Truck Dealership Rush Profit Drops Despite Higher Sales
April 22, 2014
The largest network of commercial truck dealers in North America saw a drop in its first quarter profit despite a 26.7% gain in its revenue.
Rush Enterprises net income was $12 million, a decline of 11.1% form a year earlier, or 30 cents per diluted share, compared with net income of $13.5 million, or 30 cents per diluted share the first quarter of 2013
Gross revenues for the Texas-based operation totaled $958.7 million, compared to $756.8 million reported for the first quarter of 2013.
"Our truck sales performance outpaced the U. S. Class 8 retail sales market and parts, service and body shop revenues topped $300 million, setting a new quarterly record, despite harsh weather conditions and multiple shutdown days at our dealerships in Georgia, Illinois, Indiana, North Carolina, Texas and Virginia during the quarter,” said W. M. "Rusty" Rush, Chairman, CEO and President of Rush Enterprises. “We believe these shutdown days represent approximately $3.5 to 4 $million in lost revenue potential, and equate to approximately two cents of earnings per share."
Parts, service and body shop sales revenue was $309 million in the first quarter of 2014, compared to $231.5 million in the first quarter of 2013.
The company delivered 2,688 new heavy-duty trucks, 1,966 new medium-duty commercial vehicles, 486 new light-duty commercial vehicles and 1,703 used commercial vehicles during the first quarter of 2014. This compares to 2,065 new heavy-duty trucks, 1,954 new medium-duty commercial vehicles, 395 new light-duty commercial vehicles and 1,414 used trucks during the first quarter of 2013.
Rush's Class 4-7 medium-duty sales increased 1% over the first quarter of 2013, accounting for 4.6% of the total U.S. market. "Our first quarter Class 4-7 truck sales continued at 2013 levels, with strong activity in the medium-duty fleet, construction, utility and beverage segments of the market," said Rush.
You can read more about Rush’s first quarter performance on its website.