November 4, 2011

YRC Worldwide Reports Third Quarter 2011 Results

- YRC National tons per day up 4.2%, revenue per hundredweight up 7.5%, operating revenue up 11.5%
- Regional tons per day up 5.6%, revenue per hundredweight up 8.2%, operating revenue up 14.3%
- New leadership at YRC National; organization changes at parent company and shared services

OVERLAND PARK, Kan., Nov. 4, 2011 /PRNewswire/ -- YRC Worldwide Inc. (NASDAQ: YRCW) today reported financial results for the third quarter of 2011.

Consolidated operating revenue for the third quarter of 2011 was $1.276 billion, up 12.3% over 2010, and consolidated operating loss was $24 million, which included $12 million of restructuring professional fees and a $15 million non-cash charge for union employee equity awards. As a comparison, the company reported consolidated operating revenue of $1.137 billion for the third quarter of 2010 and a consolidated operating loss of $19 million, which included $7 million of restructuring professional fees.

The company also reported positive operating cash flow for the third quarter of 2011 of $9 million and gross capital expenditures of $14 million resulting in free cash flow usage of $5 million, which included $12 million of restructuring professional fees.  As a comparison, the company generated free cash flow for the third quarter of 2010 of $3 million which included $7 million of restructuring professional fees.  

As previously announced, Jeff Rogers, formerly president of Holland, was named president of YRC, Mike Naatz, formerly chief customer officer of YRC Worldwide, has been named president of Holland, and Jamie Pierson has been named executive vice president and chief financial officer of YRC Worldwide.  The enterprise-wide shared services functions, largely supporting YRC, now report directly to Jeff Rogers as we have redeployed the specific shared services resources supporting the regional companies back to each operating company. This change in organization structure is designed to dramatically improve the alignment of critical sales and marketing, human resources, customer service and operational support functions with each operating company's delivery of services to customers and provide greater autonomy for each operating company. The streamlined parent company will consist primarily of the traditional corporate financial and legal functions.  

"I wish to express my personal thanks to Jeff Rogers for leading the Holland recovery, and look forward to his leadership impact at YRC," said James Welch, chief executive officer of YRC Worldwide.  "We are pleased with the continued year-over-year growth in business volumes as we seek to change the culture of the company and transition to new leadership. The leadership changes at the parent company and YRC, together with the redeployment of our shared services functions, are all designed to position the company for improved operating results from an increased focus on the delivery of consistently reliable service to our customers," stated Welch.

At September 30, 2011, the company's cash and cash equivalents were $163 million and availability under its new multi-year, $400 million asset-based loan (‘ABL') was $116 million for total liquidity of $279 million. As a comparison, the company's cash, cash equivalents and unrestricted availability under its lending facilities was $173 million at June 30, 2011.

"With our 12.3% revenue increase, our working capital continues to be well managed as demonstrated by the 38.5 days-sales-outstanding for consolidated receivables, which is about one day better than third quarter a year ago," stated Jamie Pierson, chief financial officer of YRC Worldwide. "The unused availability from the new $400 million ABL facility provides important liquidity to support our working capital needs which are driven by seasonality and our year-over-year revenue growth."

In addition, the company reported a net loss of $120 million for the third quarter of 2011. The third quarter 2011 net loss includes a $79 million non-cash charge related to fair value adjustments for the derivative instruments embedded in the $140 million Series A notes and $100 million Series B notes due 2015 (‘2015 convertible notes'). As a comparison, the company reported a net loss of $62 million for the third quarter of 2010.

Key Segment Information

Third quarter 2011 compared to the third quarter of 2010:

  • YRC National Transportation operating revenues up 11.5% to $841.6 million, adjusted operating ratio improved by 70 basis points to 100.9, tons per day up 4.2%, shipments per day up 5.5%, revenue per hundredweight up 7.5% and revenue per shipment up 6.2%.
  • Regional Transportation operating revenues up 14.3% to $404.8 million, adjusted operating ratio improved by 180 basis points to 95.2, tons per day up 5.6%, shipments per day up 3.6%, revenue per hundredweight up 8.2% and revenue per shipment up 10.4%.

