Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 31, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 0-20797 | |
Entity Registrant Name | RUSH ENTERPRISES, INC. | |
Entity Incorporation, State or Country Code | TX | |
Entity Tax Identification Number | 74-1733016 | |
Entity Address, Address Line One | 555 I.H. 35 South, Suite 500 | |
Entity Address, City or Town | New Braunfels | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 78130 | |
City Area Code | 830 | |
Local Phone Number | 302-5200 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001012019 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 61,599,412 | |
Title of 12(b) Security | Class A Common Stock, $0.01 par value | |
Trading Symbol | RUSHA | |
Security Exchange Name | NASDAQ | |
Common Class B [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 17,890,941 | |
Title of 12(b) Security | Class B Common Stock, $0.01 par value | |
Trading Symbol | RUSHB | |
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash, cash equivalents and restricted cash | $ 191,988 | $ 201,044 |
Accounts receivable, net | 263,480 | 220,651 |
Inventories, net | 1,671,623 | 1,429,429 |
Prepaid expenses and other | 18,690 | 16,619 |
Total current assets | 2,145,781 | 1,867,743 |
Property and equipment, net | 1,474,662 | 1,368,594 |
Operating lease right-of-use assets, net | 107,406 | 102,685 |
Goodwill, net | 416,420 | 416,363 |
Other assets, net | 73,784 | 65,681 |
Total assets | 4,218,053 | 3,821,066 |
Current liabilities: | ||
Floor plan notes payable | 1,121,490 | 933,203 |
Current maturities of long-term debt | 104,778 | 0 |
Current maturities of finance lease obligations | 36,128 | 29,209 |
Current maturities of operating lease obligations | 15,892 | 15,003 |
Trade accounts payable | 177,142 | 171,717 |
Customer deposits | 102,900 | 116,240 |
Accrued expenses | 161,786 | 163,302 |
Total current liabilities | 1,720,116 | 1,428,674 |
Long-term debt, net of current maturities | 202,824 | 275,433 |
Finance lease obligations, net of current maturities | 103,513 | 93,483 |
Operating lease obligations, net of current maturities | 93,193 | 89,029 |
Other long-term liabilities | 23,856 | 19,455 |
Deferred income taxes, net | $ 155,468 | $ 151,970 |
Shareholders’ equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, par value $.01 per share; 1,000,000 shares authorized; 0 shares outstanding in 2023 and 2022 | $ 0 | $ 0 |
Common stock, par value $.01 per share; 105,000,000 Class A shares and 35,000,000 Class B shares authorized; 62,053,249 Class A shares and 17,989,388 Class B shares outstanding in 2023; and 63,518,042 Class A shares and 18,124,627 Class B shares outstanding in 2022 | 804 | 572 |
Additional paid-in capital | 533,648 | 500,642 |
Treasury stock, at cost: 266,519 Class A shares and 105,924 Class B shares in 2023; and 1,626,777 Class A shares and 1,112,446 Class B shares in 2022 | (16,169) | (130,930) |
Retained earnings | 1,385,646 | 1,378,337 |
Accumulated other comprehensive income (loss) | (4,317) | (4,130) |
Total Rush Enterprises, Inc. shareholders’ equity | 1,899,612 | 1,744,491 |
Noncontrolling interest | 19,471 | 18,531 |
Total shareholders’ equity | 1,919,083 | 1,763,022 |
Total liabilities and shareholders’ equity | $ 4,218,053 | $ 3,821,066 |
Common Class A [Member] | ||
Shareholders’ equity: | ||
Treasury Stock, Common, Shares (in shares) | 266,519 | 1,626,777 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Class A [Member] | ||
Common stock, authorized (in shares) | 105,000,000 | 105,000,000 |
Common stock, outstanding (in shares) | 62,053,249 | 63,518,042 |
Treasury Stock, Common, Shares (in shares) | 266,519 | 1,626,777 |
Common Class B [Member] | ||
Common stock, authorized (in shares) | 35,000,000 | 35,000,000 |
Common stock, outstanding (in shares) | 17,989,388 | 18,124,627 |
Treasury Stock, Common, Shares (in shares) | 105,924 | 1,112,446 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues | ||||
Revenue | $ 1,891,274 | $ 1,778,598 | $ 5,630,878 | $ 4,981,168 |
Lease and rental sales | 89,466 | 85,688 | 264,681 | 237,561 |
Total revenue | 1,980,740 | 1,864,286 | 5,895,559 | 5,218,729 |
Cost of products sold | ||||
Lease and rental sales | 62,106 | 58,482 | 184,098 | 162,378 |
Total cost of products sold | 1,586,335 | 1,482,888 | 4,688,537 | 4,117,675 |
Gross profit | 394,405 | 381,398 | 1,207,022 | 1,101,054 |
Selling, general and administrative expense | 257,132 | 242,609 | 770,631 | 692,383 |
Depreciation and amortization expense | 15,872 | 13,961 | 44,731 | 41,545 |
Gain on sale of assets | 220 | 2,209 | 596 | 2,433 |
Operating income | 121,621 | 127,037 | 392,256 | 369,559 |
Other income (expense) | 133 | (215) | 2,384 | 22,182 |
Interest expense, net | 14,194 | 6,275 | 37,415 | 10,662 |
Income before taxes | 107,560 | 120,547 | 357,225 | 381,079 |
Income tax provision | 26,926 | 29,884 | 87,277 | 87,290 |
Net income | 80,634 | 90,663 | 269,948 | 293,789 |
Less: Net income attributable to noncontrolling interest | 356 | 287 | 940 | 733 |
Net income attributable to Rush Enterprises, Inc. | $ 80,278 | $ 90,376 | $ 269,008 | $ 293,056 |
Net income attributable to Rush Enterprises, Inc. per share of common stock: | ||||
Basic (in dollars per share) | $ 0.99 | $ 1.09 | $ 3.30 | $ 3.51 |
Diluted (in dollars per share) | $ 0.96 | $ 1.06 | $ 3.19 | $ 3.41 |
Basic (in shares) | 81,229 | 82,848 | 81,629 | 83,401 |
Diluted (in shares) | 83,987 | 85,313 | 84,251 | 86,045 |
Dividends declared per common share (in dollars per share) | $ 0.17 | $ 0.14 | $ 0.45 | $ 0.39 |
New and Used Commercial Vehicle [Member] | ||||
Revenues | ||||
Revenue | $ 1,235,767 | $ 1,142,201 | $ 3,648,286 | $ 3,176,175 |
Cost of products sold | ||||
Costs of products sold | 1,113,294 | 1,045,658 | 3,287,998 | 2,875,057 |
Parts and Service [Member] | ||||
Revenues | ||||
Revenue | 643,623 | 622,130 | 1,942,979 | 1,763,691 |
Cost of products sold | ||||
Costs of products sold | 410,935 | 378,748 | 1,216,441 | 1,080,240 |
Finance and Insurance [Member] | ||||
Revenues | ||||
Revenue | 6,317 | 7,639 | 19,077 | 22,919 |
Product and Service, Other [Member] | ||||
Revenues | ||||
Revenue | $ 5,567 | $ 6,628 | $ 20,536 | $ 18,383 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Net income | $ 80,634 | $ 90,663 | $ 269,948 | $ 293,789 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation | (2,108) | (5,701) | (187) | (5,823) |
Reclassification of currency translation related to equity method accounting | (601) | |||
Comprehensive income | 78,526 | 84,962 | 269,761 | 287,365 |
Less: Comprehensive income attributable to noncontrolling interest | 356 | 287 | 940 | 733 |
