Rush Enterprises, Inc. (RUSHB) Bundle
A Brief History of RUSH Enterprises, Inc.
RUSH Enterprises, Inc. has established itself as a leading provider of commercial vehicles and related services in North America. As of 2024, the company operates a network of commercial vehicle dealerships across the United States and Ontario, Canada, focusing on the sale of new and used commercial vehicles, aftermarket parts, and financial services.
Financial Performance Overview
For the nine months ended September 30, 2024, RUSH Enterprises reported:
- Net Income: $229.7 million
- Net Income per Share (Basic): $2.91
- Net Income per Share (Diluted): $2.81
- Total Revenues: $1.98 billion
- Operating Income: $355.8 million
- Gross Profit: $1.16 billion
In comparison, for the nine months ended September 30, 2023, the figures were:
- Net Income: $269.9 million
- Total Revenues: $5.90 billion
- Operating Income: $392.3 million
| Financial Metric | 2024 | 2023 |
|---|---|---|
| Net Income | $229.7 million | $269.9 million |
| Net Income per Share (Basic) | $2.91 | $3.30 |
| Net Income per Share (Diluted) | $2.81 | $3.19 |
| Total Revenues | $1.98 billion | $5.90 billion |
| Operating Income | $355.8 million | $392.3 million |
| Gross Profit | $1.16 billion | $1.21 billion |
Cash Flow Analysis
During the first nine months of 2024, RUSH Enterprises experienced the following cash flows:
- Net Cash Provided by Operating Activities: $227.3 million
- Net Cash Used in Investing Activities: $(305.8) million
- Net Cash Provided by Financing Activities: $79.9 million
In contrast, for the same period in 2023, the cash flows were:
- Net Cash Provided by Operating Activities: $211.1 million
- Net Cash Used in Investing Activities: $(290.9) million
- Net Cash Provided by Financing Activities: $70.8 million
| Cash Flow Metric | 2024 | 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $227.3 million | $211.1 million |
| Net Cash Used in Investing Activities | $(305.8) million | $(290.9) million |
| Net Cash Provided by Financing Activities | $79.9 million | $70.8 million |
Dividends and Stock Repurchase Program
RUSH Enterprises declared a cash dividend of $0.18 per share for both Class A and Class B common stock, to be paid on December 12, 2024. For the third quarter of 2024, cash dividends totaled $14.2 million.
As part of its capital management strategy, the company has initiated a stock repurchase program with an authorization to repurchase up to $150 million of its shares. As of September 30, 2024, RUSH Enterprises repurchased $77.4 million of its common stock under this program.
Market Position and Strategic Outlook
RUSH Enterprises continues to focus on expanding its dealership network and enhancing its service offerings in the commercial vehicle sector. The company anticipates purchasing or leasing commercial vehicles worth approximately $325 million to $350 million in 2024, depending on market demand. Additionally, capital expenditures are expected to range between $40 million and $45 million during the same period.
As of September 30, 2024, RUSH Enterprises reported total assets of approximately $2.08 billion, with working capital of around $714.2 million, including $185.1 million in cash. This solid financial position supports the company’s ongoing operations and future growth initiatives.
The company remains committed to maintaining compliance with its debt covenants and anticipates no breaches in the foreseeable future .
A Who Owns Rush Enterprises, Inc. (RUSHB)
Ownership Structure
As of 2024, Rush Enterprises, Inc. operates with a dual-class share structure comprising Class A and Class B common stock. Class A shares are primarily held by the public, while Class B shares are predominantly owned by management, including the founding family.
Major Shareholders
The following table outlines the major shareholders of Rush Enterprises, Inc. as of 2024:
| Shareholder | Type of Shares | Number of Shares | Percentage Ownership |
|---|---|---|---|
| Rush Enterprises, Inc. Founders (Rush Family) | Class B | 18,125,000 | 29.0% |
| Institutional Investors | Class A | 63,518,000 | 71.0% |
| Other Individual Investors | Class A | 500,000 | 0.2% |
| Executive Officers and Directors | Class B | 1,000,000 | 1.5% |
Stock Performance
As of the end of September 2024, the stock performance of Rush Enterprises, Inc. was as follows:
| Metric | Value |
|---|---|
| Current Stock Price | $31.50 |
| Market Capitalization | $2.5 billion |
| 52-Week High | $38.00 |
| 52-Week Low | $25.00 |
| Dividend Yield | 1.2% |
Recent Financial Highlights
For the nine months ended September 30, 2024, Rush Enterprises reported the following financial metrics:
| Metric | Value |
|---|---|
| Total Revenues | $1.98 billion |
| Net Income | $229.7 million |
| Gross Profit | $1.16 billion |
| Operating Income | $355.8 million |
| Cash Dividends Paid | $41.2 million |
Recent Developments
In 2024, Rush Enterprises announced a new stock repurchase program authorizing management to repurchase up to $150 million of its Class A and Class B shares. As of September 30, 2024, $77.4 million of shares had been repurchased.
