Rush Enterprises(RUSHA) - 2024 Q4 - Annual Results

Financial Performance - For the year ended December 31, 2024, the Company achieved revenues of $7.8 billion and net income of$ 304.2 million, or $3.72 per diluted share, compared to revenues of$ 7.9 billion and net income of $347.1 million, or$ 4.15 per diluted share for 2023[1][22]. - The company achieved its second highest annual revenue in history despite challenging operating conditions[28]. - Total revenue for Q4 2024 was $2,009.6 million, a decrease from$ 2,029.5 million in Q4 2023[37]. - Net income attributable to Rush Enterprises, Inc. for Q4 2024 was $74.8 million, compared to$ 78.0 million in Q4 2023[37]. - The company’s gross profit for the year ended December 31, 2024, was $1,531.4 million, down from$ 1,593.1 million in 2023[37]. - EBITDA for the twelve months ended December 31, 2024, was $553,596,000, compared to$ 572,959,000 in 2023, reflecting a decrease of approximately 3.4%[44]. Sales and Market Performance - The Company sold 15,465 new Class 8 trucks in 2024, a decrease of 11.4% compared to 2023, accounting for 6.1% of the new U.S. Class 8 truck market[1][13]. - The Company delivered 4,239 new heavy-duty trucks in Q4 2024, compared to 4,466 in Q4 2023, reflecting a challenging sales environment[1][25]. - Vehicle sales revenue for new heavy-duty vehicles decreased to $773,376,000 in 2024 from$ 816,532,000 in 2023, a decline of approximately 5.3%[40]. - New medium-duty vehicle sales revenue increased to $400,930,000 in 2024 from$ 359,767,000 in 2023, an increase of approximately 11.4%[40]. - The Company sold 7,110 used trucks in 2024, a 0.1% decrease compared to 2023, reflecting a stable used truck inventory strategy[1][19]. Revenue Streams - Aftermarket products and services revenues totaled $2.5 billion in 2024, down 1.8% from$ 2.6 billion in 2023, with parts, service, and collision center revenues contributing significantly[1][10][23]. - Leasing and Rental revenue in 2024 was $354.9 million, up 0.3% from 2023, indicating stable performance in this segment[1][20]. - Lease and rental revenue increased by 1.3% in Q4 2024 compared to Q4 2023[26]. Shareholder Returns - The Board of Directors declared a cash dividend of$ 0.18 per share, to be paid on March 18, 2025[1][4]. - Cash dividends paid to shareholders totaled $54.9 million in 2024, an 8.5% increase over 2023[27]. - The company repurchased$ 16.4 million of its common stock during 2024, with $6.5 million repurchased in Q4 2024 under a new plan[27]. Financial Health and Debt Management - Total assets increased to$ 4,617.5 million as of December 31, 2024, up from $4,364.2 million in 2023[35]. - Total debt decreased to$ 1,620,350,000 in 2024 from $1,687,482,000 in 2023, a reduction of approximately 4.0%[42]. - Adjusted total debt (Non-GAAP) was reported at$ 3,571,000 in 2024, down from $4,112,000 in 2023[42][43]. - Total shareholders' equity increased to$ 2,141,549,000 in 2024 from $1,870,879,000 in 2023, a growth of approximately 14.5%[47]. - Adjusted invested capital (Non-GAAP) rose to$ 1,916,989,000 in 2024 from $1,691,266,000 in 2023, an increase of approximately 13.4%[47]. Operational Efficiency - The absorption ratio for the Company was 132.2% in 2024, compared to 135.3% in 2023, indicating effective cost management[1][10][22]. - The absorption ratio improved to 133.0% in 2024 from 130.8% in 2023, indicating better coverage of overhead expenses by gross profit[40][41]. - Free cash flow (Non-GAAP) improved to$ 176,967,000 in 2024 from a negative $73,168,000 in 2023, indicating a significant turnaround[45][46]. - Adjusted free cash flow (Non-GAAP) increased to$ 485,358,000 in 2024 from $428,562,000 in 2023, an increase of approximately 13.2%[45][46]. Strategic Initiatives - The Company expanded its network by adding two Rush Truck Centers locations in Nebraska and additional parts and mobile service locations in California and Texas[1][8]. - The company remains focused on long-term strategic initiatives as it enters its 60th year[28]. - The Company expects new Class 8 truck sales to be challenging in the first half of 2025, with a potential recovery in the second half of the year[1][6].