YRC Worldwide Inc. (Nasdaq:YRCW) today reported financial results
for the second quarter of 2014.
Consolidated operating revenue for the second quarter of 2014
was $1.318 billion with consolidated operating income reported at
$20.0 million, which included a $6.5 million gain on asset
disposals. As a comparison, the company reported consolidated
operating revenue of $1.243 billion for the second quarter of 2013
and consolidated operating income of $14.3 million, which included
a $1.3 million loss on asset disposals.
The company reported, on a non-GAAP basis, adjusted EBITDA of
$63.0 million for the second quarter of 2014, as compared to
adjusted EBITDA of $74.1 million for the second quarter of 2013 (as
detailed in the reconciliation below).
YRC Freight Second Quarter Results
"During the second quarter of 2014, YRC Freight experienced a
5.6% increase in operating revenue, despite a half workday less as
compared to the second quarter of 2013," said YRC Worldwide CEO
James Welch. "The additional revenue is due to increased volumes as
well as a slight gain in revenue per hundredweight. The growth in
shipments and tonnage per day is a result of the overall economic
improvement and renewed shipper confidence due to the successful
completion of our refinancing and modified labor agreement in
February 2014," continued Welch. "However, profitability for the
second quarter was negatively impacted by the network not being
fully in cycle which resulted in a decrease in productivities, the
re-handling of freight and less than optimal use of purchased
transportation. The year-over-year decline in profitability can
also be attributed to a $7.5 million increase in expense related to
bodily injury claims as well as a $2.9 million increase in cargo
claims expense when compared to the second quarter of 2013. The
increase in our bodily injury claims expense was driven by an
increase in outstanding claims and an increase in development of
prior year claims that remain unsettled.
"In order to improve network performance during the quarter, we
opened three terminals, increased the use of purchased
transportation and increased the utilization of part-time dock
employees," stated Darren Hawkins, YRC Freight President.
"Additionally, our plans to convert three current terminals to
distribution centers in the third quarter remain on target which we
anticipate will better balance our capacity and match it to
increasing demand.
"Overall, the freight environment in which we are currently
operating bodes well for YRC Freight. From a macro perspective, we
are experiencing a robust pricing environment, and at YRC Freight
specifically we are being disciplined in obtaining pricing
increases on lower margin accounts," continued Hawkins.
"As the second quarter progressed, we achieved significant
contractual negotiated pricing increases and in July we continue to
see these levels of increases. With continued improvement in the
economy and our service levels, we expect our ability to increase
pricing should remain strong," said Hawkins.
"In the second quarter, we continued to follow through with our
commitment to invest in technology by installing 13 of the 40
planned dimensioners in the YRC Freight network. These dimensioners
allow us the ability to cost each shipment based on the actual
cubic volume of the shipment," said Hawkins. "Also, we implemented
a new third-party customer relationship management (CRM)
tool. This solution is designed to allow us to drive sales
productivity, customer satisfaction and loyalty," concluded
Hawkins.
Regional Transportation Second Quarter
Results
Even with 1.5 fewer workdays, operating revenue for the Regional
segment grew by 6.9% during the second quarter of 2014 as compared
to the same period in 2013. The increase is due to the growth in
the overall economy and continued tightness of capacity in certain
regions of the country. "I am satisfied with the execution of our
Regional carriers as they continue to demonstrate strength in the
marketplace by growing revenue and increasing yield and volume,"
said Welch.
Profitability for the Regional segment was impacted by increased
purchased local cartage and the increased use of short-term revenue
equipment rentals to handle the increase in volume as well as an
increase in revenue equipment expense related to new equipment
leases. Additionally, profitability was negatively impacted by
a $3.0 million increase in expense related to bodily injury and
property damage claims and a $1.4 million increase in cargo claims
expense. The increase in bodily injury and property damage claims
expense was driven by an increase in outstanding claims and an
increase in development of prior year claims that remain
unsettled.
"During the second quarter, pricing increases for our Regional
carriers continued and provided increased profitability. With the
strong demand for our Regional carrier service, we anticipate that
the pricing momentum will continue and will provide them the
opportunity to produce favorable results in the second half of
2014," said Welch.
