TT: YRC posts narrowed Q3 loss, will change corporate name to Yellow

03/11/2020

TRANSPORT TOPICS reports:

YRC Worldwide Inc. narrowed its losses during the third quarter, announced plans to change its name to Yellow and expanded its board of directors.

The Overland Park, Kan., motor carrier said its Q3 net loss fell 87.5% to $2 million from $16 million in the same period a year earlier. Diluted earnings per share decreased to 4 cents a share from 48 cents. Revenue dipped 5.9% to $1.2 billion from $1.3 billion.

The company is undertaking some corporate restructuring that will consolidate multiple brands’ operating systems into a single platform and upgrade its fleet of aged tractors and trailers. A $700 million CARES Act federal loan made to YRC in July provides the funding for the initiatives. The CARES Act loan is part of a federal stimulus program to shore up what the government considered essential businesses. YRC provides freight services for the military. The U.S. government gained a 30% stake in the company and broad federal oversight as part of the deal.

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The 8-K filing is here (2 November).

“During the quarter we transitioned to managing our busines in a tighter capacity environment and setting the stage for 2021. Improving tonnage trends late in Q3 has allowed LTL pricing to firm up with less volatility expected moving forward” said Darren Hawkins, chief executive officer.

“We ended the quarter with just over $450 million in liquidity with a reaffirmed focus on managing our operations through the changes we’ve seen over the past 6 months, which has put us in a position to invest back into our business as we move forward. At the beginning of the quarter we secured a commitment with the US Treasury, and in October we received the first $75 million of the $400 million in Tranche B funds. These funds are dedicated for investment in our fleet”, continued Hawkins.

Stock down 7.3% on Tuesday, 26% lower than its previous highs in October.