The Good Fight; Trucking Stock YRC Worldwide still not tapping the Brakes

YRC Worldwide Inc. (NASDAQ: YRCW) has a knack for several-day stints – it’s a stock, investors are either vying for, or love to hate- and once it gets in the headlines and makes gains, it’s usually days before shares curtail. Shares of the struggling trucking company soared more than 55% in the last three trading days, given a boost by positive industry sentiment that the trucking industry may recover.

Despite the impressive trading activity this week, the stock hasn’t quite recovered from its 80% losses so far this year as it struggles to avoid bankruptcy under a heavy debt load and tough competition. Putting up a hard fight against becoming one of the nearly 2,000 trucking company’s to fail in a beat-down industry, the company has negotiated with its lenders to soften the terms of its debt, asked workers to accept pay cuts, proposed debt-to-equity swaps and sold real estate to continue operations.

The company released its first-quarter financial results last month. The company reported first-quarter consolidated operating revenue at $1.1 billion, compared with consolidated operating revenue of $987 million reported for the same period in the previous year. The company posted an operating loss of $68 million for the first quarter, down from $233 million reported for the same period in the previous year. It reported a net loss of $102 million for the first quarter, compared with net loss of $274 million reported for the same period in the previous year.
YRC ended the quarter with cash and cash equivalent of $157 million, unrestricted availability of $8 million and unused restricted revolver reserves of $71 million.

For the full year 2011, the company expects gross capital expenditures to be in the range of $100 million-$125 million.

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