- 165 -
companies. Black Hills Trucking’s assets fell into three
categories: Power equipment, trailer equipment, and
miscellaneous and office equipment. Power equipment included
trucks, tractors, cranes, forklifts, heavy construction
equipment, and small vehicles; trailer equipment included
flatbed, float, lowboy, tanker and dump trailers, and accessory
trailers such as jeeps, boosters, dollies, light trailers, a
barbeque pit, and other towed equipment; miscellaneous and office
equipment included computers, maintenance and shop equipment, and
furniture. The ages of the various types of equipment ranged
from 1 to 40 years.
During the period 1989 through 1993, revenues increased
slightly from $15.1 million to $16.8 million. Black Hills
Trucking suffered losses over the analyzed period that ranged
from a high of $6.1 million in 1990 to a low of $178,000 in 1992.
On average, the company annually deducted approximately $2.1
million of depreciation expense in computing its losses.
For the 6 months ending June 30, 1994, revenues increased
from $9.086 million (for 6 months ending June 30, 1993) to $9.436
million. Net losses for the period decreased from $2.628 million
in 1993 to $220,680 in 1994. However, management indicated that
the company’s outlook was bleak due to excess supply and
insufficient demand in the trucking industry.
Total net fixed assets (tax basis) drastically declined over
the period from $8.9 million in 1989 to $3.1 million in 1993 due
Page: Previous 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 NextLast modified: May 25, 2011