News Release

October 30, 2009 at 9:00 AM EDT

YRC Worldwide Reports Significant Sequential Improvement in Its Third Quarter 2009 Results

OVERLAND PARK, Kan., Oct 30, 2009 /PRNewswire-FirstCall via COMTEX News Network/ --

    --  YRC Regional and YRC Logistics Profitable
    --  ABS Facility Renewed Early; Extended through October 2010
    --  New Long-Term Bank Amendment Provides for Deferral of Interest and Fees

    --  Update on Proposed Exchange Offer

YRC Worldwide Inc. (Nasdaq: YRCW) today reported its results for the third quarter and provided an update on its comprehensive plan. For the quarter, the company announced a loss per share of $2.67 that included a net gain on property disposals of $.18 per share, severance charges of $.08 per share due to further headcount reductions and lease termination charges of $.11 per share related to further optimizing the networks. By comparison, the company reported a loss per share in the third quarter of 2008 of $12.58 that included impairment charges on goodwill and intangible assets of $13.20 per share, a curtailment gain of $.84 per share, and a net gain on property disposals of $.21 per share.

"We gained significant momentum in the third quarter as we executed on our comprehensive plan to improve operating efficiencies, restore financial strength and position our company for future success," stated Bill Zollars, Chairman and CEO of YRC Worldwide. "We achieved significant sequential improvement from the first half of the year. In fact, YRC Regional Transportation and YRC Logistics were profitable for the quarter, and our operating cash flow trends improved sequentially during the quarter despite the continued economic downturn."

YRC Worldwide also reported aggregated cash and available unused capacity under the credit facilities of $171 million at September 30, 2009, including $163 million of cash and cash equivalents. In addition, the revolver reserve under the company's credit agreement was $102 million at September 30, 2009. The company expects to commence an exchange offer for its outstanding USF 8-1/2% notes and its contingent convertible notes. The successful completion of this exchange would allow the company to access this revolver reserve under its recently amended credit agreement, therefore providing a significant source of new liquidity. More information regarding the exchange offer and credit agreement is provided below. The company also completed $21 million of sale and financing leaseback transactions and sold $68 million of excess property during the third quarter, including $10 million in pension deferral debt pay downs from these proceeds.

Key Segment Information

Third quarter 2009 compared to the third quarter 2008:

    --  YRC National Transportation total shipments per day down 39.9% and total
        revenue per hundredweight, including fuel surcharge, down 11.5%.

    --  YRC Regional Transportation total shipments per day down 22.7% and total
        revenue per hundredweight, including fuel surcharge, down 12.2%.

"Our third quarter sequential shipment trends have dramatically stabilized as compared to the trends from the first half of the year, while we continue to maintain pricing discipline in an increasingly competitive marketplace," said Tim Wicks, President and Chief Operating Officer of YRC Worldwide.

Additional statistical information is available on the company's website at yrcw.com under Investors, Earnings Releases & Operating Statistics.

Asset-Backed Securitization Facility Renewal and Credit Facility Amendment

The company renewed its asset-backed securitization facility ("ABS") early with a total capacity of $400 million through October 2010, which was previously set to expire in February 2010. The due date of the $10 million ABS commitment fee previously payable on October 30, 2009 has also been extended to October 2010. In addition, the company has also amended its credit agreement. The renewed ABS and amended credit agreement provide for a deferral of nearly all of the lender interest and fees effective upon the closing of the note exchange. In the third quarter of 2009, the ABS and credit agreement interest and fees subject to the deferral provisions approximated $25 million. The amended credit facilities include the elimination of the minimum earnings before interest, taxes, depreciation and amortization ("EBITDA") covenants for the fourth quarter of 2009 and the first quarter of 2010, and reset the remaining minimum EBITDA and minimum liquidity covenants. The revolver capacity under the credit agreement remains at $950 million, including the existing revolver reserve amount, which was $106 million as of the date of the amendment. Upon completion of the note exchange, the existing revolver reserve will extend through January 1, 2012. Additional details regarding the amendment to the credit agreement and ABS renewal will be provided in a Form 8-K filed with the SEC today.

"We continue to receive solid support from our lenders as we implement our recovery plan to manage through this severe economic downturn," stated Sheila Taylor, Executive Vice President and CFO of YRC Worldwide. "With 100% of the credit facility and ABS lenders approving the amendments, they have once again demonstrated the belief they have in the value of this company and its potential, as the benefits of our strategic plans become more apparent in our results."