Comprehensive income attributable to Rush Enterprises, Inc. | 78,170 | 84,675 | 268,821 | 286,632 |
Product and Service, Other [Member] | ||||
Other comprehensive income (loss), net of tax: | ||||
Other comprehensive income (loss) attributable to Rush Enterprises, Inc. | $ (2,108) | $ (5,701) | $ (187) | $ (6,424) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] Common Class A [Member] | Common Stock [Member] Common Class B [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock, Common [Member] | Retained Earnings [Member] Common Class A [Member] | Retained Earnings [Member] Common Class B [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Parent [Member] Common Class A [Member] | Parent [Member] Common Class B [Member] | Parent [Member] | Noncontrolling Interest [Member] | Common Class A [Member] | Common Class B [Member] | Total |
Balance (in shares) at Dec. 31, 2021 | 64,662 | 18,598 | ||||||||||||||
Balance at Dec. 31, 2021 | $ 563 | $ 470,750 | $ (36,933) | $ 1,031,582 | $ 787 | $ 1,466,749 | $ 1,466,749 | |||||||||
Stock options exercised and stock awards (in shares) | 168 | |||||||||||||||
Stock options exercised and stock awards | 1 | 2,384 | 2,385 | 2,385 | ||||||||||||
Stock-based compensation related to stock options, restricted shares and employee stock purchase plan | 13,793 | 13,793 | ||||||||||||||
Vesting of restricted share awards (in shares) | 454 | |||||||||||||||
Vesting of restricted share awards | 3 | (7,215) | (7,212) | (7,212) | ||||||||||||
Issuance of common stock under employee stock purchase plan (in shares) | 99 | |||||||||||||||
Issuance of common stock under employee stock purchase plan | 1 | 2,434 | 2,435 | 2,435 | ||||||||||||
Common stock repurchases (in shares) | (288) | (157) | ||||||||||||||
Common stock repurchases | (15,315) | (15,315) | (15,315) | |||||||||||||
Cash dividends declared | $ (8,189) | $ (2,505) | $ (8,189) | $ (2,505) | ||||||||||||
Foreign currency translation | 445 | 445 | ||||||||||||||
Net income | 92,453 | 92,453 | ||||||||||||||
Balance (in shares) at Mar. 31, 2022 | 64,641 | 18,895 | ||||||||||||||
Balance at Mar. 31, 2022 | 568 | 482,146 | (52,248) | 1,113,341 | 1,232 | 1,545,039 | 1,545,039 | |||||||||
Balance (in shares) at Dec. 31, 2021 | 64,662 | 18,598 | ||||||||||||||
Balance at Dec. 31, 2021 | 563 | 470,750 | (36,933) | 1,031,582 | 787 | 1,466,749 | 1,466,749 | |||||||||
Foreign currency translation | (5,823) | |||||||||||||||
Net income | 293,789 | |||||||||||||||
Balance (in shares) at Sep. 30, 2022 | 63,561 | 18,138 | ||||||||||||||
Balance at Sep. 30, 2022 | 571 | 494,703 | (123,781) | 1,291,602 | (5,637) | 1,657,458 | $ 18,561 | 1,676,019 | ||||||||
Balance (in shares) at Mar. 31, 2022 | 64,641 | 18,895 | ||||||||||||||
Balance at Mar. 31, 2022 | 568 | 482,146 | (52,248) | 1,113,341 | 1,232 | 1,545,039 | 1,545,039 | |||||||||
Stock options exercised and stock awards (in shares) | 244 | |||||||||||||||
Stock options exercised and stock awards | 2 | 3,244 | 3,246 | 3,246 | ||||||||||||
Stock-based compensation related to stock options, restricted shares and employee stock purchase plan | 4,203 | 4,203 | 4,203 | |||||||||||||
Vesting of restricted share awards | (1,423) | (1,423) | (1,423) | |||||||||||||
Common stock repurchases (in shares) | (673) | (496) | ||||||||||||||
Common stock repurchases | (38,438) | (38,438) | (38,438) | |||||||||||||
Cash dividends declared | (8,128) | (2,521) | (8,128) | (2,521) | $ (8,128) | $ (2,521) | ||||||||||
Foreign currency translation | (567) | (567) | (567) | |||||||||||||
Net income | 110,227 | 110,227 | 446 | 110,673 | ||||||||||||
Balance (in shares) at Jun. 30, 2022 | 64,212 | 18,399 | ||||||||||||||
Balance at Jun. 30, 2022 | 570 | 488,170 | (90,686) | 1,212,919 | 64 | 1,611,037 | 18,274 | 1,629,311 | ||||||||
Reclassification of foreign currency translation related to equity method | (601) | (601) | (601) | |||||||||||||
Noncontrolling interest equity | 17,828 | 17,828 | ||||||||||||||
Stock options exercised and stock awards (in shares) | 16 | |||||||||||||||
Stock options exercised and stock awards | 227 | 227 | 227 | |||||||||||||
Stock-based compensation related to stock options, restricted shares and employee stock purchase plan | 3,554 | 3,554 | 3,554 | |||||||||||||
Vesting of restricted share awards (in shares) | 3 | |||||||||||||||
Vesting of restricted share awards | (31) | (31) | (31) | |||||||||||||
Issuance of common stock under employee stock purchase plan (in shares) | 102 | |||||||||||||||
Issuance of common stock under employee stock purchase plan | 1 | 2,783 | 2,784 | 2,784 | ||||||||||||
Common stock repurchases (in shares) | (769) | (264) | ||||||||||||||
Common stock repurchases | (33,095) | (33,095) | (33,095) | |||||||||||||
Cash dividends declared | (8,995) | (2,698) | (8,995) | (2,698) | (8,995) | (2,698) | ||||||||||
Foreign currency translation | (5,701) | (5,701) | (5,701) | |||||||||||||
Net income | 90,376 | 90,376 | 287 | 90,663 | ||||||||||||
Balance (in shares) at Sep. 30, 2022 | 63,561 | 18,138 | ||||||||||||||
Balance at Sep. 30, 2022 | 571 | 494,703 | (123,781) | 1,291,602 | (5,637) | 1,657,458 | 18,561 | 1,676,019 | ||||||||
Balance (in shares) at Dec. 31, 2022 | 63,518 | 18,125 | ||||||||||||||
Balance at Dec. 31, 2022 | 572 | 500,642 | (130,930) | 1,378,337 | (4,130) | 1,744,491 | 1,763,022 | |||||||||
Stock options exercised and stock awards (in shares) | 228 | |||||||||||||||
Stock options exercised and stock awards | 2 | 3,412 | 3,414 | 3,414 | ||||||||||||
Stock-based compensation related to stock options, restricted shares and employee stock purchase plan | 13,080 | 13,080 | 13,080 | |||||||||||||
Vesting of restricted share awards (in shares) | 422 | |||||||||||||||
Vesting of restricted share awards | 3 | (6,964) | (6,961) | (6,961) | ||||||||||||
Issuance of common stock under employee stock purchase plan (in shares) | 102 | |||||||||||||||
Issuance of common stock under employee stock purchase plan | 2,828 | 2,828 | 2,828 | |||||||||||||
Common stock repurchases (in shares) | (623) | (84) | ||||||||||||||
Common stock repurchases | (25,280) | (25,280) | (25,280) | |||||||||||||
Cash dividends declared | (8,897) | (2,692) | (8,897) | (2,692) | (8,897) | (2,692) | ||||||||||
Foreign currency translation | 232 | 232 | 232 | |||||||||||||
Net income | 90,455 | 90,455 | 335 | 90,790 | ||||||||||||
Balance (in shares) at Mar. 31, 2023 | 63,225 | 18,463 | ||||||||||||||
Balance at Mar. 31, 2023 | 577 | 512,998 | (156,210) | 1,457,203 | (3,898) | 1,810,670 | 18,866 | 1,829,536 | ||||||||
