RUSHA - Earnings call transcript Q3 2019

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Rush Enterprises Third Quarter 2019 Earnings Conference Call. [Operator Instructions]

I'd now like to hand the conference over to your speaker today, Mr. Rusty Rush, Chairman, CEO and President. Thank you. sir. ahead, go Please

Rusty Rush

everyone. call. our morning, earnings quarter release conference Welcome good third to XXXX Well,

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

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

Steve Keller

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

Rusty Rush

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

our outpacing by X with We was initiatives impacted this execution X financial to the Class and the sales. significantly aftermarket of continued truck quarter, our positively by market on successful Class which performance are pleased both new X

quarterly of per $X.XX dividend declare cash We are proud another to also common share.

shop million revenues aftermarket, $XXX X.X% body the the service of were and third XXXX. In our parts, over or quarter

ratio was absorption strong Our XXX%.

a and strategic ordering solutions, include aftermarket decline of network. parts growth our and platform, technology aftermarket direct the technicians sales was representatives, continued and addition activity, in to industry e-commerce dealership expedited our activity energy Given increase quarter our our of service aftermarket initiatives, of result in the the modest which the this sector

quarter strategic factoring initiatives, successful fourth We seasonal in our expect our aftermarket revenues With execution in we winter the months. continued to market through and quarter, service remain the parts the the XXXX. of to industry outperform and through fourth normal activity stable expect declines in

Turning to of Class the sales. trucks, X up accounting X,XXX U.S sold Class X We truck XX% market. for and year-over-year X.X% total new

Our healthy was Research retail over-the-road XXXX. XXX,XXX U.S units ACT Class currently sales forecasts vocational by sales and customers. performance to X primarily driven be truck in

Class believe third our in We expect a And Class we sales the retail quarter. sales X to to truck new X the have in the peaked result, decline quarter quarter. compared third fourth as

that sales retail XXXX. XXXX. will in our are Class XXXX, units We XXXX X down XXX,XXX sales to results XX% be overall exceed confident Research from forecasts ACT

Historically, of another for our inventory increase construction trucks Class in of the and X market X non-peak from medium X.X% positioned duty, share market reached outperform setting rental to for market to customers. sales due share. and believe truck markets, us, X,XXX X record are well ready-to-roll market. we our and and activity new In units was the This increases truck quarter accounted our U.S Class in and to our we nationwide XXXX, strong

units this XXX,XXX up U.S to year, be X forecasts sales from X Research X% ACT to Class XXXX.

truck for but retail to the the we that X%. with fourth the outpace X XXX,XXX X fleet down quarter, down be quarter to or XXXX, X quarter throughout some compared expect sales this truck sales to third of year. this our timing X some expect will large X Class to X forecasts year, ACT of in sales we earlier Research We deliveries to Class in will -- due industry the

will expect consistent our We results with the industry. be

Our of the used truck quarter over sales were third down XX% XXXX.

current is used positioned market is we’ve year. demands. our level that considered normal to of confidence depreciating rate, are at And values its than While the meet was faster a used it what lowest truck inventory to truck appropriately

is As which positive always, helped employees this me important achieve us and quarter. work continued such thank results dedication, to for their it for hard our

your take will I that, questions. With

Operator

And Thank Instructions] first comes you. Stephens. with [Operator question Long our from Justin

You may proceed.

Justin Long

morning. Good Thanks.

Rusty Rush

Good morning, Justin.

