Two prominent Kansas City-area CEOs were picked to serve on President Donald Trump's Great American Economic Revival industry groups. Trump announced the members of the groups Tuesday. Steven Bresky, CEO of Merriam-based agribusiness and transportation conglomerate Seaboard Corp.
OVERLAND PARK, Kan., May 04, 2020 -- YRC Worldwide Inc. (NASDAQ: YRCW), announced today that it has rescheduled its conference call to discuss first quarter 2020 results to.
Moody's Investors Service ("Moody's") downgraded the ratings of truck carrier YRC Worldwide Inc. ("YRC"), including the Corporate Family Rating to Caa1 from B2, the Probability of Default Rating to Caa1-PD from B2-PD and the senior secured rating to B1 from Ba2. Today's action reflects the expected impact on YRC of the breadth and severity of the shock, and the broad deterioration in credit quality it has triggered.
YRC (YRCW) delivered earnings and revenue surprises of 6.25% and 2.14%, respectively, for the quarter ended March 2020. Do the numbers hold clues to what lies ahead for the stock?
YRC Worldwide shares moved sharply higher during Thursday's session after Barna Capital announced that it would seek three board seats.
OVERLAND PARK, Kan., May 12, 2020 -- (NASDAQ: YRCW) Eleven female leaders across YRC Worldwide have been recognized by the Women in Trucking Association on its 2020 list of.
In an amended 13D filing with the U.S. Securities and Exchange Commission, activist investor Barna Capital Group stated that it was moving forward with previously announced plans to make changes to the YRC Worldwide (NASDAQ: YRCW) board.Barna Capital is seeking to "replace three members of the board who have not provided the needed guidance for the company to achieve decent operating results." The firm wants to replace current board seats with "individuals who possess extensive experience in running a successful transportation company."In the filing, Barna Capital stated shares of YRCW have fallen more than 90% during the tenure of the unnamed board members that the group is seeking to replace. Additionally, the firm noted that the board was seeking to be paid in cash versus equity-based compensation and that total compensation for board seats has increased more than 200% since those individuals joined the board.Further, the firm stated that it "would like to see some changes in middle and lower management who will drive better operational results."Lastly, Barna Capital reiterated its confidence in the YRC's executive management team. "We have complete trust in the executive management team and believe that they are on the right track to turn the company towards a brighter future."The filing showed that Barna Capital increased its stake in the less-than-truckload carrier to 5.4%, up from 5.2% at the time of the original filing on March 17.View more earnings on YRCThe date of Barna Capital's original filing was shortly after YRC provided a lackluster intra-quarter update on March 13. In that press release, the carrier announced that tonnage per day had declined 0.7% year-over-year during January and February and that revenue per hundredweight, or yield, was 4.2% lower. The firm noted that YRC's results, which included both "softer pricing while volumes fell at the same time," were not as strong as results reported by other carriers. The original filing also called out management and the board for failing to "motivate employees, optimize operations and guide the company to strong financial results."The proposed board changes do not impact the two seats held by the Teamsters Workers Union.In an 8-k filing on April 8, YRC disclosed that it had amended its credit agreement. A key provision in the amendment is the waiver of a financial covenant for the remainder of 2020, requiring last 12 months' consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) of $200 million.YRC's fourth quarter financial release showed the carrier generated $210.6 million in 2019 adjusted EBITDA, ending the year with $902.8 million in debt. The carrier closed the books on 2019 with $80.4 million in liquidity compared to $203.8 million at the end of 2018.YRCW's shares are up more than 10% in midday trading on the news.See more from Benzinga * Easter Snowstorm To Slam Plains And Midwest (With Forecast Video) * Brazilian Digital Freight Broker Cargo X Raises Million * COVID-19 Update: FMCSA Hours Of Service Waiver Extended(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
OVERLAND PARK, Kan., May 11, 2020 -- YRC Worldwide Inc. (NASDAQ: YRCW) reported results for the first quarter ended March 31, 2020. Operating revenue was $1.150 billion and.
