Thursday, December 31, 2009

YRCW: An Interview with CEO Bill Zollars

Trucking logistics firm YRC Worldwide’s CEO Bill Zollars called this morning to talk about the company’s announcement it achieved sufficient buy-in for a debt-for-equity swap meant to keep the company out of bankruptcy.

Sounding reserved and somewhat fatigued, Mr. Zollars emphasized the company’s in “much better shape” and that much remains in the hands of the new company owners, the bond holders who tendered.

YRC shares this morning are down 14 cents, or 14%, at 85 cents.

Herewith, some feedback from Mr. Zollars. Full interview......

YRC Worldwide Successfully Reaches Thresholds in Its Debt-for-Equity Exchange Offers

--88% of Notes Tendered for New Equity

--Company Achieves Major Milestone in Its Comprehensive Plan

YRC Worldwide Inc. announced today that it was successful with its previously announced debt-for-equity exchange offers having received tenders for approximately $470 million in par value, representing approximately 88% of the company's outstanding notes, including $105 million, or 70%, of its 8 1/2% Notes, $217 million of its 5.0% Notes, and $148 million of its 3.375% Notes, representing 94% of aggregate total of the 5.0% and 3.375% Notes. Under the terms of the transaction the company will issue to tendering noteholders approximately 37 million shares of common stock and 4.346 million shares of Class A convertible preferred stock which, together on an as-if converted basis, will represent approximately 94% of the company's total issued and outstanding common stock.

As part of the previously announced amendments to its credit agreement, the company will be able to defer approximately $19 million of fourth quarter lender interest and fees and will have access to the $159.8 million revolver reserves under the applicable terms of its $950 million revolver. As of December 31, 2009, the company had not used any portion of the revolver reserves. The company expects to defer additional lender interest and fees of $20 to $25 million per quarter during 2010 depending upon its usage level of the credit agreement and asset-backed securitization facility. The company will begin the settlement process today after receiving electronic confirmation of a portion of the notes that were submitted for tender after business hours last night, and the company anticipates that the settlement of all tendered notes will be completed on or before Tuesday, January 5, 2010.

"The success of this note exchange marks a major turning point for YRC Worldwide -- with our significantly restructured balance sheet and enhanced liquidity, we will move forward from a more solid financial foundation," stated Bill Zollars, Chairman and CEO. "Our comprehensive plan could not have been accomplished without the collective cooperation and continued support of our many stakeholders, including our lenders, our noteholders, and our employees. We remain focused on delivering on our promise of Confidence Delivered for our customers."

Wednesday, December 30, 2009

YRC: We'll be open for business Monday

YRC Worldwide Inc. is trying to assuage the concerns of customers, employees and shareholders as time is running out on the company’s plan to exchange some of its debt for stock in a bid to stave off bankruptcy.

The Overland Park, Kan.-based company said Wednesday that it “will be open for business as usual on Monday” after an analyst said the company could cease operating after Jan. 1 if it fails to persuade a required percentage of bondholders to hand over as much as $537 million in YRC debt for a majority stake of its common shares.

David Ross, with Stifel Nicolaus & Co., said in a research note that YRC must pay $19 million in interest and fees Thursday but has yet to get open access to a $106 million credit line. Full Story.......

YRCW: This Cat’s Got More Lives

Beleaguered transportation logistics firm YRC Worldwide, despite appearing to be on the ropes with its proposed debt-for-equity swap, and facing a possible bankruptcy, could still come out okay, according to a couple of analysts following the company.

David Silver of Wall Street Strategies and Lee Klaskow of Longbow Research both think the company will come up with a way to secure the support of bondholders who’ve not yet fully committed themselves to exchanging their notes for shares. Those hold-outs are believed to be looking to get more in a bankruptcy filing, on the order of 50 cents on the dollar versus what may amount to 20 cents on the dollar for the offer YRC is making.

It’s possible YRC may offer preferred shares or dividends to entice the remaining holdouts, says Silver in a phone interview this morning, without claiming any privileged knowledge of YRC’s intentions. Bondholders hoping to clean up in bankruptcy are somewhat naive, he believes. “The bankruptcies of General Motors and Chrysler this year were a turning point for bankruptcy in this country,” says Silver. “Courts have shown themselves to be very sympathetic to companies.” Full Story....

Analyst Says YRC Could Close Doors This Weekend

An analyst said Wednesday that YRC Worldwide Inc., one of the nation's largest trucking companies, could file for bankruptcy and close its doors as early as this weekend despite its effort to complete a critical debt-to-exchange offer.

YRC, based in Overland Park, Kan., extended its offer to bondholders for the sixth time. It now expires midnight Wednesday. The offer is considered a last resort for the company because it will free up much-needed cash. But it would also make current shareholders' stakes virtually worthless.
The company said it made progress in its push to get debt holders to swap their bonds for equity, though it still doesn't have enough. And time is running out.

YRC needs to make a $19 million interest and fee payment on Thursday. It said earlier this month that if it didn't have access to some extra cash by Dec. 31, its "liquidity position would become unsustainable."

If YRC does not complete the bond exchange, the company's last chance to avoid bankruptcy is a waiver from its lenders, according to Stifel Nicolaus analyst David Ross. If that doesn't happen, the company could file bankruptcy and close its doors as early as this weekend, Ross predicts. Full Story.......

Teamsters Cancel Protest as Bondholders Reveal Positions

Union Promises to Monitor, Pressure Bondholders to Protect 30,000 Jobs

The Teamsters Union announced that it will postpone a protest planned today at the headquarters of Brigade Capital Management in New York after conversations with Brigade that the hedge fund does not currently own any YRC Worldwide Inc. bonds. In addition, UBS has indicated they have tendered their bonds in the exchange.

The Teamsters will continue to monitor the situation and will plan future protests at these institutions and others if contrary evidence surfaces. All bondholders need to understand what is at risk if they do not participate in YRCW's debt exchange. The company has extended the bond exchange deadline to 11 p.m. EST Dec. 30.

"There is too much at risk for bondholders to sacrifice the livelihood of 30,000 workers for the marginal profits they might realize by their continued inaction," said Teamsters General President Jim Hoffa. "It's a simple choice -- help a good, U.S. company recover and protect 30,000 jobs or allow our struggling economy to take another devastating hit. I think the choice is clear -- bondholders must now do their part."

Bondholders have two ways to be helpful -- take part in the exchange or sell to someone that will. There are existing bondholders that are willing to purchase these bonds.

Last week, the Teamsters Union also called upon the Securities and Exchange Commission, state attorneys general, state insurance commissioners and congressional oversight leaders to investigate the activities of bondholders and traders involved in this exchange.