Justin Long

could service service, revenue start this you saw what and about talk that parts in your forward. to parts for parts going outgrow and Rusty, curious to service the headwind should it the what maybe was So, energy the made you industry prior quarter? the if similar with and Just comment you was quarter and business

and you should kind grows mid-single thinking be digits? single digit we ballpark, of industry guys So low the grow s

Rusty Rush

Everything folks a expect now to are in day. and we right them on we to yes, mostly track. sales, forecasting industry outpace taking -- of expect always, part XXXX sort reverse, book we're how that slightly have all what up as We with But, place, put four you’re will in hit the the still fruition but inspiring. next three action, flat for ball. initiatives the of we we’ve at That's right with Well, is this look do got we of expect We we It's on that last the and we service over we that track, still and not -- that's believe everything years and sales right? we waiting initiatives all the still yet. seen years, grow coming. year

about asked You energy.

to energy get Now continues worse.

it exact or so, right. think I was last an XX% And XX% to like quarter. like to QX have it it's remember XX% I tell to We number. -- going was XX% Now, XX%. I'm down was don't right now. XX% you if over first And quarter, I said

gotten but still in hasn't either. here XX% well over are it of compiling some And We off. October any better that,

sector. in So, see I foreseeable at least the a don't upside, energy of lot future the in

most was We to showed think obviously, have, do comps. is we've weather, made performance one the fact huge or with from But that unlike perspective, are last energy. in some I that, the we XXXX, over some the investments of to able and three four exposure tough both years. energy we seeing because the in the systems We've important people been my energy headwinds. that's things

Justin Long

G&A next from year. should impact what motion could opportunity into how and going fourth that on cost in update size quarter? then, the put know that of Any That's helpful. we I you Okay. And the see much wheels an like cuts of secondly, the look in on

Rusty Rush

Well, the expect is instead But phase fourth precise always historically it a G&A very to will us of anyway. tried you the button take want strategically you don't typically say some try and bone, just would we the when months the the take to hit just we've to just, good -- the want [indiscernible] I last couple be -- sure impact will the off spent -- it's bone through into and place the -- will to for that can. the fully to meat hitting first off year. quarter. it take make going We've it of do quarter by QX and the three and take be organization in any you fat

the of -- parts results the perspective, oh, trucks but as I the everybody get trucks hope same realize a years, the I the digits, heavy the mid-single and the truck. from strong, right? make guess projections medium-duty same, next we of offset one organization medium-duty year, with service going three between the that I gets our we really on all I hoping -- loaded, dollar So maintaining strong on sell of it some obviously help X, gets right? to we changing dynamics some in truck dollars with couple try a remain really from Class once stuff we’ve medium-duty perspective things industry other overlooked to go million lot through the realize a pretty infatuated sometimes, and of don't for or it market takes one a in I'm a next last that fully of industry. better and forward, to month the market four At stable the -- and At the couple -- of So the and time, we in business, side. or mile growing

good we little but than bit know asked, that. me. I So a you I feel more you about know answered

Justin Long

it I appreciate will the the I quarter. want. That’s and I congrats what on responses. pass on,

Rusty Rush

Thank you.

Operator

with of Obin next And from America. our Bank comes question Andrew

proceed. may You

Andrew Obin

Good morning, Rusty.

Rusty Rush

Mr. Good Obin. morning,

Andrew Obin

Just a G&A. on question

just So correctly? of you I month hear Did the of said of XXXX? million can a per that to sort that couple you clarify, through take end

Rusty Rush

goal. the I’m roughly That's … And

Andrew Obin

… so so [indiscernible] the And --

Rusty Rush

back will come naturally down truck not looking remember, go S on sales SG&A, XXXX, down. G&A, if Just

So [multiple speakers]

Andrew Obin

Right.

-- just sorry, So yes.

Steve Keller

[Technical some there's difficulty] digits, run attached rate, expense single mid to we that. grow the back ends to extent,

So that's not taking …

Rusty Rush

Right.

Steve Keller

leaving a current … a year. for the entire at $X month million less

We growth talked will single spend back mid that you money to to about. that end generate Rusty

… So

Andrew Obin

at if the able should of end stay of, X take to sort months said if by million, But I Right. face be value, million. you flat, times things you what XX $XX year take the just

Rusty Rush

months. don't January, I I in think. I XX No, Andrew. since take starting didn't

So that's XX.

spend we most did but we time, is the parts grow it, remember, same it. from if at and when service point, we parts let's And to number. gross would of keep XX% start dollar create stay flat a it stay part service, we we grow grow of not spend I’m and yes, that, create part there. But Steve's the part we them in if So bit, and then, of profit do perspective, be the to about flat. So parts the If that we talking service, good a of same, okay?

