YRC Worldwide Reports Third Quarter 2020 Results
Holding Company to Reinvigorate Heritage Yellow Brand
Leadership and Board of Directors Changes Announced
Net loss for third quarter 2020 was
“During the quarter we transitioned to managing our business in a tighter capacity environment and setting the stage for 2021. Improving tonnage trends late in Q3 has allowed LTL pricing to firm up with less volatility expected moving forward” said
“We ended the quarter with just over
Yellow Brand
The Company announced that in 2021 the holding company will move forward under the heritage Yellow brand. The Company anticipates its LTL brands
“Following an in-depth study, Yellow is the right brand and it’s the right time to modernize our existing holding company brand in conjunction with our enterprise transformation. The
Leadership and Board of Directors
The Company also announced today that
“Jamie has been instrumental in several financial transactions at critical times that have helped preserve an essential part of the American supply chain and the livelihoods of 30,000 families. Most recently he helped facilitate the CARES Act loan process and secure the other amendments to our credit facilities. We thank Jamie for his dedicated service to YRCW”, continued Hawkins.
As a result of this change effective immediately,
“Dan’s knowledge of the Company and his extensive involvement with every aspect of our business will provide for a smooth transition during this interim period,” continued Hawkins.
The Company recently named
The Company also announced two additions to its Board of Directors, former
“As we move forward with our work to operate as one company, Governor Martinez’s and Ms. Jones’s backgrounds will enhance our ability to grow while building our workforce with leaders that bring to us new perspectives and experiences”, concluded Hawkins.
Third Quarter 2020 Financial Update
- Revenue decreased by
$73.4 million to$1.183 billion compared to revenue of$1.257 billion in third quarter of 2019. - Net loss decreased by
$14.0 million to$2.0 million compared to a net loss of$16.0 million in third quarter of 2019. - On a non-GAAP basis, the Company generated consolidated Adjusted EBITDA of
$62.0 million in the third quarter of 2020, a$3.9 million decrease compared to$65.9 million in the prior year comparable quarter (as detailed in the reconciliation below). Last twelve months (LTM) consolidated Adjusted EBITDA was$179.8 million compared to$240.8 million in 2019 (as detailed in the reconciliation below).
Third Quarter 2020 Operational Update
- LTL revenue per hundredweight including fuel surcharge decreased 4.0%; however, LTL weight per shipment increased 2.2% resulting in an LTL revenue per shipment decrease of 1.9% when compared to the same period in 2019. Excluding fuel surcharge, LTL revenue per hundredweight was down 1.4% and LTL revenue per shipment was up 0.8%.
- LTL tonnage per day decreased 4.1% when compared to 3Q19. LTL tonnage per day improved 6.2% in September as compared to August.
- The consolidated operating ratio for the quarter was 98.4 compared to 98.1 in 3Q19.
Liquidity Update (as of September 30, 2020)
- The Company’s available liquidity as calculated under our credit agreement, which was comprised of cash and cash equivalents and Managed Accessibility (as detailed in the supplemental information provided below) under its ABL facility, was
$453.7 million as ofSeptember 30, 2020 . - The Company’s outstanding debt was
$1.156 billion , an increase of$249.3 million compared to$906.3 million as ofSeptember 30, 2019 . - For the nine months ended
September 30, 2020 , cash provided by operating activities was$108.5 million compared to$13.4 million for the nine months endedSeptember 30, 2019 .
Key Information – Third quarter 2020 compared to Third quarter 2019
| |
2020 | 2019 | Percent Change(a) | |||
| Workdays | 64.0 | 63.0 | ||||
| Operating revenue (in millions) | $ | 1,183.4 | $ | 1,256.8 | (5.8)% | |
| Operating income (in millions) | $ | 19.4 | $ | 23.8 | (18.5)% | |
| Operating ratio | 98.4 | 98.1 | (0.3 pp) | |||
| LTL tonnage per day (in thousands) | 40.38 | 42.11 | (4.1)% | |||
| LTL shipments per day (in thousands) | 70.00 | 74.64 | (6.2)% | |||
| LTL picked up revenue per hundredweight incl FSC | $ | 20.82 | $ | 21.70 | (4.0)% | |
| LTL picked up revenue per hundredweight excl FSC LTL picked up revenue per shipment incl FSC LTL picked up revenue per shipment excl FSC LTL weight/shipment (in pounds) |
$ $ $ |
18.90 240 218 1,154 |
$ $ $ |
19.16 245 216 1,128 |
(1.4)% (1.9)% 0.8% 2.2% |
|
| Total tonnage per day (in thousands) | 51.49 | 52.81 | (2.5)% | |||
| Total shipments per day (in thousands) | 72.02 | 76.34 | (5.7)% | |||
| Total picked up revenue per hundredweight incl FSC | $ | 17.89 | $ | 18.75 | (4.6)% | |
| Total picked up revenue per hundredweight excl FSC Total picked up revenue per shipment incl FSC Total picked up revenue per shipment excl FSC Total weight/shipment (in pounds) |
$ $ $ |
16.29 256 233 1,430 |
$ $ $ |
16.61 259 230 1,383 |
(1.9)% (1.4)% 1.3% 3.3% |
(a) Percent change based on unrounded figures and not the rounded figures presented
Review of Financial Results
A live audio webcast of the conference call and presentation slides will be available on YRC Worldwide Inc.’s website www.yrcw.com. A replay of the webcast will also be available at www.yrcw.com.
