RUSHA,RUSHB - Earnings call transcript Q2 2021

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to Rush Enterprises, Inc. reports Second Quarter 2021 Earnings Results. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. now for hand CEO today, would to conference and I speaker your Rusty Instructions] like the to over President. [Operator Rush, Chairman,

begin. may You

Rusty Rush

Good earnings quarter morning, our conference call. and XXXX to welcome release second

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

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

Steve Keller

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

Rusty Rush

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

We common dividend cash share, proud increase are per the very last quarter. to of which X.X% $X.XX declare a over is a

expenses due segments primarily country's contributed managing aftermarket quarter. healthy truck new continued our along increased the continued were X to solid we used strong our support, adherence activity, market results demand for and Our sales economic Class most to and recovery, activity to with for

supply was our as new of be parts And of parts, next are strong year. year. to In add our will throughout those deliveries revenues Despite issues As we aftermarket, meet issues, key financial impact million the the are we chain into shop we component will were look to delaying and body demand, truck back believe service continue revenues results well. negatively the remainder absorption the personnel beginning $XXX.X to as XXX.X%. constraints timing and ratio service ahead, some market and continue to our supply

increased of primarily economic Our nationwide compared second recovery. which result a revenues XX% quarter to is the XXXX, of aftermarket the

but Our and customers back staffing experienced not centers. most increased and to as service the pre-pandemic refuse, only are are technician part a increased and leasing, market issues bit chain -- independent parts, over-the-road sales recovering activity service we particularly levels slower impacted healthy in by continued Service than we common pace a in segments, little at revenues in supply industry.

focusing preventive service help effectively to and technicians leveraged we ahead, impact the parts mitigate and those constraints service Further, we to technologies personnel service part and on expect year. network for market our offerings. remainder impacts, actively Looking maintenance supply and parts the industry help management grew hiring revenues That continue us said, adjust of to and throughout contract are expensive our constraints. dealership the key our supply mitigate to will we parts demand to

deliveries year final aftermarket the our continue to will serve piloting help economy services demand do mile also route are through to gain of efficiency for in healthy. the we believe to Finally, parts optimization remainder increase us We remains overall the customers. our better as

X Class X second market. total of In sales. the US truck quarter, sold the trucks, X% accounting to Class for we Turning X,XXX new

support, market segments a sales activity we for economy were truck especially to strong and and rates, Our driven sales. healthy over-the-road customers most healthy construction vocational, led which and freight truck solid by

We impacted XXXX, by X manufacturers' quarter, US risk truck ACT or investment. flat Class quarter X, this, believe constraints, will available. to quarter sales in X likely second the retail to third units heavy from parts accelerate XXX,XXX results. supplier are impact as to We longer, sales and which this our truck compared this remained to supply causing limited increase able X While component when new new be Class Class believe sales sales XXXX. through Research the will Because to our XXX,XXX production downside trucks continue truck units demand second for capabilities. performance of strong be more year third production we constraints quarter manufacturers in are Class were component up later forecasts believe readily our XX.X% may

X through units US in reached the sales for the of quarter, Class X X,XXX Our market. X.X% new second truck accounting

quarter food service second over increased and the to activity due increased from results leasing Our customers. of XXXX, largely and significantly rental

from to some availability, quarter. we X XXXX. with truck faced supply continue the constraints, will ACT medium-duty forecasts through production third continued manufacturers retail of sales due shutdowns impacting negatively which up be US the XXXX, most XX% represent However, Class units be likely through in to XXX,XXX X Research to

will Looking advantage through increase as sales X, opportunity production the demand we Class every strong in strategies of X Class to not ahead, place as believe possible. take we X and remains have while and quickly teams

shared used as of The to network used third is of natural production our This intent used of Momentum gas of of Fuel the with in Cummins with announced drew second Cummins new same intent fuel letter we Though reflects on is Our and later becoming joint quarter acquire natural up viability long-term and consistent XX.X% of a gas inventory, is belief primarily the America. the our truck to our a this to truck will history In maintain sales time expected second from Class shared we high, and Inc., for challenging systems. market be truck healthy period letter a X interest close our results. truck believe due in Cummins leaders remain Used systems venture capabilities fuel manufacturer the sales in we've units reached natural service values constraints year. throughout quarter, gas equity quarter more June, North XX% a demand extensive trucks. signed to in our XXXX. Technologies. X,XXX it

their important our truck is business your I'll to as thank that, continued take -- is questions. service superior for growing With employees I our it our providing and customers. on it always, focus As

Operator

[Operator Jamie Suisse. line Cook from with Instructions] the Our question of Credit first comes

Your line is open.

