RUSHA - Earnings call transcript Q1 2018

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, ladies and gentlemen. And welcome to the Rush Enterprises, Inc.

First Quarter 2018 Earnings Results Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct the question-and-answer session and instructions will follow at that time [Operator Instructions].And as a reminder, this conference is being recorded. to host like Mr. today's now would introduce for your conference, I Rush, President. CEO Rusty and Chairman, may you Sir, begin.

Rusty Rush

everyone. first release quarter morning, XXXX Good And earnings conference welcome call. to our

Keller, McRoberts, On President; Vice Secretary. President, Vice and Operating the General are Controller; Hazelwood, Officer; Mike and Goldstone, call Officer; Weaver, today Jay Steve Michael Chief President Executive Counsel Financial Derrek Corporate Chief Vice and

a Now, regarding words say few Steve will statements. forward-looking

Steve Keller

Reform may forward-looking in today make filings the statements considered of statements but those Securities as December statements. these will statements cause that limited in Commission. include or to, our Litigation actual from year annual Important for Certain in our defined and not our include, Private other with Securities expressed could to forward-looking expressed results statements forward-looking materially such are from are Act discussed by differ Because on differ XXXX and XXXX. uncertainties, ended those we the such the Form report those XX, XX-K Exchange by factors implied risk or actual materially and implied results

Rusty Rush

or indicated per news release, we million, $X.X billion share. achieved diluted As and net in of $XX quarter revenues income fourth our of $X.XX

remained Company's charge the million our strong Excluding the our significantly am financial on contributing I growth. are achieved build now $X.XX in strategic platform, focused ERP momentum per share. our continue for to to income we performance to first $XX.X related of our net diluted or initiatives, of We and quarter. $X.XXX extremely team which the proud

the were million, absorption service quarter. body a healthy first the strong a our shop for Our and revenues ratio first record economy. markets annual impacted in results aftermarket, were by positively a XXX% our $XXX vehicle also In and was and the parts commercial quarter

service strength initiative, there aftermarket revenues the were vehicle to fewer in in driven to by this trucks overall from is and international our past market. with Approximately compared increased despite quarter results attributable growth over in by parts the revenues XX% XXXX. market same due aftermarket to years. the these XX.X% several the strategic being We remainder quarter share to depressed first operation broad-based commercial Navistar’s XX% able to of Our in

remain expect aftermarket rest to the our We results will the strong year. of

last the values ACP to to X We closely XXXX. is used the been first XXXX. optimism sales second order quarter. truck Class for quarter believe extremely consistent X in of remainder needs. number truck currently the Class Peterbilt units truck we be XXX,XXX has market to are markets increase are trucks truck accounting segments. Class sold customers and up broad-based the line. all for year-over-year were in total Used by We and will economy we and Turning rates nearly X.X% in U.S primarily renew continue an the of Navistar sales. our dealerships It performing market. X,XXX that product well market trucks slightly months. positioned monitor several is depreciation high X truck be believe experiencing truck and noting international inventory worth sales X new growth XX% intake Class normalized, Economic as our was in with to confidence used in or support We driven strong This up quarter, entering for driving appropriately U.S sales the our as forecast research accelerates will our

to the X% in will capacity of customers duty inventory units with the read of and our support, trucks. for for overall this new nationwide our on medium quarter expect industries to medium to market provide higher strong be XXXX. continued quarter sales truck the we another sales. year, compared fleets U.S. large duty, of sales duty strong economy, XXX Class medium new for reached work growing sales X-X just next the the the will deliveries year. accounting fleet we first our XXXX, and ability in XXX,XXX retail ACT had to sales growth market. expected X to quarters. we truck Class the accelerate third Research X% truck the up X, Class optimism, with our Class of truck In months half several Due economic second up increase X.X% of X-X strength and over X-X second constrained forecasts However, With from We Class in believe X the demand and units, trucks,

the taxes in first As payroll contributed quarter to years, in increased and XXXX. employee of expenses previous benefits

position sheet purchases remains $XX share and to we able though annual even quarter were Our during strong. we’ve balance spends. million bonus on cash And the approximately grow our spent

strong I'll would that, incredibly grateful to them start thank our recognize questions. which achieve year. work, the employees As to our commitment like a helped always, and hard am and I take their to continued customers to for With them us to vision. wish our your their I for