Issuance of US Collateralized Loan Obligations (CLOs) fell 48% in the first quarter as the coronavirus pandemic shut down global economies leading to a rush of loan downgrades that could cut off distributions to the fund’s most junior investors. Defaults and a significant number of loans rated CCC can trigger tests within the CLO and cut off distributions to equity holders. The US$680bn US CLO market is the biggest buyer in the US$1.2trn US leveraged loan market, which companies including American Airlines and Hilton Worldwide rely on to fund their operations and back mergers and acquisitions.
Companies In The News Are: GMDA, NNVC, CHAP, YRCW
One sell-side analyst has thrown in the towel on YRC Worldwide (NASDAQ: YRCW).Following a mixed bag first quarter 2020, in which the carrier reported better-than-expected results, announced it was unlikely to meet future financial covenants and opted out of taking questions from analysts on its earnings call, Stifel Financial (NYSE: SF) equity research analyst David Ross has tapped out.In a Tuesday report to clients, Ross announced that he has suspended his rating and estimates for the less-than-truckload (LTL) carrier."Due to uncertainty around the current liquidity situation and no ability to predict the outcome of YRC's requests for external relief, we are suspending our rating on the shares," stated Ross. He went on to state that he views the stock as a "trading vehicle and highly volatile," noting that it could see 50% or more swings in share price in the weeks and months to come.The Overland Park, Kansas-based company ended the quarter with $880 million in debt, down approximately $23 million from the close of 2019, and available liquidity increased nearly $38 million to $118 million over the same period. The carrier would have met its adjusted last 12 months' (LTM) earnings before interest, taxes, depreciation and amortization (EBITDA) covenant requirement of $200 million had it not received a waiver on the requirement for all of 2020 from lenders previously.YRC reported net income of $4.3 million in first quarter 2020, 12 cents per share on a diluted basis and well ahead of the consensus estimate of a 57-cent-per-share loss. The after-the-market-close quarterly report sent shares surging more than 40% in after-hours trading on Monday. Shares of YRCW closed the trading session up almost 15% on Tuesday.That's about where the feel-good quarter ends.The quarterly result included $39.3 million in net gains on property sales versus a $1.6 million loss on property disposals in the prior-year period. The gains more than saved the quarter and many don't view them as a recurring tailwind to profitability.Further, the company said it was unlikely that it would meet the $200 million adjusted EBITDA threshold during the first quarter of 2021 and would likely seek another waiver. The recent waiver allowed the carrier to convert most of its cash interest payments for the first half of 2020 to noncash payable-in-kind.On its earnings call with analysts, management said that they wouldn't be fielding questions from analysts due to a "tremendous amount of uncertainty surrounding COVID-19 and the rapidly changing environment."Ross notes that the first quarter "wasn't too bad." Revenue declined 2.7% year-over-year to $1.15 billion as tonnage per day declined 3% and revenue per hundredweight excluding fuel was down 3.9%. This was partially offset by a 3.9% increase in weight per shipment and 2.5 more operating days in the first quarter 2020 period compared to the first quarter 2019. Operating ratio improved 510 basis points, inclusive of the gains, to 97.6%.However, Ross said the first quarter is "in the rearview," pointing to a 23.9% year-over-year decline in LTL volumes for YRC during the month of April, significantly worse than competitors like Old Dominion Freight Line (NASDAQ: ODFL), ArcBest Corp. (NASDAQ: ARCB) and Saia Inc. (NASDAQ: SAIA) that recorded declines of 15.3%, 14% and 13%, respectively, during the month.Also troubling are recent notices that the company has fallen behind on its commitments.In a Friday letter to local unions with YRC members, the Central States Health and Welfare Fund noted that YRC was delinquent paying health contributions owed for the month of March and that the carrier advised them that it would be unable to make these payments in April and May. The fund estimates the three-month period will result in a nearly $75 million delinquency, in addition to the more than $48 million already owed by YRC to the pension fund from a prior debt restructuring.Previously, YRC received a