July 22, 2014
Rush Enterprises, Inc. announced Tuesday that for the quarter ending last month, the company’s net income was $19.8 million, compared with net income of $5.6 million in the quarter ended June 30, 2013.
In the second quarter, the company’s gross revenues totaled $1.1 billion, a 49.7 percent increase from gross revenues of $789.7 million reported for the second quarter ended June 30, 2013.
In the second quarter Rush’s Class 8 retail sales, which accounted for 6.5 percent of the U.S. market, increased by 74 percent over the same time period in 2013. Rush’s Class 4-7 medium-duty sales, which accounted for 5.7 percent of the total U.S. market, increased 49 percent over the second quarter of 2013.
“Moderate freight growth and a stable economy, combined with our ability to offer unique solutions and company-wide efforts to ‘integrate and execute’ resulted in record-setting performance this quarter,” says W. M. “Rusty” Rush, Chairman, Chief Executive Officer and President of Rush Enterprises. “We significantly outpaced the U. S. market in both heavy- and medium-duty new truck sales, achieving record market share in both segments. Total revenues for the quarter topped $1 billion, and we achieved new quarterly records for net income, aftermarket sales and absorption.”
Rush says truck sales began to build momentum in March and that sales of new Class 8 stock trucks significantly increased as independent operators and smaller vocational fleets required work-ready equipment to take advantage of increased activity in energy, construction and refuse segments.
“Some larger fleets also replaced aged vehicles to reduce maintenance expenses, but fleet expansion remains tempered by the driver shortage and high cost of equipment,” Rush says.
“Our Class 4-7 truck sales also significantly outpaced the U. S. retail market. With continued improvement in housing and road construction, our large inventory of Class 4-7 trucks at locations across the country allowed us to provide fast delivery of ready-to-roll equipment to vocational end users, particularly important as lead times from truck manufacturers continue to lengthen,” he adds. “We continue to see sales of trucks across our entire breadth of manufacturers, which includes Peterbilt, International, Hino, Isuzu and Ford. Truck sales to food and beverage fleets and sales of both IC Bus school buses in Ohio and Blue Bird school buses in Texas also contributed to Class 4-7 truck sales this quarter,” Rush adds.
Aftermarket services remained strong and accounted for approximately 62 percent of the company’s total gross profits for the second quarter of 2014. Second quarter parts, service and body shop revenues increased by 36 percent as compared to the second quarter of 2013. This contributed to a record quarterly absorption ratio of 120 percent.
“Continued repair and maintenance of aged vehicles and increased activity in pre-delivery inspection and vehicle modifications resulting from new truck sales were among the drivers for our strong parts, service and body shop revenues this quarter,” Rush says. “Demand for mobile service also remains strong in the energy sector and is on the rise in other parts of the country as well.”
“We expect that strong aftermarket sales will continue through the remainder of 2014, fueled by the on-going need for vehicle maintenance and repair and growth in our portfolio of aftermarket solutions, including expanded mobile service, regional parts call centers, natural gas capabilities and technology to improve customer communication and vehicle uptime,” Rush says.