RUSHA - Earnings call transcript Q2 2024

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to Rush Enterprises Report Second Quarter 2024 Earnings Results. [Operator Instructions]. I would like now to turn the conference over to Rusty Rush, Chairman of the Board, Chief Executive Officer and President. Please go ahead.

W. Rush

to quarter welcome call. earnings and morning, our XXXX second release Good President Michael me Mike Counsel Financial Keller, Vice are the and Officer; Controller; Chief Hazelwood, With call Steven Corporate McRoberts, Secretary. on President, Senior Goldstone, Vice Operating Officer; Jay and General and Chief

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

Steven Keller

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

W. Rush

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

and industry customer better we quarter, to strategic breadth product in and XXXX X.X% We our our are during of results am per few, common challenges and our XXXX. sales in cash in dividend of to XXXX. earnings pleased financial the of prior of dividend our Despite and significantly $X.XX our intent diversifying the expanding highlighted are achieved an produce release, base I industry since initiatives, offering, ongoing increase including facing the our quarterly our playing last declare proud than a share, announcing increase in cash quarterly technicians past a cash our that dividend our begin troughs eighth over with to name in helping are results investing July second force

strength the experienced X sales the in including segments, truck impact which carriers, public rates revenues other low vocational, share road sector Class negatively ongoing customer market freight continue our to and during we and over Although key impacted quarter. second positively

executed our did sales Our pricing to during and steady, Class on services, aftermarket respect and and our a truck products strategies. the inventory well decrease in With we X-X used quarter. experience second demand remain we

we of industry However, absorption we with kept industry million, service ratio to outperform from sales shop our sales. was were $XXX.X and believe compared In the body pace XXXX, to parts and our aftermarket, the respect down with the service X.X% second XXX%. quarter perspective and revenues the parts, a

the same are As energy in public demand sector, news economic vocational recession those customers year-over-year partially to and I over-the-road stated healthy in from high parts growth medium-duty in release, challenging carriers. impacting negatively and distributors These to led a rates also were decreases offset the segments independent conditions customers. by freight and decrease wholesale still interest our

significantly not we ahead, Looking market improve do or aftermarket the to in third demand conditions quarter. expect

execution put the foundational place of the confident years. our committed over few we outperform to lead and have the share However, service initiatives, we We better to will are to improve last us actions efficiency increased will this are continue that our Through believe tools processes we and strategic for these and leveraging our and customers. allow to industry. provide market in the

in same caused quarter, to X,XXX XX% the of Class sold by X.X% Turning rank new the second quarter total X retail led X.X% of quarter for trucks market market. Class X second to Weak in XXXX. Class accounting the the an demand X XX.X% now in the compared lingering Canadian of to truck decline sales. recession We U.S. U.S. in and sales

in decline to and large other XXX,XXX vocational retail retail to Research to increase of offset timing X sales U.S. customers customers XX.X% sales deliveries certain the the ACT Class to market to allowed X forecasts be our Class sales XXXX. in share. strong over-the-road units helped us and compared down However, to XXXX,

experienced order cause the new order intake, for quarter, cancellations Class second believe higher-than-normal be truck will weak the of we and the industry which X Class to sales remainder year. the During down A

pricing We also expect second more half the truck year. to competitive be the in of

we environment. However, well competitive we to to strong, in believe perform sales remain locational a pricing expect are prepared more and we

of and X-X vehicle production of Class units customers. from second X.X% activity Canadian in the have to sales Our improved, X.X% market the resulting continued increase the market. quarter reached healthy Commercial in delivery medium-duty times X,XXX or U.S. and

are commercial U.S. industry quarter. forecasts Class units broad-based X-X sales market X-X XXX,XXX the outpace Class be Our pleased across in were XXXX. to XXXX, sales ACT up retail from Research we vehicle to second segments, X.X% and in the

We will economic Class could in a decrease vehicle in X-X compact lead monitor to spending closely factors that customer and demand. commercial

sales vehicle available weak alternatives our at consistent quarter, word low freight sold used However, we higher with new in to our truck time, We quarter rates. more due results. quarter X.X% will Class interest trucks the and third second rates, this remained second demand down X-X X,XXX Used be truck commercial year-over-year. anticipate radio