Operator

Our first of from with question Stephens Brad Instructions] [Operator Delco the comes line Inc.

line now Your open. is

Brad Delco

initiatives ahead. know for market about attribute a growth example provided Could XX% of like quarter to look this little that, do that the you XX% a going maybe what what talk of 'XX? to strong and perspective success. where we’re that you I some just seeing some How of you’re give about and parts to bit rest expect But you’ve a seeing this does the from the forward? commentary growth

Rusty Rush

then our strategic two, interesting. we is believe been a into attributable was year dial we in we’re back it initiatives. to of Well, say couple obviously, it QX. on and for working XX% in And and got XX% traction. I three about would we And then we've years. last I well look this getting And

a it's we between comfortable of exacts, not know enablers those are with Now XX% lot and XX% There’s very where those numbers. we’re involved.

We’ve added, last parts We and a XXX sales XXX I think release, your months. ground the perspective. added additional right more driving. me to lot not having now, people. mentioned inside over release, here, it’s quarter. the in whether had around technicians you’re like outside sales sourcing the a We’ve them. putting I service parts, I like press first on added how And As technicians, train in it’s additional to you’re feet the from nine easy, of growing said because that’s the trust XXX press of initiatives that’s We’ve

parts. parts we to lot parts same to our So going you service with that, This makes at of it, time. and your It’s when all put grows a because There obviously training perspective. time, you guess, focus because is going taking around wallet after business accordingly can't the pricing of obviously that lot about normal sale in grow say just your we’re that I incremental and non-proprietary outside of an But your just different initiatives. competing it. your which competition get not going to a business shop market share. but people business parts, a And at proprietary proprietary non-proprietary stuff, business same it’s that’s it’s the which to market. out sell open you’re

give is there I involved, them, to secrete are get there few want probably of don’t are that don’t many other and enablers you Now your always a to sauce. into away want all

ago. the we’re at same year. and I now. started we’re -- time, same to at pretty double-digit up comps about we're accelerating that even very into are where about of forward say going as time, I’m looking we year going but started the to able comfortable, because year it's But though because get get accelerate at still growth is proud time where we’re ago a really comfortable to the we the we harder, maintain very maintain the tougher, be this a Yes, at our comps coming So seeing

said, numbers, continued it. as first accelerate being but am April give has feel I to that after So there good the any pretty I we also. about now, I you to going quarter not mean, look

So we’re we average feel day and per at. where

doubling at So for good our that our over parts and feel and adding to base. almost is we’re XXX same about technicians by our business time we off workforce goal the where XXXX

Brad Delco

been of just other popping that much And is these one what are up. we’ve strategy, a locations or that terms parts some then independent enablers? hearing of the driver How in of is of

Rusty Rush

another even one another But no, of our nothing of another the in part but there substance that's strategy. really. enabler a of little numbers is bit that’s in our That’s that is now currently. just that’s -- not nothing There --

process rolling I before that time the touched investment on it’s touch and numbers. substance out tell probably customer the this we a getting can that not. areas whether that again And have at brand year in to next the this stuff name that currently We’re of any be is OEM and a in we on got don’t regardless places it’s of But year. from year best building an the really it -- of you we're will contributing away probably really,

prove So we’re with got that, excited itself it too. the about just out but opportunities to

confident, feel breadth customer our the given we So of base.

touch given even understanding brand that provide support the breath an customers we more sometimes product without that areas our can national ourselves think and they other in I because without become size, the even of branding have can their with consolidated, upfront, and our support. even that touch lose want we a or of because OEM we

we’re that test out year next the going it. we’re right the So middle and over to of in

Brad Delco

sequentially us quick and And give how through year? to heavy, Steve, then for medium, of then one also Steve. breakout light SG&A be about you may can the think the

Steve Keller

XX.X. medium was X, was X.X, margins, was the On X.X, was use light and heavy

goes, were accelerated in and guys SG&A some we taxes, told benefits, all taxes will That federal as we you QX. subside insurance, related as QX far would comp. employee to As we be in equity

we of our though and that profit As picks produce up increase business $X.XX to back so incremental spent end, forget gross we that. dollar

and unlikely might be G&A pull employee related will I back service. other benefit to rate those we mentioned a G&A you, by that to get increased items while and parts hopefully run small So replaced from it normal

as that QX QX, but So QX pullback then know prior extreme see back. will play out beyond expect an I I the QX, like on at goes but think seasonality And slight QX and a you that QX not versus years. the would that year beyond will you’ll itself in pull maybe normalize

