YRC Worldwide Inc (YRCW)

[MagicCap]

Here are my estimates for 2013:

Q1 2013:
Revenues: $1,212 Million (+1.5%)
Gross Profit: $794
Expenses: $782
Operating Income: $12
Interest Expense (excluding make whole premiums from conversions which are one time expenses): $35
Net Income (Loss): $(23) Million
Diluted EPS: $(1.09)



Q2 2013:
Revenues: $1,280 Million (+2.3%)
Gross Profit: $858
Expenses: $824
Operating Income: $34
Interest Expense (excluding make whole premiums from conversions which are one time expenses): $35
Net Income (Loss): $(1) Million
Diluted EPS: $(0.01)

Q3 2013:
Revenues: $1,280 Million (+3.5%)
Gross Profit: $864
Expenses: $820
Operating Income: $44
Interest Expense (excluding make whole premiums from conversions which are one time expenses): $35
Net Income (Loss): $9 Million
Diluted EPS: $0.45

Q4 2013:
Revenues: $1,216 Million (+4.0%)
Gross Profit: $810
Expenses: $772
Operating Income: $38
Interest Expense (excluding make whole premiums from conversions which are one time expenses): $32
Net Income (Loss): $6 Million
Diluted EPS: $0.27

Some Assumptions:
*Network improvements are approved and going into partial effect in Q2 then full effect in Q3/4. Improvements yield $6 million per quarter in cost savings
*Conversions reduce int expense by $3 Million in Q4 2013.
*Margins are 65.5% in Q1, 67% in Q2, 67.5% in Q3, and 66.6% in Q4
*Expenses as % of revenue are slightly higher than they were in Q4 2012.
*Assumption is all convertible notes have converted in calculation of EPS. Therefore, I'm using 21 million shares outstanding.