October 27, 2016

YRC Worldwide Reports Third Quarter 2016 Results

Results include Operating Income of $38.8 million and Adjusted EBITDA of $85.5 million

OVERLAND PARK, Kan., Oct. 27, 2016 (GLOBE NEWSWIRE) -- YRC Worldwide Inc. (NASDAQ:YRCW) reported consolidated operating revenue for third quarter 2016 of $1.221 billion and consolidated operating income of $38.8 million, which included a $0.2 million loss on property disposals. As a comparison, the Company reported consolidated operating revenue of $1.245 billion for the third quarter 2015 and consolidated operating income of $47.7 million, which included a $0.9 million loss on property disposals.

Financial Highlights

  • On a non-GAAP basis, the Company generated Adjusted EBITDA of $85.5 million in third quarter 2016 for a consolidated Adjusted EBITDA margin of 7.0% and a $13.6 million decrease compared to the $99.1 million of Adjusted EBITDA reported in the prior year comparable quarter (as detailed in the reconciliation below).
     
  • Last twelve month (LTM) Adjusted EBITDA is $305.8 million for a consolidated Adjusted EBITDA margin of 6.5%, and a decrease of $38.5 million from the $344.3 million of LTM Adjusted EBITDA in third quarter 2015.
     
  • The total debt-to-Adjusted EBITDA ratio for third quarter 2016 was 3.45 times compared to 3.15 times for third quarter 2015. This complies with the 3.75 maximum total leverage ratio covenant as of September 30, 2016 under the Company's term loan credit agreement.
     
  • Reinvestment in the business continued during third quarter 2016 with $28.1 million in capital expenditures and new operating leases for revenue equipment with a capital value equivalent of $44.1 million. The total of $72.2 million is equal to 5.9% of operating revenue for the quarter and represents a $10.1 million increase over the $62.1 million in third quarter 2015. Tractors, trailers and technology were the primary investments during the quarter.

Operational Highlights

  • The consolidated operating ratio for third quarter 2016 was 96.8 compared to 96.2 for the same period in 2015.  YRC Freight improved its reported operating ratio by 60 basis points to 97.3.  The improvement at YRC Freight was more than offset by a decline of 250 basis points at the Regional segment with a reported operating ratio of 95.1 for third quarter 2016.
     
  • Third quarter 2016 tonnage per day decreased 1.3% at YRC Freight and 1.5% at the Regional segment compared to third quarter 2015.
     
  • At YRC Freight, excluding fuel surcharge, third quarter 2016 revenue per shipment increased 1.3% and revenue per hundredweight increased by 0.3% when compared to the same period in 2015. Including fuel surcharge, revenue per shipment decreased 0.4% and revenue per hundredweight decreased by 1.4%.
     
  • At the Regional segment, excluding fuel surcharge, third quarter 2016 revenue per shipment increased 0.3% and revenue per hundredweight increased by 1.5% compared to the third quarter 2015. Including fuel surcharge, revenue per shipment decreased 0.9% and revenue per hundredweight increased 0.3%.
     
  • Third quarter 2016 liability claims expense and workers compensation expense were comparable to third quarter 2015.

 Liquidity Update

  • At September 30, 2016, the company had cash, cash equivalents and Managed Accessibility (as defined in the company's most recently filed periodic reports on Forms 10-K and 10-Q) under its ABL facility totaling $290.1 million, an increase of $45.3 million compared to $244.8 million as of September 30, 2015.
     
  • For the nine months ended September 30, 2016, cash provided by operating activities was $86.0 million compared to $91.5 million for the nine months ended September 30, 2015.

"Our third quarter 2016 financial results were impacted by the soft industrial backdrop and lower fuel surcharge revenue compared to a year ago," said James Welch, chief executive office at YRC Worldwide. "Year-over-year tonnage per day was down during the quarter although it was the smallest decline at YRC Freight and the Regional segment in several quarters. We continue to believe pricing discipline in the LTL sector remains steady despite the near-term headwinds," stated Welch.

