Rush Enterprises, Inc. Reports First Quarter Results
Category: Trucking News
Posted by: dgehman
SAN ANTONIO, (GLOBE NEWSWIRE) -- Rush Enterprises, Inc. (Nasdaq:RUSHA) (Nasdaq:RUSHB), which operates the largest network of commercial vehicle dealerships in North America, today announced results for the first quarter ended March 31, 2011.
In the first quarter, the Company's gross revenues totaled $446.1 million, a 49.1% increase from gross revenues of $299.3 million reported for the first quarter ended March 31, 2010. Income from continuing operations for the quarter was $7.3 million, or $0.19 per diluted share, compared with income from continuing operations of $1.9 million, or $0.05 per diluted share, in the quarter ended March 31, 2010. The Company reported net income for the quarter of $7.3 million, or $0.19 per diluted share, compared with a net income of $2.2 million, or $0.06 per diluted share in the first quarter of 2010.
The Company delivered 1,345 new heavy-duty trucks, 923 new medium-duty commercial vehicles and 1,107 used commercial vehicles during the first quarter of 2011, compared to 969 new heavy-duty trucks, 611 new medium-duty trucks and 686 used trucks during the first quarter of 2010. Parts, service and body shop sales revenue was $145.6 million in the first quarter of 2011, compared to $101.8 million in the first quarter of 2010.
"We are excited with the performance of our parts, service and body shop business, which achieved record high monthly revenues in March," said W.M. "Rusty" Rush, Rush Enterprises Inc. President and Chief Executive Officer. "Despite lost operating days caused by inclement weather conditions throughout most of the country in January and February, we were able to achieve a very strong 109% percent absorption rate for the quarter."
"As expected, deliveries of Class 8 trucks remained challenging in the first quarter. However, we are greatly encouraged by the sustained increase in U.S. Class 8 new truck orders. If orders continue at the current pace, we could see 2011 U.S. Class 8 truck sales in the range of 180,000 to 200,000 units, compared to 110,000 units in 2010, with deliveries increasing as early as the second quarter," Mr. Rush explained.
"With confidence in our growth strategy, we completed two strategic acquisitions in the Southeast this quarter. In February, we acquired Heintzelman's Ford in Orlando, Florida, adding the fourth Ford franchise to our dealership network. In March, we acquired the International, Hino, Isuzu, UD, IC Bus and Workhorse franchises from Asbury Automotive's Nalley Motor Trucks in metro-Atlanta. The Nalley Motor Trucks acquisition is significant in building our Navistar Division, which has grown since its inception last May to include15 full service dealerships with 2 dedicated collision centers. We are strongly committed to working with Navistar to build a successful network and look forward to opportunities to work together in the future," concluded Rusty Rush.
"We are pleased to welcome many new employees into the Rush Enterprises organization from our newly acquired locations. We remain committed to integrating our 'The Customer is the Boss' philosophy into our new dealership locations and extending our reputation for excellence in customer service in these markets," said W. Marvin Rush, Chairman and Founder of Rush Enterprises.
Conference Call Information
Rush Enterprises will host its quarterly conference call to discuss earnings for the first quarter on Thursday, April 21, 2011, at 11 a.m. Eastern/10 a.m. Central. The call can be heard live by dialing 877-638-4557 (US) or 914-495-8522 (International) or via the Internet at investor.
For those who cannot listen to the live broadcast, the webcast will be available on our website at the above link until July 15, 2011. Listen to the audio replay until April 28, 2011 by dialing 800-642-1687 (US) or 706-645-9291 (International) and entering the Conference ID 58551935.
About Rush Enterprises, Inc.
Rush Enterprises, Inc. owns and operates the largest network of commercial vehicle dealerships in the United States, representing truck and bus manufacturers including Peterbilt, International, Hino, Isuzu, Ford, UD, Blue Bird, IC, Diamond and Elkhart. The Company's vehicle centers are strategically located in high traffic areas on or near major highways in 14 states throughout the Southern and Western United States. These one-stop centers offer an integrated approach to meeting customer needs -- from sales of new and used vehicles to aftermarket parts, service and body shop operations plus a wide array of financial services, including financing, insurance, leasing and rental. Rush Enterprises' operations also provide vehicle up-fitting, chrome accessories and tires. For more information, please visit www.rushenterprises.com.