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Swift Transportation Company (SWFT) |
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WIKI ANALYSIS
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This company completed an initial public offering (IPO) of its stock in 2010. View articles that reference this company. Recent IPOs: Globe Specialty Metals • LogMeIn • Invesco Mortgage Capital • Medidata • Chemspec |
Swift Transportation Company (NYSE:SWFT) is the largest truckload carrier in North America. The company operates a fleet of approximately 16,200 tractors, 76% of which are company owned rather than operator owned. The tractors pull a fleet of 48,600 trailers which operate out of 35 major terminals. Swift focuses on providing regional and short-to-medium transportation between it terminals. This means that the average loaded length of a haul is less than 500 miles. This relatively short haul length decreases the competition that Swift faces from railroad and longhaul trucking companies.[1]
Approximately 67% of Swift's 2009 revenue came from general truckload service. This service consists of one-way movements of goods across the US and Canada along irregular routes. The next largest source of revenue comes from dedicated truckload service, which consists of approximately 19%. This service are regularized routes and transports for customers working under long-term contracts. The remainder of the company's revenue comes from smaller segments such as cross Mexico-US border transport, logistics management services, and rail intermodal services. The company has seen the largest growth in the last two categories which respectively consists of providing network and logistic expertise and arrangements to other tucking companies and shipments of freight to rail services.[2]
The company's initial public offering of stock on the NYSE occurred on December 15, 2010. The company offered 73.3M shares each for $11. This was well below the initial range of $13-$15. The company had also originally planned to sell 67.3M shares. The original deal at the center of the range would have been worth $942.2M. However, the drop in price resulted in the total deal size of $807M. Despite this decrease, the IPO was still the second largest of 2010. Swift's IPO was second only to General Motors (GM)'s record breaking $15.8B IPO. The lead underwriters of the Swift IPO deal were Morgan Stanley (MS), Bank of America (BAC), and Wells Fargo (WFC).[3]
Swift's fiscal year 2009 total revenue was $2.6B. This corresponds to a 24% decrease over the fiscal year 2008 total revenues of $3.4B. Swfit also reported a net loss in 2009 of $436M. This was an increase in the net loss over the 2008 net loss of $147M. However, the total revenue for the first 9 months of 2010 are 5% larger than the total revenues for the same period in 2009.[4]
References
- ↑ SWFT S-1/A 2010 PROSPECTUS SUMMARY "Overview" pg 1
- ↑ SWFT S-1/A 2010 PROSPECTUS SUMMARY "Our Business" pg 2-3
- ↑ Renaissance Capital - IPO Home "Swift Transportation prices IPO at $11; second largest US IPO of 2010
- ↑ SWFT S-1/A 2010 PROSPECTUS SUMMARY "Overview" pg 1
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