Rush Enterprises, Inc., through its subsidiaries (‘Rush Enterprises’), operates as a full-service, integrated retailer of commercial vehicles and related services.
The Truck Segment includes the operation of a network of commercial vehicle dealerships under the name ‘Rush Truck Centers.’ Rush Truck Centers primarily sell commercial vehicles manufactured by Peterbilt, International, Hino, Ford, Isuzu, IC Bus, Blue Bird, Dennis Eagle, Blue Arc, and Battle Motors. Through its strategically located...
Rush Enterprises, Inc., through its subsidiaries (‘Rush Enterprises’), operates as a full-service, integrated retailer of commercial vehicles and related services.
The Truck Segment includes the operation of a network of commercial vehicle dealerships under the name ‘Rush Truck Centers.’ Rush Truck Centers primarily sell commercial vehicles manufactured by Peterbilt, International, Hino, Ford, Isuzu, IC Bus, Blue Bird, Dennis Eagle, Blue Arc, and Battle Motors. Through its strategically located network of Rush Truck Centers, the company provides a one-stop service for the needs of its commercial vehicle customers, including retail sales of new and used commercial vehicles, aftermarket parts sales, service and repair facilities, financing, leasing and rental, and insurance products.
The company’s Rush Truck Centers are principally located in traffic areas throughout the United States and Ontario, Canada. Since commencing operations as a Peterbilt heavy-duty truck dealer, the company has grown to operate over 143 franchised Rush Truck Centers locations in various states. It had purchased a 50% equity interest in an entity in Canada, Rush Truck Centres of Canada Limited (‘RTC Canada’), and later, it purchased an additional 30% equity interest in RTC Canada, which increased its equity interest to 80%. RTC Canada owns and operates various international dealership locations in Ontario.
The company’s business strategy consists of providing solutions to the commercial vehicle industry through its network of commercial vehicle dealerships. It offers an integrated approach to meeting customer needs by providing service, parts, and collision repairs, in addition to new and used commercial vehicle sales and leasing, plus financial services, vehicle upfitting, CNG fuel systems through its joint venture with Cummins, and vehicle telematics products. The company intends to continue to implement its business strategy, reinforce customer loyalty, and remain a market player by continuing to develop its Rush Truck Centers, as it expands its product offerings and extends its dealership network through strategic acquisitions of new locations and opening new dealerships in its existing areas of operation to enable it to better serve its customers.
Through certain of the company’s Rush Truck Centers and several stand-alone locations, the company operates several franchised Rush Truck Leasing locations in multiple states and a few locations in Ontario. It provides a broad line of product selections for lease or rent, including Class 4 through Class 8 commercial vehicles, heavy-duty cranes, and refuse vehicles. Its lease and rental fleets are offered to customers on a daily, monthly, or long-term basis. Substantially all of its long-term leases also contain a service provision, whereby the company agrees to service the vehicle through the life of the lease. In addition to the product selections for lease or rent, Rush Truck Leasing also provides full-service maintenance on customers’ vehicles at several of its customers’ facilities.
Financial and Insurance Products: At the company’s Rush Truck Centers, the company offers third-party financing to assist customers in purchasing new and used commercial vehicles. Additionally, it sells, as an agent through its insurance agency, a complete line of property and casualty insurance, including collision and liability insurance on commercial vehicles, cargo insurance, and credit life insurance.
Other Businesses: Perfection Equipment offers installation of equipment, equipment repair, parts installation, and paint and body repair at its location in Oklahoma City. Perfection Equipment specializes in up-fitting trucks used by oilfield service providers and other specialized service providers.
Custom Vehicle Solutions operates at the company’s location in Denton, Texas. Custom Vehicle Solutions provides new vehicle pre-delivery inspections, truck modifications, natural gas fuel system installations, body and chassis upfitting, and component installations.
The House of Trucks operates at locations in Dallas, Texas, and Chicago, Illinois. The House of Trucks sells used commercial vehicles, new and used trailers, and offers third-party financing and insurance products.
The company’s World Wide Tires store operates in Houston, Texas. World Wide Tires primarily sells tires for use on commercial vehicles.
Business Strategy
Through the company’s strategic expansion and acquisition initiatives, the company has grown to operate a large, multistate/international, full-service network of commercial vehicle dealerships. The company’s strategies are to expand its product and service offerings, expand into new geographic areas, and open new Rush Truck Centers in existing areas of operation.
