XPO Logistics (Express1) Raises $137 Million in Stock Offering

[Bruno]

XPO Logistics Raises $137 Million in Stock Offering

William B. Cassidy, Senior Editor | Mar 21, 2012 6:05PM GMT
The Journal of Commerce Online - News Story
Global Trade | Supply Chain Management | Freight Brokers | Logistics + Economy


Proceeds may be used to fund acquisitions in freight brokerage market
XPO Logistics raised $136.7 million through a public stock offering, exceeding its initial expectations as it secured funds for acquisitions and expansion.
The non-asset expedited transportation and freight brokerage business hoped to raise $126 million when it launched its offering earlier this month.
XPO sold 9.2 million shares of common stock, including 1.2 million shares that went to the investment banking firms that underwrote the public offering.
The Buchanan, Mich.-based company said it intends to use the proceeds of the stock offering for “general corporate purposes,” including potential acquisitions.
XPO, formerly Express-1 Expedited Solutions, increased operating revenue 12 percent in 2011 to $177.1 million and reported a net profit of $759,000.
Contact William B. Cassidy at [email protected]. Follow him on Twitter at @wbcassidy_joc

 

[OntarioVanMan]

Hey now they can afford give the dime back and the nickle....

 

[purgoose10]

Hey now they can afford give the dime back and the nickle....

Now Now OVM you are kidding I know. John is probably one if not the only owner that gives back and keeps just a small fraction of the revenue produced by his operators. He's doing more than expediting and doesn't try to take advantage of his people. People like really large carriers think they can completely capture a market with size and price (mostly lower) making it's contractors work for a lower rate. You only get so much from a dollar. I still hear owner operators say they are making money at a dollar a mile. Of course their not here very long, but the fact of the matter is (in my opinion) smaller well managed company's that don't have greedy owners will prosper and be more respected.

 

[OntarioVanMan]

Now Now OVM you are kidding I know. John is probably one if not the only owner that gives back and keeps just a small fraction of the revenue produced by his operators. He's doing more than expediting and doesn't try to take advantage of his people. People like really large carriers think they can completely capture a market with size and price (mostly lower) making it's contractors work for a lower rate. You only get so much from a dollar. I still hear owner operators say they are making money at a dollar a mile. Of course their not here very long, but the fact of the matter is (in my opinion) smaller well managed company's that don't have greedy owners will prosper and be more respected.

I made money over there....no problem....they had tons of miles to run....and that is part of my problem....personally I don't want to run as many miles for less money...It was the ay it was done....the promises....oh the dime will come back, this is only temporary....aftre a few years it did indeed come back and the it left, it came back...it left, came back...as THEY felt fit....no notice nothing....to entice one to take a load they'll say oh this one pays the .80 and one feels like they won the lottery......the Sprinter rate plus FSC is one of the better rates...I give them credit there...1.00 + FSC....not too bad if ya got some sprinter loads mixed with CV loads it kind of averaged out a bit higher....pays always on time, some good dispatchers...all in all the second best carrier out there....notice the second best....LOL

 

[purgoose10]

I made money over there....no problem....they had tons of miles to run....and that is part of my problem....personally I don't want to run as many miles for less money...It was the ay it was done....the promises....oh the dime will come back, this is only temporary....aftre a few years it did indeed come back and the it left, it came back...it left, came back...as THEY felt fit....no notice nothing....to entice one to take a load they'll say oh this one pays the .80 and one feels like they won the lottery......the Sprinter rate plus FSC is one of the better rates...I give them credit there...1.00 + FSC....not too bad if ya got some sprinter loads mixed with CV loads it kind of averaged out a bit higher....pays always on time, some good dispatchers...all in all the second best carrier out there....notice the second best....LOL

That's good I don't know anything about them. I am just talking in general about very large carriers. They might be the second best carrier out there but the fact of the matter is they still have to answer to their stock holders. Sprinter rates are fine I guess at a buck a mile but what happens when all the carriers won't hire any c/vans and we all have Sprinter types? A 50K or 60K more than likely cannot operate at a buck a mile and make a profit at the current freight and rate level. What would happen if the big O stopped the FSC all together? Thats a topic for conversation. Don't say it can't happen. I know we will raise the rates. Good for a month then everyone gets on the rates negotition table and hear we go again. Isn't trucking fun???