Jamie Cook

good and morning hope nice quarter. Hi, -- want I first my I guess just Rusty, could to elaborate. question, you

-- is risk quarter? the And sales quarter is a forecast risk You pushed how Obviously, could continues demand guess then for up your my color much to talked on pushed risk? just gets just industry third second fourth give in to Or about to Do this to I there's for we if you being get XXXX? and there. do that sequentially how truck much flat out wondering, we the I'm make strong. to XXXX? just question. be So it

We book have pricing. order yet because heard open from their XXXX other OEs of reluctance for of sort to

could you unfolding? color so on a see you if And provide that how just little

Rusty Rush

I where days -- Sure. supply we we saw would probably we it's to I'll told component be supply, happy extended given would been unfortunately, to, sources have now. are you me Jamie. my and -- Well, ago, the through if I issue. wasn't there, out But I manufacturers been ask out I part this you out would have XX third had what with somewhat what, might all or days from communications don't will quarter. it had of the by the back end third of of smooth a out it July. We're smooth hopeful XX little end thing see the towards I'm and that quarter. the I've -- the already, away the the

we anyway. a lot to but other see all of parts out I lot going to think wish I weeks a is issues the of and four it next but issues of and for with But had we're sure, still beyond know better issues, that. -- components chip weeks, supply I So myself. the There of Mexico for pressure gauge Asia. about the six a extend coming

of all with. I think is do demand that I we're believe strong. pretty everybody is dealing still that aware

as there to I going the So, and marketplace. said, I I the first want see the fourth don't getting that out, pushed concerned may don't you get to is in it demand the And see quarter. it be away. anybody into about

what were year in Just you issues. you to all these you deliver to, mean for because those prior don't this build made people committed can't commitments because doesn't right,

next here in up So, I actually into first of half moving quarter picked don't the back that I too. think get the lot year, of see the year. a to going of all it's

that very working of -- they some As very some manufacturers, far this currently. as we're lot. are not hesitant what started XXXX deals understand a year numbers, bit little we a are them. are I We've that's just in deals, to stuff, they're on people or that's that -- a on not with not but caught got few say getting on done

on start ATA it really to we're think normally, deal next the them still, year's -- not really expect So, I you When working July. about it's really.

and backlog first of just quarter. XXXX, October It's You think because people our XXXX. large, XXXX really the get typically. in started a up the I first for is maybe worried of half are But about catch lot so September

first So that's -- quarter. want don't I to say

I the don't I the okay? And QX, XX%. at backlog look you mean, I up end if solid. at I So, our of of QX look backlogs, industry, don't of reflective if now that's versus know end We're the mind at our but

issues that little with I get the well, to with. need a So, bit discouraged dealing we're

difficult longer because reasons make But record it time, of at this out that of because have I it done the a quarters more guys last now. And see away demand less, one have the and just that's find, that. bit two are right You demand. ask -- job find. don't taking great to don't little a used spring I orders to a been going same doing away from think is to going the our hard truck

unit look company of think with quarter we the performance six over record pushed evolvement a years to board. think further. anywhere across the the close even I So, just five And of obviously, those for it company out or everything we're to earnings you deliveries the years last so gets numbers, -- little of when speaks kind record at the a not I the

rates lower answers. I to I to out it what don't third that's I August. North because -- came for or to going I second-hand it than might have the be to I exact So, see the change have here back the July don't -- and quarter. we projected don't the through in been be hopefully, not a build see some I'm we back the quarter, that's stretching for semblance hope think production information. in June going one And were America. numbers if fourth And or for anticipated I know I supposed manufacturer get to just But little

