This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Rush Enterprises Management Discusses Q3 2010 Results - Earnings Call Transcript

Now and update for the third quarter. We are very pleased report the strongest quarter of financial performance since the recent downturn began. Our truck dealership, parts and service and body shop revenues increased 38% compared to the same time period of 2009.

This resulted in a third quarter absorption rate of a 109%, the second highest quarterly absorption rate in the company’s history. We expect our backend operations to still remain strong throughout the remainder of the year.

Class 8 new trunk deliveries increased 58% over the second quarter of 2010. This is the highest level of new truck delivery that we have seen in every two years. Although encouraging, request in whether or not this uptick is sustainable until we see improvement in sectors like new housing construction and manufacturing key factors that drive freight.

During the quarter, our new medium-duty trucks sales were negatively impacted by production delays from certain truck manufactures and introducing a new models. However, Class 8 used truck sales and values are expected to remain strong for the foreseeable future.

During the quarter, the c sold the assets of its John Deere construction equipment business, including its Rush Equipment Centers in Houston and Beaumont, Texas to Doggett Heavy Machinery Services. We also acquired a 49 Isuzu dealership in Dallas, which will broaden our product offering and continue to replace the lost GMC franchise revenues from last year.

We are pleased with the performance of our recently acquired international franchises in both Utah and Idaho and we will continue to look for opportunities to expand our network with these manufacturers.

Now, for an industry outlook, industry experts currently estimate US Class 8 truck retail sales for 2010 to be roughly 109 thousand units up nearly 13% from 2009. Current industry projections for US Class 4 to 7 retail sales for 2010 and 113,500 units.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,776.12 -200.19 -1.11%
S&P 500 2,067.89 -18.35 -0.88%
NASDAQ 4,900.8850 -46.5560 -0.94%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs