YRC Worldwide is planning a public offering of $350 million worth of common and preferred stock, according to documents the company filed with the U.S. Securities and Exchange Commission.
The sale will also include debt securities, warrants to purchase debt securities and common stock, depositary shares, purchase contracts and units.
“We will use the net proceeds from the sale of our securities offered by this prospectus for the repayment of indebtedness and/or for general corporate and working capital purposes,” according to the filing.
On June 10, YRC Worldwide was hit with a $15.7 million tax lien by the IRS issuing from four quarterly tax returns filed by YRC Logistics in 2008. The company has 10 years to refile with the IRS.
Austin Ventures purchased YRC Logistics in June 2010 for $37 million, and the logistics firm now operates as the separate company MIQ Logistics.
This March, YRC approached Arkansas Best to see if it would consider selling ABF Freight System. A month later, Arkansas Best officials told YRC that “considering a proposal was not appropriate at that time,” according to an SEC filing.
YRC reported a first-quarter operating income of $4.5 million, its first positive operating income in the first quarter in the past six years. Operating revenue of $1.16 billion represented a 2.7 percent year-over-year decline. At YRC Freight, operating revenue showed a 4.5 percent decline on 5.4 percent lower tonnage per day and a 5.3-percent decline in daily shipments. Revenue per shipment and per hundredweight rose by 3.4 percent and 3.2 percent, respectively.
Adjusted before-tax earnings ended the quarter at $60.7 million, a rise of more than $45 million over the first quarter of 2012. Analyst estimates for the second quarter peg earnings somewhere between $68 million and $82 million compared to earnings of $63 million during the second quarter of 2012.
Yearly earnings are expected to be between $257 million and $315 million, with a consensus of $289 million. In 2012, earnings finished the year at $212 million. – Jon Ross
YRC to sell $350 million in stock
