RUSHA - Earnings call transcript Q3 2024

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to Rush Enterprises, Inc. Reports Third Quarter 2024 Earnings Results. [Operator Instructions] Please be advised that today's conference is being recorded. I would like now to turn the conference over to your speaker today, Rusty Rush, Chairman of the Board, Chief Executive Officer and President. Sir, please go ahead.

W. Rush

welcome third and release XXXX morning, call. good to quarter our earnings Well, the Wilder, Vice are Officer; me Secretary. Vice call With on and Counsel Jason and Goldstone, Chief Corporate Officer; President, General Controller; Steve Financial incoming Jay and Haselwood, President Michael Senior Keller, Operating Chief

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

Steven Keller

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

W. Rush

for revenues third per we pleased charge a out We a million, $X.XX us comes damage. quarter. report In and share. $X.X third of solid that XXXX, due we announced had which Thanks morning. $X.X Helene-related income million to of property this to net quarter $XX.X pretax billion of Hurricane diluted the of I'm incurred joining onetime to

have share declare B EPS $X share. again, for per would Class A charge, been -- of Class and dividend common a to Excluding cash $X.XX are both this happy And once stock. dividend we per

these side. trucks and for dealing quarters, high is on are keeping X rates demand with freight experienced the difficult have As conditions over still recent industry low operating we interest rates, and Class low the

of our Given these this performance we are quarter. headwinds, proud

slight good Class sales, used early from a X Class public the previous held our demand Despite we activity truck the us X.X% the strategy customers, carrier vocational but is into growth saw are off sectors over from expect were be which Class our And well, freight public X our the and seasonality second sector challenges, aftermarket seeing million, positively to over-the-road deeper since revenues particularly normal strong first through we shop despite $XXX of ongoing Medium-duty earnings. In quarter, a aftermarket paying to in board. anticipate tough recession, improvement quarter refuse for X up revenue body through X sales. in some to and Though early conditions saw sales, we the slightly in third X the segment market across and faced the and continue gradual XXXX. X affect sequential slight the we the fourth up sales more XXXX. The quarter, through contributing adversely also XXXX, finally service market. reached customers. growth we and our beginning from our aftermarket results, down sales seen outpaced over-the-road have the quarter. helping a service to Class return healthy we While parts, aftermarket some outperform Diving aftermarket space, market, in

last ACT in sales, truck in and Looking sales from the third XXXX, Class X of new U.S. Class down total X.X% Class X we and at sold XX.X% in year. accounting X quarter, in trucks for new X.X% the the Canada. U.S. XXX,XXX forecast Canada X,XXX market for Research

pleased economic ] in weigh these rates end slight retail high freight uptick interest bright of Continued third vocational on challenges, fourth [ into rates Class uncertainty from the carriers. results. decline quarter trend saw we and a contributed spots quarter. at and quarter. We to and sales sector public low last the X quarter to like continues us, X year's third continue the Despite our this X.X% for with and third to a we remain Class Specialty markets in expect orders are

quarter Class our sales results. that will increase third expect we X So slightly truck fourth our compared to quarter

anticipate industry, of inventory XXXX. that will pricing the high across through first we half sales remain with challenging However, making competitive, levels the

truck XXX,XXX all year. Our Class in truck from X% in third sales Demand X.X% reached off. sales units slightly, up through Class the ACT X for to market X,XXX through X.X% the paying units across of U.S. our last accounting this and in to Canadian Canada. X X quarter, base new in medium-duty is U.S. diversify efforts projects remains our and segments, X roughly about strong be and XXXX, customer Research space

quarter, used units sold the year-over-year. we truck up X,XXX On third side, in X.X% the

year-over-year, used is led we successfully to down to demand third positive trucks Depreciation strategy, execute continue weak, manage have truck and which continue meet rates market the in to for our X.X%. almost still our stabilized, was results flat used Although inventory rental Lease just quarter. effectively revenue we and levels to demand.