Update on Proposed Note Exchange Offer Discussions

The company is currently in discussions with a committee of its noteholders regarding the terms of a proposed exchange offer for its outstanding USF 8-1/2% notes and its contingent convertible notes. The successful completion of this exchange would allow the company to access the $106 million revolver reserve under its recently amended credit agreement, therefore providing a significant source of new liquidity.

"We have been in active dialogue with our noteholders and feel good about the progress being made. The exchange will be a key milestone in our comprehensive plan which is expected to improve our capital structure, reduce our debt and increase our cash flow," stated Zollars.

Review of Financial Results

YRC Worldwide Inc. will host a conference call for shareholders and the investment community today, Friday, October 30, 2009 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.


                 IMPORTANT INFORMATION ABOUT THE EXCHANGE OFFER
                 ----------------------------------------------

This release is for informational purposes only and is not an offer to buy or the solicitation of an offer to sell any security. An exchange offer will only be made pursuant to exchange offer documents that are to be made available to the holders of the our notes and filed with the Securities and Exchange Commission ("SEC"). Holders of our notes are advised to read the exchange offer documents when they become available, as these documents will contain important information about the exchange offer. Copies of the exchange offer documents (when available) and other filed documents will be available for free at the SEC's website at www.sec.gov on the Company's website at yrcw.com, or by making a request to YRC Worldwide Inc., 10990 Roe Avenue, Overland Park, Kansas 66211, (913) 696-6100, Attention: Dan Churay, Executive Vice President, General Counsel and Secretary.

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," "expected," "should," "will," "can," 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) 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, including the company's Annual Report on Form 10-K for the year ended December 31, 2008.

Any exchange offer will be subject to a number of significant conditions, including, among other things, that holders of a specific percentage of the outstanding notes participate in the exchange offer. We cannot provide you with any assurances that such conditions to the exchange offer will be satisfied. We expect that the exchange offer, if completed, will result in our noteholders holding substantially all of our outstanding common stock.

YRC Worldwide Inc., a Fortune 500 company headquartered in Overland Park, Kan., is one of the largest transportation service providers in the world and the holding company for a portfolio of successful brands including YRC, YRC Reimer, YRC Glen Moore, YRC Logistics, New Penn, Holland and Reddaway. 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 yrcw.com for more information.


    Investor Contact: Paul Liljegren       Media Contact: Suzanne Dawson
                      YRC Worldwide Inc.                  Linden Alschuler &
                      913.696.6108                         Kaplan
                      Paul.Liljegren@yrcw.com             212.329.1420
                                                          sdawson@lakpr.com


                           CONSOLIDATED BALANCE SHEETS
                       YRC Worldwide Inc. and Subsidiaries
                   (Amounts in thousands except per share data)


                                                  September 30,   December 31,
                                                      2009           2008
    ASSETS                                         (Unaudited)

    CURRENT ASSETS:
      Cash and cash equivalents                       $162,771      $325,349
      Accounts receivable, net                         648,891       837,055
      Prepaid expenses and other                       193,470       298,101
        Total current assets                         1,005,132     1,460,505

    PROPERTY AND EQUIPMENT:
      Cost                                           3,775,775     3,977,881
      Less - accumulated depreciation                1,816,404     1,776,904
        Net property and equipment                   1,959,371     2,200,977

    OTHER ASSETS:
      Intangibles, net                                 170,664       184,769
      Other assets                                     145,836       119,862
        Total assets                                $3,281,003    $3,966,113


    LIABILITIES AND SHAREHOLDERS'
     EQUITY (DEFICIT)

    CURRENT LIABILITIES:
      Accounts payable                                $256,556      $333,910
      Wages, vacations, and employees' benefits        278,128       356,410
      Other current and accrued liabilities            403,385       489,994
      Current maturities of long-term debt             749,800       562,321
        Total current liabilities                    1,687,869     1,742,635

    OTHER LIABILITIES:
      Long-term debt, less current portion             892,027       787,415
      Deferred income taxes, net                       131,487       242,663
      Pension and post retirement                      384,979       370,031
      Claims and other liabilities                     410,206       341,918


    SHAREHOLDERS' EQUITY (DEFICIT):
      Common stock, $1 par value per share              62,617        62,413
      Preferred stock, $1 par value per share                -             -
      Capital surplus                                1,264,891     1,239,586
      Accumulated deficit                           (1,296,816)     (555,261)
      Accumulated other comprehensive loss            (163,520)     (172,550)
      Treasury stock, at cost (3,079 shares)           (92,737)      (92,737)
        Total shareholders' equity (deficit)          (225,565)      481,451
        Total liabilities and
         shareholders' equity (deficit)             $3,281,003    $3,966,113



