* Operating revenue up 12.3 pct year over year
* Share loss 51 cents, versus loss of $1.33 yr ago
* New CEO says YRC must “sharpen” focus on operations
* Says must improve service before seeking better pricing
* Reverse stock split seen before end of year
By Carey Gillam
OVERLAND PARK, Kan., Nov 4 (Reuters) - U.S. trucking company YRC Worldwide Inc’s revenue rose 12 percent, but its losses nearly doubled for the third quarter, as the company worked through a broad restructuring.
While results for the quarter were encouraging, with shipments growing and margins strengthening, the Overland Park, Kan.-based trucking company has a long road to recovery ahead, company officials said.
A team of newly appointed top executives are focused on making the company more “lean” and “nimble” after the long-troubled trucker posted a third-quarter loss of $120 million, or 51 cents a share, compared with a loss of $62.4 million, or $1.33 a share, for the same period a year ago.
Analysts were expecting a loss of 36 cents a share, according to Thomson Reuters I/B/E/S. The company’s authorized common shares now total about 10 billion, up from 80 million due to the restructuring.
“I am not at all satisfied with where we are at and how we are performing but we will get better,” said Chief Executive James Welch, who joined YRC in July. The company has also recently named a new president and new chief financial officer.
YRC has been struggling to stay out of bankruptcy for the last two years but gained new life with a series of financial restructurings, including sweeping changes made to its debt and equity structure, this summer.
The third-quarter loss includes a $79 million charge related to fair value adjustments tied to the company’s debt obligations, YRC said.
Still, third-quarter revenue rose 12 percent to $1.28 billion and the number of shipments and tons shipped grew in the third quarter.
Officials said Thursday that the company has to improve its service for customers before it can strengthen its pricing, and they forsee at least six months more of trying to regain customer confidence after a tumultuous last two years drove many customers to competitors.
This summer the company issued new convertible notes for the infusion of $100 million in new capital; increased liquidity by replacing the company’s existing asset-backed securitization facility with a new three-year, $400 million asset-based loan facility; and exchanged some of the company’s loans and other obligations for new securities, including equity.
The dilution of shareholders with the issuance of more than a billion new shares drove the stock price down to pennies a share. YRC is now planning a reverse stock split by the end of this year to boost the share price above a dollar a share, a move needed to retain its Nasdaq listing.
Officials said Friday they would ask shareholder approval to agree to a reverse split in the ratio from 1 to 50, to 1 to 300 at the annual meeting on Nov. 30, The split should take place by mid-December, company officials said.
At midday on Friday, YRC shares were down 14.4 percent at 5 cents.