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Edited Transcript of RUSHA earnings conference call or presentation 13-Feb-20 3:00pm GMT

·28 mins read

Q4 2019 Rush Enterprises Inc Earnings Call NEW BRAUNFELS Feb 19, 2020 (Thomson StreetEvents) -- Edited Transcript of Rush Enterprises Inc earnings conference call or presentation Thursday, February 13, 2020 at 3:00:00pm GMT TEXT version of Transcript ================================================================================ Corporate Participants ================================================================================ * Steven L. Keller Rush Enterprises, Inc. - CFO & Treasurer * W. Marvin Rush Rush Enterprises, Inc. - Chairman of the Board, CEO & President ================================================================================ Conference Call Participants ================================================================================ * Christopher Alex Armes The Buckingham Research Group Incorporated - Associate * Jamie Lyn Cook Crédit Suisse AG, Research Division - MD, Sector Head of United States Capital Goods Research, and Analyst * Joel Gifford Tiss BMO Capital Markets Equity Research - MD & Senior Research Analyst * Justin Trennon Long Stephens Inc., Research Division - MD ================================================================================ Presentation -------------------------------------------------------------------------------- Operator [1] -------------------------------------------------------------------------------- Good morning, ladies and gentlemen, and welcome to the Rush Enterprises, Inc. Fourth Quarter and Year-End 2019 Earnings Results. (Operator Instructions) As a reminder, this conference call is being recorded. I would now like to turn the conference over to your host, Mr. Rusty Rush, Chairman, CEO and President. -------------------------------------------------------------------------------- W. Marvin Rush, Rush Enterprises, Inc. - Chairman of the Board, CEO & President [2] -------------------------------------------------------------------------------- Good morning, everyone, and welcome to our fourth quarter year-end 2019 earnings release conference call. On the call today are Mike McRoberts, Chief Operating Officer; Steve Keller, Chief Financial Officer; Derrek Weaver, Executive Vice President; Jay Hazelwood, Vice President and Controller; and Michael Goldstone, Vice President, General Counsel and Corporate Secretary. Now Steve will say a few words regarding forward-looking statements. -------------------------------------------------------------------------------- Steven L. Keller, Rush Enterprises, Inc. - CFO & Treasurer [3] -------------------------------------------------------------------------------- Certain statements we will make today are considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Because these statements include risks and uncertainties, our actual results may differ materially from those expressed or implied by such forward-looking statements. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, those discussed in our annual report on Form 10-K for the year ended December 31, 2018, and in our other filings with the Securities and Exchange Commission. -------------------------------------------------------------------------------- W. Marvin Rush, Rush Enterprises, Inc. - Chairman of the Board, CEO & President [4] -------------------------------------------------------------------------------- As indicated in our news release, we achieved annual revenues of $5.8 billion and net income of $141.6 million or $3.77 per diluted share. In the fourth quarter, net income was $23.8 million or $0.64 per diluted share on revenues of $1.3 billion. We are proud of our team for their hard work this year, which resulted in our strong financial performance and record-high company revenues. Our results were largely driven by execution of our strategic initiatives, a strong economy and a strong demand for most market segments we support. In the aftermarket, our annual parts, service and body shop revenues were $1.8 billion and our annual absorption rate was 120.2%. Our annual aftermarket revenues increased 5.6% compared to 2018, nearly doubling the industry aftermarket growth rate in 2019. The growth was primarily driven by investments in internal and customer-facing technologies, expanded All-Makes Parts offerings and growth in our aftermarket sales team. Fourth quarter aftermarket revenues were flat compared to fourth quarter of 2018 and down more than anticipated compared to the third quarter of 2019. In addition to the typical seasonal decline in aftermarket activity, we experienced decreased demand from energy, medium-duty, leasing and over-the-road customers during the quarter. We expect industry-wide demand for aftermarket parts and services in 2020 to be flat compared to 2019. But with our continued focus on our aftermarket initiatives, particularly in an improved productivity through express services to help expedite repairs and reduce