November 5, 2010

YRC Worldwide Reports Third Quarter Results

  • YRC National Tonnage up 1.2% and YRC Regional up 2.1% from Second Quarter 2010
  • Achieved Significant Progress on Comprehensive Recovery Plan

OVERLAND PARK, Kan. Nov. 5, 2010 /PRNewswire-FirstCall/ --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

 

paul.liljegren@yrcw.com

 


 

Media Contact:

Suzanne Dawson              

 

Linden, Alschuler & Kaplan

 

212-329-1420

 

sdawson@lakpr.com

 
   


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
    exchange)

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)
operating activities:







 

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
  dispositions

(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

 

 

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