Episode 38 Show Notes
#038 SHOW NOTES.
Freight Waves news
U.S. Xpress filing confirms closing of sale to Knight-Swift
More than $800M deal announced in March
By John Kingston
1 day ago
The U.S. Xpress acquisition by Knight-Swift has been closed. (Photo: Jim Allen/FreightWaves)
The Knight-Swift acquisition of truckload carrier U.S. Xpress has closed, with U.S. Xpress stock no longer trading and the company filing a delisting document with the Securities and Exchange Commission.
Knight-Swift (NYSE: KNX) has made no comment or filing about the closing of the deal, but U.S. Xpress’ notice Monday to the SEC delisting its stock from the New York Stock Exchange says the closing was effective Saturday.
Prior to that filing, services such as Barchart and Yahoo Finance were showing no trading of U.S. Xpress stock Monday. The section on each company’s website devoted to filings with the SEC also showed no activity beyond Thursday’s filing by U.S. Xpress that its investors had overwhelmingly approved the acquisition. That only changed later Monday with U.S. Xpress’ delisting.
When the more than $800 million acquisition was announced in March, a second-quarter closing was targeted.
U.S. Xpress ended its five-year tenure as a public company — almost exactly — with a closing price of $6.14 for its Class A shares. That is 1 cent less than the price per share that Knight-Swift paid for U.S. Xpress. The total price for the acquisition was $808 million.
About a month before the sale to Knight-Swift was announced, U.S. Xpress stock hit its 52-week low of $1.34. It dropped below $10 per share in May 2021 and never recovered double digits.
At the time of the transaction, Knight-Swift said the addition of assets from U.S. Xpress would add about $2.2 billion in revenue, $1.8 billion in truckload proceeds, to the Knight-Swift top line. The U.S. Xpress equipment count at the time was 7,200 tractors and 14,400 trailers.
Following the deal, the Knight-Swift annual run rate is expected to be close to $10 billion, with a truckload fleet of 25,000 tractors and 93,000 trailers. Knight Swift had full-year revenue in 2022 of $7.42 billion.
In its announcement of the acquisition, Knight-Swift reiterated breakdowns of U.S. Xpress revenue that had been reported in the U.S. Xpress earnings: 36% dedicated truckload, 34% “irregular route” truckload, 14% Total Transportation of Mississippi irregular route truckload and 16% brokerage.
“Portions of the U.S. Xpress business are performing reasonably well, such as the Total Transportation subsidiary, while the most underperforming irregular route business unit matches up well with Knight-Swift’s strengths,” Knight-Swift said in its announcement in March.
U.S. Xpress last September had largely pulled the plug on its Variant initiative. That “truckload carrier within a truckload carrier” sought to use technology to chart a new course for the company but ultimately was unsuccessful. Six months later, U.S. Xpress was sold to Knight-Swift.
Knight-Swift’s stock price has been largely flat to down since the acquisition. It was about $56.70 per share at the time of the deal and closed Friday at $55.75.
The New York Times
By Alan Rappeport
Reporting from Washington
June 27, 2023
Facing Bankruptcy After a $700 Million Bailout
Three years after receiving a pandemic relief loan, the trucking company Yellow has repaid little of the money and is warning that it could soon run out of cash.
June 27, 2023
A beleaguered trucking business that received a $700 million pandemic-era loan from the federal government may be forced to file for bankruptcy protection this summer amid a dispute with its union, a development that could leave American taxpayers stuck with a failed company
The financial woes at the business, Yellow, which previously went by the name YRC Worldwide, have been building for years. The company lost more than $100 million in 2019 and has more than $1.5 billion in outstanding debt, including the government loan. In 2022, YRC, which ships meal kits, protective equipment and other supplies to military bases, agreed to pay $6.85 million to settle a federal lawsuit that accused it of defrauding the Defense Department.
In 2020, the Trump administration, which had ties to the company and its executives, agreed to give the firm a pandemic relief loan in exchange for the federal government assuming a 30 percent equity stake in the company.
Three years later, Yellow is on the verge of going bankrupt.
Since receiving the loan, the company has changed its name, restructured its business and seen its stock price plummet. As of the end of March, Yellow’s outstanding debt was $1.5 billion, including about $730 million that is owed to the federal government. Yellow has paid approximately $66 million in interest on the loan, but it has repaid just $230 of the principal owed on the loan, which comes due next year.
