Rush Enterprises, Inc. (NASDAQ:RUSHA) Q1 2024 Earnings Conference Call April 24, 2024 10:00 AM ET

Company Participants

Rusty Rush - Chairman of the Board, Chief Executive Officer and President
Steven Keller - Chief Financial Officer and Treasurer

Conference Call Participants

Justin Long - Stephens Inc.
Andrew Obin - Bank of America

Operator

Good day, and thank you for standing by. Welcome to Rush Enterprises’ First Quarter 2024 Earnings Results Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded.

I would now like to hand the conference over to your first speaker today, Rusty Rush, Chairman, CEO and President. Please go ahead.

Rusty Rush

Good morning, and welcome to our first quarter 2024 earnings release 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.

Steven 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, 2023, 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 $1.9 billion, and net income of $71.6 million, or $0.88 per delivery share. We are proud to declare a cash dividend of $0.17 per common share. Class 8 new truck production has caught up with market demand, and that along with other economic factors, led to a decline in our Class 8 new truck sales in the first quarter. The freight recession and elevated interest rates are negatively impacting over-the-road customers, both small carriers and large fleets. We are pleased to significantly outpaced the industry in Class 4 through 7 truck sales, and we achieved year-over-year growth in used truck sales, which were the bright spots in a challenging quarter. In the aftermarket, our part service and body shop revenues were $649.2 million flat compared to the first quarter of 2023, and our absorption ratio was 130.1%.