Celadon stock loses 67% on $10m loss and multiple lawsuits

Yep, Prime was once bankrupt, once they emerged under a new corporation (New Prime)...they became a leasing entity with a freight base.

 

...and those "contractors" would be fools, because like what happened with Arrow, if the company uses those units as collateral for other loans, the contractor will NEVER see the title. And if the company defaults on those loans, it doesn't matter if the contractor is up on his lease payments or not or how much alleged "equity" he is supposed to have in the truck, the finance company will repo it just the same.

That right there is one of the biggest reasons NOT to L/P a truck. If your name ain't on the title, you're leaving the fate of a pretty important aspect of your business to people who may not really care whether you succeed or fail...and in some ways, they might actually benefit MORE from your failure (especially so as you near the end of the lease) because they can lease that same truck out to the next sucker instead of signing that title over to you.

 

John russel, son of late founder Steve russell
And now president and chief operating officer said the companies truck load business will change from
Dependence on independent contractors to a emphasis
On company drivers.

Russell noted that since 2014 the company had acquired
4 carriers specializing in dedicated freight.
A&S Kindard, Taylor express, buckler transport and
FTL inc. ( never heard of any of them). And that those 4
Have contributed operating profits since that time.

However, he said celadon's irregular route truck load
Business has been the key factor in our consoladating
Ratio deterioration. ( losing money).

He also stated with increased driver turnover and a
Reduction of seated trucks(running out of suckers)
Along with increased deadhead miles and longer
Dwell times,(driver sitting, no load) in certain markets
Exacerbated by its heavy dependence on independent
Contractors and lease drivers

Russell said the carrier expects to move to smaller
Recruiting regions and emphasize company drivers
In the future. The company also plans on raising pay
In markets where we have freight density.

At least 16 law firms,most of them based in New York City
Have issued press releases in recent days saying they
Have filed lawsuits against the company or are investigating doing so.

Most of the firms accuse the company of filing
False or misleading financial statements and are seeking
Investors interest in a class action law suit.

Any fleece purchase suckers working for celadon,,
It's time to jump ship. Some how some way.

 

Their just cooking the books like any good corporation.
They will merge with another company, shedding their debt.
Its the American way.

 

That's funny! Let's wrap up all the scum mega trucking companies in one and let it crash.

 

Nearly all their trucks are actually sub leased from Quality, who lease their trucks.
Their only assets are their properties..cant get blood out of a turnip.

 

Not sure what would be scarier, all the megas merging into one super mega, or half go in with Knight and swift and the other half rally round who the he'll cares and drive frieght prices even lower....

 

So basicly their just playing a shell game?

Original company leases trucks to quality who leases them to celedon, who in turn try to lease them to the drivers. What kinda trumped up crap is that?

 

Leasing lets you write off all expenses.
Celadon like most megas are self insured and rarely pay out big settlements..except in rare cases like fatal accidents.
Just think how much these companies pocket on their insurance premiums to drivers.

 

So does buying, except you depreciate the purchase price in addition to deducting the interest as opposed to deducting your entire monthly payment. Difference is, when you purchase the truck, those payments stop, meaning money in your pocket, and an asset sitting in your driveway. Leasing, you have ALL of the expense, paying 2-3 times what the truck would otherwise cost, and you typically end up as you started...without a truck, because you never owned it and they (especially if leasing through the company you are working for) probably never intended you to complete the lease and receive title to the truck because they didn't want to lose THEIR asset. Spend 2-3 times as much and get nothing...but hey, look at how much you got to write off!