Key Segment Information – second quarter 2014
compared to the second quarter of 2013
|
|
|
Percent |
YRC
Freight |
2014 |
2013 |
Change |
Workdays |
63.5 |
64.0 |
|
Operating revenues (in
millions) |
$842.1 |
$797.6 |
5.6% |
Operating loss (in
millions) |
(0.3) |
(8.5) |
96.5% |
Operating ratio |
100.0 |
101.1 |
1.1pp |
Total tonnage per day (in
thousands) |
28.29 |
26.71 |
5.9% |
Total shipments per day (in
thousands) |
48.35 |
46.12 |
4.8% |
Revenue per hundredweight |
$23.36 |
$23.32 |
0.2% |
Revenue per shipment |
$273 |
$270 |
1.2% |
|
|
|
|
|
|
|
|
|
|
|
Percent |
Regional
Transportation |
2014 |
2013 |
Change |
Workdays |
62.5 |
64.0 |
|
Operating revenues (in
millions) |
$475.5 |
$444.9 |
6.9% |
Operating income (in
millions) |
23.2 |
25.2 |
(7.9)% |
Operating ratio |
95.1 |
94.3 |
(0.8)pp |
Total tonnage per day (in
thousands) |
32.86 |
30.79 |
6.7% |
Total shipments per day (in
thousands) |
44.91 |
42.35 |
6.0% |
Revenue per hundredweight |
$11.58 |
$11.30 |
2.5% |
Revenue per shipment |
$169 |
$164 |
3.2% |
Liquidity
As of June 30, 2014, we had cash and cash equivalents and
availability under our ABL Facility totaling $253.2 million, and
cash and cash equivalents and amounts able to be drawn under our
ABL Facility totaling $209.4 million. The amount which is
actually able to be drawn is limited by certain financial covenants
in the ABL Facility. For comparison, as of March 31, 2014, we
had cash and cash equivalents and availability of $223.0 million,
and cash and cash equivalents and amounts able to be drawn totaling
$183.2 million. For the six months ended June 30, 2014, cash
used in operating activities was $55.6 million as compared to cash
used in operating activities of $18.2 million for the six months
ended June 30, 2013.
Review of Financial Results
YRCW will host a conference call with the investment community
today, Thursday, July 31, 2014, beginning at 4:30 p.m. EDT, 3:30
p.m. CDT. The call will be available to listeners as a live
webcast and as a replay via the YRC Worldwide website yrcw.com.
Non-GAAP Financial Measures
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 and certain other items, including restructuring
professional fees, expenses associated with certain lump sum
payments to our IBT employees and results of permitted dispositions
and discontinued operations as defined in the company's credit
facilities. 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 facilities. 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 professional fees included in operating cash flow,
respectively. However, these financial measures should not be
construed as better measurements than operating cash flow, net
income or earnings per share, as defined by generally accepted
accounting principles (GAAP).
Adjusted EBITDA, free cash flow and adjusted free cash flow have
the following limitations:
- Adjusted EBITDA does 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 or fund our lump sum payments to our IBT
employees required under the ratified MOU;
- Although depreciation and amortization are non-cash charges,
the assets being depreciated and amortized will 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
certain employee equity-based compensation expense when presenting
our ongoing operating performance for a particular period;
- Adjusted free cash flow excludes the cash usage by the
