Wednesday, May 4, 2011

YRC Worldwide Inc. (NASDAQ: YRCW): Q1 Earnings Preview 2011

YRC Worldwide Inc. (NASDAQ: YRCW) is scheduled to release its fourth-quarter earnings before the opening bell on Friday, February 4, 2011. Analysts, on average, expect the company to post a loss of $1.51 per share on revenue of $1.07 billion. In the year ago period, the company posted a loss of $8.25 per share on revenue of $1.06 billion.

YRC Worldwide Inc., through its subsidiaries, provides various transportation services worldwide. YRC Worldwide, through wholly owned operating subsidiaries offers its customers a range of transportation services.

During the economic downturn, YRC lost more than $2.2 billion, and annual revenues fell by nearly one-half in 2009 compared with 2006. However, the company has now begun to show signs of stabilizing. 

In the fourth-quarter,  the Overland Park, Kansas-based company's net income was $23 million, or 49 cents per share, compared to $120 million or $41.06 per share in the year-ago period. The per share amounts reflect the 1:25 reverse stock split effective on October 1, 2010. Average shares outstanding were 47.6 million compared with 2.9 million last year.Consolidated operating revenue for the quarter grew 3.9 percent to $1.092 billion from $1.050 billion in the year-ago period. Analysts, on average, expected the company to post a loss of $1.37 per share on revenue of $1.07 billion.

The company has been through a massive restructuring and downsizing over the past two years while enduring huge losses. In addition to closing hundreds of terminals, laying off about one-half its work force and sharply cutting compensation, YRC avoided bankruptcy in late 2009 when most of its bondholders agreed to convert debt to equity and gain ownership of most of the company.

The struggling trucking company recently signed definitive agreements to pump $100 million in new capital into its beleaguered balance sheet and eliminate $140 million or more in debt, as well as replace an expiring asset-backed securitization facility. The  financial overhaul that would dilute the ownership stakes of existing shareholders by 97.5%, among other thing.

Recently, Fitch Ratings downgraded YRC’s default rating from “CC” to “C,” which is defined as “default is imminent or inevitable,” and downgrade YRC’s secured bank credit facility from “B-” to “CCC,” indicating that default is a real possibility. The ratings agency warned that an adverse verdict in the summer about competitor ABF Freight System Inc.’s challenge of the Teamster concessions also could force YRC into bankruptcy.

Full Disclosure: None.
Related Posts with Thumbnails

Wikinvest Wire