Fourth Quarter Results

This post details the results of my fourth full quarter of driving as a lease-purchase operator for Hill Bros out of Omaha, Nebraska.

As I've stated in my other quarterly results posts, these numbers are unique to me. I operate in a very strict manner emphasizing safety and efficiency to an extent few other drivers seem to bother with. You might be reading these posts and fantasizing about how much money you could make if you were doing this job -- just be aware you won't get these kind of numbers driving the way most drivers do.

I was surprised to learn that, over the first four months of this calender year, my net income was only surpassed by one other lease-purchase driver at our company. Many of the others drive more than I do, and almost all of them certainly work harder than I do, yet they don't seem to earn as much net pay. Go figure.

My goals for this quarter were as follows:

First, cut my Out of Route figure down to 6-8%. I missed here, going from 9.17 in the third quarter to 8.84 in the fourth. OOR miles can be a bitch is my conclusion.

Second, I wanted to reverse the decline in my average weekly paid miles by adding 200-300 miles per week to the 2,416 I logged in the third quarter. I hit this mark despite one week where I took four days off (and received my only zero paycheck week since the first weeks of my lease when I was paying down my escrows) by averaging 2,665 paid miles, an increase of 249.

Third, I boosted my goal for net weekly pay (pay to my bank account after taking care of all truck-related expenses) to 1,500. I just missed here, earning an average of 1,434 in net pay each week (totaling 18,644 over the quarter).

In short, I beat one of my goals and came close on the other two, and made a few bucks in the process.

My total miles run this quarter were 37,710, out of which 34,648 were paid either loaded or unloaded (deadhead), leaving an Out Of Route percent of 8.84%. These are the highest quarterly mileage numbers for me yet, and my second best OOR percent.

My fuel expense rose somewhat to 10,748 paid out at the pump, after reflecting our company discount. My truck received 5,689 in fuel surcharge money for the miles I ran, also slightly higher than last quarter. This left my out-of-pocket fuel expense at 5,059, the highest yet. This reflects on the number of miles I ran being slightly higher and the FSC bottoming out this spring.

Taking my adjusted fuel expense and dividing it by the total number of miles I ran results in a 13.42 cent per mile fuel charge for the truck, easily the highest yet.

As I mentioned above, my average miles per week climbed to an all-time high of 2,665.

Somewhat surprisingly, despite having driven an average of 249 miles more per week for the entire quarter, I still netted 12 dollars less per paycheck than the previous quarter! Why? The fuel surcharge was lower mainly, though I am also owed about 750 in bonus pay and a lumper reimbursement that will be reflected next quarter.

Revenue per mile has hopefully hit bottom at just 1.08 per mile. Compare with 1.49 in the first quarter when the FSC was a lovely 50-60 cents per mile.

NET PAY BY WEEK

40: 1573
41: 2117
42: 575
43: 1339
44: 2008
45: 1328
46: 1438
47: 1779
48: 1248
49: 2304
50: 0
51: 1741
52: 1194

As you can see, I had my first "zero pay" week in week 50 (three of my first five weeks had zero net pay but large payments towards my escrows; three other weeks in the second quarter were also no net pay but had large amounts set aside going into my maintenance account to max it out). There was actually a 26 dollar balance but there is a minimum amount you must earn for them to cut you a check or make a direct deposit, so it was added to my next settlement.

This results post will be followed by a fiscal year-end post with additional details and goals for my second year as a lease-purchase operator.

If you watch just one YouTube video this week, watch this

Numbers, numbers

These are some of the numbers I've worked up for my first year as a lease-purchase operator. I'm still working out some of the kinks in my spreadsheets so they may change a little here or there as I refine things.

A separate fourth quarter results post and fiscal year-end post should follow eventually.

144,573 total miles driven
133,303 total paid miles
8.45% out of route miles

2,564 average miles driven per week

$58,932 fuel expense
$41,970 FSC reimbursement
$16,962 Adjusted Fuel expense
11.73 cents per mile fuel expense

$168,511 total revenue paid to truck
$1.26 gross pay per paid mile to truck

$3,241 average gross pay to truck per week
$1,154 average net pay per week (excluding escrows)

$60,018 net pay
$7,771 extra pay deposited to my savings escrow account
$67,789 total net pay

Pevely, believe it or not

View Larger Map

While you were most likely in bed this morning at 0400, I was having the last of my load of Banquet TV dinners plucked out of the back of my trailer in Goodlettsville, Tennessee. The lumpers were quick and cheap for a change ($40 for the load) and I got out of there as soon as I could to my next assignment.

Off to Horn Lake, Mississippi to the oddly-named Newlywed Corporation to pick up a load of spices and sauce for the ConAgra folks in Macon, Missouri. A number of other Hill Bros trucks were arriving and departing while I spent my time there, and I'm sure their loads were a day late like mine. Since I had to deadhead in from Nashville my hours won't quite stretch to the destination tonight, so its off first thing in the morning tomorrow to finish the run.

I end tonight in Pevely, Missouri which is a smidge north of Festus, Missouri. No joke on either count.

Tonight is also the cutoff day for the 52nd week in my lease-purchase. My truck has about 145,900 miles on it and during the past year I picked up and delivered (or t-called) right around 200 loads. The average deadhead miles for these loads, as of last week, was 93 and the average loaded miles was 577. I will receive my 52nd settlement report on Friday so sometime next week expect the first of a series of posts covering all the numbers, pay, mileage and assorted goodies.

"I'm hooked on Quack!"

(Bumper sticker I saw on a car as I was heading down the road today. Apparently the owner is a duck hunter)

Slow going

I actually got cussed out this morning after I unloaded in Kansas City. I was parked down the block from the consignee, where I had parked earlier for an hour or so waiting to be called to the dock, when this pickup truck rolls up and an agitated redneck type jumps out.

"Move your damn truck out of here!" he cried.

After a bit of back-and-forth it turns out the street I was parked on was an unmarked private drive for a company at the end, and they didn't like big rigs parked anywhere on their street. Even if we were blocking nothing but the sun.

"Move or I'll have you towed!" he shouted. Upon asking how he planned on doing that with his piddly 4-wheeler he whipped out his cell phone and shouted the name of some (probably fictitious) towing company.

"Hard to believe they would come out to tow a truck from a public street on your say-so, pal."

Anyway, he huffed and puffed and shouted at me to get my effing truck out of there. I briefly considered getting out and tooling him up but I had my fill of morning entertainment and went my way.

Plus, I had just received instructions for my next load: the typical hop over to Independence, Missouri to pick up a load from the underground storage place there to bring down to ConAgra in Russellville, Arkansas.

Along the way, more news: after I drop off that load, I can pick up a new one down the street in Russellville and take it 418 miles east to Goodlettsville, Tennessee. I hadn't heard of the town before, but it is near Nashville, which I gathered from the distance given.

Unfortunately, that load doesn't deliver until Wednesday morning at 0400 so today and tomorrow will be more slow going. Only one load in the past week has been for more than 500 miles (two if you count the long deadhead to the load from Seward) and these little dinky ones get old after a while.

General Mufflers

By interesting coincidence, the load of auto parts I'm delivering in Kansas City this morning is for General Motors. Specialized racks with full exhaust systems sit in the trailer, enough for 40 cars or trucks (they are kind of long and unwieldy).

The original appointment time was 1300 but a little birdie at the broker's office told me they start taking deliveries around 0600. I showed up around 0545 and there was a trailer in the door already, so here I wait.