Equity Conversion

As a result of approvals received at a special meeting of shareholders on September 16, 2011, the company's authorized common shares were increased from 80 million to 10 billion.  The increase in authorized common shares allowed approximately 5 million shares of outstanding preferred stock to automatically convert to approximately 1.9 billion common shares, as compared to the approximately 48 million common shares outstanding prior to the September 16, 2011 shareholder meeting. In addition to the 1.9 billion outstanding common shares, approximately 4.1 billion of the newly authorized common shares were reserved for issuance upon conversion of the 2015 convertible notes.  

NASDAQ

As previously announced, the NASDAQ Hearings Panel (the "Panel") granted the company's request to remain listed on the NASDAQ. In accordance with the terms of the Panel's decision, the company must implement a reverse stock split and demonstrate a closing bid price for its common stock above $1.00 per share for ten consecutive trading days on or before December 31, 2011.  The company is seeking approval from shareholders for a reverse stock split at its 2011 annual meeting of shareholders scheduled to be held November 30, 2011, with the ratio and timing of implementation of the reverse stock split at the discretion of the company's board of directors.

Review of Financial Results

YRC Worldwide Inc. will host a conference call with the investment community today, Friday, November 4, 2011, beginning at 9:30am ET, 8:30am CT.  The conference call will be available to listeners via the YRC Worldwide website yrcw.com.  An audio playback will be available after the call also via the YRC Worldwide website.

Certain Non-GAAP Financial Measures

Adjusted operating income (loss) is a non-GAAP measure that reflects the company's operating income before letter of credit fees, certain union employee equity-based compensation expense, net gains or losses on property disposals, and certain other items including restructuring professional fees and results of permitted dispositions.  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 and adjusted operating income (loss) are used for internal management purposes as financial measures that reflect the company's core operating performance. In addition, management uses adjusted EBITDA to measure compliance with financial covenants in the company's credit agreement. Free cash flow and adjusted free cash flow are non-GAAP measures that reflect the company's operating cash flow minus gross capital expenditures and operating cash flow minus gross capital expenditures, excluding the restructuring costs included in operating cash flow, respectively. However, these financial measures should not be construed as better measurements than operating income, operating cash flow, net income or earnings per share, as defined by generally accepted accounting principles.  

Adjusted operating income (loss), adjusted EBITDA and adjusted free cash flow have the following limitations:

  • Adjusted operating income (loss) and adjusted EBITDA do not reflect the interest expense or the cash requirements necessary to fund restructuring professional fees, letter of credit fees, 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 operating income (loss) and adjusted EBITDA exclude either certain union employee equity-based compensation expense or all of it as an expense, respectively, when presenting our ongoing operating performance for a particular period;
  • Adjusted free cash flow excludes the cash usage by the company's restructuring activities, debt issuance costs, equity issuance costs and principal payments on our outstanding debt and the resulting reduction in the company's liquidity position from those cash outflows.
  • Other companies in our industry may calculate adjusted operating income (loss), adjusted EBITDA and adjusted free cash flow differently than we do, limiting their usefulness as a comparative measure.

Because of these limitations, adjusted operating income (loss), adjusted EBITDA, free cash flow and adjusted free cash flow 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 adjusted operating income (loss), adjusted EBITDA, free cash flow and adjusted free cash flow as secondary measures.  The company has provided reconciliations of its non-GAAP measures (adjusted operating income (loss), adjusted EBITDA, free cash flow and adjusted free cash flow) to GAAP measures within the supplemental financial information in this release.

