Never doubt YRCW's capacity to lose money.
The usual reasons are purchased transportation and unexpected property and casualty losses.
I think YRCW will be fully recovered from the debt taken on to purchase USF in 2005 in another 7 years in 2025. James Welch leadership for the past 6 years has enabled YRCW to survive, but it'll be at least another 5 years before YRCW will thrive.
AMZN is not going to buy YRCW. No firm is going to buy YRCW. Any buyer will become liable for contributions to teamster pensions that YRCW has not paid. That's a footnote to the FS -- more than a billion dollars. Also, the consequence of conversion of debt into equity and the reverse stock splits is that more than $500 million of tax loss carry forwards are NOT available to YRCW or anyone who buys YRCW. If YRCW has a full dissolution so that none of the pension liabilities or any other liabilities attach to YRCW assets, other trucking firms would buy some terminals. That's it.
Shorting into earnings will probably be profitable once again. I wish that would not be the case. The main reason I think they'll not meet expectations this time is that YRCW is in the process of opening up new distribution centers and terminals so there could be lots of unexpected expenses. It's nice to have unexpected expenses from expanding business, not contracting business. The last time YRCW had that happen was more than a decade ago. Also, all the roads to and from the terminal in Puerto Rico DID NOT EXIST for more than a month. Good luck everyone.
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