Rush Enterprises took 3Q hit but earned $34M

New Braunfels-based Rush Enterprises Inc., the largest commercial truck dealership network in North America, earned $33.9 million in the third quarter, even as revenue sank 26 percent as the company battled a pandemic-driven industry downturn.

Its net income dropped from a profit of $39.1 million in the same period the year before.

Rush posted third-quarter revenue of $1.18 billion, down from $1.6 billion the year before.

“While many uncertainties remain, we continue to expect that any economic recovery will be gradual,” Rush Enterprises Chairman, CEO and President W.M. “Rusty” Rush said in a statement. “However, we were encouraged by our third-quarter results and remain cautiously optimistic that the worst is behind us.”

On Oct. 12, the company conducted a stock split, giving shareholders one additional share for every two held. Rush’s board of directors announced a cash dividend of 14 cents per share, payable Dec. 10.

“We are committed to returning capital to our shareholders,” Rush said. “We increased the overall dividend to our shareholders by 50 percent over the prior quarterly dividend.”

The truck dealer’s Class A and Class B shares both saw gains Thursday on the Nasdaq. Its A shares closed at $37.17, up 3.6 percent from Wednesday, and the company’s B stock ended trading at $33.33, up 2 percent.

Revenue from Rush’s parts, service and collision centers

dropped 12 percent in the quarter compared to same period in 2019. And the company’s truck sales were a mixed bag.

New, heavy-duty truck sales ended the quarter down 33 percent from the year before. New, light and medium-duty vehicles finished down nearly13 percent. Used commercial truck sales bumped up 10 percent.

“Our cash position remains strong,” Rush said. “We remain confident in our future and our ability to return value to shareholders.”