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

    YRC Worldwide Inc. (YRCW) is a provider of transportation and global logistics services. It is the holding company for a portfolio of successful brands including YRC, YRC Reimer, YRC Glen Moore, Reddaway, Holland   and New Penn, and provides China-based services through its Jiayu and JHJ joint ventures. The Company has the largest, most comprehensive less-than-truckload (LTL) network in North America with local, regional, national and international capabilities. Through its team of experienced service professionals, YRCW offers industry-leading expertise in heavyweight shipments and flexible supply chain solutions, ensuring customers can ship industrial, commercial and retail goods with confidence.

    Share Statistics (19-Sept-11)

    FY2009 FY2010 % Chg Q22010 Q22011 % Chg
    Symbol YRCW Revenue, $Mn 4.87B 4.33B -11.1% 1.12B 1.26B 12.5%
    Current price $0.07 Gross marg. -6.4% 6.0% -193.8% 6.4% 8.3% 29.7%
    52wk Range: $0.06-$8.25 Oper. margin -5.6% -0.4%
    Avg Vol (3m): 10,106,000 Net margin -12.8% -7.4% -42.2% -0.8% -3.4% 325.0%
    Market Cap. 3.35M
    Shares Outstanding 47.77M EPS, $ -312.42 -6.81 -97.8% 0.42 -0.72 -271.4%

    Source: Reuters.com, SEC Filings.

    Investment Highlights

    Shares of YRCW lost 82.1% in the last five days; 89.5% in the last month; and 99.0% year to date.

    Shares of the struggling trucker traded as much as 29% higher on Monday, recovering from a plunge on Friday, when shareholders at a special meeting agreed to increase the company’s share count as part of its financial restructuring.

    The company plans to conduct a reverse split this December or January to boost the price over $1, Jamie Pierson, interim CFO of YRCW, said in an interview with Dow Jones Newswire.

    According to the report, the outcome of Friday’s special meeting boosted the number of outstanding YRCW shares to about 1.9 billion, from about 48 million, because of preferred shares converted into common shares. Additional preferred shares available to be converted to common shares after two years could increase the figure to about 6 billion, not counting the impact of the planned reverse stock split.

    In a filing with the SEC on Friday, YRCW disclosed that it received an additional staff determination letter from The NASDAQ Stock Market on September 12, 2011, stating that, based on the closing bid price of the Company’s common stock for the last 30 consecutive business days, a deficiency exists with regard to NASDAQ Listing Rule 5450(a)(1), which requires a minimum bid price of $1.00 per share.

    Pursuant to NASDAQ’s broad discretionary authority under Listing Rule 5101, the staff determination letter determined not to provide the Company with a compliance period of 180 days generally provided under the Listing Rules, and that, accordingly, this matter serves as an additional basis for delisting the Company’s common stock from NASDAQ.

    As previously disclosed, on July 22, 2011, the Company received a staff determination letter from NASDAQ stating that the Company’s common stock should be delisted because the Company issued Series B Convertible Preferred Stock, 10% Series A Convertible Senior Secured Notes due 2015, and 10% Series B Convertible Senior Secured Notes due 2015 at the closing of the Company’s exchange offer and related restructuring transactions in violation of NASDAQ Listing Rules 5635(b) and 5635(d) and because such issuance raises public interest concerns under NASDAQ Listing Rule 5101. The Company has appealed the staff’s determination, including its determination with respect to the closing bid price deficiency, to a hearing panel pursuant to the procedures set forth in the NASDAQ Listing Rule 5800 series.

    Source:

    http://online.wsj.com/article/BT-CO-20110916-709635.html

    http://biz.yahoo.com/e/110916/yrcw8-k.html

    Financial Summary

    YRCW reported a net loss of $39 million for the second quarter of 2011, compared to a net loss of $10 million reported for the second quarter of 2010, which included an $83 million after-tax benefit for a fair value adjustment to an equity-based award.

    The Company’s consolidated operating revenue for the second quarter of 2011 was $1.257 billion and consolidated operating loss was $2 million, which included $17 million of restructuring professional fees. As a 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.

    Source: http://investors.yrcw.com/releasedetail.cfm?ReleaseID=593478

    Financial Strength (19-Sept-2011)

    Company

    Industry

    Sector

    S&P 500

    Quick Ratio (MRQ) 1.86 1.30 0.76
    Current Ratio (MRQ) 1.26 1.99 1.63 1.12
    LT Debt to Equity (MRQ) 25.44 49.31 110.87
    Total Debt to Equity (MRQ) 36.79 72.96 149.02
    Interest Coverage (TTM) -1.27 0.37 0.34 23.27

    Source: Reuters.com, SEC Filings.

    Analyst Consensus

    Analyst Recommendations and Revisions

    1-5 Linear Scale

    Current

    1 Month
    Ago

    2 Month
    Ago

    3 Month
    Ago

    (1) BUY 0 0 0 0
    (2) OUTPERFORM 0 0 0 0
    (3) HOLD 4 4 4 4
    (4) UNDERPERFORM 6 6 6 6
    (5) SELL 3 3 3 4
    No Opinion 0 0 0 0
    Mean Rating 3.92 3.92 3.92 4.0

    Source: http://www.reuters.com/finance/stocks/financialHighlights?symbol=YRCW.O

    Consensus Estimates Analysis

    # of Estimates

    Mean

    High

    Low

    1 Year Ago

    SALES (in millions)
    Quarter Ending Sep-11 7 1,272.57 1,314.40 1,230.20 1,189.00
    Quarter Ending Dec-11 7 1,196.11 1,253.90 1,140.20 1,088.00
    Year Ending Dec-11 9 4,826.66 4,927.28 4,668.60 4,577.79
    Year Ending Dec-12 7 5,113.80 5,278.70 4,961.00 5,482.00
    EARNINGS (per share)
    Quarter Ending Sep-11 9 -0.49 -0.02 -0.85 -1.00
    Quarter Ending Dec-11 8 -0.70 -0.02 -1.18 -1.08
    Year Ending Dec-11 7 -3.87 -2.17 -5.34 -4.35
    Year Ending Dec-12 7 -1.91 -0.08 -2.77 -1.50
    LT Growth Rate (%) 1 15.00 15.00 15.00 15

    Technical Analysis

    Source: http://stockcharts.com

    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    Sept19-2011 symbol Share, $ $ Mn 2011 2012 2011 2012
    Con-way Inc. CNW 25.41 1.41B 14.95 10.81 0.27 0.25
    Arkansas Best Corp. ABFS 19.97 507.66M 76.81 14.16 0.26 0.25
    JB Hunt Transport Services Inc. JBHT 38.91 4.68B 18.44 15.26 1.04 0.92
    Werner Enterprises Inc. WERN 23.06 1.68B 16.47 14.15 0.83 0.78
    Trucking Median       18.59 n/a 0.51 n/a
    YRC Worldwide Inc. YRCW 0.07 3.39M n/a n/a 0.00 0.00

    Source: Thomson Financial

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