XPO | Sic Sold

Found out today that XPO sold our SIC and now we're leasing the property. Is this going on elsewhere?

It would appear that all the SICs have been sold. I don't have the time to look up every single one. But there isn't anybody saying that theirs hasn't been. Jacobs is moving fast into this new direction. Time frame is 6-9 months. Sell off or spin off. Separate the LTL from the rest of XPO. Changes coming. Heads rolling. Should be interesting.
 
So, if we keep selling our assets, the value of the company goes down, stocks go down, purchasing power goes down, and on and on. As it is right now, not 1 of our tractors or trailers have passed or will pass a DOT inspection. The way we're going, our closest competitor will end up being ABF, if they don't outright sell the company.

You were really close on this. Still might be 100% correct.
 
I’m not so sure if it’s dire . He can not proceed with his typical strategy of growing revenue by buying up companies. I think he’s perplex and unable to grow a company though organic means. It’s all about luring investors/ money so he can resume his typical mo
If a recession hits as some fear it may have a big affect on Xpo because of the debt load.

Turns out part the company was growing organically. Even though he was trying to kill it. That part he thought was worthless ended up being worth the most. So now he has a real mess on his hands.
 
So he sold terminals and...so what?

It means exactly...zero. Well, it means that Doug Stotlar and previous weren't as financially sharp.

Why not sell terminals and lease them? Unless you guys have degrees in accounting and can speak competently to how large enterprises manage capital verses expense, how old assets valued at purchase price affect the bottom line verses realizing the true value in a sale, how XPO has consistently valued op ex over cap ex and why...I'm very skeptical about all the doom and gloom. FYI this has been done all over the place in XPO because the company doesn't want to be a land owner - not its competency.

Other parts of the business run exclusively on leased and rented facilities because of the flexibility. LTL had overwhelmingly company-owned real estate. LTL is the oldest business unit. LTL is modernizing.
 
So he sold terminals and...so what?

It means exactly...zero. Well, it means that Doug Stotlar and previous weren't as financially sharp.

Why not sell terminals and lease them? Unless you guys have degrees in accounting and can speak competently to how large enterprises manage capital verses expense, how old assets valued at purchase price affect the bottom line verses realizing the true value in a sale, how XPO has consistently valued op ex over cap ex and why...I'm very skeptical about all the doom and gloom. FYI this has been done all over the place in XPO because the company doesn't want to be a land owner - not its competency.

Other parts of the business run exclusively on leased and rented facilities because of the flexibility. LTL had overwhelmingly company-owned real estate. LTL is the oldest business unit. LTL is modernizing.

The reason why it's bad is that it is the start of a cash stripping. Basically everything you were suggesting up there about not wanting to be land owners, bottom line accounting, etc, is true to a degree. Keep in mine that our CEO/owner still actually owns the property, he sold it to himself, and is now using XPO to pay that other company.

What Brad is doing is stripping cash, it's not the assets you need to focus on - it is cash, from XPO.

Once he's sucked every bit of cash out of it he will dump what's left on the garage sale.

Read up on what hapoend to Toys R Us and Anchor Hocking in Ohio. Hes basically running a vulture capital game on his own company.
 
The reason why it's bad is that it is the start of a cash stripping. Basically everything you were suggesting up there about not wanting to be land owners, bottom line accounting, etc, is true to a degree. Keep in mine that our CEO/owner still actually owns the property, he sold it to himself, and is now using XPO to pay that other company.

What Brad is doing is stripping cash, it's not the assets you need to focus on - it is cash, from XPO.

Once he's sucked every bit of cash out of it he will dump what's left on the garage sale.

Read up on what hapoend to Toys R Us and Anchor Hocking in Ohio. Hes basically running a vulture capital game on his own company.

It's thoughts like this that are concerning. And the examples are relevant. Not doom and gloom. Just looking on. Wondering where it all goes. Being honest with ourselves.
 
So he sold terminals and...so what?

It means exactly...zero. Well, it means that Doug Stotlar and previous weren't as financially sharp.