Non-GAAP Financial Measures
EBITDA is a non-GAAP measure that reflects the company’s earnings before interest, taxes, depreciation, and amortization expense. Adjusted EBITDA is a non-GAAP measure that reflects EBITDA, and further adjusts for letter of credit fees, equity-based compensation expense, net gains or losses on property disposals, restructuring charges, transaction costs related to issuances of debt, non-recurring consulting fees, non-cash impairment charges and the gains or losses from permitted dispositions, discontinued operations, and certain non-cash expenses, charges and losses (provided that if any of such non-cash expenses, charges or losses represents an accrual or reserve for potential cash items in any future period, the cash payment in respect thereof in such future period will be subtracted from Adjusted EBITDA in such future period to the extent paid). Adjusted EBITDA as used herein is defined as Consolidated EBITDA in our UST Credit Agreements and New Term Loan Agreement (collectively, the “TL Agreements”). EBITDA and Adjusted EBITDA are 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 our TL Agreements and to determine certain management and employee bonus compensation. We believe our presentation of EBITDA and Adjusted EBITDA is useful to investors and other users as these measures represent key supplemental information our management uses to compare and evaluate our core underlying business results, particularly in light of our leverage position and the capital-intensive nature of our business. Further, EBITDA is a measure that is commonly used by other companies in our industry and provides a comparison for investors to evaluate the performance of the companies in the industry. Additionally, Adjusted EBITDA helps investors to understand how the company is tracking against our financial covenants in our TL Agreements.
EBITDA and Adjusted EBITDA have the following limitations:
- EBITDA does not reflect the interest expense or the cash requirements necessary to service interest or fund principal payments on our outstanding debt;
- Adjusted EBITDA does not reflect the interest expense or the cash requirements necessary to service interest or fund principal payments on our outstanding debt, letter of credit expenses, restructuring charges, transaction costs related to debt, non-cash charges, charges or losses (subject to the conditions above), or nonrecurring consulting fees, among other items;
- Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will have to be replaced in the future and EBITDA and Adjusted EBITDA do not reflect any cash requirements for such replacements;
- Equity-based compensation is an element of our long-term incentive compensation program for certain employees, although Adjusted EBITDA excludes employee equity-based compensation 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, our non-GAAP measures should not be considered a substitute for performance measures calculated in accordance with GAAP. We compensate for these limitations by relying primarily on our GAAP results and using our non-GAAP measures as secondary measures. The company has provided reconciliations of its non-GAAP measures to GAAP net income (loss) and operating income (loss) within the supplemental financial information in this release.
