YRC Worldwide CEO Reiterates Positive Ebitda In 2Q
The head of YRC Worldwide Inc. (YRCW) said Tuesday that customers are steadily returning to the struggling trucking company, although he made it clear that the trend must continue.
"Our future really now depends on how many customers come back to us and how quickly they come back," Chief Executive Bill Zollars said.
Speaking during a J.P. Morgan conference in New York, Zollars said early signs are positive. He noted that YRC's freight volume was up 6.5% during the first week of March from a comparable period in February, only about 2% to 4% of which he said is attributable to seasonality.
YRC shares were trading recently at 51 cents, up 2 cents, or 4.1%.
YRC, the largest independent less-than-truckload carrier in the U.S., teetered on the edge of bankruptcy in late December before completing an essential debt-for-equity swap after numerous delays.
"We got it done, but it was ugly" and scared off some customers, Zollars said Tuesday.
He said the company's prospects are on the upswing in the wake of its extensive restructuring and downsizing, however, and he reiterated that he expects it to report a profit before interest, taxation, depreciation and amortization beginning in the second quarter.
In addition, Zollars said YRC isn't banking on a broad economic rebound to buoy its results. "We have not seen a solid set of signs that the economy is recovering as of yet," he said, although he noted there have been "some indications" of a nascent uptick that could provide a tailwind for YRC