April 2023 expect expect more. 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 could materially differ from the results anticipated in any forward-looking statements that may be contained in this presentation. Important factors that could cause actual results to differ materially fr ...

Financial Data and Key Metrics Changes - The company reported first-quarter revenues of $1.9 billion and net income of $90.5 million, translating to $1.60 per diluted share [28] - Parts service and body shop revenues increased to $648 million, up 19.3% year-over-year, with an absorption ratio of 136.5% [6][28] - Lease and rental revenue rose by 21.5% compared to the first quarter of 2022, indicating strong demand for leased vehicles [31] Business Line Data and Key Metrics Changes - Class 8 truck sales reached 4,365 units, capturing 6.4% of the US market and 2.2% in Canada, with a strong backlog expected to maintain sales levels [3] - Class 4-7 new truck sales totaled 3,038 units, representing 5.3% of the US market and 3.2% in Canada, with healthy demand across various segments [7] - Used truck sales declined to 1,684 units, down 29.7% year-over-year, attributed to increased new truck production [8] Market Data and Key Metrics Changes - ACT Research forecasts US Class 4-7 retail sales to be 253,600 units in 2023, an increase of 8.6% from 2022 [30] - The company anticipates that the overall financial results will remain strong through the rest of 2023, despite potential economic impacts [9] Company Strategy and Development Direction - The company is focusing on expanding its mobile service presence and supporting large national fleets, which is expected to drive aftermarket revenue growth [29][41] - Strategic initiatives have improved the quality of earnings and increased the absorption rate, indicating effective expense management [18][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the parts and service business, expecting continued growth despite potential moderation due to inflation [11][25] - The company plans to maintain a strong focus on long-term initiatives, including workforce expansion to support mobile services [29] Other Important Information - The company has increased its stock buyback program to $150 million, with approximately $40 million executed since approval [23][38] - Management highlighted the importance of leveraging a large network to service customers effectively, even those who do not purchase trucks [55] Q&A Session Summary Question: Thoughts on parts and service growth for the remainder of the year - Management believes growth will moderate slightly but still expects to close the year in double digits [12] Question: Expected trend in SG&A and interest expense - SG&A is expected to stabilize in Q2, with interest expenses remaining similar to Q1 levels [15][16] Question: Market perception of valuation multiples - Management feels the market does not fully understand the strategic execution and quality of earnings improvements [17][18] Question: Progression of parts and service business - Management noted strong performance driven by strategic initiatives and a diverse customer base [39][41] Question: Economic outlook across different regions - Management reported strong performance in Florida, Texas, and California, with no weak spots identified [44][58]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 ☐ TRANSITION REPORT PURSANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 0-20797 RUSH ENTERPRISES, INC. (Exact name of registrant as specified in its charter) Texas 74-1733016 (State or other juri ...

Rush Enterprises, Inc. (NASDAQ:RUSHA) Q4 2022 Earnings Conference Call February 16, 2023 10:00 AM ET Company Participants Marvin Rush - Chairman, CEO & President Steven Keller - CFO & Treasurer Conference Call Participants Justin Long - Stephens Inc. Operator Good day, and thank you for standing by. Welcome to the Rush Enterprises Reports Fourth Quarter and Year-end 2022 Earnings Results. [Operator Instructions]. Please be advised that today's conference is being recorded. I would now like to hand the confe ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________________ to _______________________ Commission File Number 0-20797 RUSH ENTERPRISES, INC. (Exact name of registrant as specified ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________________ to _______________________ Commission File Number 0-20797 RUSH ENTERPRISES, INC. (Exact name of registrant as specifie ...