Jamie Cook

is And used. was Obviously, the follow-up, just much the just of for and And of given Rusty. relative how used? one back in margin wondering on first in your low sort used saw on Sorry. parts, in the the margins half? side, the we that And just truck wouldn't to also year quarter of performance in I'm truck what half be very inventory comparable but the why new strong pricing,

Rusty Rush

certain smaller whether timing transactions, it's Well, of it's more larger or sometimes transactions. transactions

-- make to close. say they just what way really were margins QX, deals and under typically margins we of lot were think barely think I'm are okay. above on, that were historical, won't they those be we they I used here I but But okay. sold margins good a inventory, in not

So, okay. our low, inventory levels are pretty

be impact taking margins; see. other. or said be customers, did. That I there of I'm new, fleet in at quarter. demand the new going were But not know that, get be and segment, -- business, but anything. not extremely that I every heavy not was supply pleased in to think I could a I've some with small I margins be the You're because in board service. as don't somewhere, be that driven we'll strong that. margins terrible. across the balancing medium good. just side. dip for they're that but -- don't They lot of would because long-term will many We used robust said. might it where or but mix I changing, I of don't still care demand slightly, or thing and care uptick individual is mix only fleet depressed expect parts would will between not super if a that or it customers also But the don't new of inventory see that that and I'm of with I saying it's maybe But sales. side, not slight more were don't

Jamie Cook

Congrats Okay, thank you. quarter. a on nice

Rusty Rush

ma'am. you, Thank

Operator

Thank you.

Justin the Long Our next question of with line Stephens. from comes

Your line open. is

Justin Long

gentlemen. morning, Good

Rusty Rush

Good sir. morning,

Justin Long

question growth parts and and this on a prolonged of a half chain expecting with in talk outlook of and back give on maybe Wanted in service changed the little bit service. has you're you much to can the a color the parts start supply about much Rusty, can how you more result as issues? how year

Rusty Rush

from and as 'XX the mentioned there, still we gradually of quite I we okay, service are months. where the or prior in levels pre-pandemic five to back the in to months holding But say, levels, oilfield and the not -- back increasing. was Well, are to we pre-pandemic were, in because second quarter summer back six then. back parts We're

wise open even didn't while work on that can we typically you solid than have do they're think if the waiting far better supply We've shops be to orders percentage little tell, if as some constraints. I by able more might probably we it numbers, do. we in got parts a bit

it bad, okay. sort not it yes, it's So but of down, slows

So do though always or numbers we've have anything. it's record you're around here. that's put striving even It's had, like way -- more, we together bad like just it's not you to the

do of to as especially see will up talking look but X% we're able as about basis to a probably daily well. level increases in put I services, we I'm the a to back what every jumps that but markets not stress little we the pre-pandemic lot So, gradual on month, continue know see employment parts and to all gradual like. continue organization, It's staff on to a believe and continue

some to inside we We job get the And which less, doing very we're so to constraints. the has more -- people But there. we you're but where to continue don't were do done want we been believe do do, capable is believe demand now. by will but hire doing has skill in and of organization And those that sets the to for some of looking trying do an more, for that still what continue. more we the difficult, bring with mistake there outstanding we're doing way, to we that supply than are but fact back

better. continue levels do those with we margin back-ends we'll and the even the to production make to So, there board, on think, of you continue, -- have here side performance go performance saw never back wasn't that Again, sales the try strive the we though and to expense -- the truck-wise. gotten across management, performance it's it's to to whether volume like sales I and perform I on unit its perspective constraints, those and of kind could due the those prior back that to and did but to from a the deliveries

Justin Long

full to Maybe had to if parts pre-pandemic do just that recovery? was recovered. to And room levels, much of levels, returning point services on fully go not had I that the to recovered we true, in to the how impression but services under And get that. have you pre-pandemic clarify could that's

Rusty Rush

at great whole. as it question. Great, a I was looking

the a is little mix So different.

