OVERLAND PARK, Kansas (Reuters) - U.S. trucker YRC (YRCW.O) Worldwide said on Monday that business volumes were increasing in June after better-than-expected gains in shipping volume in May, but the company was facing liquidity pressure amid the revived growth in its business.
YRC, which narrowly averted a bankruptcy filing in December and has been undertaking a broad restructuring of operations and its finances, said it expects to achieve positive adjusted EBITDA (earnings before interest, taxes, depreciation and amortization expenses) on a consolidated basis and positive operating income for its regional transportation segment for the second quarter of 2010.
But the Overland Park-based company needs to make a series of moves to address near-term liquidity issues, company officials said in a statement.
YRC said it had amended an asset-backed securitization facility to be able to borrow additional amounts under the facility, which provides available funds of about $22 million.
As well, YRC said it was seeking to address its short-term liquidity needs by possibly implementing further cost cuts, pursuing the sale of “non-strategic” assets or business lines, continuing discussions with the company’s lending group about its credit agreement, and more tightly managing receipts and disbursements.
YRC said it was also considering the sale of additional equity or pursuing other capital market transactions.
YRC, which is the largest U.S. trucking company handling smaller, or less-than-truckload shipments, has laid off thousands of workers and cut deals with labor and lenders over the last year and a half trying to survive a downturn in the economy and a heavy debt load tied to a string of acquisitions.
Reporting by Carey Gillam, editing by Dave Zimmerman