Jim Palmer Trucking lays off 6 employees

I remember when I went through there orientation years ago, that was the very first thing out of there mouth.
Crete said the same thing also at orientation but I think it was the 2nd thing out of his mouth (the first was TURN OFF ALL CELL PHONES).
DRIVE SAFE

 

Knight advertisement in today's local rag states they are 100% debt free.

KNIGHT TRANSPORTATION, INC. AND SUBSIDIARIES
Condensed Consolidated Unaudited Statements of Income
(In thousands, except per share data)

Three Months Ended
March 31,
2008 2007
REVENUE:
Revenue, before fuel surcharge $ 141,302 $ 144,825
Fuel surcharge 35,109 21,709
Total revenue 176,411 166,534
OPERATING EXPENSES:
Salaries, wages and benefits 50,011 48,840
Fuel 53,557 39,634
Operations and maintenance 9,301 9,272
Insurance and claims 7,066 8,006
Operating taxes and licenses 3,652 3,557
Communications 1,414 1,418
Depreciation and amortization 16,953 15,931
Lease expense - revenue equipment 54 106
Purchased transportation 12,921 10,732
Miscellaneous operating expenses 2,755 1,784
Total operating expenses 157,684 139,280

Income from operations 18,727 27,254

Interest income 254 182
Other income - 188
Income before income taxes 18,981 27,624

Income taxes 7,564 11,005

Net income $ 11,417 $ 16,619

Earnings per common share and common share equivalent:
Basic $ 0.13 $ 0.19
Diluted $ 0.13 $ 0.19

Weighted average number of common shares and common share
equivalents outstanding:
Basic 86,335 86,173
Diluted 86,792 87,167

 

Our load count increased from 153,785 in the first quarter of 2007 to 156,667 loads in the first quarter of 2008. We were successful in reducing our empty miles in the quarter. Empty miles are much more expensive to run with fuel – with the cost of fuel as compared to just a few years ago and we were successful in reducing that from 13.1% of our miles to 11.9% of our miles, and we expect for this trend to continue.

They ran almost 3000 more loads, cut 84 trucks, and cut down on DH miles. They also made over 600k on the sale of used trucks.

I wonder what affect their per diem program that charges .2 cent a mile to the driver while reducing their tax and SS liability had on the bottom line?

I think your right Jim Palmer should of let them buy them out, but was probably offered squat because Knight knew they where in trouble,

 

i worked for Palmer for 6 months until the end of May, which I love the new job and make more. Knight wanted the trailers, accounts, and terminals, and only half the drivers. Everything else including the people had to go, that is why he didn't sell, so basically they wanted the name. It became a very bad place to work very quick, I was told to run illegal on the qualcomm and I turned them into dot, and i recieved a paid bus ticket, all my pay owed via comcheck and they shipped all my stuff via Con-Way to my house all on their dime, so I hope they have to close up shop.

 

only UPS's lease trucks are white - the ones they leased to cover increased biz a few years ago -

the owned fleet are all brown...

 

What some folks don't take into account is that when an outfit like Jim Palmer hauls a load for a customer it may take between 30 to 60 days to get paid.
Now if you are also waiting that long to get reimbursed or paid for the fuel surcharge you can see how these outfits can run into problems paying for their fuel bill that usually has to be paid much sooner.
So many of these carriers that can't afford to bankroll their shippers for the extra cost of fuel will go the way of Jim Palmer.

 

Jim Palmer has filed chapter 11.The companies what can keep their fule costs in check and get the most mpg's out of their trucks will be the ones that stay in business.

 

That is correct.
But I see very few trucks that have slowed down hardly at all.
I sure don't see anybody running 57 mph or less, to get better fuel mileage.

 

I hope they do come out of the bankruptcy as a player. We don't need to loose more jobs then we already have...