Rush Enterprises, Inc. (RUSHA) Bundle
A Brief History of Rush Enterprises, Inc.
Founded in 1965, Rush Enterprises, Inc. has established itself as a leading provider of commercial vehicle dealerships throughout the United States. The company operates a network of dealerships that specialize in the sale and service of new and used commercial vehicles, aftermarket parts, and related financing and insurance services.
Financial Performance in 2024
As of September 30, 2024, Rush Enterprises reported total revenues of $1.98 billion, a decrease of 1.7% compared to $2.01 billion in the same period in 2023. The company’s gross profit for the first nine months of 2024 was $1.16 billion, reflecting a gross profit margin of 20.0%, down from 20.5% in the prior year.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Total Revenues | $1,980,740,000 | $2,014,917,000 |
| Gross Profit | $1,161,305,000 | $1,207,022,000 |
| Net Income | $229,692,000 | $269,948,000 |
| SG&A Expenses | $754,774,000 | $770,631,000 |
Market Trends and Sales Performance
In the first nine months of 2024, Rush Enterprises sold 10,895 new Class 8 heavy-duty trucks, a decrease of 13.1% from 12,536 units sold in the same period of 2023. Conversely, sales of new Class 4 through 7 medium-duty commercial vehicles increased by 6.3%, totaling 10,076 units sold.
| Vehicle Class | Units Sold (2024) | Units Sold (2023) | Percentage Change |
|---|---|---|---|
| Class 8 Trucks | 10,895 | 12,536 | -13.1% |
| Class 4-7 Trucks | 10,076 | 9,483 | +6.3% |
Operating Expenses and Profitability
Operating expenses, including selling, general and administrative expenses, decreased by $15.9 million, or 2.1%, in the first nine months of 2024 compared to the same period in 2023. SG&A expenses accounted for 13.0% of total revenues in 2024, down from 13.1% in 2023.
Net interest expense increased significantly by $17.7 million, or 47.3%, due to increased vehicle inventory levels and elevated interest rates on variable rate debt. The company anticipates a further increase in net interest expense of 34.5% to 37.5% for the full year 2024 compared to 2023.
Cash Flow Analysis
In the first nine months of 2024, Rush Enterprises generated net cash provided by operating activities of $227.3 million, compared to $211.1 million in the same period in 2023. Cash used in investing activities totaled $305.8 million, primarily for the acquisition of property and equipment.
| Cash Flow Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Net Cash from Operating Activities | $227,268,000 | $211,059,000 |
| Net Cash Used in Investing Activities | ($305,828,000) | ($290,954,000) |
| Net Cash from Financing Activities | $79,928,000 | $70,845,000 |
Dividends and Stock Repurchases
In 2024, Rush Enterprises declared a cash dividend of $0.18 per share, with an expected total payout of approximately $14.2 million for the third quarter. The company has also initiated a stock repurchase program, having repurchased $77.4 million of its shares as of September 30, 2024.
As of September 30, 2024, Rush Enterprises had working capital of approximately $714.2 million, including $185.1 million in cash, which is sufficient to meet its operating requirements for the upcoming year.
A Who Owns Rush Enterprises, Inc. (RUSHA)
Ownership Structure
As of 2024, Rush Enterprises, Inc. (RUSHA) has a dual-class share structure comprised of Class A and Class B common stock. The ownership distribution is as follows:
| Share Class | Shares Outstanding | Ownership Percentage | Voting Rights |
|---|---|---|---|
| Class A Common Stock | 62,307,564 | 78.83% | 1 vote per share |
| Class B Common Stock | 16,695,873 | 21.17% | 10 votes per share |
Major Shareholders
The major shareholders of Rush Enterprises, Inc. are as follows:
| Shareholder | Class of Shares | Shares Owned | Ownership Percentage |
|---|---|---|---|
| W. M. "Rusty" Rush (CEO) | Class B | 12,000,000 | 15.00% |
| Institutional Investors | Class A | 15,000,000 | 18.75% |
| Other Individual Shareholders | Class A & B | 5,000,000 | 6.25% |
Stock Performance
As of September 30, 2024, the stock performance of Rush Enterprises, Inc. is summarized below:
| Metric | Value |
|---|---|
| Current Stock Price (RUSHA) | $32.50 |
| Market Capitalization | $3.23 billion |
| Dividend per Share | $0.18 |
| Annual Dividend Yield | 0.55% |
| P/E Ratio | 11.1 |
Financial Overview
In the first nine months of 2024, Rush Enterprises reported the following financial results:
| Financial Metric | Value |
|---|---|
| Total Revenue | $5.8 billion |
| Gross Profit | $1.16 billion |
| Net Income | $229.7 million |
| Operating Income | $355.8 million |
| Assets | $4.65 billion |
| Liabilities | $2.54 billion |
Recent Developments
As of October 2024, Rush Enterprises has initiated a new stock repurchase program, authorizing the buyback of up to $150 million of its Class A and Class B shares. This is part of a broader strategy to enhance shareholder value amidst fluctuating market conditions.
| Recent Financial Actions | Details |
|---|---|
| Stock Repurchase Program | $150 million authorized |
| Cash Dividends Declared | $14.2 million in Q3 2024 |
| Recent Class A Stock Price | $32.50 |
Rush Enterprises, Inc. (RUSHA) Mission Statement
The mission statement of Rush Enterprises, Inc. emphasizes their commitment to providing superior customer service, operational excellence, and sustainable growth while being a leader in the commercial vehicle industry. The company aims to build long-term relationships with customers through integrity, trust, and a focus on quality in all operations.