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Words such as “will,” “expect,” “intend,” “anticipate,” “believe,” “could,” “would,” “should,” “may,” “project,” “forecast,” “look forward,” “propose,” “plan,” “designed,” “enable,” and similar expressions which speak only as of the date the statement was made are intended to identify forward-looking statements. Forward-looking statements are inherently uncertain, are based upon current beliefs, assumptions and expectations of Company management and current market conditions, and are subject to significant business, economic, competitive, regulatory and other risks, uncertainties and contingencies, known and unknown, many of which are beyond our control. Our future financial condition and results could differ materially from those predicted in such forward-looking statements because of a number of factors, including (without limitation) general economic factors and transportation industry-specific economic conditions, including the impact of COVID-19; our ability to generate sufficient liquidity to satisfy our cash needs and future cash commitments, including (without limitation) the impact of COVID-19 on our results of operations, financial condition and cash flows; our obligations related to our indebtedness and lease and pension funding requirements, and our ability to achieve increased cash flows through improvement in operations; our failure to comply with the covenants in the documents governing our existing and future indebtedness; customer demand in the retail and manufacturing sectors; business risks and increasing costs associated with the transportation industry, including increasing equipment, operational and technology costs and disruption from natural disasters; competition and competitive pressure on pricing; the risk of labor disruptions or stoppages, if our relationship with our employees and unions were to deteriorate; increasing pension expense and funding obligations, subject to interest rate volatility; increasing costs relating to our self-insurance claims expenses; our ability to finance the maintenance, acquisition and replacement of revenue equipment and other necessary capital expenditures; our ability to comply and the cost of compliance with, or liability resulting from violation of, federal, state, local and foreign laws and regulations, including (without limitation) labor laws and laws and regulations regarding the environment; impediments to our operations and business resulting from anti-terrorism measures; the impact of claims and litigation expense to which we are or may become exposed; failure to realize the expected benefits and costs savings from our performance and operational improvement initiatives; our ability to attract and retain qualified drivers and increasing costs of driver compensation; a significant privacy breach or IT system disruption; risks of operating in foreign countries; our dependence on key employees; seasonality; shortages of fuel and changes in the cost of fuel or the index upon which we base our fuel surcharge and the effectiveness of our fuel surcharge program in protecting us against fuel price volatility; limitations on our operations, our financing opportunities, potential strategic transactions, acquisitions or dispositions resulting from restrictive covenants in the documents governing our existing and future indebtedness; fluctuations in the price of our common stock; dilution from future issuances of our common stock; our intention not to pay dividends on our common stock; that we have the ability to issue preferred stock that may adversely affect the rights of holders of our common stock; and other risks and contingencies, including (without limitation) the risk factors that are included in our reports filed with the
About
Please visit our website at www.yrcw.com for more information.
