Commercial truck dealership chain Rush Enterprises reported record high profit and revenue during the third quarter, as the company's Class 8 truck sales outpaced national numbers.
Net income totaled $23.5 million, or 57 cents per diluted share, compared with $15.2 million, or 37 cents per diluted share the same time last year.
Revenue increased to $846.3 million from $615.6 during the same time period.
"The positive impact of continued moderate freight growth and economic improvement in the third quarter contributed to the company achieving another quarter of record performance in total revenues, net income, Class 8 new truck sales and market share, aftermarket sales and absorption," said W.M. "Rusty" Rush, chairman, CEO and president.
Rush said its Class 8 retail sales accounted for a record 7.4% of the U.S. market in the third quarter and increased by 68% over the third quarter of 2013, significantly outpacing U.S. Class 8 retail sales, which increased by 20% over the same time period.
The company said its Class 4 through Class 7 truck sales, which accounted for 4.8% of the total U.S. market in the third quarter of 2014, increased 7% over the third quarter of 2013.
"Large fleets continued to replace aged vehicles to improve uptime, capitalize on gains in fuel efficiency, and appeal to a wider pool of potential drivers," Rush said. Stock truck sales also rose as demand from small and mid-size fleets operating in vocational segments continued.
Third quarter Class 4 through Class 7 truck sales accounted for the second largest quarterly sales volume in the company's history.
"We believe this was a direct result of our investment in a large inventory of ready-to-roll equipment, which allows us to meet the immediate demands of vocational customers, particularly those in construction, and will continue to differentiate us as lead times from medium-duty truck manufacturers lengthen," Rush said.
Aftermarket services remained strong for Rush and accounted for approximately 63% of the company's total gross profits in the third quarter of 2014, according to the company. Third quarter parts, service and body shop revenues increased by 32.3% as compared to the third quarter of 2013
"Continued repair and maintenance of aged vehicles, increased activity in pre-delivery inspection and vehicle modifications resulting from new truck sales, and service support for a broad range of market segments continued to drive our strong aftermarket services revenues this quarter," said Rush. "Efforts to incorporate consistent operating standards into our customer-focused service culture and our ability to offer a range of unique solutions such as Rapid Parts call centers, mobile services and natural gas service also continued to positively impact aftermarket revenues.”
More information is on the Rush Enterprises website.