LTL Carrier YRC Worldwide (NASDAQ: YRCW) announced that it had drawn $ 75 million in funds from the second tranche of $ 400 million of the $ 700 million loan from the Treasury he received under the government’s pandemic relief loan program.
On Monday, the Overland Park, Kansas-based company reported a third-quarter loss of just $ 2 million, or 4 cents per share, significantly better than consensus estimates of a loss of 25 to 28 cents per share. The result also improved significantly compared to the third quarter of 2019, a loss of $ 16 million.
“During the quarter, we transitioned to managing our business in a tighter capacity environment and setting the stage for 2021. Improving tonnage trends at the end of the third quarter allowed LTL prices to rise. firm up with less volatility expected in the future, ”said CEO Darren Hawkins.
The press release stated that Jamie Pierson had resigned as chief financial officer and his seat on the board of directors.
“Jamie was instrumental in several critical financial transactions that have helped preserve a vital part of America’s supply chain and the livelihoods of 30,000 families. Most recently, he helped facilitate the CARES Act loan process and secure the other changes to our credit facilities. We thank Jamie for his dedicated service to YRCW, ”said Hawkins.
“Mr. Pierson and the Company expect to enter into a severance agreement which will allow Mr. Pierson to receive a lump sum payment equal to his base salary for 18 months in accordance with the Company’s severance policy for senior executives as well as a additional lump sum severance pay of $ 550,000, ”says the company’s quarterly filing with the US Securities and Exchange Commission.
Dan Olivier, Vice President of Financial Planning and Analysis, will fill the interim role.
The carrier also announced that the holding company, YRC Worldwide, will revert to the Yellow brand. The name dates back to the company’s original LTL brand. Holland, New Penn, Reddaway, YRC Freight and HNRY Logistics will continue to operate under their current banners.
YRCW shares are down more than 3% in after-hours trading.
YRC will hold a conference call at 5 p.m. EST Monday to discuss third quarter results with analysts. Stay tuned to FreightWaves for more information on the YRC Profit Report.