company's restructuring professional fees, 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 EBITDA
differently than we do, limiting their usefulness as a comparative
measure.
Because of these limitations, 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 EBITDA, free cash flow and adjusted free
cash flow as a secondary measure. The company has provided
reconciliations of its non-GAAP measures, adjusted EBITDA, free
cash flow and adjusted free cash flow, to GAAP 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," "project," "forecast," "propose," "plan,"
"designed," "enable," and similar expressions are intended to
identify forward-looking statements. Forward-looking statements are
inherently uncertain 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
substantial indebtedness and lease and pension funding
requirements; the success of our management team in implementing
its strategic plan and operational and productivity improvements,
including (without limitation) our continued ability to meet high
on-time and quality delivery performance standards, and the impact
of those improvements to meet our future liquidity and
profitability; our ability to finance the maintenance, acquisition
and replacement of revenue equipment and other necessary capital
expenditures; potential increase in our operating lease obligations
resulting from our decision to defer the purchase of new revenue
equipment; changes in equity and debt markets; inclement weather;
price and availability 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 service and 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; 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 successful companies including
YRC Freight, YRC Reimer, Holland, Reddaway, and New Penn. 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 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) |
|
|
|
|
June 30, |
December 31, |
|
2014 |
2013 |
ASSETS |
(Unaudited) |
|
|
|
|
CURRENT ASSETS: |
|
|
Cash and cash equivalents |
$ 173.9 |
$ 176.3 |
Restricted amounts held in
escrow |
128.3 |
90.1 |
Accounts receivable, net |
556.6 |
460.9 |
Prepaid expenses and other |
100.7 |
70.6 |
Total current assets |
959.5 |
797.9 |
|
|
|
PROPERTY AND EQUIPMENT: |
|
|
Cost |
2,831.3 |
2,844.2 |
Less - accumulated
depreciation |
(1,800.2) |
(1,754.4) |
Net property and equipment |
1,031.1 |
1,089.8 |
|
|
|
OTHER ASSETS: |
|
|
Intangibles, net |
70.5 |
79.8 |
Restricted amounts held in
escrow |
-- |
0.6 |
Deferred income taxes, net |
18.4 |
18.3 |
Other assets |
100.0 |
78.5 |
Total assets |
$ 2,179.5 |
$ 2,064.9 |
|
|
|
LIABILITIES AND SHAREHOLDERS' DEFICIT |
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
Accounts payable |
$ 206.2 |
$ 176.7 |
Wages, vacations, and
employees' benefits |
224.0 |
191.2 |
Deferred income taxes, net |
18.6 |
18.6 |
Other current and accrued
liabilities |
197.7 |
189.5 |
Current maturities of long-term
debt |
111.8 |
8.6 |
Total current liabilities |
758.3 |
584.6 |
|
|
|
OTHER LIABILITIES: |
|
|
Long-term debt, less current
portion |
1,083.4 |
1,354.8 |
Deferred income taxes, net |
1.8 |
1.8 |
Pension and postretirement |
359.9 |
384.8 |
Claims and other
liabilities |
338.5 |
336.3 |
Commitments and
contingencies |
|
|
|
|
|
SHAREHOLDERS' DEFICIT: |
|
|
Preferred stock, $1.00 par
value per share |
-- |
-- |