Operator

question Suisse. you. line with Thank And Credit from the comes of Cook Jamie next our

is line open. now Your

Jamie Cook

is sustainable a Rusty, peak peak see to your you your deteriorate parts continue that that given a down market just about then trends you to is my in questions. the that service grow to is we’ve a XXXX, the about that share? the I ability And order do to concerned ability think been we things business think How the guess, are And what market to ’XX we X is degree what couple year. ’XX to in it’s like that the and think second start deteriorate. grow question and assuming ’XX assuming to market you overheated XXXX seeing. growth do is One, in degree when Class

Rusty Rush

the what and I’m days, to to over a rinse ’XX I look peak a in around going let XXXX, and thought not XX not last let process. has it believe I, least, peak. month come at just me that some me take simplistic as I and XX at

XX% road business. look the market Let’s the by X back, truck over is driven remember Class the still

a if Class sold the look years retail So and and ‘XX U.S ’XX. in XXX,XXX you take back X we XXXX again XXX,XXX in retail XXXX, to

and at we’re XXX So because to to up projections XXX we were were those here it’s what If if this units. and units exacts year that with were adding you work XXX,XXX if right. adds year, for those or those look and for have next at X,XXX where two we’re up XXX, ACTs

that going public carry for they carriers, out two about talking typically the it. and it till its about lot stuff a market. traded lots only a are and all those those right replacement if those product it most There’s where goes but first trucks, the we’re where four-year-old bump but years years. that's the because four year. So in last X% of big broad that’s And going over on increase that warrantees road big the to now, once And you’re going basically you’re over into getting from the on on gone average we’re big lifecycle of truck load base secondary

out you’re that then economy now compared is And you or up where in next look, a overheated in want and X%. replacing. add full at for into really in out as OEM year and you to the 'XX the say then look really that close don’t just on is 'XX and you 'XX 'XX is where it where that two-year-look GDP When where street rumors the you and in is So the I say it, was to is there and year.

I the first few that’s holders it’s it’s much build buildings. stuff have supplier I've to Now supplier, It's the tier know move hard the the in stuff XXX are think, lot and they tier can of last questions I’m not the do get some and I’ve you third talked But a it's suppliers few OEMs supplier side to supplier. can more days a second than back always not much from also, around, the a translation heard sure move tier around time to more, to I second a going thousand units. out of

XX,XXX think intake that I not get at say XXX, near can or you’re as over every three well, But so sure is we it about so average. we were going and I quarters least if sense it is -- so, think QX -- order that same you in about to won't look to not because bump somewhere be sales, I roughly out I’m quarter. you’re XXX that’s next sometimes I the on up talking at of confused. XX,XXX you’re make don’t

has slots, on I to that some about things and floor. are like think customers the put probably trying there even to worried there some people been some some who stuff and want control

-- when there is much think on of is pace. into agree at with that them but if -- there to some mean I I it’s suppliers -- I what I our more maintain think production lags you 'XX. going those I look a becomes XXXX into a pretty get there's

at really so. X% something it in deal, we're look or less don’t XXXX don’t bigger -- I So think as ’XX still is I over that that whatever

Jamie Cook

is your business a parts assuming on billing 'XX that say and -- But growth answer question let's just right, downturn, the not before bad. you’re you

the seeing We’re the still cycle we cycle. Are in the competitive, headwinds challenged? front you side? is the lengthen the helps environment you are on particular expecting? given I that on having pricing so supplier -- pricing constraints costs being new that material What with mean, do still what truck the people robust, very are

Rusty Rush

say mean, this seen year I haven’t inflation haven’t seen stuff much that yes, not last slight they it to haven’t increases, some they’re seen not from it’s the else, have they’re I change get we and there. get won't going but yet. won't normal. we’re I to not seeing much change. Are seen from not hit really all it year but everything you say That’s on there yet. With -- it we

Jamie Cook

do is, question this in of think we chin I it of will material more we on have behavior take just do cost? But the terms the guess you my rational cycle? Or

Rusty Rush

you You’re Look, prices talking about will. the unit we get raised. I don’t know if