National trucking sector seeing some recovery

If the national trucking industry is the bellwether for the national economy, then Bob Costello’s expectation of “moderate growth” in the trucking sector are welcome words.

The American Trucking Associations’ advance seasonally adjusted (SA) For-Hire Truck Tonnage Index increased 2.7% in November, following a 0.2% contraction in October. The latest gain boosted the index from 103.6 (2000 = 100) in October to 106.4, its highest level in a year, according to the ATA report.

Compared with November 2008, SA tonnage fell 3.5%, which was the best year-over-year showing in 12 months. However, the November 2008 comparisons were also down considerably from 2007 figures.

“Slowly, but surely, truck freight has started the recovery process and November’s solid increase is a very positive sign,” Costello, the senior economist for ATA, noted in the statement. Full Story.....


Handful of Bondholders Jeopardizing Tens of Thousands of Jobs

The Teamsters Union is calling on the small number of bondholders that are standing in the way of YRC Worldwide Inc.’s financial restructuring to take part in debt-to-equity exchange.

The union believes that hedge funds Brigade Capital Management and JMB Capital Partners, and banks including UBS, Barclays and TD Bank, hold positions and have not tendered. The union will protest Wednesday at the headquarters of Brigade Capital Management in New York to urge the hedge fund to exchange or sell.

“All bondholders need to recognize that the livelihoods of 30,000 Teamster members depend on their willingness to take part in the exchange,” said Teamsters General President Jim Hoffa. “The workers, the pension funds, the secured lenders, a majority of bondholders and other stakeholders have made sacrifices and contributed to the restructuring.”

“Now it is time for the remaining bondholders to recognize what is at stake and do their part. The company’s customers need to know there is a light at the end of this tunnel.”

Bondholders have two ways to be helpful – take part in the exchange or sell to someone that will. There are existing bondholders that are willing to purchase these bonds.

“It is unconscionable that these bondholders are playing chicken with tens of thousands of lives for minimal financial reward, either hoping for a better deal or they have derivative coverage,” said Teamsters Freight Division Director Tyson Johnson. “They need to recognize the sacrifices already made by these workers and the devastating affect a bankruptcy would have on their lives.”

Last week, the Teamsters Union also called upon the Securities and Exchange Commission, state attorneys general, state insurance commissioners and congressional oversight leaders to investigate the activities of bondholders and traders involved in this exchange.

Teamster members and leaders will protest outside of Brigade Capital Management to send a message that the Union and its members pension funds – the source of capital for many of these institutions – will long remember if if they contribute to YRCW’s failure.

WHAT: Teamsters Hold Protest at Brigade Capital Management

Brigade Capital Management
399 Park Avenue, Suite 1600
New York, New York 10022

WHEN: Wednesday, December 30, 2009
11:30 a.m. - 1 p.m.

Tuesday, December 29, 2009

YRC Worldwide Extends Debt-for-Equity Offers to December 29

81% of Notes Tendered to Date

YRC Worldwide Inc. announced today that it has extended the expiration date for its previously announced exchange offers until 11:59 p.m., New York City time, on December 29, 2009, unless further extended.

As of 11:59 p.m., New York City time, on December 28, 2009, 92% of the aggregate principal amount of the 5.0% and 3.375% Notes and 53% of the 8 1/2% Notes had been tendered into the exchange offers, representing 81% of the company's outstanding notes. As of the prior expiration date on December 23, 2009, 90% of the aggregate principal amount of the 5.0% and 3.375% Notes and 53% of the 8 1/2% Notes had been tendered into the exchange offers, representing 80% of the company's outstanding notes.

The company said that it continues to work with its noteholders through this holiday period to increase the level of support for this recapitalization, which is a key part of the comprehensive plan the company is implementing to place it on a more solid financial base.

Monday, December 28, 2009

One truckstop waitress can be worth a whole herd of Wall Street analysts

A little more than two years ago I wrote a column here (in Hebrew) called "Things you see from the driver's seat." It dealt with remarks by William Zollars, the chairman and CEO of a transportation company called YRC Worldwide. That was at the beginning of the credit crisis, long before the economic crash of late 2008.

All of the captains of the U.S. economy at the time, including Treasury Secretary Henry Paulson, Federal Reserve Chairman Ben Bernanke and President George W. Bush, as well as the vast majority of Wall Street analysts were saying that perhaps a slowdown of the U.S. economy could be expected, but there wouldn't be a deep recession. Stock market investors apparently agreed with them, since the indexes were close to their all-time highs.

But in an interview with the CNBC financial television network Zollars said he didn't care what all the Wall Street analysts and the Washington economists were saying. Full Story.....

UPS trucker is Roadshow's Dream Driver for 2009

Thirty years ago at his high school in Scotts Valley, Dan Casas picked a bad day to go hot-rodding out of the parking lot in his 1968 Mustang, spinning dirt everywhere. His father, a CHP officer, happened to be driving up, and Dan was busted big-time.

His car keys were taken away for 30 days. Even worse, his mother drove him to school in a pink Chevy, honking her horn in the drop-off spot to broadcast his shame to all. "That was pretty rough for a high schooler," he said.

Dan learned his lesson, and then some. Today the 47-year-old Aptos big-rig driver — a model of carefulness, courtesy and kindness behind the wheel — is the winner of Mr. Roadshow's annual Dream Driver contest.

"This is very cool," said Casas, who drives a UPS truck between Salinas and Fresno. "As a professional driver, I am very honored."

Casas was nominated by his wife, Joy, who said, "It is hard to talk about him without mentioning driving. It is what he does and loves." Full Story.....

Thursday, December 24, 2009

YRC Worldwide Announced It Extended The Expiration Date For Exchange Offers

YRC Worldwide Inc. announced that it has extended the expiration data for its previously announced exchange offers until 11:59 PM ET on December 28. 2009.

As of 5:00 PM on December 23, 2009, 53% of the 8 1/2 % Notes and 90% of the aggregate principal amount of the 5.0% and 3.375% Notes had been tendered into the exchange offers, which represents 80% of the company's outstanding notes.

The company said it continues to work with its noteholders through this holiday period in roder to increase the level of support for this recapitalization.

Monday, December 21, 2009

YRC Worldwide Gets Approvals for Debt-for-Equity Offers

- SEC Declares Registration Statement Effective

- Required Lenders Approve Bank Amendments

- Company Obtains Pension Fund Consents

YRC Worldwide Inc. announced today that it has satisfied certain requirements related to its previously announced debt-for-equity exchange offers. The company said that its Registration Statement on Form S-4, as amended, has been declared effective by the Securities and Exchange Commission.