"We are managing through the current state of the economy by continuing to invest in technology and revenue equipment while focusing on actions that position our Company well for the long-term such as customer service and enhancing safety," Welch continued. "We recently opened a new terminal in the Atlanta region, adding to our extensive networks. The new YRC Freight facility has strengthened our customer service in the Southeast Region. Following the recent installations of the in-cab safety technology, we are seeing a reduction in the type of accidents at YRC Freight, Holland, Reddaway and New Penn that these investments were designed to prevent. Other significant technology investments that we are making include driver handheld units and Optym load plan and Quintiq route optimization solutions. We plan to continue making disciplined and strategic investments to meet our commitment to be best in class in safety and customer service.

"We believe the investments that we are making in the Company combined with our highly-experienced employees, comprehensive North American coverage and tremendous asset base position us well for a stronger freight environment," concluded Welch.

Key Segment Information - third quarter 2016 compared to third quarter 2015


YRC Freight
  
2016
   
2015
  Percent
Change
Workdays  64.0    64.0   
Operating revenue (in millions) $  777.9  $  789.2     (1.4)%
Operating income (in millions) $   20.8  $   16.7     24.6 %
Operating ratio  97.3   97.9     0.6 pp
Total tonnage per day (in thousands)  25.31   25.64     (1.3)%
Total shipments per day (in thousands)  41.84   42.82     (2.3)%
Total picked up revenue per hundredweight incl FSC $  23.57  $  23.90     (1.4)%
Total picked up revenue per hundredweight excl FSC
 $
21.31  $
21.24     0.3 %
Total picked up revenue per shipment incl FSC $285  $286     (0.4
)
%
Total picked up revenue per shipment excl FSC  $258  $254     1.3 %
Total weight/shipment (in pounds)  1,210   1,198     1.0 %

       
       


Regional Transportation
  
2016
   
2015
  Percent
Change
Workdays  63.0   64.0   
Operating revenue (in millions) $  443.7  $ 455.7     (2.6)%
Operating income (in millions) $   21.9  $   33.6     (34.8)%
Operating ratio  95.1   92.6     (2.5)pp
Total tonnage per day (in thousands)  30.38   30.85     (1.5)%
Total shipments per day (in thousands)  41.62   41.76     (0.3)%
Total picked up revenue per hundredweight incl FSC  $  11.58  $ 11.55     0.3 %
Total picked up revenue per hundredweight excl FSC
 $10.48  $10.32     1.5 %
Total picked up revenue per shipment incl FSC $169  $ 171     (0.9
)
%
Total picked up revenue per shipment excl FSC $153  $153     0.3 %
Total weight/shipment (in pounds)  1,460   1,478     (1.2
)
%


Review of Financial Results

YRC Worldwide Inc. will host a conference call with the investment community today, Thursday, October 27, 2016, beginning at 4:30 p.m. ET, 3:30 p.m. CT

A live audio webcast of the conference call and presentation slides will be available on YRC Worldwide Inc.'s website yrcw.com.  A replay of the webcast will also be available at 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 (defined in our credit facilities as Consolidated 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, restructuring professional fees, nonrecurring consulting fees, expenses associated with certain lump sum payments to our International Brotherhood of Teamster employees and gains or losses from permitted dispositions and discontinued operations, among other items as defined in the company's credit facilities. 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 the company's credit facilities and to pay certain executive bonus compensation.  However, these financial measures should not be construed as better measurements than net income, as defined by generally accepted accounting principles (GAAP).

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 fund restructuring professional fees, nonrecurring consulting fees, letter of credit fees, service interest or principal payments on our outstanding debt or fund our lump sum payments to our IBT employees required under the ratified Memorandum of Understanding;
  • 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, although Adjusted EBITDA excludes certain employee equity-based compensation expense when presenting our ongoing operating performance for a particular period;
  • Other companies in our industry may calculate Adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure.