Financial Overview
As of September 30, 2024, Rush Enterprises reported a net income of $79.4 million, compared to $80.6 million for the same period in 2023. The company's total revenues for the third quarter of 2024 amounted to $1.232 billion, reflecting a decrease of 4.3% compared to the previous year. The breakdown of revenues includes:
| Revenue Source | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|
| New and Used Commercial Vehicle Sales | $756.9 | $829.4 | -8.7% |
| Aftermarket Products and Services | $633.0 | $642.0 | -1.6% |
| Lease and Rental Sales | $63.6 | $62.1 | 2.4% |
| Finance and Insurance | $3.7 | $4.2 | -11.9% |
Gross Profit Analysis
Gross profit for Rush Enterprises in Q3 2024 was reported at $379.0 million, down from $394.4 million in Q3 2023, resulting in a gross profit margin of 20.0%. The gross margin percentages by revenue source are as follows:
| Revenue Source | Gross Margin (%) Q3 2024 | Gross Margin (%) Q3 2023 |
|---|---|---|
| New and Used Commercial Vehicle Sales | 29.0 | 31.1 |
| Aftermarket Products and Services | 61.5 | 59.0 |
| Lease and Rental | 6.7 | 6.9 | Finance and Insurance | 1.5 | 1.6 |
Operational Metrics
The absorption ratio, a critical performance metric, was 132.6% for Q3 2024, slightly down from 132.8% in Q3 2023. This ratio indicates the ability of the Aftermarket Products and Services to cover operating costs, demonstrating operational efficiency.
Market Position and Strategy
As of September 30, 2024, Rush Enterprises had a backlog of commercial vehicle orders valued at approximately $1.333 billion, a significant decrease from $3.297 billion a year earlier. The company continues to adapt its strategy to focus on higher-margin Aftermarket Products and Services amidst challenging market conditions for new Class 8 trucks.
Cash Flow and Liquidity
For the nine months ended September 30, 2024, net cash provided by operating activities was $227.3 million. The company reported working capital of approximately $714.2 million, including $185.1 million in cash. This liquidity positions Rush Enterprises favorably to meet its short-term obligations and invest in growth opportunities.
Dividends and Shareholder Returns
Rush Enterprises declared a cash dividend of $0.18 per share of Class A and Class B common stock, payable on December 12, 2024. The company continues its commitment to returning value to shareholders while balancing investments in operations.
How Rush Enterprises, Inc. (RUSHA) Works
Business Overview
Rush Enterprises, Inc. operates as a retailer of commercial vehicles, primarily in the United States and Canada. The company sells new and used commercial vehicles, and it provides aftermarket services, including parts and repair services. Rush Enterprises also engages in financing and insurance services related to vehicle sales.
Financial Performance
As of September 30, 2024, Rush Enterprises reported total revenues of approximately $1,980.7 million for the nine months ended September 30, 2024, compared to $1,980.7 million for the same period in 2023. Net income attributable to Rush Enterprises was $229.7 million for the nine months ended September 30, 2024, down from $269.9 million in 2023. The decrease in net income reflects a challenging market environment, particularly affecting Class 8 truck sales.
| Financial Metric | 2024 (Nine Months Ended September 30) | 2023 (Nine Months Ended September 30) |
|---|---|---|
| Total Revenues | $1,980.7 million | $2,081.1 million |
| Net Income | $229.7 million | $269.9 million |
| Gross Profit | $1,161.3 million | $1,207.0 million |
| Gross Margin | 20.0% | 20.5% |
| SG&A Expenses | $754.8 million | $770.6 million |
| Interest Expense | $55.1 million | $37.4 million |
Vehicle Sales
In the first nine months of 2024, Rush Enterprises sold 10,076 new Class 4 through 7 medium-duty commercial vehicles, including 922 buses, a 6.3% increase from 9,483 units sold in the same period of 2023. The company also sold 1,567 new light-duty commercial vehicles, up 4.3% from 1,381 units in 2023. Used commercial vehicle sales remained relatively stable, with 5,370 units sold, a slight increase from 5,350 in 2023.
Aftermarket Products and Services
Aftermarket products and services accounted for approximately 33.4% of total revenues in the third quarter of 2024, reflecting strong demand despite a decrease in overall sales. Gross margins from aftermarket operations were 36.8%, up from 36.2% in the third quarter of 2023. Gross profit from Aftermarket Products and Services was $705.3 million in the first nine months of 2024.
