YRC Worldwide Inc. (Nasdaq:YRCW) today reported financial results
for the fourth quarter and for the full calendar year of 2014.
Fourth Quarter Results
Consolidated operating revenue for the fourth quarter of 2014
was $1.218 billion, a $10.0 million increase over the $1.208
billion reported for the fourth quarter of 2013. At the same time,
consolidated operating income increased $32.8 million, from an
operating loss of $1.6 million, to operating income of $31.2
million. Operating income in 2014 included a $5.8 million gain on
asset disposals compared to a $0.3 million gain on asset disposals
in 2013.
The company also reported, on a non-GAAP basis, adjusted EBITDA
of $77.0 million for the fourth quarter of 2014, a $18.2 million
increase from the $58.8 million of adjusted EBITDA reported for the
fourth quarter of 2013 (as detailed in the reconciliation
below).
YRC Freight Fourth Quarter Results
Operating revenue for the fourth quarter of 2014 for YRC Freight
was $795.5 million, an $18.8 million increase over the $776.7
million reported in the fourth quarter of 2013. At the same time,
operating income increased $39.9 million, from an operating loss of
$15.4 million, to operating income of $24.5 million, and adjusted
EBITDA increased $26.6 million, from $17.4 million in the fourth
quarter of 2013 to $44.0 million in 2014.
"During the fourth quarter of 2014, YRC Freight experienced
yield growth compared to the prior year of 5.7% including fuel
surcharge and 7.3% excluding fuel surcharge," said James Welch,
chief executive officer of YRC Worldwide. "On a year-over-year
basis during the quarter, YRC Freight achieved total revenue per
hundredweight (including fuel surcharge) increases of 4.8% in
October, 6.9% in November and 5.7% in December. The year-over-year
increase in yield continued the trend that began in the third
quarter and continued to pick up momentum, especially when compared
to the results excluding fuel surcharge and is a testament of
improving base rates and fundamental pricing. Additionally, on a
year-over-year basis, YRC Freight reported tonnage per day
decreases of 1.6% in October, 3.2% in November and 3.2% in
December. The decreases in tonnage were a result of prioritizing
yield improvement and profitability over volume.
"YRC Freight continues to improve profitability by executing on
its operational initiatives and significantly increasing technology
investments," continued Welch. "In 2015, the lower price of diesel
and the resulting lower fuel surcharge revenue will be a headwind
for the entire LTL industry. Going forward, we will continue
growing base rates and getting paid for the service we provide
while continuing to realize the benefits of investments already
made in technology, safety, driver recruitment and employee
engagement," stated Welch.
Regional Transportation Fourth Quarter
Results
Operating revenue for the fourth quarter of 2014 for Regional
Transportation was $422.2 million, an $8.8 million decrease from
the $431.0 million reported in the fourth quarter of 2013. At the
same time, operating income decreased $12.1 million, from operating
income of $22.7 million to operating income of $10.6 million, and
adjusted EBITDA decreased $7.5 million, from $40.7 million in the
fourth quarter of 2013 to $33.2 million in 2014.
"The fourth quarter results for the Regional segment were
negatively impacted by 4 fewer workdays compared to the prior year
and approximately $10.2 million of additional year-over-year
expense related to liability claims and an additional $2.0 million
of workers' compensation expense," said Welch. "We pride ourselves
on getting our employees home safely every night, and in 2015, we
will increase our intensity and investments around our safety
initiatives, not just at the Regional companies, but across the
entire organization.
"During the quarter, the Regional companies experienced yield
growth compared to the prior year of 3.5% including fuel surcharge
and 4.8% excluding fuel surcharge," continued Welch. "On a
monthly year-over-year basis, the Regionals achieved total revenue
per hundredweight (including fuel surcharge) increases of 2.7% in
October, 2.8% in November and 4.9% in December, and reported
tonnage per day increases of 0.6% in October and 2.5% in November
and a 0.3% decrease in December," said Welch. "Improving base
rates, operating efficiencies and safety performance will continue
to be a focus for the Regional companies as they too will be
challenged with the lower fuel price environment," concluded
Welch.