And important market going if deal. OEM, I there. was but think that’s remains an get OEM crazy, I’m we saying a the it’s get And the the competitive you competitive. wants if don’t But this, with on, it I’ll all. we not them if one still competitive. somebody an get that to deal It's that they’re out OEM deals tell to

shares competitive, more I there’s it prices, giving better get makes OEMs. I always just their big going believe into will but names have in the Everyone move, see someone and deal. if production up I say so that. their ends that not things like get cost all to gotten is But of don’t do it sort see. And out and don’t what would efficiencies I glory I is believe raise But OEMs I’m

the are There just for my is I’m that of is in away, now, from because into I everyone have the But still. big opinion that’s seen. they remain going and big, competitive deal, because though I out think don’t landscape margins one is you’re to it’s they no shying fighting trying a to not backlog competitiveness see the may I But -- the get running but which at stuff just there. to OEM some maybe their to what prices, people material outside get I’ve believe from don’t out the get not my backroom continue to that's not bumps -- -- in there out level. there. job Even deal not offset of positive,

month. all totally sure not next change days, XX I’m going that numbers be because real to that the So each sure pretty could April are another I big over some. to huge XX those is am

slots than into go I them of in that deals I think and they maybe have get some there in know on it's I at on Some some to one negotiate don’t back the going out. and swap there holding they some them that goes OEM but -- OEMs. believe others. of

service So business. now about and the talk let’s part

Jamie that you was is question maintain, said your So what can we again?

Jamie Cook

that am because a to in and see we earnings I asking should you’re just your Well, turn probably grow that business, and to ’XX, depreciate obviously parts down your itself… ability the start wrong power assuming

Rusty Rush

to things in self. if we’re oil and freight through it’s still yes business. can little we’re right because maybe comps I really bit regardless not that I -- of down ’XX, levels down it’s and our in on slowed doing purchases gas believe strategic we’re close the see but slowing a would running and don’t piece little down, to to tied harder lot same Maybe and went a lot constriction ’XX this growth bit the went truck we're a believe And down not -- some of now, but and what have see if a double-digit I headwinds, I showing.

are to been very stuff that. in grow the I’ve of different doing trying we're at We’re to fences I that, of outside got out we abilities because confident our economy stuff all never I’m comfortable. hold the the other what our place, we’re to inside confidence have in great that continue continue grow. more and will numbers, strategic but put tools rolling to I’ve

going terms areas, get I after. still share, maybe I to if wallet we’re we’re some we’re believe -- going that’s the go other take I because what believe Now, to a market in hit,

it, it could growth, with just our going to growing in if single, where least also high and after am teams the looking we’re folks in with my historically years everyone going medium headwinds we’re mentioned on get we in work comments to in doing medium got six side. I trucks of And been that. growth tools but this ago, not XXs a our out had we’re so the that the I and we’re teens minute and share. I from more XX in maintain. at there’s But now the heavy, stuff and share as take to the upper we’re was maintain some seven on at organically maintain in years downgrade both into up, if – to market no that team, I XXs international we’re tell double-digit And and we giving We’re we tough has am but year load. ago. coming every mid and unrealistic got to less XX% player to that we that a seven, you on market can confident the back that go we with spite where And time, fact the

a my up got mind, operation. really share in the growth for business I side more though -- points. positive just will of you parts our All some as wise see growth to less look numbers my the the it even and mind we’re, So even and that because a Navistar vehicles is in at they that was make services actually couple say gaining they’re in up a stellar points, operations so is couple

So everyone run had hustle. and to out

the So that we’re on to up that side under of house. little a close just you, XX points the Peterbilt tells

it diamond only in five should to that we’ve share their more. is because coming any grow quoting is that’s I get or again can't back to be or bet another continue bullet was worse get few that the than trucks got the and It years, there holster, market something better. should as we’re years. can going it doing more now another our And share last that that But better. get they going to get four So better and say more -- is another over deals market only is next

was not you It’s can maybe Our backlog where was I If not double like you is say backlog, where going but it November, that’s meeting, is. to but my told I’m exact give it every the you it’s numbers, in X like backlog at. but strong. times

side. up we’re So only sales that’s or a on and the so. couple side, on But parts points the service

strong with that doing We’re headwinds.

it that’s So our you in see the there but regardless market lot is. where truck side can color abilities in of a am that think grow confident anyway pretty I I of a to

