Celadon on the ropes...

Discussion in 'Celadon' started by double yellow, May 3, 2017.

  1. laaylor

    laaylor Medium Load Member

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    They expanded so much thinking Quality was going to be the big focus: then they realized: nope: too much loss involved with quality: so they sold it off.. that’s the only reason there is that feel in our huge home office. The previous mgnt had future plans for 11000 trucks! That was crazy!
     
    double yellow Thanks this.
  2. laaylor

    laaylor Medium Load Member

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    Oct 16, 2007
    Creston, Wa
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  3. drvrtech77

    drvrtech77 Road Train Member

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    Probably the smartest move they could have made... They should have never made quality part of the trucking company side at all...
     
    Bean Jr. and laaylor Thank this.
  4. laaylor

    laaylor Medium Load Member

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    I agree... those of us who have been here as drivers thru all of this could only shake our heads and hope for the best... I feel really good about the direction we are now going.. at least as far as I can tell... but, who knows??? Lol
     
    Chinatown and dancecanyon Thank this.
  5. double yellow

    double yellow Road Train Member

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    Looks like I might lose out on my Celadon stake.

    Celadon was just delisted from the NYSE after the ceo announced he would not have financials ready 1 year after not having financials ready. Worse, they are going back even further in time to restate old filings at least as far back as 2014, but possibly farther. From 2014-2016 they estimate they overstated earnings by $250 million (they reported only $93 million income during that time, meaning they really lost $157 million). And Celadon still don't know when they'll be able to file the required statements.

    The lenders appear fed up. BofA and Wells Fargo gave Celadon only a 1-month extension of credit and are requiring partial ownership in order to lend more. Additionally, they are charging massive fees and want those fees paid monthly, not quarterly like is typical for big business. Lenders must also be consulted before disposing of any asset worth more than $50,000 (which might mean each and every truck).

    On top of that the CEO reports that Celadon is still losing money despite the best trucking market in recent history. Here is a quote from the ceo:

    "While the improvement in operating metrics is encouraging, we have been incurring significant operational costs associated with shrinking our fleet, repositioning equipment, recruiting drivers, temporarily unseated trucks, repositioning driver pay and fuel, new customer start-up, equipment turn-in, and fixed overhead."
    He expects to lose money until Q3.

    The good news:

    Celadon improved revenue per *seated* tractor by 20% over the last year.

    They appear to have financing through 2018 (just at usurious rates)
     
    Last edited: Apr 4, 2018
  6. double yellow

    double yellow Road Train Member

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    Bought shares at $3.65/share. Currently trading around $1.05/share. Ouch...
     
  7. mjd4277

    mjd4277 Road Train Member

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    Not good.
     
  8. scottied67

    scottied67 Road Train Member

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    Maybe Knight Swift will swoop in and scoop them up....
     
  9. Chinatown

    Chinatown Road Train Member

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    That's sad! That guy, Stephen Russell, that started the company really worked hard to make it a success and he did. Too bad he died much too young. Anyone know what his health problem was?
     
  10. Rugerfan

    Rugerfan Road Train Member

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    The past few months I’ve seen a company called HTL out of Portland pulling brand new Celadon trailers on I-5
     
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