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Commercial dealership network Rush Enterprises reports net income up 11%

In 2012, Rush's Class 8 retail sales increased by 10 percent over 2011, and accounted for 5.0 percent of the total U.S. Class 8 retail truck sales market.

The Trucker News Services

2/14/2013

Rush Enterprises Inc., which according to a company news release operates the largest network of commercial vehicle dealerships in North America, Wednesday reported record annual revenues of $3.1 billion compared to $2.6 billion in 2011 and net income of $62.5 million, or $1.57 per diluted share, up 11 percent over the previous year.

The company also announced that its Board of Directors approved a stock repurchase program authorizing the company to repurchase, from time to time in the next year, up to an aggregate of $40.0 million of its shares of Class A common stock, $.01 par value per share, and/or Class B common stock, $.01 par value per share.

"We are extremely proud of our record financial performance," said W. M. "Rusty" Rush, CEO and president of Rush Enterprises Inc. "In addition to achieving record revenue and net income in 2012, we also realized a 116 percent annual absorption rate, a 30 percent increase in medium-duty truck sales and we expanded our Rush Truck Centers network footprint to include 78 dealership locations.”

"We continue to transition the Company into the leading provider of solutions to the commercial vehicle industry – implementing our growth strategy to expand our portfolio of aftermarket services, broadening the diversity of our commercial vehicle product offerings and extending our network of service points across the United States," Rush added.

Aftermarket services accounted for 63.4 percent of the company's total gross profits in 2012 with parts, service and body shop revenues reaching a new record of $817.3 million, up 21 percent over 2011. This contributed to a new record annual absorption rate of 116 percent.

In 2012, Rush's Class 8 retail sales increased by 10 percent over 2011, and accounted for 5.0 percent of the total U.S. Class 8 retail truck sales market.

The company expects U.S. Class 8 retail sales will range from 198,000 to 208,000 units in 2013. "We continue to see customer confidence increasing in certain segments of the economy, such as residential construction," explained Rush. "We expect that the stronger order intake experienced during the past several months and implementation and customer acceptance of Navistar's engine strategy will begin to drive increased new truck deliveries beginning in the second quarter. We believe this improvement should continue throughout 2013 and into 2014."

Rush's U.S. Class 4-7 medium-duty truck sales reached 7,126 units in 2012, up 30 percent over 2011, and accounted for 4.3 percent of the U.S. Class 4-7 market.

The company continued to extend its geographic footprint in 2012 as well. "We expanded our Navistar Division by acquiring assets of Ohio-based MVI Group, which operated International, IC Bus, Isuzu and Idealease franchises at certain locations in Akron, Cincinnati, Cleveland, Columbus, Dayton, Findlay and Lima, Ohio,” said Rush. “Our Navistar Division now consists of 23 full service locations and 2 collision centers in 6 states. We continue to see performance improvement from our Navistar locations, and will continue to work with Navistar to explore mutually beneficial opportunities for growth in the future.”

Rush Truck Leasing now operates 36 Paclease and 9 Idealease franchises and had its most profitable year ever, increasing its lease fleet by 19 percent and revenues by 20 percent over 2011.

In the fourth quarter ended December 31, 2012, the Company's gross revenues totaled $732.3 million, a 5.6 percent decrease from gross revenues of $776.1 million reported for the fourth quarter ended December 31, 2011. Net income for the quarter was $14.2 million, or $0.36 per diluted share, compared to $19.4 million, or $0.50 per diluted share, in the quarter ended December 31, 2011.

For the year ended December 31, 2012, the Company's gross revenues totaled $3.1 billion, a 20 percent increase from gross revenues of $2.6 billion reported in 2011. The company reported net income for the year of $62.5 million, or $1.57 per diluted share, compared with a net income of $55.2 million, or $1.42 per diluted share in 2011.

The Trucker staff can be reached to comment on this article at editor@thetrucker.com.

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