Less-than-truckload (LTL) carrier YRC Worldwide (NASDAQ: YRCW) announced that it has drawn $75 million in funds from the $400 million second tranche of the $700 million Treasury loan it received as part of the government’s pandemic relief lending 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 was also much improved from the 2019 third-quarter, a $16 million loss.
“During the quarter we transitioned to managing our business in a tighter capacity environment and setting the stage for 2021. Improving tonnage trends late in Q3 has allowed LTL pricing to firm up with less volatility expected moving forward,” stated CEO Darren Hawkins.
The press release stated Jamie Pierson resigned his role as CFO and his board seat.
“Jamie has been instrumental in several financial transactions at critical times that have helped preserve an essential part of the American supply chain and the livelihoods of 30,000 families. Most recently he helped facilitate the CARES Act loan process and secure the other amendments to our credit facilities. We thank Jamie for his dedicated service to YRCW,” stated Hawkins.
“Mr. Pierson and the Company anticipate entering into a severance agreement that will entitle 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 executive officers as well as an additional lump sum severance payment of $550,000,” stated the company’s quarterly filing with the U.S. Securities and Exchange Commission.
Dan Olivier, VP of financial planning and analysis, will fill the role on an interim basis.
The carrier also announced that the holding company, YRC Worldwide, will be going back 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.
Shares of YRCW are down more than 3% in after-hours trading.
YRC will host a conference call at 5 p.m. EST Monday to discuss third-quarter results with analysts. Stay tuned to FreightWaves for more coverage on YRC’s earnings report.