almost13ranch
Abitiose sed ineptum
- Credits
- 516
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.
In 2008, YRCW owned a facility in Colorado Springs for over 50 years and another that was a Roadway terminal for 25+. They sold both and leased back the 50 year one and are now paying rent on that to this day. They did the exact same thing in Denver. Paid for property sold and leased back. You don't need a accounting degree to figure out that they had to do that to stay afloat, not because of "flexibility" or some other such nonsense.
Guess who were the buyers on most of that system wide? R+L and Estes.