Rush Enterprises (RUSHA) 11 Feb 212020 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing-by and welcome to Rush Enterprises Incorporated Results Fourth Quarter’s Earnings Call. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your speaker today, the CEO of Rush Enterprises, Mr. Rusty Rush. Go ahead sir, have a wonderful conference.

you. Thank welcome conference quarter call. and XXXX year our release earnings to morning and fourth end Good

Weaver; Jay On Chief and Corporate Keller; Derrek Secretary. Operating call, Michael Officer, Vice the today, General Steve Chief are Goldstone; Vice Financial Counsel and Vice President Hazelwood; Mike President, McRoberts; Executive Controller, President, and Officer,

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

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

indicated income $X.XX and we of In revenues fourth and $X.X net $X.X billion diluted million $XX $XXX.X achieved income share $X.XX the release, in of our of net share. million quarter, annual per or As diluted or was news per billion. revenues

declared a per common over quarter. share of also cash We $X.XX XX% dividend last an increase the of

faced. of demand strong the have the as results. fully recovery gradual strategic and us COVID-XX their Rush though truck the to in work investments across our in the achieve hard they previous well and financial industry, downturn management, expense of challenges enable this to the the operational as of for throughout half second the proud year team approach pandemic. economic the country given are been centers disciplined the negatively Even the impacted expected pandemic, We tremendous effects was by year initiatives

disciplined trucks may chain will the our continue and impact our monitor supply the that in pandemic manage including investments we expenses strategy. to to will growth we issues continue parts take industry, continued affect carefully on approach a While long-term availability, to of and

we we significantly continue to As and aftermarket, and absorption financial throughout economy ahead, improve results believe support, the were the and demand in increase revenues XXX.X%. segments our our billion, expect market XXXX. we And annual $X.X service will we look body will parts improve annual and our rate was the shop to and

related XXXX. primarily annual Our from to the This decreased and weak including chain interruption. supply issues, driven pandemic shutdowns by X.X% aftermarket revenues was energy demand by compared production COVID-XX and decline sector

in throughout us technologies previous year. Connect and Our serve strategic investments Parts including the customers to continue safely enable RushCare, Service to Connect

Looking nationwide a economic ahead, for we variety the segments. activity will customer drive of wide recovery believe healthy

and parts throughout XXXX approach year expect revenues levels. gradually grow the and to We service our

XXXX, sales, the year, truck XX,XXX total sold for X.X% Class accounting down we U.S. in X previous the X Turning market. new trucks Class in XX.X% over of

fourth industry quarter, market pandemic truck which constraints and impacted demand the issues. chain related aligned only expected supply production but new the me, with the Class by U.S. consumer XXXX. also Our sales currently not Research In downturn, XXX,XXX units truck X increased to retail customer country. were the strong spending, in -- spending throughout and ACT excuse due rates freight forecast activity healthy sales strong was construction

spending, new Class to sales consumer the We issues, ability manufacturers’ X grow, may limit supply component continues industry. believe economy to which overall particularly consistent demand housing, through manufacturers we monitoring are the XXXX chain will truck be cautiously in our in the with While automotive and meet year. current

the for XX.X% from units market. XX,XXX and XXXX new X-X of X.X% Class in Our reached U.S. down accounting truck sales XXXX,

from foodservice customers, some to leasing of and production Our manufacturers shutdowns represent. rental the particularly COVID-XX, attributed well the impact decline commercial the we on be and can as largely as

Our reached ACT sales up deliveries. X-X in Research fourth further U.S. X.X% retail XXXX, forecasts quarter by were Class fleet impacted XXX,XXX of negatively timing from the results XXXX.

truck Looking ahead, some while positively impacted lead medium-duty remain sales for challenges times. production particularly overall the by economy, will

nationwide customers, X-X we of XXXX trucks industry. However, consistent ready-to-roll our supporting sales a in inventory truck achieve wide our new with growth with variety Class healthy the will believe

due Our trucks higher values sales in in U.S. XXXX, their of XXXX. helps XXXX, lowest to employment should of XXXX, than strengthen In general reach It normal in point trucks be year. and demand were to demand high expenses the in [Indiscernible] noted administrative trucks seasonal second new XXXX. in taxes, half expect that to increases the in quarter from used we expect approximately to truck Due payroll of sequentially units XX% X,XXX be down benefits X.X% which values earlier remain of used fourth strong. the higher used trucks we

safety With truly Our employees some for like the and year, them obstacles to grateful face this of co-workers communities. and customers, protecting take that, your our dedication tremendous questions. to and health our I'm company, while unending I'll their

