Friday, August 03, 2012

YRC Worldwide's Q2 2012 Loss Is Still A Loss

YRC Worldwide managed to survive another quarter of losing money.  Its most recent financial results show that the LTL trucker continues to post negative net income despite its first operating profit since its debt restructuring.  There's a lesson here for CFOs.  Losses per share can be dressed up as an improvement through the issuance of massively diluted new shares.

Meanwhile, the more ominous news for the company is the 0.5% decline in top-line revenue.  This could imply that YRCW's much-ballyhooed market position may be eroding.  The increase in revenue per hundredweight is odd, something normally associated with a firm that can maintain its pricing power.  I'm not sure which customers still insist on paying a premium for a fat, smelly, Teamster driver to give them an attitude.  Those customers are welcome to contact me to explain their reasoning.

Full disclosure:  No position in YRCW, ever.