My numbers as an O/O leased to Crete

I'm starting this thread to show those who've asked, at other forums on this web site, how I'm doing as an O/O leased to Crete.

I've been leased to Crete since Aug. '06. Please keep in mind this is a thread based on my experience.

The numbers I post are taken from my CPA's correspondence to me. They are not fabricated or embelished. In the interest of time and space I will begin with my '07 YEAR END Financial Statement.

Below is my year end financial statement. Subtract $10k for taxes, and another $10k for maintainance escrow.


Re: Financial Statements ? Via Web

John, following you will find your December 2007 monthly financial statement.
The December numbers represent your final financial statement for 2007. They
should agree with Schedule C of your federal income tax return although there
may be some adjustment as additional income tax information is received.
In looking at the December financials, you are showing a Net Profit of $74,087 for
the year-to-date period. This comes out to $0.491 cents per mile and is based
on 151,027 paid miles. High productivity and strong cost control led to an
excellent year. Congratulations!

You averaged 12,586 paid miles per month this year compared with 12,006
monthly miles you averaged last year. You were out on the road 333 days
through the end of December 2007 (91% in service) and averaged 454 miles for
each day you were out.

Your maintenance expense for 2007 was $4,153 or $0.028 cpm and your tractor
supplies expense was $1,724 or $0.011 cpm. Together your variable tractor
expenses end the year a little less than expectations.

Fuel costs averaged $0.428 cpm less fuel surcharge reimbursements of $0.272.
This results in a net fuel cost of $0.156 which is an excellent fuel cost.

Your tractor depreciation expense for 2007 was $18,558 or $0.123 cpm. 2007
was the second year of a four year depreciation schedule for your tractor.

 

John, following you will find your January 2008 monthly financial statement.
In looking at the January financials, you are showing a Net Profit of $5,734 for
the year-to-date period. This comes out to $0.396 cents per mile and is based
on 14,494 paid miles.​

You are averaging 14,494 paid miles per month this year compared with 12,586
monthly miles you averaged last year. You were out on the road 31 days
through the end of January 2008 (100% in service) and averaged 468 miles for
each day you were out.​

Your maintenance expense for the first month of 2008 was $1,015 or $0.070 cpm
and your tractor supplies expense was $67 or $0.005 cpm. Your maintenance
expense includes tire costs of $698. Although reasonable your variable tractor
expenses start the year $0.036 cpm higher than your 2007 costs.​

Fuel costs averaged $0.519 cpm less fuel surcharge reimbursements of $0.341,
resulting in a net fuel cost of $0.178.​

Must admit the NET is not as much as I would like for it to be since I still must deduct taxes. ( Apprx. $800)​

​

 

John, following you will find your March 2008 monthly financial statement.
In looking at the March financials, you are showing a Net Profit of $14,407 for the
year-to-date period. This comes out to $0.383 cents per mile and is based on
37,644 paid miles. You are averaging 12,548 paid miles per month this year
compared with 12,586 monthly miles you averaged last year. You were out on
the road 85 days through the end of March 2008 (93% in service) and averaged
443 miles for each day you were out.
Your maintenance expense for the first three months of 2008 was $1,623 or
$0.043 cpm and your tractor supplies expense was $158 or $0.004 cpm.
Together your variable tractor expenses continue right in line with expectations.
Fuel costs averaged $0.533 cpm less fuel surcharge reimbursements of $0.352.
This results in a net fuel cost of $0.181 which is remains a good fuel cost.

The FSC for March was an avg. of 0.352. For the week of April 28-May 5 it was 0.51. Our FSC adjusts weekly per the DOE's weekly national avg..
I changed over to the sliding pay scale the begining of April and preliminarily am showing a 0.03 increase per mile revenue. However, I must now pay for the base plate and Q-comm use. Plates are deducted at $44 p/w, and Q-comm is deducted at $40 p/m. This translates into approx. a 0.015 p/m expense giving a net increase of approx. 0.015 p/m. I will only pay the base plate for one year, then the company pays for it. At that point my net cents p/m mile will increase to 0.027.

My net profit is actually a little low compaired to last year. The reason is that I've had to use some of my maint. escrow to pay for steer tires, overhead, egr replacement, 2 quarter fender replacements, 1 blown drive tire (replaced with a used tire to match tread depth of others), and an oil change at time overhead was done. Since these repairs are deducted from the months income it reflects a lower profit margin. However, I am still taking home the same amoumt as last year, since I pay my self a salary each week. My maint. account retains about $12k (taxes already paid on this amount, so what I don't use I will eventually get to keep), and will countinue to increase as long as I don't have any major repairs. I use a separate trk account for minor repairs ( oil changes & misc.)and taxes. It has approx. $500 thanks to Uncle Sam and quarterly taxes. I paid $2700 for 1st quarter taxes, oooouch!

Conclusion after 1.5yrs as O/O....Not any better than a company driver with same company, and, if I didn't have health insurance through the wife's job, I'd have none.

However, I still prefer O/O vs. company driver. It is now time for me to evaluate other opportunities to increase revenue and decrease miles. I'm not a flatbeder, bedbugger, or car hauler. So I've looked at some reffer companies and found only Cargill to possibly offer what I'm looking for.