Investor Contact:
Tony Carreño
913-696-6108
investor@yrcw.com
Media Contact:
913-696-6121
mike.kelley@yrcw.com
SOURCE:
| CONSOLIDATED BALANCE SHEETS | |||||||||||
| (Amounts in millions except share and per share data) | |||||||||||
| 2020 | 2019 | ||||||||||
| ASSETS | (Unaudited) | ||||||||||
| CURRENT ASSETS: | |||||||||||
| Cash and cash equivalents | $ | 434.1 | $ | 109.2 | |||||||
| Restricted amounts held in escrow | 4.4 | - | |||||||||
| Accounts receivable, net | 541.3 | 464.4 | |||||||||
| Prepaid expenses and other | 53.3 | 44.6 | |||||||||
| Total current assets | 1,033.1 | 618.2 | |||||||||
| PROPERTY AND EQUIPMENT: | |||||||||||
| Cost | 2,709.8 | 2,761.6 | |||||||||
| Less - accumulated depreciation | (2,012.0 | ) | (1,991.3 | ) | |||||||
| Net property and equipment | 697.8 | 770.3 | |||||||||
| Deferred income taxes, net | 0.5 | 0.6 | |||||||||
| Operating lease right-of-use assets | 299.4 | 386.0 | |||||||||
| Other assets | 77.5 | 56.5 | |||||||||
| Total assets | $ | 2,108.3 | $ | 1,831.6 | |||||||
| LIABILITIES AND SHAREHOLDERS' DEFICIT | |||||||||||
| CURRENT LIABILITIES: | |||||||||||
| Accounts payable | $ | 196.9 | $ | 163.7 | |||||||
| Wages, vacations, and employee benefits | 234.3 | 195.9 | |||||||||
| Current operating lease liabilities | 115.9 | 120.8 | |||||||||
| Other current and accrued liabilities | 160.4 | 167.5 | |||||||||
| Current maturities of long-term debt | 4.0 | 4.1 | |||||||||
| Total current liabilities | 711.5 | 652.0 | |||||||||
| OTHER LIABILITIES: | |||||||||||
| Long-term debt, less current portion | 1,099.2 | 858.1 | |||||||||
| Pension and postretirement | 104.2 | 236.5 | |||||||||
| Operating lease liabilities | 196.2 | 246.3 | |||||||||
| Claims and other liabilities | 320.3 | 279.9 | |||||||||
| Commitments and contingencies | |||||||||||
| SHAREHOLDERS' DEFICIT: | |||||||||||
| Preferred stock, |
- | - | |||||||||
| Common stock, |
0.5 | 0.3 | |||||||||
| Capital surplus | 2,383.1 | 2,332.9 | |||||||||
| Accumulated deficit | (2,347.2 | ) | (2,312.4 | ) | |||||||
| Accumulated other comprehensive loss | (266.8 | ) | (369.3 | ) | |||||||
| (92.7 | ) | (92.7 | ) | ||||||||
| Total shareholders' deficit | (323.1 | ) | (441.2 | ) | |||||||
| Total liabilities and shareholders' deficit | $ | 2,108.3 | $ | 1,831.6 | |||||||
| STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||
| For the Three and Nine Months Ended |
|||||||||||||||||
| (Amounts in millions except per share data, shares in thousands) | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| Three Months | Nine Months | ||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||||
| OPERATING REVENUE | $ | 1,183.4 | $ | 1,256.8 | $ | 3,349.2 | $ | 3,711.7 | |||||||||
| OPERATING EXPENSES: | |||||||||||||||||
| Salaries, wages and employee benefits | 720.6 | 756.2 | 2,088.7 | 2,256.7 | |||||||||||||
| Fuel, operating expenses and supplies | 175.4 | 218.9 | 546.1 | 683.1 | |||||||||||||
| Purchased transportation | 177.1 | 160.7 | 439.3 | 465.0 | |||||||||||||
| Depreciation and amortization | 32.5 | 37.2 | 102.4 | 115.7 | |||||||||||||
| Other operating expenses | 58.4 | 59.0 | 175.2 | 180.2 | |||||||||||||
| (Gains) losses on property disposals, net | - | 1.0 | (45.3 | ) | (3.6 | ) | |||||||||||
| Impairment charges | - | - | - | 8.2 | |||||||||||||
| Total operating expenses | 1,164.0 | 1,233.0 | 3,306.4 | 3,705.3 | |||||||||||||
| OPERATING INCOME | 19.4 | 23.8 | 42.8 | 6.4 | |||||||||||||
| NONOPERATING EXPENSES: | |||||||||||||||||
| Interest expense | 33.4 | 27.9 | 101.9 | 83.1 | |||||||||||||
| Loss on extinguishment of debt | - | 11.2 | - | 11.2 | |||||||||||||
| Non-union pension and postretirement benefits | (1.1 | ) | 2.0 | (4.3 | ) | 2.8 | |||||||||||
| Other, net | - | (0.8 | ) | (1.2 | ) | (0.9 | ) | ||||||||||
| Nonoperating expenses, net | 32.3 | 40.3 | 96.4 | 96.2 | |||||||||||||
