The initial response to a press release from Heartland Express has been negative today. HTLD stock has dropped $1.25 dollar/share so far after HTLD missed a key projection. Read the HTLD press release here: http://www.nasdaq.com/press-release...-for-the-third-quarter-of-2014-20141024-00536
Some key points so far:
Last quarter (July-August-September) HTLD/GTI turned down more loads since before the 2008-2009 recession.
Paid down the $250-million dollar Wells Fargo revolver loan to $21-million dollars and has $23.3-million cash-on-hand, more than enough to pay off the revolver this afternoon if wanted...
HTLD/GTI expected a larger gain on sale of used equipment, which was not realized due to a delay in delivery of new tractors...
Took delivery of 293 new tractors this quarter and expects to take delivery of 460 more new tractors by the end of the year.
Press release about drop in the HTLD stock here: http://www.nasdaq.com/article/heartland-express-q3-profit-rises-but-misses-street-20141024-00627
Heartland's 10-Q report on this year's third quarter is not due until early November. The 10-Q is a company's 'official' in-depth quarterly report to the SEC. Today's press release is a look ahead to the 10-Q.
Heartland/GTI press release... most loads turned down since recession
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HTLD closed $24.01, down $1.31. That's a pretty good haircut on a day when the NASDAQ close up 30.92 at 4,483.71. Doesn't seem to me that the missed expectation warrants it. HTLD/GTI performance still impresses me.
No major changes in short interest:
The short sellers (who had a position selling shares they didn't have, betting HTLD price would drop and they could buy for less to cover their sale) had a chance for a payday today. Of course, if they do buy, will tend to push price of HTLD up again!!
Timing is so important. If they pull the trigger too early, money's left on the table. Wait too long and miss the opportunity to make some bucks if stock goes back up.Last edited: Oct 24, 2014
Let me tell you why. Talking/recruiting a driver last night from Gordon, he was telling me some things I knew, and some I predicted. The TC guys aren't getting miles, as if the bottom fell out. I said that would happen. Here's something else. This guy has had paychecks as low as $100. Not from lack of trying. But lack of communication between shops and dispatch and whatever the hell GTI does to those trucks. In 11 months I was there, I've had more breakdowns than I did in 6 years at Lessors. Why? Aren't trucks just trucks? There's no reason for those trucks to CONSTANTLY be in shops. And then for them to be there days at a time. To the GTI shops, learn how to work.
as I said, no miles is no paycheck and it doesn't matter how much you'll pay for those miles. When the truck isn't rolling, there's no money. And a powerhouse like GTI/Heartland can sit a few and not feel it. The drivers on the other hand? Sucks to be you. I look at the pay package as a simple ploy to get butts in the seats, nothing more. This isn't the first GTI driver I've recruited and it won't be the last. If you're not making at least $1,000 a week, it's not worth it.
Miles sure are lacking in the TC Fleet...Im getting around 2000 miles per week right now but for now Im staying but not sure for how much longer.
Trucks are constantly in the shop and the only shops worth anything are the shops in Medford, Millersburg, and the new shop in Boise. All the other shops are worthless and take 10 hours for 30 minute repair job.
Dispatchers still push and push and yet we still end up sitting way to long.
And as for the $1000 per week, yeah right, not with Gordon unless you're screwing your DM. I can bring in $500-800 on a good week.
When the trucks do breakdown on the side of the road, I always talk to you the tow driver and everyone of them always says that Gordon is the #1 company that they have to tow/repair.
Their APU's seem to be one of the top reasons the trucks are always in the shop, and just today my APU took a crap and is throwing fault codes. Luckily I'm going on hometime in a few days, I need a break.Victor_V Thanks this.
In the week since the HTLD press release announcing more loads turned down since the 2008-2009 Great Recession, HTLD stock has completely recovered. Closed $25.24, Friday, October 31.
That's where it was when the announcement came out last Friday.
That a Truckload Association member-carrier has a driver with a small paycheck (peewee paycheck) should surprise no one. Or, at least surprise no one who knows anything about truckload trucking. It's structural. Truckload carriers do not pay for your time. If you're a truckload driver, your company probably lacks any social conscience about wasting your time.
Shouldn't be that way but it is.
Your time is like water. Just comes out of the tap. Your time is free.
An LTL (Less Than Truckload) outfit or any other outfit that pays hourly (pays the driver for his time) would layoff drivers or send them home. Some truckload carriers, like Nussbaum, pay a weekly minimum $$ that you make as a driver whether your company has the miles for you or not. What a concept! The company guarantees you a paycheck. A real paycheck.
Not enough truckload carriers do that. On percentage you'll typically do better than mileage, or you should. Still, when things get slow, everyone gets slow. Feast or famine.
(Interesting that it's HTLD/GTI stepping up to the plate and offering detention after 1 hour. Dunno if that's a game changer or not. Hafta wait and see.)
Truckload carriers try to seat enough drivers to deal with their surges, which is what freight does. This week it's too much; next week there's not enough. That becomes visible if you pull loads from brokers off the load boards where you see the same load paying $3/mile one week and $1.50 the next. Most company drivers don't have a clue what their load pays.
If all you know is what you get paid, what do you really know? Not that much. Every day across the Gordon QualComm would come this announcement that freight was strong here (area of the country) and light somewhere else. Every day. More, I think, trying to remind drivers that freight varies than any particular heads up. Some drivers will lose...
Gordon (like Heartland) is a short haul carrier.
If you get 10 less than 300-mile loads in a row you're gonna get hosed in your paycheck. Oh, you'll still be busy. In fact, you'll run harder than if you had some nice, long runs. Always loading and unloading. Load today, deliver tomorrow. Load today, deliver tomorrow. Repeat.
No one LIKES to be in the shop because it's boring and breakdown pay won't pay your bills. At least if you're on a load, you've got something to do. If you were paid hourly, you could care less if your truck's in the shop. It all pays the same then. Up to the company to find you a truck and something to do.
It always boggled my mind that Gordon could keep 2,000 balls (trucks) in the air like this fantastic juggling act and keep everyone with a PrePlan for your next load well before you delivered and then converted it to a load assignment once you delivered. Always moving, sleeping in a different state every night. Not necessarily making any money, though.
So drivers leave. 100% turnover. So, yeah, always, always recruiting...
Don't know if you will be accepted on Schneider Choice, Denali, because you will have been out of a truck for a year. That's poison to many carriers' insurance and would not matter why. Likely as not, Gordon's your best re-entry point or a smaller carrier.
Maybe someone can pull some strings for you at Lessors...
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