YRC Worldwide's Quarter Lacking Despite Efforts
YRC Worldwide said it lost $309 million, or $5.20 a share, during the second quarter, despite efforts to restore the less-than-truckload giant's financial healt
YRC Worldwide said it lost $309 million, or $5.20 a share, during the second quarter, despite efforts to restore the less-than-truckload giant's financial health
. This compares with the second quarter of 2008, which saw a profit of $35.8 million, or 62 cents per share.
The company announced today an amendment to its credit agreement with its lender to eliminate their third-quarter target on earnings before interest, taxes, depreciation and amortization. The agreement establishes a fourth-quarter covenant requiring $15 million in EBITDA and a first-quarter 2010 covenant of $20 million.
"We have continued to receive support from our lenders as we manage through this severe economic downturn and the implementation of our recovery plan," said Tim Wicks, executive vice president and CFO of YRC Worldwide.
Excluding the company's charges associated with the integration of its Yellow and Roadway national LTL networks, the company's loss per share was $3.53, or $255 million.
The company's regional transportation unit saw total shipments per day drop 22 percent and total tonnage per day drop 26.4 percent. Total revenue per hundredweight, including fuel surcharge, was down 11.9 percent.
"We continue to win new business, and customers have returned shipments to our networks, though it has not happened as quickly or at the levels we were initially expecting," said Bill Zollars, chairman, president and CEO of YRC Worldwide.
During the second quarter, the company has been working on a plan to gets its finances back in line, including a new contract with the Teamsters involving a 5 percent pay cut, an 18-month termination in pension contributions and a reduction in health and welfare contributions, as well as a deal with its pension funds to use part of its real estate assets as collateral in lieu of pension contribution payments during the second quarter. The Teamsters are currently voting on the proposed contract.
"The second quarter was focused on executing our comprehensive plan to realize efficiencies from the YRC integration, restore financial strength and position our operating companies for future success," Zollars said.
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