabilities at fair value on a recurring basis. Financial instruments consist primarily of cash, accounts receivable, accounts payable and floor plan notes payable. The carrying values of the Company’s financial instruments approximate fair value due either to their short-term nature or existence of variable interest rates, which approximate market rates. Certain methods and assumptions were used by the Company in estimating the fair value of financial instruments at June 30, 2020, December 31, 2019. The fair value of the Company’s long-term debt is based on secondary market indicators. Because the Company’s debt is not |
Note 7 - Segment Information
Note 7 - Segment Information | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 7 – Segment Information The Company currently has one one not The Company also has revenues attributable to three None The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company evaluates performance based on income before income taxes, not The following table contains summarized information about reportable segment revenues, segment income or loss from continuing operations and segment assets for the periods ended June 30, 2020 2019 Truck All Other Total As of and for the three months ended June 30, 20 20 Revenues from external customers $ 998,739 $ 3,773 $ 1,002,512 Segment operating income 22,678 323 23,001 Segment income before taxes 22,260 252 22,512 Segment assets 3,021,241 43,360 3,064,601 For the six months ended June 30, 20 20 Revenues from external customers $ 2,282,118 $ 7,057 $ 2,289,175 Segment operating income 58,129 69 58,198 Segment income before taxes 54,253 (72 ) 54,181 As of and for the three months ended June 30, 201 9 Revenues from external customers $ 1,540,237 $ 4,324 $ 1,544,561 Segment operating income 61,579 213 61,792 Segment income before taxes 54,269 141 54,410 Segment assets 3,490,254 40,441 3,530,695 For the six months ended June 30, 201 9 Revenues from external customers $ 2,884,686 $ 8,192 $ 2,892,878 Segment operating income 118,321 338 118,659 Segment income before taxes 103,774 194 103,968 |
Note 8 - Income Taxes
Note 8 - Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 8 The Company had unrecognized income tax benefits totaling $3.0 million as a component of accrued liabilities as of June 30, 2020 December 31, 2019, may June 30, 2020 December 31, 2019. The Company does not 12 June 30, 2020, December 31, 2016 2019 December 31, 2015 2019 Coronavirus Aid, Relief, and Economic Security Act (the CARES Act) In response to the COVID- 19 March 27, 2020, June 30, 2020, no may |
Note 9 - Revenue
Note 9 - Revenue | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 9 Revenue The Company’s revenues are primarily generated from the sale of finished products to customers. Those sales predominantly contain a single delivery element and revenue for such sales is recognized when the customer obtains control, which is typically when the finished product is delivered to the customer. The Company’s material revenue streams have been identified as the following: the sale of new and used commercial vehicles, arrangement of associated commercial vehicle financing and insurance contracts, the performance of commercial vehicle repair services and the sale of commercial vehicle parts. Taxes collected from customers relating to product sales and remitted to governmental authorities are excluded from revenues. The following table summarizes the Company’s disaggregated revenue by revenue source for the three six June 30, 2020 2019 Three Months Ended Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Commercial vehicle sales revenue $ 559,062 $ 1,024,801 $ 1,348,616 $ 1,863,084 Parts revenue 211,804 254,664 448,402 501,981 Commercial vehicle repair service revenue 165,749 193,502 357,129 384,539 Finance revenue 2,523 3,558 4,879 7,653 Insurance revenue 2,437 2,843 4,548 5,358 Other revenue 3,647 3,602 7,530 9,239 Total $ 945,222 $ 1,482,970 $ 2,171,104 $ 2,771,854 All of the Company's performance obligations are generally transferred to customers at a point in time. The Company does not June 30, 2020 December 31, 2019. |
