Western Railroad Discussion > Schneider National Goes Public

Schneider National is going public and expects to raise almost $600 million. Stock will be tendered at $18 to $20 per share

Schneider National founded in 1935 has been the largest family owen trucking operation with Estes now bing the largest privatley owned trucking company

The monies from the IPO will be used to pay down debt of about $150 million, purchase chassis and discontinue leasing chassis and make acquisition of other trucking operations such as Watkins-Shepard, a company that specalize in last mile delivery of large items i.e. washer dryers furniture

Revenue Total all Divisions  $4.0 Billion up 2.2 percent vs 2015

Truckload Revenue     $2.2 Billion up 5.8  percent vs 2015

Dedicated Revenue     $682.5 million  up 9 percent vs 2015

Intermodal Revenue    $757 million down 15.5 percent vs 2015

Logistics  Revenue     $737 million up 15.5 percent vs 2015

Operating results from the above revenues were not published and since being private they do not seem to be available

FYI

IFO FROM  Journal of Commerce Mar 24 2017

Dale Smith

 

Very interesting--I wonder if they want to go head-to-head with JB HUNT, and need the capital to do it?

The company I work for (OAK HARBOR FREIGHT LINES) is an LTL company, also still family owned, and we just had our 100th anniversary.  We're not national like ESTES and others, but maybe someday...and maybe that will come with some intermodal moves.

I don't think it is so much to increase competition with JB Hunt as it is to position company for the future for the Schnieder family as the up coming family members may not want to be involved.

I am surprised that Oak Harbor hasn't been purchased by one of the regional ltl companies but they are all non-union except Reddaway a YRC company

I enjoyed my time in ltl business at Transcon Lines and Lee Way it just gets in your blood and no day was the same--always challenge

Dale Smith

Posted from iPhone

Transitioning from generation to generation control of a family business is always a challenge.  Some family members see the business as a piggy bank to finance their lifestyle. Others see it as an opportunity to dive in and make an even greater fortune. Some don't want to give up control, even though estate taxes may clean out the estate. Especially if there's a lot of bonds, mortgages, etc.

Floating stock for partial ownership is a way to create a market to buy out family members who want out of the business, too.

Lackawanna484 Wrote:
-------------------------------------------------------
> Floating stock for partial ownership is a way to
> create a market to buy out family members who want
> out of the business, too.

In past BRK shareholder meetings, Warren Buffett has mentioned his desire to buy businesses, and this is one of the criteria that was implied (owners wanting to hand off), but I don't think it was directly mentioned. I wonder if Schneider owners made the phone call to Omaha to see if he was interested? Or did they get rebuffed? (Rebuff = management might not have been "good enough.")

My biased opinion is weary of IPOs, so here's a good luck wish to Schneider National.