It also said that the required lenders have approved the previously announced amendments to the company's credit agreement and asset-backed securitization facility related to the revised minimum tender conditions.

In addition, the revisions to the minimum tender conditions have also been consented to by the required multiemployer pension funds who have deferred contributions under a contribution deferral agreement. This completes major steps with certain critical stakeholders to allow the transaction to proceed without further extensions related to these steps.

Saturday, December 19, 2009

Teamsters plead YRC’s case to reticent bondholders

YRC Worldwide Inc.’s union, whose members have forfeited about $2 billion in compensation to help keep the company afloat, is trying to persuade reticent bondholders to agree to a debt-for-equity swap that’s key in helping YRC avoid bankruptcy.

The head of the International Brotherhood of Teamsters, which has about 40,000 workers employed by YRC, on Wednesday sent a letter to the CEO of financial services bigwig The Goldman Sachs Group Inc., Iain Gold, the Teamsters’ director of strategic research, said Thursday. In it, he said, Teamsters General President Jimmy Hoffa asked whether Goldman Sachs was gambling that it could make more money through credit-default swaps than by participating in the debt-for-equity exchange. The exchange would wipe out a chunk of YRC’s debt and put bondholders in control of most of YRC’s common shares.

Full Story........

Thursday, December 17, 2009

Trucker YRC Extends Exchange Deadline for 3rd Time

Trucker YRC extends exchange offer deadline for 3rd time, revises requirements

YRC Worldwide Inc. said Thursday it extended the deadline for its proposed debt-for-equity exchange for a third time and lowered its threshold for acceptance because it failed to get enough of a response.

The offer, set to expire on Thursday night, was extended to midnight Dec. 23. The company previously needed 95 percent approval for its swap of stock for $536.8 million in debt. The offer includes 5 percent convertible notes due in 2023, 3.375 percent convertible notes due in 2023, and 8.5 percent guaranteed notes due April 15, issued by subsidiary YRC Regional Transportation Inc.

With today's announcement, YRC needs 70 percent of holders to swap the 8.5 percent guaranteed notes and 85 percent to swap the convertible notes. Full Story......

Wednesday, December 16, 2009

Goldman Sachs Accused by Teamsters of Driving YRC Toward Ruin

The International Brotherhood of Teamsters is accusing Goldman Sachs Group Inc. of underwriting derivatives trades that would benefit from the bankruptcy of YRC Worldwide Inc., the biggest U.S. trucker by sales.

“The relatively small benefit Goldman would derive for itself in fees or for clients from such a position is unconscionable given the fact that the 50,000 livelihoods could be ruined by a bankruptcy filing,” Teamsters President James Hoffa wrote in a letter dated today to Goldman Sachs Chief Executive Officer Lloyd Blankfein. Full Story.....

Tuesday, December 15, 2009

Arkansas Best Corporation Names New Officers

Arkansas Best Corporation announces the appointment of J. Lavon Morton to the position of Senior Vice President, Tax and Chief Audit Executive. Donald W. Pearson has been named Vice President, Treasurer. R. David Humphrey will become Vice President, Investor Relations and Corporate Communications. All of these promotions will be effective on January 1, 2010.

"I have worked closely with Lavon, Don and David throughout my career at Arkansas Best," said Judy R. McReynolds who, as previously announced, will become Arkansas Best's President and Chief Executive Officer on January 1, 2010. "Each of them has been a key contributor to the long-term success of Arkansas Best. As we face the on-going challenges of the current business environment, I look forward to continuing to work with them, and all of our outstanding officers and employees, to build toward the future success of Arkansas Best and ABF."

In his new position, Lavon Morton will continue to have responsibility for the company's tax and audit functions. In addition, he will oversee administration of the company's executive compensation and retirement services functions. Mr. Morton has 13 years of experience with the company. He has served as Arkansas Best's Vice President - Tax and Chief Internal Auditor since January 2000.

In his new role, Don Pearson will be responsible for the traditional treasury functions of the company including oversight of Arkansas Best's banking relationships. Mr. Pearson has been employed at Arkansas Best for 24 years. He has been the Director of Cash Management since February 1996. He will also have responsibility for corporate purchasing at Arkansas Best.

In his new position, David Humphrey will continue to oversee Arkansas Best's investor relations program. In addition, he will be responsible for Arkansas Best's corporate media and public relations activities. David has 26 years of experience with the company. He began his current position, as Arkansas Best's Director of Investor Relations, in February 1998.

"Arkansas Best is currently working with an outside firm in a search for our company's new Chief Financial Officer," said Ms. McReynolds. "During this process we will be evaluating both internal and external candidates. As we carefully look for the best person to fill this important position, the search process could take about four to six months."

YRC Worldwide again will slash pay of nonunion workers

Embattled trucking firm YRC Worldwide Inc. last week took another step to preserve cash, telling its nonunion employees that their pay will be slashed again for one month starting Wednesday.

YRC's salaried work force, which already took a 10 percent wage reduction to start the year, will have its pay reduced an additional 18.4 percent over the next month, ending Jan. 15. Details of the cut were disclosed in an e-mail sent to employees last week by Bill Zollars, YRC's chairman and chief executive.

Also in the message, Zollars said a one-week furlough for all nonunion workers that began in October and was expected to continue through early March would instead be completed by Feb. 1. The original plan had been for employees to take eight hours off each month over five months, which would amount to a one-week furlough. Full Story....

Monday, December 14, 2009

Analyst Sees LTL Truck Rates Deteriorating

Low prices drop further as carriers battle to fill networks, Longbow Research's Klaskow says

Already low less-than-truckload rates are falling further as truckers become “incrementally more aggressive," Longbow Research says.

LTL trucking companies such as Con-way Freight are cutting deep into prices to build volume, Longbow analyst Lee Klaskow said in a Dec. 14 note to investors.

Con-way's “aggressive pricing strategy has its network nearly at full utilization,” Klaskow said, while Old Dominion Freight Line — which reportedly resisted discounting in recent months — has “ready capacity.”

FedEx Freight and Con-way Freight “continue to be the leaders when it comes to aggressive pricing,” said Klaskow. “We believe pricing can do down even further as we head into the slow winter freight season.” Shippers report rate discounts as deep as 85 percent, Klaskow said.

LTL rates were already anywhere from 5 percent to 15 percent lower than a year ago going into December, according to analysts and carrier executives.

Klaskow expects bitter price battles in coming quarters, despite forecasts calling for higher demand and more stable rates. The first quarter is typically the weakest for freight, he said, “and we expect pricing to be exacerbated by looser capacity.”