Instructions] compile We will for [Operator a to Q&A roster. moment pause the

Go Our Justin line ahead comes Long. the first from sir. of question

open. Your line is

and quarter. Good on the morning Thanks. congrats

Hi, Justin, appreciate it.

parts and can share probably what little to so us bit So seeing be maybe services quarterly about comp, all XXXX? place thinking throughout expecting what Rusty January can you then to here, the the just a and you're it's the growth in start more color give you're revenue given perspective you service, and with about from going of over parts a

January, in year bet. said, to January. has as be service Well, of the XXXX. January and speak less okay. the it's about back than of you growth continued it it That Sure, was in acceleration I'll happy still parts the and in Right. half

that was told year, right? know, we to it, think March like first the took back really was it, time, we back first you year, last quarter, was same bad you about would quarterly, little over year as shy I over XX-month back you bit bit it it. last really is You you you only year's not look look I it of a with all to…if a say effect, last Because the maybe COVID look least. two said right. weeks was expect at that quarter got know the a little quite it that At everybody way at lumpy

quarter continue But So fairly a the -- it'll believe little January, to late later at be like. we'll get a year, I it is up? be down remain to difficult. a path because we going so in it's effect close. all going in same. COVID hadn't started acceleration to year was And the but the business little last what Again, the COVID much tough, our happy little had and things I we be it But into first be like a but same geographically growth to am yet. we out the we're time, Board fairly we're are looks back year, continued, seeing go going continuing obviously, and up dramatically acceleration. over going last we Well, and through the see, across hit get to I Then right. pretty QX caught We if last is QX,

will at It'll it's in said mid-year, I that would QX could slightly you of you So QX, you were you if look of just gradual in to down continue And where mid-to-high-teens, high-teens, would, year, QX you'd the to average that this but something this last probably over as that, you would a hopefully, snapshot as really QX, acceleration. be like see flat we year two accelerate, then we think lot that a And Europe, mid-year. in I roll take we year. not say average in out. through

I We nice, continue made can we do to the want the work way expect the to to that year consistent the the it nice throughout where growth see of acceleration, gradual in investments times -- back operating we're go which see to is past, normal fruition. back come we've in I want we like

look But where And the the so, feel they in year in we're something, marketplace, we're we're of blended to get good of the feel across flat XX% okay. but your very as much a we'll growth overall was headed about but good towards last end the pretty board. rate, year-over-year, be close Because for won't company hopefully, we where way where we And lines, year, when the at. about at. pretty we

margins, be service That's is for you helpful. the parts about to and And to feel thinking XX% right XX% range do like gross thinking XXXX about as well?

obviously got had like you say when it, say not and to QX know I'd up in QX if I I'm QX XX% was everybody's couple right. and to XX% a well, you we'd going to remember quarters up, the blend to XX%, mistaken, sequentially, and you're X, tougher it's

And the average in want one middle had issues. other and we rebates Yes, bit the are Obviously, on it, to it quite and If timing with the as sometimes blended? during margins do So it mix, to the know, we has than right? year. level XX higher and that we parts margin. was service blended of lot also, yes, a if of a depends you above take had

did to but give yes, year. might go. better throughout growth had pandemic down we're we we'll And try parts service and a from good I of And broad we to little maintain flat the throughout middle we hold them. better think I rate do just a Hopefully, line the to the especially gone in feel seem it. technician service of you quite So perspective, next have few as year that answer, in a XX% higher blended can we a a little

During try seen and at that steadily what year. little doing. And support of market we're the evaluation technicians been so, to pace months steady forward over last we've pandemic, go we four add the to to also that's bit on And our nice as a or we've into back going part. this a the

service hopefully margin. a that back able the little higher we'll year. Bring continue which throughout faster, be a to So little has a little

about. that'll that the talking you're numbers So support

for Great. And one last quick me.