Because of these limitations, EBITDA and Adjusted EBITDA 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 EBITDA and Adjusted EBITDA as secondary measures.  The company has provided reconciliations of its non-GAAP measures, EBITDA and Adjusted EBITDA, to GAAP net income 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," "should," "may," "project," "forecast," "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) our ability to generate sufficient cash flows and liquidity to fund operations and satisfy our cash needs and future cash commitments, including (without limitation) our obligations related to our indebtedness (including compliance with scheduled increases in financial performance related debt covenants) and lease and pension funding requirements; our ability to amend our term loan credit facility to obtain covenant relief, if necessary, which would be largely outside of our control; the success of our management team in continuing with its strategic plan and operational and productivity improvements, including (without limitation) our continued ability to meet quality delivery performance standards, and our ability to increase volume and yield and the impact of those improvements to meet our future liquidity and profitability; the uncertainty in the overall economy; our ability to finance the maintenance, acquisition and replacement of revenue equipment and other necessary capital expenditures; our dependence on our information technology systems in our network operations and the production of accurate information, as well as the risk of system failure, inadequacy or security breach; changes in equity and debt markets; inclement weather; price of fuel; sudden 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; competition and competitive pressure on pricing; expense volatility, including (without limitation) volatility due to changes in purchased transportation service or pricing for purchased transportation; our ability to comply and the cost of compliance with federal, state, local and foreign laws and regulations, including (without limitation) laws and regulations for the protection of employee safety and health and the environment, as well as state and federal labor laws; terrorist attack; labor relations, including (without limitation) our ability to attract and retain qualified drivers, the continued support of our union employees with respect to our strategic plan, the impact of work rules, work stoppages, strikes or other disruptions, our obligations to multi-employer health, welfare and pension plans, wage requirements and employee satisfaction; the impact of claims and litigation to which we are or may become exposed; and other risks and contingencies, including (without limitation) the risk factors that are included in our reports filed with the SEC, including those described under "Risk Factors" in our annual report on Form 10-K and quarterly reports on Form 10-Q.

About YRC Worldwide

YRC Worldwide Inc., headquartered in Overland Park, Kan., is the holding company for a portfolio of less-than-truckload (LTL) companies including YRC Freight, YRC Reimer, Holland, Reddaway, and New Penn. Collectively, YRC Worldwide companies have one of the largest, most comprehensive LTL networks in North America with local, regional, national and international capabilities. Through their teams of experienced service professionals, YRC Worldwide companies offer industry-leading expertise in flexible supply chain solutions, ensuring customers can ship industrial, commercial and retail goods with confidence.

Please visit our website at www.yrcw.com for more information.


CONSOLIDATED BALANCE SHEETS 
YRC Worldwide Inc. and Subsidiaries 
(Amounts in millions except share and per share data) 
        
         
    September 30, December 31, 
      2016   2015  
ASSETS  (Unaudited)    
        
CURRENT ASSETS:     
 Cash and cash equivalents $  276.4  $  173.8  
 Restricted amounts held in escrow    43.0     58.8  
 Accounts receivable, net    477.8     427.4  
 Prepaid expenses and other    75.3     74.4  
  Total current assets    872.5     734.4  
         
PROPERTY AND EQUIPMENT:     
 Cost    2,815.7     2,822.8  
 Less - accumulated depreciation    (1,927.9)    (1,885.5) 
  Net property and equipment    887.8     937.3  
        
Intangibles, net    30.7     40.4  
Restricted amounts held in escrow    -     63.4  
Deferred income taxes, net    23.0     23.0  
Other assets    56.6     80.9  
  Total assets $  1,870.6  $  1,879.4  
        
        
        
LIABILITIES AND SHAREHOLDERS' DEFICIT     
        
CURRENT LIABILITIES:     
 Accounts payable $  163.9  $  161.1  
 Wages, vacations, and employee benefits    203.6     195.1  
 Deferred income taxes, net    23.0     23.0  
 Other current and accrued liabilities    175.3     178.4  
 Current maturities of long-term debt    16.6     15.9  
  Total current liabilities    582.4     573.5  
        
OTHER LIABILITIES:     
 Long-term debt, less current portion    1,023.9     1,046.5  
 Deferred income taxes, net    3.8     3.7  
 Pension and postretirement    311.4     339.9  
 Claims and other liabilities    291.3     295.2  
 Commitments and contingencies     
        