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 and Section 21E of the Exchange Act. The words "would," "anticipate," "expect," "believe," "intend," and similar expressions are intended to identify forward-looking statements. The company's future results could differ materially from any results projected in such forward-looking statements because of a number of factors, including (among others), the effect the restructuring may have on the company's customers' willingness to ship their products on the company's transportation network, the company's ability to generate sufficient cash flows and liquidity to fund operations, which raises substantial doubt about the company's 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, including the company's Annual Report on Form 10-K for the year ended December 31, 2010, Quarterly Report on Form 10-Q for the three months ended March 31, 2011 and Quarterly Report on Form 10-Q for the three months ended June 30, 2011.

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 continuation of the wage, benefit and work rule concessions under the company's modified labor agreement and the factors identified in the preceding paragraph.

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, Holland, Reddaway, New Penn and Glen Moore, and provides China-based services through its Jiayu and JHJ joint ventures. YRC Worldwide has one of the largest, most comprehensive less-than-truckload (LTL) networks 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.

Web site: www.yrcw.com

Follow YRC Worldwide on Twitter: http://twitter.com/yrcworldwide

Investor Contact: Paul Liljegren
913-696-6108
paul.liljegren@yrcw.com

Media Contact: Suzanne Dawson
Linden, Alschuler & Kaplan
212-329-1420
sdawson@lakpr.com

CONSOLIDATED BALANCE SHEETS

YRC Worldwide Inc. and Subsidiaries

(Amounts in thousands except share data)
















September 30,


December 31,




2011


2010

ASSETS


(Unaudited)









CURRENT ASSETS:





Cash and cash equivalents

$       162,814


$      143,017


Accounts receivable, net

546,580


442,500


Prepaid expenses and other

183,992


182,515


Restricted amounts held in escrow

64,680


-



Total current assets

958,066


768,032







PROPERTY AND EQUIPMENT:





Cost


3,144,679


3,237,971


Less - accumulated depreciation

(1,733,523)


(1,687,397)



Net property and equipment

1,411,156


1,550,574







OTHER ASSETS:





Intangibles, net

124,828


139,525


Restricted amounts held in escrow

93,805


-


Other assets

96,741


134,802



Total assets

$    2,684,596


$   2,592,933



















LIABILITIES AND SHAREHOLDERS' DEFICIT




CURRENT LIABILITIES:





Accounts payable

$       145,932


$      147,112


Wages, vacations, and employees' benefits

231,088


196,486


Other current and accrued liabilities

304,990


452,226


Current maturities of long-term debt

9,513


222,873



Total current liabilities

691,523


1,018,697







OTHER LIABILITIES:





Long-term debt, less current portion

1,331,585


837,262


Deferred income taxes, net

104,892


118,624


Pension and post retirement

445,268


447,928


Claims and other liabilities

374,006


360,439


Commitments and contingencies










SHAREHOLDERS' DEFICIT:





Cumulative Preferred stock, $1.00 par value per share - authorized 5,000,000






Series A Preferred stock, shares issued 1 and 0, liquidation preference $1 and $0

-


-



Series B Preferred stock, shares issued 0 and 0, liquidation preference $0 and $0

-


-


Common stock, $0.01 par value per share — authorized 10,000,000,000






and 80,000,000 shares, issued 1,938,233,000 and 47,684,000 shares

19,382


477


Capital surplus

1,875,874


1,643,277


Accumulated deficit

(1,821,294)


(1,499,514)


Accumulated other comprehensive loss

(241,271)


(239,626)


Treasury stock, at cost (123,000 shares)

(92,737)


(92,737)



Total YRC Worldwide Inc. shareholders' deficit

(260,046)


(188,123)



Non-controlling interest

(2,632)


(1,894)



  Total shareholders' deficit

(262,678)


(190,017)



Total liabilities and shareholders' deficit

$    2,684,596


$   2,592,933



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




2011


2010


2011


2010











OPERATING REVENUE

$ 1,276,418


$ 1,136,836


$ 3,656,516


$ 3,243,081











OPERATING EXPENSES:









