YRC Worldwide Preliminary Fourth-Quarter Earnings Fall Short of Expectations
YRC Worldwide Inc. released preliminary figures on its operating income and earnings before interest, taxes, depreciation and amortization for the fourth quarter of 2016 and the entire year, both of which fall short of analysts' estimates.
The less-than-truckload carrier projected to earn between $10 million and $20 million in operating income in the fourth quarter, or the amount left over when operating expenses are deducted from revenues. For the year, YRC Worldwide forecast the figure to be between $119 million and $129 million. The consensus from analysts, according to Bloomberg News, was $20.7 million for the quarter and $130 million for the full year.
YRC ranks No. 5 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers.
When depreciation and amortization were added back into the totals, a term called EBITDA, YRC Worldwide projected $50 million to $60 million in the quarter and $279 million to $289 million for the year, lower than the forecast of $63 million and $290.6 million from industry analysts.
The carrier didn’t release information on net income.
YRC is attempting to ease the restrictions on the ratio between gross debt and adjusted EBITDA, which requires a vote from the owners of the debt.
YRC anticipated that it’ll report an adjusted EBITDA of $293 million to $303 million for the full year, although the measurement isn’t a generally accepted accounting standard.