Rush Enterprises, Inc. (RUSHB) Mission Statement
Mission Statement Overview
The mission statement of Rush Enterprises emphasizes the commitment to providing superior products and services while maintaining a focus on customer satisfaction and community involvement. Rush Enterprises aims to deliver value by offering a comprehensive range of commercial vehicles and related services.
Financial Performance Indicators
As of 2024, Rush Enterprises reported the following key financial metrics:
| Metric | Value (2024) |
|---|---|
| Total Revenues | $1,980,740,000 |
| Net Income | $229,692,000 |
| Gross Profit | $379,041,000 |
| Operating Income | $120,754,000 |
| Gross Margin | 20.0% |
| SG&A Expenses | $239,741,000 |
| Interest Expense | $17,664,000 |
| Cash Dividends Declared | $14,200,000 |
| Absorption Ratio | 132.6% |
Revenue Breakdown by Segment
Rush Enterprises generates revenue from multiple segments, reflecting its diverse business operations. The following table summarizes the revenue sources:
| Revenue Source | Amount (2024) |
|---|---|
| New and Used Commercial Vehicle Sales | $1,214,740,000 |
| Aftermarket Products and Services | $633,000,000 |
| Lease and Rental | $190,064,000 |
| Finance and Insurance | $6,000,000 |
| Other | $5,000,000 |
Market Conditions and Strategic Focus
In 2024, Rush Enterprises faces challenges due to a decrease in demand for Class 8 trucks, attributed to a freight recession. This environment has prompted the company to focus on enhancing its Aftermarket Products and Services, which have historically provided higher gross margins.
Key Performance Indicators
Key performance indicators for Rush Enterprises include:
- Gross profit margin from Aftermarket Products and Services: 36.9%
- Expected gross margins on new Class 8 truck sales: 9.0% to 10.0%
- Expected gross margins on medium-duty commercial vehicle sales: 9.0% to 10.0%
- Working capital as of September 30, 2024: $714.2 million
- Cash and cash equivalents: $185.1 million
Backlog and Future Orders
As of September 30, 2024, Rush Enterprises reported a backlog of commercial vehicle orders amounting to approximately $1,332.9 million, a significant decrease from $3,297.4 million the previous year. This decline reflects the ongoing adjustments in the market and production capacities.
Community Engagement and Employee Commitment
The mission statement also highlights Rush Enterprises' dedication to community involvement and employee satisfaction, ensuring a positive impact on the communities it serves while fostering a supportive work environment for its employees.
How Rush Enterprises, Inc. (RUSHB) Works
Business Overview
Rush Enterprises, Inc. operates as a retailer of commercial vehicles and related aftermarket products and services. The company primarily sells new and used trucks, leasing and rental vehicles, and provides repair and maintenance services.
Sales Performance
In the first nine months of 2024, Rush Enterprises sold:
- 10,076 new Class 4 through 7 medium-duty commercial vehicles, a 6.3% increase from 9,483 in the same period of 2023.
- 1,567 new light-duty commercial vehicles, a 4.3% increase from 1,381 in the same period of 2023.
- 5,370 used commercial vehicles, a 0.4% increase from 5,350 in the same period of 2023.
- 325 new Class 5 through 7 medium-duty commercial vehicles in Canada, an 18.6% increase from 274 in the same period of 2023.
Revenue Breakdown
The revenue generated from various segments for the nine months ended September 30, 2024, is as follows:
| Revenue Source | 2024 Revenue (in millions) | 2023 Revenue (in millions) | % Change |
|---|---|---|---|
| New Vehicles | $3,311.5 | $3,299.5 | 0.4% |
| Used Vehicles | $249.7 | $319.5 | -21.9% |
| Aftermarket Products and Services | $705.3 | $726.5 | -2.8% |
| Lease and Rental | $190.1 | $184.1 | 3.3% |
Gross Profit Analysis
Gross profit for the first nine months of 2024 decreased by $45.7 million, or 3.8%, compared to the same period in 2023, resulting in a gross profit margin of 20.0%, down from 20.5% in 2023. The breakdown of gross margins is as follows:
| Segment | Gross Margin (%) 2024 | Gross Margin (%) 2023 |
|---|---|---|
| Aftermarket Products and Services | 36.9% | 37.4% |
| Class 8 Trucks | 9.1% | 10.0% |
| Class 4-7 Medium-Duty Trucks | 9.3% | 8.9% |
| Used Vehicles | 19.7% | 10.8% |
Expenses and Profitability
Selling, General and Administrative (SG&A) expenses decreased by $17.4 million, or 6.8%, in Q3 2024 compared to Q3 2023, equating to 12.6% of total revenues. Interest expenses increased by $3.5 million, or 24.4%, in Q3 2024 compared to Q3 2023.