Operator

our line Shlisky And from you. Michael next Thank Seaport with of question Global. the comes

open. now is line Your

Michael Shlisky

the trucks in ask and and through a XXXX I mean having out business? have strong you for parts very follow grow Class that last we a your got positive existing wanted strong previous and strong But 'XX, 'XX, parts do your up there outlook there. peak assets. to in population you’ll initiatives and X XXXX 'XX, in to 'XX, have 'XX higher a that very double-digit answer on strong does you’ve a given If 'XX growth besides and

Rusty Rush

You going say I’m when tell sweet where parts sale vehicle. to because our it we that, spot you a most the could to comes to typical

three, think So your really spots. really sweet part I are five, six, those four, our latter to

'XX, the the going of some the because there is numbers to people. to won’t be will. of hands lot 'XX still look in I good, you A market. So and be feel same at be, just of them going not big pretty They’re

and plenty parts operations for that me that got mandates think if But helping market vehicles told Class get for we’re 'XX feel share, also. to business down should know I sales don’t taking tell the to wait. of confident truck because are -- Don’t have I continue will But feel that get that XXXX. that vehicles side. truck -- and and I but to going we’re to time will at that with 'XX. stay these out. of grow like guessing I into growth much. me continue 'XX, look were because the be you I color service the Obviously, were and in truck am I I don’t is to on to think at our a So comfortable laws, the markets confident, with think miles we’ve an do as and operation think up X will earlier I seen. bit operation far in there I path about have in planning Jamie same we we the 'XX, of little as I’ll ELDs I

Michael Shlisky

secondly, And up shipments. the that that little a it then Why just wouldn’t QX have color. in is you’ll give what's mean about out that -- more Does higher? X bit slightly Just there? a flattish going growth be maybe on Class

Rusty Rush

year. I think we’re in I timing because you so as much still say back the anything, as right as the of know did

what So we when November stuff nice immensely. evolved our lot to has folks have December a that till talk And the that do. or see you over or backlog big I not has not now, January, in those of pick mean a our in the February you stuff orders the from early lot road I -- guys. some that’s customers. just road of over we for is That's backlog

in and other the XX some those days. diverse kicked-in of We’re touch, XX last we very in to markets markets

or It’s times the vehicles of take So use. said, to retailer the things that turning time because done are on. to bodies can getting just a it. in they’re It because and built out more, ours, factory, the the lot they’re being of lead get

XX extended truck, to over at it’s going road times then an the takes XX no It that, to days even lead OEMs it we’re not the so. there over long is seeing the some road and we or XX because there out days. because get can an always that it work is things if So delivered and take you’re truck, like of to did bodywork get from

sort So that I data the will we’re you that going said, here size We’ll market accelerate. having XX%, mean, much I’m as I I got out. of not up. just -- actually timing. to tell I be it’s And be year, up anticipate this we’ll being it to said, we

OEM has look slots My continuing still steeling. We’re slots to and to go sell we still as forward forward. we into

the nicely. half up back strong I the in accelerate And the as It’s of going just been our second of it’s half issue the it are to truck -- look to We’re going and they’ve back the stock to And the year order. in sales years. year. timing

of on have top stock that, a quarter. we good So truck

I consistent bit talking in actually earlier we’ll probably that be every my add so or be in that said know When the case, positive that when will up timing I it’s was goes with I opening slightly. go day I there, the little -- comments, a that I release I more As because press feel issue. my just

Operator

And comes line you. Thank our question Research. next Frohnapple with from Buckingham the of Neil

is now open. line Your

Neil Frohnapple

quarters. related it’s think parts a and particularly on follow-up guys a in So seen strength, have so I been the broad-based few now strong service, you energy markets if I think

can curious energy that if just the markets? continue in think So you

Rusty Rush

other just parts were the look XXX that it Oklahoma, X,XXX, I the rig XX in in don’t that we’re they just I went XXX side. I yesterday, Of XXX it yesterday glanced side, the Texas, over and X,XXX, were what a these oil that the was the and side. gas New XXX roughly for counts happen to of rig in go was oil in in. and something count like but do I mean, XXX Mexico. and -- in it now, And service were I at states did. But Right over XX,

here. all oil south XXX and I the over is this down area of working Permian XX% basin and Ford, the in next the work the of rigs Eagle had here is we the obviously think place down So just biggest XXX oil so which

can’t pipeline an they are the are we be using enough but become we look, become they like as don’t bad the oil for -- probably get into long can and prices moving Permian -- global the They’re right As get get because -- as now. oil me exporting can’t we oil trucks would talking out that about a of exporting. thing we oil

that’s a dime. -- but right I’ve I see raised always it's I slowdown now time, see But the moment. But moment, doesn’t day. one this But don’t at nothing oil it on the right at at do horizon don’t born won't seen that says in It see to Texas, in there going going I and moment, was this that moment is shorter anything this does, it. doesn’t and we horizon, say the this nothing to at the at turn on So it? so moment can it on

