Reuters: Hot Stocks: UPDATE 1-YRC Worldwide posts another loss, looks at recapitalization

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UPDATE 1-YRC Worldwide posts another loss, looks at recapitalization Aug 7th 2013, 15:28 Wed Aug 7, 2013 11:28am EDT * Second-quarter loss/share $1.72 vs est $0.57 * Revenue $1.24 bln vs est $1.26 bln * YRC Freight reports operating loss due to cost-cutting delays * Shares fall as much as 21 percent (Adds details on cost-cutting plan, background; updates shares) Aug 7 (Reuters) - Trucking company YRC Worldwide Inc said it was looking at recapitalization options and reported a larger-than-expected quarterly loss due to delays in a cost-cutting program at its freight business. Shares of YRC Worldwide fell as much as 21 percent after the company posted its ninth loss in 10 quarters. Chief Financial Officer Jamie Pierson said YRC Worldwide retained Credit Suisse along with the MAEVA Group to explore refinancing and recapitalization options. YRC Worldwide had long-term debt of $1.29 billion as of June 30, according to regulatory filings. The company's liquidity, including cash, cash equivalents and an asset-based loan facility, was $218.7 million. The company said on Wednesday high shipment volume in the second quarter hurt execution of its network optimization plan at YRC Freight, which provides less-than-truckload transport services and accounts for nearly two-thirds of YRC Worldwide's revenue. Less-than-truckload shippers pick up loads, sort them and make various deliveries. This differs from truckload, in which one driver picks up a load and stays with it through to its final destination. YRC Worldwide's optimization plan, started in May, aims to reduce the handling of shipments and transit time. YRC Freight reported an operating loss of $8.5 million for the quarter ended June. It recorded a one-time charge of $6.3 million related to delays in implementing the cost-cutting plan. Shipments per day at the freight business fell 5 percent. Net loss attributable to the company narrowed to $15.1 million, or $1.72 per share, in the second quarter from $22.6 million or $3.21 per share, a year earlier. However, the loss was far greater than the 57 cents per share that analysts on average had expected, according to Thomson Reuters I/B/E/S. Revenue slipped 0.8 percent to $1.24 billion, slightly below the $1.26 billion analysts were looking for. YRC Worldwide shares were down 20 percent at $22.88 on the Nasdaq on Wednesday morning after touching a low of $22. The stock was one of the top percentage losers on the Nasdaq. (Reporting by Mridhula Raghavan and Sagarika Jaisinghani in Bangalore; Editing by Joyjeet Das) Link this Share this Digg this Email Reprints

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