Stock Alert for YRC Worldwide Inc. (YRCW)
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    Stock Alert for YRC Worldwide Inc. (YRCW)

    YRC Worldwide Inc. (YRCW), through its wholly owned operating subsidiaries, offers its customers a range of transportation services. These services include global, national and regional transportation, as well as logistics. Its operating subsidiaries include YRC National Transportation, which is a reporting unit for the transportation service providers focused on business opportunities in the regional national and international markets; YRC Regional Transportation is the reporting unit for the transportation service providers focused on business opportunities in the regional markets; YRC Logistics plans and coordinates the movement of goods worldwide to provide customers a single source for logistics management solutions, and YRC Truckload (Truckload) reflects the results of Glen Moore, a provider of truckload services throughout the United States.

    Share Statistics (11-July-11) FY 

    2009

    FY 

    2010

    %  

    Chg

    Q1 

    2010

    Q1 

    2011

    %  

    Chg

    Symbol YRCW Revenue, $Mn 4.87B 4.33B -11.1% 987.14M 1.12B 13.5%
    Current price $1.27 Gross marg. -6.4% 6.0% -193.8% 0.5% 4.0% 700.0%
    52wk Range: $0.55-$11.00 Oper. margin -5.6% -6.1%
    Avg Vol (3m): 2,623,100 Net margin -12.8% -7.4% -42.2% -27.8% -9.1% -67.3%
    Market Cap. 60.19M
    Shares Outstanding 47.77M EPS, $ -312.42 -6.81 -97.8% -12.14 -2.06 -83.0%

    Source: Reuters.com, SEC Filings.

    Recent News

    Shares of YRCW traded as much as 22% higher yesterday after the company said it had obtained a commitment for a $400 million asset-backed loan (ABL) to replace its existing loan agreement. The embattled trucking company also said key stakeholders provided support for its financial restructuring, which it expects to close this month.

    John Lamar, YRCW chief restructuring officer and lead director, commented in the release, “Replacing the ABS facility with this new facility should improve the company’s liquidity.  That helps support our industry’s seasonal pattern of revenues and provides the financial flexibility and run room we need to grow the business.”

    YRCW shares were hit last week after news broke that a federal appeals court had reversed a lower court’s previous dismissal of a lawsuit brought by rival Arkansas Best Corp.’s (NASDAQ: ABFS) freight unit against YRCW and its labor union, the International Brotherhood of Teamsters.  As reported by Reuters, YRCW maintains that the claims are without merit and believes the decision will have no impact on its restructuring efforts.

    YRCS has been moving within a range of $0.55 – $11.00 over the past 52-weeks. It is currently trading above its 50-day moving average of $0.87 and below its 200-day moving average of $2.23.

    Financial Summary

    YRCW reported a net loss of $102 million and $(2.14) loss per share for the first quarter of 2011, narrowing the year-ago quarter loss of $274 million and $(13.15) loss per share.

    YRCW reported first-quarter consolidated operating revenue of $1.1 billion and consolidated operating loss of $68 million, which were impacted by extreme winter weather and included $8 million of restructuring professional fee expenses. The Company also recorded a $17 million charge to increase its self-insured claims reserve, primarily related to workers’ compensation claims, which occurred during or were open and unsettled at the 2009 integration of the Yellow and Roadway network operations.  As a comparison, YRCW reported consolidated operating revenue of $987 million for the first quarter of 2010 and an operating loss of $233 million, which included a $108 million charge for union employee equity awards, $12 million of restructuring professional fee expenses and an $11 million charge for prior years’ self-insured claims.

    At March 31, 2011, the Company reported cash and cash equivalents of $157 million, unrestricted availability of $8 million and unused restricted revolver reserves of $71 million, subject to the terms of the company’s credit agreement, as against cash and cash equivalents of $143 million, unrestricted availability of $51 million and unused restricted revolver reserves of $71 million, subject to the terms of the Company’s credit agreement, at December 31, 2010.

    Financial Strength (11-July-2011) Company Industry Sector S&P 500
    Quick Ratio (MRQ) 2.22 1.29 0.72
    Current Ratio (MRQ) 0.53 2.34 1.60 1.05
    LT Debt to Equity (MRQ) 20.74 46.90 135.78
    Total Debt to Equity (MRQ) 29.50 67.93 180.74
    Interest Coverage (TTM) -3.41 0.26 0.20 18.32

    Source: Reuters.com, SEC Filings.

    Analyst Consensus

    This is the consensus forecast among 13 polled investment analysts. Against the YRC Worldwide Inc company.

    Analyst Detail Buy Outperform Hold Underperform Sell No Opinion
    Latest 0 0 4 6 3 0
    4 weeks ago 0 0 4 6 4 0
    2 months ago 0 0 4 6 4 0
    3 months ago 0 0 5 5 4 0
    Last year 0 0 5 4 2 0

    The four analysts offering 12-month price targets for YRCW have a median target of 0.50, with a high estimate of 2.00 and a low estimate of 0.00. The median estimate represents a -56.52% decrease from the last price of 1.15.

    Source: markets.ft.com

    Consensus Estimates Analysis

    # of Estimates Mean High Low 1 Year Ago
    SALES (in millions)
    Quarter Ending Sep-11 6 1,251.48 1,349.00 1,190.60
    Quarter Ending Dec-11 6 1,153.72 1,197.00 1,092.00
    Year Ending Dec-11 9 4,776.18 5,048.00 4,668.60 4,947.44
    Year Ending Dec-12 7 5,088.59 5,466.00 4,972.60 5,879.10
    EARNINGS (per share)
    Quarter Ending Sep-11 11 -0.73 -0.27 -1.38 -1.00
    Quarter Ending Dec-11 11 -0.87 -0.45 -1.58 -1.25
    Year Ending Dec-11 11 -4.39 -3.25 -6.77 -3.86
    Year Ending Dec-12 9 -2.14 -1.05 -4.00 -2.50
    LT Growth Rate (%) 1 15.00 15.00 15.00 15.00

    Technical Analysis

    Source: http://stockcharts.com

    YRCW is within its Bollinger Bands. This is a normal condition suggesting that it is neither overbought nor oversold relative to the recent price action.

    The MACD for YRCW currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9-day moving average. Second, the MACD is above 0, which implies that the underlying moving averages are trending higher.

    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    July11-2011 symbol Share, $ $ Mn 2011 2012 2011 2012
    Arkansas Best Corp. ABFS 26.05 662.22M n/a 19.89 0.34 0.32
    J.B. Hunt Transport Services Inc. JBHT 47.90 5.76B 22.92 18.86 1.30 1.16
    Werner Enterprises Inc. WERN 25.55 1.86B 18.70 15.77 0.92 0.86
    Con-way Inc. CNW 40.63 2.25B 23.62 16.19 0.42 0.40
    Trucking Median 23.87 n/a 0.81 n/a
    YRC Worldwide Inc. YRCW 1.26 60.19M n/a n/a 0.01 0.01

    Source: Thomson Financial

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