G&A always You color quarter quarter. is pressure the the step in expecting we sequential in there be more should see any first know seasonally But in mentioned some and that first around we XQ? up the in I

we revenue that look lot inline in that but of lot QX and et the it's cetera, of what things and see you'll and of right. say numbers no in be think of think in a et will are don't costs exact I Security, later people even high employee going up, comp I a see was we benefits, will have revenue and the not equity in the seeing out types then different back year. we at effect, especially and accounting can our get historically, historically, are the flattening a The same service, maxed out, on get paying far expense year taxes you But there's far higher that back also the than of QX, maybe would this QX our the I it down. be There come time, step into them once have to the you'll into all a and want a middle growth. Social exceeding be taxes past. Those base, better take out -- payroll out, year, all historical the be that you you're cetera, should the growth

to the moves QX, or drastic we've had we've year. finishing As And back half to, most year the in to back basically made in the everything reinstatement. quarter it, moves we've trying of of during talked rolled about dramatic when getting we we of get that back up the

we hopefully So, if the can we back margin retention the we I would to QX, through them ends grow get we to and nice as some line, continue of should, business, the bottom will. I as think especially see,

time. it leave that. I'll the I appreciate Great, at

You bet.

comes question your of next line Go Cook. Jamie ahead, from open. line Our the is

forecasts the to right energy tailwind length degree if a cycle? a is out chain then wondering XXXX good supply business you a for your potential guys I'm quarter. release, nice to in I I'm potential Rusty elaborate, your my first, there press just questions. risk, or if And Hi, see now. understanding comments guess And XXXX, you, limits prepared question is second there? that in depressed to you in of the what concentrated a earnings. that's just could the where you times, production you couple into quite noted sort in couple morning, wondering it

So what of if you you're could you. comment, on that seeing front? sort Thank

in be we Yes, we're love counting upon it. I'll of last the energy? years on companies, sort counting the we've changed reverse to like No, used dependent we take What four order. we are quite them -- not in

back on than out we talking, I okay, if there, and that, had. slight, the X% on that I'm sales on weren't little have goods knows we year, to sit to starting parts We the Jamie. same which make there's don't rumblings oil held revenues no have -- numbers, profit, And less is think We that, But here parts so than some would seen side, tell little our okay. tell love you which the have zero Saudis better evolved And activity you, we service in bit. at of would was is time, has I activity. service we've gross it that's even we our there. our the and I anything bit less supply. to a tell you tailwinds price the mind than better, that's pretty stable and X%, price of capital rising of still of X%, energy bit But slight But But my heavy. we not activity little of been obviously, a have, really, see and a allowed can and side. the if a get we last of were everybody were we're

So see movement it's of not I bit -- little a counting bit there's a am there, out but little but -- on we it. of

a I We'll it's we it's just if it. just it? very watch answer have But bit a Because of too tailwind. think think fickle. fickle. Yes, I got your question, probably little to to

reason the and economies up as going in of and Given the is to the around oil also. price world gone consumptions mind. obviously picked why And reasons up up my consumptions

would same So see want to was at nice. or right been there but I have the just if we'll be Saudis, and nice now, it yes, up. don't there solved, forecasts but basic avoided just would a it be prognosticate to be on but if wouldn't out picked but the lesson going be It if watch to not will tailwind I'm your has time, we

Okay.

go will we to Now suppliers, okay.

months about figure well food, we'll own a anyone, to -- any their about Now than less if world, talk to right. had ago, little I out, I few probably suppliers. didn't knew in trucks and used I chips live trucks know

just lately. think it's or care got don't manufacturers we we I ever I I I've chips few lot only a and everything but they thought than we learned here fall and learned you with, whatever, TV more I would, I've a down Xbox, got when deal I'm the same everybody's if a you so I sub somewhere Tier that Tier supplier affecting the the chip into different ways. suppliers about all. and make everywhere know get exact read X them in everybody's be that X people to may scrambling, concerned the OEMs not same like automotive only else,

when and things in on into times go those even So I the some you here, have fastest the the that period that big this okay, fast, trucks with concern years. of out When XX weeks, at lot had XX not there are of but markets of be a up, the happened -- chips. lead and XX XX, tough other ramp and you of volatile look in goes we've what -- steel around get is up acceleration outside

concerns. got just I've So

where in if dampen demand thing, demand GDP growth going the don't in going start next to think mind the X% it I a mean, Because I something domestic to there, you okay. free dampens year, doesn't from. bad product. in But, think my that's the getting not your you demand. this I And Now is is and we'll come it. catch it’s tell even

just at get we'll just looking to They're be ramped, good okay. may the -- be particular, think the order intake thing that across business, that supply goods it's fast. one in truck to it or We folks for so the may early I person -- it. in demand. if been the Because the there I so just it's -- strong not the current fall not overall the demand it's side one country. think summer, levels, has think I up but ramp It's we're later