Neil Frohnapple

again. the the to guys what's put And positioned the on standpoint? Could And market, of going just on truck how I guess regard used pretty the gross market just currently used with in from is remainder used pricing, outlook question an performance year? then truck from a truck up inventory margin Russia you strong your for you talk

Rusty Rush

We feel comfortable with inventory.

was maybe animal, X,XXX, year. volume the bit fine the to used X,XXX to so it’s an up two little of it that And think truck it’s last animal. which QX was side, I compared an because is -- a -- different X,XXX up we it's or are interesting

trucks, don’t is purchasing -- bouncing used do supporting department on you the more you’re We that’s make when yet and have bringing make times, between packages also same that to margin used margin, then you’re at you -- a of through in on. truck can stuff out we things support then lot and of you for buying our think the we and side, we’re And one always packages side. the have I acquiring truck sale you new used the because Yet trade that the truck truck run it the in. time, think bringing you're a network side new because

on and about really don’t the I talk one talk talked we our stuff goals. goal about but So lot is a truck we thing sales we is think parts about -- our service haven’t calls,

of We we’ve while two, we thought got running going We’ve some out now. control XX,XXX through we’ve control to our used to solid performance couple whatever out to we’ve XXXX. got markets, and I truck the we given, put have do we’re independent our meet inside operations, performance control of processes trucks. now we or of the medium support got them pillars best is mean and same or the help some cannot X plus to X% one got, And to But goals the do same market. we’re year can't market we market, last do our that. what goals got control meet And a on to used. of the new side. Class And also. the goals more We’ve three to into rolling get truck larger used over can

as I used but much, will to comment don’t where I markets the we get back are. think Sometimes

organization, that you this that’s I better don’t on call. the think look So when inside much we talk

sure 'XX it through about trades investors Now we’ll year, and go said with And that as you replacement a strong as time. more lot be is This has we of talk been sit seeing. truck and mind economy there’s lot I’d the 'XX a for as I nicely. go as it's one we’re conferences, I in coming. used the values going this that my in tell more to we held obviously, and to up

XXX I’ve for as the had business in first was we But margins, quarter numbers, -- because first they’re a I best good it truck quarter, usually as a last units was odd think quarter, solid. that truck used time year were solid with a some tough just and seen solid but used long January solid from months. in not February that’s fact had In we

about So I feel good that.

closely, -- sales. retail in all those trades XX,XXX but We there’s will as watch I only because said,

lot going to trucks to a are So delivering going the to if get XXX trades. means which be of you’re earlier, coming stuff you’re as mentioned XX% going I more to them that up, have

perspective see I have on but perspective. feel But we’ll used comfortable the and we am now consumption valuations very how market and truck from the from comfortable of in what watch to you a and confident value I our to with also ground abilities a that So sustains it. got

quarter. have that top is readjust of more You on best because And to we we‘ll used make inventory every sure be do on sure nothing our right to have than the make our truck inventory to business. top, be our and

were -- our practice value we run so would new hot, it. all of that and the stickered until good it each up. don’t you part because up is because then environment, inventory on pull we’re make cleaned summer are of in going different is right they the not and be those and delivery soft where used watching at May now feel take But But And of and revenue. a really most in time, get line soft and lot be to If trucks rate just in deliver right freight they’ll not a be will -- it it closely. look then times, we’re to we’re we used and it but sure we They’ll of truck. we trucks quarter, they -- then won’t about off trucks how truck standard environment. going because we it road, to want new because rate market April while might lose the goes but So was all

much everybody as running wants on can. So as they the road

the a these delivered to going truck and the road to get you for pull I Then need up, and the come, then not lag road, certain -- criteria has used to us. new to it even might it in freight week So because time then they because it for it run until meet detail sold they’re with ready or they’ve used off. put got so

coming no and here it’s to watch But side okay. now the do closely how up. see see where we supply go right goes. to market there up, so And going throughout now But know used we’ll summer question supply is it truck is the --

Operator

Instructions]. [Operator you Thank

line Our Gabelli Shawn next with Asset question Management. comes from Kim the of

open. now is line Your

Shawn Kim

or how of QX resulted quick truck a much tax the reform outside economic of sense guys Do from QX? environment a you the solid tax purchases the question get in Just freight increased expenses depreciation on so in and any side, accelerated either positive environment.

