Rush Enterprises Management Discusses Q3 2010 Results - Earnings Call Transcript
The age of the fleet and current fleet capacity utilization indicates that parts, service and body shop revenues should remain at a much improved levels that we have seen in the second and third quarters. Higher used truck values and increase backend revenues experience for the past two quarters are strong indicators that an industry recovery is taking place. We are encouraged by the uptick new Class 8 truck sales this quarter and believe we are seeing signs of confidence returning by some customers.
Industry experts are forecasting 2011 US Class 8 truck sales to be 178,000 units up 63% over 2010 and Class 4 to 7 trucks sales will be up about 15%. We believe that as general economic confidence returns, we will see strong truck sales markets from 2011, 12 and 13. We are very proud of company’s performances this quarter.
Our balance sheet remains strong and the company has continued to generate positive cash flow. We continued evaluate opportunities to extend our to contagious network of dealership locations into other parts of the country.
Thanks to our employees, we remained in financially strong and profitable company. We are now prepared to answer any questions that you might have. Operator?Question-and-Answer SessionOperator(Operator Instructions). Your first question comes from John Barnes with RBC Capital Markets.John Barnes - RBC Capital MarketsGood morning guys. Firstly, in looking at the absorption rate during the quarter, impacting in the acquisitions that you made, can you just give us a little bit of an idea of where the absorption rate might be for your kind of things stored, kind of your foot print and then you know, how that compares to the acquired locations?Rusty RushSure. I would say the same-store absorption rates actually, John, was just a ahead of over a 110%. We manufactured in the acquisition and going down about 1% but we’re pleased so far with our progress of the acquisition from an instruction perspective given only one quarter in to it but it is definitely up over historical that 2009 number in our first quarter of operating the acquisition. So there is still room for improvement obviously there.Read the rest of this transcript for free on seekingalpha.com
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