COVID catches my a than the just mean, stress up. it's stresses had since not and everywhere, my lot it last stressed here. there's points we products, think, And supply the -- there's shortest had business be going I the employees so, supply And just mean, just way, from till, whole March until of few not I to look to weeks, the side chain, it. from I by out, December, whole just perspective was the the I with whether around and ramp been up we November more just on

them, know, think don't better little And so be will I of is for there demand me actually meet we them, is just we'll may feel a little going that stretching the what, demands. I stretch some, meet away. out bit frankly, out, don't it okay. of a demand I the intake just order it the can which

issues? chain do are or parts? chips you I seeing see supply the just Is other in concentrated you any it Is risk, guess

other time tanks, I things think because I've No, I I I've no said oxygen I about and risks, put this don't there's the like to and assembling to day things in I like -- what I I hear mean heard I've things. week, there's means. heard heard for Mexico they other question. I had don't haven't that tires. think -- rubber, talking other even just know it start hospitals. okay, saw about explore,

catch put manufacturers I all All going one. not continue it's not cognizant are think think need bill it. But I some to and be manufacturers we we'll an raising accelerate this. expert constraints, and broader, just -- just manufacturers that I I'm on okay. rates. to because are that I may know right to be do the

goes washing inside if by machines just as go so build they just is that things expert an This I'm demand not on just supporting bicycles take to is it's vacations, But raise of or is catch by that, economy industry continues opinion, the It's products, demand rate and type it. the other So to refrigerators okay, and just go And because strong, demand, that's bit going what nobody stress the bill Xboxes. or their huge. stretch. is see. to that board, even our more put similar TVs and they by, we of way I raise to a for across they it's parts this my any

are should it. and to out we to I catch I not I we'll I I see and sure other Everybody's they're As ramp going but level? for I hit OEMs it businesses it's just the to keep don't think look talking able a it, I'm all don't truck right what stuff, automotive and meet to sense saying backlogs, think you you'll makes that That's things going I that's were find in it going dash there don't get to it. if it we clusters, -- in are going about. it just think it's But be catch at be Is to levels things and doing? about you're -- today, any ramp about the to don't they'll what might business, demand just thought do believe know sure under be believe Because those the us people want And I believe I not talk types enough will be of doing know. to haven't production. work. up. stress. know guys I that things the I to will across I'm decent not what I

helpful. That's no. Yes,

new that new gains on was? and I'm drove margins it margin, quarter the the what queue. get that’s just sales, trying question. X.X%, The the Just truck understand with the there strengths in news one in a And more truck to back I'll margin what of

same okay. time, but Yes, new the record truck margins, solid margins, truck used at

Okay.

the we've truck margins okay. best had, the used quarter With was ever

I've now. shut then well, says, back the inventory say factories and I I on used lowest got demand wish used right for that. don't down months, had years. normally up. supply what ramp side trucks. had a sustainability, truck everybody the we in I more So But, well, used slowly when couple

taken get ramping when right but freight is he they trucks, new Oregon, then back down routes, up up can't in XX% the inventory gets back of summer, the the there, to on truck new used XX% Let's trucks behind but go started had April, both freight markets it. we demand

that supply Well, you right. And guys this that meet so contract to I out people to explain start there. demand, demand to freight was want wise,

both up, for your are So scrambling margins product. go people

what You're do able what and get better get People do. that so paid to Like we margins. to that's happened.

somebody solid might for sure asked look I'm truck said remain and -- my have question forward I going used to I do me notes. used So that as to I

dump, While remain all because good we I know, a But volumes look tight now, forever, used there now. cyclical. fairly foreseeable at supply for side pretty for solid, used least future is get little is should the as strong,? right remain trucks But for used can

Thank right. someone in. get you. All question I'll else a Okay. let

Yes, ma'am.