Common stock, $0.01 par value
per share |
0.3 |
0.1 |
Capital surplus |
2,287.9 |
1,964.4 |
Accumulated deficit |
(2,247.4) |
(2,154.2) |
Accumulated other comprehensive
loss |
(310.5) |
(315.0) |
Treasury stock, at cost (410
shares) |
(92.7) |
(92.7) |
Total shareholders'
deficit |
(362.4) |
(597.4) |
Total liabilities and
shareholders' deficit |
$ 2,179.5 |
$ 2,064.9 |
|
|
STATEMENTS OF CONSOLIDATED
COMPREHENSIVE LOSS |
YRC Worldwide Inc. and
Subsidiaries |
For the Three and Six Months
Ended June 30 |
(Amounts in millions except per
share data, shares in thousands) |
(Unaudited) |
|
|
|
|
|
|
Three Months |
Six Months |
|
2014 |
2013 |
2014 |
2013 |
|
|
|
|
|
OPERATING REVENUE |
$ 1,317.6 |
$ 1,242.5 |
$ 2,528.5 |
$ 2,405.0 |
|
|
|
|
|
OPERATING EXPENSES: |
|
|
|
|
Salaries, wages and employees'
benefits |
740.7 |
717.5 |
1,466.4 |
1,398.5 |
Operating expenses and
supplies |
292.0 |
285.8 |
575.7 |
553.6 |
Purchased transportation |
159.8 |
125.7 |
291.7 |
240.6 |
Depreciation and
amortization |
41.0 |
43.5 |
82.0 |
87.1 |
Other operating expenses |
70.6 |
54.4 |
131.4 |
104.2 |
(Gains) losses on property
disposals, net |
(6.5) |
1.3 |
(6.3) |
(3.2) |
Total operating expenses |
1,297.6 |
1,228.2 |
2,540.9 |
2,380.8 |
OPERATING INCOME (LOSS) |
20.0 |
14.3 |
(12.4) |
24.2 |
|
|
|
|
|
NONOPERATING (INCOME) EXPENSES: |
|
|
|
|
Interest expense |
31.7 |
41.9 |
89.9 |
81.1 |
Gain on extinguishment of
debt |
-- |
-- |
(11.2) |
-- |
Other, net |
1.1 |
(2.5) |
(4.0) |
(2.8) |
Nonoperating expenses, net |
32.8 |
39.4 |
74.7 |
78.3 |
|
|
|
|
|
LOSS BEFORE INCOME TAXES |
(12.8) |
(25.1) |
(87.1) |
(54.1) |
INCOME TAX BENEFIT |
(7.9) |
(10.0) |
(12.0) |
(14.5) |
NET LOSS |
(4.9) |
(15.1) |
(75.1) |
(39.6) |
AMORTIZATION OF BENEFICIAL CONVERSION FEATURE
ON PREFERRED STOCK |
-- |
-- |
(18.1) |
-- |
NET LOSS ATTRIBUTABLE TO
COMMON SHAREHOLDERS |
$ (4.9) |
$ (15.1) |
$ (93.2) |
$ (39.6) |
|
|
|
|
|
NET LOSS |
$ (4.9) |
$ (15.1) |
$ (75.1) |
$ (39.6) |
OTHER COMPREHENSIVE INCOME, NET OF TAX |
3.6 |
2.1 |
4.5 |
5.2 |
COMPREHENSIVE LOSS
ATTRIBUTABLE TO YRC WORLDWIDE INC. |
$ (1.3) |
$ (13.0) |
$ (70.6) |
$ (34.4) |
|
|
|
|
|
AVERAGE COMMON SHARES OUTSTANDING-BASIC |
30,612 |
8,784 |
26,501 |
8,583 |
AVERAGE COMMON SHARES
OUTSTANDING-DILUTED |
30,612 |
8,784 |
26,501 |
8,583 |
|
|
|
|
|
NET LOSS PER SHARE - BASIC |
$ (0.16) |
$ (1.72) |
$ (3.52) |
$ (4.62) |
NET LOSS PER SHARE - DILUTED |
$ (0.16) |
$ (1.72) |
$ (3.52) |
$ (4.62) |
|
|
STATEMENTS OF CONSOLIDATED CASH
FLOWS |
YRC Worldwide Inc. and
Subsidiaries |
For the Six Months Ended June
30 |
(Amounts in millions) |
(unaudited) |
|
|
|
|
2014 |
2013 |
|
|
|
OPERATING ACTIVITIES: |
|
|
Net loss |
$ (75.1) |
$ (39.6) |
Noncash items included in net
loss: |
|
|
Depreciation and
amortization |
82.0 |
87.1 |
Gain on extinguishment of
debt |
(11.2) |
-- |
Paid-in-kind interest on Series
A Notes and Series B Notes |
12.7 |
16.1 |
Amortization of deferred debt
costs |
4.9 |
3.3 |
Amortization of premiums and
discounts on debt |
20.1 |
4.2 |
Equity based compensation
expense |
9.1 |
4.0 |
Deferred income tax benefit,
net |
(1.1) |
(0.8) |
Gains on property disposals,
net |
(6.3) |
(3.2) |
Other noncash items, net |
(3.7) |
(1.1) |
Changes in assets and
liabilities, net: |
|
|
Accounts receivable |
(95.5) |
(65.5) |
Accounts payable |
22.3 |
5.5 |
Other operating assets |
