Rush Enterprises has announced results for the third quarter ended September 30, 2012. The Company’s net income for the quarter was $14.9 million, or $0.38 per diluted share, compared with net income of $16.0 million, or $0.41 per diluted share, in the quarter ended September 30, 2011.
The company said it continued to implement its strategy to extend its geographic footprint this quarter, signing an agreement to purchase certain assets of a dealership group in Ohio with International, IC Bus, Isuzu and Idealease franchises. The agreement includes locations in Akron, Cincinnati, Cleveland, Columbus, Dayton, Findlay and Lima, Ohio. While this transaction remains subject to regulatory approval, the Company plans to complete the acquisition by year end and expects it to be accretive to future earnings.
“When complete, the newly acquired dealership locations will operate within our Rush Truck Centers’ Navistar Division, said W. M. “Rusty” Rush, Chief Executive Officer and President of Rush Enterprises, Inc. “We are excited to not only expand our Navistar Division, but also bring our philosophy and service commitment to customers in Ohio as well as add service points to our network,” Rush added.
“We also relocated our full service dealership in Phoenix, Arizona, to a newly renovated facility, which tripled our service capabilities in this market. A grand opening for this new dealership facility will take place in November.”
“In addition to growth through acquisition and facility expansion, we believe our network of Rush Truck Centers also provides us a unique opportunity for growth in our industry,” Rush noted. “We remain committed to expanding our service solutions, to meet the evolving needs our customers, whatever they may be.”
Rush said aftermarket services accounted for more than 65 percent of the company’s total gross profits for the third quarter of 2012. Third quarter parts, service and body shop revenues increased by 15 percent, compared to third quarter 2011. This resulted in another record aftermarket revenue quarter despite fewer working days during the period. Third quarter absorption ratio was 113%.