SAN ANTONIO, Texas (April 20, 2011) -- Rush Enterprises (Nasdaq:RUSHA) (Nasdaq:RUSHB), operater of the largest network of commercial vehicle dealerships in North America, reported gross revenues in the first quarter of 2011 of $446.1 million, a 49.1% increase from gross revenues in the quarter ended March 31, 2010. Income from continuing operations for the quarter was $7.3 million, or $0.19 per diluted share, compared with income from continuing operations of $1.9 million, or $0.05 per diluted share, in 2010's first quarter. The Company reported net income for the quarter of $7.3 million, or $0.19 per diluted share, compared with a net income of $2.2 million, or $0.06 per diluted share in the first quarter of 2010.
The Company delivered 1,345 new heavy-duty trucks, 923 new medium-duty commercial vehicles and 1,107 used commercial vehicles during the first quarter of 2011, compared to 969 new heavy-duty trucks, 611 new medium-duty trucks and 686 used trucks during the first quarter of 2010. Parts, service and body shop sales revenue was $145.6 million in the first quarter of 2011, compared to $101.8 million in the first quarter of 2010.
Put in a larger context, revenues were just 16% below Rush's first quarter of 2007 on sales of new heavy and medium-duty vehicles that were less than half those recorded in 2007. Parts, service and body shop revenue, however was 32% better than the first quarter of 2007.
"We are excited with the performance of our parts, service and body shop business, which achieved record high monthly revenues in March," said W.M. "Rusty" Rush, Rush Enterprises Inc. president and chief executive officer. "Despite lost operating days caused by inclement weather conditions throughout most of the country in January and February, we were able to achieve a very strong 109% percent absorption rate for the quarter."
"As expected, deliveries of Class 8 trucks remained challenging in the first quarter. However, we are greatly encouraged by the sustained increase in U.S. Class 8 new truck orders. If orders continue at the current pace, we could see 2011 U.S. Class 8 truck sales in the range of 180,000 to 200,000 units, compared to 110,000 units in 2010, with deliveries increasing as early as the second quarter," Rush explained.
"With confidence in our growth strategy, we completed two strategic acquisitions in the Southeast this quarter. In February, we acquired Heintzelman's Ford in Orlando, Fla., adding the fourth Ford franchise to our dealership network. In March, we acquired the International, Hino, Isuzu, UD, IC Bus and Workhorse franchises from Asbury Automotive's Nalley Motor Trucks in metro-Atlanta. The Nalley Motor Trucks acquisition is significant in building our Navistar Division, which has grown since its inception last May to include 15 full-service dealerships with two dedicated collision centers. We are strongly committed to working with Navistar to build a successful network and look forward to opportunities to work together in the future," Rush said.