(15.8) |
0.4 |
Other operating
liabilities |
2.0 |
(28.6) |
Net cash used in operating
activities |
(55.6) |
(18.2) |
|
|
|
INVESTING ACTIVITIES: |
|
|
Acquisition of property and
equipment |
(24.7) |
(39.1) |
Proceeds from disposal of
property and equipment |
7.3 |
4.2 |
Restricted escrow receipts
(deposits), net |
(37.5) |
12.8 |
Other |
5.3 |
1.8 |
Net cash used in investing
activities |
(49.6) |
(20.3) |
|
|
|
FINANCING ACTIVITIES: |
|
|
Issuance of long-term debt |
693.0 |
0.3 |
Repayment of long-term
debt |
(795.7) |
(4.6) |
Debt issuance costs |
(27.4) |
-- |
Equity issuance costs |
(17.1) |
-- |
Equity issuance proceeds |
250.0 |
-- |
Net cash provided by (used in)
financing activities |
102.8 |
(4.3) |
NET DECREASE IN CASH AND CASH
EQUIVALENTS |
(2.4) |
(42.8) |
CASH AND CASH EQUIVALENTS, BEGINNING OF
PERIOD |
176.3 |
208.7 |
CASH AND CASH EQUIVALENTS, END OF PERIOD |
$ 173.9 |
$ 165.9 |
|
|
|
SUPPLEMENTAL CASH FLOW INFORMATION |
|
|
Interest paid |
$ (67.7) |
$ (57.2) |
Income tax refund, net |
9.9 |
11.8 |
|
|
SUPPLEMENTAL FINANCIAL
INFORMATION |
YRC Worldwide Inc. and
Subsidiaries |
For the Three and Six Months
Ended June 30 |
(Amounts in millions) |
(Unaudited) |
|
|
|
|
|
|
|
SEGMENT INFORMATION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months |
Six
Months |
|
2014 |
2013 |
% |
2014 |
2013 |
% |
|
|
|
|
|
|
|
Operating revenue: |
|
|
|
|
|
|
YRC Freight |
$ 842.1 |
$ 797.6 |
5.6 |
$ 1,598.9 |
$ 1,551.4 |
3.1 |
Regional Transportation |
475.5 |
444.9 |
6.9 |
929.6 |
853.6 |
8.9 |
Other, net of eliminations |
-- |
-- |
|
-- |
-- |
|
Consolidated |
1,317.6 |
1,242.5 |
6.0 |
2,528.5 |
2,405.0 |
5.1 |
|
|
|
|
|
|
|
Operating income (loss): |
|
|
|
|
|
|
YRC Freight |
(0.3) |
(8.5) |
|
(32.8) |
(6.1) |
|
Regional Transportation |
23.2 |
25.2 |
|
31.1 |
37.2 |
|
Corporate and other |
(2.9) |
(2.4) |
|
(10.7) |
(6.9) |
|
Consolidated |
$ 20.0 |
$ 14.3 |
|
$ (12.4) |
$ 24.2 |
|
|
|
|
|
|
|
|
Operating ratio: |
|
|
|
|
|
|
YRC Freight |
100.0% |
101.1% |
|
102.1% |
100.4% |
|
Regional Transportation |
95.1% |
94.3% |
|
96.7% |
95.6% |
|
Consolidated |
98.5% |
98.8% |
|
100.5% |
99.0% |
|
|
|
|
|
|
|
|
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 |
|
|
|
|
Book |
|
As of
June 30, 2014 |
|
Par Value |
Discount |
Value |
|
New term loan |
|
|
$ 696.5 |
$ (6.5) |
$ 690.0 |
|
ABL facility - (capacity $450M;
borrowing base $446.8M; availability $79.3M; amount able to be
drawn $35.5M) |
|
|
-- |
-- |
-- |
|
Series A Notes |
|
|
88.8 |
(5.4) |
83.4 |
|
Series B Notes |
|
|
16.9 |
(1.8) |
15.1 |
|
Secured Second A&R CDA |
|
|
47.8 |
-- |
47.8 |
|
Unsecured Second A&R
CDA |
|
|
73.2 |
-- |
73.2 |
|
Lease financing
obligations |
|
|
285.5 |
-- |
285.5 |
|
Other |
|
|
0.2 |
-- |
0.2 |
|
Total
debt |
|
|
$ 1,208.9 |
$ (13.7) |
$ 1,195.2 |
|
|
|
|
|
|
|
|
|
|
|
|
Premium/ |
Book |
|
As of
December 31, 2013 |
|
Par Value |
(Discount) |
Value |
|
Restructured term loan |
|
|
$ 298.1 |
$ 37.7 |
$ 335.8 |
|
ABL facility – Term A -
(capacity $175M; borrowing base $156.5M; availability $51.5M) |
|
|
105.0 |
(2.1) |
102.9 |
|
ABL facility – Term B -
(capacity $219.9M; borrowing base $219.9M; availability $0) |
|
|
219.9 |
(3.9) |
216.0 |
|
Series A Notes |
|
|
177.8 |
(17.8) |
160.0 |
|
Series B Notes |
|
|
69.2 |
(10.5) |
58.7 |
|
6% convertible senior
notes |
|
|
69.4 |
(1.1) |
68.3 |
|