to up we're it's zero you not leverage if So X%. create So driver -- probably growth going X.X% the it. X%, And X% spend that at we of least to is total are without then right? don't spend, X%, up create

flat just it. $XX Well, on can if you that's you stay yes, of million So though, top. out the take

Andrew Obin

that of Okay. you margin in you and think That flat. changes back, talked like historically, sequentially, I parts makes just terms service model then service I of and And grow and enable And sense. about gross structural business to parts is sequentially profitability know there. to usually looking guys service would parts

over whether it you of long-term? you. we margin drop-off gross talk its not can and about So XQ? still grow And for Thank or can sort services in the structure in parts means

Rusty Rush

and year, strong discounts as it that take at went some some QX. think I first to rebates to stay We I and whole, as this is said you purchasing to -- were better had expect just sometimes off, you there don't look whole year. into a that Well, QX. it QX stuff there. take year a I'll some think there, But explain, in if if the flowed in QX it purchasing on We

quarters. I XX% back two run I realized last to I in these find our And just know any service you or can in XX% I can't. up caught that don't gets you and bet, and three about year. think margin business. going years we're for yearly everybody the the Sometimes go parts

can made see in a automatic -- an going XX% jump, whole this you continuous be see effort year's XX%. think it big year's there's it it in for not But performance. step. not is we up. will year you direct I So, a we going believe just -- that to And still but to progress, And this creep believe jump It's from It's performance. made, not progress to continual the to we've continue immediately to a in And in I okay? effort. can a happen XXXX, think but it's overall

you right now. the think look of I by I So when XX.X% will end we're year you back, so think like find the or

were were I go little don't best think so. have be we under XX%. the year, was in year, have we a if and in But would of it bit been and So QX the or to whole 'XX. front in which We number XX%, years a me. last I would therefore know 'XX lot than in better grow I we three what the the

Andrew Obin

just quarter? squeeze the in if asking are could write-downs any there And People used and I more. one-time one inventory if were

Rusty Rush

of nothing normal. No, outside

I right, I think margin to up X%. from was actually QX. If our remember it was X%

blended sell? we that So X%. on do good X%, day job. trucks we've in we into a and done That's pretty out. all day Yes, we but Do that take losses

you. manage want stuff, if see not hear we're it. win in X%, to above you staying you mean, I the outside us taking of on business, the every how promise So to our I any don't losses probably truck, don't I then normal that's and

don't car in business. like Just every used win the on you car

that's the You gave into always blended win But I been you. all. them don't number

any they're So good We any the for feel market. -- priced X,XXX sir. and units about the unusual? in inventory we properly No, have

Andrew Obin

you Thank much. very

Rusty Rush

Thank welcome. You're Andrew. you,

Operator

question Credit our And with next Jamie Cook from Suisse. comes

proceed. You may

Jamie Cook

and Steve. you? are Good morning, Rusty Hi. How

Rusty Rush

are We good.

Jamie Cook

on I the telling you then I in this into until questions, wait quarter, comment your And Could to on of question, and particular. could to when And have you my to specific see the one your industry second One debate on what then whether orders to improve? then it the of not on are happens terms or whether guess start length in There guess is Rush. should expect two just is Rush, customers a do the or next we XXXX? fourth Rusty. in more extend view year. downturn, we

As I us you're trying Street's question to like your I because, sort estimate up service understand? you level rewrite asked your guess XXXX Thank of could I'm a be parts better, theoretically comfort obviously, context earnings for you. growing just your hold to or business, any the the with give for last this this story should as you And stock.