Financial Data and Key Metrics Changes - The company reported first-quarter revenues of $1.6 billion and net income of $93 million, translating to $1.60 per diluted share [5] - A cash dividend of $0.19 per common share was declared [5] Business Line Data and Key Metrics Changes - Aftermarket revenues reached $543 million, up 30.7% year-over-year, with an absorption ratio of 136.3 [8] - New Class 8 truck sales totaled 3,528 units, capturing 6.9% of the total U.S. Class 8 market [10] - Class 4 through 7 new truck sales were 2,141 units, accounting for 3.7% of the U.S. market [12] - Used truck sales increased to 2,395 units, reflecting a 24.5% year-over-year growth [13] Market Data and Key Metrics Changes - The U.S. Class 8 retail sales forecast for 2022 is $244,500, up 7.5% from 2021 [11] - The forecast for U.S. Class 4 through 7 retail sales in 2022 is 263,000 units, an increase of 5.4% from 2021 [12] Company Strategy and Development Direction - The company plans to increase its investment in Rush Truck Centres of Canada Limited to 80%, enhancing support for cross-border transportation customers [14] - Continued focus on expense management is expected to maintain strong financial results throughout the year [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of parts and service demand, anticipating continued growth despite potential economic challenges [20][25] - The company is closely monitoring inflation, consumer spending, and interest rates, which may impact the industry [14] Other Important Information - The acquisition of 19 dealership locations from The Summit Truck Group positively impacted financial performance [7] - The company expects parts supply constraints to persist throughout the year, but demand for parts and service is anticipated to remain strong [9] Q&A Session Summary Question: Growth in parts and service - Management indicated that the 30% growth rate in parts and service was not entirely organic, with same-store growth around 18% year-over-year, and expects continued strong performance [20] Question: Performance in a freight recession - Management expects parts and service to perform well even in a freight recession, projecting mid-single-digit growth rates [25] Question: OE production trends - Management anticipates an increase in OE production as parts shortages lessen, with expectations for Q2 and Q4 deliveries to improve [27][29] Question: Class 8 market share strength - Management noted a market share of 6.9% in Class 8 trucks and expressed optimism about maintaining or improving this figure [36] Question: Sustainability of margins - Management acknowledged that while used truck margins may trend down, they expect to maintain strong performance in the near term [38][41] Question: Capital allocation strategy - Management indicated a commitment to returning 35% to 40% of earnings to shareholders through dividends and share repurchases, with plans to reassess this at the end of Q2 [68] Question: Market conditions outside freight - Management reported strong performance in construction and housing markets, particularly in Texas and Florida, while noting a disciplined approach in the oil and gas sector [73][74]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 ☐ TRANSITION REPORT PURSANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 0-20797 RUSH ENTERPRISES, INC. (Exact name of registrant as specified in its charter) | Texas | 74-1733016 | | --- | --- | ...

Financial Data and Key Metrics Changes - The company achieved annual revenues of $5.1 billion and net income of $241.4 million, or $4.17 per diluted share for the year 2021 [5] - In Q4 2021, revenues were $1.3 billion, with net income of $68.6 million, or $1.18 per diluted share [5] - The company declared a cash dividend of $0.19 per common share [5] Business Line Data and Key Metrics Changes - Annual parts, service, and body shop revenues were $1.8 billion, up 12.1% year-over-year, with an absorption rate of 129.8% [8] - New Class 8 truck sales reached 11,052 units, capturing 4.9% of the total U.S. Class 8 market [9] - Class 4-7 new truck sales totaled 10,485 units, representing 4.2% of the U.S. market [10] - Used truck sales were 7,527 units, up 1.7% year-over-year [10] Market Data and Key Metrics Changes - The company expects U.S. Class 8 retail sales to increase by 8.9% in 2022, with a forecast of 247,500 units [9] - The company anticipates continued strong demand for new trucks and aftermarket services due to economic recovery [8] Company Strategy and Development Direction - The company is focused on strategic initiatives, including network growth and expense management, to enhance revenue and profitability [5][8] - The acquisition of 17 full-service dealerships from Summit Truck Group is expected to strengthen the company's market position and service capabilities [6][24] - The company plans to integrate the Summit acquisition into its operations, enhancing parts and service offerings [24][26] Management's Comments on Operating Environment and Future Outlook - Management noted that supply constraints are likely to continue impacting the industry through mid-2022, but demand for trucks and aftermarket services remains strong [8] - The company is committed to managing expenses and expects general and administrative expenses to be higher in Q1 2022 compared to Q4 2021 [11] - Management expressed confidence in the company's ability to navigate inflationary pressures and maintain profitability [37][38] Other Important Information - The company added approximately 150 service technicians to its workforce in 2021 [8] - Management emphasized the importance of maintaining a strong balance sheet and cash position while returning value to shareholders [11] Q&A Session Summary Question: Can you talk about the potential positive signs in the energy sector for 2022? - Management noted a gradual pickup in parts and service from the oil and gas sector, but emphasized a disciplined approach to capital expenditures [15] Question: What are you seeing on the pricing front for new trucks and market share opportunities? - Management indicated that manufacturers are catching up to supply chain disruptions, leading to increased pricing, and expressed optimism about market share growth due to acquisitions [17][18] Question: What impact do you expect from the Summit acquisition in 2022? - Management is optimistic about the integration of the Summit acquisition and expects growth in parts and service sales, with high single-digit growth anticipated [27][28] Question: How do you manage costs in the current inflationary environment? - Management highlighted the importance of managing the spread between revenue and expenses, acknowledging the challenges posed by inflation [37][38] Question: What are your thoughts on the impact of higher interest rates on the economy? - Management noted that while there is concern about rising interest rates, business remains strong, particularly among larger companies with solid balance sheets [40][41]