customer well time and the investments we've made in distribution technologies, we believe our aftermarket growth will slightly outpace the industry in 2020. Turning now to truck sales. In 2019, we sold 14,986 new Class 8 trucks, up 2% over the previous year and accounted for 5.3% of the total Class 8 U.S. market. Our new Class 8 truck sales grew steadily from the first quarter of 2019 through the third quarter of 2019 primarily due to the healthy economy and strong activity across most market segments we support. In the fourth quarter of 2019, as predicted by ACT Research, industry-wide new U.S. Class 8 retail truck sales declined compared to the fourth quarter of 2019, and our results were further negatively impacted by the timing of certain fleet deliveries. ACT Research currently forecasts U.S. Class 8 sales to be 190,000 units in 2020, down 32.5% from 2019. Truck sales will clearly be a challenge in 2020 primarily due to excess capacity of trucks in the market and softer freight rates. That said, freight rates are expected to begin to improve later this year, and we have a strong vocational customer base that we believe will allow us to grow our Class 8 market share in 2020. In medium-duty Class 4-7 new truck sales reached 14,470 units, up 11.7% year-over-year and accounted for 5.4% of the U.S. market. We again achieved record-setting year for Class 4-7 truck sales, significantly outpacing the market due to our continued ability to meet our customers' needs with a wide range of product offerings across the country. ACT Research forecasts U.S. Class 4-7 retail sales to be 253,400 units this year, down 5.1% from 2019. We expect solid activity from the customer segments we support and believe our Class 4-7 results will be on pace with the industry in 2020. In the area of network growth, in 2019, we added 4 new Rush Truck Center locations and purchased 50% of the equity in Rush Truck Centers of Canada Limited, which operates 14 international truck dealerships in Ontario, Canada. During 2019, the company repurchased $58.3 million of its common stock. During the fourth quarter of 2019, the company repurchased $4.1 million of its common stock and adopted a repurchase plan that allows us to repurchase $100 million of stock through December 31, 2020. Additionally, we paid a cash dividend of $4.7 million during the fourth quarter of 2019 for a total of $18.3 million paid to shareholders during 2019. Our share repurchase program and cash dividends reflect our confidence in our long-term strategy and our commitment returning capital to shareholders while growing our business. We ended the year in a strong financial position, including $181.6 million in cash. We have already implemented company-wide expense reductions in anticipation of challenging market conditions in 2020. However, we do expect general and administrative expenses to be sequentially higher in the first quarter of 2020 due to normal seasonal increases in employee benefits and taxes. I would like to thank our employees for their hard work and commitment to our customers and our strategic initiatives, which helped us achieve such strong financial results in 2019. With that, I'll take your questions. ================================================================================ Questions and Answers -------------------------------------------------------------------------------- Operator [1] -------------------------------------------------------------------------------- (Operator Instructions) And your first question comes from Jamie Cook with Crédit Suisse. -------------------------------------------------------------------------------- Jamie Lyn Cook, Crédit Suisse AG, Research Division - MD, Sector Head of United States Capital Goods Research, and Analyst [2] -------------------------------------------------------------------------------- I guess a couple of questions. Rusty, the fourth quarter, while you don't give guidance, was short relative to what The Street had thought. Was it in line with your expectations? I'm just trying to figure out if anything surprised during the quarter. And then my follow-up question to that is just given where The Street is for 2020, should we think about the fourth quarter as sort of a good base to start to grow 2020? And then my last question, you talked about energy aftermarket bottoming. Just what provides confidence there? And how would you characterize how much of energy was in 2019 to your earnings as we think about those markets bottoming? -------------------------------------------------------------------------------- W. Marvin Rush, Rush Enterprises, Inc. - Chairman of the Board, CEO & President [3] -------------------------------------------------------------------------------- Okay. All right. First one you asked was what I expected. -------------------------------------------------------------------------------- Jamie Lyn Cook, Crédit Suisse AG, Research Division - MD, Sector Head of United States Capital Goods Research, and Analyst [4] -------------------------------------------------------------------------------- Yes. -------------------------------------------------------------------------------- W. Marvin Rush, Rush Enterprises, Inc. - Chairman of the Board, CEO & President [5] -------------------------------------------------------------------------------- Not what I expected, Jamie, going in up. I could tell you back in September and August, it wasn't what I expected -- August, September area. But as the quarter unfolded, and we got through the end of -- really into the middle of November it -- December was a difficult month. It truly was. I guess to add color, not that it helps. I've done a lot of checking around the country over the last month, as I saw what was happening especially in December. And I don't think I was alone from that perspective. It was a little more -- as I said, it was the parts and service stuff. I mean we had some timing issues on truck deliveries. I mean you saw how big Q3 was, right? Q3 was a big quarter. It was our biggest quarter of year but biggest ever. And so -- and then to be honest with you, I'll talk about Q1 in a minute. But we had some timing of deliveries that came a little quicker than we anticipated in Q3. So I mean we were under 3,000 units from a truck perspective. But it was -- and so I knew we were going to be off in truck sales not quite that much going in. But there was parts and service decline that got my attention really in December, and we always have some seasonal decline. This was just exasperated a little more. And -- especially in December. December was a very difficult month. I will say this, it's the trough, okay? I'm confident in that from that perspective as we go forward. Sequentially, we're going to be up in parts and service. Now whether we're up at the same rate as we were in '19 Q1, it's sort of -- a lot of hand to mouth right now. It's unfolding up in front of us. But it's -- I feel better -- I feel a lot better now than I did on December 31. At the same time, it's -- my window out there is not -- I can't look out that far and see as well as I would like to. At the same time, January was, for sure, a better month than December, and we're working our way through February. And at the same time, I feel better than I did. That will be a trough from a parts and service perspective, and I'm not going to -- but your comment about, should we look at that going forward the whole quarter? I would tell you, I don't expect to do -- first, I can't explain how much better, how is that? That would be the way I would view it right now when I look forward. And when you talk about -- you asked about energy also. Energy, for sure, while it doesn't have the same effect on the company it had 4 years ago, it has an effect, realizing we're still in Texas, Oklahoma, Colorado, New Mexico, where there's a lot of energy business going on. So we were from the peak -- say a peak quarter in '18 to a peak -- to a trough, which was Q4 of '19. We're going 2/3. You got it? We're almost 65%, 66% from the peak quarter of '18 to where we were -- and Q4 was the trough. So I can't see it getting any worse than that. At the same time, we will have a few headwinds in Q1 and 2 because it continued to drop throughout the year. I mentioned that on the other calls, right? It -- when I was on the Q3 call, I said it was down more than Q2 and Q2 was down more than Q1. Now I do believe it's bottomed, okay, from the reports I'm getting. Now that doesn't mean it's great, but it's bottomed. So I really don't think much way of one direction to go, hopefully. And I hope that's the case. That's up with that area. But we do have some sequential headwinds. Q1 and 2 were better than Q4. So that's one of the reasons when I was going to start -- I always talk like I like to, but you know me. That's one of the reasons when I look at early in the year from a parts and service perspective, I'll get it after -- my -- probably flat to last year. And there's a possibility of a slight down -- slightly down just because of those headwinds. Those other markets I talked about in my call a minute ago, we're seeing stabilization, and I believe they're going to come back. And the seasonality that we get pickups and will happen. It's just -- is -- any real growth that we have in parts and service will probably be towards the back of the year, the second half of the year, not like to be surprised in the second quarter. But I can't sit here and say, I believe we can -- I still have -- I have confidence that we can maintain where we were last year with some pick up in the back half. Because I don't -- I mean if you go look at other folks' reports, they might tell you one thing or another. But most people, what -- you can get in people -- the different research firms that will project at parts and service, are calling for flat, okay, this year. When you -- and when you think about it, you think about the names of the fleet, right? I mean we just freshened up this fleet. 2019 was the second biggest year in history, okay, and '18 was no slap. So we freshened everything up. And when you've got oversupply out there, folks may not tend to fix this, but you have that -- when you got oversupply trucks. We can give the rate acceptances and what's going on in the world. It's just an industry -- our industry goes through these corrections every now and then. And that's what we'll be correcting over the next -- I don't think it's going to be lasting forever, but over a lot of this year, you'll be on -- from truck for sales perspective, the industry will be leveling out and taking. It's not doom and gloom. It's an industry thing. I believe it's driven. And for us, there's some exasperation because of the oil and gas sector. But at the same time, we have gone and worked on our G&A. I mean I'm getting out of head here. And I'll wait -- except I'll wait for people to ask questions I'll just rattle off everything I've got in my mind. But again, on the truck side, I didn't say I think we can take some market share with a smaller market. We always have -- we've done it every time historically. So I don't have the backlog I have. It's again more hand to mouth. But I feel pretty good about it, so. -------------------------------------------------------------------------------- Operator [6] -------------------------------------------------------------------------------- Your next question comes from Justin Long with Stephens. -------------------------------------------------------------------------------- Justin Trennon Long, Stephens Inc., Research Division - MD [7] -------------------------------------------------------------------------------- So maybe circling back to the energy commentary. Is there a way you could frame up what the energy-related headwind and parts and service was in 2019? And I know you exited the year with that business lower. So what you're assuming for that headwind to be in 2020 as well? -------------------------------------------------------------------------------- W. Marvin Rush, Rush Enterprises, Inc. - Chairman of the Board, CEO & President [8] -------------------------------------------------------------------------------- Well, 2020 won't be as bad as 2019, how about that? Okay. The closer you get down. So I don't -- it's hard to get a feel. The one thing about the whole business. It -- when it turns on, it don't give you much -- it does not give you much advanced warning. And a lot of times when it turns down, it doesn't give you much advanced warning either. That being said, I don't look for any big pickups there inside of it. I'm going to try to get you, Steve's working on right here, get you a little bit of guidance from an EPS perspective what it was last year. I don't -- it's just -- it's -- right now, I believe, it's strong. So Q4, I will look at as trough when it's down 65%, so it's a peak quarter. As far as guidance of what it cost us last year, nothing like it used to, but probably somewhere between $0.40 and $0.50 last year. If you want to compare to '18, okay? Probably cost us somewhere between $0.40 and $0.50 last year. And as we go forward, probably half of that, but that will all be directed up early in the year mostly. So as we look back on last year, that $0.20, $0.25 will be spread over the first 2 -- really first -- some in Q3 too, but really Q1, Q2 are a little more heavily weighted, probably 75%. The rest goes into Q3, I guess. When you look at that -- when I say that $0.20, $0.25. So that's the best I can give you right there on that. And that's just what we believe, right? It's got to come to pass. But I don't look for any big explosion in it. I mean at least in this -- rest of this year. If it does -- if something does happen good, that's great. Now that doesn't mean we can't do better in other areas from a parts and service perspective, but that's the reason why I call for flat, right, early on. It's -- because we've got to be able to come those headwinds here in Q1 and Q2, but I think we're capable of it. With the stuff that we've done, I believe, we're capable of it. That doesn't leave as much room for growth, though, year-over-year. I do believe we can get some growth in the back half of the year when those headwinds subside from a parts and service perspective because I do believe most of all of our other markets have stabilized. And we'll grow -- go after there and take some share in some of those. -------------------------------------------------------------------------------- Justin Trennon Long, Stephens Inc., Research Division - MD [9] -------------------------------------------------------------------------------- That helps. And just from a top line perspective in parts and service, you were up about 5.5% in 2019. If you took out energy, would you say that you were probably closer to the double digits? I just wanted to get a sense for -- looking at the underlying market, what the trend was. -------------------------------------------------------------------------------- W. Marvin Rush, Rush Enterprises, Inc. - Chairman of the Board, CEO & President [10] -------------------------------------------------------------------------------- It may not be quite there but really close, okay? High singles somewhere in there, okay -- up in there. Remember, this is not fewer times. I mean I'm going across thousands and thousands of customers and sometimes trying to bucket them all is not as easy as you think. But we've got pretty good intelligence on how to do it. So -- but -- so I would say somewhere very close to up there, okay? So we're high kind of double, okay? -------------------------------------------------------------------------------- Justin Trennon Long, Stephens Inc., Research Division - MD [11] -------------------------------------------------------------------------------- Okay. That's helpful. And then you mentioned the G&A cuts earlier. So just wanted to get an update on where you are in that process? And any updated thoughts on the savings you expect in 2020? -------------------------------------------------------------------------------- W. Marvin Rush, Rush Enterprises, Inc. - Chairman of the Board, CEO & President [12] -------------------------------------------------------------------------------- Well, as we go into the year, remember, I mentioned -- I'll get to G&A in a second. Remember, Q1 is heavily weighted every year for the last 20 years with benefits and taxes. There's always some headwind there that comes -- shows up in Q1 that declines throughout the rest of the year once we get through March. And that's just the way it gets all expensed to the balance sheet -- to the P&L. So if you -- we're going to have those headwinds. But outside of those headwinds, from an operating perspective, I expect to be -- got -- we got pretty high Q3 and Q2. Q4, we always have a pretty good quarter. I expect it to be very similar to last year's Q1. And then if you -- so it will be brought back quite a bit from where Q2 and Q3 were. G&A -- SG&A will probably come down in total. But G&A itself will probably be fairly flat to last Q1. So those cuts went into effect -- some of them now because what they were roll in throughout this year, they all weren't immediate inside of it because it was their semi-fixed and some contractual stuff. There's also personnel. It's a mix of stuff. So while I -- we got benefit of some of it in Q4, we didn't get it all. So some of it will roll into this year. I'm not -- it's hard for me to really define exactly what. And we are still monitoring the business and the expenses on a daily basis, and I'll just leave it at that. Not just -- we're not just about where we're weekly, but we're paying attention closely to where we're at, and we'll stay on top of that as we go forward. Yes. I mean if I'm going to -- one last thing. I would, for sure, believe we're going to be down on an annualized basis, okay? But we're spreading each quarter. I'm sure I've got confidence in Q2 and Q3 being less than last year, I really do, from a G&A perspective. As everything takes effect, it gets Q1 down flat with last year because we had big -- we had increases in 2 and 3 and don't look for that to happen again this year. -------------------------------------------------------------------------------- Operator [13] -------------------------------------------------------------------------------- Your next question comes from Joel Tiss with BMO. -------------------------------------------------------------------------------- Joel Gifford Tiss, BMO Capital Markets Equity Research - MD & Senior Research Analyst [14] -------------------------------------------------------------------------------- I had like 24 questions, but you talked so much. Now I only have 2. How is it going? -------------------------------------------------------------------------------- W. Marvin Rush, Rush Enterprises, Inc. - Chairman of the Board, CEO & President [15] -------------------------------------------------------------------------------- Perfect. Absolutely perfect, Joel. -------------------------------------------------------------------------------- Joel Gifford Tiss, BMO Capital Markets Equity Research - MD & Senior Research Analyst [16] -------------------------------------------------------------------------------- Can you talk a little bit about Traton? Like what does Traton and Navistar mean for you guys in any -- like any sort of preliminary thinking around maybe parts or just how you go to market? -------------------------------------------------------------------------------- W. Marvin Rush, Rush Enterprises, Inc. - Chairman of the Board, CEO & President [17] -------------------------------------------------------------------------------- Well, I think it's going to -- look, as you know, it's not a light switch -- those deals aren't light switches, right? It's not add water and stir, right? So those things evolve over time. But I can tell you this. If you look at it, it's going to be long term, more proprietary parts, okay, which obviously will help parts margins, okay? I don't think now -- I'm not going