PACCAR Earnings 2019-09-30

PCAR 10Q Quarterly Report

Balance Sheet	Income Statement	Cash Flow

Comparables ($MM TTM)
Ticker	M Cap	Assets	Liab	Rev	G Profit	Net Inc	EBITDA	EV	G Margin	EV/EBITDA	ROA
FSS	1,644	1,096	516	1,147	300	104	174	1,815	26%	10.4	10%
REVG	681	1,406	889	2,411	263	-26	54	1,080	11%	20.1	-2%
SPAR	360	395	207	941	101	12	24	364	11%	14.9	3%
KNDI	257	409	190	97	24	-23	-13	252	25%	-19.3	-6%
WKHS	188	36	81	0	-15	-66	-30	173	-3,610%	-5.8	-186%
PCAR	0	27,168	17,533	25,152	0	2,372	4,088	-3,219	0%	-0.8	9%
NIU
NIO
TTM		2,987,120	2,429,052	0	0	0	0	-0			0%
SOLO		29	7	0	0	0	0	-2			0%

pcar-10q_20190930.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒	Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended September 30, 2019

☐	Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Commission File No. 001-14817

PACCAR Inc

(Exact name of registrant as specified in its charter)

Delaware	91-0351110
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

777 - 106th Ave. N.E., Bellevue, WA	98004
(Address of principal executive offices)	(Zip Code)

(425) 468-7400

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common stock, $1 par value	PCAR	The NASDAQ Global Select Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b‑2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐

		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

Common Stock, $1 par value — 345,873,618 shares as of October 25, 2019

PACCAR Inc – Form 10-Q

INDEX

		Page
PART I.	FINANCIAL INFORMATION:

ITEM 1.	FINANCIAL STATEMENTS:
	Consolidated Statements of Comprehensive Income – Three and Nine Months Ended September 30, 2019 and 2018 (Unaudited)	3
	Consolidated Balance Sheets – September 30, 2019 (Unaudited) and December 31, 2018	4
	Condensed Consolidated Statements of Cash Flows – Nine Months Ended September 30, 2019 and 2018 (Unaudited)	6
	Consolidated Statements of Stockholders' Equity – Three and Nine Months Ended September 30, 2019 and 2018 (Unaudited)	7
	Notes to Consolidated Financial Statements (Unaudited)	8
ITEM 2.	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	33
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	49
ITEM 4.	CONTROLS AND PROCEDURES	49

PART II.	OTHER INFORMATION:

ITEM 1.	LEGAL PROCEEDINGS	50
ITEM 1A.	RISK FACTORS	50
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	51
ITEM 6.	EXHIBITS	52

INDEX TO EXHIBITS		52

SIGNATURE		55

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PACCAR Inc – Form 10-Q

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Consolidated Statements of Comprehensive Income (Unaudited)

(Millions Except Per Share Amounts)

	Three Months Ended						Nine Months Ended
	September 30						September 30
	2019			2018			2019			2018
TRUCK, PARTS AND OTHER:
Net sales and revenues	$	6,004.2		$	5,416.9		$	18,408.8		$	16,205.9

Cost of sales and revenues		5,106.8			4,653.6			15,665.6			13,836.4
Research and development		82.2			72.9			243.0			225.6
Selling, general and administrative		136.8			124.2			413.5			388.3
Interest and other (income), net		(11.6	)		(7.4	)		(31.7	)		(42.5	)
		5,314.2			4,843.3			16,290.4			14,407.8
Truck, Parts and Other Income Before Income Taxes		690.0			573.6			2,118.4			1,798.1

FINANCIAL SERVICES:
Interest and fees		148.3			128.0			433.2			365.3
Operating lease, rental and other revenues		214.5			211.9			640.5			644.8
Revenues		362.8			339.9			1,073.7			1,010.1

