Cliff's Announcement and Company Transition

Actually I think the board is past the point where terminating Cliff Beckham will save the company, and I believe this is the primary reason they have not took action. USA Truck does not have a war chest to get into a pricing war with the other carriers at this point, and this is made worse by the fact they are NOT servicing their debt. They blew off a large part of their market listening to Cliff Beckhams crap. After losing market share and with the other carriers having the money to undercut USA Truck I honestly don't see any breathing room. At this point I give the company maybe another 6 months to a year as a stand along company. This does not have to be bad news for the drivers, if I am right I am sure another better run company will buy them out.

 

Cliff is a short sighted CEO. I worked for USA truck for 3 years before I got fired. I won't go into that. The whole time I worked there I created a line that I always thought should appear on a trucking companies balance sheet appropriately called "The cost of not listening to the drivers." Considering we are the ones who are always out there with the equiptment everyday who do they think knows more about what is going on with it? Cliff knows very little about the trucking business. He came to USA strait out of college and has a degree in accounting. He has never pulled a load and I wouldn't be surprised if he never stepped foot inside a big truck. USA truck is hemorraging cash big time right now. Debt payments are obviosly counted as liabilities and so it is possible for a company to lose money for a while and report losses. One important thing I noticed about the recent report is USA debt and cash numbers assumingly didn't change. I find this to be very suspicious while they reported a loss over twice the amount that was projected. USA Truck is scraping their teeth to stay in business because of Cliff beckhams short sight. He is the cancer of that company. All he knows to do is look at a balance sheet.

 

Says on the website that he has a Class A.

 

If you want to believe everything you read on the website more power to you. If thats all it says though than I guess he has never pulled a load and has never experienced anything that his drivers go through otherwise Im sure it would say that on the website as well.

 

Love how everyone in here is a financial expert and knows exactly what's going on in the office.... Stick to steering wheel holding.

 

Lawrence showed him how to get into a truck.

 

I made an error with the sentence in bold. I waited till I had a chance to speak to someone whom knows about accounting to ask about credit covenants to make the correction. It was a mistake to say USA Truck is behind with their debt payments. What Cliff Beckham actually was saying is they are spending more money then they are taking in and borrowing from their credit line to make up the difference. This has caused their debt % to grow above 50% of their balance sheet. USA Truck is in serious trouble at this point. According to this person they will find it difficult to get any bank to allow this to go on for any length of time. USA Truck most likely will have to either reduce their money hemorrhage or do something about improving their income before any bank will take on USA Truck's credit. I guess only time will tell.

 

Just because you spend your time in the missionary position does not make you a missionary.

Love the financial experts here.......bunch of cats that got fired from USA

And I'm not trying to insult anyone. It's simply the facts. I've been reading and participating in this thread for a LONG LONG time. It still cracks me up

That could be true.....he can drive!

 

I too agree they should be selling service instead of "offering more competitive rates." Cutting prices isn't the answer, but you'll never get the bean counters who somehow manage to get hired at these companies with no transportation experience to understand that amazing concept.

 

Not so sure that usa truck can sell service.........