Key Segment Information –
fourth quarter 2014 compared to the fourth quarter of 2013
YRC Freight |
2014 |
2013 |
Percent Change |
Workdays |
61.5 |
62.0 |
|
Operating revenues (in millions) |
$ 795.5 |
$ 776.7 |
2.4% |
Operating income (loss) (in millions) |
24.5 |
(15.4) |
NM |
Operating ratio |
96.9 |
102.0 |
5.1pp |
Total tonnage per day (in thousands) |
26.25 |
26.97 |
(2.7%) |
Total shipments per day (in thousands) |
43.96 |
45.17 |
(2.7%) |
Revenue per hundredweight incl FSC |
$ 24.30 |
$ 22.98 |
5.7% |
Revenue per hundredweight excl FSC |
$ 20.61 |
$ 19.20 |
7.3% |
Revenue per shipment incl FSC |
$ 290 |
$ 274 |
5.8% |
Revenue per shipment excl FSC |
$ 246 |
$ 229 |
7.4% |
|
|
|
|
|
|
|
|
Regional
Transportation |
2014 |
2013 |
Percent Change |
Workdays |
58.5 |
62.5 |
|
Operating revenues (in millions) |
$ 422.2 |
$ 431.0 |
(2.0%) |
Operating income (in millions) |
10.6 |
22.7 |
(53.3%) |
Operating ratio |
97.5 |
94.7 |
(2.8pp) |
Total tonnage per day (in thousands) |
30.61 |
30.32 |
1.0% |
Total shipments per day (in thousands) |
41.69 |
41.37 |
0.8% |
Revenue per hundredweight incl FSC |
$ 11.79 |
$ 11.40 |
3.5% |
Revenue per hundredweight excl FSC |
$ 10.08 |
$ 9.63 |
4.8% |
Revenue per shipment incl FSC |
$ 173 |
$ 167 |
3.7% |
Revenue per shipment excl FSC |
$ 148 |
$ 141 |
5.0% |
Full Year Results
Consolidated operating revenue for the year ended December 31,
2014 was $5.069 billion, a $204 million increase over the $4.865
billion reported for the year ended December 31, 2013. At the
same time, consolidated operating income increased $17.1 million
from $28.4 million in 2013 to $45.5 million in 2014. Operating
income in 2014 included an $11.9 million gain on asset disposals
compared to a $2.2 million gain on asset disposals in 2013.
On a non-GAAP basis, the company reported adjusted EBITDA for
the year ended December 31, 2014 of $244.5 million, a $10.4 million
decrease from the $254.9 million adjusted EBITDA reported during
2013 (as detailed in the reconciliation below).
Key Segment Information – full
year 2014 compared to full year 2013
YRC Freight |
2014 |
2013 |
Percent Change |
Workdays |
252.0 |
252.5 |
|
Operating revenues (in millions) |
$ 3,237.4 |
$ 3,136.8 |
3.2% |
Operating income (loss) (in millions) |
0.5 |
(31.2) |
NM |
Operating ratio |
100.0 |
101.0 |
1.0pp |
Total tonnage per day (in thousands) |
27.01 |
26.60 |
1.5% |
Total shipments per day (in thousands) |
45.64 |
45.32 |
0.7% |
Revenue per hundredweight incl FSC |
$ 23.65 |
$ 23.27 |
1.6% |
Revenue per hundredweight excl FSC |
$ 19.80 |
$ 19.35 |
2.3% |
Revenue per shipment incl FSC |
$ 280 |
$ 273 |
2.5% |
Revenue per shipment excl FSC |
$ 234 |
$ 227 |
3.2% |
|
|
|
|
|
|
|
|
Regional
Transportation |
2014 |
2013 |
Percent Change |
Workdays |
252.0 |
251.5 |
|
Operating revenues (in millions) |
$ 1,831.4 |
$ 1,728.6 |
5.9% |
Operating income (in millions) |
66.1 |
79.9 |
(17.3%) |
Operating ratio |
96.4 |
95.4 |
(1.0pp) |
Total tonnage per day (in thousands) |
31.37 |
30.33 |
3.4% |
Total shipments per day (in thousands) |
42.64 |
41.56 |
2.6% |
Revenue per hundredweight incl FSC |
$ 11.59 |
$ 11.34 |
2.2% |
Revenue per hundredweight excl FSC |
$ 9.80 |
$ 9.55 |
2.6% |
Revenue per shipment incl FSC |
$ 171 |
$ 165 |
3.0% |
Revenue per shipment excl FSC |
$ 144 |
$ 139 |
3.4% |
Liquidity
As of December 31, 2014, the company had cash and cash
equivalents and amounts able to be drawn under its ABL facility
totaling $198.2 million. For comparison, as of September 30,
2014, cash and cash equivalents and amounts able to be drawn
totaled $212.9 million. For the year ended December 31,
2014, cash provided by operating activities was $28.5 million as
compared to $12.1 million for the year ended December 31,
2013.