SHAREHOLDERS' DEFICIT:     
 Preferred stock, $1 par value per share     -     -  
 Common stock, $0.01 par value per share     0.3     0.3  
 Capital surplus    2,317.9     2,312.6  
 Accumulated deficit    (2,210.3)    (2,239.3) 
 Accumulated other comprehensive loss    (357.4)    (360.3) 
 Treasury stock, at cost (410 shares)    (92.7)    (92.7) 
     Total shareholders' deficit    (342.2)    (379.4) 
  Total liabilities and shareholders' deficit $  1,870.6  $  1,879.4  
        

 

STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME  
YRC Worldwide Inc. and Subsidiaries 
For the Three and Nine Months Ended September 30 
(Amounts in millions except per share data, shares in thousands) 
(Unaudited) 
           
   Three Months Nine Months 
    2016   2015   2016   2015  
           
OPERATING REVENUE$  1,221.3  $  1,244.9  $  3,549.2  $  3,689.7  
           
OPERATING EXPENSES:        
 Salaries, wages and employee benefits   715.8     725.8     2,132.6     2,148.6  
 Operating expenses and supplies   206.9     217.1     595.7     678.1  
 Purchased transportation   156.8     149.6     409.0     431.0  
 Depreciation and amortization   40.3     40.7     119.5     123.6  
 Other operating expenses   62.5     63.1     194.2     198.6   
 (Gains) losses on property disposals, net   0.2     0.9      (11.2)    1.5  
                   
  Total operating expenses   1,182.5     1,197.2     3,439.8   3,581.4  
                 
OPERATING INCOME   38.8     47.7     109.4     108.3  
            
NONOPERATING EXPENSES:        
 Interest expense   25.6     25.7     77.9     81.2  
 Loss on extinguishment of debt   -     -     -     0.6  
 Other, net   (1.2)    (4.5)    (0.9)    (8.1) 
                   
  Nonoperating expenses, net   24.4     21.2     77.0     73.7  
            
INCOME BEFORE INCOME TAXES   14.4     26.5     32.4     34.6  
INCOME TAX EXPENSE   0.5     6.7      3.4     10.4  
NET INCOME   13.9     19.8     29.0     24.2  
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX   2.3     (1.9)    2.9     2.9  
COMPREHENSIVE INCOME ATTRIBUTABLE TO YRC WORLDWIDE INC.$  16.2  $  17.9  $  31.9  $  27.1  
           
AVERAGE COMMON SHARES OUTSTANDING - BASIC   32,466     32,065     32,398     31,602  
AVERAGE COMMON SHARES OUTSTANDING - DILUTED   33,194     32,621     32,915     32,569  
           
EARNINGS PER SHARE - BASIC$  0.43  $  0.62  $  0.89  $  0.76  
EARNINGS PER SHARE - DILUTED$  0.42  $  0.61  $  0.88  $  0.74  

 

   STATEMENTS OF CONSOLIDATED CASH FLOWS 
   YRC Worldwide Inc. and Subsidiaries 
   For the Nine Months Ended September 30 
   (Amounts in millions) 
   (Unaudited) 
       
     2016   2015 
       
OPERATING ACTIVITIES:    
 Net income $  29.0  $  24.2 
 Noncash items included in net income:   
  Depreciation and amortization   119.5     123.6 
  Noncash equity-based compensation and employee benefits expense   16.2     18.5 
  (Gains) losses on property disposals, net   (11.2)    1.5 
  Gain on disposal of equity method investment   (2.3)    - 
  Other noncash items, net    7.6     0.7 
 Changes in assets and liabilities, net:    
  Accounts receivable    (49.7)    (29.4)
  Accounts payable    0.8     10.0 
  Other operating assets    4.1     (7.3)
  Other operating liabilities    (28.0)    (50.3)
  Net cash provided by operating activities   86.0     91.5 
       
INVESTING ACTIVITIES:    
 Acquisition of property and equipment   (75.4)    (71.8)
 Proceeds from disposal of property and equipment   26.5     15.7 
 Restricted escrow receipts    112.1     41.9 
 Restricted escrow deposits    (32.9)    (25.0)
 Proceeds from disposal of equity method investment, net   14.6     - 
 Other, net    -     0.4 
  Net cash provided by (used in) investing activities   44.9     (38.8)
       