Salaries, wages and employees' benefits

726,777


683,034


2,112,222


2,017,046


Equity based compensation expense

15,443


2,211


14,795


30,540


Operating expenses and supplies

304,177


235,222


888,707


716,011


Purchased transportation

142,241


122,882


402,681


337,784


Depreciation and amortization

46,203


49,785


143,056


150,491


Other operating expenses

76,049


65,967


212,904


186,471


(Gains) losses on property disposals, net

(10,790)


(3,429)


(21,026)


3,183


Impairment charges

-


-


-


5,281



Total operating expenses

1,300,100


1,155,672


3,753,339


3,446,807

OPERATING LOSS

(23,682)


(18,836)


(96,823)


(203,726)











NONOPERATING (INCOME) EXPENSES:









Interest expense

37,679


43,922


116,551


126,234


Equity investment impairment

-


-


-


12,338


Fair value adjustment of derivative liabilities

79,221


-


79,221


-


(Gain) loss on extinguishment of debt, net

(26,035)


1,935


(25,212)


1,935


Restructuring transaction costs

17,783


-


17,783


-


Other, net

(3,588)


(976)


(4,445)


(5,767)



Nonoperating expenses, net

105,060


44,881


183,898


134,740











LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

(128,742)


(63,717)


(280,721)


(338,466)

INCOME TAX BENEFIT

(8,658)


(3,794)


(15,785)


(9,448)

NET LOSS FROM CONTINUING OPERATIONS

(120,084)


(59,923)


(264,936)


(329,018)

NET LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX

-


(2,514)


-


(17,876)

NET LOSS

(120,084)


(62,437)


(264,936)


(346,894)

LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST

(267)


(696)


(1,204)


(1,543)

  NET LOSS ATTRIBUTABLE TO YRC WORLDWIDE INC.

$  (119,817)


$    (61,741)


$  (263,732)


$  (345,351)

AMORTIZATION OF BENEFICIAL CONVERSION FEATURE ON PREFERRED STOCK

(58,048)


-


(58,048)


-

  NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS

$  (177,865)


$    (61,741)


$  (321,780)


$  (345,351)











AVERAGE COMMON SHARES OUTSTANDING-BASIC AND DILUTED

351,821


46,530


150,185


36,930











BASIC AND DILUTED LOSS PER SHARE








LOSS FROM CONTINUING OPERATIONS

$        (0.51)


$        (1.27)


$        (2.14)


$        (8.87)

LOSS FROM DISCONTINUED OPERATIONS

-


(0.06)


-


(0.48)

NET LOSS PER SHARE

$        (0.51)


$        (1.33)


$        (2.14)


$        (9.35)











Amounts attributable to YRC Worldwide Inc. common shareholders:








Loss from continuing operations, net of tax

$  (119,817)


$    (59,227)


$  (263,732)


$  (327,475)

Loss from discontinued operations, net of tax

-


(2,514)


-


(17,876)



Net loss

$  (119,817)


$    (61,741)


$  (263,732)


$  (345,351)



STATEMENTS OF CONSOLIDATED CASH FLOWS

YRC Worldwide Inc. and Subsidiaries

For the Nine Months Ended September 30

(Amounts in thousands)

(Unaudited)
















2011


2010







OPERATING ACTIVITIES:





Net loss

$           (264,936)


$           (346,894)


Noncash items included in net loss:






Depreciation and amortization

143,056


155,444



Equity based compensation expense

14,795


30,540



Impairment charges

-


17,619



Gain on sale of affiliate

-


(638)



(Gain) loss on extinguishment of debt

(25,212)


1,935



Fair value adjustment of derivative liabilities

79,221


-



(Gains) losses on property disposals, net

(21,026)


4,583



Deferred income tax benefit, net

(1,269)


(9,963)



Amortization of deferred debt costs

22,627


35,697



Paid-in-kind interest on Series A Notes and Series B Notes

5,126


-



Other noncash items, net

(3,395)


