Cliff's Announcement and Company Transition

Just some interesting reading for anyone who wants to check. The Trucker newspaper has in the new issue the quarterlies for all the major companies. It looks as though it was only us and Werner that had a loss. And the funny this is everyone who made money complained of the same things as I'd Cliff, all but the one less business day. Lol

 

the real funny thing about that. One less day for Cliff to be in charge of USA.

 

And Werner also holds zero long term debt. They may have shown a loss but overall are still making money. USA on the other hand is having to hope every week that the money comes in quick enough for them to meet their current obligations. One misstep such as a huge accident or a group of customers don't want to pay a huge freight bill and the money may not be there. Does anyone really think that there is a company out there that would see absorbing this company as an asset. Should Wells Fargo have to seize the assets they will want to get rid of it all on the cheap. At that point it would be a steal.

 

According to Yahoo key stats they now have 140 mil in debt up from 126 mil. If the current credit facility gives them access to 28 mil in capital it would seem they have used just over half. Thats just in one quarter. It will take a miracle to keep this company from going out within the next few quarters in my opinion but hey no one is really going to listen to me. Im not an accountant but either way it doesn't look good for them.

 

I think another reason for Werner's bad report is they have been undercutting other carriers for business of late. They have undercut several accounts from my carrier over the last 8 months. They also undercut another of my carriers sister carriers Budweiser account earlier in 2012. It's good for business, but hurts the bottom line. Both my carrier and it's parent company seem to be financially sound, but they refuse to match these rates. As I write this I am broke down at my carriers home terminal. Yesterday I had a chance to speak with the company president about this. I am afraid this is just a preview of coming attractions. This round of throat cutting has really only just started too. This is primary reason I don't feel USA Truck will make it much longer as a stand alone company. They will either be bought out and operated or absorbed by another carrier.