After the downgrade of the stock this should be expected. But the question is how did some many non-essential employees get added in the first place? It all boils down to management. They are searching for a CFO with extensive international experience but the recent government restrictions in the UK are an external force that experience will not alter. They need a CFO who can implement process improvement and expense reduction in a rational manner and a method to avoid bloat in the future. Cash flow is declining rapidly. The first quarter ending 3/31/2013 had a revolver borrowing of $61 million vs. a payment of $5 million last year and $11 million of debt was issued. There is $900 million of Goodwill and Other Intangibles, net on the books. Folk this represents an investment betting on the come, it is accounting’s version of some future value (earnings and cash flow) that may or may not happen. Accounts Payable doubled to $22 million, which may indicate slowing of payment to vendors to conserve cash. Provision for loan losses dropped to $97 million this year from $128 million last year.
Yet they continue to make acquisitions.
The Independent Board of Directors (excluding management) should initiate some strategic reviews of the senior leadership with the goal of new thinking and leadership. The Board should be increase form 6 people to 9, with the 3 new members independent and with vast governance experience. The roles of Chairman of the Board and CEO should be separated for increased accountability to shareholders. Sorry Weiss, the time has come.
Best to all,
This makes sense; the treasury function should have the best handle on cash flow and projected operating income thus better able to interface with the wolves that are gathering at the door.
The need to anticipate and deliver the right info to the buy side intuitional investors is also critical at this juncture, fast and concise without a lot of delay, review and other puffery that you find in an I/R psyche.
Yes it is time for new CEO that can strategically focus 3, 5 and even 10 years out.
What is the probability of the CFO moving up into the CEO slot in the short and long term?
And what is this prattle about earrings improving due to pension plan assumptions? It can just as easily move the other way next year. Why did they decide to change now?
Best to all, Manny.
I have never been employed by Panther Expedited or Fenway, in the past or present nor any of their competitors. Seek and ye will find.
Best to all
I like this sector and see it as ripe for consolidation. Tell you what Pete I see your profile has you as a proctologist so if you dig through the code below you will find the answer you seek.
Panther and Reuters Reuters doesn’t speculate, they have informed sources that compile data and information.
I believe Panther is in due diligence and this can be verified by observing the comings and goings at their headquarters in Seville OH, number of “suits”/public accounting types and investment banking advisors and late night dinners being delivered plus the senior executive cars in the parking lot way past “normal” hours.
Look for all of the office lights on where I/T and accounting reside. Follow the rental cars (you can identify by the upc code in the back windows) when they return to the hotel and airport to see who the DD folks are and if in the hotel bar have a drink nearby to hear the chatter about the deal.
Fenway the PE owners have been trying to go public for some time so they may be very eager to do a deal and get out.
The answer is there, you must look.
Reuters) - U.S. logistics firm Panther Expedited Services Inc is trying to sell itself, three months after scrapping its IPO plans, two people familiar with the matter told Reuters.
XPO Logistics (XPO.A) and several private equity firms are eyeing Panther, one of the sources said.
XPO Logistics has been looking to make acquisitions since it received a $150 million investment from Brad Jacobs and his private equity firm in June 2011.
Jacobs plans to transform the company into a $4-$5 billion business in a few years, mostly through acquisitions.
What are the plans for “synergies” from this acquiistion? Will there be expense reduction in payroll and non-payroll at EBay and GSI or just GSI and its Philly cheese steak bloat?
Why in the world is the CFO De Santis suddenly up and moving to a 3rd tier restaurant company when he has this great company to work for? Maybe ‘cause in the last 6 months SHLM has gone down 5% while the S&P 500 have gone up 15%? Is it due to the “Goodyear” influence?
Would appreciate insightful comments on the big competitor Panther Expedited Express and its SEC filing to go public, the S-1. Will a rejuvenated Panther with access to public funding be able to out maneuver XPO and ultimately force it out of business. I take a long-term approach to these processes. Please no b/s responses. firstname.lastname@example.org
DG reminds me of the hustlers who sell individual cigarettes for $.50 or a 100% markup because the customer only has a buck or two at the time of their need to purchase. The customer doesn’t care that they can buy a pack for $5.00 or less or $.25 per ciggy if only they saved their money for a little bit. Thus you see the price strategy vs. Wal-Mart. Kmart is also using this pricing, look at the analyses over the years and the Kmart pricing is consistently the highest, why because they are the only major game in town in their markets in a lower socioeconomic segment.
Thus when times get better DG will suffer.
Best to all,
As reported in Barrons on why OMX will liley lose its ass on some Lehman notes:
The notes are from the October 2004 sale of timberlands by OfficeMax, which received $1.635 billion in credit-enhanced timber installment notes. OfficeMax transferred its interests in the notes to wholly owned bankruptcy remote subsidiaries. Subsidiary OMX Timber Finance Investments II LLC has issued and has outstanding $735 million in principal amount of securitization notes that are secured by $817.5 million aggregate principal amount of installment notes issued by Boise Land & Timber II, L.L.C. and guaranteed by Lehman. On Sept. 17 attorneys for OMX Timber II delivered notices to Wells Fargo Bank Northwest, N.A., as trustee that as a result of the Lehman bankruptcy filing, a default had occurred under the installment notes.]
Given the risk (in the uncertain event that OfficeMax is required to honor Lehman's formerly funded portion of the note) that the company's leverage ratio would increase by 1 time to 5.4 times our 2008 estimated earnings before interest, taxes, depreciation, amortization and rent (EBITDAR) forecast (which is a relatively high level of leverage), we choose to step aside to assess, for the time being. We also think that this issue makes any type of due diligence more cumbersome, in the event that OfficeMax was entertaining something more strategic for the company at an otherwise seemingly cheap valuation (excluding this issue).
Question is how long he will be here until he job hops his way to another company. Look at his track record, Wards = bankrupt twice, OfficeMax = perennial dog loser of that segment with a laughing stock management, GBC = a POS with no future. No accounting background or training, just a math whiz from the U of C. It appears they think he can handle ‘the street’. Of course this is silly thinking as the “street” is really sell side traders looking for a quick buck.
Sell now folks. This is not a good hire.
What is your comment trying to say?
1. This is a good hire for the company or
2. The guy must be a well-endowed stud?
The companies he has been with have been real losers, any one know what his specific involvement was in some of their miscues and failures. Also he was with Arthur Andersoen, I don’t believe they are around any more, get it?