Rush Enterprises reported second-quarter gross revenues of $662 million, a 100.7% increase from gross revenues of $329.8 million reported for the second quarter of 2010.
Income from continuing operations for the quarter was $12.5 million, or $0.32 per diluted share, compared with income from continuing operations of $5.4 million, or $0.14 per diluted share, in the quarter ended June 30, 2010. The company reported net income for the quarter of $12.5 million, or $0.32 per diluted share, compared with a net income of $5.7 million, or $0.15 per diluted share, in the second quarter of 2010.
The company delivered 2,363 new heavy-duty trucks, 1,514 new medium-duty commercial vehicles, 314 light-duty commercial vehicles and 1,156 used commercial vehicles during the second quarter of 2011, compared to 813 new heavy-duty trucks, 795 new medium-duty trucks, 37 light-duty commercial vehicles and 889 used trucks during the second quarter of 2010. Parts, service and body shop sales revenue was $170.4 million in the second quarter of 2011, compared to $118.5 million in the second quarter of 2010.
"We are pleased with our performance this quarter and are extremely encouraged to have quarterly earnings back at levels that we last achieved in 2007," said W. M. "Rusty" Rush, President and Chief Executive Officer for Rush Enterprises, Inc.
"Record highs in parts, service and body shop revenues that were achieved in March continued throughout the second quarter. Our Rush Truck Centers set a new Company milestone for performance in June, eclipsing $1 million per day in gross profit from our parts, service and body shop operations. This led to another record quarterly absorption rate of 112.9%. This increased activity is attributable to the age of commercial vehicles in operation, combined with unprecedented activity in the energy sector, particularly in the central U.S. We expect parts, service and body shop revenues will continue at current levels through the third quarter.
"The second quarter marked our first meaningful increase in Class 8 and medium-duty truck sales since Class 8 industry orders began increasing in November 2010. Strong Class 8 truck sales activity continues to occur within the energy sector and we are also delivering new trucks to large Class 8 on-highway fleets that are replacing aged vehicles. As industry freight rates have increased, we have seen an increase in sales activity to smaller over-the-road truck customers as well. Medium-duty truck sales activity increased significantly despite continued supply issues with Japanese manufacturers. We delivered 398 buses in the quarter, a new company record. As truck manufacturers continue to deal with component supplier delays, we expect both Class 8 and medium-duty truck sales activity for the third quarter to remain relatively flat compared with the second quarter," said Rusty Rush.
"While U.S. Class 8 truck orders have decreased since they peaked in April, we believe current order intake is adequate to support U.S. Class 8 retail sales of approximately 180,000 units in 2011. We continue to expect U.S. retail sales of Class 8 trucks to increase in 2012 and 2013. However, renewed economic concerns and the possibility of slower than expected recovery within automotive, manufacturing and construction sectors could result in a more controlled Class 8 truck growth cycle, possibly extending the cycle over a longer period of time with more gradual increases in truck sales.
"We continue to be very pleased with the progress being made in integrating our Navistar Division into the Company. Our Navistar Division, which had a positive impact on revenue growth and overall performance this quarter, now consists of 15 full-service dealerships with two dedicated collision centers. We remain committed to working with Navistar to build a successful network of dealerships and continue to explore opportunities for expansion."