Pension contribution deferral
obligations |
|
|
124.2 |
(0.2) |
124.0 |
|
Lease financing
obligations |
|
|
297.5 |
-- |
297.5 |
|
Other |
|
|
0.2 |
-- |
0.2 |
|
Total
debt |
|
|
$ 1,361.3 |
$ 2.1 |
$ 1,363.4 |
|
|
|
SUPPLEMENTAL FINANCIAL
INFORMATION |
YRC Worldwide Inc. and
Subsidiaries |
For the Three and Six Months
Ended June 30 |
(Amounts in millions) |
(Unaudited) |
|
|
|
|
|
|
Three
Months |
Six
Months |
|
2014 |
2013 |
2014 |
2013 |
Reconciliation of operating income
(loss) to adjusted EBITDA: |
|
|
|
|
Operating income (loss) |
$ 20.0 |
$ 14.3 |
$ (12.4) |
$ 24.2 |
Depreciation and
amortization |
41.0 |
43.5 |
82.0 |
87.1 |
(Gains) losses on property
disposals, net |
(6.5) |
1.3 |
(6.3) |
(3.2) |
Letter of credit expense |
2.1 |
8.9 |
7.3 |
17.8 |
Restructuring professional
fees |
-- |
1.5 |
1.1 |
2.8 |
Permitted dispositions and
other |
-- |
(0.2) |
0.1 |
(0.1) |
Equity based compensation
expense |
2.5 |
3.0 |
9.1 |
4.0 |
Amortization of ratification
bonus |
5.2 |
-- |
5.2 |
-- |
Other nonoperating, net
(a) |
(1.3) |
1.8 |
(0.3) |
1.7 |
Adjusted EBITDA |
$ 63.0 |
$ 74.1 |
$ 85.8 |
$ 134.3 |
|
|
|
|
|
(a) Other nonoperating, net
excludes the impact of earnings (loss) of our equity method
investment as well as non-cash foreign currency gains or
losses. |
|
|
|
|
|
|
Three
Months |
Six
Months |
Adjusted EBITDA by
segment: |
2014 |
2013 |
2014 |
2013 |
YRC Freight |
$ 21.5 |
$ 30.0 |
$ 17.8 |
$ 63.6 |
Regional
Transportation |
42.1 |
42.5 |
68.0 |
71.5 |
Corporate and other |
(0.6) |
1.6 |
0.0 |
(0.8) |
Adjusted EBITDA |
$ 63.0 |
$ 74.1 |
$ 85.8 |
$ 134.3 |
|
|
|
|
|
|
Three
Months |
Six
Months |
|
2014 |
2013 |
2014 |
2013 |
Reconciliation of adjusted EBITDA to
adjusted free cash flow (deficit): |
|
|
|
|
Adjusted EBITDA |
$ 63.0 |
$ 74.1 |
$ 85.8 |
$ 134.3 |
Total restructuring
professional fees |
-- |
(1.5) |
(1.1) |
(2.8) |
Cash paid for interest |
(28.3) |
(28.7) |
(67.7) |
(57.2) |
Cash paid for letter of credit
fees |
(0.1) |
(9.0) |
(4.1) |
(15.0) |
Working capital cash flows
excluding income tax, net |
(30.3) |
(36.4) |
(78.4) |
(89.3) |
Net cash provided by (used) in operating
activities before income taxes |
4.3 |
(1.5) |
(65.5) |
(30.0) |
Cash (paid for) received from
income taxes, net |
(3.7) |
(2.8) |
9.9 |
11.8 |
Net cash provided by (used in) operating
activities |
0.6 |
(4.3) |
(55.6) |
(18.2) |
Acquisition of property and
equipment |
(13.0) |
(21.9) |
(24.7) |
(39.1) |
Total restructuring
professional fees |
-- |
1.5 |
1.1 |
2.8 |
Adjusted free cash flow (deficit) |
$ (12.4) |
$ (24.7) |
$ (79.2) |
$ (54.5) |
|
|
SUPPLEMENTAL FINANCIAL
INFORMATION |
YRC Worldwide Inc. and
Subsidiaries |
For the Three and Six Months
Ended June 30 |
(Amounts in millions) |
(Unaudited) |
|
|
|
|
|
|
Three
Months |
Six
Months |
YRC Freight segment |
2014 |
2013 |
2014 |
2013 |
Reconciliation of operating loss to
adjusted EBITDA: |
|
|
|
|
Operating loss |
$ (0.3) |
$ (8.5) |
$(32.8) |
$ (6.1) |
Depreciation and
amortization |
24.9 |
27.9 |
49.6 |
55.9 |
(Gains) losses on property
disposals, net |
(6.7) |
1.0 |
(6.9) |
(3.5) |
Letter of credit expense |
1.4 |
7.2 |
5.0 |
14.6 |
Amortization of ratification
bonus |
3.3 |
-- |
3.3 |
-- |
Other nonoperating, net
(a) |
(1.1) |
2.4 |
(0.4) |
2.7 |
Adjusted EBITDA |
$21.5 |
$30.0 |
$ 17.8 |
$63.6 |
|
|
|
|
|
(a) Other nonoperating, net