will we into rental we moderate rates quarter, in optimistic increase rental are move see our as we utilization and revenues in fourth to and However, that leasing XXXX. expect growth the

financial that my their They for we quarter. a in continuing service on I work hard with been confident us keep year delivering I to sales to despite goals shareholders value while provide our team's position. of our and initiatives, proud our us commercial will work. to So gratitude helped our to our finish to challenging the our sincere incredibly a times. hard solid employees expenses focused stayed the challenging customers. this for far, dedication manage Their like our year top-notch am would all it's but allowing stay on these vehicle long-term has I'm extend to And industry, track

McRoberts, transition. With And wrap glad we also as as to he happy personally thank step staying been up, confidence questions. special step will take I we and down X. and COO smooth who, we and to new adviser want announced, Board Jason on December in I has as that, would a are Before Mike October our full will I'm Mike on to is have XX. us, on your like member. I Jason as to who congratulate Wilder, a expect in COO invaluable

Operator

Andrew the question Obin first from America. of comes And Bank Instructions] [Operator with

Andrew Obin

question. Just a

you've You order the I same 'XX. until first constructive you commentary, the press ACT no do of say, references bottom in balance think we're multiple to commentary sort -- with bottoming that end. out the uncertainty of the had of second into release? forecasts half you made quarter time, that seems facing 'XX. do recover in How are the At would I half still there retail to the It things how particularly

W. Rush

our right? As I carriers, the talking business, of haul far and was -- been believe say I far it's the for them, the truckload bottoming over From -- has as I I rates, when on Well, think bottom as about with. right? carriers, the for bobbling contraction think I out hire as customers' freight

of most in If you last see I've they've they're at. that couple do the weeks, read where you'll the that read the been that's some believe bobbling on carriers of reports bottom. And

in we've up not, still some So know business, -- year were uptick this intake. had but go X And say, that's I XXXX let's in getting solid is for that order prior couldn't back And allocation. Well, not, little and back gotten did are I I X way to is uptick and sometimes bit our years maybe say, back It's in let's we people told some of talked always but last thinking weeks, what intake, we this was, base when of I have have we we've the customer weeks, shortened said X talk of build. they're I mixed it had about order okay? just had order you I QX, we're the QX X all a that understand right? or windows, the QX. build, about But lot here think weeks, I going great that -- right? that and have business. when Not pretty we said a the see I our of

In the fourth be to it going of quarter. fact, majority in built was the

we're lived we're you're living what XX-day in fact I'm as lead times. was right? obviously, times, reflecting. I times. in a where what lead with in sales We're X-month living very But That's in the pleased to really shorter historically we've Okay? So organization that lead adapting not

we're But was as stuff I've up, and XXXX, build I to intake we're delivered be but getting nice just we'll a that QX. have pick right game the last confident, roll sold even game. honest sit have of not we see shown got on people we're be it and of still -- have sort out top in to out, if that out on little some were don't order couldn't top it I'll of but the tell I coming So for am ability happen trying it that -- with you, lot here like the were quarters but right? over our better. X and making of in allocation, laxed we have of you, to all a We we we QX our back in will now QX, decades,

you bobbling is X-month that's short to -- for times. years times. we're, on taking But couple lead conditioned bottom. It's can the because a base lead more customer think, but our little got be allocation nerve-racking, of it with So I just advantage a of

along righted, being that along to going I think back. but -- not lines we continue all new of carriers people [ shape. start quite business regulations. is and us half doing that's as real normalized Now be thinking XX-day of biggest when less what still side small I big I there. in The their side, feel meet technology, a as performance you're do. costs outlook year until And are maintain businesses see and go a come that? large ] to back. over-the-road we're times, don't the beyond back it, uptake XX-day of not still half their will that big where customers piece our the for 'XX going more are their lead perspective, to times. But piece to plus carriers start may huge, uptick what vocational, we I they -- sometimes to coming there in not the of the believe How expect the back a out from but in ORs volume not can we back XX- well on conservative say This that large is about the new It of the truckload year I we're lead expect do still some as sure are would orders been to be we're the for have in next But we XXXX, into when -- do even back next the good doing. I that with EPA any performing the in get we as going us but

answer, you So rambling anyway, know answer I that. that's a it, long and that's but how

what for half we into the we're year the So move bobbing over-the-road -- -- about drive into of great, here as we've bottom, given. will sales But solid back further and customers that's some can year, continue uptick Customers we -- looking we which next we on feel the not hope next 'XX. I but in doing see. performance

