YRC Worldwide Projects Earnings Progress

YRC Worldwide Projects Earnings Progress

Beleaguered YRC Worldwide expects to report a milestone on a path back to profitability, projecting an adjusted EBITDA of at least $24 million for the second quarter when it releases its financial results Aug. 3.

The adjusted earnings before interest, tax, depreciation and amortization could climb as high as $36 million, the company said. That includes $9 million to $11 million in losses from its YRC Logistics subsidiary, most of which it sold last month to a Texas-based venture capital firm.

The company also said it had increased its liquidity by $12 million in the quarter, raising its cash reserves from $130 million on March 31 to $142 million on June 30.

Company officials have said repeatedly business is improving, with more freight flowing back to its national and regional less-than-truckload carriers. Tonnage per day at its national LTL unit was up 11 percent from the first quarter, while freight volume increased 15.2 percent at its regional carriers.

But higher operating costs increased “net cash usage” in the quarter, pressuring YRC Worldwide’s liquidity and leading to the sale of most of YRC Logistics.

It continues to sell terminals and other properties, including a terminal in Calgary, Alberta, purchased by Estes Express partner TST Overland Express.

YRC Worldwide expects its regional subsidiaries — New Penn, Holland and Reddaway — to have an operating profit in the second quarter. It has made no such forecast for YRC, its nationwide LTL carrier, or the company as a whole. YRC Worldwide lost $274.1 million in the first quarter.

Contact William B. Cassidy at wcassidy@joc.com.