TSX:STB.DB.A - Post by User
Comment by
BlueCollar51on Sep 22, 2015 1:55pm
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Post# 24125745
RE:Spreadsheet on 6 yrs leasing + 6 yrs buying out leases
RE:Spreadsheet on 6 yrs leasing + 6 yrs buying out leasesThe formatting did not work well.
To my untrained mind it would seem that if they continue to grow and Lease a few more New Busses each year than they did the previous year the Leased Fleet Rotation c/w the associated Tax write offs will take care of itself.
In a Perfect World each year they would Lease 1000 New Busses, 1000 Busses would come off Lease and 1000 12 yr. old busses would be retired. As we know the World is Not Perfect.
The reality is that the purchase cost of a buss is the entry fee. The amortised yearly capital cost of a $70k buss that is used for 12 years is abt. $5.8k a year. The yearly operating cost (insurance, overhead, fuel, maintenance, repairs, down time, drivers wages etc.) is several multiples of that and always seems to increase over time.
How well a company manages the Operating Costs is what separates the winners from the losers and Student Transportation appears to do a good job in that respect.
Of all the issues I have with Student Transportation this one doesn’t register. It’s basically a non-issue. Operationally they do a good job and they manage their fleet well.
As Always; Do Your Own Due Diligence; It’s Your Money !!