Rush Enterprises Inc., which operates the largest network of commercial vehicle dealerships in North America, 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% 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 million of its shares of Class A common stock.
"In addition to achieving record revenue and net income in 2012, we also realized a 116% annual absorption rate, a 30% increase in medium-duty truck sales and we expanded our Rush Truck Centers network footprint to include 78 dealership locations," added W. M. "Rusty" Rush, CEO and president of Rush Enterprises Inc.
The company ended the year with $199 million in cash and cash equivalents.
Aftermarket services accounted for 63.4% 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% over 2011. This contributed to a new record annual absorption rate of 116%.
"Service technicians now account for more than 36% of our 4,400 employee workforce, and the company continues to invest in training, certification and diagnostic equipment to support our service professionals," Rusty Rush explained.
"Additionally, we continue to expand our fleet of mobile service units. We now have approximately 200 mobile service units across our network and an additional 100 technicians supporting our customers at their shops or job sites throughout the country," added Rusty Rush.
In 2012, Rush's Class 8 retail sales increased by 10% over 2011, and accounted for 5% 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.
Rush's U.S. Class 4-7 medium-duty truck sales reached 7,126 units in 2012, up 30% over 2011, and accounted for 4.3% of the U.S. Class 4-7 market.
In the fourth quarter ended Dec, 31, 2012, the company's gross revenues totaled $732.3 million, a 5.6% decrease from gross revenues of $776.1 million reported for the fourth quarter ended Dec. 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 Dec. 31, 2011.
For the year ended Dec. 31, 2012, the company's gross revenues totaled $3.1 billion, a 20% 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.
Parts, service and body shop revenue was $201.6 million in the fourth quarter of 2012, compared to $176.7 million in the fourth quarter of 2011. The company delivered 2,102 new heavy-duty trucks, 1,789 new medium-duty commercial vehicles, 393 new light-duty commercial vehicles and 1,039 used commercial vehicles during the fourth quarter of 2012, compared to 2,872 new heavy-duty trucks, 1,711 new medium-duty commercial vehicles, 292 new light-duty commercial vehicles and 1,215 used commercial vehicles in the fourth quarter of 2011.
Parts, service and body shop revenue was $817.3 million in the year ended 2012, compared to $675.3 million in the year ended 2011.
The company sold 23,171 new and used commercial vehicles in 2012, a 14.8% increase compared to 20,189 new and used commercial vehicles in 2011. The company delivered 9,925 new heavy-duty trucks, 7,126 new medium-duty commercial vehicles, 1,376 new light-duty commercial vehicles and 4,744 used commercial vehicles during 2012, compared 9,052 new heavy-duty trucks, 5,469 new medium-duty commercial vehicles, 1,019 new light-duty commercial vehicles and 4,649 used commercial vehicles during 2011.