Rush Enterprises Inc. has reported the highest quarterly pre-tax income in the company’s history. Income from continuing operations for the quarter was $16 million, or $0.41 per diluted share, compared with income from continuing operations of $8 million, or $0.21 per diluted share, in the quarter ended Sept. 30, 2010.
"We believe these record results validate our efforts to build an organization with a diversified earnings base that is less dependent on the highly cyclical Class 8 truck sales market. For 15 years, we have worked to position the company as the premier service solutions provider to the commercial vehicle industry not simply a retailer of Class 8 trucks," said W. M. "Rusty" Rush, president and CEO. "Third quarter results are evidence that our efforts are paying off. These efforts include focusing on expanding our capabilities in less cyclical aftermarket operations, broadening the depth of our commercial vehicle product offerings and expanding our network of Rush Truck Centers."
According to the company, its aftermarket capabilities now include a wide range of services and products such as a fleet of mobile service units, mobile technicians who staff customers’ facilities, a proprietary line of parts and accessories, new diagnostic and analysis capabilities, factory certified service for alternative fuel vehicles and assembly service for specialized bodies and equipment. "As a result of our efforts to expand aftermarket capabilities, aftermarket operations currently account for more than 60 percent of our total gross profits," continued Rush.
Once primarily focused on Class 8 truck sales, the company has now expanded its commercial vehicle product line to include medium-duty and light-duty trucks, buses and vocational specialty vehicles such as refuse trucks, tow trucks and truck-mounted cranes.
The company has a track record of growth through acquisitions and additions of dealerships within its current areas of responsibility. It now operates a contiguous network of 65 dealerships across the U.S. "In the past 18 months, the company has invested over $137 million in acquisitions, and we are scheduled to close two more acquisitions this year," said Rush.