YRC still sees positive EBITDA, approves share plan

OVERLAND PARK, Kan., June 29 (Reuters) - Struggling U.S. trucker YRC Worldwide reiterated on Tuesday that its outlook was improving, despite shutdown costs associated with the sale of its logistics business.

YRC said due to the $37 million sale of YRC Logistics to Austin Ventures, a strategic private equity investor, YRC estimates it will incur about $9 million to $11 million of one-time shutdown costs, which consist primarily of lease terminations, severance and asset writedowns, including about $5 million to $7 million in cash charges.

These charges are expected to be recognized in the second quarter of 2010 and the non-cash portion of the charges will be added back to net income to determine consolidated EBITDA for purposes of the company's credit agreement, YRC said.

The company still believes it will generate positive adjusted EBITDA (earnings before interest, taxes, depreciation and amortization expenses) in the second quarter, inclusive of the shutdown costs, YRC said in a regulatory filing with the Securities and Exchange Commission.

The company broke even in April after losing $5 million in March and $21 million in February on an EBITDA basis.

At a shareholders' meeting on Tuesday, the company also said stockholders approved an amendment to the company's 2004 long-term incentive and equity award plan to increase the number of shares of company common stock available for awards under the Plan by 67,430,000 shares.

Last December, YRC narrowly averted bankruptcy by negotiating a debt-for-equity exchange that wiped out $470 million in debt and opened up credit lines for restructuring moves. The exchange gave noteholders 94 percent of the equity in YRC.

(Reporting by Carey Gillam; editing by Andre Grenon)

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