Financial Performance - Revenues for Q1 2025 were $1.85 billion, a 1.1% decrease from $1.87 billion in Q1 2024, with net income of $60.3 million or $0.73 per diluted share compared to $71.6 million or $0.88 per diluted share in the prior year[20]. - Total revenue for Q1 2025 was $1,850,830, a decrease of 1.5% from $1,871,999 in Q1 2024[34]. - Gross profit for Q1 2025 was $357,760, down from $389,875 in Q1 2024, reflecting a decline of 8.2%[34]. - Net income attributable to Rush Enterprises, Inc. for Q1 2025 was $60,322, compared to $71,608 in Q1 2024, representing a decrease of 15.7%[34]. - EBITDA for the twelve months ended March 31, 2025, was $517,312, down from $557,220 in the prior year[40]. Sales and Market Performance - New Class 8 truck sales in the U.S. totaled 3,154 units, a decrease of 7.4% year-over-year, representing 6.1% of the new U.S. Class 8 truck market[12]. - New U.S. Class 4-7 retail commercial vehicle sales were 3,204 units, relatively flat compared to the first quarter of 2024, accounting for 5.6% of the total new U.S. Class 4-7 commercial vehicle market[15]. - The company expects continued strong sales to vocational and public sector customers throughout 2025, although not at the levels experienced in 2024[14]. - Concerns regarding tariffs and emissions regulations are causing customers to delay vehicle orders, impacting overall demand for new Class 8 trucks[5][14]. Aftermarket and Leasing - Aftermarket products and services generated revenues of $619.1 million, down 4.6% from $649.2 million in Q1 2024, accounting for approximately 61.9% of total gross profit[9][21]. - Leasing and rental revenue increased by 2.7% to $90.3 million compared to Q1 2024, with full-service leasing revenue showing growth due to additional vehicles being put into service[18][22]. - The company anticipates a slight improvement in aftermarket revenues in Q2 2025, supported by current parts inventory levels[11]. Financial Position and Cash Flow - Total assets increased to $4,687,941 as of March 31, 2025, up from $4,617,547 at the end of 2024[32]. - Total debt (GAAP) decreased to $1,610,920 as of March 31, 2025, from $1,910,907 a year earlier[39]. - Adjusted Free Cash Flow for the twelve months ended March 31, 2025, was $698,346, significantly up from $198,709 in the previous year[41]. - Cash and cash equivalents increased to $228,719 as of March 31, 2025, from $155,905 a year earlier[39]. - Total shareholders' equity increased from $1,935,502 thousand in March 2024 to $2,166,936 thousand in March 2025, reflecting a growth of approximately 11.9%[43]. - Adjusted Invested Capital rose from $1,783,671 thousand in March 2024 to $1,941,788 thousand in March 2025, indicating an increase of about 8.9%[43]. - Adjusted Net Debt improved from $(151,831) thousand in March 2024 to $(225,148) thousand in March 2025, showing a reduction in net debt[43]. Stock and Dividends - The company repurchased $30.9 million of its common stock during the quarter, totaling $37.4 million of the $150.0 million authorized by the Board[23]. - The company declared dividends of $0.18 per common share in Q1 2025, compared to $0.17 in Q1 2024[34]. Non-GAAP Measures - Free Cash Flow and Adjusted Free Cash Flow are key financial measures for the Company, calculated from operating cash flows and adjusted for specific financing activities[42]. - The Company emphasizes that Free Cash Flow and Adjusted Free Cash Flow are non-GAAP measures and should be considered alongside GAAP measures for a comprehensive financial analysis[42]. - Management's adjustments to derive Adjusted Free Cash Flow include adding back certain financing draws and subtracting specific payments related to lease and rental fleet financing[42]. - The Company believes that its approach to calculating Adjusted Invested Capital provides a clearer picture of its leverage profile and capital structure[43]. - Non-GAAP measures like Adjusted Net Debt and Adjusted Invested Capital may vary among companies and are not directly comparable to similar measures used by other firms[43]. - The focus on Free Cash Flow and Adjusted Free Cash Flow aims to align investor understanding with management's evaluation of cash generation capabilities[42]. - The financial metrics presented are intended to assist investors in performing consistent analyses aligned with the Company's financial models[43].
Rush Enterprises(RUSHB) - 2025 Q1 - Quarterly Results