YRC to complete restructuring, ends quarter with $156 million of cash

By Lisa Kerner

Charlotte, N.C., July 22 - YRC Worldwide Inc. is making money on an operating basis again, and the company expected to close the final step of its comprehensive recovery plan later in the day on Friday, said retiring chairman, president and chief executive officer Bill Zollars during the company's second-quarter earnings call.

Zollars said the company also posted its seventh consecutive quarter of EBITDA improvement.

YRC issued new convertible notes for the infusion of $100 million of new capital and improved liquidity and replaced the company's existing asset-backed securitization facility with a new $400 million three-year asset-based loan facility.

YRC ended the second quarter of 2011 with cash and cash equivalents of $156 million and $8 million available under its revolver.

The company reported a net loss of $39 million for the second quarter of 2011, compared with a net loss of $10 million for the second quarter of 2010.

YRC also reported consolidated operating revenue of $1.257 billion for the second quarter and a consolidated operating loss of $7 million, which included $17 million of restructuring professional fees. In comparison, the company reported consolidated operating revenue of $1.119 billion for the second quarter of 2010 and consolidated operating income of $48 million, which included an $83 million benefit for a fair value adjustment to an equity-based award and $9 million of restructuring professional fees.

YRC is an Overland Park, Kan.-based transportation service provider.

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