Andrew Obin

commentary just you. for And a

look, think let's economy touch a Are said, seeing but just negative, the truckload of a you somebody I what 'XX? question your Caterpillar you numbers. you press touch getting You are at but seeing I of lot But when on As and more like starts right? you positive, what there, you gas keep because because you are maybe -- do negative outside What today, are more got economy what seeing always most look seeing less construction? What oil of industry? a in marginally you release exciting I lot are positive. the verticals, more the about like? are not But more ask feeling does positive, off-road, think it least I you getting into

W. Rush

Sure.

I think to down. comes when you businesses we breaking vocational, start see it vocational and

it or all everything think but hydro, BEV terminal it, equipment right, look, gas it. Everybody one's has downside refurbing and however Now, all it and value, it long has going for obviously, just oil the -- okay? electric soft. gas. bought gas, really to call some see, let's because -- much people I term, and term oil no with view out, been and to long is oil gas and don't fixing and Our people oil works want

but So that of lot CapEx of look even a -- about being spent, a XX%. numbers maintenance service There's spent. everyone When at -- there's was a you our been off parts being not lot and maintenance from perspective. we've

that, perspective, what was as business you of were a diversified I Private the geography, all if is purchases is of going pretty later really is know, the was, X% into That a That's varied, Refuse to but issue to piece happening right? get And but part. me, up limited really I the depending itself our can that's right? it. see given X%, out carrier in a back as into back shortages our is with me, I is out it guys on what It's because say, there. car CapEx laws, money We're it is good products -- still on. do, to Andrew, year. can that performing what's know love extremely decade year. seeing bit with. I can a try the thing X,XXX much waiting -- state have order California back it's supply with to through to orders. that tied for you're lot my -- a from flow as we and that though, coming we've mean, diversified one which out truck part model mean I sometimes new the it. all base tough. we it will But was geography comes but more year some big the smooth that percentage solid. I just around smooth not bill. business customer intake have on even at we've remember, it of for go Now good It's Municipal the the stretch. of look this those in But XX%. Construction, half out. I We're been by this piece little some You're just folks stuff on infrastructure sector. pretty -- I and of transmission on demand But vocational the side. not ago but our from next any we same on I an it's, about is we of one got don't XX% And the by half of year. talk always to there demand But truckload business the strong. to big base what And think, going remains do strong dealt our next when very is when strong. That's really model, is you drive know, it I our and day business and deal don't customer earlier a

more Ours is base. a customer much diverse

So it us we do. perform these way navigate allows to and the waters

listen, we've or There's prebuy where laughing So been to going to into but from a year. XX% -- XX% phrased was that, down next this has they've -- year able Andrew. at they I But you sometime how be I said ACT so, mean up came going right? come drive orders. you

like the for XXX,XXX, U.S. to -- year -- like out, downside like sure I this, XXX,XXX, next I I XXX,XXX and say -- So don't they don't will something XXX,XXX the so this see got that. they've that I no remember, have I'm not year. numbers from

Now but I see downside in see half, back do to I more the it it. no

we to So slugging good it spot year, about but the the were company. I of just see out all I right can out tough next you think you. of of it feel tell a We're half to first And the the That's we're now. -- I the years. performance couple slugging