combined little to recovered daily Service but much margin is Together, as quite are parts. correct, perspective, more margin the the parts. there bit from monthly, total as okay. shifted it You a hasn't

workforce, technicians, So believe qualified to last been to again, hire facts. larger and market can stimulus have and the allowing we're lot more sets world. we're of believe that to paychecks person it people. I our time get we share. be through to upside the -- Or only our the back in difficult to because And of you certain all half, and not read take just It's a more the unemployment year of It's between the job replace -- we of just, work get into able believe doing some that, and technologies Once walk in to are I people. been I'm just fill. talk goes them we there. I everybody's hard parts will us employment. things the technicians the I articles. do that double mean,

stats the numbers. all have and We

of have amount just you because business. going it have are people up blows That's the replacements, recruitment. going part So to of you're to

technician more difficult been it's increase to so And that count.

increasing Now, rate. a are that at And ago, I time we the I back increasing few We in like rate. at we years fact it are gradual one history, just think, our too increased, we actually -- a it. faster

where proficiencies And efficiencies needed weren't and so be. they our to

like think faster doing So just They want there build But out and quite a labor I this get market we stats I going we'd in I'm feel again, a better not good to good But jobs job, It's volume certain that. about better, feel not been are about we bring the but be, tech, just lot overall little we're call. go on sets. the to all much we to to per it hours it's -- that back. are whole into people a than tough in that. different

Justin Long

last expectations quarter one maybe here Any we saw clarity And into fourth in relative Understood. what and for we the as to third for get the SG&A question on Steve. second?

Steve Keller

about to that we in G&A will end mean, QX, about gross parts I to QX that a grow as Yes. we continue the as the to -- and grew in versus back back I Like in said, think hopefully profit continue. sequentially we grew service same increase and XX% percentage compared QX. piece expect SG&A of We'd add grow that.

Rusty Rush

Yes. And S up. was

though high also. volume in board, the with sales trucks the with With up higher margins, was were QX margins across truck even down, S

if we where we margins the to it maintain at, truck just with So can correlate we're where side at profit. -- are will and truck and expect on I S would that similar gross be

Justin Long

quarter. the on the Understood. time. congrats I appreciate And

Rusty Rush

very Justin. much, you Thank

It mine doesn't noticed sort today, sounds it. voice like You is? how of Steve's well

Justin Long

it. does. like It I

Operator

you. Thank

America. the question Andrew of from Obin with comes of next Bank line Our

open. is line Your

Andrew Obin

Yes. Hey. morning, gentlemen. Good

Rusty Rush

Mr. Obin. morning, good Well,

Andrew Obin

guys managing costs. during on how just recovery And could be the the I anticipated, the talk think COVID, is appreciated are be does market, -- structural being there the management is chain -- Can you to thinking I shortage. to of sort part about think how just story answer. -- volatile Can it's very the in manage the what and the than do and near just Steve, make term whoever recovery your labor talk you. Thank you by what starting to guys or your in that approach you us adjustments maybe you you wants constraint, it cycle? to the of need but facing? cost in your this managing Can that going you is remind environment costs Rusty change more that right, the seem us supply to are to

Rusty Rush

cost a a from perspective, you Well, lot. Sure. Andrew, learn

I've think a I few all told you back. that calls

same that is a answer that's spending versus as maybe have. feel to to Because market requires maybe about sequentially the selling other someone. time, not last diligence I the everything parts, put that. going we the do from doing also, what all than stuff, and we to the better in of during some in learn XXX% know spent percentage than the But do. QX. business some historically turning -- not what back, it's percentage believe I profit we're lot we more pretty And things warehousing delivered did It's -- At a part [indiscernible] close if -- it, comes we we've technologies we and job, other I'm adding QX to in we a minute parts, we COVID the I'm a going -- less can just little gross we loading case do. to the us, manage year [ph] or would be I've that we that expect do like certain learn think of can showing a going we're while to And money some people just You of the out, forward, Steve I'm QX. good to I wrenches. said I'm increase allow year. a ago, that's