SUMMER TIME FAIRS
Its that time of year again where we have county fairs, 4H fairs, State Fairs, and plenty of small town and big town festivals.
They have pig judging or wrestling , which ever you prefer. Midway rides and games. Where you can win your girl a stuffed Bear or some other trinket there giving away for a prize. Oh and the BEST things about these Fairs and Festivals are THE ENDLESS FOODALLEYS of anything you want deep fried, or on a stick. And maybe even a cooking contest.
Mommas best dessert, cake, pie, and just her best dish she makes. Chili contests, BBQ, Steaks, and anything else you can come up with.
Heres a couple going on the next couple months around the country. If your in the area check em out and take in some locals favorites. Drop us a line in the comments or email the show. Let us know what you found to eat at these fairs, because you know were all about the food people, all about the food!
Please have a safe fair season and if you come across ANY kind of eating contest people, buck up, step up, and sit down, and Belly Up! I want to hear about some winners people! Make us proud trucker friends. Now grab your bib, your favorite fork or spoon and dig in people!
We’ll see ya at the pepto, heartburn, and miralax trailer!
We love ya, have a great time out there everyone!
- California Mid-State Fair
Jul 19 – 29
Paso Robles Event Center, 2198 Riverside Ave
Paso Robles, CA - 10
Aug - Iowa State Fair 2023
Thu, 6 AM – 5 PM
Iowa State Fairgrounds, 3000 E Grand Ave
Des Moines, IA - 21
Jul - North Dakota State Fair
Fri, 6 – 9 PM
North Dakota State Fair Grounds Red Lot Campground, 2007 E Burdick Expy
Minot, ND - 29
Jul - FOWLERVILLE FAMILY FAIR
Sat, 8 AM – 11 PM
Fowlerville Family Fair, 8800 W Grand River Ave
Fowlerville, MI - 28
Jul - 2023 Indiana State Fair
Jul 28 – Aug 20
Indiana Department of Natural Resources Building, 1145-1473 42nd St
Indianapolis, IN - 20
Jul - The Delaware State Fair
Jul 20 – 29
Delaware State Fair, 18500 S Dupont Hwy
Harrington, DE - 20
Jul - Porter County Fair
Thu, 12 – 3 PM
Porter County Fairgrounds, 215 E Division Rd
Valparaiso, IN - 15
Sep
- The Great Frederick Fair
Sep 15 – 23
Frederick Fairgrounds – Home of The Great Frederick Fair, 797 E Patrick St
Frederick, MD - 16
Aug
- The Great Frederick Fair
- Iowa State Fair
Wed, 7:30 – 8:30 PM
Iowa State Fair Grandstand, 3000 E Grand Ave
Des Moines, IA - 21
Jul - 2023 York State Fair
Jul 21 – 30
York Expo Center, 334 Carlisle Ave
York, PA - 21
Jul - Northern Lights Music Fest
Fri, Jul 21 – Sat, Jul 22
Upper Peninsula State Fair, 2401 12th Ave N
Escanaba, MI - 15
Jul - California State Fair Republican Booth
Fri, Jul 14 – Sat, Jul 15
California State Fair, 1600 Exposition Blvd
Sacramento, CA - 27
Jul - Ohio State Fair Invitational
Thu, 7 PM
Taft Coliseum, 716 E 17th Ave
Columbus, OH - 15
Jul - Gabby Barrett
Jul 15 – 22
Jefferson County Fair Park, 503 N Jackson Ave
Jefferson, WI - 21
Jul - BIG SKY COUNTRY STATE FAIR
Fri, 5 AM – 5 PM
Gallatin County Fairgrounds, 901 N Black Ave
Bozeman, MT - 29
Jul - Brothers Osborne
Sat, 7 AM – 2 PM
Washington County Fair Park & Conference Center, 3000 County Hwy PV
West Bend, WI - 21
Jul - Waukesha County Fair
Fri, Jul 21 – Sat, Jul 22
Waukesha County Expo Grounds, 1000 Northview Rd
Waukesha, WI - 15
Aug
- Iowa State Fair
Tue, 8 AM – 7 PM
John Deere Agriculture Building, 3000 E Grand Ave
Des Moines, IA - 26
Jul
- Iowa State Fair
- Pitbull at the Mid-State Fair
Wed, 7:30 – 10:30 PM
Paso Robles Event Center, 2198 Riverside Ave
Paso Robles, CA - 21
Jul
