Yellow | Yrc Worldwide Inc. (yrcw) Ceo Darren Hawkins On Q3 2019 Results - Earnings Call Transcript

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https://seekingalpha.com/article/43...kins-q3-2019-results-earnings-call-transcript

Darren Hawkins

2019 has been a challenging trade environment all year long, but also a productive year for YRCW. As we look beyond Q3, our path forward is defined and currently well underway with our multiyear strategy. We have cleared the hurdles of the ratification of a new five-year labor agreement, providing us more stability and flexibility and an improved capital structure with our refinance term loan.

Additionally, we implemented an enterprise-wide sales and operations leadership structure, while clearing and extending the runway for network optimization across all brands. These changes are intended to drive asset and property utilization, while building density and creating efficiency across multiple productivity measures.

With the focus on greater efficiencies, we have completed 12 consolidations of service centers, and we are on track to hit our goal of approximately 25 service centers to be consolidated by the end of the year. As I've mentioned, this just scratches the surface of the effort and we will continue to enhance our network through terminal consolidations for the next several quarters.

In closing, while our network optimization strategy helps offset the weak demand environment we are experiencing and Q4 cost controls will continue to be a primary focus until these conditions improve. I would like to thank our 31,000 employees for their commitment to safety and dedication to getting the right things done to modernize all of our companies.

T.J. O'Connor

In order to increase efficiencies and serve our customers, we have developed and deployed a new operations structure. This structure leverages our most experienced and talented build management leaders from all of our brands. The area and division managers are responsible for multiple operating company brands within their assigned geography.

We are leveraging best practices from all brands, including the regional next day model. In fact, the speed and flexibilities of the regional service models at Holland, New Penn, and Reddaway remain a core fundamental in our network optimization. All of our brands will remain strong and vibrant in their respective markets. Holland, New Penn, and Reddaway all provide great value to our customers. This best-in-class regional LTL companies, and then the size, scope and endless capabilities of YRC Freight to go anywhere in North America, as well as our newest company, HNRY Logistics.

:hyper:
 
Darren how are we still close to a Billion dollars in debt after over a decade of givebacks? What's the plan to pay down this debt?
I'm glad you asked that. We're still working out the details, but that will require the participation of our rank and file employees. We're even talking about a plan that will allow our laid off employees to participate in keeping this great company afloat. I can say this, for the first time, employees will be able to choose how they help. An employee can designate where their contribution goes. CEO pay, senior VP bonuses, even down to adopting a tractor and trailer and paying for the rebranding of that unit, are just a few of the ideas being talked about. Another option is making YRCW the beneficiary of their life insurance policies. So you see we have a variety of options in place. Next question.....
 
I'm glad you asked that. We're still working out the details, but that will require the participation of our rank and file employees. We're even talking about a plan that will allow our laid off employees to participate in keeping this great company afloat. I can say this, for the first time, employees will be able to choose how they help. An employee can designate where their contribution goes. CEO pay, senior VP bonuses, even down to adopting a tractor and trailer and paying for the rebranding of that unit, are just a few of the ideas being talked about. Another option is making YRCW the beneficiary of their life insurance policies. So you see we have a variety of options in place. Next question.....
We are hearing because of so many tractors missing mirrors, and sun visors, that YRCW is investing a new technology that will equip all existing, and new tractors with retractable mirrors, and voice controlled, hide away visors? Can you expand on that Darren?
Darren; We have been in talks with a tech company located in the Ukraine, but at this time I cannot comment any further. Next question?
 
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