| LOSS BEFORE INCOME TAXES | (12.9 | ) | (16.5 | ) | (53.6 | ) | (89.8 | ) | |||||||||
| INCOME TAX BENEFIT | (10.9 | ) | (0.5 | ) | (18.8 | ) | (1.1 | ) | |||||||||
| NET LOSS | (2.0 | ) | (16.0 | ) | (34.8 | ) | (88.7 | ) | |||||||||
| OTHER COMPREHENSIVE INCOME, NET OF TAX | 98.0 | 3.6 | 102.5 | 9.1 | |||||||||||||
| COMPREHENSIVE INCOME (LOSS) | $ | 96.0 | $ | (12.4 | ) | $ | 67.7 | $ | (79.6 | ) | |||||||
| AVERAGE COMMON SHARES OUTSTANDING - BASIC | 48,672 | 33,259 | 38,864 | 33,098 | |||||||||||||
| AVERAGE COMMON SHARES OUTSTANDING - DILUTED | 48,672 | 33,259 | 38,864 | 33,098 | |||||||||||||
| LOSS PER SHARE - BASIC | $ | (0.04 | ) | $ | (0.48 | ) | $ | (0.90 | ) | $ | (2.68 | ) | |||||
| LOSS PER SHARE - DILUTED | $ | (0.04 | ) | $ | (0.48 | ) | $ | (0.90 | ) | $ | (2.68 | ) | |||||
| OPERATING RATIO (a): | 98.4 | % | 98.1 | % | 98.7 | % | 99.8 | % | |||||||||
| (a) Operating ratio is calculated as (i) 100 percent (ii) minus the result of dividing operating income by operating revenue or (iii) plus the result of dividing operating loss by operating revenue, and expressed as a percentage. | |||||||||||||||||
| STATEMENTS OF CONSOLIDATED CASH FLOWS | |||||||||||
| For the Nine Months Ended |
|||||||||||
| (Amounts in millions) | |||||||||||
| (Unaudited) | |||||||||||
| 2020 | 2019 | ||||||||||
| OPERATING ACTIVITIES: | |||||||||||
| Net loss | $ | (34.8 | ) | $ | (88.7 | ) | |||||
| Adjustments to reconcile net loss to cash flows from operating activities: | |||||||||||
| Depreciation and amortization | 102.4 | 115.7 | |||||||||
| Lease amortization and accretion expense | 122.7 | 124.7 | |||||||||
| Lease payments | (94.6 | ) | (113.4 | ) | |||||||
| Paid-in-kind interest | 40.5 | - | |||||||||
| Equity-based compensation and employee benefits expense | 14.4 | 14.4 | |||||||||
| Non-union pension settlement charge | 1.9 | 1.7 | |||||||||
| Gains on property disposals, net | (45.3 | ) | (3.6 | ) | |||||||
| Loss on extinguishment of debt | - | 11.2 | |||||||||
| Impairment charges | - | 8.2 | |||||||||
| Deferred income tax benefit, net | (11.1 | ) | (2.3 | ) | |||||||
| Other non-cash items, net | 11.6 | 4.1 | |||||||||
| Changes in assets and liabilities, net: | |||||||||||
| Accounts receivable | (76.9 | ) | (42.8 | ) | |||||||
| Accounts payable | 24.8 | (3.1 | ) | ||||||||
| Other operating assets | (9.3 | ) | 0.6 | ||||||||
| Other operating liabilities | 62.2 | (13.3 | ) | ||||||||
| Net cash provided by operating activities | 108.5 | 13.4 | |||||||||
| INVESTING ACTIVITIES: | |||||||||||
| Acquisition of property and equipment | (41.4 | ) | (111.5 | ) | |||||||
| Proceeds from disposal of property and equipment | 55.3 | 9.9 | |||||||||
| Net cash provided by (used in) investing activities | 13.9 | (101.6 | ) | ||||||||
| FINANCING ACTIVITIES: | |||||||||||
| Issuance of long-term debt, net | 245.0 | 570.0 | |||||||||
| Repayment of long-term debt | (29.1 | ) | (576.2 | ) | |||||||
| Debt issuance costs | (8.4 | ) | (11.1 | ) | |||||||
| Payments for tax withheld on equity-based compensation | (0.6 | ) | (0.8 | ) | |||||||
| Net cash provided by (used in) financing activities | 206.9 | (18.1 | ) | ||||||||
| NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED AMOUNTS HELD IN ESCROW | 329.3 | (106.3 | ) | ||||||||
| CASH, CASH EQUIVALENTS AND RESTRICTED AMOUNTS HELD IN ESCROW, BEGINNING OF PERIOD | 109.2 | 227.6 | |||||||||
| CASH, CASH EQUIVALENTS AND RESTRICTED AMOUNTS HELD IN ESCROW, END OF PERIOD | $ | 438.5 | $ | 121.3 | |||||||
| SUPPLEMENTAL CASH FLOW INFORMATION | |||||||||||
| Interest paid | $ | (47.2 | ) | $ | (77.8 | ) | |||||
| Income tax payment, net | (0.7 | ) | (2.6 | ) | |||||||
| SUPPLEMENTAL FINANCIAL INFORMATION | |||||||||||||||||||||||
| (Amounts in millions) | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| SUPPLEMENTAL INFORMATION: Total Debt | |||||||||||||||||||||||