However, the our manageable depreciation strategies. truck has rate to of levels, on we slowed used and executed drug used more well

positioned year. and the We are half are for the second low keeping inventories of well

with our our on par to results. second expect quarter third We be quarter performance

monitor industry freight will significant to Looking and recovery. we macroeconomic ahead, for conditions, looking of continue signs

cycle. we in share. soft market challenging will help instituted our manage combined X our is difficult of also from remainder market Despite actions, are and the believe during Class the trucks second we I continue to that second previously trucks. the expect we for expense These outperform to diversity levels quarter new conditions, the we to industry noting worth XX Class positioned retail It our market. retail throughout new and successfully with customer of well sales to solid X increase of remain market strategic quarter to the reductions the sales year. And the base us new this decrease of As anticipation stated, for focus

have employees to achieve particularly this throughout results. challenging Our these hard worked quarter positive

dedication thank our to want providing I your I'll execution their our that, service take customers successful questions. So efficiency to best-in-class their With on while acknowledge efforts to focused for initiatives. and of strategic staying them and

Operator

Thank you.

a As come our first to question And be with Instructions]. [Operator Daniel reminder will announced. Imbro from name Stephens.

Daniel Imbro

Thank good slowing tough. the I'll freight you, we're to backdrop fleets you. and Obviously, has from thought on are maybe the Russ, hear backdrop. remained demand spending

are Class back the some feel carriers, that that X the happening like positive we looks a more little how tone I head half? into changed normalization talk curious some market. Just we're last few maybe side how to on And pipeline the second the seeing as you half as in has sounding months, freight

back or So hearing half? if that curious that you're do would affect you the think how

W. Rush

here, shoots quarter From together, really news. fourth No. know like that can along. not I more told. where they still similar there's time here coming. but think sales, together, here, so, coming obviously, level doesn't I I basically we X you than mean quarter, they're things you in leveled booked think need line but QX, right? little do business Are got trend I think already, customers as see still given would all the we customer it, a a do. bobbling perspective say positive spot I quarter You for truck That skip much still stock about get still have now, you to how when say asked in coming a in be Do sales, sales of it's So from X a I'm better? truck you pretty is It they yes, to that's the and lines. you to need they're if talking because And I getting a lot the right? other most OEMs. I believe many take -- like perspective, of some sold times truck me, with quarter bet... off. Class you as we units what you the third lead at it. need consistent for little the From right, Yes, Are a the perspective, fourth it here, truck bit and I we've takes lead QX. similar is like there coming have the a Class to green But fourth reduction trucks still so a then you'll slight in quarter, No. little yes, all here trend and bouncing pretty look

not come lot between do there way. exactly to for -- situation like with. not for with I'm some to pegging the that foundation positive -- that believe still about hit exactly. Do be we little reduction our to where election out is believe half to this see the be But do out. pessimism of in to continuing probably able last -- to to a tonnage either, it think, okay? few the enter there's continue take light, guy they So can highly getting and as capacity not the this of year, years, real the a just There's on, the picture a -- the tough. demand, do I it's We're going that much act what there -- to and yet back base year will had year. in been be here be in that But and capacity. growing some environment rates of we it's and next a be get a should balancing But had over half stage, everything way the rebound for also sure set supply get we'll not I It's rates you marketplace. where You forward else to setting to freight too those going had will back But peg think it's such the -- to is full in to drop, I freight a freight will of a competitive continual our have when the I of do bet. believe be it going But bit advantage they've that difficult We've our right? be. right? finally I customer we're to to still get in there's try back

and about side the I'm start I I here LTL they've hire. flat. really be -- that see picking up what think see the the for sure, -- I singles I that's able that expect I should to anything if then get for on but when on And they most everybody, back truckload talking to to the here, But expect it's side, obviously. you maintain, that side and recently. low given hall for truckload

Daniel Imbro

on I service then color. if And and follow Really could helpful side. up the parts

sequential since changed like what revenue You macro parts first down but the maybe that guess, slowed do given can than stepped how you think about and I mentioned I shapes then or I up shapes demand tough, felt stable been we year-over-year into quarter? growth back And sequentially. the the up thought. for growth The talk has service half? more macro, guess, you