Balance (in shares) at Dec. 31, 2022 | 63,518 | 18,125 | ||||||||||||||
Balance at Dec. 31, 2022 | 572 | 500,642 | (130,930) | 1,378,337 | (4,130) | 1,744,491 | 1,763,022 | |||||||||
Foreign currency translation | (187) | |||||||||||||||
Net income | 269,948 | |||||||||||||||
Balance (in shares) at Sep. 30, 2023 | 62,053 | 17,989 | ||||||||||||||
Balance at Sep. 30, 2023 | 804 | 533,648 | (16,169) | 1,385,646 | (4,317) | 1,899,612 | 19,471 | 1,919,083 | ||||||||
Balance (in shares) at Mar. 31, 2023 | 63,225 | 18,463 | ||||||||||||||
Balance at Mar. 31, 2023 | 577 | 512,998 | (156,210) | 1,457,203 | (3,898) | 1,810,670 | 18,866 | 1,829,536 | ||||||||
Stock options exercised and stock awards (in shares) | 237 | |||||||||||||||
Stock options exercised and stock awards | 1 | 3,479 | 3,480 | 3,480 | ||||||||||||
Stock-based compensation related to stock options, restricted shares and employee stock purchase plan | 5,952 | 5,952 | 5,952 | |||||||||||||
Vesting of restricted share awards | (54) | (54) | (54) | |||||||||||||
Common stock repurchases (in shares) | (890) | (195) | ||||||||||||||
Common stock repurchases | (40,305) | (40,305) | (40,305) | |||||||||||||
Cash dividends declared | (8,812) | (2,725) | (8,812) | (2,725) | (8,812) | (2,725) | ||||||||||
Foreign currency translation | 1,689 | 1,689 | 1,689 | |||||||||||||
Net income | 98,275 | 98,275 | 249 | 98,524 | ||||||||||||
Balance (in shares) at Jun. 30, 2023 | 62,572 | 18,268 | ||||||||||||||
Balance at Jun. 30, 2023 | 578 | 522,375 | (196,515) | 1,543,941 | (2,209) | 1,868,170 | 19,115 | 1,887,285 | ||||||||
Stock options exercised and stock awards (in shares) | 124 | |||||||||||||||
Stock options exercised and stock awards | 1 | 1,888 | 1,889 | 1,889 | ||||||||||||
Stock-based compensation related to stock options, restricted shares and employee stock purchase plan | 6,265 | 6,265 | 6,265 | |||||||||||||
Issuance of common stock under employee stock purchase plan (in shares) | 107 | |||||||||||||||
Issuance of common stock under employee stock purchase plan | 1 | 3,123 | 3,124 | 3,124 | ||||||||||||
Common stock repurchases (in shares) | (750) | (279) | ||||||||||||||
Common stock repurchases | (44,174) | (44,174) | (44,174) | |||||||||||||
Cash dividends declared | $ (10,574) | $ (3,255) | $ (10,574) | $ (3,255) | $ (10,574) | $ (3,255) | ||||||||||
Foreign currency translation | (2,108) | (2,108) | (2,108) | |||||||||||||
Net income | 80,278 | 80,278 | 356 | 80,634 | ||||||||||||
Balance (in shares) at Sep. 30, 2023 | 62,053 | 17,989 | ||||||||||||||
Balance at Sep. 30, 2023 | 804 | 533,648 | (16,169) | 1,385,646 | $ (4,317) | 1,899,612 | $ 19,471 | 1,919,083 | ||||||||
Retirement of treasury shares and par value adjustment | 224 | 3 | (224,520) | 224,744 | 3 | 3 | ||||||||||
Retirement of treasury shares and par value adjustment | $ (224) | $ (3) | $ 224,520 | $ (224,744) | $ (3) | $ (3) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 269,948 | $ 293,789 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 165,145 | 146,477 |
Gain on sale of property and equipment | (596) | (2,433) |
Gain on joint venture transaction | 0 | (12,500) |
Gain on business acquisition | 0 | (6,958) |
Stock-based compensation expense related to stock options and employee stock purchases | 25,297 | 21,550 |
Provision for deferred income tax expense | 3,508 | 7,921 |
Change in accounts receivable, net | (42,822) | (75,066) |
Change in inventories, net | (193,668) | (264,687) |
Change in prepaid expenses and other, net | (2,078) | 875 |
Change in trade accounts payable | 4,576 | 44,069 |
Change in customer deposits | (13,334) | 9,650 |
Change in accrued expenses | (4,086) | 25,464 |
Other, net | (831) | (4,832) |
Net cash provided by operating activities | 211,059 | 183,319 |
Cash flows from investing activities: | ||
Acquisition of property and equipment | (289,079) | (175,243) |
Proceeds from the sale of property and equipment | 1,890 | 7,014 |
Business disposition | 0 | 27,500 |
Business acquisition, net of cash acquired | 0 | (15,754) |
Other | (3,765) | (11,691) |
Net cash used in investing activities | (290,954) | (168,174) |
Cash flows from financing activities: | ||
Draws on floor plan notes payable – non-trade, net | 188,420 | 277,261 |
Proceeds from long-term debt | 995,081 | 695,169 |
Principal payments on long-term debt | (962,792) | (788,757) |
Principal payments on finance lease obligations | (13,447) | (11,091) |
Proceeds from issuance of shares relating to employee stock options and employee stock purchases | 14,734 | 11,080 |
Taxes paid related to net share settlement of equity awards | (7,017) | (8,669) |
Payments of cash dividends | (37,097) | (33,123) |
Common stock repurchased | (107,037) | (85,270) |
Net cash provided by financing activities | 70,845 | 56,600 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (9,050) | 71,745 |
Effect of exchange rate on cash | (6) | 0 |
Cash, cash equivalents and restricted cash, beginning of period | 201,044 | 148,146 |
Cash, cash equivalents and restricted cash, end of period | 191,988 | 219,519 |
Supplemental disclosure of cash flow information: | ||
Interest | 40,233 | 12,966 |
Noncash investing and financing activities: | ||
Assets acquired under finance leases | $ 40,144 | $ 14,290 |
Note 1 - Principles of Consolid
Note 1 - Principles of Consolidation and Basis of Presentation | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1 Principles of Consolidation and Basis of Presentation The interim consolidated financial statements included herein have been prepared by Rush Enterprises, Inc. and its subsidiaries (collectively referred to as the “Company”), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). All adjustments have been made to the accompanying interim consolidated financial statements, which, in the opinion of the Company’s management, are necessary for a fair presentation of its operating results. All adjustments are of a normal recurring nature. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. It is recommended that these interim consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. Results of operations for interim periods are not necessarily indicative of results that may be expected for any other interim periods or the full fiscal year. Restricted Cash Restricted cash consists of deposits for the statutory restriction on cash related to the Company’s captive insurance company of $2.3 million as of September 30, 2023. Stock Split On July 25, 2023, the Board of Directors of the Company declared a 3-for-2 stock split of the Company’s Class A common stock and Class B common stock, which was effected in the form of a stock dividend. On August 28, 2023, the Company distributed one Authorized Shares On May 16, 2023, the Company’s shareholders approved the Certificate of Amendment to the Restated Articles of Incorporation of the Company to increase the number of authorized shares of Class A Common Stock from 60,000,000 to 105,000,000 and Class B Common Stock from 20,000,000 to 35,000,000. Treasury Stock Retirement During the third quarter of 2023, the Company retired 3,052,899 shares of Class A common stock and 1,445,515 shares of Class B common stock. The Company recorded the retirement directly against retained earnings based on the Company’s policy election. The Company accounts for treasury stock using the cost method. There was no effect on the Company’s overall equity position due to the retirement of the treasury shares. Foreign Currency Transactions The functional currency of the Company’s foreign subsidiary, Rush Truck Centres of Canada Limited (“RTC Canada”), is the local currency, the Canadian dollar. Results of operations for RTC Canada are translated to USD using the average exchange rate on a monthly basis during each quarter. The assets and liabilities of RTC Canada are translated into USD using the exchange rate in effect on the balance sheet date. The related translation adjustments are recorded as a separate component of the Company’s Consolidated Statements of Shareholders’ Equity in accumulated other comprehensive income (loss). |
Note 2 - Commitments and Contin
Note 2 - Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 2 Commitments and Contingencies From time to time, the Company is involved in litigation arising out of its operations in the ordinary course of business. The Company maintains liability insurance, including product liability coverage, in amounts deemed adequate by management. However, an uninsured or partially insured claim, or claim for which indemnification is not available, could have a material adverse effect on the Company’s financial condition or results of operations. As of September 30, 2023, the Company believes that there are no pending claims or litigation, individually or in the aggregate, that are reasonably likely to have a material adverse effect on its financial position or results of operations. However, due to the inherent uncertainty of litigation, there can be no assurance that the resolution of any particular claim or proceeding would not have a material adverse effect on the Company’s financial condition or results of operations for the fiscal period in which such resolution occurred. |
Note 3 - Earnings Per Share
Note 3 - Earnings Per Share | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 3 Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share information): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Numerator: Numerator for basic and diluted earnings per share – Net income available to common shareholders $ 80,278 $ 90,376 $ 269,008 $ 293,056 Denominator: Denominator for basic earnings per share – weighted average shares outstanding 81,229 82,848 81,629 83,401 Effect of dilutive securities – Employee and director stock options and restricted share awards 2,758 2,465 2,622 2,644 Denominator for diluted earnings per share – adjusted weighted average shares outstanding and assumed conversions 83,987 85,313 84,251 86,045 Basic earnings per common share $ 0.99 $ 1.09 $ 3.30 $ 3.51 Diluted earnings per common share and common share equivalents $ 0.96 $ 1.06 $ 3.19 $ 3.41 Options to purchase shares of common stock that were outstanding for the three months and nine months ended September 30, 2023 and 2022 that were not included in the computation of diluted earnings per share because the effect would have been anti-dilutive are as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Weighted average anti-dilutive options 1,079 1,500 1,353 1,261 |
Note 4 - Stock Options and Rest
Note 4 - Stock Options and Restricted Stock Awards | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Share-Based Payment Arrangement [Text Block] | 4 Stock Options and Restricted Stock Awards Valuation and Expense Information The Company accounts for stock-based compensation in accordance with Accounting Standards Codification (“ASC”) 718-10, Compensation Stock Compensation, Stock-based compensation expense, calculated using the Black-Scholes option-pricing model for employee stock options, and included in selling, general and administrative expense, was $6.3 million for the three months ended September 30, 2023, and $3.6 million for the three months ended September 30, 2022. Stock-based compensation expense was $25.3 million for the nine months ended September 30, 2023, and $21.5 million for the nine months ended September 30, 2022. As of September 30, 2023, the Company had $13.4 million of unrecognized compensation expense related to non-vested employee stock options to be recognized over a weighted-average period of 2.3 years and $15.6 million of unrecognized compensation cost related to non-vested restricted stock awards to be recognized over a weighted-average period of 1.4 years. |
Note 5 - Financial Instruments
Note 5 - Financial Instruments and Fair Value | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 5 Financial Instruments and Fair Value The Company measures certain financial assets and liabilities at fair value on a recurring basis. Financial instruments consist primarily of cash, accounts receivable, accounts payable and floor plan notes payable. The carrying values of the Company’s financial instruments approximate fair value due either to their short-term nature or existence of variable interest rates, which approximate market rates. Certain methods and assumptions were used by the Company in estimating the fair value of financial instruments as of September 30, 2023, and December 31, 2022. The carrying value of current assets and current liabilities approximates the fair value due to the short maturity of these items. The fair value of the Company’s long-term debt is based on secondary market indicators. Because the Company’s debt is not quoted, estimates are based on each obligation’s characteristics, including remaining maturities, variable interest rate, credit rating, collateral and liquidity. Accordingly, the Company concluded that the valuation measurement inputs of its long-term debt represent, at its lowest level, current market interest rates available to the Company for similar debt and the Company’s current credit standing. Thus, the carrying amount of such debt approximates fair value. |