excludes the impact of non-cash foreign currency gains or
losses. |
|
|
|
|
|
|
Three
Months |
Six
Months |
Regional Transportation
segment |
2014 |
2013 |
2014 |
2013 |
Reconciliation of operating income to
adjusted EBITDA: |
|
|
|
|
Operating income |
$23.2 |
$25.2 |
$ 31.1 |
$37.2 |
Depreciation and
amortization |
16.2 |
15.6 |
32.6 |
31.1 |
Losses on property disposals,
net |
0.2 |
0.1 |
0.6 |
0.1 |
Letter of credit expense |
0.6 |
1.6 |
1.8 |
3.0 |
Amortization of ratification
bonus |
1.9 |
-- |
1.9 |
|
Other nonoperating, net |
-- |
-- |
-- |
0.1 |
Adjusted EBITDA |
$42.1 |
$42.5 |
$ 68.0 |
$71.5 |
|
|
|
|
|
|
Three
Months |
Six
Months |
Corporate and other
segment |
2014 |
2013 |
2014 |
2013 |
Reconciliation of operating loss to
adjusted EBITDA: |
|
|
|
|
Operating loss |
$ (2.9) |
$ (2.4) |
$(10.7) |
$ (6.9) |
Depreciation and
amortization |
(0.1) |
-- |
(0.2) |
0.1 |
Losses on property disposals,
net |
-- |
0.2 |
-- |
0.2 |
Letter of credit expense |
0.1 |
0.1 |
0.5 |
0.2 |
Restructuring professional
fees |
-- |
1.5 |
1.1 |
2.8 |
Permitted dispositions and
other |
-- |
(0.2) |
0.1 |
(0.1) |
Equity based compensation
expense |
2.5 |
3.0 |
9.1 |
4.0 |
Other nonoperating, net
(a) |
(0.2) |
(0.6) |
0.1 |
(1.1) |
Adjusted EBITDA |
$ (0.6) |
$ 1.6 |
$ 0.0 |
$ (0.8) |
|
|
|
|
|
(a) Other nonoperating, net
excludes the impact of earnings (loss) of our equity method
investment as well as non-cash foreign currency gains or
losses. |
|
|
SUPPLEMENTAL FINANCIAL
INFORMATION |
YRC Worldwide Inc. and
Subsidiaries |
For the Trailing Twelve Months
Ended June 30, 2014 |
(Amounts in millions) |
(Unaudited) |
|
|
|
2014 |
Reconciliation of operating income
(loss) to adjusted EBITDA: |
|
Operating loss |
$ (8.2) |
Depreciation and
amortization |
167.2 |
Gains on property disposals,
net |
(5.3) |
Letter of credit expense |
23.4 |
Restructuring professional
fees |
10.3 |
Permitted dispositions and
other |
1.8 |
Equity based compensation
expense |
10.9 |
Amortization of ratification
bonus |
5.2 |
Other nonoperating, net
(a) |
1.2 |
Adjusted EBITDA |
$ 206.5 |
|
|
(a) Other nonoperating, net
excludes the impact of earnings (loss) of our equity method
investment as well as non-cash foreign currency gains or
losses. |
|
|
|
|
|
|
|
|
|
|
|
|
YRC Worldwide Inc. |
Segment Statistics |
Quarterly Comparison |
|
|
|
|
|
|
|
YRC Freight |
|
|
|
|
Y/Y |
Sequential |
|
2Q14 |
2Q13 |
1Q14 |
% (b) |
% (b) |
Workdays |
63.5 |
64.0 |
63.0 |
|
|
|
|
|
|
|
|
Total picked up revenue (in millions)
(a) |
$ 839.2 |
$ 797.5 |
$ 755.9 |
5.2 |
11.0 |
Total tonnage (in thousands) |
1,796 |
1,710 |
1,646 |
5.1 |
9.1 |
Total tonnage per day (in thousands) |
28.29 |
26.71 |
26.13 |
5.9 |
8.2 |
Total shipments (in thousands) |
3,070 |
2,952 |
2,772 |
4.0 |
10.8 |
Total shipments per day (in thousands) |
48.35 |
46.12 |
44.00 |
4.8 |
9.9 |
Total picked up revenue/cwt. |
$ 23.36 |
$ 23.32 |
$ 22.96 |
0.2 |
1.8 |
Total picked up revenue/shipment |
$ 273 |
$ 270 |
$ 273 |
1.2 |
0.2 |
Total weight/shipment (in pounds) |
1,170 |
1,159 |
1,188 |
1.0 |
(1.5) |
|
|
|
|
|
|
(a) Reconciliation of
operating revenue to total picked up revenue (in
millions): |
|
|
Operating revenue |
$ 842.1 |
$ 797.6 |
$ 756.8 |
|
|
Change in revenue deferral and other |
(2.9) |
(0.1) |
(0.9) |
|
|
Total picked up revenue |
$ 839.2 |
$ 797.5 |
$ 755.9 |
|
|
|
|
|
|
|
|
|
Regional
