Cliff's Announcement and Company Transition

Most of USA Trucks debt is coming from their equipment purchases. I would imagine if a company were to buy USA Truck they would pay off this debt and take a loss on their taxes for that tax year. USA Truck at it's heart is still a good company, it's just being run by an idiot with his sycophants on the board. If a company were to buy USA Truck and run these idiots off, I feel with some good management in place the good people there would make it a good financially sound company once again.

 

A lot of it may be from equiptment purchases. Makes plenty of sense. They have not bought a "lot" of new trucks since they were sued by international for the lot of prostars they have. The longer it takes for USA truck to admit failure the older their fleet becomes. With every week and more miles added to their fleet the less likely your scenario is to play out. They most likely do not have a single truck these days with under 100 g miles on it. Then you have to put the depreciated value of the equiptment against what is owed. Its just numbers. If you a company still thinks it would be cheaper to pay off USA debt to obtain this equiptment then to go out and purchase the trucks themselves. I say go for it. Im just guessing that USA truck is probably upside down on their equiptment. No company would be making a wise choice to take on debt that is more than the value of the asset they are getting. You are right that with the right management USA truck "COULD HAVE" been a top company. There are more than a few tweaks and adjusting needed for this company. Major changes are needed. First is the debt needs to go. Then someone with some money to play with needs to have the patience and funds to wage a pricing war to win back customers and drivers. Those are major changes. Your looking at least half a billion dollars would be needed to really usher this company a chance of acheiving greatness in trucking.

 

At this point I would be very surprised if USA Truck gets any increased financing. I don't know where the company can cut expenses either. I have a good idea a lot of people who have invested in that company will soon find their stock near worthless soon. I find it remarkable that Cliff Beckham has any creditability left. As far as I know USA Truck is the only OTR carrier to lose money like this. The other OTR carriers are making money and have the same problems USA Truck blames on their loses. I am sure banks see this as well. I think September and October will tell. I suspect another bad quarter and their current lender will cut their loses and start to foreclose on them. If a buyer don't come forward soon I suspect USA Truck will have to file for bankruptcy, if this happens another company like Celadon might succeed in a hostile takeover for pennies on the dollar. It's the shareholders that will lose if this happens. It's also a shame Cliff Beckham can't be held criminally responsible.

 

Hey believe it or not USA and Cliff have done their job putting their struggles on the table for all to see. If anyone is long on their stock its their own fault for losing money. They have said they are not compliant and do not see themselves coming compliant in the next quarter. You are right though they aren't the only trucking outfit having these issues but the other companies are making money despite.

 

I have not noticed any lost accounts and my miles have been up alot the last six weeks

 

Well I'm not jumping ship, but I am preparing for the worst and checking out other companies before 2k other drivers are all looking at the same time. I'm really thinking hard about TMC. I don't know what the future holds. We can hope all turns around for the company but I have to look long term. If this company's future is that uncertain, then it's time to pray for the best but prepare for the worst. I heard there was a meeting about the article posted in here at VB, and everyone was told not to worry that all was going to be ok, that the company had enough money right now for a month and things looked good after that. I'm sorry but that tells me more than any article or memo. The last thing USA needs is for drivers to go run for the hills because that will certainly be their demise. Just keep all your options open and some bus fare or rental car money where u can get it. Be safe and good luck to everyone

 

I agree up to a point. I would not (jump ship) at this point. Just make sure you are aware of the situation and try to keep enough money on you to get home, and have a plan B job wise in mind. I would however be careful about statements coming from management right now. These are the very people that got the company in it's current mess and I would take their statements with some caution. The main event that forced Arrow into bankruptcy was their lenders refused to extend them any more credit and their drivers were left stranded. Do the math lets say there are 1200 drivers needing fare home and the avg fare is $100. This is $120,000 and its a conservative estimate. If the company gets denied further credit do you honestly think they will have the money to get you home, much less fill the tanks. As soon as comdata discovers this THEY will cut the cards off. I honestly believe the current management would have no compunction whatsoever in telling all the employees drivers and none drivers alike all is well right up to the bitter end.

I edited this post to add something else. If any of you current drivers have large sums of money on your comdata cards I would advise you to be very careful. I am not 100% sure but if the worse were to happen you might lose this money once comdata turns the cards off. I might be wrong, but would you want to risk me being right? Just be careful, and lets all hope USA Truck stays in business and gets through this tough time.

 

So you heard they said in the meeting that they had enough money for a month and things looked good after that. USA drivers might be needing that bus money soon. If things looked good after that than why would they say they had enough money for a month? Its nothing but one bad sign after another for this company. Your smart to not jump ship though. Stick it out till they close down then you will have your best foot forward with another company.

 

Your correct a trucking company especially will tell all employees that all is good 5 minutes before they annouce shutting down.

 

Did anyone hear of the new home time policy? I was at w Memphis and saw a memo that 4 days is the most u can take anymore