                     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
                                2009        2008       2009        2008

    OPERATING REVENUE       $1,306,338  $2,380,258  $4,137,213  $7,011,578

    OPERATING EXPENSES:
      Salaries, wages and
       employees' benefits     835,527   1,315,473   3,014,883   4,009,043
      Operating expenses
       and supplies            297,006     539,614     973,672   1,570,938
      Purchased
       transportation          163,816     303,221     503,070     839,471
      Depreciation and
       amortization             61,442      67,808     192,160     194,556
      Other operating
       expenses                 77,642     103,165     260,889     322,243
      (Gains) losses on
       property
       disposals, net          (11,142)    (15,466)    (10,555)     (8,927)
      Impairment charges             -     823,064           -     823,064
        Total operating
         expenses            1,424,291   3,136,879   4,934,119   7,750,388
    OPERATING
     INCOME (LOSS)            (117,953)   (756,621)   (796,906)   (738,810)

    NONOPERATING
     (INCOME) EXPENSES:
      Interest expense          44,440      21,107     115,073      59,323
      Equity investment
       impairment                    -           -      30,374           -
      Other, net                 2,667      (1,028)      6,539      (4,862)
        Nonoperating
         expenses, net          47,107      20,079     151,986      54,461

    INCOME (LOSS) BEFORE
     INCOME TAXES             (165,060)   (776,700)   (948,892)   (793,271)
    INCOME TAX PROVISION
     (BENEFIT)                  (6,324)    (55,823)   (207,337)    (61,802)
    NET INCOME (LOSS)        $(158,736)  $(720,877)  $(741,555)  $(731,469)

    AVERAGE SHARES
     OUTSTANDING-BASIC          59,534      57,317      59,463      57,106
    AVERAGE SHARES
     OUTSTANDING-DILUTED        59,534      57,317      59,463      57,106
    BASIC EARNINGS
     (LOSS) PER SHARE           $(2.67)    $(12.58)    $(12.47)    $(12.81)
    DILUTED EARNINGS
     (LOSS) PER SHARE           $(2.67)    $(12.58)    $(12.47)    $(12.81)





            STATEMENTS OF CONSOLIDATED CASH FLOWS
             YRC Worldwide Inc. and Subsidiaries
           For the Nine Months Ended September 30
                   (Amounts in thousands)
                         (Unaudited)


                                       2009       2008

    OPERATING ACTIVITIES:
      Net income (loss)            $(741,555) $(731,469)
      Noncash items included in
       net income (loss):
        Depreciation and
         amortization                192,160    194,556
        Stock compensation expense    28,786      7,855
        Pension settlement charge      7,968          -
        Curtailment gain                   -    (97,788)
        Equity investment
         impairment                   30,374          -
        Impairment charge                  -    823,064
        Gains on property
         disposals, net              (10,555)    (8,958)
        Deferred income tax
         provision (benefit), net   (196,134)   (38,620)
        Other noncash items, net      25,965     (4,560)
      Changes in assets and
       liabilities, net:
        Accounts receivable          188,164    (21,269)
        Accounts payable             (75,669)   (45,666)
        Other operating assets        67,768     28,797
        Other operating
         liabilities                 166,987     56,873
        Net cash (used in)
         provided by operating
         activities                 (315,741)   162,815

    INVESTING ACTIVITIES:
      Acquisition of property and
       equipment                     (35,179)  (104,402)
      Proceeds from disposal of
       property and equipment        106,010     78,796
      Investment in affiliate              -    (34,289)
      Other                            3,462     (4,449)
        Net cash provided by
         (used in) investing
         activities                   74,293    (64,344)

    FINANCING ACTIVITIES:
      Asset backed securitization
       borrowings (payments), net     40,695    (38,000)
      Issuance of long-term debt     305,130          -
      Repayment of long-term debt   (211,048)    (5,096)
      Debt issuance costs            (55,907)   (11,035)
      Proceeds from exercise of
       stock options                       -         50
        Net cash provided by
         (used in) financing
         activities                   78,870    (54,081)
    NET (DECREASE) INCREASE IN
     CASH AND CASH EQUIVALENTS      (162,578)    44,390
    CASH AND CASH EQUIVALENTS,
     BEGINNING OF PERIOD             325,349     58,233
    CASH AND CASH EQUIVALENTS,
     END OF PERIOD                  $162,771   $102,623

    SUPPLEMENTAL CASH FLOW
     INFORMATION
    Pension contribution deferral
     transfer to debt               $157,216         $-



