Yellow | Questions Remain for YRC Worldwide

[R-14Driver]

Deutsche Bank published its research report on YRC Worldwide Inc. (NasdaqGS: YRCW) following adjusted 3Q10 EBITDA results.

YRCW reported 3Q2010 adjusted EBITDA of $44.3M which is a $4.4M increase from 2Q2010. Although this is an improvement, Deutsche Bank is hesitant because of equity issues and has reiterated their Hold rating.

Deutsche Bank writes, "YRCW reported $5 million in operating cash flow; however, $50 million in other changes in working capital (related to accrued interest) drove the positive results. With Q3 interest expense of roughly $44 million, operating cash flow would have been negative if cash interest had not been deferred."

YRCW is also in discussions with its lenders regarding timing of cash interest payments and its capital structure.

Questions Remain for YRC Worldwide | Benzinga.com

 

[albag]

Deutsche Bank published its research report on YRC Worldwide Inc. (NasdaqGS: YRCW) following adjusted 3Q10 EBITDA results.

YRCW reported 3Q2010 adjusted EBITDA of $44.3M which is a $4.4M increase from 2Q2010. Although this is an improvement, Deutsche Bank is hesitant because of equity issues and has reiterated their Hold rating.

Deutsche Bank writes, "YRCW reported $5 million in operating cash flow; however, $50 million in other changes in working capital (related to accrued interest) drove the positive results. With Q3 interest expense of roughly $44 million, operating cash flow would have been negative if cash interest had not been deferred."

YRCW is also in discussions with its lenders regarding timing of cash interest payments and its capital structure.

Questions Remain for YRC Worldwide | Benzinga.com

This only underscores the fact that YRCW has only been given a reprieve. There needs to be fundemental changes made. We shall see if that comes to pass.

 

[Cab Lizzard]

Wonder if they should merge with the Post Office ???

 

[truckchick1]

My only question is this. I have seen multiple interest payments deferred. What happens when they all become due at the same time. It looks like to me that YRC is having a hard time keeping operating cash flow (pay checks & lights), with out this doesn't matter how much they owe.

 

[crazy]

My only question is this. I have seen multiple interest payments deferred. What happens when they all become due at the same time. It looks like to me that YRC is having a hard time keeping operating cash flow (pay checks & lights), with out this doesn't matter how much they owe.

It seems that with each deferral payment ,there are fees involved to the tune of millions...

 

[Jay C]

Questions Remain for YRC Worldwide and questions remain for the economy.
One must admit we had it made for decades. The funds were making it big in the stock market. Trucking companies, even the highly mismanaged ones were making money.
All of a sudden the bubble of all bubbles goes

and down goes Wall St, AIG, 1000 state banks, a 1000 trucking companies, the financial system, the federal reserve credit facilities. And 11 million people went down jobless and not to mention the 2 million foreclosed homes at the auction..many more to come

Two huge stimulus attempts by the government stimulated nothing. There are a lot of reasons for it. The system has been living off credit for too long, the financial system was inflated with toxic debt (mortgages) and the politicians taxed the sheeeit out of the industry base for too long.

Not to mention we have president who is hostile toward business and is going to tax the sheeeit out of them again and smile about it so there is no business out there to have a demand for credit. Big corporations have millions in cash and are not using it or hiring in a show of who the boss is. For you Bam-Bam fans out there it sure isn't him who's the boss

The economy will never be what it once was, the job market will never be what it once was and of course neither will YRC

The only difference between YRC, FedEX freight and Conway is YRC has debt to service but they're all losing millions

ABF too​

 

[oldtimetrucker]

The only difference between YRC, FedEX freight and Conway is YRC has debt to service but they're all losing millions
ABF too

There is only one big difference between the haulers only one is a true union carrier, FEDEX, CONWAY and Now YRC are well below union scale...

 

[Jay C]

There is only one big difference between the haulers only one is a true union carrier, FEDEX, CONWAY and Now YRC are well below union scale...