| Commitment | Debt Issue | ||||||||||||||||||||||
| As of |
Par Value | Discount | Fee | Costs | Book Value | ||||||||||||||||||
| New Term Loan | $ | 613.5 | $ | (22.5 | ) | $ | - | $ | (10.0 | ) | $ | 581.0 | |||||||||||
| ABL Facility | - | - | - | - | - | ||||||||||||||||||
| Tranche A UST Credit Agreement | 246.7 | - | (15.4 | ) | (4.1 | ) | 227.2 | ||||||||||||||||
| Tranche B UST Credit Agreement | - | - | - | - | - | ||||||||||||||||||
| Secured Second A&R CDA | 24.1 | - | - | (0.1 | ) | 24.0 | |||||||||||||||||
| Unsecured Second A&R CDA | 45.2 | - | - | (0.1 | ) | 45.1 | |||||||||||||||||
| Lease financing obligations | 226.1 | - | - | (0.2 | ) | 225.9 | |||||||||||||||||
| Total debt | $ | 1,155.6 | $ | (22.5 | ) | $ | (15.4 | ) | $ | (14.5 | ) | $ | 1,103.2 | ||||||||||
| Commitment | Debt Issue | ||||||||||||||||||||||
| As of |
Par Value | Discount | Fee | Costs | Book Value | ||||||||||||||||||
| New Term Loan | $ | 600.0 | $ | (28.1 | ) | $ | - | $ | (12.0 | ) | $ | 559.9 | |||||||||||
| ABL Facility | - | - | - | - | - | ||||||||||||||||||
| Secured Second A&R CDA | 26.0 | - | - | (0.1 | ) | 25.9 | |||||||||||||||||
| Unsecured Second A&R CDA | 45.2 | - | - | (0.1 | ) | 45.1 | |||||||||||||||||
| Lease financing obligations | 231.6 | - | - | (0.3 | ) | 231.3 | |||||||||||||||||
| Total debt | $ | 902.8 | $ | (28.1 | ) | $ | - | $ | (12.5 | ) | $ | 862.2 | |||||||||||
| SUPPLEMENTAL INFORMATION: Liquidity | |||||||||||||||||||||||
| 2020 | 2019 | ||||||||||||||||||||||
| Cash and cash equivalents | $ | 434.1 | $ | 109.2 | |||||||||||||||||||
| Changes to restricted cash | - | (29.0 | ) | ||||||||||||||||||||
| Managed Accessibility (a) | 19.6 | 0.2 | |||||||||||||||||||||
| Total Cash and cash equivalents and Managed Accessibility | $ | 453.7 | $ | 80.4 | |||||||||||||||||||
| (a) Managed Accessibility represents the maximum amount we would access on the ABL Facility and is adjusted for eligible receivables plus eligible borrowing base cash measured for the applicable period. Based on the eligible receivable’s management uses to measure availability, which is 10% of the borrowing line, the credit agreement governing the ABL Facility permits adjustments from eligible borrowing base cash to restricted cash prior to the compliance measurement date which is 15 days from the period close. | |||||||||||||||||||||||
| SUPPLEMENTAL FINANCIAL INFORMATION | |||||||||||||||||
| For the Three and Nine Months Ended |
|||||||||||||||||
| (Amounts in millions) | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| Three Months | Nine Months | ||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||||
| Reconciliation of net loss to Adjusted EBITDA(a): | |||||||||||||||||
| Net loss | $ | (2.0 | ) | $ | (16.0 | ) | $ | (34.8 | ) | $ | (88.7 | ) | |||||
| Interest expense, net | 33.4 | 27.7 | 101.8 | 82.0 | |||||||||||||
| Income tax benefit | (10.9 | ) | (0.5 | ) | (18.8 | ) | (1.1 | ) | |||||||||
| Depreciation and amortization | 32.5 | 37.2 | 102.4 | 115.7 | |||||||||||||
| EBITDA | 53.0 | 48.4 | 150.6 | 107.9 | |||||||||||||
| Adjustments for New Term Loan Agreement: | |||||||||||||||||
| (Gains) losses on property disposals, net | - | 1.0 | (45.3 | ) | (3.6 | ) | |||||||||||
| Non-cash reserve changes(b) | - | (2.0 | ) | 3.0 | 14.0 | ||||||||||||
| Impairment charges | - | - | - | 8.2 | |||||||||||||
| Letter of credit expense | 2.0 | 1.6 | 5.2 | 4.8 | |||||||||||||
| Permitted dispositions and other | 0.3 | 0.1 | 0.5 | (1.0 | ) | ||||||||||||
| Equity-based compensation expense | 1.1 | 1.8 | 4.3 | 5.2 | |||||||||||||
| Loss on extinguishment of debt | - | 11.2 | - | 11.2 | |||||||||||||
| Non-union pension settlement charge | 1.9 | 1.7 | 1.9 | 1.7 | |||||||||||||
| Other, net | 1.0 | 0.2 | 1.5 | 2.3 | |||||||||||||
| Expense amounts subject to 10% threshold(c): | |||||||||||||||||
