Revenues of $1.6 billion, net income of $39.1 millionEarnings per diluted share of $1.05Heavy-duty and medium-duty truck sales significantly outperform the marketStrategic initiatives continue to contribute to aftermarket revenue growthBoard declares cash dividend of $0.13 per share of Class A and Class B common stockSAN ANTONIO, Oct. 23, 2019 (GLOBE NEWSWIRE) — Rush Enterprises, Inc. (NASDAQ: RUSHA & RUSHB), which operates the largest network of commercial vehicle dealerships in North America, today announced that for the quarter ended September 30, 2019, the Company achieved revenues of $1.6 billion and net income of $39.1 million, or $1.05 per diluted share, compared with revenues of $1.38 billion and net income of $41.7 million, or $1.03 per diluted share, in the quarter ended September 30, 2018.  Additionally, the Company’s Board of Directors declared a cash dividend of $0.13 per share of Class A and Class B Common Stock, to be paid on December 10, 2019, to all shareholders of record as of November 8, 2019.“Robust activity in the commercial vehicle market and our continued focus on our aftermarket strategic initiatives positively contributed to our third quarter results,” said W.M. “Rusty” Rush, Chairman, Chief Executive Officer and President of Rush Enterprises, Inc.  “We outpaced the commercial vehicle market in both Class 8 and Class 4-7 sales, and our parts and services sales remained strong,” Rush said.  “I sincerely thank our employees for providing superior service to our customers while remaining focused on the successful execution of our strategic initiatives,” said Rush. Operations
Aftermarket Products and Services
Aftermarket products and services accounted for approximately 64.4% of the Company’s total gross profits in the third quarter, with parts, service and collision center revenues reaching $454.8 million, up 6.5% compared to the third quarter of 2018.  The Company achieved a quarterly absorption ratio of 120% in the third quarter of 2019.“Considering the continued decline in demand from the energy sector compared to last quarter and especially compared to the third quarter of 2018, we are pleased with our strong aftermarket performance this quarter.  Our aftermarket products and services revenue growth is once again a direct result of the successful execution of our long-term aftermarket initiatives, which include offering a broad portfolio of internal and customer-facing technology solutions, a parts e-commerce platform, expedited commercial vehicle service and continuing to add skilled technicians to our network,” Rush noted.“We expect industry demand for aftermarket products and services to remain steady in the fourth quarter, subject to typical seasonal softness through the winter months,” said Rush. “With continued focus on our strategic growth initiatives, we expect our aftermarket parts and service sales to outperform the market in the fourth quarter of 2019 and for the full year 2020,” he added.Truck Sales
New U.S. Class 8 retail truck sales totaled 78,117 units in the third quarter, up 12% over the same period last year, according to ACT Research.  The Company sold 4,318 Class 8 trucks in the third quarter, an increase of 29.9% compared to the third quarter of 2018, and accounted for 5.5% of the new U.S. Class 8 truck market.  ACT Research forecasts U.S. retail sales for new Class 8 vehicles to be 277,300 units in 2019, an 8.4% increase compared to 2018.“Our new Class 8 truck sales outpaced the industry in the third quarter of 2019.  Our strong performance was primarily the result of solid activity from over-the-road fleets and vocational customers,” Rush said.  “However, we believe that we have passed the peak of the current truck sales cycle and our fourth quarter new Class 8 truck sales will be down compared to the third quarter,” he added.ACT projects new U.S. Class 8 retail sales to be 204,000 units in 2020, down 26% from the 277,300 units forecast in 2019. “Although 2020 will be a challenging year for new Class 8 truck sales, we are focused on achieving every sale possible and believe we are well-positioned to increase our Class 8 market share in 2020,” said Rush.  The Company sold 4,566 Class 4-7 medium-duty commercial vehicles in the third quarter of 2019, an increase of 36% from the third quarter of 2018, accounting for 6.5% of the total U.S. market and significantly outpacing the industry.  U.S. Class 4-7 retail sales were 69,978 units in the third quarter of 2019, up 7.2% over the third quarter of 2018.  ACT Research forecasts U.S. retail sales for Class 4-7 vehicles to reach 266,000 units in 2019, a 3% increase over 2018. “We are very pleased with another record-setting performance in our Class 4-7 medium-duty commercial vehicle sales this quarter.  Continued strong demand from all of the medium-duty market segments we support, and especially our rental and construction customers, along with our robust inventory of Ready-to-Roll medium-duty trucks across the country, positively impacted our Class 4-7 results in the third quarter of 2019,” Rush said. “Due to the timing of large fleet deliveries in the second and third quarters of 2019, our Class 4-7 medium-duty sales may be down in the fourth quarter of 2019, but we should still outpace the industry for 2019,” he added.  ACT projects U.S. Class 4-7 medium-duty sales to be 257,400 units in 2020, down 3.2% from the 266,000 units forecast for 2019.  “We believe our Class 4-7 medium-duty commercial vehicle sales results in 2020 will be on pace with the market,” said Rush.The Company sold 1,868 used vehicles in the third quarter of 2019, a 15% decrease compared to the third quarter of 2018.  “Near record high deliveries of new trucks over the past few years have caused an oversupply of used trucks in the market.  Currently, we believe that used truck values are depreciating faster than what is considered a normal rate.  We are closely monitoring used truck values, along with other market factors that affect used truck sales.  Our used truck inventory unit count is currently at its lowest point of 2019, and we believe it is valued appropriately with respect to current market conditions,” Rush explained.Financial HighlightsIn the third quarter of 2019, the Company’s gross revenues totaled $1.60 billion, a 16.2% increase from gross revenues of $1.38 billion reported for the third quarter of 2018.  Net income for the third quarter was $39.1 million, or $1.05 per diluted share, compared to net income of $41.7 million, or $1.03 per diluted share, in the third quarter of 2018.Parts, service and collision center revenues were $454.8 million in the third quarter of 2019, compared to $426.8 million in the third quarter of 2018.  The Company delivered 4,318 new heavy-duty trucks, 4,566 new medium-duty commercial vehicles, 525 new light-duty commercial vehicles and 1,868 used commercial vehicles during the third quarter of 2019, compared to 3,325 new heavy-duty trucks, 3,349 new medium-duty commercial vehicles, 567 new light-duty commercial vehicles and 2,197 used commercial vehicles during the third quarter of 2018.During the third quarter of 2019, the Company repurchased $16.1 million of its common stock, paid a cash dividend of $4.7 million and ended the quarter with $86.1 million in cash and cash equivalents. “Our balance sheet remains strong, and we are confident in our ability to invest in the Company’s future while returning capital to shareholders,” said Rush. 
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