(4,368)


Restructuring transaction costs

17,783


-


Changes in assets and liabilities, net:






Accounts receivable

(104,454)


(37,635)



Accounts payable

(1,003)


(3,367)



Other operating assets

(16,952)


74,538



Other operating liabilities

102,857


73,184



Net cash used in operating activities

(52,782)


(9,325)







INVESTING ACTIVITIES:





Acquisition of property and equipment

(36,083)


(12,935)


Proceeds from disposal of property and equipment

43,356


71,343


Deposits into restricted escrow

(158,485)


-


Disposition of affiliate, net of cash sold

-


22,883


Other

3,463


5,223



Net cash provided by (used in) investing activities

(147,749)


86,514







FINANCING ACTIVITIES:





ABS borrowings, net

(122,788)


(23,497)


Issuance of long-term debt

411,602


153,458


Repayment of long-term debt

(36,466)


(187,858)


Debt issuance costs

(30,472)


(12,713)


Equity issuance costs

(1,548)


(17,323)


Equity issuance proceeds

-


15,906


Stock issued in connection with the 6% notes

-


11,994



Net cash provided by (used in) financing activities

220,328


(60,033)

NET INCREASE IN CASH AND CASH EQUIVALENTS

19,797


17,156

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

143,017


97,788

CASH AND CASH EQUIVALENTS, END OF PERIOD

$             162,814


$             114,944







SUPPLEMENTAL CASH FLOW INFORMATION




Interest paid  

$             (44,827)


$             (31,947)

Income tax (payment) refund, net

(1,288)


83,035

Pension contribution deferral transfer to debt

-


4,361

Lease financing transactions

8,985


29,613

Deferred interest and fees converted to equity

43,164


-

Interest paid in stock for the 6% Notes

2,082


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



2011


2010


%


2011


2010


%














Operating revenue:













YRC National Transportation

$  841,561


$  755,017


11.5


$ 2,398,538


$ 2,159,719


11.1


Regional Transportation

404,811


354,182


14.3


1,172,568


1,014,834


15.5


Truckload

25,998


28,841


(9.9)


76,719


83,942


(8.6)


Other, net of eliminations

4,048


(1,204)




8,691


(15,414)




Consolidated

1,276,418


1,136,836


12.3


3,656,516


3,243,081


12.7














Operating income (loss):













YRC National Transportation

(14,279)


(16,377)




(58,550)


(151,515)




Regional Transportation

12,430


9,935




25,986


(2,929)




Truckload

(2,689)


(2,191)




(10,280)


(6,999)




Corporate and other

(19,144)


(10,203)




(53,979)


(42,283)




Consolidated

$  (23,682)


$  (18,836)




$    (96,823)


$  (203,726)
















Operating ratio:













YRC National Transportation

101.7%


102.2%




102.4%


107.0%




Regional Transportation

96.9%


97.2%




97.8%


100.3%




Truckload

110.3%


107.6%




113.4%


108.3%




Consolidated

101.9%


101.7%




102.6%


106.3%

















Operating ratio is calculated as 100 (i) minus the result of dividing operating income by operating revenue or (ii) plus the result of dividing operating loss by operating revenue, and expressed as a percentage.














SUPPLEMENTAL INFORMATION


























As of September 30, 2011



Premium/


Book








(in millions)

Par Value


(Discount)


Value








Restructured term loan

$      304.8


$      107.0


$    411.8








ABL facility — Term A - (capacity $175M; borrowing base $146M; availability $116M)

30.0


(8.3)


21.7








ABL facility — Term B

225.0


(13.3)


211.7








Series A notes

142.7


(36.4)


106.3








Series B notes

100.8


(40.4)


60.4








6% convertible senior notes

69.4


(11.1)


58.3








Pension contribution deferral obligations

147.5


(0.6)


