Earnings Results under Review: YRC Worldwide Inc. (NASDAQ: YRCW)

27

OVERLAND PARK, Kan., January 18, 2020 – Shares of YRC Worldwide Inc. (NASDAQ: YRCW) lost -0.78% to $3.16. The stock grabbed the investor’s attention and traded 81.741K shares as compared to its average daily volume of 1.18M shares. The stock’s institutional ownership stands at 69.90%.

YRC Worldwide Inc. (YRCW) reported consolidated operating revenue for third quarter 2019 of $1.257B and consolidated operating income of $23.80M, which included a $1.00M net loss on property disposals. As a comparison, for the third quarter 2018, the Company’s results included operating revenue of $1.304B and consolidated operating income of $41.20M, which included a $1.90M net loss on property disposals.

Net loss for third quarter 2019 was $16.00M, or $0.48 per share, compared to net income of $2.90M, or $0.09 per share, in third quarter 2018. This was impacted by an $11.20M loss on extinguishment of debt associated with a refinancing of the term loan agreement, which resulted in a negative impact of $0.34 cents per share for the third quarter 2019.

Financial Highlights

  • In third quarter 2019, net loss was $16.00M compared to net income of $2.90M in third quarter 2018.
  • On a non-GAAP basis, the Company generated consolidated Adjusted EBITDA of $65.90M in third quarter 2019, a decrease of $18.30M compared to $84.20M for the same period in 2018 (as detailed in the reconciliation below). Last twelve month (LTM) consolidated Adjusted EBITDA was $240.80M compared to $288.80M a year ago.
  • Investment in the business continued with $40.90M in capital expenditures and new operating leases for revenue equipment with a capital value equivalent of $35.30M, for a total of $76.20M, which is equal to 6.1% of operating revenue for third quarter 2019. The majority of the investment was in tractors, trailers and technology.

YRCW has a market value of $116.69M while its EPS was booked as $-2.16 in the last 12 months. The stock has 36.58M shares outstanding. In the profitability analysis, the company has gross profit margin of 11.50% while net profit margin was -1.40%. Beta value of the company was 4.44; beta is used to measure riskiness of the security. Analyst recommendation for this stock stands at 2.60.