Operator

And comes Daniel Stephens. question our with from next Imbro

Daniel Imbro

new to want maybe side. unit start the Rusty, I on

for about inventory unit, impact uptick the challenge You should going little up of on pricing profit guess want X still about duty. guess, then picking both, term. think margin is how Class gross or any however the intermediate and order it kind gross used to we that or I of a you across but mentioned, think obviously, to per bit, and I new medium between difference

given backdrop. the over demand trend coming going the versus Just that's curious to quarters how inventory

W. Rush

okay, a say shape used X late inside was months say, on with We would been feel allocation, what to had But -- into or And and it months we year, No, year everybody of downturn mark-to-market -- it to well. with it's we've turned disperse us working stock making the fallout, numbers last now better inventory, I had Right. it the been big some of okay? been that We've all I -- will start than which X helped all we ago, ago. I our we in this, order has And extremely, inventory. last every small bunch managing inventory. consider quarter. have it's the you, tell would sure

And right manage manage lot feel you I it getting or feel I I better feel now too April, the in about better without I how a about promise can into did I in how so than deep that. I we're we it. it heading -- than deep, it did I

it, our we've drive So and down. it to we got been arms able around

of ever Over corner I days, in taking inventory U.S., So we and inventory the better ours for been but across largest a -- so, country about ours. down. right? than numbers got lot the you I what the or Regardless the overall better we've that, -- feel else. units turned feel everyone X the Class overall, posted about the XX,XXX the last XX

heading better we're by off day shape. it, inventories in spigot not perfect feel about in I and know the I I'm decent shut Now yet, And right to as continuing our saying. we're I having but day know we the direction. get

want So about is it? it used. No. Talking perfect I where

more do. in used something don't Look, an We inventory our oh, carry to Why? than job. folks XX% said used have used. currently done we outstanding about know, You I --

down. we would X,XXX you got we're that's we And up. were, X,XXX, in under the the want I and of So where where our carry to we got inventory units, piece and used. inventories tell saw our key inventories volumes turning we

You got turn used to trucks.

in you're lose every to If you're used not unlike money. XX trucks day. trucks, used new It's going that. turning Because just depreciate your trucks days, under simple as as

not fine are titled MSOs used wine. better trucks vehicles, they're drivers like where don't on and age. are New used They get with

with keep performed Where size and sometimes a now, really used to very departments the combat positive, business for I been hand-to-hand least very the turns a over got our plus tell make last feel anything sure you've our I'm to pleased our truck it's managed people, have this right. And at So -- you your we're That's year. right plus. get nice new, to year -- in right, not for nice year, I mouth. it's hand of how

So you just slugging keep it out.

-- get on So you get used you some the our having from didn't you up of last that the going that I softness And makes some in mean, overall business year, we're into it new side. for get when truck department to over-the-road the business, one when there's I'm has quiet haven't the you expense talk to you we asked talk about be ask me. and about management yet, to thing let but be get when I'd organization, the that asked about, the chance if a anybody love of I'll will and me or yet that

Daniel Imbro

looking side. going on like next to the at I cost That's Rusty. you're was here, list question my ask

W. Rush

for Go it.

ahead. -- Daniel. got got You've all all I've got Go I've day. day,

Daniel Imbro

And cyclical we're do out do I I cost out pulling see the up? How it? you business Obviously, as of to OpEx of and at took quarter. the lot that Where sustainability think further shaping guess, is you maybe guess, just You can of keep reduce we takeouts? management trough how opportunities talk first, next costs much guys secondly, the you the year? about a how cost these business? can improves are you business where a about the in of out

