Daseke Turnaround Gets ‘Positive Outlook’ in 2020

Daseke Turnaround Gets ‘Positive Outlook’ in 2020
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Daseke, a flatbed carrier, following a huge third-quarter earnings beat, has received ‘positive outlook’ designation from S&P Global Ratings.

Daseke is Rise is Very Impressive

The rating agency raised its outlook on Daseke from negative to positive. This is because of a recent improvement in the company’s operating performance and credit profile. Daseke has a positive outlook which reflects its better-than-expected operating performance. As well as from its credit metrics in 2020. They have an expectation for continued improvement in 2021, the report states. The credit ratings were affirming for Daseke’s “B-” as well.

The Company’s Rating Ascent Upward

In early 2019, the Addison, Texas-based company turnaround took place with the addition of a much more focused leadership with improved integration of the approximately 20 acquisitions the flatbed carrier had made in the decade following its 2009 founding. Its plan consists of the roll-up of its separately operated network of carriers. It divested its oil rig transportation unit. The company disposed of underutilized equipment and reducing headcount.

The third-quarter report reflects a 22-cents-per-share earnings performance that reportedly beat analysts’ calls for a slight loss. It was based on the work done to revamp the company. This result is set ahead of the prior-year loss of $4.25 per share. It would include more than $300 million in impairment charges. Asset valuations from past acquisitions were reduced to reflect the current market.

There was a 16% year-over-year decline in revenue through the first nine months of 2020, this was according to an S&P report. There is a noted improvement from the internal integration and cost-savings initiatives. They drove the adjusted earnings before interest, taxes, and depreciation. In addition to an amortization margin 590 basis points that higher year-over-year in the recent period.

Management was fast to caution analysts that the recent performance was not probable. It was not likely the new base off of which to build a linear progression. This took place on a third-quarter conference call.

On the third-quarter conference call, management was quick to caution analysts that the recent performance was not likely the new base off of which to build a linear progression.

   

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