Rusty Rush

with [Technical Well, back to then Difficulty] want I easier the going that's start I I'm truck probably market. to I for it. -- to That's me get -- will will approach

and that. model a build numbers do guys give numbers back the out, So As a I macro get I okay? a around can you I But that build know, get second. you overall to will in will model to you -- around don't

next good they is getting oversupply on hits being Obviously, mean, back mind in year. pretty good year-ago that anywhere like look 'XX taking an And being from up really year rate are there's There at I going already then contracts are is sure our QX 'XX now. the marketplace what QX As trucks it's there. -- going while still QX. in acceptance, if there I'm QX. So we're -- Obviously, feel that are -- the on, rates I feel XX%. booked, contract my still the -- to that off about go still are on are record new out tender XX%. because out was right? -- just percolating, you their goes, folks up far guys percolating year I of you what's debating in be in business. solid you big not in as purchasing my everybody some next right a thought, mind.

part up itself that guys has right going are always earlier in are last But to So the bankruptcies you year. why it. to cycle, why smaller of getting that's came more up. as growing big clean fine, be now. and this the mid-sized the repos, the That's That's through get what in client

are on SX some a little 'XX do everyone middle we an may may So what people in ever up. to remember decide this to two but since trying -- that take year. getting but replacement has next the the It in effect was -- of wait biggest They cleansed trucks, years history. that and longer. 'XX

But don't XX know. you three it trucks we has you is something -- with an like range the is the be out driven not in But there's real will Where be, should only units supply that? process. for the just the or see has are XX,XXX order do know when? represent demand better in OEMs orders natural. to I think and again. that something would cleansing So a mind, to are or of And steady, people down. these would don't They're not know -- XX,XXX XX,XXX year, doing that's something crazy ago. with that And that are ask be Freight not up were to lot there that know And naturally -- next will for if of at. going little that. creeping right all But in I’m that know I I intake, start But next but where I here range. reports. trucks, years like we to just be we coming okay? doing in that you been they go look rates solid deal or I months, having what are in they some my got OEMs. don't that look to that, which of me don't going you I I going -- up in all expect XX that yet. for a see now. That's oversupply to I

I there -- mean a that right We just to what's all. don't at booked. in anything I the downside But right, be number much I I out truck fresh be it's Class are looked an I there a some slightly upside see retail. see think business [indiscernible] for year. more it, that's okay, if honest. will they knowing If it sales. will People out ACT's taking Well, pretty U.S sometimes at number. not X going I -- I on, think put election fleets now. enjoy and don't

my I've order. wait this like that know little happened just opinion, like that I bit And longer fact, -- it we okay? might So is a In before. seen before

I old I'm now, think getting I'm XX.

So these. of few I have seen a

it. into for off going compared at be or high-end will slight can't QX. can So, next coming Jamie, the this year QX, I buy you, should I wherever XXX get to But retail pinpoint deliveries but down it it Getting U.S XXX, lands. I tell it of year, whatever

I QX, QX. compared Not be the just often mean there So will to deliveries industry. me,

you're because So work work, what know we're you I'm business I'm solid. sure not for I'm and now. the know not I want right now, got giving first make. in working I exact, we're I -- I quarter. I But I pretty quarter. either get good, don't I feel to first a the still will pretty asking in the a really I'm not. right still if year you I have one still -- can you working truck when?

times month this It's that. more to it's We don't back to back right. stuff, So XX-day nine these more anymore. have lead

… So

Jamie Cook

Yes.

Rusty Rush

And at. are where we that's just

Jamie Cook

But exact can us way truck. make of G&A. on of there mean calibrate on industry. own service probably our puts better I'm number. about to like takes? any whether is can talked You be, parts, road, so you mix, can just the we But you you an help with give for track want I XXXX? want where and don't don't don't We XXXX, to But you. think you a sort You sort the be Thank on know if driving like, on assumption will we're

Rusty Rush

going going say Well, I to mid I'm am to say -- single.