Interest and other borrowing expenses		59.6			49.0			173.0			136.0
Depreciation and other expenses		195.3			178.5			556.3			550.4
Selling, general and administrative		35.8			29.3			101.8			90.2
Provision for losses on receivables		5.6			4.3			11.8			14.8
		296.3			261.1			842.9			791.4
Financial Services Income Before Income Taxes		66.5			78.8			230.8			218.7
Investment income		21.1			16.4			62.2			41.0
Total Income Before Income Taxes		777.6			668.8			2,411.4			2,057.8
Income taxes		169.7			123.5			554.8			440.8
Net Income	$	607.9		$	545.3		$	1,856.6		$	1,617.0

Net Income Per Share
Basic	$	1.75		$	1.55		$	5.35		$	4.60
Diluted	$	1.75		$	1.55		$	5.34		$	4.59

Weighted Average Number of Common Shares Outstanding
Basic		346.6			350.7			346.9			351.6
Diluted		347.2			351.5			347.6			352.5

Comprehensive Income	$	480.1		$	544.0		$	1,765.1		$	1,515.6

See Notes to Consolidated Financial Statements.

- 3 -

PACCAR Inc – Form 10-Q

Consolidated Balance Sheets (Millions)

	September 30		December 31
	2019		2018*
	(Unaudited)
ASSETS

TRUCK, PARTS AND OTHER:
Current Assets
Cash and cash equivalents	$	3,535.2	$	3,279.2
Trade and other receivables, net		1,729.0		1,314.4
Marketable debt securities		1,107.8		1,020.4
Inventories, net		1,292.6		1,184.7
Other current assets		387.3		364.7
Total Truck, Parts and Other Current Assets		8,051.9		7,163.4

Equipment on operating leases, net		600.0		786.6
Property, plant and equipment, net		2,690.8		2,480.9
Other noncurrent assets, net		810.5		651.9
Total Truck, Parts and Other Assets		12,153.2		11,082.8

FINANCIAL SERVICES:
Cash and cash equivalents		134.3		156.7
Finance and other receivables, net		11,671.7		10,840.8
Equipment on operating leases, net		2,941.0		2,855.0
Other assets		867.5		547.1
Total Financial Services Assets		15,614.5		14,399.6
	$	27,767.7	$	25,482.4

*	The December 31, 2018 consolidated balance sheet has been derived from audited financial statements.

See Notes to Consolidated Financial Statements.

- 4 -

PACCAR Inc – Form 10-Q

Consolidated Balance Sheets (Millions)

	September 30			December 31
	2019			2018*
	(Unaudited)
LIABILITIES AND STOCKHOLDERS' EQUITY

TRUCK, PARTS AND OTHER:
Current Liabilities
Accounts payable, accrued expenses and other	$	3,539.8		$	3,027.7
Dividend payable					695.1
Total Truck, Parts and Other Current Liabilities		3,539.8			3,722.8
Residual value guarantees and deferred revenues		646.0			842.4
Other liabilities		1,372.0			1,145.7
Total Truck, Parts and Other Liabilities		5,557.8			5,710.9

FINANCIAL SERVICES:
Accounts payable, accrued expenses and other		637.5			523.2
Commercial paper and bank loans		4,140.0			3,540.8
Term notes		6,716.0			6,409.7
Deferred taxes and other liabilities		753.7			704.9
Total Financial Services Liabilities		12,247.2			11,178.6

STOCKHOLDERS' EQUITY:
Preferred stock, no par value - authorized 1.0 million shares, none issued
Common stock, $1 par value - authorized 1.2 billion shares, issued 347.4 and 346.6 million shares		347.4			346.6
Additional paid-in capital		116.8			69.4
Treasury stock, at cost - 1.7 million and nil shares		(110.2	)
Retained earnings		10,798.7			9,275.4
Accumulated other comprehensive loss		(1,190.0	)		(1,098.5	)
Total Stockholders' Equity		9,962.7			8,592.9
	$	27,767.7		$	25,482.4

*	The December 31, 2018 consolidated balance sheet has been derived from audited financial statements.

See Notes to Consolidated Financial Statements.

