1. US, International, Regional and Contract Operations
Operational and Financial Full Year Operating Plan
2. Areas of Focus
Historical Financial Review
Financial Plan
Operational Initiatives
Manpower Analysis
Risks and Opportunities
Next Steps
3. Total Operations Financial Plan Total Revenue $419.2 $470.7
$51.5 12.3% Total Operating Exp. $389.4 $427.9 $29.5 9.9% EBIT
$29.7 $42.8 $13.1 44.0% Operating Ratio 92.90% 90.88% 2.0 FY 20XX
FY 20XX Variance
4. 5 Year Trend Revenue % Change NA 3.5% 4.1% 3.3% 12.3%
5. 5 Year Trend Operating Ratio Change NA 0.56 1.71 -.05
2.02
6. 5 Year Trend EBIT % Change NA 15.2% 36.8% 2.4% 45.1%
7. Performance Plan Revenue $33.6 M $5.0 M $ 8.7 M $51.5 M $6.4
M Business Segment 20xx Actual 20xx Actual 20xx Forecast 20xx
Growth England National $257.5 M $257.2 M $290.8M 13.1% England
Mexico $35.4 M $42.5 M $47.5M 11.8% England Regional $0.0 M $0.0 M
$8.7 M NA England Dedicated $113.1 M $119.5 M $123.8 M 3.6% Total
ENA Revenue $406.1 M $419.2 M $470.7 M 12.3%
8. Performance Plan Revenue per Truck $18,944 $22,423 NA
$13,163 -$2,965 Business Segment 20XX Actual 20XX Actual 20XX
Forecast 20XX Growth US Operations $151,762 $161,331 $180,275 11.7%
International Operations $201,470 $225,996 $248,419 9.9% Regional
Operations $0.0 $0.0 $163,414 NA Dedicated/Contract Operations
$188,743 $195,225 $192,260 -1.5% Total ENA Revenue $164,645
$175,044 $188,207 7.5%
9. Performance Plan EBIT $s/Operating Ratio Business Segment
20xx Actual 20xx Actual 20xx Forecast 20xx Growth US Operations
$15.9 M 93.84 OR $14.6 M 94.32 OR $24.1 M 91.73 OR 65.1%
International Operations $3.6 M 89.83 OR $5.8 M 86.40 OR $6.5 M
86.35 OR 12.1% Regional Operations $0.0 $0.0 $0.8 M 91.17 OR NA
Dedicated/Contract $9.6 M 91.55 OR $9.4 M 92.16 OR $11.6 M 90.63 OR
23.4% Total ENA Revenue $29.0 M 92.85 OR $29.7 M 92.90 OR $42.9 M
90.88 OR 44.4%
10. Revenue Growth Projections Annual Impact Variance (w/o RI)
2.8% ($2.9 M) 5.3% ($5.7M) 9.8% ($10.3M) 16.6% ($17.4M) 8.7% ($36.3
M) Variance (w/ RI) 6.3% ($6.5 M) 8.9% ($9.5M) 13.4% ($14.0M) 20.5%
($21.5M) 12.3% ($51.5 M)
21. Manpower Assessment All Operations Forecast 14.80
22. All Asset Operations 2 Year Compensation Trend
23. Next Steps
Continued Improvement financial plan refinement
Build plan by month and by quarter
Need to refine plan based on final department forecasts
Schedule Initiatives meeting
Develop Trailer execution strategy
Develop bonus administration plan
Start next year plan earlier target start September
24. Risk and Opportunities
Risks
Driver availability for projected 385 truck growth
Driver new hire cost meets for next year budget plan
Freight availability
Presidential elections in Mexico
Truck purchase patterns vary from plan assumptions
Opportunities
Profit improvement through technology solutions
Greater growth in Regional, Dedicated, and Mexico business
units as determined by market studies
25. Cost Containment Dedicated/Contract Carriage Total
Financial Impact $1,394,132 * Improvement is based on per truck
calculation includes 20xx truck growth plan ** Based on 20xx avg.
fuel cost of $2.27 per gal and idle time of 1 hour equal to .68 gal
Idle** $358,858 Operations Managers Retention $210,000 Direct
Manager Claims $123,810 Direct Manager Safety $61,879 Direct
Manager Motel $5,022 Operations Managers Trailer Washout (NET)
$5,986 Operations Managers Layover & Detention Net (Company and
Owner Operator) $2,401 Operations Managers Travel, Meals &
Entertainment $29,127 Operations Managers DT Management $148,374
Operations Managers Increase In House vs. Over the Road
Preventative Maintenance $166,315 Operations Managers In Sourcing
for Key Account Maintenance $282,360 Direct Managers Category
Financial Impact Manager(s)
26. Revenue Enhancers Dedicated/Contract Carriage Total
Financial Impact $1,361,240 Category Financial Impact Manager(s)
Maintenance Required Management $779,240 Operations Manager
Backhaul $312,000 Direct Manager IC Growth $270,000 Direct Manager
Trailer Management TBD Direct Manager
27. Cost Containment US Operations, International and Regional
Total Financial Impact $ 2,976,614 Fuel (Idle, Optimizer, Miles per
Gallon) $1,224,463 TJ Johnson Retention $720,000 Direct Manager
Safety $500,000 Direct Manager Trailer Management $298,151 Direct
Manager Cost Containment (misc categories) $120,000 Operations
Managers Deadhead $114,000 Direct Manager Category Financial Impact
Manager(s)
28. Revenue Enhancers US Operations, International and Regional
Total Financial Impact $30,597,222 Freight Profitability
$13,500,000 Dusty Jacobs Regional Business Unit $8,700,000 Direct
Manager Team Growth $4,406,815 Direct Manager Solo Production
$1,749,132 Direct Manager Market Dwell Time $1,500,000 Direct
Manager Independent Contractor Growth $800,000 Direct Manager Team
Growth $203,775 Direct Manager Category Financial Impact
Manager(s)
29. US, International, Regional and Dedicated Operating Units
Trailer Management
30. Reduction Plan
100 trailers in National
40 trailers in Mexico
10 trailers in Dedicated
Total of 150 Trailer Reduction from current balance of 3800
Trailers
31. Where are the Inactive Trailers?
32. US Operations Keys areas of Improvement
33. US Operations 100 Trailer Reduction Plan
Remove 90 spot trailers at customers
Require Customer Service to take an active role in trailer
management
Require Sales to support Trailer reduction plan
Replace 17 Dry-vans with Reefers in US Operations
34. International Operations 40 Trailer Reduction Plan
Reduce the amount of late trailers from Mexican carriers
Increase the amount of transfers at the border on Northbound
shipments (use Mexican Carriers reefers more often)
Increase the freight volumes into Mexico
Utilize newly developed Trailer Manager tracking program
35. Dedicated Operations 10 trailer Reduction Plan