Company Overview - Rush Enterprises operates over 125 Rush Truck Centers across 23 states in the U.S. and has a 50% equity interest in Rush Truck Centres of Canada Limited, which operates 15 locations in Ontario[25]. - The company provides a comprehensive range of services including retail sales of new and used commercial vehicles, aftermarket parts sales, service and repair, financing, leasing, and insurance products[24]. - Rush Truck Centers are strategically located in high traffic areas, ensuring accessibility for commercial vehicle customers[25]. - The company has a diverse franchise portfolio, including brands like Peterbilt, International, Hino, and Ford, among others[27]. - The company operates a network of commercial vehicle dealerships primarily under the name "Rush Truck Centers," focusing on integrated service solutions for commercial vehicle customers[169]. Business Strategy - The business strategy focuses on expanding the dealership network through strategic acquisitions and opening new locations to enhance customer service and loyalty[26]. - The company aims to reinforce its market leadership by expanding product offerings and dealership locations[26]. - The company plans to continue expanding its dealership network through acquisitions and new locations to enhance market presence[41]. - The company has invested significantly in technology, facilities, and personnel to enhance its Aftermarket Products and Services business, which may affect operating margins if not executed successfully[116]. Financial Performance - Total revenues for 2021 were approximately $5,128.0 million, with new commercial vehicle sales accounting for $2,609.6 million, or 50.9% of total revenues[47]. - Net income for 2021 was $241,415, compared to $114,887 in 2020, marking a 110.5% increase[167]. - Total revenues for 2021 reached $5,126,142, an increase from $4,735,940 in 2020, representing an 8.2% growth[167]. - Gross profit increased by $216.8 million, or 24.8%, with gross profit as a percentage of sales rising to 21.3% in 2021 from 18.5% in 2020[33]. - Aftermarket Products and Services generated revenues of approximately $1,793.4 million, representing 35.0% of total revenues and 62.7% of gross profit for 2021[43]. Sales and Revenue Breakdown - Used commercial vehicle sales contributed approximately $430.4 million, or 8.4% of total revenues for 2021[50]. - Vehicle leasing and rental revenues accounted for approximately $247.2 million, or 4.8% of total revenues for 2021[51]. - Sales of new Peterbilt commercial vehicles accounted for approximately 31.8% of total revenues in 2021, while new International commercial vehicles contributed about 10.3%[81][82]. - The company sold 30,786 total unit vehicles in 2021, a slight increase from 30,513 in 2020[168]. - New heavy-duty truck sales were 11,052 units in 2021, a 3.6% increase from 10,670 units in 2020[212]. Employee and Operational Metrics - The company employed 7,166 people as of December 31, 2021, with less than 0.7% classified as part-time[55]. - In 2021, the overall employee turnover rate was 27.49%, a significant decrease from 42.62% in 2020, attributed to involuntary reductions during the COVID-19 pandemic[67]. - The turnover rate for service and body shop technicians was 36.67% in 2021, down from 39.24% in 2020, indicating improved retention in this critical role[67]. - The absorption ratio achieved was 129.8% for the year ended December 31, 2021, compared to 118.7% in 2020[185]. Acquisitions and Growth - The company completed the acquisition of Summit Truck Group for approximately $205.3 million, financed with $102.0 million through floor plan and lease financing, and an additional $57.0 million for real estate[76]. - The acquisition of Illinois Truck Centre was valued at approximately $2.7 million, and the purchase of Commercial Engine Service was valued at approximately $4.3 million, both paid in cash[77][78]. - The company completed several acquisitions in 2021, including Summit Truck Group, enhancing its market presence and service capabilities[184]. Market Conditions and Challenges - The backlog of commercial vehicle orders increased to approximately $3,267 million as of December 31, 2021, compared to $1,247.2 million on December 31, 2020, primarily due to production constraints[93]. - The company anticipates that production of commercial vehicles in 2022 will be allocated based on historical purchases, with concerns about supply chain issues affecting demand fulfillment[111]. - Economic downturns could lead to sustained periods of decreased commercial vehicle sales, adversely impacting financial condition and results of operations[125]. - Environmental regulations may impose additional compliance costs and operational restrictions, potentially affecting the Company's financial condition[98][99]. Safety and Compliance - The OSHA Total Recordable Incident Rate (TRIR) improved to 3.87 in 2021 from 4.17 in 2020, while the Lost Time Incident Rate (LTIR) decreased to 0.71 from 0.81 in the same period, reflecting enhanced workplace safety[68]. - The company is subject to federal, state, and local environmental regulations, which may result in significant fines and remediation costs that could adversely affect financial condition and cash flows[134]. Shareholder Information - The company declared a total of $0.74 per share in cash dividends for 2021, with expectations to continue quarterly dividends, subject to the Board's discretion[157]. - The estate of W. Marvin Rush and W. M. "Rusty" Rush collectively control approximately 39.0% of the aggregate voting power of the outstanding shares, significantly influencing corporate governance[142]. - The company authorized a new stock repurchase program on November 30, 2021, allowing for the repurchase of up to $100 million of shares[162].
Rush Enterprises(RUSHB) - 2021 Q4 - Annual Report