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Mar 31, 2020
Rush Enterprises Q1 2020 Earnings Report
Achieved revenues of $1.287 billion and net income of $23.1 million.
Key Takeaways
Rush Enterprises reported revenues of $1.287 billion and net income of $23.1 million, or $0.62 per diluted share, for the quarter ended March 31, 2020. The company's Board of Directors declared a cash dividend of $0.13 per share of Class A and Class B Common Stock.
Revenues were $1.287 billion, with a net income of $23.1 million.
Earnings per diluted share were $0.62.
The absorption ratio was 114.3%.
A cash dividend of $0.13 per share of Class A and Class B common stock was declared.
Rush Enterprises
Rush Enterprises
Forward Guidance
The company expects that the negative impact on revenues and business in general will be substantial for the foreseeable future due to the COVID-19 pandemic. The outlook for the remainder of the year is uncertain due to the impact of the COVID-19 pandemic.
Positive Outlook
- Rush Truck Centers are classified as “essential businesses” and have remained fully operational across the Company’s dealership network
- Parts supply chain has remained uninterrupted to-date
- The company increased parts inventories at all stores to support an estimated extra 30 days of demand
- Cash position remains strong at $138 million
- The company renewed a $100 million line of credit for another two years.
Challenges Ahead
- The effects of the COVID-19 pandemic on our Company began late in the first quarter impacting only the last few weeks of March
- Customers are delaying purchases due to economic uncertainty
- Temporary production suspensions lead to questions about availability of new inventory
- Aftermarket products and services revenues will be negatively impacted by the COVID-19 pandemic
- Medium-duty truck sales will be negatively impacted by the pandemic, as medium-duty commercial vehicle sales usually track closely to the general economy