YRC Worldwide Inc. (NASDAQ: YRCW): Q2 Earnings Preview 2011

YRC Worldwide Inc. (NASDAQ: YRCW) is scheduled to release its second-quarter earnings before the opening bell on Friday, July 22, 2011. Analysts, on average, expect the company to post a loss of 92 cents per share on revenue of $1.22 billion. In the year ago period, the company posted a loss of $2 per share on revenue of $1.12 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.

In the first-quarter, the Overland Park, Kansas-based company's net loss was $274.13 million, or 53 cents per share, compared to a loss of $273.78 million, or $4.61 per share, in the year-ago period. On an adjusted basis, the company posted a loss of 33 cents per share in the latest quarter. The current year's loss per share was lower due to significant increase in share count during the latest quarter. Operating revenues shrank 29.2% to $1.06 billion from $1.50 billion in the year-ago quarter. Analysts, on average, expected the company to post a loss of 48 cents per share on revenue of $1.11 billion. billion.

Recently, the company announced a rosy financial outlook for fiscal 2011. The company estimated that its fiscal 2011 revenue will rise by a whopping 14% to $4.93 billion compared with $4.33 billion in fiscal 2010. Adjusted earnings before interest, taxes, depreciation, and other charges will be around $209.8 million, a considerable increase of 184% from $73.9 million in fiscal 2010.

Although the U.S. trucking industry is recovering from recession, YRC Worldwide fails to cope with this current recovery. YRC Worldwide has been struggling under the threat of bankruptcy resulting from a significant fall in freight volume coupled with its highly leveraged balance sheet. Although the U.S. trucking industry is recovering from recession, YRC Worldwide fails to cope with this current recovery. The company’s viability depends on its ability to become profitable but unfortunately, we do not expect it to reach that stage any time soon.

The company is facing major challenges including sustaining liquidity, dilution of preferred stock, loss of customers and a competitive LTL (less than truckload) market. Trucking industry remains highly competitive.

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.

Last month, the company said that it has made significant progress in negotiating the terms of the major agreements that are required to achieve the company's financial restructuring by the end of July. The company had previously announced that it had reached an agreement in principle on February 28 that set forth the overall plan for the YRC Worldwide financial restructuring, which will include a very substantial dilution to common shareholders.

Early this month, the company announced that it has obtained commitments for a three-year, $400 million asset-based loan facility that would replace the company's existing asset-backed securitization or ABS facility. YRC said the commitments were a significant milestone as it moved toward closing its financial restructuring plan.

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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.

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YRC Worldwide (NASDAQ: YRCW): Now On Bankruptcy Watch

Shares of YRC Worldwide Inc. (NASDAQ: YRCW) tumbled more than 18% on Thursday on mounting worries that the  trucking company could go bankrupt following the company's failure to reach an agreement on restructuring. The Overland Park, Kansas-based company said in its annual report filed on Monday that it failed to get the necessary approvals for its proposed financial restructuring, which would have swapped some of the company's debt into stock. The failure to reach agreement meant the company failed to meet milestones in its credit agreement. "As a result, the required lenders have the right, but not the obligation, to declare an event of default," the company said in its annual report. The company said it would anticipate filing for bankruptcy should a default be declared. Meanwhile, Standard & Poor's on Wednesday cut the company's credit rating deeper into junk, to CC from CCC- due to "increasing bankruptcy concerns."

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YRC Worldwide Shares Drop After CFO Resigns

Shares of YRC Worldwide (NASDAQ: YRCW) slumped as much as 5% on on Monday after the struggling trucking company said that its chief financial officer Sheila Taylor is stepping down effective March 31. Ms. Taylor has been CFO since October 2009 and prior to that was Vice President of Investor Relations and Treasurer. Board member William Trubeck will take over as interim executive vice president and chief financial officer while the company completes its restructuring efforts, YRC said.

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YRC Worldwide Inc. (NASDAQ: YRCW): Q4 Earnings Preview 2010

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 $1.37 per share on revenue of $1.07 billion. In the year ago period, the company posted a loss of $24.00 per share on revenue of $1.15 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 third quarter,  the company reported a dramatic reduction in its losses as it benefited from lower costs as well as a continued upswing in freight. In the preceding third quarter, the Overland Park, Kansas-based company's net loss was $62 million, or $1.33 per share, compared to a loss of $159 million, or $66.66 per share, in the year-earlier quarter. Operating revenues dropped to $1.14 billion from $1.20 billion. Analysts, on average, expected the company to post a loss of $1.31 per share on revenue of $1.14 billion. At its last earnings call in November, the company said that it expects fourth quarter 2010 adjusted EBITDA in excess of the amount required to meet its rolling-three-quarter covenant level of $100 million.

After falling off a cliff in 2009, truck tonnage still remains below healthy historical levels and freight rates still have room to recover. The trucking industry growth is measured by the American Trucking Association Tonnage Index, which is a survey of a wide variety of trucking and shipping companies. The improved economy has lifted truck tonnage levels to the highest point since mid 2008, and according to the American Trucking Association (ATA), the seasonally adjusted advance index of for hire truck tonnage surged 2.2% last month. The ATA also said that trucking tonnage increased 4.2% in December 2010 compared to December 2009. ATA's Chief Economist Bob Costello said he expects truck freight tonnage to grow modestly during the first half of 2011 before accelerating in the latter half of the year into 2012. In recent months, remarks from major trucking companies suggest that shipment weights and load count are both increasing as various markets recover.

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.

Looking ahead, YRCW plans consolidation of facilities in 2011 to further pare down expenses and optimize the fleet management to create greater density moving to and from its delivery terminals.  The key word is to “right size” the business by closing about 40 terminals across the U.S., representing 12% of the company’s 334 facilities.

Last month, the company announced amendments to its credit agreement and asset-backed securitization facility. Both amendments are intended to provide additional time for the company and its key stakeholders to finalize plans to recapitalize the company's balance sheet.

Early in January, YRC Worldwide announced that the Teamster negotiating committee for the International Brotherhood of Teamsters has agreed to provide additional time for the company and its key stakeholders to finalize plans to recapitalize the company's balance sheet. The conditional extension is until March to reach an agreement on key timelines and until May to complete a deal.

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YRC Worldwide (NASDAQ: YRCW): Q3 Quarter Earnings Preview 2010

YRC Worldwide Inc. (NASDAQ: YRCW) is scheduled to release its third quarter earnings before the opening bell on Friday, November 5, 2010. Analysts, on average, expect the company to report a loss of $1.31 per share on revenue of $1.14 billion. In the year ago quarter, the company reported a loss of $65.50 per share on revenue of $1.31 billion. 

YRC Worldwide, through wholly owned operating subsidiaries offers its customers a range of transportation services. These services include global, national and regional transportation, as well as logistics.

In the preceding second-quarter, the Overland Park, Kansas-based company's net loss was $9.5 million, or 1 cent a share, compared to a loss of $309 million, or $5.20 a share, in the year-earlier period. Revenue declined 8.7% to $1.2 billion. Analysts, on average, expected the company to post a loss of 8 cents per share on revenue of $1.19 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.

Recently, the company said that it expects a third quarter 2010 operating loss within a range of $18 million to $22 million. As a comparison, the company reported an operating loss of approximately $35 million for the second quarter of 2010 when excluding an $83 million non-cash benefit from an adjustment to the fair value of the March 2010 union employee equity award.The company expects third quarter 2010 positive adjusted EBITDA within a range of $42 million to $46 million. For the second and third quarters of 2010, the company expects cumulative adjusted EBITDA within a range of $82 million to $86 million, which exceeds the $50 million covenant level required by its credit agreement. 

For the third quarter of 2010, tonnage per day for YRC National and YRC Regional was 1.2% and 2.1%, respectively, higher than the tonnage per day for the second quarter of 2010. Revenue per shipment during the third quarter of 2010 for YRC National and YRC Regional was 1.9% and 3.7%, respectively, higher than the third quarter of 2009.

At September 30, 2010, the company's estimated cash and cash equivalents were $115 million, restricted revolver reserves were $123 million, and unrestricted availability was $46 million, for a total of $284 million. During the third quarter of 2010 the company repaid $25 million of outstanding borrowings on its asset-backed securitization facility.

The company recently announced that members of the Teamsters union approved a third round of concessions to help make YRCW viable as a transportation entity going forward. The new labor contract extends the previous agreement, slated to expire in 2013, until 2015 and maintains 15 percent wage cuts that were accepted last year. This agreement would help YRC Worldwide to save $350 million a year through March 2015 and improve its competitive position.The company said that the new labor contract addresses the company's competitiveness, re-entry into multi-employer pension funds and progress toward long-term growth. 

Among other developments, the company recently announced an amendment to renew its asset-backed securitization facility. The amended ABS has a facility commitment of $325 million as compared to the company's usage of $195 million at September 30, 2010. The wew maturity date is October 19, 2011. YRC also instituted a 1 for 25 reverse stock split to regain compliance with Nasdaq listing requirements.

In terms of stock performance, YRC Worldwide shares have lost nearly 33% since the beginning of the year.

Full Disclosure: None.