YRC Worldwide Losses Widen
Shares of Overland Park, Kan.-based YRC Worldwide ran off a cliff in Wednesday trading, after the company's Q2 2013 earnings report revealed that YRC had missed analyst estimates badly.
YRC reported losing $1.72 per diluted share in Q2, as compared with analyst estimates of a $0.64-per-share loss. Revenues, however, at $1.242 billion, exceeded expectations of $1.26 billion. Year-to-date cash burn of the company, at negative $57.3 million, represented a 21% increase in the burn rate compared with H1 last year.
YRC's balance sheet currently shows the company possessing $166 million in cash and equivalents, and $7 million worth of restricted cash. Long-term debt at the company approaches $1.3 billion, not counting pension and post retirement obligations of $525 million.
Addressing the potential for a "cash crunch," YRC revealed that it is in talks with Credit Suisse regarding "a broad range of refinancing and recapitalization options."
The article YRC Worldwide Losses Widen originally appeared on Fool.com.Fool contributor Rich Smith and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.