Review of Financial Results
YRCW will host a conference call with the investment community
today, Thursday, February 5, 2015, 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 its 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 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 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) |
|
|
|
|
December 31, |
December 31, |
|
2014 |
2013 |
ASSETS |
(Unaudited) |
|
|
|
|
CURRENT ASSETS: |
|
|
Cash and cash equivalents |
$ 171.1 |
$ 176.3 |
Restricted amounts held in
escrow |
28.9 |
90.1 |
Accounts receivable, net |
470.5 |
460.9 |
Prepaid expenses and other |
81.2 |
70.6 |
Total current assets |
751.7 |
797.9 |
|
|
|
PROPERTY AND EQUIPMENT: |
|
|
Cost |
2,819.6 |
2,844.2 |
Less - accumulated
depreciation |
(1,825.4) |
(1,754.4) |
Net property and equipment |
994.2 |
1,089.8 |
|
|
|
OTHER ASSETS: |
|
|
Intangibles, net |
60.3 |
79.8 |
Restricted amounts held in
escrow |
60.2 |
0.6 |
Deferred income taxes, net |
21.4 |
18.3 |
Other assets |
97.2 |
78.5 |
Total assets |
$ 1,985.0 |
$ 2,064.9 |
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
DEFICIT |
|
|
|
|
CURRENT LIABILITIES: |
|
|
Accounts payable |
$ 172.2 |
$ 176.7 |
Wages, vacations, and
employees' benefits |
176.6 |
191.2 |
Deferred income taxes, net |
21.4 |
18.6 |
Other current and accrued
liabilities |
202.2 |
189.5 |
Current maturities of long-term
debt |
31.1 |
8.6 |
Total current liabilities |
603.5 |
584.6 |
|
|
|
OTHER LIABILITIES: |
|
|
Long-term debt, less current
portion |
1,078.8 |
1,354.8 |
Deferred income taxes, net |
1.5 |
1.8 |
Pension and postretirement |
460.3 |
384.8 |
Claims and other
liabilities |
315.2 |
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 |
2,290.9 |
1,964.4 |
Accumulated deficit |
(2,240.0) |
(2,154.2) |
Accumulated other comprehensive
loss |
(432.8) |
(315.0) |
Treasury stock, at cost (410
shares) |
(92.7) |
(92.7) |
Total shareholders'
deficit |
(474.3) |
(597.4) |
Total liabilities and
shareholders' deficit |
$ 1,985.0 |
$ 2,064.9 |
|
|
|
|
|
|
|
|
|
|
STATEMENTS OF CONSOLIDATED
COMPREHENSIVE INCOME (LOSS) |
YRC Worldwide Inc. and
Subsidiaries |
For the Three and Twelve Months
Ended December 31 |
(Amounts in millions except per
share data, shares in thousands) |
(Unaudited) |
|
|
|
|
|
|
Three Months |
Twelve Months |
|
2014 |
2013 |
2014 |
2013 |
|
|
|
|
|
OPERATING REVENUE |
$ 1,217.7 |
$ 1,207.7 |
$ 5,068.8 |
$ 4,865.4 |
|
|
|
|
|
OPERATING EXPENSES: |
|
|
|
|
Salaries, wages and employees'
benefits |
688.9 |
692.8 |
2,901.2 |
2,803.1 |
Operating expenses and
supplies |
250.0 |
278.9 |
1,110.7 |
1,116.9 |
Purchased transportation |
141.8 |
132.9 |
590.9 |
512.5 |
Depreciation and
amortization |
40.7 |
41.9 |
163.6 |
172.3 |
Other operating expenses |
70.9 |
63.1 |
268.8 |
234.4 |
Gains on property disposals,
net |
(5.8) |
(0.3) |
(11.9) |
(2.2) |
Total operating expenses |
1,186.5 |
1,209.3 |
5,023.3 |
4,837.0 |
OPERATING INCOME (LOSS) |
31.2 |
(1.6) |
45.5 |
28.4 |
|
|
|
|
|
NONOPERATING (INCOME) EXPENSES: |
|
|
|
|
Interest expense |
27.5 |
39.7 |
150.0 |
163.9 |
Gain on extinguishment of
debt |
-- |
-- |
(11.2) |
-- |
Other, net |
(2.8) |
(3.0) |
(9.5) |
(6.0) |
Nonoperating expenses, net |
24.7 |
36.7 |
129.3 |
157.9 |
|
|
|
|
|
INCOME (LOSS) BEFORE INCOME TAXES |
6.5 |
(38.3) |
(83.8) |