Note 6 - Segment Information
Note 6 - Segment Information | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 6 Segment Information The Company currently has one The Company also has revenues attributable to three The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company evaluates performance based on income before income taxes, not including extraordinary items. The following table contains summarized information about reportable segment revenues, segment income or loss from continuing operations and segment assets for the periods ended September 30, 2023 and 2022 (in thousands): Truck Segment All Other Total As of and for the three months ended September 30, 2023 Revenues from external customers $ 1,976,395 $ 4,345 $ 1,980,740 Segment operating income 121,675 (54 ) 121,621 Segment income before taxes 107,614 (54 ) 107,560 Segment assets 4,163,261 54,792 4,218,053 For the nine months ended September 30, 2023 Revenues from external customers $ 5,883,127 $ 12,432 $ 5,895,559 Segment operating income 391,870 386 392,256 Segment income before taxes 356,839 386 357,225 As of and for the three months ended September 30, 2022 Revenues from external customers $ 1,859,823 $ 4,463 $ 1,864,286 Segment operating income 126,770 267 127,037 Segment income before taxes 120,373 174 120,547 Segment assets 3,688,151 54,428 3,742,579 For the nine months ended September 30, 2022 Revenues from external customers $ 5,205,802 $ 12,927 $ 5,218,729 Segment operating income 368,596 963 369,559 Segment income before taxes 380,397 682 381,079 |
Note 7 - Income Taxes
Note 7 - Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 7 Income Taxes The Company had unrecognized income tax benefits totaling $5.3 million as a component of accrued liabilities as of September 30, 2023 and December 31, 2022, the total of which, if recognized, would impact the Company’s effective tax rate. An unfavorable settlement would require a charge to income tax expense and a favorable resolution would be recognized as a reduction to income tax expense. The Company recognizes interest accrued related to unrecognized tax benefits in income tax expense. The Company had approximately $302,000 accrued for the payment of interest as of September 30, 2023 and December 31, 2022. No amounts were accrued for penalties. The Company does not anticipate a significant change in the amount of unrecognized tax benefits in the next 12 months. As of September 30, 2023, the tax years ended December 31, 2019 2018 |
Note 8 - Revenue
Note 8 - Revenue | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 8 Revenue The Company’s non-lease and rental revenues are primarily generated from the sale of finished products to customers. Those sales predominantly contain a single delivery element and revenue from such sales is recognized when the customer obtains control, which is typically when the finished product is delivered to the customer. The Company’s material revenue streams have been identified as the following: the sale of new and used commercial vehicles, the arrangement of associated commercial vehicle financing and insurance contracts, the performance of commercial vehicle repair services and the sale of commercial vehicle parts. Taxes collected from customers relating to product sales and remitted to governmental authorities are excluded from revenues. The following table summarizes the Company’s disaggregated revenue by revenue source, excluding lease and rental revenue, for the three months and nine months ended September 30, 2023 and 2022 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Commercial vehicle sales revenue $ 1,235,767 $ 1,142,201 $ 3,648,286 $ 3,176,175 Parts revenue 376,183 373,207 1,141,081 1,080,552 Commercial vehicle repair service revenue 267,440 248,923 801,898 683,139 Finance revenue 2,869 4,113 9,369 13,211 Insurance revenue 3,448 3,526 9,708 9,708 Other revenue 5,567 6,628 20,536 18,383 Total $ 1,891,274 $ 1,778,598 $ 5,630,878 $ 4,981,168 All of the Company's performance obligations and associated revenues are generally transferred to customers at a point in time. The Company did not have any material contract assets or contract liabilities on the balance sheet as of September 30, 2023. Revenues related to commercial vehicle sales, parts sales, commercial vehicle repair service, finance and the majority of other revenues are related to the Truck Segment. |
Note 9 - Leases
Note 9 - Leases | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Leases of Lessee and Lessor Disclosure [Text Block] | 9 Leases Lease of Vehicles as Lessor The Company primarily leases commercial vehicles that the Company owns to customers primarily over periods of one ten The Company’s policy is to depreciate its lease and rental fleet using a straight-line method over each customer’s contractual lease term. The lease unit is depreciated to a residual value that approximates fair value at the expiration of the lease term. This policy results in the Company realizing reasonable gross margins while the unit is in service and a corresponding gain or loss on sale when the unit is sold at the end of the lease term. Lease and rental income during the three and nine months ended September 30, 2023 and September 30, 2022 consisted of the following (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Minimum rental payments $ 77,685 $ 73,797 $ 229,276 $ 205,070 Nonlease payments 11,781 11,891 35,405 32,491 Total $ 89,466 $ 85,688 $ 264,681 $ 237,561 |
Note 10 - Accumulated Other Com
Note 10 - Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | 10 Accumulated Other Comprehensive Income (Loss) The following table shows the components of accumulated other comprehensive income (loss) (in thousands): Balance as of December 31, 2022 $ (4,130 ) Foreign currency translation adjustment 232 Balance as of March 31, 2023 $ (3,898 ) Foreign currency translation adjustment 1,689 Balance as of June 30, 2023 $ (2,209 ) Foreign currency translation adjustment (2,108 ) Balance as of September 30, 2023 $ (4,317 ) The functional currency of the Company’s foreign subsidiary, RTC Canada, is its local currency. Results of operations of RTC Canada are translated into USD using the average exchange rates on a monthly basis during the year. The assets and liabilities of RTC Canada are translated into USD using the exchange rates in effect on the balance sheet date. The related translation adjustments are recorded in a separate component of stockholders' equity in accumulated other comprehensive loss and the statement of comprehensive income. |
Note 11 - Accounts Receivable a