we approach, I like gave take But million map, think better I'm going of remember, I then, a are drive can -- [indiscernible] taking ago because of $XX to. add second sold And about, done. that's got middle out get cost X% to the proper back said stuff okay, G&A, going you've I I’m and it cutting the a take answer I that. to when would You the I mean, what if but X.X% of costs you

a So get the growth little bit then and truck G&A of side. there, the you

much. to Your right take be will are now, going market better. to better. to I'm up saying side, to be XX%? in is right? don't be truck say to more conservative to My somewhere a that business up have We and XX% But I hits any -- goal I do XX% only are I expect there. typically the going us gas a either. the little guess bit I oil XX%, don't off. XX%, on that say XX% You're they or

do. past, So little nervous a I'm little up I'm in something we the But come it. we've a history always with bit, shows hedging about

yes, So, around pretty here. group folks a good of

out. something find will We

I'm going before. we you better my focus I number, very We figure now I -- I past would segments. help been in in we've not XX whether things. okay? -- in what I got to know mind, to way the can of you like after confident it's I've about it's I'm a to to got a done. it's I'm a lot something a it's I've But of the going than dip think don't just good model and Because not be in achievable. and in than as wild it's just will of ever head -- of in better on lots out, give but number a my giving been And a in and Why? we've I'm going get market eyed are really years target today confident -- of start right I that. whole lot ever

Jamie Cook

Thank appreciate right. All Okay. color. your you. I

Rusty Rush

to for. what can conference to I out I seeing you you best know estimates start you're I But look having the guidance. looking up in doing giving for at color -- forward the I'm the by way December. without to it

Jamie Cook

else. Thank you, I do, Rusty. too, so does everyone

Rusty Rush

You bet.

Operator

our proceed. Research. comes Neil Buckingham question And with Frohnapple next from Please

Neil Frohnapple

morning, Congrats Good a guys. on quarter. great Yes.

Rusty Rush

Thanks.

Neil Frohnapple

curious years given about the seen going And just the the impact the as talk if is parts you on the the share to of a several point? for couple side as take over house? of as that guys Navistar that follow-up, market revenue that behind they've and can negative just a Rusty, lots gains share seeing service low guess XXXX, performance this Again, really headwind, last you was when the view I'm of to benefit? I opportunity start is you or years. in do more it years at an still from

Rusty Rush

Well, We've we're going troughed, already better okay. than doing one we have. it's this and only year direction,

I are our the think in just 'XX. It's real. in And get I be that seeing phase, division it's going performance continue to to but see spot, rocket going it. continue sweet a We overall. not improve, to to ship let's think because to it's going And in we're not improvement

like put four okay, that's to comments into years from 'XX, -- in. perspective. are nine old. our that old, really old. get trucks parts when is and a spot in that X-year service X, we starting sweet -- just obviously, just to XXXX, we're years eight where sweet got And, there Our spot so in we X, That's We've

to we're right. we’ve -- share, little starting So build market but

market seeing not of share. XX% So the effects you're

perspective. service what at are a still parts far XX% up looking You running to as as from we're and

locations. better, hidden perform going I tailwind obviously, And year. no the few -- it's helping in better, tailwind. that it's a for it is been continue things, been I've to all saying years it make we every make the things, is to better a there, always helping, it getting and do So to they it's to can with There question. that's is are is helped that

We dealer. the have been largest

but more the operation, in don’t max would trucks you, not cleaned for I'm XX plus XX% of I in really So the quantifying and [indiscernible] export international to expect plus stuffs it -- of -- out. -- all. trucks more max I say there's operation, XX% all

And -- but was market so low it originally. a share

couple couple years of share. really -- the Really, better are and you're putting market parts not right? three of of service So years that. they new still getting trucks, last the from So

from are get going about is You the XX% of thing running to range. they all continue you’re already were think How -- gains, I've duty when I to this -- But better. It's in to Medium seeing. answered, it's better. share get that going that?

