Trucking company YRC Worldwide said its business continues to improve, marking a turnaround from the end of the last year when the company narrowly averted bankruptcy.

YRC said it expects second-quarter adjusted EBITDA (earnings before interest, taxes, depreciation and amortization expenses) of $35 million to $45 million, excluding its YRC Logistics segment, which will be reported as discontinued operations due to a negotiated divestiture.

Including losses from discontinued operations, the company expects adjusted EBITDA of $24 million to $36 million.

The company said that figure exceeds the $5 million covenant level required by a credit agreement key to its ongoing operations. The positive EBITDA compares with a loss of $53 million in the first quarter of 2010.

The company also forecast positive second-quarter EBITDA in June.

YRC said that as of June 30, its estimated cash and cash equivalents totaled $142 million, unused restricted revolver reserves were $129 million, and unrestricted availability was $8 million, for a total of $279 million, compared with $241 million at the end of the first quarter.

The improved financial position comes as volume ticks upward for the trucking company.

Last December, YRC narrowly averted bankruptcy by negotiating a debt-for-equity exchange that wiped out $470 million in debt and opened up credit lines for restructuring moves. The exchange gave noteholders 94 percent of the equity in YRC. (Reuters)