146.9








Lease financing obligations

321.7


-


321.7








5.0% and 3.375% contingent convertible senior notes

1.9


-


1.9








Other

0.4


-


0.4








  Total debt

$   1,344.2


$        (3.1)


$ 1,341.1















































As of December 31, 2010



Premium/


Book








(in millions)

Par Value


(Discount)


Value








Revolving credit facility (capacity $713.7)

$      142.9


$             -


$    142.9








Term loan

257.1


0.7


257.8








ABS borrowings, secured by accounts receivable (capacity $325.0)

122.8


-


122.8








6% convertible senior notes

69.4


(13.3)


56.1








Pension contribution deferral obligations

139.1


-


139.1








Lease financing obligations

338.4


-


338.4








5.0% and 3.375% contingent convertible senior notes

1.9


-


1.9








Other

1.1


-


1.1








  Total debt

$   1,072.7


$      (12.6)


$ 1,060.1









SUPPLEMENTAL FINANCIAL INFORMATION

YRC Worldwide Inc. and Subsidiaries

For the Three and Nine Months Ended September 30

(Amounts in thousands)

(Unaudited)













Three months


Nine months



2011


2010


2011


2010


Operating revenue

$ 1,276,418


$ 1,136,836


$ 3,656,516


$ 3,243,081


Adjusted operating ratio

99.6%


100.6%


100.9%


103.6%











Reconciliation of operating loss to adjusted EBITDA:









Operating loss

$    (23,682)


$    (18,836)


$    (96,823)


$  (203,726)


(Gains) losses on property disposals, net

(10,790)


(3,429)


(21,026)


3,183


Impairment charges

-


-


-


5,281


Union equity awards

14,884


-


14,884


24,995


Letter of credit expense

9,343


8,321


25,607


24,943


Restructuring professional fees, included in operating income

12,385


6,594


37,825


28,081


Permitted dispositions and other

3,318


-


6,514


-


Adjusted operating income (loss)

5,458


(7,350)


(33,019)


(117,243)











Depreciation and amortization

46,203


49,785


143,056


150,491


Equity based compensation (benefit) expense

559


2,211


(89)


5,545


Restructuring professional fees, included in nonoperating income

200


179


1,915


585


Reimer Finance Co. dissolution (foreign exchange)

-


-


-


5,540


  Other nonoperating, net

3,617


928


4,495


1,421


Adjusted EBITDA

$      56,037


$      45,753


$    116,358


$      46,339






























Three months


Nine months


Adjusted EBITDA by segment:

2011


2010


2011


2010


  YRC National Transportation

$      17,814


$      14,372


$      33,693


$    (22,903)


  Regional Transportation

34,851


26,958


78,893


61,690


  Truckload

(537)


34


(3,394)


(18)


  Corporate and other

3,909


4,389


7,166


7,570


Adjusted EBITDA

$      56,037


$      45,753


$    116,358


$      46,339





























Reconciliation of Adjusted EBITDA to adjusted free cash flow:

Three months


Nine months



2011


2010


2011


2010


Adjusted EBITDA

$      56,037


$      45,753


$    116,358


$      46,339


Total restructuring professional fees

(12,585)


(6,773)


(39,740)


(28,666)


Permitted dispositions and other not included in adjusted EBITDA

-


1,348


-


(8,210)


Cash paid for interest

(23,971)


(11,009)


(44,827)


(31,947)


Cash paid for letter of credit fees

(7,224)


-


(7,224)


-


Working capital cash flows excluding income tax, net

(2,076)


(23,919)


(76,061)


(69,876)


Net cash provided by (used in) operating activities before income taxes

10,181


5,400


(51,494)


(92,360)


Cash (paid) received for income taxes, net

(1,622)


(253)


(1,288)


83,035


Net cash provided by (used in) operating activities

8,559


5,147


(52,782)


(9,325)


Acquisition of property and equipment

(13,370)


(2,080)


(36,083)


(12,935)


Free cash flow (deficit)

(4,811)


3,067


(88,865)


(22,260)


Total restructuring professional fees

12,585


6,773


39,740


28,666


Adjusted free cash flow (deficit)

$        7,774


$        9,840


$    (49,125)


$        6,406




















Adjusted operating ratio is calculated as 100 (i) minus the result of dividing adjusted operating income by operating revenue or (ii) plus the result of dividing adjusted operating loss by operating revenue, and expressed as a percentage.



SUPPLEMENTAL FINANCIAL INFORMATION

YRC Worldwide Inc. and Subsidiaries

For the Three and Nine Months Ended September 30

(Amounts in thousands)

(Unaudited)





Three months


Nine months


YRC National Transportation segment

2011


2010


2011


2010


Operating Revenue

$ 841,561


$ 755,017


$ 2,398,538


$ 2,159,719


Adjusted operating ratio

100.9%


101.6%


101.9%


105.1%











Reconciliation of operating loss to adjusted EBITDA:









Operating loss

$ (14,279)


$ (16,377)


$    (58,550)


$  (151,515)


(Gains) losses on property disposals, net

(10,999)


(2,404)


(16,997)


(102)


Impairment charges

-


-


-


3,281


Union equity awards

9,955


-


9,955


18,794


Letter of credit expense

7,493


6,456


20,287


19,368


Adjusted operating loss

(7,830)


(12,325)


(45,305)


(110,174)











Depreciation and amortization

24,153


26,799


76,550


80,628


Reimer Finance Co. dissolution (foreign exchange)

-


-


-


5,540


  Other nonoperating, net

1,491


(102)


2,448


1,103


Adjusted EBITDA

$   17,814


$   14,372


$      33,693


$    (22,903)











Adjusted EBITDA as % of operating revenue

2.1%


1.9%


1.4%


-1.1%






























Three months


Nine months


Regional Transportation segment

2011


2010


2011


2010


Operating Revenue

$ 404,811


$ 354,182


$ 1,172,568


$ 1,014,834


Adjusted operating ratio

95.2%


97.0%


97.2%


98.7%











Reconciliation of operating income (loss) to adjusted EBITDA:









Operating income (loss)

$   12,430


$     9,935


$      25,986


$      (2,929)


(Gains) losses on property disposals, net

180


(1,086)


(3,186)


3,044


Impairment charges

-


-


-


2,000


Union equity awards

4,929


-


4,929


6,089


Letter of credit expense

1,715


1,744


4,933


5,174


Adjusted operating income

19,254


10,593


32,662


13,378











Depreciation and amortization

15,499


15,960


46,102


47,890


  Other nonoperating, net

98


405


129


422


Adjusted EBITDA

$   34,851


$   26,958


$      78,893


$      61,690











Adjusted EBITDA as % of operating revenue

8.6%


7.6%


6.7%


6.1%




















Adjusted operating ratio is calculated as 100 (i) minus the result of dividing adjusted operating income by operating revenue or (ii) plus the result of dividing adjusted operating loss by operating revenue, and expressed as a percentage.



SUPPLEMENTAL FINANCIAL INFORMATION

YRC Worldwide Inc. and Subsidiaries

For the Three and Nine Months Ended September 30

(Amounts in thousands)

(Unaudited)













Three months


Nine months


Truckload segment

2011


2010


2011


2010


Operating Revenue

$  25,998


$  28,841


$  76,719


$  83,942


Adjusted operating ratio

110.0%


107.3%


112.9%


107.9%











Reconciliation of operating loss to adjusted EBITDA:









Operating loss

$   (2,689)


$   (2,191)


$ (10,280)


$   (6,999)


(Gains) losses on property disposals, net

1


-


142


42


Union equity awards

-   


-


-


111


Letter of credit expense

87


72


248


244


Adjusted operating loss

(2,601)


(2,119)


(9,890)


(6,602)