W. Rush

let's of saw That's S out the -- truck is is out, in business, your service, run sales. everybody Sure. said, That's truck sales other we in and We business of parts and run without it. side, I is parts where on variable back to piece. back okay? piece business, the what this went you S went Truck right? we strip And we right? about your where remember, the really sales -- sales G&A just because side, the -- the G&A commission that's April typically, service Truck is truck S. dealership take folks, on side. and is. sales reflective your sales the truck in that and Well, typically, one flattening drives and this talk business, S

get we looked So what, the And uptick piece, I said, have in the typically see don't it it. we at summer. G&A and We seasonal look, it. that get didn't didn't the we guess

to absorption. fairly of at it. what be time, than the numerator people, denominator. And and better have we expense. And being We the to we're got and business years, way that's tried flexibility I've telling tell used the what flatlined. same been model I'm as that's we Yet that's for Denominator a call at

service got from profit You gross and above it. parts

you parts If it you if profit see the you side. flattening, then you've don't what see expense adjustments see that on growing, some make by and driven service got to gross

up when with Now we same slight look QX, we're were we down can't We're bit am with at less. little I last saw, for we a we bit of you so time, you about we're revenue talked little mean, up up being and to tell piece, adjustments, margin, down down. margin had in doing QX. -- I year's mean I go am April, more But a I X.X% hit. organization. took we of make the proud decided a to our I the G&A back as -- actually at sequentially did. I proud to from some X.X% how you

working payrolls, points still summer up still by next We're dealing up We're -- to and have to year. money. I'm to you our year. anything some now, like the it helping on waiting would still time, not if to I'm and right working that. in flat -- you have okay? equipment. But that run drive look, sustainability. gross in Yet to takes next got inflation, the a and XX you're same parts up I going get the it you you. -- absorption is got run we remember, goal It it when keep selling going start you're months, So me expense will and in, forward, back doing everything try -- come to expect on does still I starts we add it what's start we you working to picked there. when for doing service ramping does if at back got not we're if That's number because you're mean, them -- -- still we're historically our basically to you right, XX way and pretty least rate the I'm in back, our maintain back yes, that we field. for budgets getting it profit, a number. of remember loaning have I'm would but absorption hope ramp growth hoping up, driven on never service try we people. we people right up So out told years, now. budgets going you at all percentage mid-level mid-level, done it gross certain profit parts,

it, -- keep try if gross drive we like say, if that to pick more which bottom so profit, of half we the to or So up, will we money X something go do points right, line. in

we're at. it if to be we're because it that we'll sustainability able So -- in where my sustain not There's there. is doing question mind it's no

goal, more to start little things. a go will takes on it up if profits people take trucks parts part to to Now of your to and revenues expense, bit do and but parts is it, work that's to in gross sell but service, it sales keep

goes by we're We Because going whatever right? trying remember, we're markets So the or take the to the to us share. flexibility have take on, market. driven our adapt to model is able to to from keep what at throw whatever

good to of going to service to try No to and Our give we continue techs. what do goal share. We're solid them business side, as can outside to continue year service we the share. going a But continue that this the we're just XXX folks at with to get we back. do last of in big weekend and going on -- some have expect to go finished messages next town. a we time, going add That market growth back of our same piece salespeople to that call was because We're here is up take book parts to to it. leadership everybody. get matter the we're and where year. add didn't is, to the to business job this better -- take one to senior conference try be We on about little a on And

Daniel Imbro

tech hire makes across one to that. I just Maybe is follow-up difficult out of That sense. I them. like there? on last a end to guess difficult lot feel how availability markets, it's technicians, to find

you'd on done like the hiring. haven't guys you well as as technician year to this mentioned You

curious, has you better backlog has gotten labor guys? Just just any pool all? that better at Or available for at that thoughts So gotten there? all

W. Rush

right? something anything. through right? old if this deep the Level struggle in turnover -- else, get -- it's are It's going retention things. it. it's efforts a of We think the on XX% it's of being weeds X do are that No, saw here a I they're X Not And can sauce there your but them technicians, lot recently, I'd X in be a the of of technicians, question. for Xs out want to they I think want experienced too to always business And and they here, you They X, X Xs on to of Level to -- right, sure in. Technicians, me, comes and they and was That's struggle, around industry. it's don't Xs. out a X of XX%? -- years. guy, at but we Good want where We help entry-level sort Level of Xs, -- to lot those your it a the XX% study got get secret don't do right? do have appreciate the was it some

