Rush Enterprises, Inc. (NASDAQ:RUSHA) Q1 2022 Earnings Conference Call April 27, 2022 10:00 AM ET

Company Participants

Rusty Rush – Chairman, Chief Executive Officer and President

Steve Keller – Chief Financial Officer

Conference Call Participants

Justin Long – Stephens

Jamie Cook – Credit Suisse

Andrew Obin – Bank of America

Operator

Good day. And thank you for standing by and welcome to the Rush Enterprises’ First Quarter 2022 Earnings Results Call. [Operator Instructions]

I would now like to hand the conference over to your speaker today Mr. Rusty Rush, Chairman, CEO and President. Thank you.

Rusty Rush

Yes, Maria, thank you. Good morning, and welcome to our first quarter 2022 earnings release conference call. On the call today are Mike McRoberts, Chief Operating Officer; Steve Keller, Chief Financial Officer; Jay Hazelwood, Vice President and Controller; and Michael Goldstone, 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, 2021, and in our other filings with the Securities and Exchange Commission.

Rusty Rush

As indicated in our news release, we achieved first quarter revenues of $1.6 billion and net income of $93 million or $1.60 per diluted share. We are proud to declare a cash dividend of $0.19 per common share.

We're very proud of our results in the first quarter, which were largely driven of the continued strong economy and healthy consumer spending from most of the quarter. While new truck, much of the quarter – excuse me, while new truck production capacity remained limited due to component parts supply chain issues, our Class A new truck sales significantly outperformed the market.

Our aftermarket revenues also greatly contributed to our financial results and were primarily driven by increased demand for parts and service support and our continued focus on our aftermarket strategic initiatives. Further, the acquisition of 19 dealership locations from The Summit Truck Group in the fourth quarter of 2021, and the gain on the sale in connection with the establishment of our joint venture with Cummins positively impacted our financial performance in the first quarter.