YRC, which has been struggling to stay out of bankruptcy, said daily tonnage in the third quarter was higher than in the second quarter, and revenue per shipment was higher than a year earlier.
The Overland Park, Kansas-based trucking company said it expects third-quarter adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $42 million to $46 million.
That would cumulatively bring EBITDA for the second and third quarters within a range of $82 million to $86 million, and above the $50 million required by YRC's credit agreement.
The company said it expects a third-quarter operating loss of $18 million to $22 million, compared with an operating loss of about $35 million for the second quarter. The second-quarter figure excluded an $83 million non-cash benefit from an adjustment to the fair value of the March 2010 union employee equity award.
Dahlman Rose analyst Jason Seidl said that without more specific information it was hard to tell how significant the third-quarter results might ultimately be, and he said the timing of the announcement was curious as the company prepares for a key vote by workers on $350 million of sought-after concessions.
"The Teamsters concession vote is something YRC absolutely needs. There is no Plan B beyond this vote," said Seidl.
YRC is seeking a range of concessions from the International Brotherhood of Teamsters union, and the union has targeted a vote by the end of October.
Last December, YRC narrowly averted bankruptcy by negotiating a debt-for-equity exchange that wiped out $470 million of debt and opened credit lines for restructuring. The exchange gave noteholders 94 percent of the equity in YRC.
Last month, YRC announced Chairman and Chief Executive William Zollars would retire when the company's "recovery plan" is completed. (Reuters)