Note 11 - Accounts Receivable and Allowance for Credit Losses | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 11 Accounts Receivable and Allowance for Credit Losses The Company establishes an allowance for credit losses to present the net amount of accounts receivable expected to be collected. Under Accounting Standards Update No. 2016-13, Financial Instruments Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Accounts receivable consists primarily of commercial vehicle sales receivables, manufacturers’ receivables and leasing, parts and service sales receivables and other trade receivables. The Company maintains an allowance for credit losses based on the probability of default, its historical rate of losses, aging and current economic conditions. The Company writes off account balances when it has exhausted reasonable collection efforts and determined that the likelihood of collection is remote. These write-offs are charged against the allowance for credit losses. The following table summarizes the changes in the allowance for credit losses (in thousands): Balance December 31, 2022 Provision for the Nine Months Ended September 30, 2023 Write offs Against Allowance, net of Recoveries Balance September 30, 2023 Commercial vehicle receivables $ 160 $ (33 ) $ − $ 127 Manufacturers’ receivables 573 1,814 (1,414 ) 973 Leasing, parts and service receivables 1,589 3,352 (2,561 ) 2,380 Other receivables − 9 (7 ) 2 Total $ 2,322 $ 5,142 $ (3,982 ) $ 3,482 |
Note 12 - Acquisition
Note 12 - Acquisition | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | 12 Acquisition On May 2, 2022, the Company completed the acquisition of an additional 30% equity interest in RTC Canada, resulting in an 80% controlling interest in RTC Canada. The acquisition was accounted for as an acquisition achieved in stages under ASC 805, Business Combinations As of May 2, 2022, the Company established a noncontrolling interest related to the minority holders. The fair value of the 20% noncontrolling interest in RTC Canada is estimated to be $17.8 million. The fair value of the noncontrolling interest was estimated using a combination of the income approach and a market approach. Since RTC Canada is a private company, the fair value measurement is based on significant inputs that are not observable in the market and thus represents a Level 3 measurement as defined in ASC 820, Fair Value Measurement The purchase price was allocated based on the fair values of the assets and liabilities at the date of acquisition as follows (in thousands): Cash $ 4,310 Accounts receivable 19,072 Inventory 56,255 Property and equipment, including real estate 80,196 Floor plan notes payable (30,501 ) Trade payables (19,978 ) Customer deposits (1,980 ) Accrued liabilities (7,875 ) Notes payable (69,545 ) Goodwill 44,174 Franchise rights 3,906 Other 3,422 Equity investment in RTC Canada (37,309 ) Noncontrolling interest (17,828 ) Gain on equity method investment (6,958 ) Total $ 19,361 The goodwill of $44.2 million for the RTC Canada acquisition was primarily attributable to the synergies expected to arise after the Company obtained a controlling interest in the entity. Prior to May 2, 2022, the Company accounted for its 50% equity interest in RTC Canada as an equity-method investment. Subsequent to the Company’s acquisition of the additional 30% equity interest on May 2, 2022, operations of RTC Canada are included in the accompanying consolidated financial statements. |
Note 13 - Subsequent Event
Note 13 - Subsequent Event | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 13 Subsequent Event On November 1, 2023, the Company entered into that certain Second Amended and Restated Inventory Financing and Purchase Money Security Agreement with PACCAR Leasing Company (“PLC”), a division of PACCAR Financial Corp. (the “PLC Amended and Restated Agreement”). Pursuant to the terms of the PLC Amended and Restated Agreement, PLC agreed to make up to $300.0 million of revolving credit loans to finance certain of the Company’s capital expenditures, including commercial vehicle purchases and other equipment to be leased or rented through its PacLease franchises. The Company may borrow, repay and reborrow amounts pursuant to the PLC Amended and Restated Agreement from time to time until the maturity date, provided, however, that the outstanding principal amount on any date shall not exceed the borrowing base. The PLC Amended and Restated Agreement requires the Company to maintain a minimum balance threshold of $190,000,000. Advances under the PLC Amended and Restated Agreement bear interest per annum, payable on the fifth day of the following month, at our option, at either (A) the prime rate, minus 1.95%, provided that the floating rate of interest is subject to a floor of 0%, or (B) a fixed rate, to be determined between the Company and PLC in each instance of borrowing at a fixed rate. The PLC Amended and Restated Agreement expires on December 1, 2025, although either party has the right to terminate the PLC Amended and Restated Agreement at any time upon 180 days written notice. |
Insider Trading Arrangement
Insider Trading Arrangement | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Issuer Rule 10b5-1, Material Terms [Text Block] | During the three months ended September 30, 2023, none of the Company's directors or officers (as defined in Rule 16a-1(f) of the Securities Exchange Act of 1934) adopted, terminated or modified a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement (as such terms are defined in Item 408 of Regulation S-K). |
Note 3 - Earnings Per Share (Ta
Note 3 - Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Numerator: Numerator for basic and diluted earnings per share – Net income available to common shareholders $ 80,278 $ 90,376 $ 269,008 $ 293,056 Denominator: Denominator for basic earnings per share – weighted average shares outstanding 81,229 82,848 81,629 83,401 Effect of dilutive securities – Employee and director stock options and restricted share awards 2,758 2,465 2,622 2,644 Denominator for diluted earnings per share – adjusted weighted average shares outstanding and assumed conversions 83,987 85,313 84,251 86,045 Basic earnings per common share $ 0.99 $ 1.09 $ 3.30 $ 3.51 Diluted earnings per common share and common share equivalents $ 0.96 $ 1.06 $ 3.19 $ 3.41 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Weighted average anti-dilutive options 1,079 1,500 1,353 1,261 |
Note 6 - Segment Information (T
