Rush Enterprises Reports Second Quarter Net Income Decreased Y-o-Y
Rush Enterprises Inc., which operates the largest network of commercial vehicle dealerships in North America, announced that for the quarter ended June 30, 2013, the company's net income was $5.6 million, or $0.14 per diluted share, compared with net income of $17.4 million, or $0.44 per diluted share, in the quarter ended June 30, 2012.
Rush Enterprises Inc., which operates the largest network of commercial vehicle dealerships in North America, announced that for the quarter ended June 30, 2013, the company's net income was $5.6 million, or $0.14 per diluted share, compared with net income of $17.4 million, or $0.44 per diluted share, in the quarter ended June 30, 2012.
During the second quarter of 2013, the company recognized a pre-tax charge of $10.8 million in its selling, general and administrative expense related to the Retirement and Transition Agreement with W. Marvin Rush. This charge resulted in a reduction of $6.6 million in net income, or $0.16 per diluted share during the second quarter.
"A lackluster new truck sales environment and increased overhead related to substantial investments made to support the continued growth of our organization made this a tough quarter," said W. M. "Rusty" Rush, Chairman, CEO and president of Rush Enterprises Inc.
Aftermarket services remained strong and accounted for more than 65% of the company's total gross profits for the second quarter of 2013. Second quarter parts, service and body shop revenues increased by 17% as compared to the second quarter of 2012. This contributed to a quarterly absorption ratio of 114.9%.
In the second quarter Rush's Class 8 retail sales, which accounted for 4.4% of the U.S. market, decreased by 26% over the same time period in 2012. Rush's Class 4-7 medium-duty sales, which accounted for 4.2% of the total U.S. market, decreased 7% over the second quarter of 2012. Light-duty truck sales increased 56%, up 191 units over the second quarter of 2012.
"As expected, both our heavy- and medium-duty new truck sales remained relatively flat compared to first quarter new truck sales," said Rush. "We expect only a slight increase in our Class 8 retail sales through the third quarter due to continued decreased activity in the energy sector and some of our large fleet customers delaying new truck purchases. Medium-duty retail truck sales are expected to remain healthy, with pockets of strength in the bus, residential construction and large fleet segments. We remain encouraged by Navistar's progress in their engine transition strategy and expect that it will translate into improving truck sales for our Navistar Division going forward."
In the second quarter, the company's gross revenues totaled $789.7 million, a 6% decrease from gross revenues of $835.8 million reported for the second quarter ended June 30, 2012.
Parts, service and body shop sales revenue was $242.9 million in the second quarter of 2013, compared to $208.3 million in the second quarter of 2012.
The company delivered 2,088 new heavy-duty trucks, 2,001 new medium-duty commercial vehicles, 534 new light-duty commercial vehicles and 1,518 used commercial vehicles during the second quarter of 2013, compared to 2,813 new heavy-duty trucks, 2,141 new medium-duty commercial vehicles, 343 new light-duty commercial vehicles and 1,242 used commercial vehicles during the second quarter of 2012.
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