Conway bought out by XPO

Discussion in 'LTL and Local Delivery Trucking Forum' started by Apd, Sep 9, 2015.

  1. SECcrazy

    SECcrazy Bobtail Member

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    With that said, the problem for XPO, and the reason that its stock has suffered so much, is because it has raised a tremendous amount of debt to complete recent acquisitions and investors want to see real profits. XPO Logistics continues to guide with EBITDA, but the big problem is that XPO's EBITDA is not converting to net income or profits that create cash on its balance sheet. Therefore, XPO may throw out some big EBITDA targets, but until investors see that EBITDA is having a material impact on its bottom line, they aren't buying it!
    *****This is what gets my attention about XPO. 16 quarters with a reported loss. Mounting massive debt with the 2 latest acquisitions in June and Sept. Stockholders are not the least bit impressed with the "bigger is better" approach. I hope for my friends at Con-Way and all employees involved that this plays out well. Buy-outs stink in general. Maybe this will be
    " the one" that ends up positively.
     
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  3. rabbiporkchop

    rabbiporkchop Road Train Member

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    I just spoke to a Conway driver and he told me nothing has changed as of yet and he is still being paid overtime for those people who claim that xpo supposedly did away with overtime
     
  4. whip

    whip Light Load Member

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    The massive debt is my biggest concern. I can't imagine what the payments are on a loan this size.
     
  5. whip

    whip Light Load Member

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    I can assure you they haven't done away with over time.
     
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  6. HalpinUout

    HalpinUout Road Train Member

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    I would start applying for YRC, once XPO screws up Conway YRC will be rocking and rolling like old times
     
  7. Big Papaxx

    Big Papaxx Medium Load Member

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    Don't have to work there to understand mergers and aquisitions rise and fall of stocks, leveraged buyouts, market consolidation etc etc... Publicly traded companies are only beholden to there stockholders and then only to the major stockholders and the bottom line.
     
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  8. XFM2013

    XFM2013 Light Load Member

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    man...if we are gonna count on that then I think we are in trouble.....
     
    Bob Dobalina and rabbiporkchop Thank this.
  9. XFM2013

    XFM2013 Light Load Member

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    So the company itself (performance wise) does not drive the price of the stock or the value of the business? We all drive the business, and sure thing the shareholders matter, it's all about the dollars. Look at the history Brad Jacobs has created during his time as an entrepreneur primarily specializing in the acquisition of companies; He (and his team) acquire companies and make them stronger and profitable. Ooopps....Con-way is already profitable so the next logical thing is to make the place more efficient and increase profits even further. The positive possibility certainly exists, as does the negative, but I'm betting on the positive, based in part on the track record of 25+ years of Jacobs and his developmental skill set. He just wins, that's an established fact.

    That being said, to get there some things have to change, hopefully we can position ourselves (as employees) to be in line and ready for the change because it's coming, everyone can at last agree on that!
     
    Big Don Thanks this.
  10. Big Papaxx

    Big Papaxx Medium Load Member

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  11. Big Papaxx

    Big Papaxx Medium Load Member

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    BTW if you have not seen it lately they are already talking of selling parts of con-way. So while you maybe impressed with MR. Jacobs it appears that many of the shareholders are not..
     
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