YRCW expects $18M-$22M 3Q operating loss

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Yrcw

YRC Worldwide Inc. on Monday, Oct. 18, provided an update on its expected third-quarter results. Tonnage per day for YRC National and YRC Regional was 1.2 percent and 2.1 percent, respectively, higher than the tonnage per day for the second quarter of 2010. Revenue per shipment during the third quarter of 2010 for YRC National and YRC Regional was 1.9 percent and 3.7 percent, respectively, higher than the third quarter of 2009.

The company expects third-quarter 2010 positive adjusted EBITDA within a range of $42 million to $46 million. For the second and third quarters of 2010, the company expects cumulative adjusted EBITDA within a range of $82 million to $86 million, which it says exceeds the $50 million covenant level required by its credit agreement.

The company expects a third-quarter 2010 operating loss within a range of $18 million to $22 million. As a comparison, the company reported an operating loss of about $35 million for the second quarter of 2010 when excluding an $83 million noncash benefit from an adjustment to the fair value of the March 2010 union employee equity award.

At Sept, 30, 2010, the company’s estimated cash and cash equivalents were $115 million, restricted revolver reserves were $123 million, and unrestricted availability was $46 million, for a total of $284 million. During the third quarter of 2010, the company repaid $25 million of outstanding borrowings on its asset-backed securitization facility.