Larger LTL carriers are also trying to keep pressure on YRC and other struggling competitors.

Earl Congdon, executive chairman of ODFL, in October said LTL pricing was “not sustainable,” implying the cost of full utilization can be too high, he said.

“Those carriers,” he said of competitors pricing at or below cost, “are not going to be able to operate with the prices they’ve been quoting.

Wednesday, December 09, 2009

Chicago Teamsters Reject YRC Concessions

Local drivers, dockworkers say 'no' a third time to wage, benefit cuts

YRC Worldwide Teamsters in Chicago again rejected wage and benefit cuts approved by the most of the unionized employees at the troubled less-than-truckload company.

It was the third time the YRC drivers and dockworkers were asked to vote on a 15 percent wage cut and 18-month suspension of pension contributions already approved by the majority of union employees at YRC Worldwide’s national and regional companies.

City drivers in Teamsters Local 705 rejected the concessions 234 to 132 Dec. 8, while dockworkers in Local 710 voted them down 337 to 319. Only maintenance workers in Local 710 accepted the cuts, voting to approve them 8 to 4.

The union “is disappointed in the results and will await the company’s response,” Tyson Johnson, international vice president and National Freight director, said in a statement. Full Story.....

YRC pushes back key deadline in $537M debt-for-equity swap

YRC Worldwide Inc. has again pushed back a crucial deadline on a move that could determine the future of the debt-strapped company.

The Overland Park-based trucking giant said Wednesday that it has pushed back by a week the deadline for a deal in which the company is asking bondholders to exchange about $537 million in debt for what would be 95 percent of YRC’s common shares. The company needs to get 95 percent of bondholders to sign on to make the deal work; about 72 percent had agreed by the previous Tuesday deadline, the company said in a release. Also, the Securities and Exchange Commission still needs to declare YRC’s registration statement for the bonds effective, which is a condition of the offers.

The new deadline is 10:59 p.m. on Dec. 15.

YRC said it was “encouraged by the response to the offers,” which followed several months of work on a turnaround plan to solidify the company’s financial base.

YRC has told bondholders that if the deal to wipe out about a third of its debt fails, the company could file bankruptcy, in which case they could get nothing. The company also has the option of asking its lenders to lower the 95 percent participation threshold.

The trucking company has laid off thousands, shut down numerous facilities and sold property to combat the effects of the recession. The company, whose revenue fell 45 percent in the third quarter, has negotiated more lenient terms from lenders and pension funds and two rounds of concessions from union workers.

Tuesday, December 08, 2009

Con-way To Expand Truck Fleet and Regional Freight Operations

Con-way Truckload Regional, the short-haul subsidiary of the American freight giant Con-way Inc., has announced that it is to expand its regional service with increased operations across ten U.S. states from January next year.

The company states it is to add 300 trucks to its fleet by the end of 2010 and plans significant growth in Missouri, Kansas, Iowa, Nebraska, Wisconsin, Minnesota, Illinois, Indiana, Ohio and Kentucky.

Con-way says that the expansion is due to high user demand for the regional service, which they introduced in September, and has experienced an extremely positive response from customers.

This, they state, is due to their ability to provide specialist services like time-sensitive requirements and greater flexibility in meeting various logistical needs that a dedicated regional presence gives them, whilst at the same time offering links for freight shipments directly into their long-haul, consolidation and distribution services.

“Con-way Truckload Regional has been a great success, and we’ve seen a clear demand for this offering in a growing number of regions,” said Herb Schmidt, president, Con-way Truckload.

“With our available network of secure, state-of-the-art facilities and the ability to expand without adding infrastructure, we see a tremendous opportunity for strategic growth. We’re moving forward to maximize the potential of that opportunity,” he added.

With some of their rivals in the North American trucking market distinctly in the doldrums, noticeably rival YRC, it seems that Con-way’s innovation in opening up new markets and the services to exploit them is paying off.

Trucking Industry Delivers Wreaths Across the U.S. to Honor Soldiers

Sunday, hundreds of trucks left Harrington, Maine carrying special deliveries of hand made wreaths as a part of Wreaths Across America. They are traveling across the nation to honor our fallen soldiers and assure that they are remembered during this holiday season.

There are numerous routes traveling across the country, with volunteers meeting the convoys at state and national cemeteries for ceremonies and to help lay wreaths. A special convoy will arrive in Arlington National Cemetery Saturday with a presentation beginning at 8:30 a.m. and wreath laying beginning at 9 a.m. You can follow the convoy here. A complete list of the routes can be seen here.

"In organizing the transportation and logistics for the wreath deliveries, I was touched with how many trucking companies and professional drivers volunteered to assist in this remembrance," said Barry Pottle, of Pottle's Transportation. "We have trucks delivering wreaths all across the country -- it really demonstrates just how big hearted the trucking industry is."

Share the Road professional drivers Kurt Pedersen (Con-way Freight) and Ben Saiz (ABF Freight System) are running routes to South Carolina, Georgia and Florida. America's Road Team Captain John Foran (UPS) will deliver to cemeteries in New Hampshire and Vermont.

Outcome of YRC trucker bond exchange in question

* Debt exchange expires on Dec. 8

* Successful swap would reopen $106 mln revolver reserve

* YRC shares drop 4 cts to $1.14

Market observers were expressing skepticism on Monday that troubled U.S. trucking giant YRC Worldwide would be able to pull off a critical debt exchange offer that expires Tuesday, though company officials have expressed confidence the deal would be successful.

Shares of Overland Park, Kansas-based YRC closed down 4 cents at $1.14 on the NASDAQ on Monday as investors weighed the likelihood of a successful exchange, which for YRC requires 95 percent of bondholders to approve the deal.

"I'd be shocked if they get 95 percent," said Dahlman Rose analyst Jason Seidl. "The question is can they get enough so that the lenders will sign off on it."

YRC, the nation's top less-than-truckload carrier, has been struggling to stay out of bankruptcy, laying off thousands of workers and cutting deals with labor and lenders to stay afloat. Full Story....

Component Change Made to Dow Jones Transportation Average

YRC Worldwide Inc. will be deleted from the Dow Jones Transportation Average at the close of business on Friday, December 11. The company will be replaced by Delta Air Lines Inc.

YRC Worldwide Inc. is being removed because of its plans for financial restructuring of the company. YRC Worldwide has proposed a debt-for-equity swap, which ultimately would give noteholders control of about 95% of the company's common stock. If not enough bondholders agree to the exchange, many observers expect that YRC Worldwide Inc. could file for bankruptcy protection, which disqualifies a stock from being a component in any of the Dow Jones Averages.