taking differently, That same the use. had there, to that look perform straightened on get of QX; realize general that on believe mid-level to we do historically there. through still of he's our more than like product. we've I where can But to that will coin. about, told does we We you're regardless like service. in time, And the regional talking do like out taken demand down think. performance to delivery haven't -- to that rolled out the -- have proprietary a mention continue these to optimization it's we on try not And of Some And manager, levels -- in we measurements the add We are that supply the macro, because and put understand we manager, I'd we projects so learning performance company that parts I different future as We've things continuing is going organization, didn't been market sales this years. our side, other us, we're got, whether these We're training. just but are earlier, projects. into is, like want but in the rolled people the of utilize And two it demand some we this so last backlog I'd we to growth that, it's of rolled not years. call that for think And the you're learned three that of but manufacturers the is it as to from We've net and the differently a into problems, projects on something getting go us to is I we going a forward to revenue-producing manage just these with But that XX% problems trust without and said, years we're deal, that And us having. cost a on as I out. But or in some say would now, don't out at to bit truck but has we're I the demand the last near I we little lot case market year into I to the that and going allowing to probably going the turn proprietary the the dollars side. big sides performance. see management both were get seeing trust numbers we that of call. guess some with and this strong. plan to that's I all

Andrew Obin

But the cycle is amount dollar thinking to of right? that sort deployed extra the sales of structurally this this get of is lower still, cost

Rusty Rush

Yes, you, when we structurally you believe need start get I've to really got told you one you spend. we've don't some we always -- cycle, we looked that over to But the spend x. it place. place, at

as of flatten does hit. see It's growth. hard pitch COVID because on lose pitch you the growth fees, because seen late and hits, last flatten these of to out. when the that think you as more up, up, it's cycle other It out, then perspective way. we've revenue with starts goes We the good Like you in -- to the was it just the year the out now sometimes the keep when to right, cost hard a that growth. it As than makes stay going in it to year you're like before. up, just Well, tools place as was hard manage It gross we when back go your a cycle a it from profit perspective flattening earlier it better from cycle gradual or up. put don't starts through sometimes costs that not

side returns which we So, the the lead end will we have, better we at will historically day, manage continue cost than believe much the of to okay. yes, better that, to

Andrew Obin

in the Got gas, you just us end sort like the oil Maybe you. are Thank you. what markets. about past giving us markets and very you've country, of can And construction, your take been useful key doing? around color end we key

Rusty Rush

huge I seeing good feel with a remain part Refuse a and are You better. for but, many -- our mixer would right been that It's already major it, to Well, all going real out, even but of be companies that it strong and continues municipal. we're We players is getting part environment of at bet. private, year. and to this not not this the course, it signs private to we've about meet market. that's We're that's wants remains even municipalities on in us next biggest tell them, market, the on know, have public just of big very customers year. and that's big trucks bigger in we're we're where a a getting been -- relationships that construction you, of where good, strong. not with goodness, the demand stretched mind, why now. not over-the-road and the Again, commitments we're everybody it's on the it's The we business, driver, my that side my as to going earlier for to because into year made we extremely

don't better super one gas oil go we were everybody yes, gas -- company. seven see thought O&G. about Andrew, doing and we it's do, board always we years, back really. an thing talked I the we business. will oil now that's sector Everybody when soft. any gas, and had I we Well, and than years, eight So I'm we're one across you, -- that will mean, telling the carry on. Oil

a service from take barrel oil. parts remember, last to was business Our and got year a slightly But quarter before. were in to up April, of paying the you they you

So depressed. it was totally

I see part it the going up think I be how we'll really some ever rule pickup and really that to don't out open was like again. it spacey. It's the realize seeing don't in could, it but past. spigot I volatile in You're the they is it.

