YRC Worldwide posts quarterly loss of US$16 million as sales fall 4.1pc
KANSAS-based freight concern YRC Worldwide Inc posted a US$16 million third quarter net loss after a $2
KANSAS-based freight concern YRC Worldwide Inc posted a US$16 million third quarter net loss after a $2.9 million quarterly profit last year . Third quarter revenues in 2019 came to $1.25 billion, down 4.1 per cent year on year.
This was blamed on an $11.2 million 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.
'In September, we announced the completion of the refinancing of our term loan, a critical next step in our multi-year strategy. We continue to increase our efforts with two of our five key strategic initiatives now complete,' said CEO Darren Hawkins.
'We are prioritising our network optimisation initiatives to bolster our longer-term profitability for the Company,' said Mr Hawkins. 'With the focus on greater efficiencies, we completed the consolidation of the New Penn corporate offices, as well as the consolidation of 12 service centre facilities.'
Savings from lease terminations, sale of properties as well as more efficient asset utilisation also contributed to increased profitability.
'We have recently deployed a new operations field structure to ensure better customer service and increase operational efficiencies. Our team remains focused on building density in the areas we service, while enhancing the customer experience and value proposition, and ensuring greater efficiency with our equipment, our facilities and our resources.'
'I'm proud of our YRC Freight team for posting the best third quarter operating income in over 10 years. By utilising some of the operational efficiencies we now have in place from our labour agreement through the addition of box trucks, reduction of local purchase transportation as well as other cost control initiatives, we were able to expand operating margin despite sluggish volumes,' Mr Hawkins said.