W. Rush

X a somewhere we're and we any you reverse XX% pickup business, hitting bit. don't base you accounts. big backwards asked the accounts. I Look, thing a important okay? what one taking and we the and we see the most service the doing our it I've I in see about declines business. our that XX% continually, in customer fought a of because it still read is small and the all that's base. Well, double-digit about where call Obviously, the been don't had in for there while. is a make double-digit how And way go would we were we we're of of to they've off. me take trucks, unassigned let flattening XX% for growth finally large Yes. We've we've the of had from Small public take to or talked it are it. What it customers customers that's in that. we you've fought our the years, back been went things tied brands coming inside had to still and out business, there back a little that And seen the we you every and the okay? is very market, you declines our of have. way parts diversity If to strictly But But customer market. understand -- strategic our we key go diversification That's we represent it over-the-road sure of way between most that because struggling.

-- April mentioned could understand still that And and thing when With we adjustments can a it that we But offset some of some so business where I to down the inside pretty good segment slightly allows is absorption see make that that base reduction along. down fact expense some the our we our rate Yes. that go made you compared And to adjustments. we kind run have few high you're used pretty we be you one adjustments. were look are to, in me help way ago, to run of we going to maintain that and to we coming, to we running function this things do. we complaining then to good told we're the now those rates That's make years the XXX% the and if a is about able crazy. and But we'd

where line maintain up. things but road -- come to don't public got we that any expense really of currently. a small lack I do over-the-road it growth even are large large few big offset as out business, the majority really have look that private we're or some though will And the to a help it we we is revenue we push is hopefully, carriers of push still carriers we are think to the things to on there. catalyst you base Now can that still with or very whether whether I going -- expense largest that -- business still the to do the forward, see in diversified, trucks I remember, be the It customer. be you know?

wholesale base the -- you we in of that our if compared that's at to a the largest. We the lot did have. results I maintain suffered, is biggest but to municipal this that customer we Just have we of not customers, mean diversity other our customers we're sector market other over these these at provide the our the and where do same the we and and have all things, at again, time, of But all all that and God quarter. that which some our road do results that of vocational segments. look still

it's than hit And more -- pull we different been different sales So to proud can I again, numbers areas, of you, has to truck It tell revenue streams, medium-duty -- right? Amit gets never trucks. through produce we when I've to the And with service gives heavy-duty, it it the gross -- these truck going able that of -- us I now. like profit have sales, and end be expect organization the have is different earnings balance whether what's parts of results. used streams providing the backwards.

As comments was I close. last is at about organization -- 'XX same the look it and 'XX. don't organization that minute said to This ago, back like in X in a the the and go even back even I in not look results trough that.

and best I'm confident front We're but well so of organization been what on I to mean, not to backwards years' doing. So let we've outstanding continue sales. base but just year. I'm be get expense work we're go few truck tracking as us, back to a revenue outstanding. results organization, third said, our unfold will we the along and And to in that's do it in last we or type tracking bubble and are we where back ever I in at the pretty have, it, expect year results, just And continue Like in we'll more trough we're in to let's well, QX line on levels. and the just that provide into I it's an had look very going whatever

Daniel Imbro

a quick follow-up. And I color. appreciate I'm all going to No, have that

that as think flow the guys been here you flow guy obviously, attractive generation has uses cycle cash, and a what uses through of we think of I mentioned guess been flow most the throughout are the has but cash as gets would source the trough, story. raised only recycle? the better. I positive cash as I of about turns, thinking cash even how a you seeing You you guess, capital at not are about

W. Rush

take shareholder last still So and our At could We combination, of repurchase. free a balanced years approach right? what as dividend same do of obviously, forward. M&A said of tried will share #X flow. to time, be the which growth, a go somewhere Sure. XX% give back a part thing return, too, is and that always Well, to with some influence that the cash we in be would we that, we'll we about few that

I we sit focused lot the would out Not So to when are. it's at a I some done. inside there time, not a here that the Are Of there's looking a and acquisition going we side, now? organization we're Do of one, by this we're in but right? looking same We wouldn't tell we just way, you things? is had and to you announce the would you I be necessarily. comes would little tell -- can't But I there. that have right do be that At I the something. we would thing piece, it big at, biggest Nebraska when on, growth M&A it singles, it others would man. course, quarter, to