- 5 -

PACCAR Inc – Form 10-Q

Condensed Consolidated Statements of Cash Flows (Unaudited)

(Millions)

	Nine Months Ended
	September 30
	2019		2018
OPERATING ACTIVITIES:
Net Income	$	1,856.6	$	1,617.0
Adjustments to reconcile net income to cash provided by operations:
Depreciation and amortization:
Property, plant and equipment		243.1		255.6

Closing Price ($)	Shares Out (MM)	Market Cap ($MM)
$0.00	0	$0

10-Q	2019-10-30	Quarter: 2019-09-30
10-Q	2019-08-02	Quarter: 2019-06-30
10-Q	2019-05-02	Quarter: 2019-03-31
10-K	2019-02-21	Annual: 2018-12-31
10-Q	2018-11-02	Quarter: 2018-09-30
10-Q	2018-08-03	Quarter: 2018-06-30
10-Q	2018-05-04	Quarter: 2018-03-31
10-K	2018-02-21	Annual: 2017-12-31
10-Q	2017-11-03	Quarter: 2017-09-30
10-Q	2017-08-04	Quarter: 2017-06-30
10-Q	2017-05-04	Quarter: 2017-03-31
10-K	2017-02-21	Annual: 2016-12-31
10-Q	2016-11-04	Quarter: 2016-09-30
10-Q	2016-08-03	Quarter: 2016-06-30
10-Q	2016-05-04	Quarter: 2016-03-31
10-K	2016-02-16	Annual: 2015-12-31
10-Q	2015-11-05	Quarter: 2015-09-30
10-Q	2015-08-06	Quarter: 2015-06-30
10-Q	2015-05-06	Quarter: 2015-03-31
10-K	2015-02-26	Annual: 2014-12-31
10-Q	2014-11-06	Quarter: 2014-09-30
10-Q	2014-08-07	Quarter: 2014-06-30
10-Q	2014-05-07	Quarter: 2014-03-31
10-K	2014-02-27	Annual: 2013-12-31
10-Q	2013-11-07	Quarter: 2013-09-30
10-Q	2013-08-07	Quarter: 2013-06-30
10-Q	2013-05-08	Quarter: 2013-03-31
10-K	2013-02-27	Annual: 2012-12-31
10-Q	2012-11-07	Quarter: 2012-09-30
10-Q	2012-08-08	Quarter: 2012-06-30
10-Q	2012-05-10	Quarter: 2012-03-31
10-K	2012-02-29	Annual: 2011-12-31
10-Q	2011-11-07	Quarter: 2011-09-30
10-Q	2011-08-08	Quarter: 2011-06-30
10-Q	2011-05-06	Quarter: 2011-03-31
10-K	2011-03-01	Annual: 2010-12-31
10-Q	2010-08-06	Quarter: 2010-06-30
10-Q	2010-05-05	Quarter: 2010-03-31
10-K	2010-02-26	Annual: 2009-12-31

8-K	2020-01-28	Earnings, Exhibits
8-K	2019-10-22
8-K	2019-07-23	Earnings, Exhibits
8-K	2019-05-14	Regulation FD, Exhibits
8-K	2019-04-30	Earnings, Exhibits
8-K	2019-04-29	Officers, Shareholder Vote
8-K	2019-04-18	Officers, Regulation FD, Exhibits
8-K	2019-01-29	Earnings, Exhibits
8-K	2018-12-04	Officers, Amend Bylaw, Other Events, Exhibits
8-K	2018-10-23	Earnings, Exhibits
8-K	2018-07-24	Earnings, Exhibits
8-K	2018-05-16	Regulation FD, Exhibits
8-K	2018-04-30	Officers, Amend Bylaw, Shareholder Vote, Exhibits
8-K	2018-04-24	Earnings, Exhibits
8-K	2018-02-16	Officers, Exhibits
8-K	2018-01-30	Earnings, Exhibits

EX-31.(A)	pcar-ex31a_8.htm
EX-31.(B)	pcar-ex31b_6.htm
EX-32	pcar-ex32_7.htm
EX-4.(I)	pcar-ex4i_252.htm