Note 6 - Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Truck Segment All Other Total As of and for the three months ended September 30, 2023 Revenues from external customers $ 1,976,395 $ 4,345 $ 1,980,740 Segment operating income 121,675 (54 ) 121,621 Segment income before taxes 107,614 (54 ) 107,560 Segment assets 4,163,261 54,792 4,218,053 For the nine months ended September 30, 2023 Revenues from external customers $ 5,883,127 $ 12,432 $ 5,895,559 Segment operating income 391,870 386 392,256 Segment income before taxes 356,839 386 357,225 As of and for the three months ended September 30, 2022 Revenues from external customers $ 1,859,823 $ 4,463 $ 1,864,286 Segment operating income 126,770 267 127,037 Segment income before taxes 120,373 174 120,547 Segment assets 3,688,151 54,428 3,742,579 For the nine months ended September 30, 2022 Revenues from external customers $ 5,205,802 $ 12,927 $ 5,218,729 Segment operating income 368,596 963 369,559 Segment income before taxes 380,397 682 381,079 |
Note 8 - Revenue (Tables)
Note 8 - Revenue (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Commercial vehicle sales revenue $ 1,235,767 $ 1,142,201 $ 3,648,286 $ 3,176,175 Parts revenue 376,183 373,207 1,141,081 1,080,552 Commercial vehicle repair service revenue 267,440 248,923 801,898 683,139 Finance revenue 2,869 4,113 9,369 13,211 Insurance revenue 3,448 3,526 9,708 9,708 Other revenue 5,567 6,628 20,536 18,383 Total $ 1,891,274 $ 1,778,598 $ 5,630,878 $ 4,981,168 |
Note 9 - Leases (Tables)
Note 9 - Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Leases, Lease Income [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Minimum rental payments $ 77,685 $ 73,797 $ 229,276 $ 205,070 Nonlease payments 11,781 11,891 35,405 32,491 Total $ 89,466 $ 85,688 $ 264,681 $ 237,561 |
Note 10 - Accumulated Other C_2
Note 10 - Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Balance as of December 31, 2022 $ (4,130 ) Foreign currency translation adjustment 232 Balance as of March 31, 2023 $ (3,898 ) Foreign currency translation adjustment 1,689 Balance as of June 30, 2023 $ (2,209 ) Foreign currency translation adjustment (2,108 ) Balance as of September 30, 2023 $ (4,317 ) |
Note 11 - Accounts Receivable_2
Note 11 - Accounts Receivable and Allowance for Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Financing Receivable, Allowance for Credit Loss [Table Text Block] | Balance December 31, 2022 Provision for the Nine Months Ended September 30, 2023 Write offs Against Allowance, net of Recoveries Balance September 30, 2023 Commercial vehicle receivables $ 160 $ (33 ) $ − $ 127 Manufacturers’ receivables 573 1,814 (1,414 ) 973 Leasing, parts and service receivables 1,589 3,352 (2,561 ) 2,380 Other receivables − 9 (7 ) 2 Total $ 2,322 $ 5,142 $ (3,982 ) $ 3,482 |
Note 12 - Acquisition (Tables)
Note 12 - Acquisition (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Cash $ 4,310 Accounts receivable 19,072 Inventory 56,255 Property and equipment, including real estate 80,196 Floor plan notes payable (30,501 ) Trade payables (19,978 ) Customer deposits (1,980 ) Accrued liabilities (7,875 ) Notes payable (69,545 ) Goodwill 44,174 Franchise rights 3,906 Other 3,422 Equity investment in RTC Canada (37,309 ) Noncontrolling interest (17,828 ) Gain on equity method investment (6,958 ) Total $ 19,361 |
Note 1 - Principles of Consol_2
Note 1 - Principles of Consolidation and Basis of Presentation (Details Textual) $ / shares in Units, $ in Millions | 3 Months Ended | |||||
Aug. 28, 2023 $ / shares shares | Jul. 25, 2020 | Sep. 30, 2023 USD ($) $ / shares shares | May 16, 2023 shares | May 15, 2023 shares | Dec. 31, 2022 $ / shares shares | |
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.01 | $ 0.01 | ||||
Common Class A [Member] | ||||||
Additional Share Issued for Every Two Shares of Common Stock | 1 | |||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.01 | |||||
Common Stock, Shares Authorized | 105,000,000 | 105,000,000 | 60,000,000 | 105,000,000 | ||
Treasury Stock, Shares, Retired | 3,052,899 | |||||
Common Class B [Member] | ||||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.01 | |||||
Common Stock, Shares Authorized | 35,000,000 | 35,000,000 | 20,000,000 | 35,000,000 | ||
Treasury Stock, Shares, Retired | 1,445,515 | |||||
Stock Split From [Member] | ||||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 3 | |||||
Stock Split To [Member] | ||||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 2 | |||||
Deposits for Restrictions Related to Captive Insurance Company [Member] | ||||||
Restricted Cash and Cash Equivalents, Current | $ | $ 2.3 |
Note 3 - Earnings Per Share - E
Note 3 - Earnings Per Share - Earnings Per Share Calculation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Numerator for basic and diluted earnings per share – Net income available to common shareholders | $ 80,278 | $ 90,376 | $ 269,008 | $ 293,056 |
Denominator for basic earnings per share – weighted average shares outstanding (in shares) | 81,229 | 82,848 | 81,629 | 83,401 |
Effect of dilutive securities– Employee stock options and restricted share awards (in shares) | 2,758 | 2,465 | 2,622 | 2,644 |
Denominator for diluted earnings per share – adjusted weighted average shares outstanding and assumed conversions (in shares) | 83,987 | 85,313 | 84,251 | 86,045 |
Basic earnings per common share (in dollars per share) | $ 0.99 | $ 1.09 | $ 3.30 | $ 3.51 |
Diluted earnings per common share and common share equivalents (in dollars per share) | $ 0.96 | $ 1.06 | $ 3.19 | $ 3.41 |
Note 3 - Earnings Per Share - A
Note 3 - Earnings Per Share - Anti-dilutive Securities (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Anti-dilutive options – weighted average (in shares) | 1,079 | 1,500 | 1,353 | 1,261 |
Note 4 - Stock Options and Re_2
Note 4 - Stock Options and Restricted Stock Awards (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-Based Payment Arrangement, Option [Member] | ||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 13.4 | $ 13.4 | ||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 2 years 3 months 18 days | |||
Share-Based Payment Arrangement, Option [Member] | Selling, General and Administrative Expenses [Member] | ||||
Share-Based Payment Arrangement, Expense | 6.3 | $ 3.6 | $ 25.3 | $ 21.5 |
Restricted Stock [Member] | ||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 15.6 | $ 15.6 | ||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 1 year 4 months 24 days |
Note 6 - Segment Information (D
Note 6 - Segment Information (Details Textual) | 9 Months Ended |
Sep. 30, 2023 | |
Truck Segment [Member] | |
Number of Reportable Segments | 1 |
Other Segments [Member] | |
