Why isn't Estes Express Lines a Publically Traded Company?
Because we would then be beholden to the stockholders every quarter. If we didn't produce profits fast enough for their greedy pockets they would sell our shares in a heartbeat much the way they are doing with YRC which had a high of $63 and change in May 2005 and $1.610 as of this writing. Much lower than yesterday! Being a privately held company with no shareholders to answer to, we are free to do as we please with our cash. Times are not the best for Estes right now, but it doesn;t matter to us as we have NO long term debt and are cash rich. Sorry flstc2000, I cannot provide you with proof as I am not privy to that info. Schneider NAtional is in the same boat as they are privately owned and cash rich.
Do they own everything that they have?
Yes they do and there is no long term debt. All terminals, even the crappiest ones, are purchased in cash from what I have heard from those "in the know". The same with equipment.
If so... where does all the money go?
The money goes into purchasing terminals from YRC and the purchasing of GI trucking as well as other trucking companies in the northeast and such. The remainder is held in cash for hard times like we are now experiencing.
Look at it like this. If Estes, you, or any company/individual for that matter, are completely debt-free and own your house, cars, etc outright and owe no one any money you can easily survive a severe downturn in the economy the likes of which has never been experienced in our lifetimes. When housing prices/stocks, etc reach bottom you can clean up by coming in with your saved up cash and buying at rock bottom proices from people/companies who are so starved for cash that they will sell at firesale prices. I believe Estes will "clean up" in the long run because of their cash rich situatiuon.
Besides we did not have to borrow money or purchase equipment/other companies on leverage. We paid cash.
Also, the money goes to raises for drivers (granted it was not that much) when many public companies like YRC, Milan, etc are cutting drivers pay in order to survive. We received a raise in the most severest of times while YRC voted to decrease theirs. Makes one wonder. It also goes to keep the company equipment well-maintained and for the purchase of new equipment.
Are You all reaping the rewards of their success?
We are reaping the rewards in that we have no fear of going bankrupt or facing a decrease iun pay (for the foreseeable future). We are reaping the rewards in knowing our company has no debt and will survive this depression practically unscathed while others will be "murdered". It will be a bloodbath in the trucking industry, especially for the unionized/public companies I'm afraid.
Pensions, 401k's, Profit Sharing - anything like that?
No pension and no profit sharing although I would like to see at least a little profit sharing with those who make the company a success and that is the drivers. 401k is only a match of 3%. Quite low by standards, but our pay is superior. So if you do not spend more than you make or live above your means, you should be able to do alright. I believe Estes is among the highest paid in the LTL/non-union business these days.
If we had a pension, we would be public and would probably lose it if the company filed for bankruptcy or, at least, have it severely curtailed. Just watch what is happening with the auto industry. As they go, so will the unions of the LTL. I really feel sorry for them as they built their companies to the status they once had with promises from the company of a secure retirement and it is now all in jeopardy.
Like arguing with the Rain Man. Now you know why I've only posted a few times, just don't have the patience. But I'm a glutton for punishment, so here goes....
