Sni IPO profile.

my recruiter told me 3 years ago, that if Schneider had their way, everybody would be a lease operator. Makes sense...... make the boys in the field find their own freight and bank 35++% for doing nothing. The trucking business is getting harder and harder and if you're not paying attention, you'll be in the ditch.

 

They're not getting 35% if you find your own freight. Hell I think the 20% F2F takes is a ripoff.

 

getting drivers to move around empty trailers for next to nothin, then get those trailers loaded and move them for a buck a mile sounds like a good way to increase profits. not paying company drivers all miles probably doesnt hurt either

 

Don't forget that you don't get detention for the first 6 hours. I believe that they charge the customer before that, but don't pay IC's till after hour 6. Rather worthless in most cases.

 

I am hoping for the best, at least until 2022, at which point I will be forced to evaluate how to move forward if I still around here.

That said, I am very concerned about the debt. This much debt smells like massive upper management mistakes, especially for a company that has been around this long.

An IPO may bail them out in the short term, but it will also cut heavily into their future profits. If they managed to build up this kind of debt pre-IPO, what changes are they making to be more profitable in the future?

This company has been downsizing in staff, which we have all felt the negative effects from. Seems as though they have also been downsizing over time in land, as drop yards and terminals have shut down. Seeing these debt numbers explains why we have been experiencing these cuts, as well as the nickel and diming of us via free trailer moves and such.

A company that has been around for a long time, Graebel, just announced they are shutting the doors and trying to organize with those they owe money to. Beginning to wonder if Schneider won't be facing this in the not so distant future.

 

Over the years, I have seen some companies that seemed to be pretty well established go under. Not saying that Schneider is having such troubles. I have no idea. Just saying it can happen. As far as making a move. If I am going to have to do it in the future because my truck is not acceptable, I'd rather not wait till the last minute. There is no guarantee that they won't change their minds again. Pretty unstable environment to try to work in imo. I don't like to switch carriers, but I've waited too long in the past and regretted it. Not a great situation, that's for sure.

 

It can't help to have hundreds of turned in lease trucks sitting around.

At what point do they realize you can't expect drivers with virtually no experience or industry knowledge to be able to run a truck?

There's a reason no bank would finance a brand new truck for a driver with 6 months experience.

 

That's the problem, Schneider is trying to play Bank, Broker,Agent,Dispatcher,Boss,Insurance Rep....etc

 

And trying to be ok at everything but excellent in nothing = bankruptcy, in today's economy.

 

Rule number 1 -- follow the money.

This ipo is not just an ipo, it's a combination offering. Where is the money going?

Of the 29 millionish shares offered the sales proceeds of 17 millionish shares go to sni. The proceeds of the other 12 millionish shares go to insiders selling their restricted shares. So, directly to the hands of executives and insiders and zero benefit to sni.

I don't see this as sni needing the money but more of insiders wanting their pot of gold. The side benefit is sni gets to pay off interest bearing loans with free money and by issuing "b" shares maintains their status as a fully controlled company.

Also notice in the intended uses of the proceeds is "acquisitions". May be a little shopping fest in the future.

TA