Con-Way Q3 results: truckload miles down, # of o/o up, no mention of Union?!

Discussion in 'Con-Way' started by double yellow, Oct 30, 2014.

  1. double yellow

    double yellow Road Train Member

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    I have just skimmed through Con-way's latest 10q, but a few things jumped out at me.

    #1 No mention of labor issues or unions?!?!?!?!?! Laredo freight voted to join a union on 9/12 & there were 3 more pending votes known (Los Angeles subsequently voted to unionize this month) by the time the quarter ended 9/30.

    #2 Truckload earned less than last year -- 4% fewer miles for company trucks

    #3 Money paid to owner operators has increased nearly 40% this year largely due to a growing IC fleet. Company tractor count is down, total tractor count (including o/o) is up.

    #4 Overall Con-Way earnings and revenue are up substantially (mainly due to Con-Way Freight)

    http://investing.businessweek.com/r...CCQ99LT1EC31QQJ8U&docFormat=HTM&formType=10-Q
     
    Last edited: Oct 30, 2014
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  3. double yellow

    double yellow Road Train Member

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    Fwiw, con-way did issue a press release on 10/24 when Los Angeles voted to unionize. The press release was framed as "2 terminals vote against unions......1 terminal barely votes for"

    Didn't see anything from Conway about Laredo's unionization, though it made plenty of headlines.


    Very very very shady not to include that info in SEC filings.
     
  4. Victor_V

    Victor_V Road Train Member

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    Well, if you've got $457 million on hand in cash and cash equivalents at the end of September, it takes a pretty big hiccup to amount to a 'material' difference enough to report on a 10-Q.

    And if you're a going concern with what, $45.6 million or so in net income for the last 3 months, and all Con-way is required to do is negotiate in good faith with the union, yeah, it's not that big a deal... YET.

    Con-way has both the financial strength to make a strike hurt and for sure, the union is salivating at that cash and cash equivalents. That's over and above property and equipment, by the way. So the union is looking at what it could get in better working conditions, benefits and pay without getting into a major snit with this billion dollar operation that would probably prefer to steamroller right over them.

    Now if there were a strike down the road... it's almost impossible to make up for more than 5 days off through a wage increase. Both Con-way and the union know that. And shuttering one terminal to starve out the strikers probably wouldn't make that big a dent, either, balance-sheet-wise but would be disasterous for the employees.

    Here's the NASDAQ link to Con-way's 10-Q: http://secfilings.nasdaq.com/filing...Y+INC.&FormType=10-Q&RcvdDate=10/29/2014&pdf=
     
    Last edited: Oct 30, 2014
  5. Victor_V

    Victor_V Road Train Member

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    Stepping up to the plate: doubling wage increase in 2015 compared to wage increase in 2014:

    You can bet that Con-way has no intention of giving its newly unionized drivers 10-cents more than its non-union drivers. And the opening shot here is Con-way saying there's $60-million to divvy up for wage increases for 2015 alone.

    The union wants at least a 3-or more-year contract and make Con-way commit to future increases over the term of that contract. Con-way, of course, would rather take things year-by-year and expand or contract wages as needed... and when needed to stay competitive with non-union rivals.
     
  6. Victor_V

    Victor_V Road Train Member

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    Con-way traditionally has a conference call to talk about its 10-Q (quarterly) performance. (Not all companies do this. Some only when something 'special' has happened like Heartland acquiring Gordon.) Stock analysts usually have a Q&A and that's where unionization will come up if it's going to.

    You can bet the union has poured over every financial statement filed, every call transcript, every press release for the last five years. You can bet that Con-way will downplay the importance of a couple terminals going Teamsters and will emphasize that driver benefits will be the same throughout Con-way.

    That's my bet.

    So that's the next shoe to drop. The upcoming conference call.
     
  7. double yellow

    double yellow Road Train Member

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    Labor issues at 4 out of 400 terminals may not meet the legal definition of material, but it is something that any honest & forthright business partner would mention to his investors, especially as he is unloading $27 million in stock & options (compared to ~$3 million during the same time period last year).

     
    Last edited: Oct 31, 2014
  8. CargoWahgo

    CargoWahgo Road Train Member

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    So does that mean its time to buy?

    Or is it still sledding?

    I heart transport stocks so much...
    A nice safe investment to be sold within a year.

    These things are making me rich.

    Certainly not working FOR them.... But trading their bundles.

    Wonder if i should call my FM and tell em this is investor xyz not truck number blah blah blah. I'm your boss sucka I own more % than you! This is the owner calling....

    No not really... I don't have any conway stock.
    Supported the hometown ups this go around.
     
    double yellow and paul_4lp Thank this.
  9. Victor_V

    Victor_V Road Train Member

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    Con-way 10-Q mentions upcoming big $$ settlement over Cali wage and hours:

    Wouldn't be mentioned in 10-Q if dollars weren't really big going out the door.
     
  10. Victor_V

    Victor_V Road Train Member

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    Con-way 10-Q DOES Mention Labor Unions--And It's WRONG

    At least, appears to be wrong. Just reading the 10-Q over again, slowly, and noticed this under 'Risk Factors'. Con-way claims its workforce and subsidiaries are not affiliated with labor unions!

    Imagine that...
     
    Last edited: Nov 4, 2014
  11. double yellow

    double yellow Road Train Member

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    I didn't see that text in either 10Q link -- was that from the 10k?
     
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