Questions Remain for YRC Worldwide

Deutsche Bank published its research report on YRC Worldwide Inc.

following adjusted 3Q10 EBITDA results. YRCW reported 3Q2010 adjusted EBITDA of $44.3M which is a $4.4M increase from 2Q2010. Although this is an improvement, Deutsche Bank is hesitant because of equity issues and has reiterated their Hold rating. Deutsche Bank writes, "YRCW reported $5 million in operating cash flow; however, $50 million in other changes in working capital (related to accrued interest) drove the positive results. With Q3 interest expense of roughly $44 million, operating cash flow would have been negative if cash interest had not been deferred." YRCW is also in discussions with its lenders regarding timing of cash interest payments and its capital structure. YRCW is trading at $3.66.