The one big difference there is ABF was not in a state of collapse under the weight of their own debt. YRC could have easily filed but they never say quit. They had nothing to lose but shift to a competitive model that required a cultural transformation.

Call Zollars what you want but he stared down the union, senior managers were terminated, sacred work rules were slaughtered just to survive. Only the strongest medicine in the form of leadership had any chance of accomplishing this much change.

Given the rules of the game he performed a miracle in that 25,000 YRC'ers will still be trucking.
On the other hand ABF has the highest cost structure on the planet. You think top ABF management wants the new work rules YRC has? I think so. You think ABF has the management leadership to shift to a competitive model. I don't think so

Zollars was asked to step down
but what the heck, nobody liked him anyway
did you send that thank you card yet?​

 

[series60]

Prediction - Soon New Penn will be shut down, then Holland will be merged with YRC, then soon after will be shut down because union pay scale is too high.

 

[Northern Flash]

Prediction - Soon New Penn will be shut down, then Holland will be merged with YRC, then soon after will be shut down because union pay scale is too high.

Let's see.....
Shut down New Penn (profitable)
Shut down Holland (profitable)

The reason for shutting down YRC wouldn't be because of the Union pay scale being too high, it would be because there wouldn't be any cash to operate with. Also, how much lower than the non-Unions does the Union scale need to be for YRCW to survive? (because it's already is lower)

 

[wolf]

The one big difference there is ABF was not in a state of collapse under the weight of their own debt. YRC could have easily filed but they never say quit. They had nothing to lose but shift to a competitive model that required a cultural transformation.

Call Zollars what you want but he stared down the union, senior managers were terminated, sacred work rules were slaughtered just to survive. Only the strongest medicine in the form of leadership had any chance of accomplishing this much change.

Given the rules of the game he performed a miracle in that 25,000 YRC'ers will still be trucking.
On the other hand ABF has the highest cost structure on the planet. You think top ABF management wants the new work rules YRC has? I think so. You think ABF has the management leadership to shift to a competitive model. I don't think so

Zollars was asked to step down
but what the heck, nobody liked him anyway
did you send that thank you card yet?​

Joe your inccorrigible.....the only card I would send Zollars would be one of bereavement, to Beth!

 

[Jay C]

Joe your inccorrigible.....the only card I would send Zollars would be one of bereavement, to Beth!

You know mergers and buy-outs happen all the time on Wall St. The fact they paid too much doesn't mean it was doomed for failure.

A big merger is already doomed before the merger even gets rolling most of the time any way. Looking at the train wreck from a business perspective there's probably nothing riskier or more prone to failure than one company merging with another company and buying two more companies. It's more of a curse. Most buyouts fail. Let's assume this merge buyout was planned for some time. Whatever the companies had in mind that caused them to merge in the first place didn't work out that way in the end.

But you can't call it a failure yet cuz of the fact he made a miracle comeback and got the gold standard mother of all work rules in place that makes the company a going concern. You got to be cool to pull that off

 

[wolf]

You know mergers and buy-outs happen all the time on Wall St. The fact they paid too much doesn't mean it was doomed for failure.

A big merger is already doomed before the merger even gets rolling most of the time any way. Looking at the train wreck from a business perspective there's probably nothing riskier or more prone to failure than one company merging with another company and buying two more companies. It's more of a curse. Most buyouts fail. Let's assume this merge buyout was planned for some time. Whatever the companies had in mind that caused them to merge in the first place didn't work out that way in the end.

But you can't call it a failure yet cuz of the fact he made a miracle comeback and got the gold standard mother of all work rules in place that makes the company a going concern. You got to be cool to pull that off

Miracle??? :LMAO: He ain't done ::. He's been lucky that everyone has bailed his dumb ass out for their own reasons, not because of his brilliant "comprehensive plan". If this thing survives give the credit to the banks for showing restraint, the bond holders for taking it as a tax deduction, and the Teamsters for taking one for the Team. Plan!!! God Joe.

