Results 1 to 1 of 1
  1. #1
    I Am Rocking Now

    Join Date
    Aug 2013
    Local Union
    Retired
    Employer
    Retired
    Location
    Central Oregon
    Posts
    1,369
    Rep Power
    86

    Default YRC paints rosier picture of landscape

    I posted an article about this and what I've garnered is YRC in their last re-fi deal must meet or exceed financial benchmarks to gain access to funds,leverage their debt covenants is a fancy way of saying they are allowed to spend more than agreed upon if business/profits improve more than anticipated,got their hands slapped in the first/second quarter,unlike the last deal there doesn't appear to be an open line of credit (ABL Loan) to spend willy nilly,conditions must be met monthly or they are in danger of being cut off,let's say they make good on projections and make 16-21M,that most likely will be it for the year as we head into winter,going to be a bumpier road ahead.

    YRC paints rosier picture of landscape in unusual third-quarter update – DC Velocity

    As a result of the July and August performances, YRC estimated that its third-quarter operating income should be $16 million to $21 million higher than reported operating income in last year's third quarter. Earnings before interest, taxes, depreciation, and amortization (EBITDA) should be $13 million to $18 million higher than last year's third quarter, the company said.

    Thomas S. Albrecht, transport analyst at investment firm BB&T Capital Markets, said the third-quarter numbers show improvement. Albrecht said that YRC Freight must improve its on-time delivery performance to 96 or 97 percent from 90 percent. He added that YRC Freight and YRC Regional need to get "far more aggressive" on pricing, calling on both units to hike rates by 5 to 10 percent across their broad account bases and not just on individual lanes. He also said the two units need to shed accounts that are marginally profitable or unprofitable.

    One of YRC Freight's challenges has been the overreliance on large corporate accounts that use their leverage to strike excellent deals with the carrier. YRC Freight, which has struggled mightily for the past six years, would have risked collapse several years ago if it walked away from large accounts. However, with LTL demand gaining momentum and carriers remaining rational in their pricing, it is believed that YRC's large customers hold less sway over the carrier than they used to.
    Last edited by capmac48; 09-18-2014 at 11:37 AM.

 

 

LinkBacks (?)


Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279 280 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 301 302 303 304 305 306 307 308 309 310 311 312 313 314 315 316 317 318 319 320 321 322 323 324 325 326 327 328 329 330 331 332 333 334 335 336 337 338 339 340 341 342 343 344 345 346 347 348 349 350 351 352 353 354