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Company reports net income of $5.7 million, or $0.15 per diluted share
Second quarter absorption rate of 104.3%
Acquisition of Lake City International completed; new Navistar division formed
Definitive agreement signed to sell John Deere construction equipment business
SAN ANTONIO, July 21, 2010 (GLOBE NEWSWIRE) -- Rush Enterprises, Inc. (Nasdaq:RUSHA) (Nasdaq:RUSHB), which operates the largest network of commercial vehicle dealerships in North America and two John Deere construction equipment dealerships in Southeast Texas, today announced results for the second quarter ended June 30, 2010.
In the second quarter ended June 30, 2010, the Company's gross revenues from continuing operations totaled $329.8 million, a 9.0% increase from gross revenues from continuing operations of $302.6 million reported for the second quarter ended June 30, 2009. Income from continuing operations for the quarter was $5.4 million, or $0.14 per diluted share, compared with loss from continuing operations of $1.7 million, or ($0.05) per diluted share, in the quarter ended June 30, 2009. The Company reported net income for the quarter of $5.7 million, or $0.15 per diluted share, compared with a net loss of $1.5 million, or ($0.04) per diluted share, in the quarter ended June 30, 2009. During the second quarter of 2009, the Company incurred a $4.9 million pre-tax impairment charge, which equated to a net loss of ($0.08) per diluted share, related to General Motors Corporation's decision to stop manufacturing medium-duty trucks and wind-down of the Company's GMC Medium-Duty Truck Dealership Agreements.
On June 18, 2010, the Company announced that it had signed a definitive agreement to sell the assets of its John Deere construction equipment business, including its Rush Equipment Centers in Houston and Beaumont, Texas, to Doggett Heavy Machinery Services, LLC. The purchase price for the Rush Equipment Centers is estimated to be approximately $37.0 million for assets and goodwill. The transaction, which is subject to customary closing conditions, is expected to close in the third quarter of 2010. As a result of this announcement, the results of the Company's construction equipment business are being reported as income from discontinued operations. The construction equipment business recorded income from discontinued operations, net of tax, of $0.3 million ($0.01 per diluted share) during the second quarter of 2010, compared to $0.2 million ($0.01 per diluted share) during the second quarter of 2009.