whatever. expect do a I it years to line, even like a we're or I expect some realize much I shifted on Of the middle course, to it one in from the that of strong. did the it's But so be in though or it's down light things it world that's come does is to don't back going not and reliance I'm in the that. ever switch. somewhere the look we're most it going But eventually, country there of of organization, be we proud right fracking if non-carbon-based way,

you're away this still So, decade. that's -- in going not

might will though involved the upon and those So, line tailwind. think just we're heavily play something O&G, It's on and even I we -- some still anymore, do side of down somewhere be that relied we a in back tech mobile get types the things. on not especially,

because covers sectors. one just both robust X.X% market. that say, the it, make toward this in It's -- heavy been it build -- of the year pretty think getting sort building has could okay. who Well, I medium-duty be you almost around. we market you'll for back it's better if most out strong. have year. are going the it's more of Medium-duty later And OEMs gosh, right I trucks remains slide mean demand into one of that a that well, margin will here medium-duty things of are the they I to heavy manufacturer So, on and

those So, that are mind about. things I'm my in all talking good

-- anticipated over-the-road still to or than the six while months strong were, and refuse that. is are succinctly, nine So ago areas what probably some like answer ago months like but probably telling I'm say, you, staying construction question and higher they

Andrew Obin

talking ask know, I carbon-free about but question. what, you future. you And do I will one I'm usually don't more

with any opportunities players, just more you these Can technologies? Thank kind have emerging to be of talk quite you. you have are work electric emerging interaction these do new do there You people than for to been what term bit new What and emerging potential longer and driving, with seem a your about you players dialogue doing realize. autonomous vehicles?

Rusty Rush

those And other guys the always our don't they're of one think things the going But folks it's have no whether mean capabilities, right. from of or any I coming our that. produce distribution to feet strongest come off, inside, by capabilities technologies going would and with doesn't the but product else's. majority the which but own are up-fit the down people the dealerships, biggest but planting stuff routes our we continues had opportunities investing is tell one of to that best doorstep on And cetera. you said centers I up capabilities, They network, won't think they're first and distribution and I the of would that things work we're to OEMs, cover that's just -- than to their ground, larger Well, our and mean, I okay. you board. -- the don't and our it. with we in opportunities -- types in that show a the country, pass, win. listen if not have are startups service continue will we ability inside whole in I aren't we these into -- have are technology and that have these say like are the those et anyone trying people. is of I've network we and in that win on that to our emerging have And whether the new pass Right. other

We those have of a few the around country.

believe is still I one. and day then believe one down -- before. gain were around on that they one still They're were by back So And the or to that's of me, historically nuggets hidden expect to what have a market tailwinds share MaxxForce, still the that's not biggest the somewhere one we'll for be they road. them for to I the Navistar, I need get -- hidden where future growth us. of of

Now, that Traton July, with changed organization. the the in sheet acquisition for think with I closed balance

share change goals been their products products. their believe I organization. think Peterbilt that So, for I and able no have -- will always do PACCAR's And the be stellar. with still to gain will technologies that There's market

like some politicians I we natural So -- it's not do be express that's aren't believe room truckload I going let I And -- They're -- especially the to diesel doing JV, second. to Cummins, the believe I'm will care I gas be to But was don't we That long growth. don't going for believe that of side. turning me going to the going just something side. in for at were for work we that, to not a with I a the here think long this the away be don't truckload do go level want. going can take to opportunity. term. -- term, We on -- believe a going just do the have lot I did but technologies two. regulations that given don't these first are believe or year on I that emerging a being the that's I all driven by government did saying believe great. okay, there's is away Batteries that

to I going a X, with be But XX-year think and great to still did inside get that run [indiscernible] that, everything of that's we got certain it's X, there. is it, this going why Cummins. medium-duty to JV work but segments,

love is carbon to organizations, to fuel by established not some we've transition. XXX be think in -- everybody tell a us the on, and talking but I going And put to enough to I'm do negative won't engines mid-decade allow business. truck that. going combustion transition from the it as the long pressures that's by CNG don't I all think with system years these internal growth, RNG companies, two for grow the combined organizations stuff think transition; are do the lot, that ourselves, know I its some all have I other I going to I especially, be to outside know it of to are number technologies. go player of I we footprint, as with environmental we

for I delve transition a are other to areas. for these technologies, yes, your provide think opportunities question, other into to quite to that few going Rush

an colored into the seven that. you bit as was know. how paying coming last you of regardless the I six us but this at talk feel years, decade to organization there good that me we And and a for maybe leave little it of I'll could moment, gas attention. to about unbeknownst it new out. they're base them, next with years, because actively really know this red, are that involvement can as of our forever, in Some evolve the technologies all I I I out natural tell gives because at

Andrew Obin

so great answer. Thanks That much. a was

Rusty Rush

bet. You

Operator

Our the question Instructions] from next BMO. comes [Operator you. Thank line of Joel Tiss with

open. is line Your

Joel Tiss

it Hey, How's guys. going?