Note 10 - Leases
Note 10 - Leases | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Leases of Lessee and Lessor Disclosure [Text Block] | 1 0 – Leases Lease of Vehicles as Lessor The Company leases commercial vehicles to customers primarily over periods of one ten not The Company’s policy is to depreciate its lease fleet using a straight-line method over each customer’s contractual lease term. The lease unit is depreciated to a residual value that approximates fair value at the expiration of the lease term. This policy results in the Company realizing reasonable gross margins while the unit is in service and a corresponding gain or loss on sale when the unit is sold at the end of the lease term. Sales-type leases are recognized by the Company as lease receivables. The lessee obtains control of the underlying asset and the Company recognizes sales revenue upon lease commencement. The receivable for sales-type leases as of June 30, 2020 December 31, 2019, Rental income during the three six June 30, 2020 June 30, 2019 Three Months Ended Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Minimum rental payments $ 50,195 $ 53,585 $ 103,368 $ 105,327 Nonlease payments 7,095 8,006 14,703 15,697 Total $ 57,290 $ 61,591 $ 118,071 $ 121,024 |
Note 11 - Accumulated Other Com
Note 11 - Accumulated Other Comprehensive (Loss) Income | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | 1 1 – Accumulated Other Comprehensive (Loss) Income The following table shows the components of accumulated other comprehensive (loss) income (in thousands): Balance as of December 31, 2019 $ 337 Foreign currency translation adjustment (1,930 ) Balance as of March 31, 2020 $ (1,593 ) Foreign currency translation adjustment 925 Balance as of June 30, 2020 $ (668 ) The equity method investment in RTC Canada was valued using the exchange rate of one June 30, 2020. |
Note 12 - Accounts Receivable a
Note 12 - Accounts Receivable and Allowance for Credit Losses | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 1 2 – Accounts Receivable and Allowance for Credit Losses The Company adopted Topic 326 January 1, 2020. not not 326, Accounts receivable consists primarily of commercial vehicle sales, manufacturers’ receivables, leasing and parts and service receivables and other trade receivables. The Company maintains an allowance for credit losses based on the probability of default, its historical rate of losses, aging and current economic conditions. The Company’s assessment of future losses in the first six 2020 19 The following table summarizes the changes in the allowance for credit losses (in thousands): Balance December 31, Provision for Write offs Balance June 30, 2020 Commercial vehicle receivables $ 11 $ 95 $ – $ 106 Manufacturers’ receivables 410 576 (809 ) 177 Leasing, parts and service receivables 989 543 (583 ) 949 Other receivables 14 73 (7 ) 80 Total $ 1,424 $ 1,287 $ (1,399 ) $ 1,312 |
Note 4 - Earnings Per Share (Ta
Note 4 - Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Numerator: Numerator for basic and diluted earnings per share – Net income available to common shareholders $ 16,816 $ 41,621 $ 39,923 $ 78,725 Denominator– Denominator for basic earnings per share – weighted average shares outstanding 36,291 36,852 36,387 36,847 Effect of dilutive securities– Employee stock options and restricted stock awards 609 843 726 917 Denominator for diluted earnings per share – adjusted weighted average shares outstanding and assumed conversions 36,900 37,695 37,113 37,764 Basic earnings per common share $ 0.46 $ 1.13 $ 1.10 $ 2.14 Diluted earnings per common share and common share equivalents $ 0.46 $ 1.10 $ 1.08 $ 2.08 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Weighted average anti-dilutive options 1,671 1,397 1,433 1,186 |
