YRC delivers results on shareholder promise
July 27, 2010 - LM Editorial
Following last week’s positive forecast, YRC Worldwide’s stock price began surging to 30 cents since hitting a low of 11 cents a share July 7, after being put under extreme pressure in the recent past.
The stock rose 55 percent in the five-day period from July 19 through July 23, before climbing 24 percent to 41 cents in trading yesterday.
Earlier this month, the company told investors to get ready for some good news:
“The company expects to record an $83 million non-cash reduction to its equity-based compensation expense related to its March 2010 union equity-based awards. This expense reduction reflects the adjusted fair value of these awards which were re-measured as of the June 29, 2010 shareholder meeting when shareholders formally approved the issuance of union stock options to replace previously issued union stock appreciation rights. The expected expense reduction by segment is YRC National $64.3 million, YRC Regional $18.3 and YRC Truckload $0.4 million. During the first quarter of 2010 the company recorded a $108 million non-cash charge related to the same March 2010 union equity-based awards.”
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