Rush Enterprises Inc (NASDAQ:RUSHB) Q2 2019 Earnings Conference Call - Final Transcript
Jul 25, 2019 • 10:00 am ET
Good day, ladies and gentlemen, thank you for standing by, and welcome to the Rush Enterprises Inc., Second Quarter 2019 Earnings Results Conference Call. [Operator Instructions] As a reminder, this conference may be recorded.
At this time, I would like to turn the conference call over to Mr. Rusty Rush, Chairman, CEO and President. You may begin.
W.M. Rusty Rush
Good morning, everyone, and welcome to our second quarter 2019 earnings release conference call. On the call today are Steve Keller, Chief Financial Officer; Derrek Weaver, Executive Vice President; Jay Hazelwood, Vice President and Controller; and Michael Goldstone, Vice President, General Counsel and Corporate Secretary.
Now, Steve will say a few words regarding forward-looking statements.
Certain statements we will make today are considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Because these statements include risks and uncertainties. Our actual results may differ materially from those expressed or implied by such forward-looking statements. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, those discussed in our annual report on Form 10-K for the year ended December 31, 2018 and in our other filings with the Securities and Exchange Commission.
W.M. Rusty Rush
As stated in our news release, we achieved quarterly revenues of $1.5 billion and net income of $41.6 million or $1.10 per diluted share. We're very proud of our financial performance this quarter, which was positively impacted by results from our aftermarket initiatives, outpacing the U.S. market for both Class 8 and Class 4-7 new truck sales and an overall healthy economy. We're again pleased to declare another quarterly cash dividend this time $0.13 per common share or an 8% increase over the last four quarters.
In the aftermarket, while industry demand increased marginally, our parts, service and body shop revenues were up $448 million, up 6% over the second quarter of 2018. Our aftermarket gross profit remains strong, up 9% year-over-year, and our absorption ratio was 122.4%. Our aftermarket growth this quarter was directly driven by our strategic initiatives, especially expand the parts availability, data analytics, which help us take advantage of every part sales opportunity and traction in our e-commerce parts platform.
We also enhanced our service offerings and continued efforts to add service technicians to our network. We believe our second half quarter aftermarket performance was especially strong, given the slower rate of growth and aftermarket industry demand and continued softness in the energy sector -- in energy sector activity. We will continue to monitor aftermarket industry demand, but with successful execution of our strategic initiatives, we believe our aftermarket results for the rest of the year will remain consistent with our second quarter performance.
Turning now to truck sales. We sold 4,119 new Class 8 trucks, up 28% year-over-year and accounting for 5.7% of the total U.S. Class 8 market. Our strong growth sales were almost was driven by widespread activity across the country, particularly vocational and large fleet deliveries,