Business
Rush Enterprises, Inc. Reports Second Quarter 2020 Results, Announces $0.14 per Share Dividend
Revenues of $1.0 billion, net income of $16.8 millionEarnings per diluted share of $0.46Absorption ratio 110.2%Board declares cash dividend of $0.14 per share
About this update from Rush Enterprises, Inc.
[{"type":"text","content":"Revenues of $1.0 billion, net income of $16.8 millionEarnings per diluted share of $0.46Absorption ratio 110.2%Board declares cash dividend of $0.14 per share of Class A and Class B common stock, increasing dividend by 7.7% over prior quarterly dividendCompany to resume purchases under its stock repurchase planRevenues continue to be negatively impacted by the COVID-19 pandemic and industry downturnExpense reductions allowed Company to maintain profitability SAN ANTONIO, Texas, July 22, 2020 (GLOBE NEWSWIRE) -- Rush Enterprises, Inc. (NASDAQ: RUSHA & RUSHB), which operates the largest network of commercial vehicle dealerships in North America, today announced that for the quarter ended June 30, 2020, the Company achieved revenues of $1.003 billion and net income of $16.8 million, or $0.46 per diluted share, compared with revenues of $1.545 billion and net income of $41.6 million, or $1.10 per diluted share, in the quarter ended June 30, 2019. Additionally, the Company’s Board of Directors declared a cash dividend of $0.14 per share of Class A and Class B Common Stock, to be paid on September 10, 2020, to all shareholders of record as of August 7, 2020.\n “As expected, the COVID-19 pandemic and resulting shutdown orders that forced many businesses to close, combined with the previously expected industry downturn in new commercial vehicle sales, and the unexpected energy price war and precipitous drop in oil prices, had a significant negative impact on our financial results in the second quarter,” said W.M. “Rusty” Rush, Chairman, Chief Executive Officer and President of Rush Enterprises, Inc. “To address the challenging market conditions, we expeditiously implemented steps to appropriately reduce and manage expenses in order to maintain profitability,” he said. “Based on current market conditions, we believe the worst is behind us. We will continue to carefully monitor the pandemic and its impact on our customers and the general economy. We believe any recovery will be gradual and intermittent over the next few quarters,” Rush said. “Despite challenging market conditions and in recognition of management’s ability to effectively manage costs while also delivering superior customer service, our Board of Directors approved a $0.01 increase in our quarterly cash dividend, our second increase since we announced our intent to begin pay...