Number of Operating Segments | 3 |
Note 6 - Segment Information -
Note 6 - Segment Information - Segment Reporting Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Revenues from external customers | $ 1,980,740 | $ 1,864,286 | $ 5,895,559 | $ 5,218,729 | |
Segment operating income | 121,621 | 127,037 | 392,256 | 369,559 | |
Segment income before taxes | 107,560 | 120,547 | 357,225 | 381,079 | |
Segment assets | 4,218,053 | 3,742,579 | 4,218,053 | 3,742,579 | $ 3,821,066 |
Truck Segment [Member] | |||||
Revenues from external customers | 1,976,395 | 1,859,823 | 5,883,127 | 5,205,802 | |
Segment operating income | 121,675 | 126,770 | 391,870 | 368,596 | |
Segment income before taxes | 107,614 | 120,373 | 356,839 | ||
Segment assets | 4,163,261 | 3,688,151 | 4,163,261 | 3,688,151 | |
Other Segments [Member] | |||||
Revenues from external customers | 4,345 | 4,463 | 12,432 | 12,927 | |
Segment operating income | 267 | 386 | 963 | ||
Segment income before taxes | (54) | 174 | 386 | ||
Segment assets | $ 54,792 | $ 54,428 | $ 54,792 | $ 54,428 |
Note 7 - Income Taxes (Details
Note 7 - Income Taxes (Details Textual) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 5,300,000 | $ 5,300,000 |
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | $ 302,000 | $ 302,000 |
Domestic Tax Authority [Member] | ||
Open Tax Year | 2019 2020 2021 2022 | |
State and Local Jurisdiction [Member] | ||
Open Tax Year | 2018 2019 2020 2021 2022 |
Note 8 - Revenue - Disaggregate
Note 8 - Revenue - Disaggregated Revenue by Revenue Source (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue | $ 1,891,274 | $ 1,778,598 | $ 5,630,878 | $ 4,981,168 |
Commercial Vehicle [Member] | ||||
Revenue | 1,235,767 | 1,142,201 | 3,648,286 | 3,176,175 |
Parts [Member] | ||||
Revenue | 376,183 | 373,207 | 1,141,081 | 1,080,552 |
Commercial Vehicle Repair Service [Member] | ||||
Revenue | 267,440 | 248,923 | 801,898 | 683,139 |
Financial Service [Member] | ||||
Revenue | 2,869 | 4,113 | 9,369 | 13,211 |
Insurance [Member] | ||||
Revenue | 3,448 | 3,526 | 9,708 | 9,708 |
Product and Service, Other [Member] | ||||
Revenue | $ 5,567 | $ 6,628 | $ 20,536 | $ 18,383 |
Note 9 - Leases (Details Textua
Note 9 - Leases (Details Textual) | 9 Months Ended |
Sep. 30, 2023 | |
Minimum [Member] | |
Lessor, Leases, Term of Contract | 1 year |
Maximum [Member] | |
Lessor, Leases, Term of Contract | 10 years |
Note 9 - Leases - Rental Income
Note 9 - Leases - Rental Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Minimum rental payments | $ 77,685 | $ 73,797 | $ 229,276 | $ 205,070 |
Nonlease payments | 11,781 | 11,891 | 35,405 | 32,491 |
Total | $ 89,466 | $ 85,688 | $ 264,681 | $ 237,561 |
Note 10 - Accumulated Other C_3
Note 10 - Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2023 | |
Balance | $ 1,744,491 | $ 1,744,491 | ||
Balance | $ 1,899,612 | 1,899,612 | ||
AOCI Attributable to Parent [Member] | ||||
Balance | (2,209) | $ (3,898) | (4,130) | (4,130) |
Foreign currency translation adjustment | (2,108) | 1,689 | 232 | |
Balance | $ (4,317) | $ (2,209) | $ (3,898) | $ (4,317) |
Note 11 - Accounts Receivable_3
Note 11 - Accounts Receivable and Allowance for Credit Losses - Allowance for Accounts Receivable (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Balance | $ 2,322 |
Current period provision | 5,142 |
Write offs against allowance, net of recoveries | (3,982) |
Balance | 3,482 |
Commercial Vehicle Receivables [Member] | |
Balance | 160 |
Current period provision | (33) |
Write offs against allowance, net of recoveries | 0 |
Balance | 127 |
Manufacturers' Receivables [Member] | |
Balance | 573 |
Current period provision | 1,814 |
Write offs against allowance, net of recoveries | (1,414) |
Balance | 973 |
Leasing, Parts and Service Receivables [Member] | |
Balance | 1,589 |
Current period provision | 3,352 |
Write offs against allowance, net of recoveries | (2,561) |
Balance | 2,380 |
Other Receivables [Member] | |
Balance | 0 |
Current period provision | 0 |
Write offs against allowance, net of recoveries | (7) |
Balance | $ 2 |
Note 12 - Acquisition (Details
Note 12 - Acquisition (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | ||||
May 02, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | May 01, 2022 | |
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain | $ 0 | $ 6,958 | |||
Goodwill, Gross | $ 416,420 | $ 416,363 | |||
RTC Canada [Member] | |||||
Equity Method Investment, Ownership Percentage | 30% | 50% | |||
RTC Canada [Member] | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 30% | ||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Including Subsequent Acquisition, Percentage | 80% | ||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Percentage | 50% | ||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Fair Value | $ 44,700 | ||||
Deferred Tax Liabilities, Reclassification of Foreign Currency Translation Adjustment | 2,200 | ||||
Deferred Tax Liabilities, Re-measurement of Equity Method Investment | 600 | ||||
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value | 17,828 | ||||
Goodwill, Gross | $ 44,200 | ||||
RTC Canada [Member] | Measurement Input, Discount Rate [Member] | |||||
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Measurement Inputs | 0.11 | ||||
RTC Canada [Member] | RTC Canada [Member] | |||||
Subsidiary, Ownership Percentage, Noncontrolling Owner | 20% | ||||
RTC Canada [Member] | Other Income (Expense) [Member] | |||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain | $ 7,000 |
Note 12 - Acquisition - Fair Va
Note 12 - Acquisition - Fair Values of Assets and Liabilities Acquired (Details) - RTC Canada [Member] $ in Thousands | May 02, 2022 USD ($) |
Cash | $ 4,310 |
Accounts receivable | 19,072 |
Inventory | 56,255 |
Property and equipment, including real estate | 80,196 |
Floor plan notes payable | (30,501) |
Trade payables | (19,978) |
Customer deposits | (1,980) |
Accrued liabilities | (7,875) |
Notes payable | (69,545) |
Goodwill | 44,174 |
Franchise rights | 3,906 |
Other | 3,422 |
Equity investment in RTC Canada | (37,309) |
Noncontrolling interest | (17,828) |
Gain on equity method investment | (6,958) |
Total | $ 19,361 |
Note 13 - Subsequent Event (Det
Note 13 - Subsequent Event (Details Textual) - Subsequent Event [Member] - Revolving Credit Facility [Member] | Nov. 01, 2023 USD ($) |
Line of Credit Facility, Maximum Borrowing Capacity | $ 300,000,000 |
Line of Credit Facility, Minimum Balance Threshold | $ 190,000,000 |
Debt Instrument, Prime Rate Floor | 0% |
Prime Rate [Member] | |
Debt Instrument, Basis Spread on Variable Rate | 1.95% |