We services forward. will continue going as flow into parts we and

Neil Frohnapple

Okay, got it.

a be nice will time. tailwind that positive So over

Rusty Rush

for very -- just be years, That to perspective much Obviously, personnel we're not a a very continue. product, man, that beat was personnel to locations -- those right. down too continue was [Indiscernible] a beat perspective. from as It in a mature those from wasn't it it should much down.

we're going that to but of that that country, the of of the in over way side in to show about too. where level choice to somewhere I that's changed. When we performance. really of [indiscernible] to continue but work good all raise to, max, all house still need your was the I -- We into And up changed going performance. have you the think to opportunity had the that raise -- level That's You you that of lot shop, a up. somebody do broke part on continue go feel we and down, -- had

So …

Neil Frohnapple

provide Okay, on Tallman just other Rusty, great. an color. into opportunities expansion there? just That's Group you the helpful any or JV, M&A Canada Can update out

Rusty Rush

what mean some tell first February. M&A going to as of about lot to that owner been off, a $XXX everything because that just about opportunities later and that with was We've the we systems on we're [technical on some and than million. with ability we got our into of But there of be difficulty] us that culture. actually achieve You it. The is we're take some accepting we committing would expected I won't. it, of them. market is expected whole Tallman. talk pleased a that took be opportunities, and better there something. even and And of -- might go they're owner bringing state, I get. allows would not also, think the integrating that be. But I'm to XX% it very Have to lot results our grown to -- is our reason will too. of I bet. And we a we've saw our Well, And the you -- we thing We systems of think the Because no the in stuff very to

been there up they've And got a involved so -- as of people, owner, nothing negative not great some XX% It's positive there. of we're to M&A shifting And a opportunity obviously, earnings. and it's our performances, group we're the opportunity about well not And anything. positive whole -- there. lot there's a

goes Other up. well, about around excited things that. over get the that Well, couple show we're of next country, perspectives on years. really M&A opportunity So the tough,

phone So day. my phone -- I every answer my

announcement So stuff I close stuff, it. that, until think but you forward. or strategic There is that you an we I go big But we but when I you see as don't about like it -- but M&A rings out will see slug really I don't M&A, there, know will some let talking I some stuff when know strategic of will. really

Neil Frohnapple

Okay, great. That's one final Steve. And one helpful. for then

of guys used performance you gross X.X%. margin gave think the I

handy? have light, medium heavy, that on if curious you Just and

Steve Keller

and is X.X%, is X.X%, is Heavy light X.X%. medium

Neil Frohnapple

so Thanks it. guys. great. Okay, much, Appreciate

Operator

next our Joel comes BMO with Tiss question And from Capital Markets.

You may proceed.

Joel Tiss

How's it guys? going,

Rusty Rush

you Good doing, my morning, friend? Joe. How are

Joel Tiss

feel time. lunch I like been have almost It's there. in here long. I Hanging so

Rusty Rush

No. No.

long. here You that haven't been

Joel Tiss

us on road, the five penetration maybe of roughly? like kind for down in where your ambition Can to where base it what's yes. And frame XX best and you is years to parts like Oh, the be your to? like opportunity class can what's the installed of be, able now longer-term get

Rusty Rush

okay? going X% less to got parts we we this we this to journey have I market, know for when I'm than on on, you. Okay. were rub started the

Joel Tiss

Right.

Rusty Rush

still said, it opportunity are continue ours. and because confidence Where right? running And we I that three huge of we I That's think so heavy to is on the a So outpace we or why got around and I in to what we huge to just mean, make we're in When that. focus doing. have are, focus a the last better we X.X. will was we too, market continue average, the do X, work years.

don't at between think where we're So get to know don’t somewhere right I was was roughly to now, goal I but -- the around X.X%. our X.X%, it's -- X.X% close I get have -- to to XXXX. around I'm by X%

We So were I next goal with we really be X.X% X.X%, XXXX. by and some -- that right. X%, the evolving market. I'm initiatives made to our but think of field. out to tools I mean, we good really an progress, to goal X%, X%, the up like hedge parts would under say to somewhere our about our We that was And range to in get out X.X%, because were in get somewhere okay, going overall the it that X.X%. really put but it's feel good feel some achieving I about the I deal. I about number three onboard they're years over there. the all good feel about we of got to people.