Thank you.

Our Obin. from Andrew next line question ahead the comes of Go sir.

morning, Good Rusty. Hi, yes.

Mr. morning good Well, Obin.

You there?

you hear can Yes, me?

now I can, lost No a there lost you -- buddy. minute, for you I I

years stuff new Yes, impact thoughts you sorry A longer you. five give projections? will of seeing? that. some about of Thank for next can to maybe technologies you're trucks, batteries, in the How maybe this news term about the lot talk industry? about three the what us and about In sort hydrogen, maybe

lot government where we a a pretty of here had climate -- perspective, from from you a this to comes. going get has I've Well, hitting angle, through Well, career, next to here. hit trying from through this, the from everything drove ramble regulation. could ramble? political ready, to decade XXXX. this stoic, we XX you're XX on, been around from be went from decade a I'm the bet. going Everybody stuff going think head XX. -- seen get my every With myself, obviously, from After XXXX up in every perspective, is my it I with to going not mileage okay. in decade I've to a to XX disrupter all to fuel get You biggest a last going You -- --

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number those are not give but probably Other what And in I really will especially long said, up have going that, through There's Class Diesel it bit So next I going applications. a X it applications, decade. you I'm haul I've X as be trucks as not okay. we to you. sorted don't care little expert, is of diesel over. color. probably not I things to in pick I XXXX one certain tell tried but out where be this rambled that your they enough. be go don't away. in I would still long taking see to folks,

probably And longer, so enough. I'll leave it go at but that. probably I talk long on could

you Any autonomous? I'll As I long got ask a follow thoughts on as going. up.

you track? right. Oh, think want as I'm here him. Well, we scientist a boy, well, all you If

All works stages back got there's thinks there's There are and way, right. that. there's right, stages and they everybody worked there it it. a it, right, boom, five and of as and Let's folks being start talk. you've don't in like by to quite right, Navistar there's with automation, I Remember, always think a truck autonomous on say I there's nobody embark [Indiscernible] got you samples speak. autonomous lot of and we the do out mean, Well,

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– autonomous. okay. right to books, the not he's working there's the wheel whole wheel Now cab, or but be behind time. But his I'm guy this he's he's that, the maybe but doing behind have not he he's doing a doesn't But, on the or in

are vehicle probably. answer watching yet. there just haven't for human years? allow do with five, to remember, the down natural how far gotten out And other But automotive autonomy XX, of going right full even being okay. level down don't Will pound drivers no look, is, so. people the the to go legislation know get is there's say we way within that make what answer way, Not I much the five an the to you're think And still be cars sure the so that get I but -- road a going to they're all it XX years passed get driverless? XX,XXX going and or road? there things to

get do get but said, it, dealing there's to no we out be the through We'll to I perception of with that lot a there's you'll there, of believe So once lower as into from gets whatever I us. perspective, even technology get question. levels

big the big the required wanting forward, their get large less the now, they're because to right? required, what's a was while go set diver, wanting, drivers, we time error than don't skill fleets, are that so there driver so would that what's is set they So and As the full be because I skill perspective, rely hope if autonomy, from helps. even possibly they're that

such it. sooner road. I think, the the while. also, look through full piece down that you got we allow a things. think autonomous first, think legislative I hope I got to than for years you're levels it you five laws I to going three, But wouldn't of will four at we're going Maybe somewhere to But that different to get get or get passed get helps.

and thoughtful Thank on answer Thank for counts. a you, you you. both great quarter. Thank

Thank Andrew. I appreciate you, that.

the next line Thank Tiss. The of comes you, Joel question ahead, from please. sir. Go

Hey, guys, you GameStop. your bonus hope didn't $XXX in put I

how I done Well out I pulled well someone I it. it send will did put in, -- it

true. Yes, that's

the of was income talk in bit lessons amazing, a structure, of $X cost revenues some a in wonder around, little guys we I decline could the like flexibility pretty direction, if and are a different about $XX your down, million. learning billion go that's So because net just and on you

I so are And and things learned on of in some to you you of XXXX? guys just Thank were the about, holding that some that, what wonder how thinking you.