FINANCING ACTIVITIES:    
 Repayment of long-term debt    (26.5)    (13.1)
 Debt issuance costs    (1.8)    - 
  Net cash used in financing activities   (28.3)    (13.1)
        
NET INCREASE IN CASH AND CASH EQUIVALENTS   102.6     39.6 
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD   173.8     171.1 
CASH AND CASH EQUIVALENTS, END OF PERIOD$  276.4  $  210.7 
       
SUPPLEMENTAL CASH FLOW INFORMATION   
Interest paid  $  (68.5) $  (79.3)
Income tax payments, net    (4.1)    (1.6)
Debt redeemed for equity consideration   -     17.9 
        

 

SUPPLEMENTAL FINANCIAL INFORMATION
YRC Worldwide Inc. and Subsidiaries
For the Three and Nine Months Ended September 30
(Amounts in millions)
(Unaudited)
               
SEGMENT INFORMATION             
               
  Three Months Nine Months 
   2016    2015  %  2016    2015  % 
               
Operating revenue:            
 YRC Freight$777.9  $ 789.2    (1.4) $ 2,228.6  $ 2,322.0   (4.0) 
 Regional Transportation   443.7     455.7     (2.6)    1,321.3     1,367.7     (3.4) 
 Other, net of eliminations   (0.3)    -         (0.7)    -     
 Consolidated    1,221.3     1,244.9     (1.9)    3,549.2     3,689.7     (3.8) 
              
Operating income (loss):             
 YRC Freight   20.8     16.7       53.3      39.4    
 Regional Transportation   21.9     33.6       64.9      75.9    
 Corporate and other   (3.9)    (2.6)      (8.8)    (7.0)   
  Consolidated $  38.8  $  47.7    $  109.4  $  108.3    
               
Operating ratio:            
 YRC Freight 97.3%  97.9%    97.6%  98.3%   
 Regional Transportation 95.1%  92.6%    95.1%  94.5%   
 Consolidated  96.8%  96.2%    96.9 %  97.1%   
              
 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. 
               
               
              
SUPPLEMENTAL INFORMATION        Debt Issue   
 As of September 30, 2016    Par Value Discount Costs Book Value 
 Term Loan    $  680.8  $  (3.2) $  (9.7) $  667.9  
 ABL Facility (a)    -      -      -      -   
 Secured Second A&R CDA       29.0     -      (0.2)    28.8  
 Unsecured Second A&R CDA       73.2     -      (0.4)    72.8   
 Lease financing obligations       272.4      -      (1.4)    271.0  
   Total debt    $  1,055.4  $  (3.2) $  (11.7) $  1,040.5  
              
               
          Debt Issue   
 As of December 31, 2015    Par Value Discount Costs Book Value  
 Term Loan    $  686.0  $  (4.3) $  (12.7) $  669.0   
 ABL Facility (b)    -      -      -      -    
 Secured Second A&R CDA       44.7     -      (0.3)    44.4   
 Unsecured Second A&R CDA       73.2      -      (0.5)    72.7   
 Lease financing obligations       278.0      -      (1.7)    276.3   
   Total debt    $  1,081.9  $  (4.3) $  (15.2) $  1,062.4   
              
              
 Our total leverage ratio for the four consecutive fiscal quarters ended September 30, 2016 was 3.45 to 1.00.  
              
(a)ABL Facility capacity $450.0M; borrowing base $412.6M; maximum availability $55.0M; Managed Accessibility $13.7M. Managed Accessibility is defined as maximum availability less the lower of 10% of the borrowing base or 10% of the facility size.  
   
             
(b)ABL Facility capacity $450.0M; borrowing base $441.7M; maximum availability $79.7M; Managed Accessibility $35.5M. Managed Accessibility is defined as maximum availability less the lower of 10% of the borrowing base or 10% of the facility size.  
  