| COVID-19 | - | - | 3.9 | - | |||||||||||||
| Other, net | 3.1 | 1.3 | 8.8 | 14.1 | |||||||||||||
| Adjusted EBITDA prior to 10% threshold | 62.4 | 65.3 | 134.4 | 164.8 | |||||||||||||
| Adjustments pursuant to TTM calculation(c) | (0.4 | ) | 0.6 | (0.4 | ) | (1.5 | ) | ||||||||||
| Adjusted EBITDA | $ | 62.0 | $ | 65.9 | $ | 134.0 | $ | 163.3 | |||||||||
| (a) | Certain reclassifications have been made to prior year to conform to current year presentation. | ||||||||||||||||
| (b) | Non-cash reserve changes reflect the net non-cash reserve charge for union and non-union vacation, with such non-cash reserve adjustment to be reduced by cash charges in a future period when paid. | ||||||||||||||||
| (c) | Pursuant to the UST Credit Agreements and New Term Loan Agreement, Adjusted EBITDA limits certain adjustments in aggregate to 10% of the trailing-twelve-month ("TTM") consolidated Adjusted EBITDA, prior to the inclusion of amounts subject to the 10% threshold, for each period ending. Such adjustments include, but are not limited to, restructuring charges, integration costs, severance, and non-recurring charges. The limitation calculation is updated quarterly based on TTM Adjusted EBITDA, however, the sum of the quarters may not necessarily equal TTM Adjusted EBITDA due to the expiration of adjustments from prior periods. | ||||||||||||||||
| SUPPLEMENTAL FINANCIAL INFORMATION | ||||||||
| For the Trailing Twelve Months Ended |
||||||||
| (Amounts in millions) | ||||||||
| (Unaudited) | ||||||||
| 2020 | 2019 | |||||||
| Reconciliation of net loss to Adjusted EBITDA(a): | ||||||||
| Net loss | $ | (50.1 | ) | $ | (71.2 | ) | ||
| Interest expense, net | 129.7 | 109.3 | ||||||
| Income tax expense (benefit) | (22.0 | ) | 7.8 | |||||
| Depreciation and amortization | 139.1 | 153.2 | ||||||
| EBITDA | 196.7 | 199.1 | ||||||
| Adjustments for Term Loan Agreement: | ||||||||
| Gains on property disposals, net | (55.4 | ) | (31.7 | ) | ||||
| Non-cash reserve changes(b) | 5.1 | 14.0 | ||||||
| Impairment charges | - | 8.2 | ||||||
| Letter of credit expense | 6.9 | 6.4 | ||||||
| Permitted dispositions and other | 0.6 | (1.0 | ) | |||||
| Equity-based compensation expense | 5.4 | 6.0 | ||||||
| Loss on extinguishment of debt | - | 11.2 | ||||||
| Non-union pension settlement charge | 2.0 | 5.4 | ||||||
| Other, net | 2.1 | 1.2 | ||||||
| Expense amounts subject to 10% threshold(c): | ||||||||
| COVID-19 | 3.9 | - | ||||||
| Other, net | 12.9 | 23.5 | ||||||
| Adjusted EBITDA prior to 10% threshold | 180.2 | 242.3 | ||||||
| Adjustments pursuant to TTM calculation(c) | (0.4 | ) | (1.5 | ) | ||||
| Adjusted EBITDA | $ | 179.8 | $ | 240.8 | ||||
| For explanations of footnotes (a), (b) and (c), please refer to previous page. | ||||||||
| Statistics | ||||||||||||||||||
| Quarterly Comparison | ||||||||||||||||||
| Y/Y | Sequential | |||||||||||||||||
| 3Q20 | 3Q19 | 2Q20 | % (a) | % (a) | ||||||||||||||
| Workdays | 64.0 | 63.0 | 63.0 | |||||||||||||||
| LTL picked up revenue (in millions) | $ | 1,076.1 | $ | 1,151.2 | $ | 929.8 | (6.5 | ) | 15.7 | |||||||||
| LTL tonnage (in thousands) | 2,584 | 2,653 | 2,283 | (2.6 | ) | 13.2 | ||||||||||||
| LTL tonnage per day (in thousands) | 40.38 | 42.11 | 36.24 | (4.1 | ) | 11.4 | ||||||||||||
| LTL shipments (in thousands) | 4,480 | 4,703 | 4,003 | (4.7 | ) | 11.9 | ||||||||||||
| LTL shipments per day (in thousands) | 70.00 | 74.64 | 63.53 | (6.2 | ) | 10.2 | ||||||||||||
| LTL picked up revenue/cwt. | $ | 20.82 | $ | 21.70 | $ | 20.36 | (4.0 | ) | 2.3 | |||||||||
| LTL picked up revenue/cwt. (excl. FSC) | $ | 18.90 | $ | 19.16 | $ | 18.48 | (1.4 | ) | 2.2 | |||||||||
| LTL picked up revenue/shipment | $ | 240 | $ | 245 | $ | 232 | (1.9 | ) | 3.4 | |||||||||
| LTL picked up revenue/shipment (excl. FSC) | $ | 218 | $ | 216 | $ | 211 | 0.8 | 3.4 | ||||||||||
