Subscribe to our free, weekly email newsletter!


LTL news: YRCW completes its long-awaited financial restructuring

By Staff
September 19, 2011

The financial restructuring of less-than-truckload services provider YRC Worldwide (YRCW)  appears to be complete based on news late last week noting that company shareholders unanimously voted to have YRCW common stock diluted, according to media reports.

This news follows a $500 million restructuring announced in July, which included a new $400 million lending agreement.

Before the restructuring, YRCW had 48 million outstanding shares. After the restructuring, it has 1.9 billion shares, meaning former shareholders will own just 2.5 percent of YRC. The other 97.5 percent is now owned by new shareholders comprised of lenders, bondholders, and labor union members, according to Reuters.

  The restructuring included a radical 1-9 reverse stock split which means a new set of shareholders will own the company, with former shareholders’ value sharply diluted. Existing stockholders will now own just 2.5 percent of the company under this new deal.

In the second quarter of this year, YRCW reported a net loss of $39 million on $1.257 billion revenue, compared to a net loss of $10 million on $1.119 billion revenue in the second quarter of 2010, which included an $83 million after-tax benefit.

Following this news on Friday, shares of YRCW dropped nearly 70 percent to 10 cents per share.

With this restructuring now complete, YRCW is focused on the future and regaining market share it has lost over the last four years.

CEO James Welch, whom replaced Bill Zollars earlier this year, told the Kansas City Star that over the last eight weeks the company’s on-time delivery rates have increased to 94 percent from 88 percent.

When the restructuring was first announced in July, YRCW officials said it would enhance the company’s liquidity and provide a “runway for the continued growth in revenues and earnings.”

Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

UPS today announced diluted earnings per share of $1.32 for the third quarter 2014, a 13.8% improvement over the prior year period. Operating profit increased 8.3%, resulting from balanced growth across all three segments.

The Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that U.S. trade with its North America Free Trade Agreement (NAFTA) partners Canada and Mexico increased 4.4 percent from August 2013 to August 2014 at $100.6 billion.

As expected, global trade dipped from August to September but still saw annual gains, according to data issued this week by Panjiva, an online search engine with detailed information on global suppliers and manufacturers.

Transportation and logistics merger and acquisition (M&A) activity in the third quarter saw annual gains, which were driven by smaller deals in the trucking logistics, shipping, and passenger air sectors, according to data issued in the Intersections report by PwC this week.

With the holidays rapidly approaching, it appears retailers are not quite done getting inventory set up and on the shelves in time for what is expected to be a fairly active shopping season. That much was evident based on recent data for September volumes issued by the Port of Los Angeles (POLA) and the Port of Long Beach (POLB).

Article Topics

News · LTL · YRC Worldwide · YRC · Less-Than-Truckload · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA