OVERLAND PARK, Kan. Nov. 5, 2010 /PRNewswire-FirstCall/ --
- YRC National Tonnage up 1.2% and YRC Regional up 2.1% from Second Quarter 2010
- Achieved Significant Progress on Comprehensive Recovery Plan
YRC Worldwide Inc. (Nasdaq: YRCW) today reported its third quarter 2010 results. For the third quarter ending September 30, 2010, the company announced a net loss of $62 million and a $1.33 loss per share on average outstanding diluted shares of 46.5 million. As a comparison, the company reported a net loss of $159 million and a $66.66 loss per share in the third quarter of 2009 with average outstanding diluted shares of 2.4 million. The numbers of shares and the per share amounts for all periods presented within this release reflect the 1:25 reverse stock split which was effective on October 1, 2010.
"We are pleased with the continued support of our customers and our employees who remain focused on delivering results," stated Bill Zollars, Chairman, President and CEO of YRC Worldwide. "We have achieved significant progress on our comprehensive recovery plan with the ratification of our new labor contract and the renewal of our ABS facility."
For the third quarter of 2010, the company reported positive cash flow from operating activities of $5 million which included positive adjusted EBITDA which was in excess of working capital requirements, cash interest and restructuring professional fees. Adjusted EBITDA is a non-GAAP measure that reflects the company's earnings before interest, taxes, depreciation, and amortization expense, and further adjusted for letter of credit fees, equity-based compensation expense, net gains or losses on property disposals and certain other items, including restructuring professional fees and results of permitted dispositions and discontinued operations as defined in the company's credit agreement.
During the third quarter of 2010, the company issued $20.2 million in 6% notes and used the proceeds to retire approximately $20 million of 5% notes. The company repaid $25 million in borrowings under its asset-backed securitization ('ABS') facility, sold excess property of $36 million and entered into $3 million of new sale and financing leasebacks during the quarter. In addition, the company closed on the previously announced $38.7 million sale of the majority of its YRC Logistics business and used the net proceeds to pay down borrowings under the credit agreement. During 2010, the company has reduced its total debt by $73 million.
At September 30, 2010, the company reported cash and cash equivalents of $115 million, unrestricted revolver availability of $46 million and unused restricted revolver reserves of $123 million, subject to the terms of the company's credit agreement, for a total of $284 million.
"We continue to effectively manage our working capital, reduce debt and improve our cash flow, as demonstrated by the significant sequential improvement in our cash flow from operating activities from second quarter to third quarter," stated Sheila Taylor, Executive Vice President and CFO of YRC Worldwide.
As previously announced, during October 2010, the company renewed its ABS facility at $325 million through October 19, 2011.
Key Segment Information
Third quarter 2010 compared to the third quarter of 2009:
- YRC National Transportation: tons per day down 13.0% and shipments per day down 12.2%; revenue per hundredweight up 2.8% and revenue per shipment up 1.9%.
- YRC Regional Transportation: tons per day up 8.9% and shipments per day up 2.5%; revenue per hundredweight down 2.5% and revenue per shipment up 3.7%.
Third quarter 2010 compared to the second quarter of 2010:
- YRC National Transportation: tons per day up 1.2% and shipments per day up 1.6%; revenue per hundredweight up 0.3% and revenue per shipment down 0.1%.
- YRC Regional Transportation: tons per day up 2.1% and shipments per day up 1.8%; revenue per hundredweight up 0.1% and revenue per shipment up 0.5%.
Outlook
"With our continued operating momentum we expect to achieve positive adjusted EBITDA and be well within our credit agreement financial covenants in the fourth quarter of 2010," stated Taylor. "We are in discussions with appropriate stakeholders to complete the next steps of our comprehensive recovery plan and feel good about our progress."
In addition, the company has the following expectations for full year 2010:
- Gross capital expenditures in the range of $20 million to $30 million
- Excess property sales in the range of $70 million to $80 million
- Sale and financing leasebacks of approximately $50 million
- Effective income tax rate for continuing operations of approximately 3%
Review of Financial Results
YRC Worldwide Inc. will host a conference call for the investment analyst community today, Friday November 5, 2010, beginning at 9:30am ET, 8:30am CT. The conference call will be open to listeners via the YRC Worldwide Internet site yrcw.com. An audio playback will be available after the call also via the YRC Worldwide web site.
Certain Non-GAAP Financial Measures
Adjusted EBITDA is a non-GAAP measure that reflects the company's earnings before interest, taxes, depreciation, and amortization expense, and further adjusted for letter of credit fees, equity-based compensation expense, net gains or losses on property disposals and certain other items, including restructuring professional fees and results of permitted dispositions and discontinued operations as defined in the company's credit agreement. Adjusted EBITDA is used for internal management purposes as a financial measure that reflects the company's core operating performance. In addition, management uses adjusted EBITDA to measure compliance with financial covenants in the company's credit agreement. However, this financial measure should not be construed as a better measurement than operating income, operating cash flow or earnings per share, as defined by generally accepted accounting principles.
Adjusted EBITDA has the following limitations:
- Adjusted EBITDA does not reflect the interest expense or the cash requirements necessary to service interest or principal payments on our outstanding debt;
- Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and adjusted EBITDA does not reflect any cash requirements for such replacements;
- Equity based compensation is an element of our long-term incentive compensation program, although adjusted EBITDA excludes it as an expense when presenting our ongoing operating performance for a particular period; and
- Other companies in our industry may calculate adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure.
Because of these limitations, adjusted EBITDA should not be considered a substitute for performance measures calculated in accordance with GAAP.
* * * * *
Forward-Looking Statements:
This news release and statements made on the conference call for shareholders and the investment community contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words "expect," "continue," and similar expressions are intended to identify forward-looking statements. It is important to note that the company's actual future results could differ materially from those projected in such forward-looking statements because of a number of factors, including (among others) our ability to generate sufficient cash flows and liquidity to fund operations, which raises substantial doubt about our ability to continue as a going concern, inflation, inclement weather, price and availability of fuel, sudden changes in the cost of fuel or the index upon which the company bases its fuel surcharge, competitor pricing activity, expense volatility, including (without limitation) expense volatility due to changes in rail service or pricing for rail service, ability to capture cost reductions, changes in equity and debt markets, a downturn in general or regional economic activity, effects of a terrorist attack, labor relations, including (without limitation) the impact of work rules, work stoppages, strikes or other disruptions, any obligations to multi-employer health, welfare and pension plans, wage requirements and employee satisfaction, and the risk factors that are from time to time included in the company's reports filed with the SEC.
The company's expectations regarding future asset dispositions and sale and financing leasebacks of real estate are only its expectations regarding these matters. Actual dispositions and sale and financing leasebacks will be determined by the availability of capital and willing buyers and counterparties in the market and the outcome of discussions to enter into and close any such transactions on negotiated terms and conditions, including (without limitation) usual and ordinary closing conditions such as favorable title reports or opinions and favorable environmental assessments of specific properties.
The company's expectations regarding liquidity, working capital and cash flow are only its expectations regarding these matters. Actual liquidity, working capital and cash flow will depend upon (among other things) the company's operating results, the timing of its receipts and disbursements, the company's access to credit facilities or credit markets, the company's ability to continue to defer interest and fees under the company's credit agreement and ABS facility and interest and principal under the company's contribution deferral agreement, the continuation of the wage, benefit and work rule concessions under the company's modified labor agreement and temporary cessation of pension contributions, and the factors identified in the preceding paragraphs.
The company's expectations regarding its capital expenditures are only its expectations regarding this matter. Actual expenditures could differ materially based on a number of factors, including (among others) the factors identified in the preceding paragraphs.
The company's expectations regarding its compliance with its credit agreement covenants are only its expectations regarding these matters. Whether the company satisfies the covenants under its credit agreement is subject to a number of factors, including (among others) the factors identified in the preceding paragraphs.
The company's expectations regarding its effective tax rate are only its expectations regarding this rate. The actual rate could differ materially based on a number of factors, including (among others) variances in pre-tax earnings on both a consolidated and business unit basis, variance in pre-tax earnings by jurisdiction, impacts on our business from the factors described above, variances in estimates on non-deductible expenses, tax authority audit adjustments, change in tax rates and availability of tax credits.
The company's expectations regarding its ability to complete its comprehensive recovery plan are only its expectations regarding these matters. Whether the company is able to complete its comprehensive recovery plan is dependent upon a number of factors including (among others) the company reaching agreement with its stakeholders and interested investors and closing transactions on negotiated terms and conditions, including (without limitation) any closing conditions that the company's stakeholders and investors may require.
* * * * *
About YRC Worldwide
YRC Worldwide Inc., a Fortune 500 company headquartered in Overland Park, Kan., is a leading provider of transportation and global logistics services. It is the holding company for a portfolio of successful brands including YRC, YRC Reimer, YRC Glen Moore, Reddaway, Holland and New Penn, and provides China-based services through its Jiayu and JHJ joint ventures. YRC Worldwide has the largest, most comprehensive network in North America with local, regional, national and international capabilities. Through its team of experienced service professionals, YRC Worldwide offers industry-leading expertise in heavyweight shipments and flexible supply chain solutions, ensuring customers can ship industrial, commercial and retail goods with confidence. Please visit www.yrcw.com for more information.
Investor Contact: |
Paul Liljegren |
|
913-696-6108 |
||
Media Contact: |
Suzanne Dawson |
|
Linden, Alschuler & Kaplan |
||
212-329-1420 |
||
Web site: www.yrcw.com
Follow YRC Worldwide on Twitter: http://twitter.com/yrcworldwide
SUPPLEMENTAL FINANCIAL INFORMATION |
|||||||||
YRC Worldwide Inc. and Subsidiaries |
|||||||||
(Amounts in thousands) |
|||||||||
(Unaudited) |
|||||||||
For the Three and Nine Months Ended September 30 |
Three Months |
Nine Months |
|||||||
2010 |
2009 |
2010 |
2009 |
||||||
Operating revenue |
$ 1,136,836 |
$ 1,203,977 |
$ 3,243,081 |
$ 3,820,916 |
|||||
Operating Ratio, as adjusted |
101.7% |
110.5% |
105.5% |
120.4% |
|||||
Reconciliation of operating loss to adjusted EBITDA: |
|||||||||
Operating loss |
$ (18,836) |
$ (126,648) |
$ (203,726) |
$ (799,556) |
|||||
Union equity awards |
- |
- |
24,995 |
20,639 |
|||||
Operating loss, as adjusted |
(18,836) |
(126,648) |
(178,731) |
(778,917) |
|||||
(Gains) losses on property disposals, net |
(3,429) |
(11,138) |
3,183 |
(10,579) |
|||||
Impairment charges |
- |
- |
5,281 |
- |
|||||
Depreciation and amortization |
49,785 |
58,346 |
150,491 |
181,173 |
|||||
Equity based compensation expense |
2,211 |
2,032 |
5,545 |
8,147 |
|||||
Letter of credit expense |
8,321 |
8,838 |
24,943 |
23,301 |
|||||
Restructuring professional fees |
6,594 |
n/a |
15,936 |
n/a |
|||||
Reimer Finance Co. dissolution (foreign |
n/a |
n/a |
5,540 |
n/a |
|||||
Other nonoperating, net |
(312) |
(2,018) |
1,029 |
(4,495) |
|||||
Adjusted EBITDA |
$ 44,334 |
$ (70,588) |
$ 33,217 |
$ (581,370) |
|||||
Operating Ratio, as adjusted is calculated as 100 minus the result of dividing operating income, as adjusted by operating revenue or plus the result of dividing operating loss, as adjusted by operating revenue, and expressed as a percentage. |
|||||||||
Adjusted EBITDA by segment: |
|||||||||
YRC National |
$ 9,196 |
$ (95,394) |
$ (44,945) |
$ (541,359) |
|||||
YRC Regional |
25,613 |
18,288 |
55,961 |
(62,255) |
|||||
YRC Truckload |
(39) |
957 |
(328) |
1,133 |
|||||
Corporate and other |
9,564 |
5,561 |
22,529 |
21,111 |
|||||
Adjusted EBITDA |
$ 44,334 |
$ (70,588) |
$ 33,217 |
$ (581,370) |
|||||
Three Months |
Three Months |
Three Months |
Nine Months |
||||||
ended |
ended |
ended |
ended |
||||||
March 31 |
June 30 |
September 30 |
September 30 |
||||||
2010 |
2010 |
2010 |
2010 |
||||||
Reconciliation of Adjusted EBITDA to net cash from (used in) |
|||||||||
Adjusted EBITDA |
$ (51,034) |
$ 39,917 |
$ 44,334 |
$ 33,217 |
|||||
Restructuring professional fees |
n/a |
(9,342) |
(6,594) |
(15,936) |
|||||
Discontinued operations and permitted |
(2,135) |
(7,422) |
1,347 |
(8,210) |
|||||
Cash interest |
(10,876) |
(10,062) |
(11,009) |
(31,947) |
|||||
Working capital cash flows, net |
1,063 |
(47,869) |
(22,678) |
(69,484) |
|||||
Net cash (used in) provided by operating activities before income taxes |
(62,982) |
(34,778) |
5,400 |
(92,360) |
|||||
Cash income tax (payments) refunds, net |
81,272 |
2,016 |
(253) |
83,035 |
|||||
Net cash (used in) provided by operating activities |
$ 18,290 |
$ (32,762) |
$ 5,147 |
$ (9,325) |
|||||
SUPPLEMENTAL FINANCIAL INFORMATION |
|||||||||
YRC Worldwide Inc. and Subsidiaries |
|||||||||
(Amounts in thousands) |
|||||||||
(Unaudited) |
|||||||||
For the Three and Nine Months Ended September 30 |
Three Months |
Nine Months |
|||||||
2010 |
2009 |
2010 |
2009 |
||||||
YRC National segment |
|||||||||
Operating Revenue |
$ 755,017 |
$ 849,304 |
$ 2,159,719 |
$ 2,745,652 |
|||||
Operating Ratio, as adjusted |
102.9% |
114.4% |
107.2% |
123.5% |
|||||
Reconciliation of operating loss to adjusted EBITDA: |
|||||||||
Operating loss |
$ (21,553) |
$ (122,042) |
$ (173,558) |
$ (661,290) |
|||||
Union equity awards |
- |
- |
18,795 |
16,071 |
|||||
Operating loss, as adjusted |
(21,553) |
(122,042) |
(154,763) |
(645,219) |
|||||
(Gains) losses on property disposals, net |
(2,404) |
(10,997) |
(102) |
(11,387) |
|||||
Impairment charges |
- |
- |
3,281 |
- |
|||||
Depreciation and amortization |
26,799 |
31,492 |
80,628 |
97,054 |
|||||
Letter of credit expense |
6,456 |
6,843 |
19,368 |
17,795 |
|||||
Reimer Finance Co. dissolution (foreign exchange) |
n/a |
n/a |
5,540 |
n/a |
|||||
Other nonoperating, net |
(102) |
(690) |
1,103 |
398 |
|||||
Adjusted EBITDA |
$ 9,196 |
$ (95,394) |
$ (44,945) |
$ (541,359) |
|||||
Adjusted EBITDA as % of operating revenue |
1.2% |
-11.2% |
-2.1% |
-19.7% |
|||||
YRC Regional segment |
|||||||||
Operating Revenue |
$ 354,182 |
$ 338,777 |
$ 1,014,834 |
$ 1,031,800 |
|||||
Operating Ratio, as adjusted |
97.6% |
99.9% |
100.3% |
111.4% |
|||||
Reconciliation of operating income (loss) to adjusted EBITDA: |
|||||||||
Operating income (loss) |
$ 8,590 |
$ 293 |
$ (8,658) |
$ (122,178) |
|||||
Union equity awards |
- |
- |
6,089 |
4,568 |
|||||
Operating income (loss), as adjusted |
8,590 |
293 |
(2,569) |
(117,610) |
|||||
(Gains) losses on property disposals, net |
(1,086) |
(188) |
3,044 |
685 |
|||||
Impairment charges |
- |
- |
2,000 |
- |
|||||
Depreciation and amortization |
15,960 |
16,489 |
47,890 |
49,869 |
|||||
Letter of credit expense |
1,744 |
1,762 |
5,174 |
4,872 |
|||||
Other nonoperating, net |
405 |
(68) |
422 |
(71) |
|||||
Adjusted EBITDA |
$ 25,613 |
$ 18,288 |
$ 55,961 |
$ (62,255) |
|||||
Adjusted EBITDA as % of operating revenue |
7.2% |
5.4% |
5.5% |
-6.0% |
|||||
Operating Ratio, as adjusted is calculated as 100 minus the result of dividing operating income, as adjusted by operating revenue or plus the result of dividing operating loss, as adjusted by operating revenue, and expressed as a percentage. |
|||||||||
SUPPLEMENTAL FINANCIAL INFORMATION |
|||||||||
YRC Worldwide Inc. and Subsidiaries |
|||||||||
(Amounts in thousands) |
|||||||||
(Unaudited) |
|||||||||
For the Three and Nine Months Ended September 30 |
Three Months |
Nine Months |
|||||||
2010 |
2009 |
2010 |
2009 |
||||||
YRC Truckload segment |
|||||||||
Operating Revenue |
$ 28,841 |
$ 29,949 |
$ 83,942 |
$ 83,470 |
|||||
Operating Ratio, as adjusted |
107.8% |
104.7% |
108.6% |
107.2% |
|||||
Reconciliation of operating loss to adjusted EBITDA: |
|||||||||
Operating loss |
$ (2,264) |
$ (1,416) |
$ (7,309) |
$ (6,033) |
|||||
Union equity awards |
- |
- |
111 |
- |
|||||
Operating loss, as adjusted |
(2,264) |
(1,416) |
(7,198) |
(6,033) |
|||||
(Gains) losses on property disposals, net |
- |
48 |
42 |
124 |
|||||
Depreciation and amortization |
2,152 |
2,238 |
6,583 |
6,801 |
|||||
Letter of credit expense |
72 |
87 |
244 |
241 |
|||||
Other nonoperating, net |
1 |
- |
1 |
- |
|||||
Adjusted EBITDA |
$ (39) |
$ 957 |
$ (328) |
$ 1,133 |
|||||
Adjusted EBITDA as % of operating revenue |
-0.1% |
3.2% |
-0.4% |
1.4% |
|||||
Corporate and other segment |
|||||||||
Reconciliation of operating loss to adjusted EBITDA: |
|||||||||
Operating loss |
$ (3,609) |
$ (3,483) |
$ (14,201) |
$ (10,055) |
|||||
Union equity awards |
n/a |
n/a |
n/a |
n/a |
|||||
Operating loss, as adjusted |
(3,609) |
(3,483) |
(14,201) |
(10,055) |
|||||
(Gains) losses on property disposals, net |
61 |
(2) |
199 |
(1) |
|||||
Depreciation and amortization |
4,874 |
8,126 |
15,390 |
27,449 |
|||||
Equity based compensation expense |
2,211 |
2,032 |
5,545 |
8,147 |
|||||
Letter of credit expense |
49 |
146 |
157 |
393 |
|||||
Restructuring professional fees |
6,594 |
n/a |
15,936 |
n/a |
|||||
Other nonoperating, net |
(616) |
(1,258) |
(497) |
(4,822) |
|||||
Adjusted EBITDA |
$ 9,564 |
$ 5,561 |
$ 22,529 |
$ 21,111 |
|||||
Operating Ratio, as adjusted is calculated as 100 minus the result of dividing operating income, as adjusted by operating revenue or plus the result of dividing operating loss, as adjusted by operating revenue, and expressed as a percentage. |
|||||||||
CONSOLIDATED BALANCE SHEETS |
|||||||
YRC Worldwide Inc. and Subsidiaries |
|||||||
(Amounts in thousands except per share data) |
|||||||
September 30, |
December 31, |
||||||
2010 |
2009 |
||||||
ASSETS |
(Unaudited) |
||||||
CURRENT ASSETS: |
|||||||
Cash and cash equivalents |
$ 114,944 |
$ 97,788 |
|||||
Accounts receivable, net |
496,466 |
442,814 |
|||||
Prepaid expenses and other |
180,342 |
242,640 |
|||||
Current assets of discontinued operations |
- |
75,578 |
|||||
Total current assets |
791,752 |
858,820 |
|||||
PROPERTY AND EQUIPMENT: |
|||||||
Cost |
3,290,814 |
3,529,583 |
|||||
Less - accumulated depreciation |
1,683,168 |
1,708,371 |
|||||
Net property and equipment |
1,607,646 |
1,821,212 |
|||||
OTHER ASSETS: |
|||||||
Intangibles, net |
143,871 |
160,407 |
|||||
Other assets |
129,801 |
170,176 |
|||||
Noncurrent assets of discontinued operations |
- |
21,459 |
|||||
Total assets |
$ 2,673,070 |
$ 3,032,074 |
|||||
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT) |
|||||||
CURRENT LIABILITIES: |
|||||||
Accounts payable |
$ 155,704 |
$ 154,671 |
|||||
Wages, vacations, and employees' benefits |
205,051 |
213,754 |
|||||
Other current and accrued liabilities |
508,940 |
392,392 |
|||||
Current maturities of long-term debt |
210,258 |
197,127 |
|||||
Current liabilities of discontinued operations |
- |
51,884 |
|||||
Total current liabilities |
1,079,953 |
1,009,828 |
|||||
OTHER LIABILITIES: |
|||||||
Long-term debt, less current portion |
850,052 |
935,782 |
|||||
Deferred income taxes, net |
149,711 |
146,576 |
|||||
Pension and post retirement |
352,224 |
351,861 |
|||||
Claims and other liabilities |
362,784 |
419,883 |
|||||
Noncurrent liabilities of discontinued operations |
- |
954 |
|||||
SHAREHOLDERS' EQUITY (DEFICIT): |
|||||||
Preferred stock, $1 par value per share |
- |
4,346 |
|||||
Common stock, $0.01 par value per share |
476 |
40 |
|||||
Capital surplus |
1,642,613 |
1,577,300 |
|||||
Accumulated deficit |
(1,522,631) |
(1,177,280) |
|||||
Accumulated other comprehensive loss |
(147,923) |
(144,479) |
|||||
Treasury stock, at cost (123 shares) |
(92,737) |
(92,737) |
|||||
Total YRC Worldwide Inc. shareholders' equity (deficit) |
(120,202) |
167,190 |
|||||
Non-controlling interest |
(1,452) |
- |
|||||
Total shareholders' equity (deficit) |
(121,654) |
167,190 |
|||||
Total liabilities and shareholders' equity (deficit) |
$ 2,673,070 |
$ 3,032,074 |
|||||
STATEMENTS OF CONSOLIDATED OPERATIONS |
||||||||||
YRC Worldwide Inc. and Subsidiaries |
||||||||||
For the Three and Nine Months Ended September 30 |
||||||||||
(Amounts in thousands except per share data) |
||||||||||
(Unaudited) |
||||||||||
Three Months |
Nine Months |
|||||||||
2010 |
2009 |
2010 |
2009 |
|||||||
OPERATING REVENUE |
$ 1,136,836 |
$ 1,203,977 |
$ 3,243,081 |
$ 3,820,916 |
||||||
OPERATING EXPENSES: |
||||||||||
Salaries, wages and employees' benefits |
683,034 |
804,192 |
2,017,046 |
2,894,376 |
||||||
Equity based compensation expense |
2,211 |
2,032 |
30,540 |
28,786 |
||||||
Operating expenses and supplies |
235,222 |
274,402 |
716,011 |
895,022 |
||||||
Purchased transportation |
122,882 |
128,392 |
337,784 |
381,404 |
||||||
Depreciation and amortization |
49,785 |
58,346 |
150,491 |
181,173 |
||||||
Other operating expenses |
65,967 |
74,399 |
186,471 |
250,290 |
||||||
(Gains) losses on property disposals, net |
(3,429) |
(11,138) |
3,183 |
(10,579) |
||||||
Impairment charges |
- |
- |
5,281 |
- |
||||||
Total operating expenses |
1,155,672 |
1,330,625 |
3,446,807 |
4,620,472 |
||||||
OPERATING LOSS |
(18,836) |
(126,648) |
(203,726) |
(799,556) |
||||||
NONOPERATING (INCOME) EXPENSES: |
||||||||||
Interest expense |
43,922 |
44,371 |
126,234 |
114,901 |
||||||
Equity investment impairment |
- |
- |
12,338 |
30,374 |
||||||
Other, net |
959 |
2,142 |
(3,832) |
6,625 |
||||||
Nonoperating expenses, net |
44,881 |
46,513 |
134,740 |
151,900 |
||||||
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
(63,717) |
(173,161) |
(338,466) |
(951,456) |
||||||
INCOME TAX BENEFIT |
(3,794) |
(2,078) |
(9,448) |
(208,901) |
||||||
NET LOSS FROM CONTINUING OPERATIONS |
(59,923) |
(171,083) |
(329,018) |
(742,555) |
||||||
NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX |
(2,514) |
12,347 |
(17,876) |
1,000 |
||||||
NET LOSS |
(62,437) |
(158,736) |
(346,894) |
(741,555) |
||||||
LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST |
(696) |
- |
(1,543) |
- |
||||||
NET LOSS ATTRIBUTABLE TO YRC WORLDWIDE INC |
$ (61,741) |
$ (158,736) |
$ (345,351) |
$ (741,555) |
||||||
AVERAGE SHARES OUTSTANDING-BASIC |
46,530 |
2,381 |
36,930 |
2,379 |
||||||
AVERAGE SHARES OUTSTANDING-DILUTED |
46,530 |
2,381 |
36,930 |
2,379 |
||||||
BASIC LOSS PER SHARE |
||||||||||
LOSS FROM CONTINUING OPERATIONS |
$ (1.27) |
$ (71.84) |
$ (8.87) |
$ (312.13) |
||||||
INCOME (LOSS) FROM DISCONTINUED OPERATIONS |
(0.06) |
5.18 |
(0.48) |
0.42 |
||||||
NET LOSS |
$ (1.33) |
$ (66.66) |
$ (9.35) |
$ (311.71) |
||||||
DILUTED LOSS PER SHARE |
||||||||||
LOSS FROM CONTINUING OPERATIONS |
$ (1.27) |
$ (71.84) |
$ (8.87) |
$ (312.13) |
||||||
INCOME (LOSS) FROM DISCONTINUED OPERATIONS |
(0.06) |
5.18 |
(0.48) |
0.42 |
||||||
NET LOSS |
$ (1.33) |
$ (66.66) |
$ (9.35) |
$ (311.71) |
||||||
AMOUNTS ATTRIBUTABLE TO YRC WORLDWIDE INC. COMMON SHAREHOLDERS: |
||||||||||
LOSS FROM CONTINUING OPERATIONS, NET OF TAX |
$ (59,227) |
$ (171,083) |
$ (327,475) |
$ (742,555) |
||||||
INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX |
(2,514) |
12,347 |
(17,876) |
1,000 |
||||||
NET LOSS |
$ (61,741) |
$ (158,736) |
$ (345,351) |
$ (741,555) |
||||||
STATEMENTS OF CONSOLIDATED CASH FLOWS |
|||||||||||
YRC Worldwide Inc. and Subsidiaries |
|||||||||||
For the Three and Nine Months Ended September 30 |
|||||||||||
(Amounts in thousands) |
|||||||||||
(Unaudited) |
|||||||||||
Three Months |
Nine Months |
||||||||||
2010 |
2009 |
2010 |
2009 |
||||||||
OPERATING ACTIVITIES: |
|||||||||||
Net loss |
$ (62,437) |
$ (158,736) |
$ (346,894) |
$ (741,555) |
|||||||
Noncash items included in net loss: |
|||||||||||
Depreciation and amortization |
50,216 |
61,442 |
155,444 |
192,160 |
|||||||
Equity based compensation expense |
2,195 |
2,032 |
30,540 |
28,786 |
|||||||
Impairment charges |
- |
- |
17,619 |
30,374 |
|||||||
Pension settlement charge |
- |
2,213 |
104 |
7,968 |
|||||||
(Gains) losses on property disposals, net |
(3,727) |
(11,142) |
4,583 |
(10,555) |
|||||||
Gain on sale of affiliate |
(638) |
- |
(638) |
||||||||
Deferred income tax benefit, net |
(4,179) |
2,952 |
(9,963) |
(196,134) |
|||||||
Amortization of deferred debt costs |
13,008 |
7,995 |
35,697 |
18,488 |
|||||||
Other noncash items |
2,164 |
2,910 |
(2,537) |
7,477 |
|||||||
Changes in assets and liabilities, net: |
|||||||||||
Accounts receivable |
(10,000) |
21,188 |
(37,635) |
188,164 |
|||||||
Accounts payable |
(21,032) |
6,601 |
(3,367) |
(75,669) |
|||||||
Other operating assets |
(11,323) |
73 |
74,538 |
67,768 |
|||||||
Other operating liabilities |
50,900 |
(9,852) |
73,184 |
166,987 |
|||||||
Net cash provided by (used in) operating activities |
5,147 |
(72,324) |
(9,325) |
(315,741) |
|||||||
INVESTING ACTIVITIES: |
|||||||||||
Acquisition of property and equipment |
(2,080) |
(9,153) |
(12,935) |
(35,179) |
|||||||
Proceeds from disposal of property and equipment |
35,562 |
68,477 |
71,343 |
106,010 |
|||||||
Disposition of affiliate, net of cash sold |
22,883 |
- |
22,883 |
- |
|||||||
Other |
- |
3,660 |
5,223 |
3,462 |
|||||||
Net cash provided by investing activities |
56,365 |
62,984 |
86,514 |
74,293 |
|||||||
FINANCING ACTIVITIES: |
|||||||||||
ABS borrowings (payments), net |
(24,611) |
(17,347) |
(23,497) |
40,695 |
|||||||
Issuance of long-term debt |
11,663 |
106,929 |
153,458 |
471,130 |
|||||||
Repayment of long-term debt |
(86,758) |
(73,599) |
(187,858) |
(377,048) |
|||||||
Debt issuance costs |
(3,145) |
(8,381) |
(12,713) |
(55,907) |
|||||||
Equity issuance costs |
- |
- |
(17,323) |
- |
|||||||
Equity issuance proceeds |
- |
- |
15,906 |
- |
|||||||
Stock issued in connection with the 6% Notes |
11,994 |
- |
11,994 |
- |
|||||||
Net cash (used in) provided by financing activities |
(90,857) |
7,602 |
(60,033) |
78,870 |
|||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
(29,345) |
(1,738) |
17,156 |
(162,578) |
|||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
144,289 |
164,509 |
97,788 |
325,349 |
|||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD |
$ 114,944 |
$ 162,771 |
$ 114,944 |
$ 162,771 |
|||||||
SUPPLEMENTAL CASH FLOW INFORMATION |
|||||||||||
Income tax refund, net |
$ (253) |
$ 3,691 |
$ 83,035 |
$ 37,613 |
|||||||
Pension contribution deferral transfer to debt |
$ - |
$ 23,989 |
$ 4,361 |
$ 157,216 |
|||||||
Lease financing transactions |
$ 2,866 |
$ 20,929 |
$ 29,613 |
$ 305,080 |
|||||||
Interest paid in stock for the 6% Notes |
$ 2,007 |
$ - |
$ 2,007 |
$ - |
|||||||
SUPPLEMENTAL FINANCIAL INFORMATION |
|||||||||||||
YRC Worldwide Inc. and Subsidiaries |
|||||||||||||
For the Three and Nine Months Ended September 30 |
|||||||||||||
(Amounts in thousands) |
|||||||||||||
(Unaudited) |
|||||||||||||
SEGMENT INFORMATION |
|||||||||||||
Three Months |
Nine Months |
||||||||||||
2010 |
2009 |
% |
2010 |
2009 |
% |
||||||||
Operating revenue: |
|||||||||||||
YRC National Transportation |
$ 755,017 |
$ 849,304 |
(11.1) |
$ 2,159,719 |
$ 2,745,652 |
(21.3) |
|||||||
YRC Regional Transportation |
354,182 |
338,777 |
4.5 |
1,014,834 |
1,031,800 |
(1.6) |
|||||||
YRC Truckload |
28,841 |
29,949 |
(3.7) |
83,942 |
83,470 |
0.6 |
|||||||
Eliminations and other |
(1,204) |
(14,053) |
(15,414) |
(40,006) |
|||||||||
Consolidated |
1,136,836 |
1,203,977 |
(5.6) |
3,243,081 |
3,820,916 |
(15.1) |
|||||||
Operating income (loss): |
|||||||||||||
YRC National Transportation |
(21,553) |
(122,042) |
(173,558) |
(661,290) |
|||||||||
YRC Regional Transportation |
8,590 |
293 |
(8,658) |
(122,178) |
|||||||||
YRC Truckload |
(2,264) |
(1,416) |
(7,309) |
(6,033) |
|||||||||
Corporate and other |
(3,609) |
(3,483) |
(14,201) |
(10,055) |
|||||||||
Consolidated |
$ (18,836) |
$ (126,648) |
$ (203,726) |
$ (799,556) |
|||||||||
Operating ratio: |
|||||||||||||
YRC National Transportation |
102.9% |
114.4% |
108.0% |
124.1% |
|||||||||
YRC Regional Transportation |
97.6% |
99.9% |
100.9% |
111.8% |
|||||||||
YRC Truckload |
107.8% |
104.7% |
108.7% |
107.2% |
|||||||||
Consolidated |
101.7% |
110.5% |
106.3% |
120.9% |
|||||||||
(Gains) losses on property disposals, net: |
|||||||||||||
YRC National Transportation |
$ (2,404) |
$ (10,997) |
$ (102) |
$ (11,387) |
|||||||||
YRC Regional Transportation |
(1,086) |
(188) |
3,044 |
685 |
|||||||||
YRC Truckload |
- |
48 |
42 |
124 |
|||||||||
Corporate and other |
61 |
(1) |
199 |
(1) |
|||||||||
Consolidated |
$ (3,429) |
$ (11,138) |
$ 3,183 |
$ (10,579) |
|||||||||
Note: YRC Logistic segment reported as discontinued operations for all periods presented. |
|||||||||||||
SUPPLEMENTAL INFORMATION |
|||||||||||||
September 30, |
December 31, |
||||||||||||
2010 |
2009 |
||||||||||||
Debt: |
|||||||||||||
Term loan ($260,220 and $111,500 par values) |
$ 261,019 |
$ 112,612 |
|||||||||||
Revolving credit facility |
149,880 |
329,119 |
|||||||||||
Credit Agreement Debt |
410,899 |
441,731 |
|||||||||||
Asset backed securitization borrowings |
122,788 |
146,285 |
|||||||||||
Total Bank Debt |
533,687 |
588,016 |
|||||||||||
Lease financing obligations |
328,640 |
318,892 |
|||||||||||
