One of the nation’s largest operators of commercial vehicle dealerships in North American said it set several records as it reported financial results this week.
Texas-based Rush Enterprises Inc., which operates Rush Truck Centers, had record annual revenues of $4.7 billion in 2014 compared to $3.4 billion the year before, a 39.7% increase.
Net income was $80 million compared to $49.2 million during the same time frame, while it achieved $1.96 per diluted share compared $1.22 per diluted share in 2013.
In the fourth quarter of 2014, Rush’s gross revenues totaled $1.3 billion, a 45.4% increase from $925.2 million a year earlier.
Net income for the quarter was $24.6 million, or 60 cents per diluted share, compared to $14.9 million, or 37 per diluted share in the 2013 quarter.
"Our execution led to record-setting performance including annual revenues, net income, Class 4 through Class 8 new and used truck sales, aftermarket revenues, lease and rental revenues and absorption ratio,” said W. M. "Rusty" Rush, chairman, CEO and president of Rush Enterprises.
In 2014, Rush Enterprises said its Class 8 retail sales accounted for 7.1% of the total U.S. Class 8 market. It sold 15,833 Class 8 trucks, an increase of 66% compared to 2013, significantly outpacing the U.S. market, which increased only 19.4%.
"Class 8 truck sales climbed during the fourth quarter, a trend that began from last spring,” said Mr. Rush. “Large fleets continued replacing aged vehicles to upgrade equipment to more cost-efficient technology and appeal to a wider range of drivers. Stock truck sales also continued to improve as smaller fleets and vocational operators took advantage of increased activity in construction and other market segments across the country.”
Rush's said its Class 4 through Class 7 medium-duty truck sales reached 9,922 units in 2014, up 17.5% over 2013, and accounted for 4.9% of the total U.S. Class 4 through Class 7 market.
Aftermarket services accounted for 62.6% of the company's total gross profits in 2014 with parts, service and body shop revenues reaching a new record of $1.3 billion, up 33.1% over 2013.
The company said it has expanded its Rush Truck Centers dealership network, to include a total of 112 locations in 20 states.
Looking ahead to 2015, Mr. Rush said the company expects demand for Class 8 trucks to remain strong as fleets upgrade to new equipment and activity in construction continues, but could be moderated somewhat by the continued shortage of drivers.
“We expect Class 4 through Class 7 new truck sales will remain strong in 2015 as medium-duty fleets also upgrade to new equipment, and longer lead times from Class 4 through Class 7 OEMs drive the need for our ready-to-roll inventory," said Rush. "We also expect ongoing benefit from our ability to offer a range of medium-duty product as fleets consolidate their supplier base and look for one source to meet a variety of their vehicle needs."