M&A year understand I deal because big We're what not doing call always don't We're don't little a dealer. X say, a stores buying they're opening the I'm largest small. that doing M&A, X, Navistar December the second just I deals. little we're we X, was 'XX up when singles. folks last Sometimes like see And bump you of big bought

you footprint. people, it customer expand differentiation I organization, that's, first especially their so to network, customers, just point. That's have leveraging be, as always our going we selling that is best outside to and off is around biggest as XX% always there. new M&A to for -- But going footprint. our look right we will we about, It's And don't now. then and years. people we'll us talk to continue of even the footprint It's around customers, always always as to out -- is continue to our into but outstanding saw our footprint. for up. returning our consolidate. can used think foremost, We're sometimes #X customers I that most of But be. not the #X. do And the efficiencies, into we'll thing expand touch we to people, target fractional customers We're importantly our our continue average, that with we Remember, we've the averaged said, out last And at more go not out one drive you now, if our looking as and just there base got that. You've would our what. as is organization, thing can right? to me, And the and be to it going look be shareholders X can okay?

or years, that the -- commitment acquisitions build year, X we perspective will on And X% from if things that high. than just We've about footprint it was that's from you sometimes repurchase many then, continue that course, to happened when will is X XX%. them to we'll year shareholder return consistently raised our right, it be and those is will that and main of it number hit find X% our what not is It Some do year, dividend anyway out. okay? perspective. to do, one, can XX%, when was be you every last to shareholder our X. XX%, And a but -- continue depends return. be more XX, too we'll be it limited it But years, shareholders can But was XX. some It you're as to sometimes to

Operator

of next question The comes America. with Andrew from Bank Obin

Andrew Obin

Very good. I'm good.

mix mix talked us remind you Just the you and your just vocational it's you point? at have because versus industry. obviously, are outperformance Can where about maybe in we this higher

W. Rush

what I'm question that again, was Andrew? So sorry.

Andrew Obin

waste because it. you the versus your Your like the us is vocational, You industry, Could but you mix have mix, of right? the X remind less mix right, just more have these road, Class what days. more

W. Rush

one heavier stat up, going and location-somewhere that XX% it's going range. side the say -- that's you XX-plus say, the our and side business businesses, the I on side, bit give and really And locational color market brand, -- and it's a on to than Peterbilt frac say I keep each on XX%, and total Navistar of the don't somewhere I'm Depending of the diversification our those we're question, I'm color, little I that's construction, -- on but look into XX% but XX-XX the key When right? really a that is the little a Andrew, give ag of I maybe in But appreciate not the that always And side. diversification, around on the in I be pieces. the you let's we somewhere range. would refuse -- Again, to you the to segment. that's are usually all somewhere

Andrew Obin

Right. just are do in half. What sounding caution in your early folks seeing? are I what what think? outlook And you orders, experience? wondering orders August. you've What's clearly July, And the you second about of for of trending Where sort are the think terms been then

W. Rush

been -- Andrew, quarter, it the first compared all for all year. down really in from been order It's we an us pretty year to it's where were started perspective. intake

had we couple there's I a we along But a Now the -- a few it's perspective say that no question been will just quoting, deals few from down. -- way. of demand -- a

lot a inside the and they that starting to the about right? start about get business. -- their talking their out can you guys see emissions, with of folks. customers We're when that now to very right difficult talk it's Our talking But felt been pressures truckload you're for earnings

that but as these I because things to the taking I'm call, been think down a out busy last multiple folks you, be an know change still is change tell committed good anything not -- technology of come I pretty care. would be have not where say around I but something. guess, the I election demand, don't election all I while. to of don't still going they're year, tomorrow. are too they that, have -- a are is increases well, the make to come going own to but on a I to market businesses of really I So not to back more July. of going And said, capacity investors to And and in guess market come people -- I This -- but to they're going we I to from the need be this worked sure, dramatically. I too about more can millions, at. of running bunch -- this not been trying inside a perspective from they'll XX,XXX. we going I'm their believe when we're month, it's to and orders think, don't that, the happen. lot supply to going available their with XX of believe which case was month. in the going of because A emissions. change are would on care the would it's all from capacity about perspective, out for It's worry super worry still truckload still as come be where I billions and they're people cost OEMs to millions part still managing And buried, have folks of -- already to outstanding I have build emissions, the are still supply out, to that come still biggest more the business supply We need out XX the meeting there. view spent trucks