                       SUPPLEMENTAL FINANCIAL INFORMATION
                      YRC Worldwide Inc. and Subsidiaries
                For the Three and Nine Months Ended September 30
                             (Amounts in thousands)
                                  (Unaudited)


                                               Three Months
                                            2009          2008     % change

    Operating revenue:
      YRC National Transportation         $849,304    $1,693,675     (49.9)
      YRC Regional Transportation          338,777       509,492     (33.5)
      YRC Logistics                        102,361       165,312     (38.1)
      YRC Truckload                         29,949        33,311     (10.1)
      Eliminations                         (14,053)      (21,532)
      Consolidated                      $1,306,338    $2,380,258     (45.1)

    Operating income (loss):
      YRC National Transportation        $(122,042)    $(573,585)
      YRC Regional Transportation              293       (88,045)
      YRC Logistics                          6,295       (90,552)
      YRC Truckload                         (1,416)       (1,433)
      Corporate and other                   (1,083)       (3,006)
      Consolidated                       $(117,953)    $(756,621)

    Operating ratio:
      YRC National Transportation            114.4%        133.9%
      YRC Regional Transportation             99.9%        117.3%
      YRC Logistics                           93.9%        154.8%
      YRC Truckload                          104.7%        104.3%
      Consolidated                           109.0%        131.8%

    (Gains) losses on property
     disposals, net:
      YRC National Transportation         $(10,997)      $(5,385)
      YRC Regional Transportation             (188)       (3,850)
      YRC Logistics                             (4)       (6,187)
      YRC Truckload                             48           (44)
      Corporate and other                       (1)            -
      Consolidated                        $(11,142)     $(15,466)


    SUPPLEMENTAL INFORMATION

    Current debt:
      Asset backed securitization
       borrowings
      Lease financing obligations
      Pension contribution deferral
       obligation
      Contingent convertible
       senior notes
      USF senior notes
      Term loan
      Industrial development bonds
      Total current debt

    Long-term debt, less current
     portion:
      Lease financing obligations
      Pension contribution deferral
       obligation
      USF senior notes
      Term loan
      Revolving credit facility
      Industrial development bonds
      Total long-term debt, less
       current portion

      Total debt



                                                 Nine Months
                                             2009          2008    % change

    Operating revenue:
      YRC National Transportation       $2,745,652    $4,946,363     (44.5)
      YRC Regional Transportation        1,031,800     1,555,511     (33.7)
      YRC Logistics                        316,297       474,897     (33.4)
      YRC Truckload                         83,470        90,369      (7.6)
      Eliminations                         (40,006)      (55,562)
      Consolidated                      $4,137,213    $7,011,578     (41.0)

    Operating income (loss):
      YRC National Transportation        $(661,290)    $(506,271)
      YRC Regional Transportation         (122,178)     (123,544)
      YRC Logistics                         (5,106)      (89,757)
      YRC Truckload                         (6,033)      (10,422)
      Corporate and other                   (2,299)       (8,816)
      Consolidated                       $(796,906)    $(738,810)

    Operating ratio:
      YRC National Transportation            124.1%        110.2%
      YRC Regional Transportation            111.8%        107.9%
      YRC Logistics                          101.6%        118.9%
      YRC Truckload                          107.2%        111.5%
      Consolidated                           119.3%        110.5%

    (Gains) losses on property
     disposals, net:
      YRC National Transportation         $(11,387)      $(1,212)
      YRC Regional Transportation              685        (2,844)
      YRC Logistics                             24        (6,126)
      YRC Truckload                            124           927
      Corporate and other                       (1)          328
      Consolidated                        $(10,555)      $(8,927)


    SUPPLEMENTAL INFORMATION
                                         September 30,  December 31,
    Current debt:                            2009          2008
      Asset backed securitization
       borrowings                         $187,695      $147,000
      Lease financing obligations            1,553             -
      Pension contribution deferral
       obligation                           24,350             -
      Contingent convertible
       senior notes                        378,141       375,821
      USF senior notes                     152,061             -
      Term loan                                  -        38,500
      Industrial development bonds           6,000         1,000
      Total current debt                   749,800       562,321

    Long-term debt, less current
     portion:
      Lease financing obligations          299,602             -
      Pension contribution deferral
       obligation                          117,446             -
      USF senior notes                           -       154,915
      Term loan                            112,716       111,500
      Revolving credit facility            362,263       515,000
      Industrial development bonds               -         6,000
      Total long-term debt, less
       current portion                    $892,027      $787,415

      Total debt                        $1,641,827    $1,349,736

SOURCE YRC Worldwide

http://www.yrcw.com

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