Rush Truck Centers
The company’s Rush Truck Centers are responsible for sales of new and used commercial vehicles, as well as related Aftermarket Products and Services.
Aftermarket Products and Services: Rush Truck Centers carry a wide variety of commercial vehicle parts in inventory. Certain Rush Truck Centers also feature fully equipped service and collision center facilities, the combination and configuration of which varies by location, capable of handling a broad range of repairs on most commercial vehicles. Each Rush Truck Center with a service department is a warranty service center for the commercial vehicle manufacturers represented at that location, and most are also authorized service centers for other vehicle component manufacturers, including Cummins, Eaton, Caterpillar, and Allison. The company also has mobile service technicians and technicians who staff its customers’ facilities upon request.
The company’s service departments perform warranty and non-warranty repairs on commercial vehicles. The cost of warranty work is generally reimbursed by the applicable manufacturer at retail commercial rates. Additionally, it provides a wide array of services, including assembly services for specialized commercial vehicle bodies and commercial vehicle mounted equipment. The company’s goal is to provide its customers with any service that they need related to their commercial vehicles.
The company also enters into contracts to provide full-service maintenance on certain customers’ vehicles. It had 2,942 vehicles under contract maintenance as of December 31, 2024. The full-service maintenance revenues and retail service revenues are included as Aftermarket Products and Services revenues.
New Commercial Vehicle Sales: New commercial vehicle sales represent the largest portion of the company’s revenues, accounting for 58.3% of its total revenues in 2024. Of this total, new Class 8 heavy-duty truck sales accounted for 37.2% of its total revenues for 2024, and 63.8% of its new commercial vehicle revenues for 2024.
The company’s Rush Truck Centers that sell new and used Class 8 heavy-duty trucks manufactured by Peterbilt, International, Hino, Dennis Eagle, or Battle Motors may also sell medium-duty and light-duty commercial vehicles. Certain Rush Truck Centers sell medium-duty commercial vehicles manufactured by Peterbilt, Hino, Isuzu, Ford, International, Blue Arc, Dennis Eagle, or Battle Motors, buses manufactured by Blue Bird, IC Bus, or Micro Bird, and light-duty commercial vehicles manufactured by Ford. New medium-duty commercial vehicle sales, excluding new bus sales, accounted for 16.8% of the company’s total revenues for 2024, and 28.8% of its new commercial vehicle revenues for 2024. New bus sales accounted for 2.2% of the company’s total revenues for 2024, and 3.8% of its new commercial vehicle revenues for 2024. New light-duty commercial vehicle sales accounted for 1.6% of the company’s total revenues for 2024, and 2.8% of its new commercial vehicle revenues for 2024.
A significant portion of the company’s new commercial vehicle sales are to customers with fleets of commercial vehicles. Because of the size and geographic scope of the company’s Rush Truck Center network, its strong relationships with its fleet customers, and its ability to manage quantities of used commercial vehicle trade-ins, it is able to successfully market and sell to fleet customers nationwide.
Used Commercial Vehicle Sales: Used commercial vehicle sales accounted for 4.3% of the company’s total revenues for 2024. The company sells used commercial vehicles at most of its Rush Truck Centers and at its non-franchised used commercial vehicle facilities. Most of the company’s used commercial vehicle inventory consists of commercial vehicles taken as trade-ins from new commercial vehicle customers or retired from its lease and rental fleet, but it also supplements its used commercial vehicle inventory by purchasing used commercial vehicles from third parties for resale, as market conditions warrant.
Vehicle Leasing and Rental: Vehicle leasing and rental revenues accounted for 4.5% of the company’s total revenues for 2024. At its Rush Truck Leasing locations, the company engages in full-service commercial vehicle leasing and rental through its PacLease and Idealease franchises. As of December 31, 2024, the company had thousands of commercial vehicles in its lease and rental fleet. Generally, it sells commercial vehicles that have been retired from its lease and rental fleet through its used commercial vehicles sales operations. Historically, the company has realized gains on the sale of used lease and rental fleet inventory.
New and Used Commercial Vehicle Financing and Insurance: The sale of financial and insurance products accounted for 0.3% of the company’s total revenues for 2024. Finance and insurance revenues have minimal direct costs and therefore, contribute a disproportionate share to the company’s operating profits.
