v3.26.1
Note 6 - Segment Information
 6 Months Ended
Jun. 30, 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 June 30, 2026 and 2025 (in thousands):

 

   

Truck Segment

    

All Other

    

Totals

  

As of and for the three months ended June 30, 2026

                        

Revenues from external customers

   $ 1,895,160     $ 4,519     $ 1,899,679  

Cost of products sold

     1,537,509       500       1,538,010  

Controllable expenses

     218,924       1,441       220,366  

Allocated expenses

     41,865       2,252       44,117  

Segment operating income

   $ 96,860     $ 326     $ 97,186  

Other loss, net

     (526 )     -       (526 )

Interest income

     2,861       -       2,861  

Interest expense

     7,150       94       7,244  

Income taxes

     19,257       -       19,257  

Net income

   $ 72,788     $ 232     $ 73,020  

Segment assets

     4,595,437       64,092       4,659,529  

Capital expenditures

     82,302       -       82,302  

Depreciation and amortization

     18,916       152       19,068  
                         

As of and for the six months ended June 30, 2026

                        

Revenues from external customers

   $ 3,575,733     $ 8,131     $ 3,583,864  

Cost of products sold

     2,877,496       899       2,878,395  

Controllable expenses

     433,198       2,765       435,963  

Allocated expenses

     85,740       4,373       90,112  

Segment operating income

   $ 179,299     $ 94     $ 179,393  

Other loss, net

     (990 )     -       (990 )

Interest income

     3,930       -       3,930  

Interest expense

     14,479       188       14,667  

Income taxes

     32,966       -       32,966  

Net income

   $ 134,794     $ (94 )   $ 134,700  

Segment assets

     4,595,437       64,092       4,659,529  

Capital expenditures

     148,332       -       148,332  

Depreciation and amortization

     37,485       301       37,786  

 

   

Truck Segment

    

All Other

    

Totals

  

As of and for the three months ended June 30, 2025

                        

Revenues from external customers

   $ 1,926,222     $ 4,485     $ 1,930,707  

Cost of products sold

     1,550,455       581       1,551,036  

Controllable expenses

     219,008       2,407       221,415  

Allocated expenses

     47,110       941       48,050  

Segment operating income

   $ 109,649     $ 556     $ 110,206  

Other loss, net

     (372 )     -       (372 )

Interest income

     365       -       365  

Interest expense

     13,000       91       13,091  

Income taxes

     24,119       -       24,119  

Net income

   $ 72,523     $ 465     $ 72,989  

Segment assets

     4,653,484       62,290       4,715,774  

Capital expenditures

     125,146       526       125,672  

Depreciation and amortization

     17,463       148       17,611  
                         

As of and for the six months ended June 30, 2025

                        

Revenues from external customers

   $ 3,773,566     $ 7,971     $ 3,781,537  

Cost of products sold

     3,043,162       945       3,044,106  

Controllable expenses

     436,216       3,751       439,968  

Allocated expenses

     92,428       2,962       95,388  

Segment operating income

   $ 201,760     $ 315     $ 202,075  

Other loss, net

     (812 )     -       (812 )

Interest income

     1,039       -       1,039  

Interest expense

     26,447       182       26,629  

Income taxes

     42,068       -       42,068  

Net income

   $ 133,473     $ 133     $ 133,606  

Segment assets

     4,653,484       62,290       4,715,774  

Capital expenditures

     238,460       526       238,986  

Depreciation and amortization

     34,578       288       34,867