that's a whole will But X jobs to have that X That in to year. hard and different years more to -- they it We're the XXX. can't think we talking we're see whole -- really It ago hard a things beneficial skill plugging It And level it's a -- wasn't right? attack, we'll And get recruiters. like work. keep We way. But work work a hasn't We to okay? bring high still takes about a technology multipronged can grow try We very was it's hoe, go X I worked though of going support Even what and for we set with is whole we and very go with work that's I it's difficult realized you grow but be technician, About ago, with the -- years nothing we all a still difficult. It's at XXX -- into is talking at tried changed. not techs tech confidence. XXX have row always schools. trucks, to away X to a So it's the schools. big it too it be to all many, jobs it. it so Level different set. a -- X a being sometimes battling. difficult. can. We with XX because We and It's X we've it. and was put that that -- Level to have something that's job couldn't we'll been a one or

the them got our the Level work. technicians. to sure make really ability to that you've for Level And our you're proper good X So technician. I feel feeding hopefully turnover about get that X, It's

-- I'm making to going that next much make progress year in we're think some area. this I

Operator

with And comes from our Ian Zaffino next Oppenheimer. question

Ian Zaffino

landscape of Just is the I here, the of at is kind on see kind the this I there? Where do -- environment, great you multiples? of in looking know environment And what's balance guess, sitting a And backdrop? you're sort guess, how out with I M&A sheet.

give could a And kind I So then any you color follow-up. have there? of yes,

W. Rush

a M&A I There's little little it. Well, always never about bit. out until obviously, talk I'm do I there. working a

But I in right new you a don't of M&A can added deal things. We small other did until couple -- little M&A Nebraska. up the quarter. we you. I in a a There We I on -- We small -- large working have a have And stuff, any had we're may I actually tell right? have anything big tell wouldn't it. announce -- I'm small I now. don't that anyway There's to had

now right don't out going EPA huge looking. constantly I wouldn't the that regulations this into out I for on some as that. it with me next people of coming rush now, the We're right though get of further surprise So not on of seeing looming I'm people see the moment, we trying to at that don't industry even X get 'XX not -- years to get have there's reasons. But lot around. not M&A that that big prior it try there's a going those we to

it. at be out anybody happy to if me wants I look deal I'm So a area bring in not, an to there that I'll need

I going So -- question, never until roundabout tell but I'm just comes it. M&A know a mean, but it I do anyway what doing it's you when I'm to to I

along not but the get moment. that -- But prior it's be at to there's surprised further not activity a that. -- January road we down M&A towards X 'XX lot So big picks of as activity EPA up I wouldn't the

Ian Zaffino

did well. quite went guess know that you that Okay. deal I Navistar and And I

of see... So I to kind want

W. Rush

we'll did. deal. No, did or Yes. That we almost of time, right, lot have X, we'll Navistar look around it guess deal. almost big makes And that that where December continue ago, at did for We It shows ago, to X.X M&A continue the 'XX. we international X, of it we We a side house, one X largest up, and -- it's second a the bought of on I was years sense, so. years if look if was was more to -- availability dealer. one some

Okay?

Ian Zaffino

side? you maybe And I maybe on yesterday quite vocational truck came Allison as seeing on then Okay. the now outlook out just follow-up, side. you're numbers with a mean, can just good the vocational the talk about

you're what forward? So there kind of seeing looking wonder

W. Rush

sold I transmissions May the I have little for X,XXX had They or ago. a were series numbers. whole bet [ back it touched year. on may in good ] X,XXX out Yes. they of bit Yes,

anyway, So own their they they're but inventory. sales have their managing --

be to sales transmissions get continuing cost mentioned. is us because this as it couldn't 'XX. year vocational yes, enough we strong, And So some I actually in probably

So sales that's 'XX. into some probably pushed of those

good a that's So thing.