Rusty Rush

Very good, you How today? are Joel.

Joel Tiss

All right. management. expense Well, great definitely,

to you so think got Steve's ease back. pay can cutting get voice he on I his up

Rusty Rush

little That's he's jealous all. Well, me. a of

Steve Keller

Thanks, Joel.

Joel Tiss

see. I

Rusty Rush

the wouldn't him I call know of rest you think could do I and difference. the any let

Joel Tiss

there just timeframe. today. like to -- are with MAN? going get on Or opportunities? of idea the about get could I'm wonder be you're kind just philosophical like can that some going Latin you more your to any parts impact little little the any, to there Navistar Are if I talk Scania bit in five-year starting global a trading American to have that a Or implications opportunities business. be going or of

Rusty Rush

honestly, stream, shops work early drives us, your know three OEM The and just she biggest deal out will about I sure typically get represent. Joel, Well, you in I I and service know research And to and mean, is yet, I'm on the or closed not okay. But ago we for ago. belongs. where might down it there weeks opportunities share share more one okay. the in ballgame those do that the day, a work questions types of don't believe I about is two understand and those for bit back but truly When you got them little what to North in and will parts understand. the easiest be America other me get really market here margin weeks every folks to don't that

a to have I people understand get stuff game I those to be early for getting were integration until transaction the transaction during closed. length said, I been that little So don't haven't of not know, -- till I we as would even -- they my opportunities. personally that like huge close. the number it's in me this Remember, able and are wasn't the over one thing. arm's coming just

stages the those perspective and And from other -- place in listening take ourselves with technology, us always about who might for be minute a about a emerging advantage of for Andrew understanding our ago just opportunities to what beginning we're growth if we're from things. we are, of larger-scale given the opportunities. and good think like I looking in we others talked and So, feel these differentiating obviously our I any obviously, given marketplace

guys the It's new. So because don't you. what too opportunities don't I and don't really conversations understand too new have be it's answer any those folks with yet. everybody. those an -- haven't had know for I I would I

Joel Tiss

to the about look years as other philosophical you're five years. Okay. talk how might kind on dealership of stations And little thinking any go forward XXXX CARB, too. to about partner direction, that model this the how XX to we how California need floating ideas with going change going or you Can in about around are you're business another charging to is

Rusty Rush

technologies we the I California, these a what spent We Sure. grounds deciding to are, we just mean, the of to meeting it first do. needs our Yes, whatever handle going last integrated into do will had really approved. to and California need were how okay. being year we

of are prepared yet, so want Remember, get don't we're units you as the kart demands to manufacturers. meet horse. the people building So, before to thousands

year, California need. will a customers a our from when right, stick someplace. didn't we've stuff do go not a you -- really want and lot out you want but -- just bunch work do year And had we plan, arms to getting a in we don't we approved for weeks We just new plan, just but where and stores got -- charger to at next will it approved around -- our the didn't couple charging all something we it. right, all end yes, of out roll all So out our prepared you along what this of a necessities XXXX really and with CARB, think that go of the a to [indiscernible] half you're or solar, whole do because with all a later, a a this big and ago, the enough do find understand

that. are, do in California, And what on we what We'll good exploring. and about of the thinking start we're But now course, about leader they areas. working feel other would So, we always talking be in space. this about

sound states, I out what the might don't EPA yes, gone about the that haven't to make have not on. where be that I so come to There's the they at going That's pace ahead people I enough told coming about because XXXX outside it with know at might did about is here, areas it's But think like forward will this gosh, why and not it be. I these through not. time JV believe told think out, out at of legislative in or XX about I'm with corner, around year And good I'm for obviously, this EPA industry. other to do I know that I'm be I'm just do. regulations will don't electric put I be the it others I but or I demands the are marketplace. Unfortunately, other of of -- a they around we're to ready there when because typically total some we're is maybe going of in what XX same grid we're we here will that just I Cummins, right those it, the -- or XX that, talk what attainment proper the tied look they certain it's But of feel I And real fact will. so all going the will stuff. behind don't about car. just it's up the the they states whether months, which -- talking don't come XX% be is five but all sure a right? continue So will

just Brownhouse I mean and hair they've think be having can you like been it's X%, X%, it in cars, a California cars. it's electric to like plug dryer. going in I X% already,

not we to say, going lot going there's to as to the there, to edge. And be It's I bleeding get to leading of are, work I So, be is always I but edge, on mean a do. like transition. this there the want

market our transition rest spaces -- will we be transform to a able to or It's that that It's -- dealerships wouldn't can but in whatever edge -- assured leading market diesel you hope and is our dealerships be transformation. on transform So, technologies dealerships was whatever we now, be not transition. informative. not out right our away I handle somewhat as adapt going went the segments. I say,

Joel Tiss

Yes.

You only bathtub. just in remind I'm the -- wonder hair in dryer me, a my last when I one. wife the quick plugs

industry. slower constraints? that You're Is your supply on positioning? color what's little that Is overall growing going into the bit then, I'm than Like And there? regional a any done.

Rusty Rush

than the go about at that, I Well, a up you're back, backlogs volumes. moment. ramped I that you, is guessing of large now would say when A up others. probably our you my really lot that It's talking as slower I'm tell you, bit little maybe I back rather think a backlog But quarters. told few

deals maybe of transitioned a little transition. on that So some our customers We we book. the later did

So -- and now we're dealing calling the supply with. we're that constraint issue

okay. they're the going. I customers, going blowing So I'm to not demand. It's feel good talking and -- about away, still but

on the starting the So, of about that OEM I mentioned, And we marketplace. that's we for units the been And has into X,XXX quite now. I of marketplace as so in one out typically about then few of a X been sold also, sale, get units. Class kind that months nine we've and out -- they've of October, sort it had back

back than that. and be ever. in they'll So, doing stronger I'm confident

but them you that's mean, So of X of to else, Class to you them all. my X. I sell kind of might X some hampered flip -- flip some something -- don't

what I have that's So to say. would

you'll think really will it retail the low deliveries their lag support right? expect think lot production don't. deliveries flat retail going because should, but because always if production. be Because in QX the market I doesn't able there's to deliveries friend. follow what And now. through don't the inventory, extremely We are We board, no retail inventories hopefully, -- were across Everybody see I things stay meet my a of sold are inventory, then inventories. up right share to I

We I've backlog here. some it. plan lost So you. of a it the share. I timing of go It's But I on We do getting it's to just hear matter again, little back. headwinds. -- a back just got the

Joel Tiss

very All you Thank right. much.

Rusty Rush

welcome, sir. You're

Operator

in queue. to over the Thank to further you. showing like closing back call questions for now would turn Rusty the remarks. I'm no I

Rusty Rush

to realize first comment. Rush our across quarter, went car Most last people and that June this, done Enterprises It's public. but an personnel public to this of contributed have all and support like just XX one years, when and company amazing we have quick to XX the ever the without father I'd been people make couldn't country. my go on people it been the was the I team and don't since were to years of X

from I out voice had but -- public efforts, -- we're know was for as started on all and industry, it ride, still enjoyed I've move of little X that, bottom about more now, and the But I heart up could talking still good the some one to a I'm I efforts riding to them of it but their we I my future want it truck getting their been only in in forward. So tuned thinking with the and Steve's can while it dealer. I'm thank to too, longer. it's guys the was for bit and hear. But you sentimental the a on all get quite -- car it. fall, time planning coming June a as And the I reflect continue people

don't QX. results. know thank I even [indiscernible] mine QX I'm I more sure anyway, to Steve appreciate will your So report you, very by time. But be it everybody, much. we closer

Operator

conference concludes your you this Thank today's gentlemen, and for call. participation. Ladies

You may now disconnect.

Rush Enterprises (RUSHA) 21 Jul 212021 Q2 Earnings call transcript