Mar 31, 2022

Rush Enterprises Q1 2022 Earnings Report

Reported record first quarter financial results driven by strong Class 8 truck sales and aftermarket growth.

Key Takeaways

Rush Enterprises reported record first quarter financial results with revenues of $1.563 billion and net income of $92.5 million, or $1.60 per diluted share. Excluding a one-time gain, adjusted net income was $82.9 million, or $1.43 per diluted share.

Revenues reached $1.6 billion with net income of $92.5 million.

Earnings per diluted share were $1.43, excluding a one-time gain.

The absorption ratio was 136.3%.

The board declared a cash dividend of $0.19 per share.

Total Revenue
$1.56B
Previous year: $1.23B
+26.9%
EPS
$0.95
Previous year: $0.53
+79.2%
Dealership Absorption
136.3%
Previous year: 122.6%
+11.2%
Gross Profit
$345M
Previous year: $245M
+41.1%
Cash and Equivalents
$210M
Previous year: $316M
-33.7%
Free Cash Flow
-$11.1M
Previous year: $7.21M
-254.1%
Total Assets
$3.32B
Previous year: $3.01B
+10.4%

Rush Enterprises

Rush Enterprises

Forward Guidance

The company expects continued strong performance in 2022, driven by pent-up demand and strategic initiatives, but is monitoring potential negative impacts from elevated fuel prices, inflation, and rising interest rates.

Positive Outlook

  • Continued strong economy and healthy consumer spending.
  • Pent-up demand for new commercial vehicles and aftermarket services.
  • Ongoing integration of strategic initiatives.
  • Disciplined approach to expense management.
  • Strong backlogs.

Challenges Ahead

  • Elevated fuel prices negatively impacting spot market rates.
  • Inflation and rising interest rates may negatively impact consumer spending and capital expenditures.
  • Production constraints caused by global supply chain issues.
  • Truck allocation by manufacturers limiting ability to meet market demands.
  • Used truck values are beginning to retract from their historically high levels in 2021.