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ABF | The reason YRC is pursing ABF's asets

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nothumbleenough

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From a forward looking statement (8K) issued a few months back, Mr. Welch listed this as one of the most important things to be done if YRC is going to survive. "Our ability to finance the maintenance, acquisition and replacement of revenue equipment and other necessary capital expenditures;" Filed with the S.E.C. on February 8th, 2013.

Mr. Welch meets with Judy on March 22, 2013. Six weeks after original statement issued on replacing revenue equipment. Report: YRC made bid to acquire ABF Freight (Updated) | Business, Political, and Cultural News in Fort Smith and Northwest Arkansas


Listing of ABF equipment. ABF Freight System, Inc.*-*Equipment

20,000 28ft. pup trailers. Maintained well and worth somewhere roughly near $10,000 each. $200 million in value
1300 road tractors with roughly 200k in miles on average and well maintained.Approximately 55k in value. $ 71 million in value
2400 city tractors with roughly 700k in miles on average and well maintained. Approximately 20k in value. $ 48 million in value
Total Value excluding real estate $319 million.

ABFS Stock Quote - Arkansas Best Corp. Stock Price Today (ABFS:NASDAQ) - MarketWatch Current market capitalization is $491,580,000/ Current share price of $19.10= 25,737,172 total shares outstanding. So, if the stock price drops (because the TA is voted down June 30) to $12.40, YRC can purchase ABF for $319 million, get all the equipment listed above and all the owned real estate not mentioned but worth substantial value and be removed of the withdraw liability of hundreds of millions of dollars as long as they make the purchase on July 1st, the day we no longer have a contract. Obviously, the lower the stock would fall after a rejection of the TA, the more discount YRC would get. A $9 share price could buy the company for $231 million. I hope everyone get the point.

This is why a lender would increase the debt of YRC to make such a deal. This is very real and those that think ABF wouldn't sell once the contract is voted down are not looking at the reality of our situation.
 
nothumbleenough said:
From a forward looking statement (8K) issued a few months back, Mr. Welch listed this as one of the most important things to be done if YRC is going to survive. "Our ability to finance the maintenance, acquisition and replacement of revenue equipment and other necessary capital expenditures;" Filed with the S.E.C. on February 8th, 2013.

Mr. Welch meets with Judy on March 22, 2013. Six weeks after original statement issued on replacing revenue equipment. Report: YRC made bid to acquire ABF Freight (Updated) | Business, Political, and Cultural News in Fort Smith and Northwest Arkansas


Listing of ABF equipment. ABF Freight System, Inc.*-*Equipment

20,000 28ft. pup trailers. Maintained well and worth somewhere roughly near $10,000 each. $200 million in value
1300 road tractors with roughly 200k in miles on average and well maintained.Approximately 55k in value. $ 71 million in value
2400 city tractors with roughly 700k in miles on average and well maintained. Approximately 20k in value. $ 48 million in value
Total Value excluding real estate $319 million.

ABFS Stock Quote - Arkansas Best Corp. Stock Price Today (ABFS:NASDAQ) - MarketWatch Current market capitalization is $491,580,000/ Current share price of $19.10= 25,737,172 total shares outstanding. So, if the stock price drops (because the TA is voted down June 30) to $12.40, YRC can purchase ABF for $319 million, get all the equipment listed above and all the owned real estate not mentioned but worth substantial value and be removed of the withdraw liability of hundreds of millions of dollars as long as they make the purchase on July 1st, the day we no longer have a contract. Obviously, the lower the stock would fall after a rejection of the TA, the more discount YRC would get. A $9 share price could buy the company for $231 million. I hope everyone get the point.

This is why a lender would increase the debt of YRC to make such a deal. This is very real and those that think ABF wouldn't sell once the contract is voted down are not looking at the reality of our situation.
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I will ask you again since you refused to answer... Is the UPACK, AND RELSO CUBE revenue included into the ABF total revenue
 
If the vote fails to pass YRC won't get ABF for $319 million. Just because a stock plummets doesn't mean YRC can buy all the stock for the listed price. The share holders have to agree to the sale. All the acquisitions at YRC were kept secret so the stock price of the acquired companies wouldn't soar on the news.

