A year after it narrowly averted a bankruptcy filing, the No. 1 LTL (less-than-truckload) carrier said it still faced financial challenges but was making progress in its turn-around quest.
"Our business is generating positive cash flow and our ability to continually improve ... should provide the needed liquidity as we move through the seasonally slower first quarter," said YRC Chief Financial Officer Sheila Taylor.
The improved operating momentum should help YRC comply with its credit agreement financial covenants in the first quarter of 2011, according to Taylor.
The company reported revenue of $1.09 billion for the quarter, beating the $1.07 billion expected by analysts on average, according to Thomson Reuters I/B/E/S.
YRC said it earned $23 million, or 49 cents a share, in the fourth quarter, compared to $119.5 million, or $41.06 a share, a year earlier. The fourth quarter of 2010 included a $52 million benefit from an income tax settlement, while the company's earnings in 2009 included a $177 million after-tax gain on debt redemption.
Helping the fourth-quarter results, the company sold excess property for $14 million and closed on $17 million of new sale and financing leasebacks. In addition, the company received $12 million in proceeds related to a working capital adjustment from an August sale of the majority of its YRC Logistics business.
The company's consolidated operating loss for the fourth quarter totaled $27 million, compared with a $91 million operating loss reported for the fourth quarter of 2009.
YRC has been struggling to stave off bankruptcy under a significant debt load and competitive pressure. In October, it said it had achieved $350 million in labor concessions from the International Brotherhood of Teamsters to help keep it afloat. (Reuters)