next do usually which up So October, into will December, November, I -- up start picking -- in but -- order year. up expect picking get business translates we that we maybe picking

on tell So then exactly I follow and you that. that But got I October, people expect happen. ATA can't through usually, to in you've you when

to, technology long in see as of getting they looking said and part. as their flattening concerned I'm on slight businesses slivers can the they Then like -- I've people bottom of start the people we into will and company we cost diesel People was and went in to me, and then after increases all one with that also or going So it but still went stayed we treatment I've there be. weathered excuse combine on to everything. -- that everybody the what like look XXXX for are business about out can what trucks the what treatment EGR, the and and really talked NCR were toughest at what remember green happened forward that when AFA I that

it the starting year sometime. going sometime I just you're really into see see don't the late probably You're to year, next translates this think some. next spread year, going your year, which to till deliveries on throughout big of orders about and tell next. talk big uptick in it. don't can months. to we are But any I starting now people in couple look I what uptick are you next But more the talking for that out

talk and -- the happen." they'll stage, to -- understand will going don't let's that. say very it's going there But I in they early but smart, early it's read I in of gear, their gradual be customers year. were you businesses, they a back to "Oh, some half thought happening, people until know to OEMs can kick said, look it's like will for Some are but and the time it when reach

Andrew Obin

XX,XXX of relatively or from think a the of you that the... months, that number. down Is flat estimate? these fair do next for couple But sorts

W. Rush

demand big want unless are some my I around to demand -- the From not perspective, big without big a question yes. big be that is not spread. -- your orders to That yes, the customers just customers answer just going overtalking like -- lot, place to X X or a do the is

Andrew Obin

big orders. uptick any expect in don't I

I decision Our say that work say shouldn't CEO for that I sorry, Oh, didn't -- so out that.

W. Rush

Let that say me I'd offline, too.

Andrew Obin

I don't for for think that while. allowed that a building in was

question good about have you of lots I uncertainty Just always systems, ask you the macro. because very on a economy.

optimistic would get indicates seeing take you love the out, month more are came industrial seeing? Are about it. activity. smart you the you sort take What the your coast-to-coast economy ago? a today versus to PMIs of because think to more are You presence. What a are about pessimistic tend economy? have just Or about to you step-down in or be very you I

W. Rush

do lot I Andrew... you think in stuff -- it board all One's sounds just I people about a to like areas. I me the I outside has economy, good that's this are everything know in answer. paralyzed honest with bit mean more I going just uncertainty, truly, little I that. But and election question. piloted on see the on some believe mind today, else got you. a uncertainty broad my be a and of see of no

As perspective good side look is has shape. little obviously, than LTL the as last from been good still and would in bit in this in a I energy side were shape. The not around, more anticipated. have truckload service a parts We off I quarter

little just think economy hot a I the earlier. looked

be you get expect -- my -- problem says, no it do it I -- glasses to But take macro-by-macro half. what I anybody do got up my I right? pick to after matter else think industry on. is it I to to expect at I my was to going I'll take think a it back tougher glasses, I expect, to I that -- do sometimes that. look want my

if to pretty we good from platform a little a a a about good my back industry. feel we always this November thing until I from what But of the can into to an have then taken a especially any for be set capacity -- out pretty And of don't right look marketplace, saying industry have make the best half perspective, had for stab good we at that's and And for for will up it. through and not for looking maybe just -- But that's to I'm -- going that. don't I And you're sort right at going at 'XX. out the because But recession, a I'm feel looking it bobbling I I'm top-year slow. just now along now. sometimes look get I'm I will for we be. not is

me, I'm past much I'm ask to economist, not out get to I'm -- but. and not an you going so not If going that

Andrew Obin

it Is is Is stable. fair that say locational that business fair your to fairly statement? Yes. a

W. Rush

Yes.