ABF share holders could get a $10.00 premium over the listed price or more to entice them to sell. YRC would make an offer. The sale won't be contested so it's a question of how much YRC is willing to pay over the listed stock price which already has soared on the news. They just have to call JP Morgan and tell them they have another customer to purchase.

YRC sold off half the network to pay for the acquisitions, fees etc. And they'll sell half the ABF network in time but who knows how much equity ABF has in the network?
 
nothumbleenough said:
As I have understood but cannot independently varify is that the assets are leased through a subsidary leasing company of ABC.
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Isn't it true that ABC does not want the competition to know how much it profits from Relo's and Upacks, so that is why they don't include them
 
and be removed of the withdraw liability of hundreds of millions of dollars as long as they make the purchase on July 1st
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Can you please tell me why is it that they would not have to assume ABF's underfunded pension liability? If YRC doesn't assume it under a purchase of ABF then wouldn't they just inherit it as the only major carrier left in the funds?
 
Crystal said:
Can you please tell me why is it that they would not have to assume ABF's underfunded pension liability? If YRC doesn't assume it under a purchase of ABF then wouldn't they just inherit it as the only major carrier left in the funds?
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On June 30th they have a contractual obligation, and if we reject the TA, we don't have a contract on July 1st, therefore they, the new owners do not have a contractual obligation.
 
nothumbleenough said:
On June 30th they have a contractual obligation, and if we reject the TA, we don't have a contract on July 1st, therefore they, the new owners do not have a contractual obligation.
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I don't know about that. I doubt that it can be that simple. I thought that when 1 company buys another it assumes all of the liabilities. But you may be right
 
papajohn said:

I will ask you again since you refused to answer... Is the UPACK, AND RELSO CUBE revenue included into the ABF total revenue
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Papa John, I cannot tell you how or where they put the revenue as it concerns UPACK and or Relo Cube. I am confident that the revenue gets reported and is absolutely in the numbers when ABC reports a net loss of 13.4 million in 1q2013.

If you believe otherwise, the table is yours to prove because information is KING!
 
Crystal said:
I don't know about that. I doubt that it can be that simple. I thought that when 1 company buys another it assumes all of the liabilities. But you may be right
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Please think about this rationally. Why would the new owners need a labor contract if they simply wanted the companies assets?
 
nothumbleenough said:
Concerning how they lease all their equipment, I believe your statement is accurate.
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All of the trucks I have driven the registration shows the owner as ABF Freight System except for the 10 series, they show 2 different leasing companies. But I have seen a few of the 10's show ABF as the owner.
 
Most of the equipment has been paid for since 1999. They did borrow some after the concession was turned down. ABF owns & sells equipment instead of trading or turning back into a lease company. Some of the debt is from borrowing to purchase new equipment. Usually LTL equipment is more valuable to LTL companies. The ABF fleet is newer & better maintained than other fleets. All of the road fleet & much of the city fleet is 2007 & later EPA compliant & is legal for all states, cities &ports.
 
Crystal said:
I don't know about that. I doubt that it can be that simple. I thought that when 1 company buys another it assumes all of the liabilities. But you may be right
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That about says it. YRC takes on all debt, liabilities, cash and yes the pension-under YRC's contract. ABF would join New Penn and Holland as subsidiaries of YRC. Called the A team
 
nothumbleenough said:
Papa John, I cannot tell you how or where they put the revenue as it concerns UPACK and or Relo Cube. I am confident that the revenue gets reported and is absolutely in the numbers when ABC reports a net loss of 13.4 million in 1q2013.

If you believe otherwise, the table is yours to prove because information is KING!
Click to expand...

Do you think it is safe to say that the company don't want our competition to know how much profit there is with Relo, and Upacks, so they don't include it as ABF revenue, and will show up in ABC revenue.
 
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