Note 7 - Segment Information (T
Note 7 - Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Truck All Other Total As of and for the three months ended June 30, 20 20 Revenues from external customers $ 998,739 $ 3,773 $ 1,002,512 Segment operating income 22,678 323 23,001 Segment income before taxes 22,260 252 22,512 Segment assets 3,021,241 43,360 3,064,601 For the six months ended June 30, 20 20 Revenues from external customers $ 2,282,118 $ 7,057 $ 2,289,175 Segment operating income 58,129 69 58,198 Segment income before taxes 54,253 (72 ) 54,181 As of and for the three months ended June 30, 201 9 Revenues from external customers $ 1,540,237 $ 4,324 $ 1,544,561 Segment operating income 61,579 213 61,792 Segment income before taxes 54,269 141 54,410 Segment assets 3,490,254 40,441 3,530,695 For the six months ended June 30, 201 9 Revenues from external customers $ 2,884,686 $ 8,192 $ 2,892,878 Segment operating income 118,321 338 118,659 Segment income before taxes 103,774 194 103,968 |
Note 9 - Revenue (Tables)
Note 9 - Revenue (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Commercial vehicle sales revenue $ 559,062 $ 1,024,801 $ 1,348,616 $ 1,863,084 Parts revenue 211,804 254,664 448,402 501,981 Commercial vehicle repair service revenue 165,749 193,502 357,129 384,539 Finance revenue 2,523 3,558 4,879 7,653 Insurance revenue 2,437 2,843 4,548 5,358 Other revenue 3,647 3,602 7,530 9,239 Total $ 945,222 $ 1,482,970 $ 2,171,104 $ 2,771,854 |
Note 10 - Leases (Tables)
Note 10 - Leases (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Leases, Lease Income [Table Text Block] | Three Months Ended Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Minimum rental payments $ 50,195 $ 53,585 $ 103,368 $ 105,327 Nonlease payments 7,095 8,006 14,703 15,697 Total $ 57,290 $ 61,591 $ 118,071 $ 121,024 |
Note 11 - Accumulated Other C_2
Note 11 - Accumulated Other Comprehensive (Loss) Income (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Balance as of December 31, 2019 $ 337 Foreign currency translation adjustment (1,930 ) Balance as of March 31, 2020 $ (1,593 ) Foreign currency translation adjustment 925 Balance as of June 30, 2020 $ (668 ) |
Note 12 - Accounts Receivable_2
Note 12 - Accounts Receivable and Allowance for Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Financing Receivable, Allowance for Credit Loss [Table Text Block] | Balance December 31, Provision for Write offs Balance June 30, 2020 Commercial vehicle receivables $ 11 $ 95 $ – $ 106 Manufacturers’ receivables 410 576 (809 ) 177 Leasing, parts and service receivables 989 543 (583 ) 949 Other receivables 14 73 (7 ) 80 Total $ 1,424 $ 1,287 $ (1,399 ) $ 1,312 |
Note 2 - Other Assets (Details
Note 2 - Other Assets (Details Textual) $ in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Apr. 25, 2019CAD ($) | Feb. 25, 2019 | |
Capitalized Computer Software, Net, Ending Balance | $ 7,900 | $ 7,900 | |||||
Capitalized Computer Software, Amortization | 500 | $ 500 | 1,000 | $ 1,000 | |||
Indefinite-Lived Franchise Rights | 7,000 | 7,000 | $ 7,000 | ||||
Goodwill and Intangible Asset Impairment, Total | 0 | ||||||
Financial Guarantee [Member] | |||||||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 250 | ||||||
Other Noncurrent Liabilities [Member] | Financial Guarantee [Member] | |||||||
Guarantor Obligations, Current Carrying Value | 4,900 | $ 5,100 | 4,900 | $ 5,100 | |||
Rush Truck Centres of Canada Limited [Member] | |||||||
Equity Method Investment, Ownership Percentage | 50.00% | ||||||
