Rush Enterprises Reports Record Revenue, Profit Declines
February 13, 2014
Rush Enterprises, which operates the largest network of commercial vehicle dealerships in North America, reported record annual revenues of $3.4 billion in 2013 compared to $3.1 billion in 2012, while net profit slid to $49.2 million compared to $$62.5 million a year earlier.
In the fourth quarter of 2013 gross revenues totaled $925.2 million, a 26.3% increase from $732.3 million reported for the fourth quarter of 2012. Net income for the quarter was $14.9 million compared to $14.2 million a year earlier.
"2013 was a year of growth. We expanded the Rush Truck Centers network to 107 locations in 20 states across the country. We made substantial progress towards our growth strategy in two ways – by investing in our core Peterbilt Division and expanding our Navistar footprint," said W. M. Rush, chairman, CEO and president of Rush Enterprises.
Last year the company opened a new Peterbilt, Hino and Paclease dealership and leasing operation in Corpus Christi and renovated existing facilities in Laredo, Houston and Dallas to increase square footage and capabilities. It also has projects underway to construct new facilities in San Antonio and Denver, and increase capacity in Abilene, Texas and Whittier, Calif. in 2014.
“We also installed dedicated natural gas service bays at certain dealerships in Oklahoma and Texas and have plans underway for similar investments in Arizona, Colorado, Florida, Tennessee, and Texas. When completed, these projects will result in a direct investment of more than $40 million in our Peterbilt Division," said Rush.
Last year Rush also significantly expanded its dealership network. "We acquired certain assets of Prairie International in Central Illinois in October 2013, and Chicago International Trucks and Indy Truck Sales in January 2014, both of which operate International commercial truck dealerships and Idealease commercial lease and rental operations.
“With these newly acquired locations and others previously acquired in Ohio, North Carolina, Kansas, Missouri and Virginia since Dec. 31, 2012, we have more than doubled the size of our Navistar Division locations. We believe these acquired stores will cumulatively produce approximately $1 billion in annual revenue in 2014," Rush said.
Rush also acquired locations in the Midwest and Mid-Atlantic United States, where Navistar has strong market share and where did not have a significant presence
Aftermarket services accounted for 64.4% of the company's total gross profits in 2013 with parts, service and body shop revenues reaching a new record of $988.3 million, up 20.9% over 2012.
In 2013, Rush's Class 8 retail sales of 9,545 units accounted for 5.1% of the total U.S. Class 8 retail truck sales market.
Rush's U.S. Class 4-7 medium-duty truck sales reached 8,441 units in 2013, up 18% over 2012, and accounted for 4.7% of the U.S. Class 4-7 market. Light-duty truck sales also increased 41% over last year.