YRC Worldwide Inc.’s second-quarter loss was an improvement compared to a year ago as executives said the struggling trucking company continues to move in the right direction.
Even so, shares on Wednesday sold off as the Overland Park, Kan., less-than-truckload company reported it lost $15.1 million, or $1.72 a share, on revenue of $1.24 billion. A year ago, YRC lost $22.6 million, or $3.21 a share, on revenue of $1.25 billion.
Shares plunged $5.06, or 17.7 percent, to $23.52. Shares are up 248.4 percent since Jan. 1 and are up 363.9 percent from a year ago.
YRC’s results came in worse than industry analyst expectations of a loss of 64 cents per share and revenue of $1.26 billion.
YRC’s regional Holland, Reddaway and New Penn subsidiaries showed improvement. The company’s large freight division, YRC Freight, did slightly worse than a year ago, which executives attributed in large part to “network optimization headwinds” that included closing terminals and shifting employees to different locations. In addition, YRC Freight had trouble handing an increase in shipments in May as it was implementing the changes and incorporating new technology, executives said.
YRC was created in 2003 after trucking company Yellow Corp. purchased the former Akron-based Roadway.
“The second-quarter results reflect that we’re continuing to make progress on our turnaround efforts at YRC Worldwide,” James Welch, chief executive officer, said in opening comments during a conference call with industry analysts.
“Our regional carriers performed exceptionally well,” Welch said. “At YRC Freight, certainly the change in operations in May was a big hurdle. However, there is no doubt that YRC Freight is the company with the most potential.”
The company continues to track favorably with YRC’s internal business plan, Welch said.
YRC executives said they are working on refinancing debt that is coming due in 2014 and 2015, starting with the filing on July 22 of a $350 million “shelf registration statement” with federal regulators. A previous shelf registration expired in 2012.
Jamie Pierson, YRC’s chief financial officer, said the company has retained Credit Suisse to go over options regarding the debt.
During the second quarter, YRC spent $22 million to lease new tractors and trailers and to buy other new technology, executives said.
“This is the first meaningful addition of new equipment to our fleet since 2009,” Pierson said.
YRC purchased 10,000 hand-held “productivity enhancing devices” that employees will use to do such things as track shipments, he said.
“We are increasing our investment in equipment and technology to position us for the future,” Pierson said.
Jim Mackinnon can be reached at 330-996-3544 or jmackinnon@thebeaconjournal.com.