It would seem that there is a lot to excited about. A year ago under Cliff they lost 47 cps. Now they just lost 24 cents per share. Though my point of view may be negative I see it like this. 2012 was a throw away year for USA truck. They lost almost twice what analysts expected them to lose every quarter. This was to blame on Cliff who kept implementing things that didn't work and alienated customers. Think of it like building a house. You build a good foundation and then you get to thinking you can build a house that is too big for the foundation to hold. Cliff most likely came in with a good foundation for a successful trucking outfit but he went to work on a house that was too big for that foundation. Instead of laying more foundation he just wanted to build more house. Then it came crumbling down in 2012. Now that John Simone is CEO we are back to where Cliff was in 2011 before the disastrous 2012. Will it continue to go backward from here? Who knows. The credit line is dwindling still. They have less available now than they did last quarter. A loss is a loss it doesn't matter how you slice it. The stock price today is speculative. Eventually they will not have anymore available credit. Do they find another bank to finance their balance sheet? Maybe so. However more debt means bigger debt payments. Those debt payments lead to more losses. A small uptick in revenue like they had this quarter is not much to bank on. A 20% or even 10% increase in revenue may get investors excited. Increased revs is the only thing that will save USA in the long run. Otherwise they will just get by by the skin of their teeth every quarter until no one will finance them. I could be wrong. Mr Simone could be the night in shining armor they have been waiting for.
Anyone excited about the earnings report?
Discussion in 'USA Truck' started by jtannillo, May 6, 2013.
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Your views are all fine and dandy, if you were talking about a trucking company that was just starting up, or only 4 or 5 years in operation. This is USA trucking, which has been around long enough that all these financial problems should never have come about. Don't try to candy-coat the story, talking about buildings and foundations. Think about it as a human body that has cancer, and instead of killing the cancer, they just cut off a hand, hoping the hand was where the cancer was coming from.
USA has a business model that depends heavily on finding drivers willing to drive for dirt wages, and customers who don't mind ill equipped drivers, both in experience and the equipment they operate. After a while, the poor service given to the customers requires cutting rates even deeper, to make the customers tolerate the situation. When the cut-throat rates can't support the house of cards that has been built, that house of cards will come falling down.123456 and Woopigsooie Thank this. -
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....Yada, yada, yada. Hoo, hummm. Nothing to get excited about. But it does look better than it could have been. It takes awhile to stop a truck without brakes, and it looks like they are at least rubbing the curb and dragging their feet. Hopefully the reverse thrusters will deploy in time.
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I'm treated okay. Miles are good, pay is good. The grass is not always greener on the other side of the fence and you must decide which battles are worth fighting and which are not whereever you go. When the time comes that I'm fighting too many battles then I will go elsewhere also. But you won't find me bashing the company I left because I've got better things to do. -
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Thats a bold statement that you make more money than him, how would you have any clue what he makes weekly or yearly?? Post your year to date check stub on here and black out your personal info to back your claim of making more money
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