In an amended 13D filing with the U.S. Securities and Exchange Commission, activist investor Barna Capital Group stated that it was moving forward with previously announced plans to make changes to the YRC Worldwide (NASDAQ: YRCW) board.
Barna Capital is seeking to “replace three members of the board who have not provided the needed guidance for the company to achieve decent operating results.” The firm wants to replace current board seats with “individuals who possess extensive experience in running a successful transportation company.”
In the filing, Barna Capital stated shares of YRCW have fallen more than 90% during the tenure of the unnamed board members that the group is seeking to replace. Additionally, the firm noted that the board was seeking to be paid in cash versus equity-based compensation and that total compensation for board seats has increased more than 200% since those individuals joined the board.
Further, the firm stated that it “would like to see some changes in middle and lower management who will drive better operational results.”
Lastly, Barna Capital reiterated its confidence in the YRC’s executive management team. “We have complete trust in the executive management team and believe that they are on the right track to turn the company towards a brighter future.”
The filing showed that Barna Capital increased its stake in the less-than-truckload carrier to 5.4%, up from 5.2% at the time of the original filing on March 17.
The date of Barna Capital’s original filing was shortly after YRC provided a lackluster intra-quarter update on March 13. In that press release, the carrier announced that tonnage per day had declined 0.7% year-over-year during January and February and that revenue per hundredweight, or yield, was 4.2% lower. The firm noted that YRC’s results, which included both “softer pricing while volumes fell at the same time,” were not as strong as results reported by other carriers.
The original filing also called out management and the board for failing to “motivate employees, optimize operations and guide the company to strong financial results.”
The proposed board changes do not impact the two seats held by the Teamsters Workers Union.
In an 8-k filing on April 8, YRC disclosed that it had amended its credit agreement. A key provision in the amendment is the waiver of a financial covenant for the remainder of 2020, requiring last 12 months’ consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) of $200 million.
YRC’s fourth quarter financial release showed the carrier generated $210.6 million in 2019 adjusted EBITDA, ending the year with $902.8 million in debt. The carrier closed the books on 2019 with $80.4 million in liquidity compared to $203.8 million at the end of 2018.
YRCW’s shares are up more than 10% in midday trading on the news.
I walk alone
Scents we’re committing about Yrc management let me tell ya what put dumb ass terminal manager did this pass week engeneral, due to the caronavirus viruse and freight is down you all know terminals had to lay off our TM went ahead and gave layoff papers this pass Wednesday night which was a mistake she must have thought the men getting layoff would work the rest of the week. Guess what we were short of help all week with only a few came in one night (like fewer than10) only thing you can do is laugh at the dumbass. Hopefully you all get the picture what we have to work with. 💩
Rafael Toledo
I believe the upper management a YRC it’s still operating the old-fashioned way and still stuck in the 80s mentality. There is a lot of freight out there to be service and it’s very simple they need to think outside the box. I am commercial developer and investor and I see lots of potential in this company with the most highly experienced drivers that they have.
David Caton
I’ve worked at New Penn for 23 years. We have had 6 TMs in 5 years, each one more incompetent than the last. I guess YRC just wants a body in the position to waste $ in order to say they have a manager. If investors really want to change course, take alot of time and visit alot of terminals to talk to alot of drivers to hear what the real problems are. I bet overwhelming majority of workforce would come to a meeting on the weekend to talk. The age old reason for golden parachutes have to come to an end. Peter’s Principal is well planted in this company, especially in Rochester NY. The firm wants to end tenure and still have to pay 18 months pay, are u #%*[<_ kidding me!!
Freight master
Couldn’t agree more. Ask a operations manager one time “why in the world did you hire the man as a supervisor” for he didn’t have a clue about trucking even had to help train this guy, his response was ” well they said to fill the position he was the only one to fill out an application so they said hire him” he also said ” I know but I was doing what I was told to do” like what was said a yes man. You do wish that investors or someone would come and talk to the employees or would at least maybe read some of these comments what can you do. It was told to me once by a great freight man is ” a employee can only work as smart as the management” you make dumb decisions you get dumb results.