Depreciation and amortization

2,064


2,152


6,496


6,583


  Other nonoperating, net

-


1


-


1


Adjusted EBITDA

$      (537)


$         34


$   (3,394)


$        (18)











Adjusted EBITDA as % of operating revenue

-2.1%


0.1%


-4.4%


0.0%






































Corporate and other segment

Three months


Nine months



2011


2010


2011


2010


Reconciliation of operating loss to adjusted EBITDA:









Operating loss

$ (19,144)


$ (10,203)


$ (53,979)


$ (42,283)


(Gains) losses on property disposals, net

27


61


(986)


199


Letter of credit expense

49


49


140


157


Restructuring professional fees, included in operating income

12,385


6,594


37,825


28,081


Permitted dispositions and other

3,318


-


6,514


-


Adjusted operating loss

(3,365)


(3,499)


(10,486)


(13,846)











Depreciation and amortization

4,487


4,874


13,908


15,390


Equity based compensation (benefit) expense

559


2,211


(89)


5,545


Restructuring professional fees, included in nonoperating income

200


179


1,915


585


  Other nonoperating, net

2,028


624


1,918


(104)


Adjusted EBITDA

$    3,909


$    4,389


$    7,166


$    7,570




















Adjusted operating ratio is calculated as 100 (i) minus the result of dividing adjusted operating income by operating revenue or (ii) plus the result of dividing adjusted operating loss by operating revenue, and expressed as a percentage.



YRC Worldwide Inc.

Segment Statistics

(amounts in thousands except workdays and per unit data)
































YRC National Transportation








Y/Y


Sequential


3Q11


3Q10


2Q11


%


%

Workdays

64.0


64.0


63.5















Total revenue(a)

$      836,568


$      746,768


$      821,611


12.0


1.8

Total tonnage

1,822


1,747


1,820


4.2


0.1

Total tonnage per day

28.46


27.30


28.66


4.2


(0.7)

Total shipments

3,166


3,001


3,139


5.5


0.9

Total shipments per day

49.47


46.89


49.44


5.5


0.1

Total revenue/cwt.

$          22.96


$          21.37


$          22.57


7.5


1.7

Total revenue/shipment

$             264


$             249


$             262


6.2


1.0

Total weight/shipment

1,151


1,165


1,159


(1.2)


(0.7)

Total Length of Haul

1,273


1,251


1,253


1.8


1.6











Reconciliation of operating revenue to total picked up revenue:







Operating revenue

$      841,561


$      755,017


$      826,933





Change in revenue deferral and other

(4,993)


(8,249)


(5,322)





Total picked up revenue

$      836,568


$      746,768


$      821,611




































Regional Transportation








Y/Y


Sequential


3Q11


3Q10


2Q11


%


%

Workdays

63.0


63.0


63.5















Total picked up revenue(a)

$      404,825


$      354,197


$      402,063


14.3


0.7

Total tonnage

1,831


1,734


1,850


5.6


(1.0)

Total tonnage per day

29.07


27.52


29.14


5.6


(0.2)

Total shipments

2,551


2,463


2,556


3.6


(0.2)

Total shipments per day

40.49


39.10


40.25


3.6


0.6

Total revenue/cwt.

$          11.05


$          10.21


$          10.86


8.2


1.7

Total revenue/shipment

$             159


$             144


$             157


10.4


0.9

Total weight/shipment

1,436


1,408


1,448


2.0


(0.8)

Total Length of Haul

419


417


419


0.4


(0.1)











Reconciliation of operating revenue to total picked up revenue:







Operating revenue

$      404,811


$      354,182


$      401,688





Change in revenue deferral and other

14


15


375





Total picked up revenue

$      404,825


$      354,197


$      402,063

























(a) Does not equal financial statement revenue due to revenue recognition adjustments between accounting periods.




SOURCE YRC Worldwide

News Provided by Acquire Media


Close window | Back to top

Copyright 2017 YRC Worldwide Inc.