YRC Worldwide Inc. on Monday, July 12, provided an update on its expected second-quarter results. For the second quarter of 2010, tonnage per day for YRC National was 27,000 and for YRC Regional was 26,900, which were 11.0 percent and 15.2 percent, respectively, higher than the tonnage per day for the first quarter of 2010.
The Overland Park, Kan.-based company says it expects second-quarter adjusted EBITDA within a range of $35 million to $45 million, excluding the YRC Logistics segment which will be reported as discontinued operations. When including the expected adjusted EBITDA loss from discontinued operations of $9 million to $11 million, the company expects second-quarter adjusted EBITDA within a range of $24 million to $36 million, which exceeds the $5 million covenant level required by its credit agreement; as a comparison, the company’s adjusted EBITDA for the first quarter of 2010 was a loss of $53 million.
The company says that at June 30, its estimated cash and cash equivalents were $142 million, unused restricted revolver reserves were $129 million, and unrestricted availability was $8 million, for a total of $279 million; as a comparison, at March 31, the company’s reported cash and cash equivalents were $130 million, unused restricted revolver reserves were $107 million, and unrestricted availability was $4 million, for a total of $241 million.
The company says it expects to record an $83 million noncash 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 remeasured as of the June 29 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 noncash charge related to the same March 2010 union equity-based awards.
