Rush Enterprises, Inc. (NASDAQ:RUSHA) Q2 2023 Earnings Conference Call July 26, 2023 10:00 AM ET
Company Participants
Marvin Rush - President, CEO and Chairman
Steve Keller - CFO
Conference Call Participants
Jamie Cook - Credit Suisse
Andrew Obin - Bank of America
Justin Long - Stephens
Operator
Good day, and thank you for standing by. Welcome to the Rush Enterprises, Inc. Reports Second Quarter 2023 Earnings Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker today, Rusty Rush, President, CEO and Chairman of the Board. Please go ahead.
Marvin Rush
Well, good morning, and welcome to our second quarter 2023 earnings release conference call. On the call are Mike McRoberts, Chief Operating Officer; Steve Keller, Chief Financial Officer; Jay Hazelwood, Vice President and Controller; and Michael Goldstone, Senior Vice President, General Counsel and Corporate Secretary.
Now Steve will say a few words regarding forward-looking statements.
Steve Keller
Certain statements we will make today are considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Because these statements include risks and uncertainties, our actual results may differ materially from those expressed or implied by such forward-looking statements. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, those discussed in our annual report on Form 10-K for the year ended December 31, 2022 and in our other filings with the Securities and Exchange Commission.
Marvin Rush
As indicated in our news release, we achieved second quarter revenues of $2 billion and net income of $98.3 million or $1.75 per diluted share. We are proud to declare a three-for-two stock split and a post stock split cash dividend of $0.17 per common share, a 21.4% increase from our previous quarterly dividend.
In the second quarter, we achieved strong financial results due to revenue growth from large national accounts, as well as ongoing pent-up demand from new Class 8 and Class 4-7 trucks caused by limited new truck production over the past few years. Our commitment to our strategic aftermarket initiatives and our continued focus on operational excellence were also significant contributors, and we are proud of our results in the second quarter.
In the aftermarket, our parts, service and body shop revenues were $651 million, up 8.9%. And our absorption ratio was a record 139.7%. In the second quarter, there was healthy demand for parts and sales service, especially from refuse customers and large national accounts.