Although revenue increased $8.9 million in the second quarter compared to the same period of fiscal year 2000, Dick Simon Trucking reported a loss of $8.8 million. For the same quarter of 2000, Simon reported a gain of $77,917. The loss raised the company’s operating ratio to 113 for the three months ending March 31,2001, up from 99 for the second quarter of the previous year.
Dick Simon Trucking attributes the increase in revenue to a 28% increase in the number of tractors in the fleet as a result of the company’s acquisition of Westway Express and Gerard E Ort Trucking. The fleet grew to 2,192 tractors from 1,712 tractors in the second quarter of 2000. However, the larger fleet resulted in a lower average revenue per tractor per week. For the second quarter 2001, Simon averaged $2,285 per week compared to $2,471 per week the previous corresponding period. The company says that the lower average revenue is the result of lower freight volume and an increase in empty miles.
In addition to lower fleet utilization, Simon experienced higher labor costs as a result of an increase in driver wages as well an increase in maintenance and administrative personnel as a result of the Westway and Ort acquisitions. Fuel prices and fuel taxes were higher as well, with an increase of $2.3 million above the amount paid for fuel and taxes in the same quarter of 2000. Although most shippers pay a surcharge for higher fuel prices, Simon says that the surcharge does not offset the entire price burden.