Mickie A. Brown
The comment is in reference to safety issues at YRC Freight, specifically related to the 10 hour sleep break.
To get 8 hours of sleep, then a call to report to the terminal to pick up your bills and be at terminal in 2 hours and calling that your 10 hour break is not sufficient.
At your home terminal you can get the full 10 + 1. When not at your home terminal your allowed 8 hours. By the time you get to the dispatch (out side your home terminal), sign the inbound sheet, turn in your bills, wait for the hotel shuttle to pick you up, then check in the hotel, then get to your room, then eat, then shower, and then go to bed, your fortunate to get 5 hours of sleep. Multiple this time 18 tours, now you have to fight to hold your eyes open. Falling asleep at the wheel, drifting in the other lane, etc…. It becomes a safety issue. Does it have to come to loose of life and a million dollar law suite to bring change or just good management.
Vincent Lemus
I’m an employee of YRC freight I’ve been working with this company for 22 years almost 23 I have seen people from management coming in and promising changes in the company and the only changes that I have seen is not beneficial nor for the company not for the employees and in which it refers to the employees they don’t treat us with respect us people moving the company forward we get a slap in the face but the company taking our pay and benefits around 2008 we took conceptions they cut less vacation break times and the pension was taken away from us they promise to us they will reinstate all the things they took away from us in 18 months it’s been till now and we haven’t got what we deserve back this company is now compare with with the companies that at one time were the worst ones paying s***** wages…
Richard Kokeny
By the way, as far as I’m concerned his situation should be re-examined, as it doesn’t look like he should have been sent out the door.
Freight master
He was a good supervisor I’ll have to admit, but it’s like he said good old boys club. I’ve been ask to do things just for as the numbers to look good, they want you to be a yes man. Example, gave a person a promotion pass 2 weeks to shift operations manager been with the company for about 8 months, has no experience in trucking, we see this all the time in Charlotte if your a threat to management you don’t get promotion usually your let go, it’s a shame
Richard Kokeny
In addition to my previous comment I must say that we have some of the best drivers, dockmen and mechanics in the industry and some of their talents are wasted. I’m not saying anyone who complains is worthless because some do complain and still use their abilities to the utmost. However some of the ones who do cry and don’t work would be hard pressed to work elsewhere. If asked they are staying for thr benefits because our benefits are among the best in the industry.
Gary Cook
I worked at the Charlotte terminal in management for 15 years only to be let go on June 28th 2019 due to a supposed reduction in force.The management here encourages cheating to make irrelevant internal numbers look good in there favor .Unfortunately the good old boy club does infact exist , if you fudge the numbers your in . I personally called one of them out for changing numbers before I left only to find out he had been promoted to terminal manager at another location recently . Many people running the terminal have been put in there key positions by a terminal manager that does not know the slightest about what her employees do on a daily basis because she has never done the job , merely promoted because she is a she . Long story short , the key players will lie,cheat, or steal to make themselves look good just to receive the next undeserved promotion . Unfortunately the best union workforce in the industry is squandered, and no regard to the importance of serving the customer merely serving themselves
Richard Kokeny
I am a linehaul driver in tonawanda , Ny. I would like to know the names of the board members that this capital company wants removed as I get a packet which entitles me to a vote. I maintain a positive attitude and I try to do my best every day however morale is quite low and I wish all of the complainers would stop complaining and leave. Perhaps they would know what it is like working for another company without the benefits we have. Then perhaps someone else would be hired and appreciate the job with the benefits we have.
Freight master
I’ve work in the LTL FREIGHT business for 37years I can say if a company or terminal is being run right or not. If we operate system wide the way we operate in Charlotte than we are in big trouble, you only have to question corporate management integrity. I do more than what my job calls for to blow my own horn move an average 100 to 140 shipments a day not counting driving city and switching the yard because they want to lay off for no reason, maybe you get your way and do just enough to make it look like your pulling your load
Freight master
How true you hit the nail on the head like you said because she is a she don’t mind women in trucking or in management positions as long as they know what they’re doing, like you said she doesn’t have a clue, you did get the short end of the stick alot of us think you was set up