 

SUPPLEMENTAL FINANCIAL INFORMATION 
YRC Worldwide Inc. and Subsidiaries 
For the Three and Nine Months Ended September 30 
(Amounts in millions) 
(Unaudited) 
          
  Three Months  Nine Months  
    2016    2015   2016    2015  
 Reconciliation of net income to Adjusted EBITDA:        
 Net income$  13.9  $  19.8  $  29.0   $  24.2  
 Interest expense, net   25.5     25.6     77.6     80.9  
 Income tax expense   0.5     6.7     3.4     10.4  
 Depreciation and amortization   40.3     40.7     119.5     123.6  
 EBITDA    80.2     92.8     229.5     239.1  
 Adjustments for Term Loan Agreement:        
 (Gains) losses on property disposals, net   0.2     0.9     (11.2)    1.5  
 Letter of credit expense   1.7     2.2     6.0     6.6  
 Restructuring professional fees   -     0.2     -     0.2  
 Nonrecurring consulting fees   -     (0.8)    -     5.1  
 Permitted dispositions and other    2.2     -     1.8     0.3  
 Equity-based compensation expense   1.5     2.8     6.0     6.5  
 Amortization of ratification bonus   -     4.6     4.6     14.4  
 Loss on extinguishment of debt   -     -     -     0.6  
 Other, net (a)   (0.3)    (3.6)    3.1     (7.0) 
 Adjusted EBITDA $  85.5  $  99.1   $  239.8  $  267.3  
          
 Operating revenue$  1,221.3  $  1,244.9  $  3,549.2  $  3,689.7  
 Adjusted EBITDA margin 7.0%  8.0%  6.8%  7.2% 
          
 (a) As required under our Term Loan Agreement, other, net, shown above consists of the impact of certain items to be included in Adjusted EBITDA. 
          
          
  Three Months  Nine Months  
 Adjusted EBITDA by segment: 2016    2015    2016    2015  
 YRC Freight$  45.3  $  45.2  $  119.3  $  130.4  
 Regional Transportation   40.2     52.9     121.3     135.7  
 Corporate and other   -     1.0     (0.8)    1.2  
 Adjusted EBITDA $  85.5  $  99.1  $  239.8  $  267.3  
          

 

SUPPLEMENTAL FINANCIAL INFORMATION 
YRC Worldwide Inc. and Subsidiaries 
For the Three and Nine Months Ended September 30 
(Amounts in millions) 
(Unaudited) 
          
  Three Months  Nine Months  
 YRC Freight segment 2016    2015   2016    2015  
 Reconciliation of operating income to Adjusted EBITDA:        
 Operating income$  20.8  $  16.7  $  53.3  $  39.4  
 Depreciation and amortization   22.9     23.3     67.9      70.5  
 (Gains) losses on property disposals, net   -     1.1     (12.0)    1.7   
 Letter of credit expense   1.1     1.6     3.9     4.6  
 Nonrecurring consulting fees   -     (0.8)    -     5.1  
 Amortization of ratification bonus   -     3.0     3.0     9.3  
 Other, net (a)   0.5     0.3     3.2     (0.2) 
 Adjusted EBITDA $  45.3  $  45.2  $  119.3  $  130.4  
          
 (a) As required under our Term Loan Agreement, other, net, shown above consists of the impact of certain items to be included in Adjusted EBITDA. 
          
  Three Months  Nine Months  
 Regional Transportation segment 2016    2015   2016    2015  
 Reconciliation of operating income to Adjusted EBITDA:        
 Operating income $  21.9  $  33.6  $  64.9  $  75.9  
 Depreciation and amortization   17.4     17.4     51.6     53.2  
 (Gains) losses on property disposals, net    0.3     (0.2)    0.9     -   
 Letter of credit expense   0.6     0.5     2.0      1.5  
 Amortization of ratification bonus   -      1.6     1.6     5.1  
 Other, net (a)   -      -      0.3     -   
 Adjusted EBITDA$  40.2  $  52.9  $  121.3  $  135.7  
          
 (a) As required under our Term Loan Agreement, other, net, shown above consists of the impact of certain items to be included in Adjusted EBITDA. 
          
