Thursday, July 22, 2010, 10:04am CDT
San Antonio Business Journal

Read more: Rush Enterprises’ second-quarter revenue gain driven by truck parts, service - San Antonio Business Journal Rush Enterprises Inc. posted a profit in the second quarter as the company’s heavy-duty truck dealership operations were able to increase revenues through the sale and service of used vehicles.

New Braunfels-based Rush (NASDAQ: RUSHA, RUSHB) reported net income of $5.7 million, or 15 cents per diluted share, on revenues of $329.8 million for the quarter ended June 30, 2010. This compares to a net loss of $1.5 million, or 4 cents per diluted share, on revenues of $302.6 million for the same period a year ago.

Revenues are being reported on a continuing operations basis to reflect Rush’s decision on June 18 to definitively sell the assets of its John Deere construction equipment business to Doggett Heavy Machinery Services LLC. That acquisition should close in the third quarter and the purchase price will be $37 million, including assets and goodwill.

Rush incurred a $4.9 million pre-tax impairment charge, which equated to a loss of 8 cents per diluted share, related to General Motors’ decision to stop manufacturing medium-duty trucks and wind-down GM’s medium-duty truck dealership agreements.

During the quarter, Rush also purchased certain assets of Lake City Companies LLC, which included five dealerships in Utah, five dealerships in Idaho and one location in Oregon. These dealerships are now operating as Rush Truck Centers.

“General economic uncertainty combined with the introduction of new emissions-compliant engine technology weighed heavily in creating yet another challenging market for new truck sales in the second quarter,” says W. M. “Rusty” Rush, president and CEO for Rush Enterprises. “However, improvements in used truck and parts, service and body shop revenues contributed significantly to the company’s profitability this quarter. As expected, retail sales of new heavy- and medium-duty trucks remained sluggish throughout the second quarter, as fleets remain hesitant to take delivery of new trucks.”

Rush Enterprises operates North America’s largest network of commercial truck dealerships. The company has 60 Rush Truck Centers in 14 states. Rush sells

trucks and buses manufactured by Peterbilt, International, Hino, Isuzu, For, UD, Blue Bird, IC, Diamond and Elkhart Read more: Rush Enterprises’ second-quarter revenue gain driven by truck parts, service - San Antonio Business Journal