YRC Worldwide has been in the Dow Jones Transportation Average since August 8, 1995 under the name Yellow Roadway Corp. The company changed its name to YRC Worldwide Inc. on January 4, 2006.

UPS Freight expanding hours in Canada

UPS Freight is expanding its pickup and delivery hours for customers served through the company's London, Ontario, facility.

The expanded service puts trucks on the street 1½ hours earlier each morning for deliveries in the Ontario area. The vehicles will stay out three hours later for pickups.

Coupled with improvements to the UPS Freight operating network and cross-border route structure, customers will be able to tender freight as much as three hours later in the day and still reach two-day delivery destinations as far south as Mississippi.

Yesterday's service announcement complements a yearlong effort to reduce transit times to and from Canada. In all, nearly 1,000 transit times between Canadian points and the United States have been reduced in 2009.

"This expansion of our service hours demonstrates the very deep commitment that we're making to customers on both sides of the Canada-U.S. border," said UPS Freight President Jack Holmes. "For freight shipments to and from Canada, UPS Freight is the standard others will be measured against."

UPS Freight also announced that veteran Canadian transportation specialist Allan Robison had joined the company as a vice president of sales and will lead UPS Freight's Canadian sales efforts. Until his retirement last year, Robison worked as president of Canada's largest trucking company, Reimer Express.

Monday, December 07, 2009

Pricing turmoil clouds outlook for LTL market

When does rate-cutting morph into throat-cutting?

That may be a reasonable question for trucking executives to ponder as they start 2010. That is, if they aren't too busy beating each other up over pricing to think through the consequences of their actions.

As a grinding freight recession ended its third year, the rate environment for truckload and, in particular, less-than-truckload services, continued to weaken. Pricing trends in both categories deteriorated considerably in the third quarter from the first half of 2009, according to data culled from company reports and compiled by investment banker JPMorgan Chase. Even railroad pricing on commodities for which the rails compete with truckload carriers has been hurt by the weakness in truckload rates, according to the firm. Only ground and express parcel services showed a sequential pricing improvement through the first three quarters of 2009, according to the JPMorgan data.

Industry veterans have rarely seen anything like it. Michael Regan, CEO of TranzAct Technologies Inc., an Elmhurst, Ill.-based consultancy that over the years has negotiated and purchased billions of dollars of LTL capacity for shipper clients, says he's seen discounts of as much as 90 percent below retail, or tariff, rates.

The pain is being felt across the carrier spectrum. For example, two of the healthiest LTL carriers, Old Dominion Freight Line Inc. and Con-way Inc., posted sub-par revenue and net income results in the third quarter of 2009, with the top executives at both companies attributing their respective performances to declines in tonnage and aggressive pricing competition. Full Story....

Friday, December 04, 2009

Hoffa: Trade Reform Essential to Job Creation

The following is a statement by Teamsters GeneralPresident Jim Hoffa reflecting his comments on Thursday at the White House Forum on Jobs and Economic Growth:

"On behalf of organized labor, I'd like to thank President Obama for holding this important forum.

"President Obama recognizes that creating good, sustainable jobs is the key to America's economic growth. And the key to creating good, sustainable jobs is nurturing and protecting infant industries with strong potential to grow. We should be investing in clean and efficient energy technology that we can export to the world.

"Rebuilding our manufacturing base through exports won't just help blue-collar workers. It will help the retailers, teachers, police officers, truck drivers and countless others who derive their livelihood from a strong manufacturing base, however indirectly.

"To rebuild manufacturing, we need to reform our trade policy and to review existing trade agreements. The TRADE Act of 2009 would go a long way to achieve that goal.

"The TRADE Act would make sure that the benefits of trade go to creating American jobs. It lays out the foundation of how a trade agreement should be negotiated and what it can and cannot include. Importantly, it will prevent future trade deals from banning policies to buy and source American components, products and services. It will prohibit privatization and deregulation requirements.

"We also need to enforce trade rules and international agreements. To that end, we support the Trade Enforcement Priorities Act of 2009. The bill would require the U.S. Trade Representative to set priorities for its enforcement strategy and to work with countries that have a pattern of unfair trade practices.

"Finally, we need to bring down our trade deficit as part and parcel of any jobs strategy.

"We look forward to working with Congress and the administration on setting policies that create good, sustainable union jobs."

YRC is confident that deal with bondholders will be approved

YRC Worldwide said Thursday that it is "very confident" shareholders will approve a debt-to-equity swap that would eliminate more than $500 million in debt from its books.

The Overland Park-based trucking giant made the statement after an analyst with R.W. Baird & Co. expressed doubt that the deal with bondholders would muster the necessary votes.

Bondholders would gain control of 95 percent of YRC's common stock in exchange for wiping out the debt.

Shares in YRC closed Thursday at $1.20, down 10 cents.

Analyst Jon A. Langenfeld said the current price of the bond deal is based on an "overly aggressive profit recovery scenario," according to a Journal of Commerce report. The deal faces a Tuesday deadline.

The debt swap is a critical part of YRC's recovery plan. The company has sold assets, laid off workers and gained wage concessions from salaried and union workers.

Saturday, November 28, 2009

Chicago Locals To Be Placed Under NMFA

On November 24, 2009, the General Executive Board, after extensive discussion, exercised its authority under the International Union Constitution and passed a resolution which terminates the exceptions or policies that granted Local Unions in the Chicago and vicinity the right to negotiate “white paper” bargaining agreements, rather than participate in national bargaining in the freight industry.

Members covered by white paper contracts will not lose any existing working conditions contained in their contracts that are superior to those in the National Master Freight Agreement and its Supplements. Full Story.....

Thursday, November 26, 2009

Analysts: $34M logistics sale too small to relieve YRC woes

When Kansas-based trucking giant YRC Worldwide Inc. -- owner of two Central Pennsylvania-based firms -- sold a slice of its YRC Logistics business for $34 million, it barely changed the company's precarious financial position, analysts today told the Business Journal.

"The sale of one piece of a business unit for $34 million is news, but it's not going to make or break the company," said Jason Seidl, an analyst for investment firm Dahlman Rose & Co. based in New York.

YRC yesterday sold its dedicated contract transportation business to Greatwide Logistics Services with headquarters in Dallas. Dedicated transportation provides trucking to large companies. Greatwide, which has its Pennsylvania terminal on Industrial Road in Harrisburg, provides trucking for companies including Target, Coca-Cola, Adidas and Walmart. Full Story......

Tuesday, November 24, 2009

YRC Worldwide sells piece of logistics unit for $34M

YRC Worldwide Inc. has sold part of its logistics unit for $34 million, which will help pay down YRC’s credit line.

