Rush Enterprises Inc. plans to discontinue operating D&D superstores and its Michigan John Deere construction equipment dealerships, and has signed a letter of intent to acquire Orange County Truck and Trailer Inc., a Peterbilt dealer in central Florida.
Rush currently operates the largest network of Peterbilt heavy-duty truck dealerships in North America, as well as John Deere construction equipment dealerships in Texas and Michigan, and three of the largest farm and ranch superstores (D&D) in America.
The company expects the net loss from discontinued operations will be between $7.8 million, or $0.54 per diluted share, to $9.0 million or $0.62 per diluted share, and will be recorded during the fourth quarter of 2002. The loss range is dependent upon a number of factors, including but not limited to, the liquidation of inventory, the sale of real estate and costs associated with closing versus selling the operations.
The company's preliminary plans are to close the D&D facilities in Hockley and Denton, Texas, by March 31, 2003, and to sell the D&D Seguin store by Dec. 31, 2003. The company has signed a non-binding letter of intent to sell the Michigan John Deere construction equipment dealerships.
D&D recorded a pretax loss of $4.0 million for the year ended Dec. 31, 2001, and a $1.2 million pretax loss for the nine months ended Sept. 30, 2002. The Michigan John Deere construction equipment dealerships recorded a combined pretax loss of $0.6 million for the year ended Dec. 31, 2001, and a $0.9 million pretax loss for the nine months ended Sept. 30, 2002.
The company signed a non-binding letter of intent to purchase the stock of Orange County. The pending acquisition will provide Rush with the exclusive rights to sell Peterbilt trucks and parts from three new locations in central Florida, including Orlando and Tampa Bay. Rush currently operates 35 truck locations in 7 states.
Rush intends to operate the acquired company as a full-service Peterbilt franchise, and will begin to integrate its operations into the Rush Truck Center system upon completion of the transaction. Rush had revenues of $784.3 million during 2001 while Orange County had revenues of approximately $55.7 million for the same period and $39.7 million during the first nine months of 2002. Rush anticipates the total purchase price for Orange County will be about $6 million.
Rush currently operates the largest network of Peterbilt heavy-duty truck dealerships in North America, as well as John Deere construction equipment dealerships in Texas and Michigan, and three of the largest farm and ranch superstores (D&D) in America.
The company expects the net loss from discontinued operations will be between $7.8 million, or $0.54 per diluted share, to $9.0 million or $0.62 per diluted share, and will be recorded during the fourth quarter of 2002. The loss range is dependent upon a number of factors, including but not limited to, the liquidation of inventory, the sale of real estate and costs associated with closing versus selling the operations.
The company's preliminary plans are to close the D&D facilities in Hockley and Denton, Texas, by March 31, 2003, and to sell the D&D Seguin store by Dec. 31, 2003. The company has signed a non-binding letter of intent to sell the Michigan John Deere construction equipment dealerships.
D&D recorded a pretax loss of $4.0 million for the year ended Dec. 31, 2001, and a $1.2 million pretax loss for the nine months ended Sept. 30, 2002. The Michigan John Deere construction equipment dealerships recorded a combined pretax loss of $0.6 million for the year ended Dec. 31, 2001, and a $0.9 million pretax loss for the nine months ended Sept. 30, 2002.
The company signed a non-binding letter of intent to purchase the stock of Orange County. The pending acquisition will provide Rush with the exclusive rights to sell Peterbilt trucks and parts from three new locations in central Florida, including Orlando and Tampa Bay. Rush currently operates 35 truck locations in 7 states.
Rush intends to operate the acquired company as a full-service Peterbilt franchise, and will begin to integrate its operations into the Rush Truck Center system upon completion of the transaction. Rush had revenues of $784.3 million during 2001 while Orange County had revenues of approximately $55.7 million for the same period and $39.7 million during the first nine months of 2002. Rush anticipates the total purchase price for Orange County will be about $6 million.
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