  Three Months  Nine Months  
 Corporate and other 2016    2015   2016    2015  
 Reconciliation of operating loss to Adjusted EBITDA:        
 Operating loss$  (3.9) $  (2.6) $  (8.8) $  (7.0) 
 Depreciation and amortization   -      -      -      (0.1) 
 Gains on property disposals, net    (0.1)    -      (0.1)    (0.2) 
 Letter of credit expense   -      0.1     0.1     0.5  
 Restructuring professional fees   -      0.2     -      0.2  
 Permitted dispositions and other    2.2     -      1.8     0.3  
 Equity-based compensation expense   1.5     2.8     6.0     6.5  
 Other, net (a)   0.3     0.5     0.2     1.0  
 Adjusted EBITDA$  -   $  1.0  $  (0.8) $  1.2  
         
 (a) As required under our Term Loan Agreement, other, net, shown above consists of the impact of certain items to be included in Adjusted EBITDA. 
          

 

SUPPLEMENTAL FINANCIAL INFORMATION
YRC Worldwide Inc. and Subsidiaries
For the Trailing Twelve Months Ended September 30
(Amounts in millions)
(Unaudited)
    
   2016   2015  
 Reconciliation of net income to Adjusted EBITDA:  
 Net income $  5.5 $  30.4 
 Interest expense, net   103.8    108.1 
 Income tax expense (benefit)   (12.1)   10.7  
 Depreciation and amortization   159.6    164.3 
 EBITDA   256.8    313.5 
 Adjustments for Term Loan Agreement:  
 Gains on property disposals, net   (10.8)   (4.3)
 Letter of credit expense   8.2    8.9 
 Restructuring professional fees    -    0.2 
 Nonrecurring consulting fees   -    5.1 
 Permitted dispositions and other   1.9    0.3 
 Equity-based compensation expense   8.0    9.7  
 Amortization of ratification bonus   9.1    19.6 
 Loss on extinguishment of debt   -    0.6 
 Non-union pension settlement charge   28.7    - 
 Other, net (a)   3.9    (9.3)
 Adjusted EBITDA $  305.8 $  344.3 
    
 Operating revenue$  4,691.9 $  4,907.4 
 Adjusted EBITDA margin 6.5% 7.0%
 (a) As required under our Term Loan Agreement, other, net, shown above consists of the impact of certain items to be included in Adjusted EBITDA.
 
    

 

          
YRC Worldwide Inc.
Segment Statistics
Quarterly Comparison
          
 YRC Freight
       Y/Y Sequential
 3Q16 3Q15 2Q16 % (b) % (b)
Workdays   64.0     64.0     64.0     
          
Total picked up revenue (in millions) (a)$  763.6  $  784.4  $  749.6     (2.6)    1.9 
Total tonnage (in thousands)   1,620     1,641     1,596     (1.3)    1.5 
Total tonnage per day (in thousands)   25.31     25.64     24.94     (1.3)    1.5 
Total shipments (in thousands)   2,678     2,740     2,683     (2.3)    (0.2)
Total shipments per day (in thousands)   41.84     42.82     41.93     (2.3)    (0.2)
Total picked up revenue/cwt.$  23.57  $  23.90  $  23.48     (1.4)    0.4 
Total picked up revenue/cwt. (excl. FSC)$  21.31  $  21.24  $  21.30     0.3     0.0 
Total picked up revenue/shipment$  285  $  286  $  279     (0.4)    2.1 
Total picked up revenue/shipment (excl. FSC)$  258  $  254  $  253     1.3     1.7 
Total weight/shipment (in pounds)   1,210     1,198     1,190     1.0     1.7 
          
(a) Reconciliation of operating revenue to total picked up revenue (in millions):    
Operating revenue$  777.9  $  789.2  $  755.0     
Change in revenue deferral and other   (14.3)    (4.8 )    (5.4)    
Total picked up revenue$  763.6  $  784.4  $  749.6     
          
          
          
  Regional Transportation 
       Y/Y Sequential
 3Q16 3Q15 2Q16 % (b) % (b)
Workdays   63.0     64.0     64.0     
          