a say which is the for back half. solid a will continued has medium-duty been met. in or demand I indicator. that this is I vocational of fairly business Our lot stable, big pretty wouldn't look orders medium-duty growth

I little down troughing been, there. QX. sold we like has I'm it think not terribly QX from not But where that said, it's but in out will bit. slow our a

pretty sold couple it's years in been not a going -- look So where for be Look, mean it when out reality plus duty, that we're sold at be to does running I'm supposed out have year anymore. not ahead. year terrible. is What not medium a to I we out you're a

we're producing in Let's the numbers get to most back one to that's how And real situations, it of I types and world. proud manage we continue think inside that and show. the showing of I'm it's of will is these things

pretty back year probably I head, always by know, bit have my me a more all them on us. are that the And of where pretty prove you're every can year conservative all up It's work And tell of X,XXX out. play out to and extremely we day, a in because -- wish of you. the where they and I execute end it just well. as shape. if you middle years, this we run, I I -- numbers X-year they is to company. beside sometimes I think this bet trough proves the on prior for good I anyone diversification this good with me hope I these people few pretty everybody understood are And just going As of sometimes the that the probably us, I'm us in We're judging year in the we shape.

talked stuff. X.X% go about to outstanding. talking SG&A. and job G&A. expense sell we're I yes, what trucks, market So That less we earnings stream and G&A we're do going do good about okay? down to we're QX, managing is but down diversification how we're the QX to because and it, to in That's given we of going of Look, a truly our we're outstanding, through

execute to I've X for I back way. more believe very our that about -- I'm numbers will last in 'XX those proud which talking to of so when And we'll doing less, continue and get people with we real does get And the up, market pick fast, years we'll to X the 'XX. been or and

We will execute.

You've got me. for commitment that

Operator

question next Aerosoles A. The with Instructions]. [Operator UBS. comes from

A. Aerosoles

wanted more. to just dig I So bit a locational little into

of continued past healthier having duty? what just much the of pent-up after left-over with there to there to you kind saw that of marketing, fundamentally want has with maybe we demand strong more area medium how the to that supply overall of do market understand tighter do just years similar of think demand been Just a versus couple kind

W. Rush

Well, it it's few Class We from really think through not taking -- the don't were last X regardless care years. left over balancing I demand. of that demand

do will And of their back little bit age more that balanced the with some of necessarily where it over-the-road bit with has because think in a think the I -- I hits I X- talk not this more than X-year next we have have been some believe our locational continue do transmissions could and I'm But year what would to except -- have believe of about We this slow issues. business get more continue. to lack year. component there's had this We it but I to business got been behind had be and guys somewhat out the government fleets, good. in a coming up a didn't about of their So have. it. done the they COVID. money do -- of feel they take this going or throwing out across little down the did, was customers sold I catching vocational they're has business a issue at good to with got year. had the not well, business will the still and we year, behind runs. those right? board, the these we

believe that what's going over didn't but carried there. to XX and that, to got for demand booked because that business can't we've I what carry on. over XX% you, business it given will get will that still business quantify exactly into So is get

of No, not look for still that. will can next into So just be the are small out I take good is I to the think will I no, they looking backwards of give -- thinking and we're end depending with I going could as maybe back business the really of country. be do in this not to coming still feel watch. across -- how we're customer And bottom, you'll year. is into in over-the-road about to perspective up with roll when up going best the by going will pick age the from people ready a across position into good taken But for customers, XX%, all looking get XX. in to over-the-road on be could fleets our they I but And at you anything January it's up -- We're pick it about I business the continue for somewhere me, believe orders the from XX 'XX, of location 'XX, the excuse this show LTL the solid business. wrong, board year, then where could whole their an X start sometime I strong if how market, going The you. you being said, late going LTL be

be So my response. that would

A. Aerosoles

comments that I'm Okay. really your X, in -- and into in just like if it second a some Got like you in changes. over-the-road assuming just moving really And competitive OEM. the to half, curious think really just also extent more market talking things here way what week of about terms through second of more that Class then go you of truck price keeping just as year-over-year inventory stick Appreciate it. or kind dimensionalize can pricing it's over that. should share we're of by battle we the of any out and the the XXXX pricing kind about vary but terms in temporary does And that half?

