YRC Worldwide Inc. (NASDAQ:YRCW) Q2 2020 Earnings Conference Call - Final Transcript
Aug 03, 2020 • 05:00 pm ET
Good afternoon, and welcome to YRC Worldwide's Second Quarter 2020 Earnings Call.
I would now like to turn the conference over to Eric Birge, Vice President of Investor Relations. Please go ahead.
Thank you, operator, and good afternoon, everyone. Welcome to YRC Worldwide's second quarter 2020 earnings conference call.
Joining us on the call today are Darren Hawkins, Chief Executive Officer, Jamie Pierson, Chief Financial Officer, and TJ O'Connor, Chief Operating Officer, who will be available for our Q&A.
During the call, we will make some forward-looking statements within the meaning of federal securities laws. These forward-looking statements and all other statements that might be made on this call, which are not historical facts, are subject to uncertainty and number of risks, and therefore, actual results may differ materially. The format of this call does not allow us to fully discuss all these risk factors. For a full discussion of the risk factors that could cause the results to differ, please refer to this afternoon's earnings release and our most recent SEC filings, including our Forms 10-K and 10-Q. These items are available on our website at yrcw.com.
Additionally, please see today's release for a reconciliation of net income to adjusted EBITDA. In conjunction with today's earnings release, we issued a presentation which may be referenced during the call. This presentation was filed in an 8-K along with our earnings release and is available on our website.
I'll now turn the call over to Darren.
Darren D. Hawkins
Good afternoon, everyone, and thanks for joining our second quarter 2020 earnings conference call.
I want to thank our 30,000 American families that make up the population of YRCW companies for approaching their essential work with safety and diligence to take great care of our customers as every business we interact with and serve has had unprecedented challenges during this roller coaster pandemic. On behalf of our YRCW families and over 200,000 customers, we would like to start by thanking Congress and the administration for passing the CARES Act, which has provided liquidity to pandemic-stricken companies like ours and tens of thousands of businesses that comprise our customer base. The CARES Act empowered the administration to provide critical support to companies that are the last line of America's supply chain.
After the quarter ended, we announced that we had closed on a $700 million loan with the US Department of Treasury under the CARES Act. The first piece was the $300 million in tranche A, which the majority of was directed at deferred health, welfare and pension payments and added to our July liquidity, which we will report at the end of Q3. The second piece of this loan was the $400 million in tranche B. Tranche B is specifically targeted at reinvesting into rolling stock and gives us the opportunity to refresh our fleet with the latest and greatest that the OEMs have to offer today, better fuel efficiency, lower maintenance and the latest in safety technology, and let's not forget, better experience