Total picked up revenue (in millions) (a)$  443.4  $  455.9  $  453.2     (2.8)    (2.2)
Total tonnage (in thousands)   1,914     1,974     1,980     (3.1)    (3.4)
Total tonnage per day (in thousands)   30.38     30.85     30.94     (1.5)    (1.8)
Total shipments (in thousands)   2,622     2,672     2,696     (1.9)    (2.7)
Total shipments per day (in thousands)   41.62     41.76     42.12     (0.3)    (1.2)
Total picked up revenue/cwt.$  11.58  $  11.55   $  11.44     0.3     1.2 
Total picked up revenue/cwt. (excl. FSC)$  10.48  $  10.32  $  10.40     1.5     0.8 
Total picked up revenue/shipment$  169  $  171  $  168     (0.9)    0.6 
Total picked up revenue/shipment (excl. FSC)$  153  $  153  $  153     0.3     0.1 
Total weight/shipment (in pounds)   1,460     1,478     1,469     (1.2)    (0.6)
          
(a) Reconciliation of operating revenue to total picked up revenue (in millions):    
Operating revenue$  443.7  $  455.7  $  452.8     
Change in revenue deferral and other   (0.3)    0.2     0.4     
Total picked up revenue$  443.4  $  455.9  $  453.2     
 
(a) Does not equal financial statement revenue due to revenue recognition adjustments between accounting periods and the impact of other revenue for YRC Freight.
(b) Percent change based on unrounded figures and not the rounded figures presented.

 

       
YRC Worldwide Inc.
Segment Statistics
YTD Comparison
       
       
       
 YRC Freight 
     Y/Y 
  2016   2015  % (b) 
Workdays   191.5      190.0    
        
Total picked up revenue (in millions) (a)$ 2,208.9  $  2,313.9     (4.5) 
Total tonnage (in thousands)   4,701     4,892     (3.9) 
Total tonnage per day (in thousands)   24.55     25.75     (4.7) 
Total shipments (in thousands)   7,875     8,135     (3.2) 
Total shipments per day (in thousands)   41.12     42.81     (3.9) 
Total picked up revenue/cwt.$  23.49  $  23.65     (0.7) 
Total picked up revenue/cwt. (excl. FSC)$  21.34   $  20.87     2.3  
Total picked up revenue/shipment$  280  $  284     (1.4) 
Total picked up revenue/shipment (excl. FSC)$  255  $  251     1.5  
Total weight/shipment (in pounds)   1,194     1,203     (0.7) 
       
(a) Reconciliation of operating revenue to total picked up revenue (in millions): 
Operating revenue$ 2,228.6  $ 2,322.0    
Change in revenue deferral and other   (19.7)    (8.1)   
Total picked up revenue$ 2,208.9  $ 2,313.9    
       
       
  Regional Transportation  
     Y/Y 
  2016    2015  % (b) 
Workdays   191.5     191.5    
       
Total picked up revenue (in millions) (a)$ 1,323.0  $ 1,367.6     (3.3) 
Total tonnage (in thousands)   5,794     5,948     (2.6) 
Total tonnage per day (in thousands)   30.26     31.06     (2.6) 
Total shipments (in thousands)   7,876     7,987     (1.4) 
Total shipments per day (in thousands)   41.13     41.71     (1.4) 
Total picked up revenue/cwt.$  11.42  $  11.50     (0.7) 
Total picked up revenue/cwt. (excl. FSC)$   10.40  $  10.20     1.9  
Total picked up revenue/shipment$  168  $  171     (1.9) 
Total picked up revenue/shipment (excl. FSC)$  153  $  152     0.7  
Total weight/shipment (in pounds)   1,471     1,489     (1.2) 
       
(a) Reconciliation of operating revenue to total picked up revenue (in millions): 
Operating revenue$ 1,321.3  $ 1,367.7    
Change in revenue deferral and other   1.7     (0.1)   
Total picked up revenue$ 1,323.0  $ 1,367.6    
  
(a) Does not equal financial statement revenue due to revenue recognition adjustments between accounting periods and the impact of other revenue for YRC Freight. 
(b) Percent change based on unrounded figures and not the rounded figures presented. 
 

 

Investor Contact: 

Tony Carreño

913-696-6108

investor@yrcw.com



Media Contact:    

Mike Kelley

916-696-6121

mike.kelley@yrcw.com

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Source: YRC Worldwide Inc.

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