to get into the details of what -- where, what, when and how. But you know, given knowing Volkswagen or most European ownership groups and how they work, they're driven towards proprietary. So I would expect, over time, at that time, though, that takes engineering, that takes -- and they're already -- obviously, they've already been collaborating on stuff, right, for the last couple of years. But I would imagine there's improvements in purchasing. There's improvements, and there will be proprietary stuff continue to be built in to the product, which will help long-term goal from a parts perspective. From a truck perspective, it's is going to have a stronger, I would say, way stronger balance sheet. And I would expect that we'll be able -- the ability to invest will be greater than it has been in the past. So I mean I -- there's nothing I can tell you it's going to happen right now, Joel, but I can sit there -- but again, that continues to fortify the belief that there are tailwinds in our Navistar distributorship. We still haven't got -- I mean if you really want to look, right, I mean you did ask questions, so I'll stay off of that. I want to -- doesn't want to talk about where we're at there. We've got headwinds in parts and service right now. But that comes from not having any -- hardly any engine sold from 2010 to 2013, '14, right? Those are the products we do more parts and service business of. So what was sold has gone out of the marketplace from a MAXXFORCE's perspective, and then you had a low market share for a while. So we're facing those headwinds parts and service-wise right now. And those stores have really have to go out aggressively and go after different stuff than you normally would if you were just running down a path and what usually happens with most OEMs in this country. At the same time, on your question, yes, it's good for the long-term viability of that division for us, and I still believe those are tailwinds in the organization. I can't tell you when they all come to pass, but we have seen it on the truck sales side, working better last year. We believe it will continue to help on the truck sales side this year. And -- but a smaller market. But hopefully, we'll do well with it. -------------------------------------------------------------------------------- Joel Gifford Tiss, BMO Capital Markets Equity Research - MD & Senior Research Analyst [18] -------------------------------------------------------------------------------- And then for Steve, can you give us a little bit of help of SG&A as a percent of sales, maybe like first half, second half? Just kind of ballpark, like how you think it's going to flow? -------------------------------------------------------------------------------- Steven L. Keller, Rush Enterprises, Inc. - CFO & Treasurer [19] -------------------------------------------------------------------------------- For the year, obviously when the truck sales go down since trucks are such high individual dollar items, and our revenue will go down considerably, our SG&A, even though we're doing expense cuts, will increase as a percentage of overall revenue. So for the year, it will probably be in that 13.5% to 14% range versus where it was last year. And the spread of that by quarter is going to depend on the flow of truck sales. We expect the first half of truck sales to be better than our Q4 run rate. So it will be on -- probably closer to 13.5% in that first half of the year, and we're going to have to wait and see how truck sales unfold in the second half of the year. So hopefully, that gives you enough to model it out. -------------------------------------------------------------------------------- Operator [20] -------------------------------------------------------------------------------- (Operator Instructions) And your next question comes from Chris Armes with Buckingham Research. -------------------------------------------------------------------------------- Christopher Alex Armes, The Buckingham Research Group Incorporated - Associate [21] -------------------------------------------------------------------------------- Just to continue on the -- talking about cost here. So you called out company-wide expense reductions in the fourth quarter. Can you just provide a little bit more color on those actions? And were those kind of deferred or permanent? Or how to think about that? -------------------------------------------------------------------------------- W. Marvin Rush, Rush Enterprises, Inc. - Chairman of the Board, CEO & President [22] -------------------------------------------------------------------------------- Well, I think I mentioned a minute ago, some of them -- obviously, there was some personnel reduction. I mean without me -- outside of technicians, there was probably a 5% personnel reduction inside the organization. I don't count technicians because they're mechanics and they're technicians. Outside of that, there was probably a 5% personnel reduction across the entire network. And all expenses were