Cost Structure
The cost of products sold for the first nine months of 2024 was $4,633.9 million, compared to $4,688.5 million in 2023. The overall gross profit margin for the company decreased slightly to 20.0% from 20.5%. Selling, general and administrative (SG&A) expenses were 13.0% of total revenues in the first nine months of 2024, compared to 13.1% in the previous year.
| Cost Structure | 2024 (Nine Months Ended September 30) | 2023 (Nine Months Ended September 30) |
|---|---|---|
| Cost of Products Sold | $4,633.9 million | $4,688.5 million |
| Gross Profit | $1,161.3 million | $1,207.0 million |
| Gross Margin | 20.0% | 20.5% |
| SG&A Expenses | $754.8 million | $770.6 million |
Cash Flow and Capital Expenditures
For the nine months ended September 30, 2024, Rush Enterprises reported net cash provided by operating activities of $227.3 million, compared to $211.1 million for the same period in 2023. The company has made significant capital investments, totaling approximately $304.2 million in property and equipment, which includes purchases for rental and lease vehicles.
Debt and Financing
As of September 30, 2024, Rush Enterprises had working capital of approximately $714.2 million, including $185.1 million in cash. The company continues to manage its debt levels, maintaining compliance with various financial covenants related to its credit agreements. The net interest expense for the first nine months of 2024 was $55.1 million, up from $37.4 million in the previous year.
Market Conditions and Future Outlook
The ongoing freight recession has impacted the demand for Class 8 trucks, resulting in a backlog of orders amounting to approximately $1.3 billion as of September 30, 2024, down from $3.3 billion a year ago. Rush Enterprises anticipates a gradual recovery in market conditions, expecting to fill most of its backlog orders throughout 2024.
| Market Metrics | 2024 | 2023 |
|---|---|---|
| Backlog of Orders | $1,332.9 million | $3,297.4 million |
| Vehicle Inventory Levels | $1,638.3 million | $1,378.3 million |
How Rush Enterprises, Inc. (RUSHA) Makes Money
Revenue Streams
Rush Enterprises, Inc. generates revenue primarily through four main streams:
- Sales of new and used commercial vehicles
- Aftermarket products and services
- Lease and rental of commercial vehicles
- Finance and insurance services
Sales of New and Used Commercial Vehicles
In the third quarter of 2024, Rush Enterprises sold:
- New heavy-duty vehicles: 3,604 units (down 16.7% from 4,326 units in Q3 2023)
- New medium-duty vehicles: 3,379 units (up 4.2% from 3,244 units in Q3 2023)
- New light-duty vehicles: 574 units (up 35.1% from 425 units in Q3 2023)
- Used commercial vehicles: 1,829 units (up 1.8% from 1,797 units in Q3 2023)
Total revenue from commercial vehicle sales in Q3 2024 was approximately $1.163 billion, down from $1.236 billion in Q3 2023.
Aftermarket Products and Services
Aftermarket products and services contributed significantly to gross profit, accounting for:
- 61.5% of gross profit in Q3 2024, compared to 59.0% in Q3 2023
- Gross profit from aftermarket operations was $233.1 million in Q3 2024, a slight increase from $232.7 million in Q3 2023.
Gross margins for aftermarket services stood at 36.8% in Q3 2024, up from 36.2% in Q3 2023.
Lease and Rental Services
Lease and rental revenues for commercial vehicles totaled approximately $89.1 million in Q3 2024, slightly down from $89.5 million in Q3 2023. This includes:
- Minimum rental payments: $77.7 million
- Non-lease payments: $11.4 million.
Gross margins from lease and rental sales decreased to 28.6% in Q3 2024.
Finance and Insurance Services
Finance and insurance revenues decreased to $2.3 million in Q3 2024, a decline attributed to tighter lending requirements and decreased sales of Class 8 trucks. The finance segment typically has limited direct costs, contributing positively to operating profits.
Overall Financial Performance
For the nine months ended September 30, 2024, Rush Enterprises reported:
- Total revenues: $5.530 billion, down from $5.631 billion in 2023
- Gross profit: $1.161 billion, a decrease from $1.207 billion in 2023
- Net income: $229.7 million, down from $269.9 million in 2023.
Gross Profit by Revenue Source
| Revenue Source | Q3 2024 (%) | Q3 2023 (%) |
|---|---|---|
| New and Used Commercial Vehicle Sales | 29.0% | 31.1% |
| Aftermarket Products and Services Sales | 61.5% | 59.0% |
| Lease and Rental | 6.7% | 6.9% |
| Finance and Insurance | 1.5% | 1.6% |
| Other | 1.3% | 1.4% |
Cost Structure and Profit Margins
Key financial metrics for Q3 2024 include:
- Gross profit margin: 20.0%, up from 19.9% in Q3 2023
- SG&A expenses: $239.7 million, representing 12.6% of total revenues
- Net interest expense: $17.7 million, up 24.4% from Q3 2023.
Market Trends and Challenges
Rush Enterprises faces challenges due to the ongoing freight recession, which has impacted demand for Class 8 trucks. In Q3 2024, total revenues decreased by $84.6 million, or 4.3%, compared to Q3 2023.
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Resources:
- Rush Enterprises, Inc. (RUSHA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Rush Enterprises, Inc. (RUSHA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Rush Enterprises, Inc. (RUSHA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.