The problem with most companies that can offer a higher gross is that they do not have good, if any, discount programs to offer their O/O's. So even though I can groos more I won't net more, and some places it will even be less.

I did my homework before leasing my trk to Crete and am not unhappy with my decision. Especially after having had many opportunities to talk with other O/O's at other companies. Compairatively speaking, Crete is as good, if not better, than ALL the others in the dry van segment of the industry. Honestly, if I could squeez another 0.10cpm out of them, I would not even consider leaving. Unfourtunately, it is a tough time for all carriers in the dry van segment, and they are not getting any rate increases from our customers, and so we wont see any either.

​

 

Re: Financial Statements – Via Web

John, following you will find your February 2008 monthly financial statement.
In looking at the February financials, you are showing a Net Profit of $10,591 for
the year-to-date period. This comes out to $0.390 cents per mile and is based
on 27,125 paid miles. You are averaging 13,563 paid miles per month this year
compared with 12,586 monthly miles you averaged last year. You were out on
the road 57 days through the end of February 2008 (95% in service) and
averaged 476 miles for each day you were out.

Your maintenance expense for the first two months of 2008 was $1,306 or
$0.048 cpm and your tractor supplies expense was $117 or $0.004 cpm.
Together your variable tractor expenses are right in line with expectations. Fuel
costs averaged $0.526 cpm less fuel surcharge reimbursements of $0.338. This​

results in a net fuel cost of $0.188 which is a good fuel cost.

 

Re: Financial Statements – Via Web

John, following you will find your April 2007 monthly financial statement.
In looking at the April financials, you are showing a Net Profit of $22,226 for the
year-to-date period. This comes out to $0.467 cents per mile and is based on
47,557 paid miles. You are averaging 11,889 paid miles per month this year
compared with 12,006 monthly miles you averaged last year. You were out on
the road 112 days through the end of April 2007 (93% in service) and averaged
425 miles for each day you were out.

You received detention pay totaling $189 during the month. This additional pay
added $0.0168 cpm to your net profit for the month.

Your maintenance expense for the first four months of 2007 was $1,058 or
$0.022 cpm and your tractor supplies expense was $ 938 or $0.020 cpm.
Together your variable tractor expenses are in line with expectations.

Fuel costs averaged $0.399 cpm less fuel surcharge reimbursements of $0.229.​

This results in a net fuel cost of $0.170 which is a very good fuel cost.

 

Re: Financial Statements – Via Web

John, following you will find your May 2007 monthly financial statement.
In looking at the May financials, you are showing a Net Profit of $28,824 for the
year-to-date period. This comes out to $0.470 cents per mile and is based on
61,330 paid miles.
You are averaging 12,266 paid miles per month this year compared with 12,006
monthly miles you averaged last year. You were out on the road 140 days
through the end of May 2007 (93% in service) and averaged 438 miles for each
day you were out.

Your maintenance expense for the first five months of 2007 was $1,198 or
$0.020 cpm and your tractor supplies expense was $ 986 or $0.016 cpm.
Together your variable tractor expenses are a little less than expectations.

Fuel costs averaged $0.416 cpm less fuel surcharge reimbursements of $0.235.​

This results in a net fuel cost of $0.181 which remains a good fuel cost

 

Re: Financial Statements – Via Web

John, following you will find your June 2007 monthly financial statement.
In looking at the June financials, you are showing a Net Profit of $36,480 for the
year-to-date period. This comes out to $0.488 cents per mile and is based on
74,790 paid miles. Strong productivity combined with low fuel and maintenance
costs have contributed to your high net profit for the first half of 2007.
You are averaging 12,465 paid miles per month this year compared with 12,006
monthly miles you averaged last year. You were out on the road 167 days
through the end of June 2007 (92% in service) and averaged 448 miles for each
day you were out.

Your maintenance expense for the first six months of 2007 was $1,721 or $0.023
cpm and your tractor supplies expense was $1,026 or $0.014 cpm. Together
your variable tractor expenses are a little less than expectations.

Fuel costs averaged $0.408 cpm less fuel surcharge reimbursements of $0.242.​

This results in a net fuel cost of $0.166 which is an excellent fuel cost.

 

John, following you will find your July 2008 monthly financial statement.

In looking at the July financials, you are showing a Net Profit of $36,331 for the year-to-date period. This comes out to $0.409 cents per mile and is based on 88,937 paid miles. You are averaging 12,705 paid miles per month this year compared with 12,586 monthly miles you averaged last year. You were out on the road 193 days through the end of July 2008 (91% in service) and averaged 461 miles for each day you were out.

Your maintenance expense for the first seven months of 2008 was $5,420 or $0.061 cpm and your tractor supplies expense was $250 or $0.003 cpm.
Together your variable tractor expenses are right in line with expectations.

Fuel costs averaged $0.594 cpm less fuel surcharge reimbursements of $0.446. This results in a net fuel cost of $0.148 which continues to be an excellent net fuel cost.

Federal Highway Use Tax deductions totaling $550 were taken in July.

That's all for tonight.