Rush Truck Centres of Canada Limited [Member] | Other Assets [Member] | |||||||
Equity Method Investments | 27,200 | 27,200 | |||||
Rush Truck Centres of Canada Limited [Member] | Call Option [Member] | |||||||
Equity Method Investment, Remaining Ownership Percentage Not Yet Acquired | 50.00% | ||||||
Rush Truck Centres of Canada Limited [Member] | Call Option [Member] | Other Assets [Member] | |||||||
Call Option, Fair Value Disclosure | 3,600 | 3,600 | |||||
Computer Software, Intangible Asset [Member] | |||||||
Finite-Lived Intangible Asset, Expected Amortization, Remainder of Fiscal Year | 1,500 | 1,500 | |||||
Finite-Lived Intangible Asset, Expected Amortization, Year One | 1,200 | 1,200 | |||||
Finite-Lived Intangible Asset, Expected Amortization, Year Two | 1,200 | 1,200 | |||||
Finite-Lived Intangible Asset, Expected Amortization, Year Three | 1,200 | 1,200 | |||||
Finite-Lived Intangible Asset, Expected Amortization, Year Four | $ 1,200 | $ 1,200 |
Note 4 - Earnings Per Share - E
Note 4 - Earnings Per Share - Earnings Per Share Calculation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Numerator for basic and diluted earnings per share – Net income available to common shareholders | $ 16,816 | $ 41,621 | $ 39,923 | $ 78,725 |
Denominator for basic earnings per share – weighted average shares outstanding (in shares) | 36,291 | 36,852 | 36,387 | 36,847 |
Employee stock options and restricted stock awards (in shares) | 609 | 843 | 726 | 917 |
Denominator for diluted earnings per share – adjusted weighted average shares outstanding and assumed conversions (in shares) | 36,900 | 37,695 | 37,113 | 37,764 |
Basic earnings per common share (in dollars per share) | $ 0.46 | $ 1.13 | $ 1.10 | $ 2.14 |
Diluted earnings per common share and common share equivalents (in dollars per share) | $ 0.46 | $ 1.10 | $ 1.08 | $ 2.08 |
Note 4 - Earnings Per Share - A
Note 4 - Earnings Per Share - Anti-dilutive Securities (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Weighted average anti-dilutive options (in shares) | 1,671 | 1,397 | 1,433 | 1,186 |
Note 5 - Stock Options and Re_2
Note 5 - Stock Options and Restricted Stock Awards (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Payment Arrangement, Option [Member] | ||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 10 | $ 10 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 2 years 3 months 18 days | |||
Share-based Payment Arrangement, Option [Member] | Selling, General and Administrative Expenses [Member] | ||||
Share-based Payment Arrangement, Expense | 3.6 | $ 4.3 | $ 12.1 | $ 13.1 |
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 11.6 | $ 11.6 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 1 year 4 months 24 days |
Note 7 - Segment Information (D
Note 7 - Segment Information (Details Textual) | 6 Months Ended |
Jun. 30, 2020 | |
Truck Segment [Member] | |
Number of Reportable Segments | 1 |
Other Segments [Member] | |
Number of Operating Segments | 3 |
Note 7 - Segment Information -
Note 7 - Segment Information - Segment Reporting Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Revenues from external customers | $ 1,002,512 | $ 1,544,561 | $ 2,289,175 | $ 2,892,878 | |
Segment operating income | 23,001 | 61,792 | 58,198 | 118,659 | |
Segment income before taxes | 22,512 | 54,410 | 54,181 | 103,968 | |
Segment assets | 3,064,601 | 3,530,695 | 3,064,601 | 3,530,695 | $ 3,407,329 |
Truck Segment [Member] | |||||
Revenues from external customers | 998,739 | 1,540,237 | 2,282,118 | 2,884,686 | |
Segment operating income | 22,678 | 61,579 | 58,129 | 118,321 | |
Segment income before taxes | 22,260 | 54,269 | 54,253 | 103,774 | |
Segment assets | 3,021,241 | 3,490,254 | 3,021,241 | 3,490,254 | |
Other Segments [Member] | |||||
Revenues from external customers | 3,773 | 4,324 | 7,057 | 8,192 | |