Many of the company’s Rush Truck Centers have personnel responsible for arranging third-party financing for its product offerings. Generally, commercial vehicle finance contracts involve an installment contract, which is secured by the commercial vehicle financed and requires a down payment, with the remaining balance generally financed over a two-year to seven-year period. Most of these finance contracts are sold to third parties without recourse to the company. It provides an allowance for repossession losses and early repayment penalties.
The company sells, as an agent, a complete line of property and casualty insurance to commercial vehicle owners. Its agency, which operates at locations around the United States outside of its Rush Truck Centers, is licensed to sell commercial vehicle liability, collision and comprehensive, workers’ compensation, cargo, and credit life insurance coverage offered by several insurance companies.
Sales and Marketing
The company’s established history of operations in the commercial vehicle business has resulted in a strong customer base that is diverse in terms of geography, industry, and scale of operations. Its customers include national and regional truck fleets, corporations, local and state governments, and owner-operators. The company generally promotes its products and related services through direct customer contact by its sales personnel and advertising.
Acquisitions
On July 15, 2024, the company acquired certain assets of Nebraska Peterbilt, which included real estate and a Peterbilt commercial vehicle franchise in Grand Island and North Platte, Nebraska, along with commercial vehicle and parts inventory.
Competition
The company’s dealerships compete with dealerships representing other manufacturers, including commercial vehicles manufactured by Mack, Freightliner, Kenworth, and Volvo.
Dealership Franchise Agreements
Peterbilt: The company has entered into nonexclusive dealership franchise agreements with Peterbilt that authorize it to act as a dealer of Peterbilt heavy- and medium-duty trucks. Its Peterbilt areas of responsibility currently encompass areas in the states of Alabama, Arizona, California, Colorado, Florida, Kentucky, Nebraska, Nevada, New Mexico, Oklahoma, Tennessee, and Texas. These agreements currently have terms expiring in July 2025.
International: The company has entered into nonexclusive dealership franchise agreements with International that authorize it to act as a dealer of International heavy- and medium-duty trucks and, in certain markets, IC buses. Its International areas of responsibility currently encompass areas in the states of Arkansas, Georgia, Idaho, Illinois, Indiana, Kansas, Missouri, North Carolina, Ohio, Tennessee, Utah, Virginia, and Ontario, Canada.
Other Commercial Vehicle Suppliers: In addition to the company’s dealership franchise agreements with Peterbilt and International, various Rush Truck Centers have entered into dealership franchise agreements with other commercial vehicle manufacturers, including Ford, Hino, Isuzu, and Battle Motors, that have perpetual terms, and Blue Bird, Micro Bird, Dennis Eagle, and Blue Arc, that have variable terms.
The company’s dealership franchise agreements impose certain operational obligations and financial requirements upon it and the relevant dealerships. In addition, each of the company’s dealership franchise agreements requires the consent of the relevant manufacturer for the sale or transfer of a franchise.
Any termination or nonrenewal of the company’s dealership agreements must follow certain guidelines established by both state and federal legislation designed to protect motor vehicle dealers from arbitrary termination or nonrenewal of franchise agreements. The federal Automobile Dealers Day in Court Act and certain other similar state laws generally provide that the termination or nonrenewal of a motor vehicle dealership agreement must be done in ‘good faith’ and upon a showing of ‘good cause’ by the manufacturer for such termination or nonrenewal, as such terms have been defined by statute and interpreted in case law.
Trademarks
The company holds registered trademarks from the U.S. Patent and Trademark Office for the following names used in this document: ‘Rush Enterprises’ and ‘Rush Truck Center.’
Seasonality
The company’s Truck Segment is moderately seasonal. Seasonal effects on new commercial vehicle sales related to the seasonal purchasing patterns of any single customer type are mitigated by the diverse geographic locations of its dealerships and its diverse customer base, including regional and national fleets, local and state governments, corporations, and owner-operators. However, Aftermarket Products and Services operations historically have experienced higher sales volumes in the second and third quarters (year ended December 31, 2024).
Environmental Standards and Other Governmental Regulations
The company’s operations involving the use, handling, storage, and disposal of hazardous and nonhazardous materials are subject to the requirements of the federal Resource Conservation and Recovery Act, or RCRA, and comparable state statutes.
History
Rush Enterprises, Inc. was incorporated in 1965 under the laws of the state of Texas.