YRC Worldwide (YRCW) In Discussions to Modify Terms of its Credit Facilities; Update Q4 Outlook

December 24, 2008 8:16 AM EST

YRC Worldwide Inc. (Nasdaq: YRCW) announced that it is in discussions with its banking group to modify certain terms of its credit facilities that would enhance the company's financial flexibility including changes to its leverage ratio. As a result of the discussions, YRC expects to remain in compliance with its covenants in its credit facilities (including any minimum leverage ratio requirement) at year end. In addition, the company has terminated its tender offer that expired at midnight on December 23, 2008 since the proposed wage reduction amendment to the National Master Freight Agreement, which was a condition of the tender offer, has not yet been ratified.

Fourth Quarter 2008 Update

"Consistent with other industry reports, the economic recession continues to put pressure on our volumes and pricing," commented Zollars. "With that said, the gap between our volume trends and others within the less-than-truckload market appears to be narrowing as we further enhance our networks and improve our financial position."

Key volume statistics for the fourth quarter-to-date as of November 30, 2008 compared to the same period in 2007 include:

-- YRC National Transportation total tonnage per day down 11.8%

-- YRC Regional Transportation total tonnage per day down about 11% when adjusting for the network changes in the first quarter 2008. Total tonnage per day is down 20.9% without adjusting for the network changes.

YRC Worldwide is one of the largest transportation service providers in the world, is the holding company for a portfolio of successful brands including Yellow Transportation, Roadway, Reimer Express, YRC Logistics, New Penn, Holland, Reddaway, and Glen Moore.[SM]

Related Categories

Corporate News
Guidance

Stocks Mentioned

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?