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Truck dealership Rush Enterprises Inc. posted record net profit and revenue in the second quarter, citing strong demand for freight and consumer spending that led to higher sales of utility vehicles, parts and services.
Net income for the three months ended June 30 was $110.6 million, or $1.92 per diluted share, on revenue of $1.8 billion, compared to net income of $58 million. dollars, 1 dollar, and revenues of 1.3 billion dollars a year earlier.
The company declared a cash dividend of 21 cents per common share, an increase of 10.5% from the prior quarter.
“New truck production capacity continues to be constrained due to ongoing component supply chain issues, but our Class 8 new truck sales significantly outpaced the market in the second quarter,” the president said. -General Manager WM “Rusty” Rush in a statement. “In addition, we achieved strong aftermarket revenue growth due to strong demand for parts and service.”
The company said it sold 4,168 new Class 8 trucks in the second quarter, a 41% increase from the second quarter of 2021, which accounted for 6.4% of the U.S. market for new Class 8 and 1.7 trucks. % of Canadian Class 8 truck market. market.
Revenues from new heavy vehicles were $691 million, compared to $435 million a year earlier.
Rush Enterprises Second Quarter 2022 Earnings Report by Transportation Topics on Scribd
Rush sold 2,815 new Class 4-7 medium utility vehicles in the second quarter, which was flat compared to the second quarter of 2021, representing 5.1% of the U.S. Class 4-7 and 1 utility vehicle market, 3% of the Canadian class 5 market. -7 commercial vehicle market.
Revenue from new medium vehicles, including buses, was $240 million, compared with $226 million a year earlier.
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“It should be noted that we are an industry leader in alternative energy utility vehicles, including compressed natural gas vehicles and electric vehicles, and we are seeing strong interest from Class 8 and mid-duty customers with respect to these vehicles, which we hope will continue to move forward,” Rush said.
The company said aftermarket products and services accounted for about 62% of its total gross profit in the quarter, with parts, service and collision center revenue reaching $598.3 million.
Rush highlighted the value of acquiring 19 dealerships from The Summit Truck Group in the fourth quarter of 2021.
“These additional locations, in addition to the 15 locations in Canada whose results of operations are now consolidated in the company’s financial statements following the acquisition of an additional 30% interest in Rush Truck Centers of Canada ltd. and the $9.8 million gain associated with it, positively impacted our financial performance in the second quarter,” Rush said.
Rush Truck Leasing operates 57 PacLease and Idealease franchises in the United States and Canada with over 10,100 trucks in its lease and rental fleet, and over 1,600 trucks under maintenance contract. Rental and leasing revenue increased 31.2% in the second quarter of 2022 compared to a year ago – mainly due to the fourth quarter acquisitions of Summit Idealease locations, according to the San Antonio-based company.
For the six-month period, net profit was $203 million, $3.52, on revenue of $3.3 billion, compared to net profit of $103 million, $1.79, and revenue of $2.5 billion a year earlier.
The company owns and operates Rush Truck Centers, the largest commercial vehicle dealership network in North America, with more than 150 locations in 23 states and Ontario, Canada, including 125 franchised dealerships.
The company sells trucks from Peterbilt Motors Co., a brand of Paccar Inc.; the international brand of Navistar Inc., a subsidiary of Traton SE; Hino Trucks, a Toyota Group company; Isuzu Commercial Truck of America Inc.; and Ford Motor Co. Its bus brands include Navistar’s IC Bus, and Blue Bird.