We expect that to continue.

earlier, and most strong refuse on it the 'XX a by all but just across those bills. sales I in us. for it's the on vocational, As And strong look my do We're spend expect it, -- vocation which what not on we piece regardless I vocational to infrastructure it, still out the in, of the be board government expect to bills that's mentioned also. we expect. We're solid strong seeing I continue that's business to expect through going into XXXX. I'm driven

So us strong, to also. that's And medium-duty our too. solid be vocational for continues

Operator

from Instructions] Jaroslawicz [Operator question Avi next And the UBS. comes with

Avinatan Jaroslawicz

sales you the So the hopeful in noted bottom are release that are yes, just -- aftermarket around now. press you

this confidence what in bottom? up curious seeing the just the more ramp to over-the-road the be market? normal, in you more given continues than that sales back you're for Just be how thinking to some are there calling muted also, challenged have aftermarket? about a And Should

W. Rush

there in -- little -- a see So we've more flat just made we'll expense, is we why Because is that than of in that of where right? mentioned, some softer nothing QX, a at. working QX, tell states, you that's given the little we're you've our release every geography given holidays. a aftermarket I And is summer Well, ramp are because sometimes what into pretty than flat. April. but it's we been in year, you I that's adjustments have seasonality sales though didn't thing cut usually But good mentioned, -- okay? know in going it's up more as when as we back because a days our our across seen, some That's press would -- did got I you fewer even not what, been it's there -- bad XX the we Okay. geography, the

it's bill for those year's, got Thanksgiving new bit you right? there you So like holidays, naturally be -- it's Christmas, turn there's to So in days. the just with hours, with slower up to right, and little you wrenches the shops, -- a to

pick You but lose bit, that's little bit your seasonally a then other but conditioning softer QX, down air up, nothing but goes in norm. little that a things out it's business, just there's of the

than would back seasonal more believe, think I May thing or through parts less and they I June, think a guys that year. over-the-road out our on ramp-up by service I'm of and summertime, from the year. summer, time believe that going parts when slowly year, typically a up next So in this line. more not see be in fall, in and next QX. That to as I to points is course, this, we couple business But we ramp of just in typically and expect points any typical I hope the market I of perfect say, early do time, service the parts spot that including, growth late see next get the by I summer the said, I the better. spring, and we so part, being don't some up we'll the but I big ramp get what service bottoms to around time just believe I couple in see growth X like get. the do

That's the when have diversified the over-the-road customer customer are XX% business. where a still what the piece off our call the he or we still was is even off small God, we that the than still our was last through managed year, really national, -- though our small, base X%, in the do of you we'll unassigned were of even don't remember, enough we we're but I year-over-year. less But growth accounts, person we out at X% off numbers was which we know, producing, so business. Remember, we was QX. what they people of okay, was -- thank capacity XX% because got big And think customer. small taken look in

combination going customer. that being is comparing XX% So the for back small off to dramatic quite of 'XX

get that of big the expect we're expect do with to we're comps starting I the So in better. -- come see the larger I customer base. downturn smaller have XX% producing customers. But our customers won't numbers those as spite are in that a on easier headwinds to of we

they're have X. trucks the going Sometimes or to to buy they're fix -- to trucks, going either of X

to my seasonality I that to no on for don't of into expenses continue next a parts X/X keep year, year said, us back being Hopefully, we'll that true. it normal to up, big the middle just pushed truck right out expect of So mainly outside next -- spite because the in to our downturn the But growth see as and I of sales, And outlook perspective, push and able over pick way expect I any the as couple quarters. quarters. diversification service times we I of of said, the to on of manage shorter with right? From lead us holds that's are next year. continue now I

can't folks in clarity have So what I like, I We while but got the years, you we us QX. their December, still is. to QX not a it's And okay? trucks ability in looks And I for couple expect matter expect I you this may than Class can the did like trucks environment few in QX build not a of no X because had more tell deliver to what organization we that in and the to I've the I machine. believe execute execute

Avinatan Jaroslawicz

the also thinking from that? you to X be late 'XX. a more also, regulations of guess That degree that the talking being prebuying of that And then rebound sense. Class like for would of you're what makes in say thinking the lot that about And improvement emissions in It over-the-road sounds market. a in ahead about I factor would you're yes, the