 

[Jay C]

Miracle??? :LMAO: He ain't done ::. He's been lucky that everyone has bailed his dumb ass out for their own reasons, not because of his brilliant "comprehensive plan". If this thing survives give the credit to the banks for showing restraint, the bond holders for taking it as a tax deduction, and the Teamsters for taking one for the Team. Plan!!! God Joe.

bingo, exactly my point..he keeps the banks at bay, screwed the
bondholders and gave the teamsters medicine so harsh they have to overcome the gag reflex to swallow it.
The good news is they're still in the game. This is a miracle

 

[wolf]

bingo, exactly my point..he keeps the banks at bay, screwed the
bondholders and gave the teamsters medicine so harsh they have to overcome the gag reflex to swallow it.
The good news is they're still in the game. This is a miracle

Ain't no way am I gonna give that Miracle to Zollars. Going with your thinking, some idiot sets himself on fire it would be a miracle if he survies. You think he deserves accolades for screaming for someone to put him out.

 

[ToppinHills=N=PoppinPills]

I cant believe a certain person kisses up to the guy, who is responsible For Starting This Entire Mess by acting on his own Greed and Arrogance!


Just remember when the pension fund becomes insolvent who was the person that laid the final straw that broke the camel's back!

 

[Hooddock]

Deutsche Bank published its research report on YRC Worldwide Inc. (NasdaqGS: YRCW) following adjusted 3Q10 EBITDA results.

YRCW reported 3Q2010 adjusted EBITDA of $44.3M which is a $4.4M increase from 2Q2010. Although this is an improvement, Deutsche Bank is hesitant because of equity issues and has reiterated their Hold rating.

Deutsche Bank writes, "YRCW reported $5 million in operating cash flow; however, $50 million in other changes in working capital (related to accrued interest) drove the positive results. With Q3 interest expense of roughly $44 million, operating cash flow would have been negative if cash interest had not been deferred."

YRCW is also in discussions with its lenders regarding timing of cash interest payments and its capital structure.

Questions Remain for YRC Worldwide | Benzinga.com

Smoke and mirrors!!!!!!!!

 

[spn62]

Several posts here have been exactly right. At some point, all that money that's owed will have to paid one way or the other. Unless there is a fundamental shift in the way this company operates, I don't see it continuing, at least in its current structure. You have been given a reprieve, start looking around, don't wait for the gate to be closed. You may just be fortunate enough to live in an area that is hiring drivers and management personnel, depending on which you are.

 

[Jay C]

I'm not kissing up to Zollars. There is no such thing as greed. Everyone out there in the world of capitalism is a capitlaistic pig. Let's say Zollars masterminded the buyouts and everyone else agreed
it was a huge failure but all top guns became millionaires. End of story. That's what it is all about. It is just one of many failed merges

Yellow-Roadway were two desperate companies that merged to form one big desperate company
It was a culture misfit big time that had a bad effect on productivity and bottom line

speaking of failed merges..there were many, just a few
AOL-Time Warner $164B
MCI- WorldCom $42B
Daimler Benz-Chrysler $37B
some failed so spectacularly that the combined company went down. Others resulted in the demise of the CEO's that masterminded them.

Look, fundamental changes were made..what do you call the new work rules? The new work rules are the mother of all fundamental changes
now, if only the pension would return..this hasn't happened yet

this hasn't happened yet either--

thank Zollars for that today
why don't you?​

 

[almost13ranch]

Let's see.....
Shut down New Penn (profitable)
Shut down Holland (profitable)

You have to look at this in a different way. It makes no difference if these two companies are profitable. What makes a difference in this case is what it will take to make YRCW survive. If New Penn and Holland are closed, and for that matter Reddaway, the effect on expenses is immediate. No matter what they bring in in profit, the elimination of the expenses of running those companies is huge.