| LTL weight/shipment (in pounds) | 1,154 | 1,128 | 1,141 | 2.2 | 1.1 | |||||||||||||
| Total picked up revenue (in millions)(b) | $ | 1,179.1 | $ | 1,247.7 | $ | 1,018.4 | (5.5 | ) | 15.8 | |||||||||
| Total tonnage (in thousands) | 3,295 | 3,327 | 2,926 | (1.0 | ) | 12.6 | ||||||||||||
| Total tonnage per day (in thousands) | 51.49 | 52.81 | 46.44 | (2.5 | ) | 10.9 | ||||||||||||
| Total shipments (in thousands) | 4,609 | 4,810 | 4,122 | (4.2 | ) | 11.8 | ||||||||||||
| Total shipments per day (in thousands) | 72.02 | 76.34 | 65.44 | (5.7 | ) | 10.1 | ||||||||||||
| Total revenue/cwt. | $ | 17.89 | $ | 18.75 | $ | 17.40 | (4.6 | ) | 2.8 | |||||||||
| Total revenue/cwt. (excl. FSC) | $ | 16.29 | $ | 16.61 | $ | 15.85 | (1.9 | ) | 2.7 | |||||||||
| Total revenue/shipment | $ | 256 | $ | 259 | $ | 247 | (1.4 | ) | 3.6 | |||||||||
| Total revenue/shipment (excl. FSC) | $ | 233 | $ | 230 | $ | 225 | 1.3 | 3.5 | ||||||||||
| Total weight/shipment (in pounds) | 1,430 | 1,383 | 1,419 | 3.3 | 0.7 | |||||||||||||
| (b) Reconciliation of operating revenue to total picked up revenue (in millions): | ||||||||||||||||||
| Operating revenue | $ | 1,183.4 | $ | 1,256.8 | $ | 1,015.4 | ||||||||||||
| Change in revenue deferral and other | (4.3 | ) | (9.1 | ) | 3.0 | |||||||||||||
| Total picked up revenue | $ | 1,179.1 | $ | 1,247.7 | $ | 1,018.4 | ||||||||||||
| (a) | Percent change based on unrounded figures and not the rounded figures presented. | |||||||||||||||||
| (b) | Does not equal financial statement revenue due to revenue adjustments for shipments in transit and the impact of other revenue. | |||||||||||||||||
| Statistics | |||||||||||
| YTD Comparison | |||||||||||
| Y/Y | |||||||||||
| 2020 | 2019 | % (a) | |||||||||
| Workdays | 192.5 | 189.5 | |||||||||
| LTL picked up revenue (in millions) | $ | 3,055.5 | $ | 3,404.7 | (10.3 | ) | |||||
| LTL tonnage (in thousands) | 7,412 | 7,879 | (5.9 | ) | |||||||
| LTL tonnage per day (in thousands) | 38.50 | 41.58 | (7.4 | ) | |||||||
| LTL shipments (in thousands) | 12,806 | 13,962 | (8.3 | ) | |||||||
| LTL shipments per day (in thousands) | 66.52 | 73.68 | (9.7 | ) | |||||||
| LTL picked up revenue/cwt. | $ | 20.61 | $ | 21.61 | (4.6 | ) | |||||
| LTL picked up revenue/cwt. (excl. FSC) | $ | 18.55 | $ | 19.05 | (2.6 | ) | |||||
| LTL picked up revenue/shipment | $ | 239 | $ | 244 | (2.2 | ) | |||||
| LTL picked up revenue/shipment (excl. FSC) | $ | 215 | $ | 215 | (0.1 | ) | |||||
| LTL weight/shipment (in pounds) | 1,158 | 1,129 | 2.6 | ||||||||
| Total picked up revenue (in millions) (b) | $ | 3,338.9 | $ | 3,688.1 | (9.5 | ) | |||||
| Total tonnage (in thousands) | 9,454 | 9,857 | (4.1 | ) | |||||||
| Total tonnage per day (in thousands) | 49.11 | 52.01 | (5.6 | ) | |||||||
| Total shipments (in thousands) | 13,158 | 14,270 | (7.8 | ) | |||||||
| Total shipments per day (in thousands) | 68.35 | 75.30 | (9.2 | ) | |||||||
| Total picked up revenue/cwt. | $ | 17.66 | $ | 18.71 | (5.6 | ) | |||||
| Total picked up revenue/cwt. (excl. FSC) | $ | 15.95 | $ | 16.55 | (3.6 | ) | |||||
| Total picked up revenue/shipment | $ | 254 | $ | 258 | (1.8 | ) | |||||
| Total picked up revenue/shipment (excl. FSC) | $ | 229 | $ | 229 | 0.3 | ||||||
| Total weight/shipment (in pounds) | 1,437 | 1,381 | 4.0 | ||||||||
| (b) Reconciliation of operating revenue to total picked up revenue (in millions): | |||||||||||
| Operating revenue | $ | 3,349.2 | $ | 3,711.7 | |||||||
| Change in revenue deferral and other | (10.3 | ) | (23.6 | ) | |||||||
| Total picked up revenue | $ | 3,338.9 | $ | 3,688.1 | |||||||
| (a) | Percent change based on unrounded figures and not the rounded figures presented. | ||||||||||
| (b) | Does not equal financial statement revenue due to revenue adjustments for shipments in transit and the impact of other revenue. | ||||||||||
Source: YRC Worldwide, Inc.