Pension contribution deferral obligation |
139,694 |
153,041 |
|||||||||||
Contingent convertible senior notes |
1,870 |
21,671 |
|||||||||||
USF senior notes ($45,000 par value) |
- |
45,289 |
|||||||||||
6% convertible senior notes ($69,410 par value) |
55,319 |
- |
|||||||||||
Other |
1,100 |
6,000 |
|||||||||||
Total debt |
1,060,310 |
1,132,909 |
|||||||||||
Asset backed securitization borrowings |
(122,788) |
(146,285) |
|||||||||||
Current maturities of lease financing obligations |
(3,000) |
(2,671) |
|||||||||||
Current maturities of pension contribution deferral obligations |
(81,500) |
(20,500) |
|||||||||||
Current maturities of contingent convertible senior notes and other |
(2,970) |
(27,671) |
|||||||||||
Total current debt |
(210,258) |
(197,127) |
|||||||||||
Total long-term debt |
850,052 |
935,782 |
|||||||||||
Letters of credit |
|||||||||||||
Credit facility |
454,166 |
461,032 |
|||||||||||
Asset backed securitization |
72,180 |
77,180 |
|||||||||||
Total letters of credit |
$ 526,346 |
$ 538,212 |
|||||||||||
SEGMENT STATISTICS |
||||||||||
YRC Worldwide Inc. and Subsidiaries |
||||||||||
(amounts in thousands except workdays and per unit data) |
||||||||||
YRC National Transportation |
||||||||||
Y/Y |
Sequential |
|||||||||
3Q10 |
3Q09 |
2Q10 |
% |
% |
||||||
Workdays |
64.0 |
64.0 |
63.5 |
|||||||
Total picked up basis revenue |
$ 746,768 |
$ 834,742 |
$ 730,263 |
(10.5) |
2.3 |
|||||
Total tonnage |
1,747 |
2,008 |
1,714 |
(13.0) |
2.0 |
|||||
Total tonnage per day |
27.30 |
31.37 |
26.99 |
(13.0) |
1.2 |
|||||
Total shipments |
3,001 |
3,418 |
2,931 |
(12.2) |
2.4 |
|||||
Total shipments per day |
46.89 |
53.41 |
46.16 |
(12.2) |
1.6 |
|||||
Total revenue/cwt. |
$ 21.37 |
$ 20.79 |
$ 21.30 |
2.8 |
0.3 |
|||||
Total revenue/shipment |
$ 249 |
$ 244 |
$ 249 |
1.9 |
(0.1) |
|||||
Total weight/shipment |
1,165 |
1,175 |
1,170 |
(0.9) |
(0.4) |
|||||
Reconciliation of operating revenue to total picked up basis revenue: |
||||||||||
Operating revenue |
$ 755,017 |
$ 849,304 |
$ 741,639 |
|||||||
Change in revenue deferral and other |
(8,249) |
(14,562) |
(11,376) |
|||||||
Total picked up basis revenue |
$ 746,768 |
$ 834,742 |
$ 730,263 |
|||||||
YRC Regional Transportation |
||||||||||
Y/Y |
Sequential |
|||||||||
3Q10 |
3Q09 |
2Q10 |
% |
% |
||||||
Workdays |
63.0 |
64.0 |
64.0 |
|||||||
Total picked up basis revenue |
$ 354,197 |
$ 338,597 |
$ 351,948 |
4.6 |
0.6 |
|||||
Total tonnage |
1,734 |
1,617 |
1,725 |
7.2 |
0.5 |
|||||
Total tonnage per day |
27.52 |
25.26 |
26.96 |
8.9 |
2.1 |
|||||
Total shipments |
2,463 |
2,442 |
2,459 |
0.9 |
0.2 |
|||||
Total shipments per day |
39.10 |
38.15 |
38.43 |
2.5 |
1.8 |
|||||
Total revenue/cwt. |
$ 10.21 |
$ 10.47 |
$ 10.20 |
(2.5) |
0.1 |
|||||
Total revenue/shipment |
$ 144 |
$ 139 |
$ 143 |
3.7 |
0.5 |
|||||
Total weight/shipment |
1,408 |
1,324 |
1,403 |
6.3 |
0.3 |
|||||
Reconciliation of operating revenue to total picked up basis revenue: |
||||||||||
Operating revenue |
$ 354,182 |
$ 338,777 |
$ 351,498 |
|||||||
Change in revenue deferral and other |
15 |
(180) |
450 |
|||||||
Total picked up basis revenue |
$ 354,197 |
$ 338,597 |
$ 351,948 |
|||||||
‘Total picked up basis revenue’ is a non-GAAP measure which is used to calculate statistical information above such as ‘Total revenue/cwt.’ and ‘Total revenue/shipment.’ The number of shipments and number of tons shown above are consistent with the ‘Total picked up basis revenue.’ A reconciliation of ‘Total picked up basis revenue’ to the GAAP measure ‘Operating revenue’ for each segment is shown above. ‘Total picked up basis revenue’ and the related statistical information provide relative benchmarks for the company’s volume and pricing performance and trends comparable to other LTL companies. |
||||||||||
SOURCE YRC Worldwide
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article