Rusty Rush

to know without the of related I orders place a naming names would tell tax. I fourth quarter customers couple that in their

So without I customers I the We that know [indiscernible]. am not. are some all sure don’t it naming of always put with everybody are names, that. I and upgrading and do then purchases know to just -- stock I repurchase bank some in see accelerating are people that the investing some are, but

But to So has everybody. some not directly tax side yes, some. maybe yes there and can -- accelerated companies purchases I some others. but tax been correlate I’ve yes, -- But some replacement and in or growth seen reform

Shawn Kim

updated a Volkswagen the Any a Nav with recent potential just question, that's acquisition given VW so headlines then larger you PACCAR? and whether some quick even comment with with combination how group the in business dynamic, deal a potential Navistar. And or how could on restructuring of its change your

Rusty Rush

we game them get having know I XXX% have yards that all the I and any mean separate effects I to Rush on two on. don’t made they I’ve run same I whatever there’s because don’t territory operations. in, always -- commitment mean, OEMs Well, the it I’ve both represent

if I have all Chicago the away. Navistar So

will results I about I be our think heard it effective, go. then never them it. So think would don’t complain have I

competitiveness their the be competitive pricing from and thing. So did a has different in it market. I combination good all Volkswagen, accelerates technology, it to it But good we mean, as as everything. to far -- line, it be good purchasing, and board, of brings you think the wherever their only just things look could I mind. represent, my we across whatever a the pretty job table It's Navistar at it product a when from from the

we vocational cars we and brand-new in way the to years well started -- a remember the truck highway we truck. years being everything It's marketplace. got did by couple very engines. to spending we that's the the last on new have and all just in for that with received were for about a else seven You of got money We Navistar rollout

-- ask was all go do guys So Those me harder not. I back It's or four you ago for good years all those was negative are broke where tell me not much everyone things. are you positive. and and you if

best assume hard to so So it's I all about say to what’s things -- we find go that we bad as needed forward. and

say a of worse me ago. three unpolished better yet. it get to like because it's this or be continued always is was unpolished the to inside stuff I that's It years company rough, it can't that four -- get diamond, As any little will

teens for been the us. that’s be the day -- positive a going positive or should one a under over on bodes see if returns it back we they next that of That’s deal saying one that an the just my know the to one -- that their the or but then the could very get close house, that business I and So am three Class I regain a me is which side, week their well it, X criticism, it and to to in to be us. place, consistent for get five spot to marketplace. they be PACCAR teens, years side the has earnings regain as to well, high don’t going back year not organizations that in they’re from not perspective, high mind the in in to

we Class the right represent, support. is really going good the now, I all new on remember through feel with OEMs new out lines into product year that feel lot side. products. that the brands X investment brand a of And products got So couple a got and Class they’ve the with We’ve coming this OEMs comfortable in whichever side very are of I from medium there way our it is a investing about X GM the later on. we

Operator

you. Thank this And questions further time. am no I at showing

to to I’d Rusty So Rush Mr. remarks. return like any the for call closing

Rusty Rush

sprung. that than No, we till to again don't has other have have in much. Thank I a talk wish And months spring you next very July. everybody we you three any good

Operator

Ladies and participating Everyone, conclude conference. in the for and have you may today's does day. gentlemen, thank all great you This a disconnect. program,

Rusty Rush	Chairman, Chief Executive Officer and President
Mike McRoberts	Chief Operating Officer
Steve Keller	Chief Financial Officer
Derrek Weaver	Executive Vice President
Jay Hazelwood	Vice President and Controller
Michael Goldstone	Vice President, General Counsel and Corporate Secretary
Brad Delco	Stephens Inc
Jamie Cook	Credit Suisse
Michael Shlisky	Seaport Global Holdings
Neil Frohnapple	Buckingham Research
Shawn Kim	Gabelli Asset Management

Rush Enterprises (RUSHA) 24 Apr 182018 Q1 Earnings call transcript