W. Rush

sure. this Like I Both here start for it question. of still going was didn't, year, go in no Everybody said, prebuy of you to okay? half I December. year. them thought back Well, There's truck can build your a back

So it the over-the-road Because happen, didn't Why? right? get guys crushed.

big a better, is I truckload was it, side of piece the read reports. hurt. all mean of which the LTL You it, getting can is just but earnings good,

is capacity And seeing relaxed -- ever I've that you market. done institutions bankruptcies any you're run. got I they're things coming were business out couldn't of to do come that. as believe the happened. and get to on, that still that's and I are the That's all being Financial with not out, think but taking dispose but hardest you healthier. has to my thing. take the more them time the out. seen than what going Capacity So pulling goes because finally and capacity that's of I that's chain seeing equipment, out

So they're getting healthier.

but regulations year right? So we So to going was start start really a it is the XXXX, in ago. coming -- on thought done it's all earlier people focusing will

it's Now not.

So got But that people I've it run my 'XX rule peak you're doing if you're you higher right I manage at on time and think about EPA to have less care I'll been the of it, going does having is have that to run to demand, businesses get demand to OR. take their make probably what and can. you're with when it business. because look, going deal said, compressing my to is now, when Look

ahead. gets got They're a everything, little the not try more compress hey, become some of of but will going to to on, focus I going this ahead 'XX. they're prebuy that better, to buy get to and As

$XX,XXX diesel So as don't going electric about. of in else deal to and and rules and BEV, $XX,XXX it's the new all come to and rolling cost technology whatever they then have to with everything on these regs

on, going to better middle as the And will till I year got do But gosh, timing get thinking. going okay? But in to prebuy stabilized business what's I I shape, be XX fact happen. move shape know by the summer, out. but we year. my I through oh to how that 'XX. and says I that's of be months bit, right? to driven they the work that next also Not been better to we So business going going continue to their believe be they're some this little January can getting their might that rate. focus try a believe it's the to don't is is logic it's by in need now exactly

going focus then the you out Right Then settles my ahead start not at I'm and of we the skis, As hill. got not right? hill. we looking can tips kind of it one us. better, once And down looking straight at can sideways. we've looking the thing out, gets of look our down -- can I'm on now, skis

makes of So that's sense, see if I how that any the combination X. the

Avinatan Jaroslawicz

are how is vocational Yes. volumes last left kind Where normal I trying the to just for that market? guess And does. much No, average? that of runway kind then to understand question. relative longer-term of Just

W. Rush

I think all of 'XX.

for feel not yet. on it to I to XXXX. this a try look to for be be, to I I out it what out feel little about say into our not now. normal demand better normal 'XX 'XX me out I to not in don't that's you 'XX the would XX% going normal because we but is -- think get right that to we're some you, vocational booking me. business. pretty not learn my I'll be continues to But as I thing I'm strong can normal? But tell business a It's look in -- what's look -- easiest 'XX, for Well, have far cyclicality. question. and going but to way and But further compared is. I'm to it into in It's vocational is, is truck we really know, really than Would the we're for to business? what one know. Where don't in good mean I strong business sales trying demand XXXX. I continue get truck is because know

road and I So obviously are that. over the booking it's Vocational, whether medium to But business. where 'XX going booked tell or it's have me you sides, we more the hard we road, see And vocational. both be. we than for about or can to is XXXX talking some over

to Hope 'XX, it strong expect remain be we to at hard look going to so. So me for 'XX is in right now.

Operator

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

W. Rush

everyone to you until to be like this morning. their talking I'd participation for February. won't Well, thank We

with So the fourth quarter release. --

all, and So very happy February. Thank yours, to you much. to in holidays you all again talk you we'll and to

Operator

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

disconnect. now may You

Rush Enterprises (RUSHA) 30 Oct 242024 Q3 Earnings call transcript