Financial Performance - Total revenues increased by $88.0 million, or 7.5%, in Q3 2021 compared to Q3 2020[101] - Aftermarket Products and Services revenues totaled $463.0 million in Q3 2021, up 15.7% from Q3 2020[101] - Revenues from sales of new and used commercial vehicles increased by $17.6 million, or 2.5%, in Q3 2021 compared to Q3 2020[102] - Total revenues increased by $346.6 million, or 10.0%, in the first nine months of 2021 compared to the same period in 2020[122] - Gross profit increased by $158.6 million, or 24.8%, in the first nine months of 2021, with gross profit as a percentage of sales rising to 20.9% from 18.4%[127] Sales and Market Share - A.C.T. Research forecasts new U.S. Class 8 retail truck sales to be 228,500 units in 2021, representing a 16.8% increase compared to 2020[75] - The company expects to achieve a market share of new Class 8 truck sales between 5.0% and 5.2% in 2021, translating to approximately 11,400 to 11,900 units sold[76] - For new U.S. Class 4 through 7 retail commercial vehicle sales, A.C.T. Research forecasts 251,000 units in 2021, an 8.2% increase from 2020, with the company expecting a market share of 4.0% to 4.3%[77] - The company anticipates selling approximately 7,200 to 7,400 used commercial vehicles in 2021[78] Revenue Growth Projections - Lease and rental revenue is expected to increase by 5% to 7% in 2021 compared to 2020[78] - Aftermarket Products and Services revenues are projected to rise by 10% to 12% in 2021 compared to 2020[79] Acquisitions and Expansion - In October 2021, the company acquired an independent parts and service facility in Victorville, California, to be converted into a full-service Peterbilt dealership[80] - The company plans to acquire a full-service Hino and Isuzu dealership in Elk Grove, Illinois, in November 2021[80] - The company entered into an agreement to acquire full-service commercial vehicle dealerships and Idealease franchises in multiple states, with the transaction expected to close in December 2021[80] - The company entered into an Asset Purchase Agreement to acquire assets of Summit Truck Group for approximately $223.0 million, with $114.0 million expected to be financed at closing[143] Profitability and Margins - Gross profit increased by $69.8 million, or 32.9%, in Q3 2021 compared to Q3 2020, with gross profit as a percentage of sales rising to 22.3%[109] - Gross margins from Aftermarket Products and Services operations increased to 39.3% in Q3 2021, up from 35.4% in Q3 2020, with gross profit rising to $182.2 million from $141.9 million[110] - Gross margins on new Class 8 truck sales rose to 8.7% in Q3 2021, compared to 7.8% in Q3 2020, driven by strong demand[111] - Gross margins on new Class 4 through 7 commercial vehicle sales increased to 8.0% in Q3 2021, up from 5.9% in Q3 2020[112] - Gross margins on used commercial vehicle sales increased to 19.7% in Q3 2021, from 12.0% in Q3 2020, due to strong demand[113] - Gross margins from truck lease and rental sales increased to 25.1% in Q3 2021, up from 14.4% in Q3 2020, attributed to increased rental fleet utilization[114] Cash Flow and Financial Position - Cash flows from operating activities for the first nine months of 2021 provided net cash of $438.6 million, primarily from $172.8 million in net income and non-cash adjustments totaling $126.7 million[146] - As of September 30, 2021, the company had $259.7 million in cash, indicating strong liquidity[74] - Financing activities resulted in net cash used of $369.6 million in the first nine months of 2021, mainly due to $232.8 million for principal repayments of long-term debt[151] - The company has a Floor Plan Credit Agreement with an aggregate loan commitment of $1.0 billion, with approximately $333.7 million outstanding as of September 30, 2021[155] - The company expects to fund capital expenditures through operating cash flows and financing, with no other material commitments as of September 30, 2021[144] - The company anticipates using a new revolving credit agreement of up to $250.0 million for capital expenditures and working capital needs[153] Environmental and Regulatory Considerations - The California Air Resources Board adopted a rule to phase out diesel-powered commercial vehicles, requiring a percentage of new sales to be zero-emission vehicles starting in model year 2024[164] - A joint memorandum of understanding among fifteen U.S. states aims for 100% of new Class 3 through 8 commercial vehicles to be zero emission by 2030, with an interim target of 30% by 2030[164] - The company does not believe it currently has any material environmental liabilities that would adversely affect its financial condition or cash flows[165] - Soil and groundwater impacts are known to exist at some of the company's dealerships, which may lead to unforeseen environmental costs or liabilities[165] - Environmental laws and regulations are complex and subject to change, which could require additional expenditures that may adversely affect the company's operations[165] - The company does not anticipate that compliance with current environmental laws will have a material adverse effect on its results of operations[165] - Future legislation regarding greenhouse gas emissions may negatively impact the company's business operations[164] Interest Rate and Market Risks - The company is exposed to market risk through interest rates related to its financing agreements, primarily based on LIBOR[166] - An increase or decrease in LIBOR of 100 basis points could correspondingly increase or decrease annual interest expense by approximately $3.5 million[167]