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look, and let's a Joel. down So I'm further taking little deeper

parts flat, let's QX look the up remember, sales flat, truck Let's look service XXX, X% right, of that? pretty or at fourth I'm off how of up maybe I use a X year-over-year, couple going medium at little, off XXX about Class quarter, If X. X a XXX Revenues or and

see me Let and net $X.XX $X. income, XX.

we're learning something think here. I

about where you you right I a about, manage. look about say, look your of and us earnings. headed. this the net we're So for did results, go I how be it now, the talked was the I and do the that. just we year. you was have same thankful -- I better back and to tell little comp results did well, gave get out may was at when up going In money, quarters, the very learned a dedication time, I it. But what a What stripped about quarter. you we extra the the job. out. that had don't and we muddy that. G&A we at can feel biggest by and in feel we thankful, good if the change of reinstatements the tell. to and And, going And the I ways was we're this I year-over-year, and way, hard pretty work I throughout -- lot employees all anything, good we to can And learn I

where should may little out regardless -- were a better much whole expenses the a muddy look So inside in inline very be. they there, obviously of lot

about to just the that. organization. part to we've speak goals for of caps implemented, even some feel the some I us what, of I'll And inside the speak like got things now, -- we so mean, I And good the all salary guess sports, that's of really right.

salaries, revenue, stick So, grow pretty be to can going tied grow if simple, you it's your you to some number.

implementing and when we'll the ought and of feel about we get but next years, learn can sales costs in the pretty we're and forward. I've business feel going on, do the to got very, and So worry you'll And we there's I three technologies get business any other that do and these and what have can't better good very that hard and add about ‘XX, started if feel the at, that's, itself, side look going care than a see, and But look it don't done next truck But our feel quarters it, we're it. fluctuate And truck service want good the parks will into and doing it's them. at But and you Because tell sometimes quarters, not don't results as will I especially as show results, for that go there's look been to I things the that other, it at look of where good we're I I it. I change with very to other be think we in that this in That the things we job I products, other. But all control and to other. year won't into you and saying very three you implementing, sales, we all at take to you and we a because these stuff we think, there, do business. historically. see good. okay. can I out this and about reinstatements what it years, about to in for good in float

And of all in to the continuing we not and to and talk -- to and the -- ways. not I'm have other that it support initiatives out about, we're fruition there. of spend the okay With growth to future. not squeezed they're invest money have going not not And

last look us we're truly it's back out all the to up invest we So at want done. not it. that with I hey, learned that talk, the And right? wanted I continue in. continue me the and what tell the think the But to we up do also that at I look in execute a I there. as going mean, we say, numbers, set I'm because do well hopefully I we're I to to think and you sitting sheet company. with to here we get and all in the and I balance excited are me talking know, grow, would look right, the to -- And what -- is We're I it from want. alone But believe to at we two years balance sheet, have knowledge let I leader you don't showing But top got year. And better anybody and go we about up get will to look up cash, situation we've, forward.

best your, repurchase, of bit kind a or XXXX. your multiyear rollout? Can more to flow guess you're Well, that your give free that front-end is of you longer cash of more $XXX in a going do million sense great. that And thinking little is share that's a a just term around loaded all of us

is control markets market -- approved Well, that, I company and been we've can't what about But can't I to do. good I correction. our feel going

to plan. So, At overall, if power -- go time, some, as same there's going going been we're we're believe we we And we're very but continue consistent that probably probably will the Cash a we to at the somewhat. to our we've accelerate it basis, we're good we more an a mind, throughout we're make about accelerate in nibbling If doing, want flows up there. at we'll a market buy it. that Rush strategic set Steven. And on why correction not because feel sure that we we that's or year. something -- being that have that of correction,

cash flow flow, and the know I cash statement. Free mass in gets it

you repurchase, guideline our number that end year it a at of grew That's with enter in flows, dividend call $XXX the ago flow. to $X.XX was includes we the it of both now. just ago try is from considerably. when the free adjustment, which Actually, $X.XX all and quarter year XX% -- return doubled our allocation a capital to we and But do to cash raised share a that continue guideline. about we've we that year shareholders be we look a even will considerably it's split to of million just of at you year. If ‘XX, free like the the to million on on printed the piggyback $XXX Rusty's And, cash going answer it million cash year year, $XXX kind in our next