The Overland Park-based trucking giant said in a Tuesday release that it had sold YRC Logistics’ dedicated contract carriage business, including customer contracts and the trucks and trailers associated with it, to Dallas-based Greatwide Logistics Services LLC. The deal affects about 600 employees, nearly all of whom Greatwide expects to absorb, CEO Raymond Greer said in an e-mail. The deal closed on Monday. Full Story...

Trucking index dips in October

The trucking industry didn’t get any help from the economy in October, though freight tonnages are starting to look more favorable compared with last year, according to the most recent report from the American Trucking Associations.

The trade group said in a Monday release that its seasonally adjusted for-hire truck tonnage index dipped 0.2 percent in October, on the heels of a 0.3 percent drop in September. The industry has been weighed down by a drawn-out freight recession that’s taken a toll on carriers such as trucking giant YRC Worldwide Inc. (Nasdaq: YRCW), based in Overland Park. The company has negotiated with union workers, pension funds and lenders to avoid bankruptcy.

Compared with October 2008, the index dropped 5.2 percent, though that was the best year-to-year comparison since November 2008. In September, the index was 7.3 percent below prior-year levels.

The figures mean the economy still is righting itself, though it’s in better shape than a year ago and should show a trend of modest improvement, ATA Chief Economist Bob Costello said in a release.

“Repeating what I said last month, the trucking industry should not be alarmed by the small decreases in September and October,” Costello said. “The economy is behaving as expected, with starts and stops. This is being reflected in truck tonnage, as well as most economic indicators.”

Thursday, November 19, 2009

Relief for tired truckers

Wiser heads have prevailed in Washington regarding a lax trucking safety regulation the Bush administration repeatedly pushed on behalf of the industry. The Obama Administration has agreed to reconsider the rule, which safety advocates said could have led to greater driver fatigue and more accidents.

The rule, finalized in the waning days of the Bush White House, would have allowed long-haul truckers to drive up to 11 hours straight. For 60 years before this, the maximum amount truckers were allowed to drive at a stretch was 10 hours.

Also included was a reduction in off-duty time for drivers. Previous regulations gave truckers 50 or more hours of rest and recovery time at the end of a work week, but the Bush revision cut that to as little as 34 hours.

A federal appeals court struck down the Bush rule twice, saying the government did not adequately explain its reasoning for the extra hour on the road. But the Bush administration reinstated it each time.

A coalition of highway-safety defenders and the Teamsters union sued to get the rule thrown out. Teamsters President Jimmy Hoffa, who warned that longer hours behind the wheel are dangerous for drivers and the public, promised to push for a rule that protects truckers “instead of the greed of the trucking industry.”

Finally, it appears, the concerns of safety and labor groups have been taken seriously. The Federal Motor Carrier Safety Administration pledged to revise the rule, with Transportation Secretary Ray LaHood declaring that “we believe that starting over and developing a rule that can help save lives is the smart thing to do.”

Protecting truck drivers and the public from unsafe driving conditions is so much wiser than bending to special interests.

Wednesday, November 18, 2009

Teamsters, ABF Not in Concession Talks

Statement by National Freight Director Tyson Johnson

There is an erroneous media report that the International Brotherhood of Teamsters National Freight Division is in negotiations with ABF that would result in concessions for our members represented under the National Master Freight Agreement. Let me be clear -- this report is false.

According to a November 17 article on the Journal of Commerce website titled "Trucker ABF, Teamsters in Concession Talks" ABF Chief Operating Officer Wesley Kemp stated that the Teamsters and ABF are in a concessionary "dialogue and hopefully we will reach an agreement soon." In fact, we are not having contract or concession discussions with the company.

I have contacted ABF and demanded that they correct the record.

"Cadillac" of Trucking Terminals to be Closed by YRCW


Financially troubled YRC Worldwide is closing its 202-door Richfield, Ohio, breakbulk terminal, one of the largest in its system. The move is part of YRCW's downsizing, and affects about 1,000 Teamsters at three Ohio terminals. About 400 of those 1,000 Teamsters already are laid off.


Trucking terminals are a lot like what Richard Nixon's vice president, Spiro Agnew, once said of slum neighborhoods. "You seen one," Agnew gracelessly said, "you seen 'em all."

Trucking terminals are a lot like that. Basically they are big, huge, cement and steel barns that are used as much as 24 hours a day, ideally as busily as possible. There are no style points for truck terminals. Full Story.....

Tuesday, November 17, 2009

YRC seeks to close Richfield truck terminal, shift some work to Copley

Trucking company YRC Worldwide plans to close a terminal in Richfield and move the work to two other Northeast Ohio terminals, including its Copley Township facility.

The financially struggling Overland Park, Kan.-based company, parent of the former Roadway in Akron, has told its Teamsters workers that it is seeking what is called a ''change in operations'' in its contract that will lead to the closing of the terminal at 2977 Brecksville Road.

The information is in a 10-page memo sent to the union; YRC executives could not be reached for comment early today. Full Story.......

Trucker ABF, Teamsters in Concession Talks

Carrier expects to win wage concessions similar to givebacks at YRC

Less-than-truckload carrier ABF Freight System is deep in talks with the Teamsters union to win concessions similar to those the union gave financially troubled competitor YRC Worldwide, including an overhaul of the company’s pension system, the carrier said.

“We are in a dialogue with the Teamsters and hopefully we will reach an agreement soon,” ABF Chief Operating Officer Wesley R. Kemp told reporters Monday at the annual Transcomp and Intermodal Expo.

Kemp said the carrier expects to win wage concessions similar to the givebacks that lowered wages some 15 percent at YRC, the nation’s largest LTL operator. ABF also wants to restructure the company’s pension system by switching to a profit-sharing arrangement to match the savings YRC is gaining from an 18-month hiatus from contributing to the driver pension plan.

The agreement between the Teamsters and YRC negotiated a couple of months ago, said Kemp, “was just too great a difference to ignore” between the cost structures at the country’s only large unionized LTL carriers.

He said the company has no deadline for an agreement and that talks have been “productive and cordial.” Union leaders understand, he said, “if something happens to YRC, we are the last employer of Teamsters standing in this industry. Common sense will prevail in the end.”

Kemp would not specifically say whether he expects YRC, which holds more than 20 percent of the LTL market by most estimates, to survive its financial troubles, but ABF has contingency plans for the carrier’s demise in a tough economy.
“The way we see it, someone will exit the industry,” he said.