Transportation |
|
|
|
|
Y/Y |
Sequential |
|
2Q14 |
2Q13 |
1Q14 |
% (b) |
% (b) |
Workdays |
62.5 |
64.0 |
67.0 |
|
|
|
|
|
|
|
|
Total picked up revenue (in millions)
(a) |
$ 475.6 |
$ 445.1 |
$ 454.4 |
6.9 |
4.7 |
Total tonnage (in thousands) |
2,054 |
1,970 |
2,015 |
4.2 |
1.9 |
Total tonnage per day (in thousands) |
32.86 |
30.79 |
30.08 |
6.7 |
9.2 |
Total shipments (in thousands) |
2,807 |
2,710 |
2,706 |
3.6 |
3.7 |
Total shipments per day (in thousands) |
44.91 |
42.35 |
40.38 |
6.0 |
11.2 |
Total picked up revenue/cwt. |
$ 11.58 |
$ 11.30 |
$ 11.28 |
2.5 |
2.7 |
Total picked up revenue/shipment |
$ 169 |
$ 164 |
$ 168 |
3.2 |
0.9 |
Total weight/shipment (in pounds) |
1,463 |
1,454 |
1,490 |
0.6 |
(1.8) |
|
|
|
|
|
|
(a) Reconciliation of
operating revenue to total picked up revenue (in
millions): |
|
Operating revenue |
$ 475.5 |
$ 444.9 |
$ 454.1 |
|
|
Change in revenue deferral and other |
0.1 |
0.2 |
0.3 |
|
|
Total picked up revenue |
$ 475.6 |
$ 445.1 |
$ 454.4 |
|
|
|
|
|
|
|
|
(a) Does not equal financial
statement revenue due to revenue recognition adjustments between
accounting periods. |
(b) Percent change based on
unrounded figures and not rounded figures presented. |
|
|
|
|
|
|
|
|
YRC Worldwide Inc. |
Segment Statistics |
Annual Comparison |
|
|
|
|
|
YRC Freight |
|
YTD |
YTD |
Y/Y |
|
2Q14 |
2Q13 |
% (b) |
Workdays |
126.5 |
126.5 |
|
|
|
|
|
Total picked up revenue (in millions)
(a) |
$1,595.2 |
$1,554.4 |
2.6 |
Total tonnage (in thousands) |
3,443 |
3,315 |
3.8 |
Total tonnage per day (in thousands) |
27.21 |
26.21 |
3.8 |
Total shipments (in thousands) |
5,842 |
5,716 |
2.2 |
Total shipments per day (in thousands) |
46.18 |
45.18 |
2.2 |
Total picked up revenue/cwt. |
$ 23.17 |
$ 23.44 |
(1.2) |
Total picked up revenue/shipment |
$ 273 |
$ 272 |
0.4 |
Total weight/shipment (in pounds) |
1,179 |
1,160 |
1.6 |
|
|
|
|
(a) Reconciliation of
operating revenue to total picked up revenue (in
millions): |
Operating revenue |
$1,598.9 |
$1,551.4 |
|
Change in revenue deferral and other |
(3.7) |
3.0 |
|
Total picked up revenue |
$1,595.2 |
$1,554.4 |
|
|
|
|
|
|
Regional
Transportation |
|
YTD |
YTD |
Y/Y |
|
2Q14 |
2Q13 |
% (b) |
Workdays |
129.5 |
126.5 |
|
|
|
|
|
Total picked up revenue (in millions)
(a) |
$ 930.0 |
$ 854.1 |
8.9 |
Total tonnage (in thousands) |
4,069 |
3,802 |
7.0 |
Total tonnage per day (in thousands) |
31.42 |
30.05 |
4.5 |
Total shipments (in thousands) |
5,512 |
5,190 |
6.2 |
Total shipments per day (in thousands) |
42.57 |
41.03 |
3.7 |
Total picked up revenue/cwt. |
$ 11.43 |
$ 11.23 |
1.7 |
Total picked up revenue/shipment |
$ 169 |
$ 165 |
2.5 |
Total weight/shipment (in pounds) |
1,476 |
1,465 |
0.8 |
|
|
|
|
(a) Reconciliation of
operating revenue to total picked up revenue (in
millions): |
Operating revenue |
$ 929.6 |
$ 853.6 |
|
Change in revenue deferral and other |
0.4 |
0.5 |
|
Total picked up revenue |
$ 930.0 |
$ 854.1 |
|
|
|
|
|
(a) Does not equal financial
statement revenue due to revenue recognition adjustments between
accounting periods. |
(b) Percent change based on
unrounded figures and not rounded figures presented. |
CONTACT: Investor Contact:
Stephanie Fisher
913-696-6108
investor@yrcw.com
Media Contact:
Suzanne Dawson
LAK Public Relations, Inc.
212-329-1420
sdawson@lakpr.com
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