YRC Narrows 3rd-Quarter Loss; CFO Resigns

Trucking and logistics company YRC Worldwide posted a narrowed net loss and said Chief Financial Officer Jamie Pierson resigned.
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YRC Worldwide,  (YRCW) - Get Report a global trucking and logistics company, posted a narrowed third-quarter net loss and said Chief Financial Officer Jamie Pierson resigned.

The Overland Park, Kan., company reported a net loss of $2 million, or 4 cents a share, compared with $16 million, or 48 cents, in the year-earlier quarter.

YRC revenue fell 5.8% to $1.18 billion in the quarter from $1.26 billion a year earlier.

Analysts surveyed by FactSet came to a consensus estimate of an adjusted loss of 28 cents a share on revenue of $1.18 billion. 

The company’s shares at last check fell 8.6% to $3.84.

Operating profit was $19.4 million, down 18% year over year from $23.8 million. The year-earlier figure included a $1 million net loss on property disposals.

“During the quarter we transitioned to managing our business in a tighter capacity environment and setting the stage for 2021," Chief Executive Darren Hawkins said in a statement. 

"Improving tonnage trends late [in the third quarter have] allowed [less-than-truckload] pricing to firm up with less volatility expected moving forward.” 

The trucking company ended the quarter with $453.7 million of liquidity including cash and funds available under a loan facility.

The company’s debt increased 27% in the quarter to $1.16 billion from $906.3 million a year earlier.

Pierson's resignation as CFO and a director "does not reflect any disagreements about the company's past financial reports or disclosures," the company said. It did not say why Pierson stepped down.

YRC appointed Dan Olivier as interim CFO. He's a 22-year veteran at YRC, most recently holding the post of vice president of financial planning and analysis.

The company also added two new members to the board: former New Mexico Gov. Susana Martinez and Shaunna D. Jones, who is U.S. director of diversity and inclusion at the New York law firm Cleary Gottlieb Steen & Hamilton.

In October, YRC received the first $75 million of $400 million of funds as part of a secured agreement with the U.S. Treasury. The funds will be invested in the company’s fleet, according to Hawkins.

In July, YRC said it was giving the U.S. Treasury a 29.6% equity stake in exchange for a $700 million Cares Act loan.

The loan was designed to enable the company to maintain about 30,000 trucking jobs and enable the government to continue to support military-supply operations.

YRC provides military transportation and other hauling services for the U.S. government, including less-than-truckload services to the Department of Defense.