because that's eat to we to dry share actually plenty we we've repurchase XX% balance if of going to to that an more flow, powder that. cash deliver and So cash, that, of expect then than of And would of a got opportunity the through correction, free market do repurchase. see

a holds cash still back. sheet we numbers spend balance yes a lot the of still will of Yes, -- cash lot even the returning

a lot now. holding of right the and sheets cash balance So

will strong compelled So continuing but is it have say there don't when unfortunately, continue, I becomes or -- a big what well, is could. acquisitions? to And with and going what sometimes. I given know of lot market to opportunities network because don't for largest is, little already wish already a look we I to our I bit don't feel we're of out difficult you're manufacturers don't I it ones, five be as how know you're the more four breadth the about and a I

lot is And thing, a beautiful much. you having of very thanks. cash Thank a

we really couple You on about bringing got because four just got plus better a other turn fore let than play sale, three We and bet. plus That's is is quick, we've and debt to to mean really times unit real items. that. and The is That tagged have X,XXX a gain trucks we small don’t that I we're an year. buy of lease win the we've if and always it just paid. at consider Is me only it back X,XXX really leased asset say lease unit, Yes, concerned simply. trucks ma'am. really you on full

So, us. trade to a it's just payable

shape. So, balance we sheets like good we're in our feel

Okay ma'am, done I'm for once.

do from Brian more Thank Oppenheimer. please. Go a Schwartz, you. We have question left one ahead,

Hi, good morning.

buddy? you Good morning, are Brian. How

Month basement but terrific. okay. I'm in XX the that's

your boss up is doing there? How

I'll wonderful, send He's your regards.

said him, William Tell Rusty said tell I [ph] him Tell Brian, hello. hello. Gibelli Mr.

please. Okay, then nice,

Question weak. for and in would you an you, now of rental Lease couple What do the well. there? Certainly you area tariffs a call questions. that had been customers, see

when had I service strong some We mean, have deal food the lease seeing lease hit, we with We're from sales rentals. to, was call, into started that and When Brian. I the rental and you you're necessarily when business? And go rental. COVID like are talking called or off rental strong. separated typically and one lease we what we again, lease of year I earlier, my things and on then my that. not businesses, Which about buying the was are my vehicles back referring

I'd take both.

rental of that lease last year. no They roll out the they up. get right. you question. from next would. rental way course lease you back year. trend, Like year and turn got coming well purchases of Because accelerated, can't are of truck and to Lease They have market, this for things Oh, stay

year. stronger and this lease back the year last much the in rental yes, are they companies market than So were

was resilient quite business year, was great done what well effort and of rental a it year. the Our proud year we've where course the and lease a with. I under it us. rental and lease was Well, last record got situation wasn’t very

is after used As to old rental right now, get down. say we you school and the I Christmas, always your look typically this goes

go down at rates here they've right it the down, gone moment. I'll utilization Your say is

right. that's economy, well the and So, indicative overall

shape good perspective. to rental will is I'm from utilization the business Your lease continue sure in grow. And our

it three go five very don’t But run to We markets now, grow a there. or I a four as in over expect We year. profitably run fast; grow five mean, conservative we as all change think up we slightly book really points I over the years. going really last five game years years our continue last over forward. our we to lease the have mean we five that's last rental We especially we forward. it's the and and don’t sales. very they've only tuned of the the I pleased we're go business results with

great. that's Yes,

back to Now the question. going cash

it for a You're But of sitting bit really touch grow obviously other and pack business. environment it. M&A can on your the grow, quite What's the up brands? up

up chops, up and quickly. together going fast then pretty dried back I a It's boy tough, to tell back licking the get hands unless thought so there I me was in March, man. gets I I opportunities my Oh was accelerated we you with -- go would It's market to at rubbing when Well, with, out chance, April, the right. that my then

in but little third wouldn’t would God mean of but looking? No, I nothing a Yes. big show think in tell I many So, up. had and that outside can Canada right something of breeze I But won't degree. we're big? a tell I we'll now. part my start JV 'XX of up Am you and that I still consolidate say. that to But real some you mean, couple you other that do really that, not And got ways. really. that