looked at in other areas and are continuing to be looked at from a semi-fixed expenses. And sometimes those roll in a little later. So because you're on contracts, things like that. You'll say, well, I'm not going to renew it for this month, so I'm going to cut it to this. I'm going to cut it out entirely. So -- but those things don't all evolve them. I can't break contracts, right? So you have to allow some of those things to happen. I -- again, as I said earlier, we will continue to monitor them. I call it for flat in the first quarter. From a -- outside of the seasonal stuff that shows up in the first quarter. There's always a seasonal plug that shows up there with -- especially employee benefits, equity, things like that that get expensed hard in the first quarter every year of this company. So -- but I do believe we will be down in Q2 and Q3 year-over-year, pretty good, while flatten one is some of this stuff continues to roll in. So that's really where I'm at without me. You can look back at last -- that's on the G&A. On an SG&A perspective, it's going to go down because if we sell less trucks, the S part is directly tied to the sale of trucks. So that's what I believe and we believe, and we will continue to monitor. And if there are more measures that need to be taken, we will take them. As I said, I believe, Q4 was trough from a parts and service perspective, slightly up in January. We're going to continue that message sequentially now -- we're going back on sequentially. We believe that's happening in February. It will continue to work its way through March. That will continue to sequentially be up in Q1 over Q4. That was the trough. Working on expenses at the same time. I mean I haven't said it, but I believe Class 8 trucks, they are going to be better in Q1 than they were Q4. Not, not. Not dramatically but they're going to. There was some timing and some stuff that fell into this year. So that's where I'm at, man. -------------------------------------------------------------------------------- Christopher Alex Armes, The Buckingham Research Group Incorporated - Associate [23] -------------------------------------------------------------------------------- Got you. And then secondly, if I could just ask about M&A. What the pipeline looks like? And kind of how you guys are approaching that as we enter kind of the down cycle in heavy-duty trucks? -------------------------------------------------------------------------------- W. Marvin Rush, Rush Enterprises, Inc. - Chairman of the Board, CEO & President [24] -------------------------------------------------------------------------------- Well, it really hasn't taken -- the downturn hasn't really taken effect. I mean -- yes, we didn't have the quarter we wanted, but it wasn't like it was a disaster. I mean it was to me. But given back where -- what we've been on, if I would call that the trough, I feel pretty good if I look back 5, 10 years ago at the company. The M&A opportunities are -- haven't really shown yet. Will they show? You better believe it. They always do. Everybody is still counting their pennies from last year. But they'll feel the real heat. They may not have felt as much as we did in Q4. They had a good year. As the year unfolds, I'm sure that there will be opportunities that arise. Do I have any right now? If I did, I wouldn't tell you anyway. So let's just leave it at that. -------------------------------------------------------------------------------- Operator [25] -------------------------------------------------------------------------------- I am showing no further questions at this time. I would now like to hand the conference back to Mr. Rusty Rush. -------------------------------------------------------------------------------- W. Marvin Rush, Rush Enterprises, Inc. - Chairman of the Board, CEO & President [26] -------------------------------------------------------------------------------- Well, folks. Obviously, we won't wait as long till we talk to you again. We will be talking to you in April. Obviously, I have got a little comment of my own, I'll just go off the cuff. While fourth quarter wasn't what we wanted, I can promise that we are laser-focused. I feel a lot better than I did 3 or 4 weeks ago. Again, my window is a little short, but I feel very good about the efforts that we've got going on throughout the organization -- on all sides of it, whether it be on the sales side, on the -- focus on expenses. Just really laser-focused that Q4 was in a lot of ways a trough. And whether it was dramatic or not it was -- going forward, that was the trough, and we will produce before it's over. You can count on that. Thank you all very much, and we'll speak to you in April. -------------------------------------------------------------------------------- Operator [27] -------------------------------------------------------------------------------- Ladies and gentlemen, this concludes today's conference. Thank you for your participation, and have a wonderful day. You may all disconnect.