Why not sell terminals and lease them? Unless you guys have degrees in accounting and can speak competently to how large enterprises manage capital verses expense, how old assets valued at purchase price affect the bottom line verses realizing the true value in a sale, how XPO has consistently valued op ex over cap ex and why...I'm very skeptical about all the doom and gloom. FYI this has been done all over the place in XPO because the company doesn't want to be a land owner - not its competency.

Other parts of the business run exclusively on leased and rented facilities because of the flexibility. LTL had overwhelmingly company-owned real estate. LTL is the oldest business unit. LTL is modernizing.

Agree that many companies lease their buildings. Also understand that they ain't making any more land and that it's value only goes up in value. It's an interesting shift in strategy. Considering XPO closed several terminals after they bought us, because they were being leased. Just saying.
 
The reason why it's bad is that it is the start of a cash stripping. Basically everything you were suggesting up there about not wanting to be land owners, bottom line accounting, etc, is true to a degree. Keep in mine that our CEO/owner still actually owns the property, he sold it to himself, and is now using XPO to pay that other company.

Do you have a reference or article on the fact that he bought the land? I haven't read that. Just curious.

I know that some of the corporate buildings are definitely not owned by him.
 
Do you have a reference or article on the fact that he bought the land? I haven't read that. Just curious.

I know that some of the corporate buildings are definitely not owned by him.
There's a company in Ky buying lots of the terminals. They own a lot of Fed ex terminals also
 
Do you have a reference or article on the fact that he bought the land? I haven't read that. Just curious.

I know that some of the corporate buildings are definitely not owned by him.

Unfortunately if you out "XPO" and "sells/sold" in a search engine you just get stuff about the current sale. Pretty sure I saw an article about the Atlanta and a couple other terminals being sold to a company held by Jacobs.
 
So he sold terminals and...so what?

It means exactly...zero. Well, it means that Doug Stotlar and previous weren't as financially sharp.

Why not sell terminals and lease them? Unless you guys have degrees in accounting and can speak competently to how large enterprises manage capital verses expense, how old assets valued at purchase price affect the bottom line verses realizing the true value in a sale, how XPO has consistently valued op ex over cap ex and why...I'm very skeptical about all the doom and gloom. FYI this has been done all over the place in XPO because the company doesn't want to be a land owner - not its competency.

Other parts of the business run exclusively on leased and rented facilities because of the flexibility. LTL had overwhelmingly company-owned real estate. LTL is the oldest business unit. LTL is modernizing.
Glad you are not my financial advisor.
 
Do you have a reference or article on the fact that he bought the land? I haven't read that. Just curious.

I know that some of the corporate buildings are definitely not owned by him.
This is the closest I could come up with so far...

XPO Logistics Expands Lease in Metro Atlanta Industrial Park By 265,163 SF

MORROW, GA. — XPO Logistics has leased an additional 265,163 square feet of industrial space within Mt. Zion Industrial Center in Morrow. The third-party logistics provider now occupies 519,521 square feet of space in the center. The landlord, Woodmont Industrial Partners (WIP), acquired the center in February 2018 and implemented capital improvements that included the upgrade of new dock equipment, new roof, office upgrades, life safety system improvements, floor upgrades, interior and exterior painting and new landscaping. XPO signed a 254,358-square-foot lease the same year. NAI Brannen Goddard represented WIP in both transactions. Mt. Zion Industrial Center is situated 10 miles from Hartsfield-Jackson Atlanta International Airport and 20 miles from downtown Atlanta. The property features 72 dock doors, two drive-in doors, 22-foot clear heights, a five-inch-thick concrete floor and parking for 110 trailers.

From - REBUSINESS ONLINE

I'd imagine information like this wouldn't be hard to find because XPO is a publicly traded company and it would be a huge expense that would have to be listed in a SEC filing.
 
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Don't need it. Land sales are public knowledge.

http://property.franklincountyauditor.com/_web/Datalets/Datalet.aspx?sIndex=0&idx=1

Here is the information for XCO.

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