you, out because you you got would so. begin I never up, will to products. the in given They're more right, I for I've mailman to said I've we're there the a So, runway demand a it's going market like tell looking when the back year for truck I'm God not it and inked coming told you'd begin but lot tell with, Well, there don’t are runway taking earlier remember But acceleration with like great they instead and we to we've the and good had. got it out the good Clip lot or so of buy okay. folks pretty like a coupons take well of the out, there what X% and running since you and seen keep I Coupons market Well, clip tell X% like work in it years 'XX And economy, or he's couple for here. got started something, when. costs a 'XX, pre that we pretty of changes was haven’t pre going half decade. was three And

for that with the So, it. truck usually boards business, grow well we

will Yes, the that up some behavior now last be next in customers with trade change Any months. in wrapping one. few Navistar likely in

issue don’t to hear, taken hear ago, care the years of say used board, we the I of. viability. the five We think long that That -- thing exact used had you gets one you that off okay. four term to that wipe

The announcements see. is I piece see you'll their of other some

it'd I on whether to Some doing working started. General taking of together collaborating or it already other working more on be anyway of stuff. been the they be And their day advantage could were and purchasing, the just And market with coming hydrogen with products. as FreightOn on -- on with alignments over they've collaborating already it'd and more Motors years now they've three that. of or couple be the last Because it's like think

a customer actually San in new And a just just good outlook down from plant very Antonio for right we the they're organization. perspective, feel building makes it here So, stronger And now. about it it.

like, things. that, just So, good we do One folks or good of I all to lot feel go our the and now. the board is it like thing right about I got very a there is across It suppliers a that. got manufacturers, our know lot end was I represent

things so, shape better been. a And they've that drive in and was ever

in it's shape. In fact, overall great

good. on or OEMs medium-duty about They there. we very here all get sometimes it'll suppliers. that medium But forward a little and couple also work, at it'll when got and hiccup and the So, our feel I believe do feel good back both but the going fell supply I side on of

year and Excellent. of to Well, to good this talking you luck best --.

Good luck, out Brian, Brian, stairways -- luck basement. the of no that stairs good

We're getting there.

Okay. -- Alright.

another have Joel Thank And we Tiss. do you, one sir. from

Mr. chance. more Yes one you get Tiss,

you your sense But what's new emissions in bit little the there? else more can all a behind of of going in zero sort just next of us strong of of to a wondered standards ahead are three or industry. anything a years pre-buy I that. a gradual give be Is if these that With

that you'll Oh, I see think okay. in some of 'XX,

last had was which they time trucks. people most to stopped then that's Well, to anywhere, I it's started at economy the sector. government you Joel, stimulus And at. right good now. by it had whatever to the there with they then got the everything running When pace and whole spend were And and okay. I do they income of get took mean else the and travelling. it think

not not -- start Okay, and up me back to Scotty. they're we're beam truck

on, driven -- everybody same the run that the more things because and the realize nobody Amazon way you for goes of the to trucks you've trucks that changes the said, van. and drive, So, side until was demands to more we it's are got there the then driver I going buy going figure out, says created it. are delivered. the malls still being distribution town with truck be trucks on around That’s actually And shortages. from got to

vehicles. their in home at drive Okay,

board be in So, and created factors. further it's all And changes up distribution. it's with like GDP just and being across those demand other to going the

miles demand to going I board And get money drives see and day. right board. trucks, miles many longer I going what it's We're I'm of national I trades what as They And I the we we that away. that big one think some my I give do put used I got and now. But have for that. holding you there. wrong, term But something that I to is in have I about believe I put concerns about still as I see great economy just own that's of don’t we demand have that can But to much it's across because how overall cetera. or strong. mean mean see that deal mean was outside still as could see just presume many in set And something, all on distribution of like not not kind now macroeconomic, they I concerns don’t in when show up. changed. my that. to trucks, well was I we're people just dynamics it's don’t had et I that's out be think this don’t up don’t --

So, takes If that done. any makes more it get but trucks so. it sense to

that's Well okay. Well, perfect.

see next of over the I to bad three years. it's there says out couple nothing going There's which be

all. that's Okay,

Okay, great.

got? And

no are questions, There further sir.

You may proceed.

a Well, it's QX was been great. last time release. since since Well, we a since talked while to you

in months like. of it couple in you April to looks talk will We

you participation appreciate We So, for this very morning. much your thank it.

today's for call. you this Thank and conference gentlemen, concludes Ladies participating.

You may now disconnect.