of service we better be technicians about it things just So tied We expand, continue obviously, of that or some if pretty X.X% by at whether every the X% shops. have to in country, time. good I'm not just going to feel with in And growth facilities we area, mobile opportunity we feel we we between And our outside to can that to -- with are our the get shops, it it. our same to, continue XXXX, than across do lot see going, in others. but not the through different a areas embedded somewhere

are on initiatives all the it We areas level service side. those up the to working when on to getting our highest comes

numbers. hope the gives flavor little I So, you that on a

Joel Tiss

be make accelerate to That's sort awesome. was homegrown? then And Yes. that, can you any necessarily all of this needs acquisitions more to or

Rusty Rush

not of lot. a little a -- in Well, our we had goal, but M&A we've very we started, when there, have bit

got to remember… You've

Joel Tiss

a stuff of More that, and like more software right, capability.

Rusty Rush

bet. you Oh,

bet. You

even this. one by That's So out not a it's XX-XX was in that investment Remember, numbers, Tallman like the think okay. deal. about here. because not was there they're an in numbers, it There

don't they even or trucks above You sell see XXX whatever.

and and or okay. numbers not those there. service That's other my see even parts numbers don't in numbers, You

all numbers -- coming even So, year to that will and going five years my in up day we can't an will equal going investment, them because and to to between details be not year half But I'm not to all one your bring you're in to are I underlying. umbrella, truly, That's have to win but investment You deal, why okay. to just in there. And one going bring small under to automatically, really them see built see half a into only okay? a so dollars Canadian But handle in. get exciting there. five, down already it's to that's

Ontario, [indiscernible] And locations. in use we've the is two them all not have XX, Anyway, will area, small hope. we able is some I there built and -- We don’t in, they’ve like year why already lot here that able in in to what Ontario, got have, been have one a I be of -- and that’s there. that's Ontario than all opportunities. they get of So the do something got got next Ontario. it XX some to sometime tools our but But Toronto to of or they've

Joel Tiss

much. That's you Thank great. so

Rusty Rush

very you You to a bet, you day. want I sure don't quickly. go disappear. good Have Joe. Make

Joel Tiss

Yes, sir.

Operator

And Kim from our comes with Gabelli next Shawn question Funds.

may You proceed.

Shawn Kim

quarter. Congrats gentlemen. on a solid morning, Good

Rusty Rush

Well, see too. you good I pretty I soon, morning. guess will

Shawn Kim

look weeks. seeing to Steve couple there yes. and Yes, of in you forward out a We

business. from service the question on me parts and follow-up one Just

business? partners potential do view their So, OEM headwind your Rusty, expanding respective your aftermarket services and Paccar for parts their you business? with TRP represent a So, business, would that how example, for expanding

Rusty Rush

headwinds. don't way. strategy I is it's -- This as see that a No of theirs. any

not the of every Navistar the way strategy and strategies, not with [Indiscernible] work all their and we and participant -- for piece theirs products sell and a participate okay. OEMs maybe have really We participate, our OEMs both trucks TRP We meaning okay. -- around. -- also. Maybe we two medium-duty buy where a hard are totally parts, we

we the partnership for we TRP headwind. Navistar part on sell promote our a not parts store, That's So them, parts that's Even TRP we're same a also. not way. just a sell will as and they

Shawn Kim

Got it.

Rusty Rush

and it. [indiscernible] have We label maybe of both got -- stuff private Navistar both [indiscernible] we support

Shawn Kim

Got it.

helpful. Thank guys. you, Very Okay.

Rusty Rush

bet. You

Operator

this gentlemen, to and call Ladies closing I for would of concludes our today's over Rush Rusty any call. Q&A portion now to remarks. the like Mr. turn

Rusty Rush

be joining to I February of us call the know anyone it will Well, thank you. today. on talk before you, I for guys

happy safe you. So forward. forward coming in very talking And you Thank February. and to everyone I we look holidays to wish a holidays

Operator

this and gentlemen, concludes Thank Ladies participating. for you conference. today’s

now may You disconnect.

Rush Enterprises (RUSHB) 26 Oct 192019 Q3 Earnings call transcript