Segment operating income | 323 | 213 | 69 | 338 | |
Segment income before taxes | 252 | 141 | (72) | 194 | |
Segment assets | $ 43,360 | $ 40,441 | $ 43,360 | $ 40,441 |
Note 8 - Income Taxes (Details
Note 8 - Income Taxes (Details Textual) - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 3,000,000 | $ 3,000,000 |
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | 144,000 | 144,000 |
Unrecognized Tax Benefits, Income Tax Penalties Accrued | $ 0 | $ 0 |
Domestic Tax Authority [Member] | ||
Open Tax Year | 2016 2017 2018 2019 | |
State and Local Jurisdiction [Member] | ||
Open Tax Year | 2015 2016 2017 2018 2019 |
Note 9 - Revenue - Disaggregate
Note 9 - Revenue - Disaggregated Revenue by Revenue Source (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenue | $ 945,222 | $ 1,482,970 | $ 2,171,104 | $ 2,771,854 |
Commercial Vehicle [Member] | ||||
Revenue | 559,062 | 1,024,801 | 1,348,616 | 1,863,084 |
Parts [Member] | ||||
Revenue | 211,804 | 254,664 | 448,402 | 501,981 |
Commercial Vehicle Repair Service [Member] | ||||
Revenue | 165,749 | 193,502 | 357,129 | 384,539 |
Financial Service [Member] | ||||
Revenue | 2,523 | 3,558 | 4,879 | 7,653 |
Insurance [Member] | ||||
Revenue | 2,437 | 2,843 | 4,548 | 5,358 |
Product and Service, Other [Member] | ||||
Revenue | $ 3,647 | $ 3,602 | $ 7,530 | $ 9,239 |
Note 10 - Leases (Details Textu
Note 10 - Leases (Details Textual) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Sales-type Lease, Lease Receivable | $ 5.6 | $ 5.6 |
Minimum [Member] | ||
Lessee, Operating Lease, Term of Contract (Year) | 1 year | |
Maximum [Member] | ||
Lessee, Operating Lease, Term of Contract (Year) | 10 years |
Note 10 - Leases - Rental Incom
Note 10 - Leases - Rental Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Minimum rental payments | $ 50,195 | $ 53,585 | $ 103,368 | $ 105,327 |
Nonlease payments | 7,095 | 8,006 | 14,703 | 15,697 |
Total | $ 57,290 | $ 61,591 | $ 118,071 | $ 121,024 |
Note 11 - Accumulated Other C_3
Note 11 - Accumulated Other Comprehensive (Loss) Income (Details Textual) | Jun. 30, 2020 |
Rush Truck Centres of Canada Limited [Member] | |
Foreign Currency Exchange Rate, Translation | 1.3587 |
Note 11 - Accumulated Other C_4
Note 11 - Accumulated Other Comprehensive (Loss) Income - Components of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2020 | Mar. 31, 2020 | |
Balance | $ 1,165,476 | $ 1,159,493 |
Balance | 1,186,560 | 1,165,476 |
AOCI Attributable to Parent [Member] | ||
Balance | (1,593) | 337 |
Foreign currency translation adjustment | 925 | (1,930) |
Balance | $ (668) | $ (1,593) |
Note 12 - Accounts Receivable_3
Note 12 - Accounts Receivable and Allowance for Credit Losses - Allowance for Accounts Receivable (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Balance | $ 1,424 |
Current period provision | 1,287 |
Write offs against allowance, net of recoveries | (1,399) |
Balance | 1,312 |
Write offs against allowance, net of recoveries | (1,399) |
Commercial Vehicle Receivables [Member] | |
Balance | 11 |
Current period provision | 95 |
Write offs against allowance, net of recoveries | 0 |
Balance | 106 |
Write offs against allowance, net of recoveries | 0 |
Manufacturers' Receivables [Member] | |
Balance | 410 |
Current period provision | 576 |
Write offs against allowance, net of recoveries | (809) |
Balance | 177 |
Write offs against allowance, net of recoveries | (809) |
Leasing, Parts and Service Receivables [Member] | |
Balance | 989 |
Current period provision | 543 |
Write offs against allowance, net of recoveries | (583) |
Balance | 949 |
Write offs against allowance, net of recoveries | (583) |
Other Receivables [Member] | |
Balance | 14 |
Current period provision | 73 |
Write offs against allowance, net of recoveries | (7) |
Balance | 80 |
Write offs against allowance, net of recoveries | $ (7) |