v3.26.1
Note 6 - Segments
 3 Months Ended
Mar. 31, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

6 – Segment Information

 

The Company reports information based on operating segments identified in accordance with how the chief operating decision maker (“CODM”) evaluates business performance and allocates resources. As of the reporting period, the Company operates with one CODM: W.M. “Rusty” Rush, the Chief Executive Officer, President and Chairman of the Board.

 

As of the reporting period, the Company currently has one reportable business segment - the Truck Segment. The Truck Segment includes the Company’s operation of a network of commercial vehicle dealerships in the United States and Ontario, Canada that provide an integrated one-stop source for the commercial vehicle needs of its customers, including retail sales of new and used commercial vehicles; aftermarket parts sales, service and collision center facilities; vehicle upfitting and financial services, including the financing of new and used commercial vehicle purchases, insurance products and truck leasing and rentals. The commercial vehicle dealerships are deemed a single reporting unit because they have similar economic characteristics. The Company’s CODM considers the entire Truck Segment, not individual dealerships or departments within its dealerships, when making decisions about resources to be allocated to the segment and assessing its performance.

 

In addition to the Truck Segment, the Company generates revenue from two additional operating segments: Retail Tire Sales and Insurance Services. These operating segments do not meet the quantitative thresholds for separate reporting as specified under the guidance of Accounting Standards Update (“ASU”) 2023-07. Therefore, they are consolidated under the “All Other” category in the segment disclosures below. These segments share accounting policies consistent with the summary of significant accounting policies.

 

The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company evaluates performance based on segment operating income, not including extraordinary items.

 

The following table contains summarized information about reportable segment revenues, segment income or loss from continuing operations and segment assets for the periods ended March 31, 2026 and 2025 (in thousands):

 

   

Truck Segment

    

All Other

    

Totals

  

As of and for the three months ended March 31, 2026

                        

Revenues from external customers

   $ 1,680,336     $ 3,849     $ 1,684,185  

Cost of products sold

     1,339,987       398       1,340,385  

Controllable expenses

     214,273       1,324       215,597  

Allocated expenses

     43,874       2,122       45,996  

Segment operating income

   $ 82,202     $ 5     $ 82,207  

Other Income (loss), net

     (464 )     -       (464 )

Interest income

     1,069       -       1,069  

Interest expense

     7,329       94       7,423  

Income taxes

     13,709       -       13,709  

Net income (loss)

   $ 61,769     $ (89 )   $ 61,680  

Segment assets

             62,764          

Capital expenditures

     66,030       -       66,030  

Depreciation and amortization

     18,570       148       18,718  
                         

As of and for the three months ended March 31, 2025

                        

Revenues from external customers

   $ 1,847,106     $ 3,723     $ 1,850,830  

Cost of products sold

     1,492,706       363       1,493,070  

Controllable expenses

     191,190       2,965       194,156  

Allocated expenses

     71,336       399       71,735  

Segment operating income (loss)

   $ 91,874     $ (5 )   $ 91,869  

Other Income (loss), net

     (440 )     -       (440 )

Interest income

     674       -       674  

Interest expense

     13,447       91       13,538  

Income taxes

     17,949       -       17,949  

Net income (loss)

   $ 60,712     $ (96 )   $ 60,617  

Segment assets

     4,628,663       59,277       4,687,941  

Capital expenditures

     113,314       -       113,314  

Depreciation and amortization

     17,116       140       17,256