Monday, November 16, 2009

Zollars: No economic, freight recovery in 2010's first half

The U.S. economy and freight volumes will show no meaningful recovery at least through the first half of next year, putting further pressure on less-than-truckload rates and near-term profitability for LTL carriers, the chairman, president, and CEO of YRC Worldwide Inc. predicted.

William D. Zollars said he expects a continued "challenging environment" for both volumes and pricing through the end of June. While Zollars said YRC sees a more favorable climate in the second half of 2010, he added that "we're not betting on the economy bailing us out," Zollars spoke in an interview with consultancy TranzAct Technologies Inc.

Zollars, whose company earlier this month negotiated a debt-for-equity swap under which YRC bondholders will exchange nearly $600 million in debt for effective equity control of the company, said YRC will be cash-flow positive in 2010 and that operating cash flow metrics are steadily improving. "We are a much stronger company than we were going into the recession," he said.

YRC, the nation's largest LTL carrier, has reduced capacity by between 25 and 30 percent in 2009. Zollars said he is satisfied with the downsizing of the YRC network. "Our capacity fits our volumes pretty well" at this time, he said in the interview.

Sunday, November 15, 2009

YRC Worldwide - Economy Stable But Sees No Momentum

Struggling trucking company YRC Worldwide Inc. issued a muted outlook in an investor presentation, saying conditions appear to have stabilized but warning it sees "no sustained positive momentum" for the economy.

The presentation, dated Wednesday but posted on its Web site Tuesday, comes after it initiated a $536.8 million debt-for-stock swap on Monday viewed as key to its survival.

YRC shares ended down 7.3%, or 8 cents, at $1.02. The stock has plummeted 72% since early last week, when the Overland Park, Kan., company announced details of the highly dilutive exchange offer.

Under the plan, debt holders would control 95% of the company's stock if it goes forward successfully. Chief Executive Bill Zollars has defended the move as the linchpin in teetering YRC's effort to regain financial footing, and the company also has warned that it could file bankruptcy if the debt exchange isn't completed.

The exchange offer will expire at 11:59 p.m. EST on Dec. 7, unless YRC opts to extend it.

YRC made clear in the investor presentation--which was attributed to President Tim Wicks--that it expects little short-term help from the economy, in terms of the potential for an imminent rebound to fuel a business uptick.

The company said freight volumes have stabilized since the first quarter but haven't changed much since, aside from some seasonal movements. It said it has "no expectation of near-term growth" amid the challenging conditions.

Still, YRC was upbeat on the progress it has made to cut costs, improve its balance sheet and stay afloat. One slide, headlined "people said we couldn't do it," noted that "critics" have been wrong so far in predicting the company wouldn't achieve certain critical milestones.

Rumors of an imminent YRC bankruptcy have circulated for months as the debt-laden company has slashed jobs and sold real estate to raise money and cut costs while the weak economy sapped demand for freight transport. YRC is the largest independent player in the less-than-truckload shipping market, where multiple loads are consolidated onto single trucks.

YRC's exchange offer encompasses the company's 5% convertible notes due in 2023, 3.375% convertible notes due in 2023 and 8.5% guaranteed notes issued by subsidiary YRC Regional Transportation Inc. due April 15. Combined, the notes have a face value of $536.8 million, plus accrued and unpaid interest.

ABF Named on Selling Power Magazine's 2009 'Best Companies to Sell For'

ABF Freight System, Inc., has been named among the top two U.S. companies to sell for in the service sector by Selling Power magazine, whose annual listing includes ABF for the eighth consecutive year. Always among the top 10, ABF ranks second for the second consecutive year and is again the highest ranked transportation company.

"During this challenging economy, ABF has steadfastly maintained its commitment to quality service by empowering employees to help customers overcome supply chain problems. Our sales force plays an essential role in this effort, so it is gratifying to be cited as one of the best once again by Selling Power magazine," said ABF Senior Vice President of Sales and Marketing Roy Slagle. "ABF transportation professionals are trained to anticipate supply-chain challenges and confront them with value-added solutions. Consequently, ABF is also among the best companies to do business with."

The corporate research team at Selling Power annually identifies and ranks the best companies to sell for in the U.S., focusing on companies with sales forces of 500 or more. Assessments are based on compensation, training and career mobility. Selling Power ranks the top 25 manufacturing companies and the top 25 service companies to complete its annual list of the 50 best companies to sell for.

New Hampshire honors safe driver Michael Rafeal

New Hampshire awarded Michael "Mickey" Rafeal, a 25-year driver for YRC, the New Hampshire Master Truck Driver Certification on November 2, the start of the American Trucking Associations' National Truck Driver Appreciation Week.

The New Hampshire Motor Transport Association, Gov. John Lynch and the New Hampshire Department of Safety were at the State House to recognize Rafeal's career-long commitment to the community and the safety of the driving public.

In addition to an engraved plaque and a monogrammed jacket, the New Hampshire Senate and House of Representatives read a resolution recognizing Rafeal's contributions.

Rafeal has made safety an important part of his career. He regularly competes in the state events leading up to the ATA National Truck Driving Championships. He's competed at the national level seven times and won third place in the Twins class in 2005. Rafeal is president of the state's professional driver association.

New Hampshire honored seven drivers this year. A safety committee comprising four safety specialists and a representative from the Department of Transportation reviewed nominations that drivers' employers submitted. Criteria included driving for their company at least one year; 1 million accident-free miles or 25,000 hours of accident-free driving; no citations within the past three years; and either performance of a meritorious act of selflessness, participation in community service and/or demonstrated leadership in a program or event that promotes the trucking industry's ideals and growth.

Thursday, November 05, 2009

Yellow Brick Wall: Undercutting YRC keeps LTL rates down

Sometimes the highways can look a lot like the jungle landscape seen in reruns of Mutual of Omaha's Wild Kingdom.

Marlin Perkins narrated the '60's-era show back then, but today it's The Wall Street Journal reporting predatory activity along the trucking LTL food chain.

The Prey? Beleaguered LTL freight giant Yellow-Roadway Corp. (YRC), which, the Journal reports, has been under raptor-like attack from its competitors who are trying to price the carrier out of business.

And because of the size of market share controlled by the carriers involved, the cutthroat pricing is keeping rates depressed across the entire sector.

David Congdon, CEO of Old Dominion Freight Line, told the paper that although the recession has led to the worst pricing environment he's ever seen, some pricing trends "likely stem from deliberate moves to undercut YRC," which has flirted with bankruptcy more than once this year. Full Story......