grace period for health and welfare and pension fund contributions to its union employees. The original grace period was for March contributions to be paid in April, but International Brotherhood of Teamsters management warned in a letter to the rank and file that additional extensions may be sought.The company remains in perpetual turnaround mode, the latest referred to as a "multi-year enterprise transformation strategy," that includes asset utilization initiatives, migrating all of its separate operating units onto the same technology platform, reporting all five brands on a consolidated basis, favorable work rules following the 2019 labor contract implementation, shuttering terminals, closing New Penn's headquarters, debt restructuring, headcount reductions, a hiring freeze and suspension of short-term incentives.Ross' thoughts on the transformation: "A main result of COVID-19, in our view, has been to act as an accelerant on trends (that may have been moving too slowly) — essentially pressing ‘fast forward' on life for both aging individuals and aging companies in poor health. YRC certainly fits into the ‘vulnerable population' category, as it has been lumbering around with multiple preexisting conditions that made it vulnerable to shocks for years now."Ross sees the second quarter as "make or break" for the carrier and questions the company's survival."At this point, we believe it's dependent on two things: a) U.S. government assistance in the form of a grant to cover payroll, health care, and/or other expenses, and b) how quickly volume returns as the economy reopens this month. If we don't get any good news in the next 30 days, we would not be surprised to see a wind down of operations on or before July 4th weekend."See more from Benzinga * Titanium's US Brokerage Fires Up In Resilient First Quarter * Toll Group Victimized Ransomware Attack * Maersk: Container Volumes Could Fall 25%(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
OVERLAND PARK, Kan., May 21, 2020 (GLOBE NEWSWIRE) -- (YRCW) YRC Freight has been recognized as 2019 LTL Carrier of the Year by Dick’s Sporting Goods. YRC Freight’s comprehensive network services the 726 Dick’s Sporting Goods locations as well as its vendors across North America. “Being recognized by one of the nation’s major retailers as its LTL Carrier of the Year is an honor and a testament to YRCW’s commitment to providing an enhanced customer experience,” said Jason Bergman, YRCW Chief Customer Officer and President of HNRY Logistics.
Banks are seeking to limit companies from accessing credit lines as the global pandemic continues to weigh on balance sheets. As businesses seek to amend their credit agreements to ask for covenant relief or a maturity extension, lenders are pushing to add so-called anti-hoarding provisions to limit a borrower’s ability to draw down on its revolving line of credit fully. Since the coronavirus pandemic took hold, companies including Hilton Worldwide and Ford Motor Co have drawn more than US$201bn in revolver capacity to ensure access to liquidity as the healthcare crisis interrupted supply chains, closed retail operations and forced companies to fire workers.
Purcell Julie & Lefkowitz LLP, a class action law firm dedicated to representing shareholders nationwide, is investigating a potential breach of fiduciary duty claim involving the board of directors of YRC Worldwide Inc. (NASDAQ: YRCW).
Medical waste company Stericycle and investment firm Saddle Point Management reached a settlement that hands the firm, founded by a former Pershing Square Capital Management partner, two board seats, said two sources familiar the matter. Stericycle will expand its 10-member board to 12 people and offer seats to James Martell, a former XPO Logistics director, and James Welch, a former chief executive at YRC Worldwide. The men were nominated by Saddle Point and bring expertise in trucking and logistics at a time some Stericycle investors have asked the $3.8 billion company to cut costs, pay down debt and sell non-core assets.
The shareholder said it wants changes in the Overland Park-based trucking company's board and management.
Moody's Investors Service ("Moody's") appended a limited default indicator (/LD) to the Caa1-PD Probability of Default rating of truck carrier YRC Worldwide Inc. ("YRC"). The limited default indicator follows the amendment to YRC's Amended and Restated Credit Agreement pursuant to which interest payable for the periods ending March 31, 2020 and June 30, 2020, will be partially payable in-kind. Moody's considers this amendment a distressed exchange.