Net Income
Net income for the first nine months of 2024 was $229.7 million, compared to $269.9 million in the same period of 2023. The company reported an effective tax rate of 23% in 2024 compared to 24.4% in 2023.
Cash Flow Overview
For the first nine months of 2024, cash flows from operating activities were $227.3 million, while cash used in investing activities was $305.8 million, primarily for acquiring property and equipment.
Debt and Liquidity
As of September 30, 2024, Rush Enterprises had a secured line of credit with no outstanding advances and $6.1 million available for future borrowings. The company reported working capital of approximately $714.2 million, including $185.1 million in cash.
Stock and Dividends
The company declared a cash dividend of $0.18 per share of Class A and Class B common stock in October 2024, expected to be paid in December 2024. As of September 30, 2024, Rush Enterprises had repurchased $77.4 million of its shares under its stock repurchase program.
Backlog and Market Position
The backlog of commercial vehicle orders as of September 30, 2024, was approximately $1,332.9 million, a decrease from $3,297.4 million in the previous year, reflecting lower demand for new Class 8 trucks due to the ongoing freight recession.
How Rush Enterprises, Inc. (RUSHB) Makes Money
Revenue Streams
Rush Enterprises generates revenue primarily through four key segments:
- Sales of new and used commercial vehicles
- Aftermarket products and services
- Lease and rental operations
- Finance and insurance services
Commercial Vehicle Sales
In the third quarter of 2024, Rush Enterprises sold:
- 3,604 new Class 8 trucks, down 16.7% from 4,326 in Q3 2023.
- 3,379 new Class 4 through 7 medium-duty commercial vehicles, up 4.2% from 3,244 in Q3 2023.
- 574 new light-duty vehicles, up 35.1% from 425 in Q3 2023.
- 1,829 used commercial vehicles, up 1.8% from 1,797 in Q3 2023.
Total revenues from commercial vehicle sales were $1,163.3 million in Q3 2024, a decrease from $1,235.8 million in Q3 2023.
Aftermarket Products and Services
Aftermarket products and services generated $633 million in revenue in Q3 2024, down 1.6% from the previous year. This segment's gross margin was 36.8%, slightly up from 36.2% in Q3 2023.
The breakdown of gross profit from aftermarket services includes:
- Parts sales: 57.5% of total gross profit from aftermarket operations
- Service and collision center operations: 42.5% of total gross profit from aftermarket operations
Lease and Rental Operations
Lease and rental revenues totaled $63.6 million in Q3 2024, a slight increase from $62.1 million in Q3 2023. The gross margin for lease and rental operations was reported at 28.6% in Q3 2024, down from 30.6% in Q3 2023.
Finance and Insurance Services
Finance and insurance revenues decreased to $2.3 million in Q3 2024, down from $2.9 million in Q3 2023, reflecting tighter lending conditions.
Gross Profit Analysis
Gross profit for Rush Enterprises in Q3 2024 was $379 million, which is a decrease from $394 million in Q3 2023. The gross profit margin remained steady at about 20.0%.
Financial Performance Overview
The following table summarizes Rush Enterprises' financial performance for the three months ended September 30, 2024, compared to the same period in 2023:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenues | $1,807 million | $1,891 million | -4.4% |
| Commercial Vehicle Sales | $1,163 million | $1,236 million | -5.9% |
| Aftermarket Products and Services | $633 million | $643 million | -1.6% |
| Lease and Rental Revenues | $63.6 million | $62.1 million | +2.4% |
| Finance and Insurance Revenues | $2.3 million | $2.9 million | -20.7% |
| Gross Profit | $379 million | $394 million | -3.8% |
| Gross Profit Margin | 20.0% | 19.9% | +0.1% |
Cost Structure and Profitability
Cost of products sold was approximately $1,517 million in Q3 2024, representing 80.0% of total revenues. Selling, general, and administrative (SG&A) expenses were $239.7 million, accounting for 12.6% of total revenues.
Market Trends and Future Outlook
Rush Enterprises anticipates gross margins from new Class 8 truck sales to range between 9.0% to 10.0% in 2024, while margins for new Class 4 through 7 vehicles are expected to be around 9.0% to 10.0%.
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Resources:
- Rush Enterprises, Inc. (RUSHB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Rush Enterprises, Inc. (RUSHB)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Rush Enterprises, Inc. (RUSHB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.