In its continual quest to avoid being pushed into bankruptcy by its Banks, YRCW has to continually re-define EBITDA. The current version specifically excludes about $120 mm - per quarter of pension obligations owed to the IBT. So when management gets on its soapbox & talks about positive EBITDA for Q2, this is specifically & intentionally excluded from that data-point by management. This deferred amount now goes to debt which creeps up every Q as a result of this and continued borrowing under the revolver to fund its cash burn. YRCW's deal with the IBT ends at the end of this year, after which they must make the pension payments & the $$$ goes back into operating expenses. Few believe YRCW will be able to pay this expense ever again. BTW - They are also currently unable to met their current interest obligations - which have been waived by the banks until later this year
YRCW regularly moves the EBITDA goal post to meet its own needs as they see fit. Management is notorious for over-promising & under-delivering every Q, If fact it's one of the few consistencies they exhibit!
YRC Worldwide is still awash in red ink due to massive losses and mounting pension obligations. The trucking firm has tried everything to lower costs including employee layoffs, property sales and plant closures. Despite all of these actions, YRC Worldwide has not posted a profit since 2006.