In a letter to rank and file members, the negotiating committee of the International Brotherhood of Teamsters informed members that YRC Worldwide (NASDAQ: YRCW) was given a grace period on health and welfare and pension fund contributions due to volume declines associated with the coronavirus.The letter states that the grace period extended is for March contributions that were to be paid in April and that the carrier may seek an extension for "perhaps a few additional months going forward." All of YRC's less-than-truckload (LTL) operating companies – YRC Freight, Holland, New Penn and Reddaway – were reported to have experienced a "sharp decline in volumes over the past few weeks" due to customer closures and a weakened economy.Importantly, the letter stated that YRC has not asked for any wage concessions from the union and plans to pay the contractual wage increase agreed upon in the labor deal that was ratified in May 2019.Manufactured goods account for roughly 85% of LTL industry tonnage. Like most LTL carriers, YRC has exposure to an industrial customer base that has been on the decline for a year and a half now. The PMI, a survey of manufacturing supply executives, was under the all-important 50% level in March, implying the U.S. manufacturing sector is contracting.ISM's Purchasing Managers Index – SONAR: ISM.PMIIn March, the company issued an intra-quarter update announcing that tonnage was down 1.5% year-over-year in January, but up 0.3% in February. However, yield, or revenue per hundredweight, was off 4.2% year-over-year for the first two months of the year.The precursor to another quarter of revenue declines prompted YRC activist investor, Barna Capital Group, to announce plans to replace three of YRC's board members. The investment group said YRC's early-2020 performance highlighted by "softer pricing while volumes fell at the same time," was not as strong as results reported by other carriers. In comparison, other LTL carriers have seen mixed results. ArcBest Corporation (NASDAQ: ARCB) reported that its asset-based revenue increased 1.5% year-over-year in the first quarter of 2020 through late February, but competitor Old Dominion Freight Line (NASDAQ: ODFL) reported that revenue per day declined 0.2% in January and 1% in February. Saia, Inc. (NASDAQ: SAIA) reported a 7.7% year-over-year increase in tonnage during January with only a 0.4% increase in February. However, Saia's favorable year-over-year comparisons from an aggressive Northeast expansion campaign have ended.The notification to the Teamsters comes two weeks after credit rating service Moody's Investors Service downgraded the carrier's debt, liquidity and default probability ratings, citing general market deterioration to the global economy due to the coronavirus.Specifically related to YRC, Moody's sees "thin margins, lack of revolver availability and limited covenant headroom" leaving the company "vulnerable." The report went on to suggest that the carrier could struggle to realize expected cost savings from its new deal with its unionized labor force given "an already weak freight environment" and that its network optimization strategy could be at risk due to a slowdown and disruptions.YRC recently combined its sales force from four teams to one and is migrating all of its separate operating units onto one technology platform. The company's goal is for its customers to be able to access all five entities through one network under one point of contact. These moves, along with the previously implemented new labor deal as well as a new financial structure, are expected to lead to improved results.In September 2019, YRC entered into a new 0 million term loan agreement providing it with additional liquidity, a lower interest rate, less restrictive financial covenants and extended the maturity date to mid-2024. The new leverage covenant requires YRC to maintain adjusted last 12 months' (LTM) earnings before interest, taxes, depreciation and amortization (EBITDA) of $200 million, a threshold the carrier has not breached on a calendar year basis since 2011.However, YRC was recently granted a waiver on this covenant from its lenders for the remainder of 2020.YRC's 2019 year-end earnings report showed it generated $210.6 million in 2019 adjusted EBITDA, only modestly higher than that required by the lending covenant. The "thin margins" referenced by Moody's were a full-year operating ratio (OR) of 98.8% in the company's freight division and a 100.3% result in the regional segment.OR, operating expenses expressed as a percentage of revenue, is the inverse of operating margin.2019 was the last year the two divisions will be reported separately.YRC reported a net loss of $104 million, or $3.13 per share, in 2019 and ended the year with $902.8 million in debt and $80.4 million in liquidity compared to $203.8 million in liquidity at the end of 2018. YRC reported $22 million in cash flow from operations during 2019, down from $225 million in 2018 and $61 million in 2017. Cash from operations less amounts needed to fund capital expenditures (capex), or free cash flow, was $96 million to the negative. The carrier's high debt load/interest expense and cost structure make it difficult to reduce leverage.In 2019, YRC's union employees accounted for 79% of the company's 29,000 total employees.See more from Benzinga * More Humanitarian Aid For US Pours In By Air * Oceanex Fears Shortages In Newfoundland With Suspended Sailing * Trailer Orders Tank In March, Following Class 8 Trucks Into Abyss(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The $800 billion trucking industry scrambles to keep supply chains moving as coronavirus triggers skyrocketing demand for necessities.
The union, which represents nearly 80% of YRC Worldwide Inc. employees, said the grace period may extend beyond April.