Huffman Trucking Statement Of Income Unaudited December 31

Huffman Truckingstatement Of Incomeunauditeddecember 31st20112010in

Huffman Trucking's unaudited financial statements for the year ending December 31, 2011, provide a comprehensive overview of the company's financial performance and position. The income statement reveals revenue growth from $969.24 million in 2010 to $1,109.3 million in 2011, indicating an expansion in business operations. Operating expenses increased from $880.04 million to $1,014.78 million, reflecting higher costs associated with salaries, fuel, supplies, and other operating activities. The net income rose from $55.51 million to $59.17 million, demonstrating improved profitability despite rising expenses. The balance sheet, also unaudited, shows assets totaling $267.27 million in 2011, up from $255.33 million in 2010, with notable increases in carrier operating property, cash and cash equivalents, and goodwill. Liabilities remained relatively stable, with current liabilities at approximately $90.28 million, and long-term liabilities increasing marginally to about $71.37 million. Shareholders' equity grew from $100.66 million to $105.62 million, driven by retained earnings growth. These financials suggest Huffman Trucking experienced growth in revenue, assets, and profitability, reflecting positive operational trends in the trucking industry during this period.

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Introduction

Huffman Trucking's unaudited financial statements for the fiscal year ending December 31, 2011, reveal significant insights into the company's financial health, operational performance, and growth trajectory. Analyzing these statements offers a comprehensive understanding of how the company managed its revenue streams, controlled expenses, and balanced its asset and liability structure within a competitive industry. This paper examines the key financial metrics presented in the income statement and balance sheet, discusses the implications of these numbers for stakeholders, and evaluates the company's financial stability and future outlook based on available data.

Analysis of Income Statement

The income statement indicates Huffman Trucking's revenue increased by approximately 14.4% from $969.24 million in 2010 to $1,109.3 million in 2011. This growth reflects an enhanced market presence, possibly driven by increased freight volumes, improved operational efficiency, or strategic expansion. Operating expenses also rose substantially, with total operating costs escalating from about $880.04 million to $1,014.78 million, representing a 15.3% increase. Notably, salaries, wages, and benefits had a significant rise, suggesting either hiring growth or wage rate increases.

Fuel expense, a major component at approximately $319 million in 2011, underscores the sensitivity of trucking companies to fuel prices. Despite these rising costs, operating income from continuing operations increased modestly from $89.2 million to $94.52 million, indicating effective cost management strategies or favorable pricing power. The net income rose from $55.51 million in 2010 to $59.17 million in 2011, demonstrating overall profitability improvement, even after accounting for interest and tax expenses.

The financial data imply that Huffman Trucking effectively managed its core operations during a period of increased operational costs, resulting in a better bottom line. The maintenance of operating income margins, despite rising expenses, underscores managerial efficiency and strategic operational control.

Balance Sheet Overview

The balance sheet contextualizes the income statement trends by illustrating changes in assets, liabilities, and shareholders’ equity. Total assets increased from $255.33 million in 2010 to approximately $267.27 million in 2011, reflecting asset growth aligned with revenue expansion. Notably, carrier operating property increased by about 4.66 million, indicating continued investment in fleet and equipment necessary for operational capacity.

Cash and cash equivalents saw a significant increase of roughly $31.66 million, boosting liquidity and providing the company with greater flexibility to meet short-term obligations or invest in growth opportunities. Accounts receivable remained relatively stable, suggesting consistent collection processes and reliable revenue streams.

Goodwill, a non-physical asset representing brand value, customer relationships, or acquisition premiums, increased from approximately $49.85 million to an unspecified higher amount, signifying potential acquisitions or strategic investments. Other assets also saw growth, indicating diversified asset management.

Liabilities remained relatively stable, with current liabilities near $90.28 million and long-term liabilities about $71.37 million in 2011. The marginal increase indicates prudent debt management and maintained financial stability. Shareholders’ equity grew from $100.66 million to $105.62 million, largely through retained earnings, reflecting profitability reinvested into the company.

Financial Ratios and Performance Metrics

Evaluating Huffman Trucking’s financial ratios reveals stability and operational efficiency. The current ratio, reflecting liquidity, is roughly 1.63 (current assets of $147.8 million divided by current liabilities of $90.28 million), indicating a solid liquidity position to meet short-term obligations. The debt-to-equity ratio, roughly 0.68 ($71.37 million long-term liabilities divided by $105.62 million equity), suggests the company employs moderate leverage, balancing debt and equity financing to fuel growth while maintaining financial stability.

Profitability margins also improved marginally; the net profit margin increased to approximately 5.34% in 2011 from 5.73% in 2010, illustrating maintained profitability amid rising costs. Return on assets (ROA) and return on equity (ROE), vital for assessing asset utilization and shareholder value, likely improved slightly, considering increased net income and asset base.

Implications for Stakeholders and Future Outlook

The financial data suggest Huffman Trucking is on a growth trajectory, evidenced by revenue increase, asset expansion, and retained earnings. The company's ability to manage rising operational costs, especially fuel, and to increase net income signals effective operational strategies and a competitive position within the trucking industry.

Stakeholders, including investors, creditors, and management, would interpret these results as positive indicators of financial stability and growth potential. The moderate leverage provides flexibility for future investments or expansion initiatives without excessive financial risk. The increase in liquidity and asset base positions Huffman Trucking well for potential market fluctuations or economic downturns.

Looking forward, maintaining cost efficiency, especially controlling fuel and maintenance expenses in a volatile fuel-price environment, will be crucial. Strategic investments in fleet modernization and technology could further enhance operational efficiency and profitability. The stability in liabilities coupled with asset growth indicates prudent financial management that bodes well for sustainable growth.

Conclusion

Huffman Trucking’s unaudited financial statements for 2011 depict a company experiencing steady growth in revenue, assets, and profitability. Despite rising operational costs, the company maintained healthy profit margins and improved liquidity. Its balanced approach to leveraging debt and reinvesting earnings underscores sound financial management. As the transportation industry faces ongoing challenges such as fluctuating fuel prices, regulatory changes, and market competition, Huffman Trucking's financial resilience and strategic positioning provide a solid foundation for continued success and expansion in the coming years.

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