Rush Enterprises Reaches $1.34B+ in Revenue in Q1/2019
APR 26, 2019 - 7:07 am
Commercial vehicle dealership network Rush Enterprises achieved revenues of $1.348 billion and net income of $37.1 million, or $0.98 per diluted share for the first quarter of 2019, compared with revenues of $1.241 billion and net income of $21 million, or $0.51 per diluted share, for the same quarter in 2018.
The first quarter 2018 results included an additional pre-tax charge to amortization expense of $10.2 million, or $0.19 per diluted share, associated with the replacement of certain components of the company’s enterprise resource planning software platform. Excluding the charge related to the platform, the company’s adjusted net income the first quarter of 2018 was $28.7 million, or $0.70 per diluted share.
Additionally, the company’s board of directors declared a cash dividend of $0.12 per share of Class A and Class B common stock, to be paid on June 10, 2019, to all shareholders of record as of May 9, 2019.
“We are very proud of our strong financial results this quarter,” said W.M. “Rusty” Rush, chairman, president and CEO of Rush Enterprises. “The healthy economy and commercial vehicle market positively impacted our results, as did the growth we are seeing from our aftermarket strategic initiatives.”
Aftermarket products and services accounted for approximately 64% of the company’s total gross profit in the first quarter of 2019, with parts, service and collision center revenues reaching $438.4 million, up 9.5% compared to the first quarter of 2018. The company achieved a quarterly absorption ratio of 121.5% in the first quarter of 2019.
New U.S. Class 8 retail truck sales were 64,374 units in the first quarter, up 24.5% over the same time period last year, according to ACT Research. The company sold 3,558 new Class 8 trucks in the first quarter, an increase of 7.4% compared to the first quarter of 2018, and accounted for 5.5% of the new U.S. Class 8 truck market.
The company sold 2,614 Class 4-7 medium-duty commercial vehicles in the first quarter, a decrease of 3.4% compared to the first quarter of 2018, and accounted for 4.2% of the U.S. Class 4-7 commercial vehicle market.
In February, a subsidiary of the company purchased 50% of the equity in Rush Truck Centres of Canada Limited, which operates 14 commercial vehicle dealerships in the Province of Ontario, Canada.
Aftermarket products and services revenues were $438.4 million in the first quarter of 2019, compared to $400.3 million in the first quarter of 2018. The company delivered 3,558 new heavy-duty trucks, 2,614 new medium-duty commercial vehicles, 539 new light-duty commercial vehicles and 1,840 used commercial vehicles during the first quarter of 2019, compared to 3,312 new heavy-duty trucks, 2,705 new medium-duty commercial vehicles, 431 new light-duty commercial vehicles and 1,859 used commercial vehicles during the first quarter of 2018.
The company increased its lease and rental revenues by 3% and its lease and rental gross profits by 6% in the first quarter, primarily due to increased rental fleet demand and utilization, management of operating costs and execution of its lease fleet service model.
“During the first quarter of 2019, the company repurchased $26.0 million of its common stock, bringing the total amount of repurchases to $91.9 million since we adopted a plan to repurchase up to $150 million of stock in November of 2018. In addition, we paid a cash dividend of $4.4 million during the first quarter and today we declared our fourth consecutive quarterly dividend of $0.12 per common share. I remain confident in our continued ability to generate free cash flow to grow our business while returning capital to shareholders,” said Rush.
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