Sunday, November 01, 2009

YRC Worldwide says cutting 900 nonunion jobs

* Says removing 900 nonunion workers

* Says no further cuts seen at this time

* Says YRC is 75 percent of way to cost cut target

Leading U.S. trucker YRC Worldwide Inc said on Friday it is cutting about 900 nonunion jobs in what could be the final round of layoffs in the company's broad financial restructuring.

The job cuts will be completed in the fourth quarter and should save the company between $15 million and $20 million, according to company officials. Full Story....

YRC Worldwide Works to Reduce Customer Losses

New shippers, existing customers help balance 'leaking business,' Zollars says

YRC Worldwide is still losing business, but it's gaining new customers as well, leading to "stabilization" of its customer base and improved yields, top company officials say.

"We've got new customers coming on board all the time," Chairman, President and CEO William D. Zollars said in an Oct. 30 conference call with analysts.

"We've also got a very stable base of customers that have not left and are still doing business with us," Zollars said. He said, however, that "it's a mixed bag," admitting "we have customers that are leaking business and have moved away from us."

His observation supports anecdotal reports from shippers, consultants and analysts that YRC Worldwide has stemmed the exodus of large shippers who fled the company late last year and early this year amid speculation that YRC might shut down and the integration of Roadway and Yellow Transportation. Full Story......

YRC in debt exchange talks

* 95 pct of bondholders needed to convert

* Ratings downgrades follow announcement

* Shares end down 10 percent (Adds byline, updates with ratings agency comment,)

YRC Worldwide Inc is well on the road to regaining its financial footing as it negotiates with bondholders for a debt exchange, company officials said on Friday.

YRC wants to exchange its outstanding USF 8-1/2 percent notes and its contingent convertible notes and is currently negotiating the terms of such an exchange with a committee of its noteholders, with the goal of having a deal by the end of the year, YRC Chairman Bill Zollars said on Friday. Full Story.....

YRC Worldwide gives president title to COO Wicks

YRC Worldwide Inc. Chairman and CEO Bill Zollars has given his president title to recently named COO Timothy Wicks.

On Thursday, directors of Overland Park-based YRC made the change, according to a Friday filing with the Securities and Exchange Commission. Zollars said the board’s action acknowledged a change that actually was made on Oct. 5, but was not included in a company announcement at that time.

Wicks has been a rising star at the trucking giant, which has been making dramatic efforts to survive the recession. He started at YRC a year ago as its CFO and was promoted to the new COO position on Oct. 5.

“Tim’s provided great value to the company since he joined us in October of last year,” Zollars said. “... He has been actively involved in both finance and operational decisions since he got here and has been instrumental in moving forward our comprehensive plan.”

With Sheila Taylor ready to take the CFO role, Zollars said, it was time for Wicks to focus on the operational side of the business.

Before YRC, Wicks was senior vice president of strategic growth initiatives at UnitedHealthcare Services Inc.

Zollars had been chairman, president and CEO of the company since Nov. 9, 1999, according to a biography on YRC’s Web site. He has led YRC through two big acquisitions that helped make the company the largest in its sector but also saddled the company with debt.

YRC, which Friday morning reported a $158.7 million loss for the third quarter, has put off pension payments, cut wages, laid off thousands of workers, sold property, won two rounds of concessions from union workers and gotten repeated leniency from creditors in its efforts to survive the drawn-out freight recession.

Saturday, October 31, 2009

YRC's Spin May Be Positive, But the Operating Numbers Are Not


YRC Worldwide, the nation's largest trucking company by volume, reported a $158.7 million loss in the third quarter on sharply declining revenue of $1.3 billion, compared with a net loss of $720 million on $2.38 billion revenue in the year-ago quarter. Despite the huge losses, YRC Chairman and CEO Bill Zollars says the company "gained significant momentum" in the third quarter and some progress in new credit agreements with its consortium of lenders.


Despite Bill Zollars' rosy scenarios, this latest quarterly loss from YRC Worldwide is troubling, and exceeded most analysts' expectations.

The worst news first:

- YRC National's total shipments per day were off 39.9 percent, an indication that some big shippers are bolting the nation's largest trucking company in favor of UPS Freight, FedEx Freight and, to a lesser degree, Arkansas Best's ABF Freight unit.

Full Story.........

Friday, October 30, 2009

YRC Worldwide posts 3rd-quarter loss

YRC Worldwide Inc. reported another loss in the third quarter, but the struggling trucking company also extended a lending agreement to October 2010.

Overland Park-based YRC lost $158.7 million, or $2.67 a share, on $1.3 billion in revenue. That was an improvement from the same period last year, when the company lost $720.9 million, or $12.58 a share. Quarterly revenue fell by more than $1 billion in year-over-year comparisons, however.

YRC's latest loss also was about one-half the losses posted in the 2009 second quarter. Full Story.....

YRC Worldwide Reports Significant Sequential Improvement in Its Third Quarter 2009 Results

*YRC Regional and YRC Logistics Profitable
*ABS Facility Renewed Early; Extended through October 2010
*New Long-Term Bank Amendment Provides for Deferral of Interest and Fees
*Update on Proposed Exchange Offer

YRC Worldwide Inc. today reported its results for the third quarter and provided an update on its comprehensive plan. For the quarter, the company announced a loss per share of $2.67 that included a net gain on property disposals of $.18 per share, severance charges of $.08 per share due to further headcount reductions and lease termination charges of $.11 per share related to further optimizing the networks. By comparison, the company reported a loss per share in the third quarter of 2008 of $12.58 that included impairment charges on goodwill and intangible assets of $13.20 per share, a curtailment gain of $.84 per share, and a net gain on property disposals of $.21 per share.

"We gained significant momentum in the third quarter as we executed on our comprehensive plan to improve operating efficiencies, restore financial strength and position our company for future success," stated Bill Zollars, Chairman and CEO of YRC Worldwide. "We achieved significant sequential improvement from the first half of the year. In fact, YRC Regional Transportation and YRC Logistics were profitable for the quarter, and our operating cash flow trends improved sequentially during the quarter despite the continued economic downturn."

YRC Worldwide also reported aggregated cash and available unused capacity under the credit facilities of $171 million at September 30, 2009, including $163 million of cash and cash equivalents. In addition, the revolver reserve under the company's credit agreement was $102 million at September 30, 2009. The company expects to commence an exchange offer for its outstanding USF 8-1/2% notes and its contingent convertible notes. The successful completion of this exchange would allow the company to access this revolver reserve under its recently amended credit agreement, therefore providing a significant source of new liquidity. More information regarding the exchange offer and credit agreement is provided below. The company also completed $21 million of sale and financing leaseback transactions and sold $68 million of excess property during the third quarter, including $10 million in pension deferral debt pay downs from these proceeds. Full Report......