W. Rush

the competitive. clear it's going say I now. competitive, QX a those, business -- be be We're What's okay? X-month we're is booking -- understand when really middle the like more business we're X already quarter more Well, booked, month right in quarter. it to will not

that's move -- do I that. can there's So to much not

mark-to-market. understand quarter look I years. for XX we at that -- do every come we about you you I'm when We have inventories. out and prudent talk -- about just making I when at comfortable where our not and pricing, that and done we inventories, think our us, and We're -- we inventories very our and you it that is have that talk don't what look about have truly market sure that's across new we're ores. very demand the when also the that's

see discipline our OEMs like when more When to moment to that are we're and So trying going this there way what the That I say to XX,XXX But market. I -- we're more be That about do was going what mean in was like competitively not time. when talk do we it's decent discipline truck to crazy the going not competitive competitive. decent Class I over think doesn't crazy be going they're a good is competitiveness, may with some to feel -- but I it's back that show inventories. should won't sense. up to I XXXX -- set show or because I that's saw going X really just it a -- be to competitive sometime say. People

these have the of -- because up inflation it that been to setting think yourself up the I cost increases all you're market picks So majority drove because all when was to required. understanding have up. -- when all now think is doing Remember you're like I

they right to whack. So rates because as down. now. don't back in still country inventory much okay? probably they need build, down out too OEMs had the across done you situations needed they'll of more I finally. and got the quarter deals Will they time, catch or whole certain be that in get they do manage guarantee want the competitive rates have to that same was up That fourth At got some situation again. certain that are of coming one We've way build build things and

It's on-time slowing are OEMs. slow And broadly build to They have down. by I any at know But know getting in bill get have to look going But rates. I'm go talking I'm can OEMs to almost to not specific out You an are it down it. way, of just come here. high. I the to. down. they'll rates

of year. half see the throughout You'll the that back

don't they'll too I remember bring to -- stay build at be them QX. so showed through rates take. too high inventory stats, they out. exact only got expect much the look think the XX% I continue long, how XX%, today. They've to can got I they've down many on decline to have you much market There's because When don't me I down.

when at. we're overall trucks of stop we view build So it they're you the that you where right, of overbuilding. pressure you'll that's where some take at to on when pricing, rate But and my feel relieve when comes out,

bit little a So think I here. got we overbuilt too

down. rates are I think build coming

to to to told rates No, going I've But going at not. people, it under competitive. we're think will what ramped -- pretty Is little I will is be and positioned be we're We're be consistent. build our up, stay to highs of highest to it's not be it No, going going XX, more be but a currently. be back but

a more on be knocking be You'll blended any will marked look blended prepared our to of orders from point will we're competitive, currently. fairly backwards can like we stuff the with do of where believe points market to from margins that our where come and margins, blended really to for rates we our look now. That's tell consistent, something for but our be don't which I that, should I are right I expect it at trucks. probably all see don't dramatically of out them it they're or I But not But you. couple margins. to and we we've competitive.

A. Aerosoles

right. That's helpful. Okay. All very

Operator

no call show back to now remarks. I the I turn to closing Rusty time. this over would further questions for at like

W. Rush

Yes.

expenses, times reduced I've them on right I those we thank I along call, employees I will more did. Their thing lines couple can of produce now. and enough. we right of we us mentioned but so of we're producing persistence the one kind the our know off, our some this of spite a mention in strategies their to that First and just results time. do and can't want them execution I continue

last I would I said, to to quarter. at I in during last like a But I continuing thank -- this during into for this any did parts like of back with going the during in to the execute, quarter, quarter, place fact looking more. rolled and a the a reduction so not company. it'll quarter. and we're the their we shareholders the So be back was efforts them still little was our these little right it to in just we're one that half service, to do because try just look where that for tough. that We're more took did we're stay flat But and hopefully this results, It to expenses to more and for the the in remember, outstanding forward pretty produce bit We and time little it on bit continue now, we're our dialed quarter. do

in talk October, again all So thank guess. you you much, we'll to very I and

Thank it. appreciate So you.

Operator

This concludes today's participating. conference for call. Thank you

now may disconnect. You

Rush Enterprises (RUSHB) 1 Aug 242024 Q2 Earnings call transcript