(129.5) |
INCOME TAX (BENEFIT) EXPENSE |
0.3 |
(38.7) |
(16.1) |
(45.9) |
NET INCOME (LOSS) |
6.2 |
0.4 |
(67.7) |
(83.6) |
AMORTIZATION OF BENEFICIAL CONVERSION FEATURE
ON PREFERRED STOCK |
-- |
-- |
(18.1) |
-- |
NET INCOME (LOSS)
ATTRIBUTABLE TO COMMON SHAREHOLDERS |
$ 6.2 |
$ 0.4 |
$ (85.8) |
$ (83.6) |
|
|
|
|
|
NET INCOME (LOSS) |
$ 6.2 |
$ 0.4 |
$ (67.7) |
$ (83.6) |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF
TAX |
(121.7) |
67.6 |
(117.8) |
77.4 |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE
TO YRC WORLDWIDE INC. |
$ (115.5) |
$ 68.0 |
$ (185.5) |
$ (6.2) |
|
|
|
|
|
AVERAGE COMMON SHARES OUTSTANDING-BASIC |
30,659 |
10,161 |
28,592 |
9,332 |
AVERAGE COMMON SHARES
OUTSTANDING-DILUTED |
31,974 |
14,884 |
28,592 |
9,332 |
|
|
|
|
|
NET INCOME (LOSS) PER SHARE - BASIC |
$ 0.20 |
$ 0.04 |
$ (3.00) |
$ (8.96) |
NET INCOME (LOSS) PER SHARE - DILUTED |
$ 0.16 |
$ (1.71) |
$ (3.00) |
$ (8.96) |
|
|
|
|
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|
STATEMENTS OF CONSOLIDATED CASH
FLOWS |
YRC Worldwide Inc. and
Subsidiaries |
For the Years Ended
December 31 |
(Amounts in millions) |
(unaudited) |
|
|
|
|
2014 |
2013 |
|
|
|
OPERATING ACTIVITIES: |
|
|
Net loss |
$ (67.7) |
$ (83.6) |
Noncash items included in net
loss: |
|
|
Depreciation and
amortization |
163.6 |
172.3 |
Gain on extinguishment of
debt |
(11.2) |
-- |
Paid-in-kind interest on Series
A Notes and Series B Notes |
14.3 |
29.9 |
Amortization of deferred debt
costs |
8.5 |
7.9 |
Amortization of premiums and
discounts on debt |
27.5 |
7.7 |
Equity based compensation
expense |
14.0 |
5.8 |
Deferred income tax benefit,
net |
(0.2) |
(42.4) |
Gains on property disposals,
net |
(11.9) |
(2.2) |
Other noncash items, net |
(5.9) |
(3.6) |
Changes in assets and
liabilities, net: |
|
|
Accounts receivable |
(11.1) |
(4.6) |
Accounts payable |
(5.7) |
13.3 |
Other operating assets |
0.3 |
3.9 |
Other operating
liabilities |
(86.0) |
(92.3) |
Net cash provided by operating
activities |
28.5 |
12.1 |
|
|
|
INVESTING ACTIVITIES: |
|
|
Acquisition of property and
equipment |
(69.2) |
(66.9) |
Proceeds from disposal of
property and equipment |
20.8 |
9.8 |
Restricted escrow receipts |
90.7 |
31.8 |
Restricted escrow deposits |
(89.1) |
-- |
Other |
5.2 |
1.8 |
Net cash used in investing
activities |
(41.6) |
(23.5) |
|
|
|
FINANCING ACTIVITIES: |
|
|
Issuance of long-term debt |
696.8 |
0.3 |
Repayment of long-term
debt |
(892.7) |
(9.2) |
Debt issuance costs |
(29.1) |
(12.1) |
Equity issuance costs |
(17.1) |
-- |
Equity issuance proceeds |
250.0 |
-- |
Net cash provided by (used in)
financing activities |
7.9 |
(21.0) |
NET DECREASE IN CASH AND CASH
EQUIVALENTS |
(5.2) |
(32.4) |
CASH AND CASH EQUIVALENTS, BEGINNING OF
PERIOD |
176.3 |
208.7 |
CASH AND CASH EQUIVALENTS, END OF PERIOD |
$ 171.1 |
$ 176.3 |
|
|
|
SUPPLEMENTAL CASH FLOW INFORMATION |
|
|
Interest paid |
$ (129.1) |
$ (120.5) |
Letter of credit fees paid |
(8.7) |
(34.1) |
Income tax refund, net |
16.1 |
8.8 |
Debt redeemed for equity consideration |
-- |
35.3 |
Lease financing transactions |
3.8 |
1.2 |
|
|
|
|
|
|
|
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|
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|
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SUPPLEMENTAL FINANCIAL
INFORMATION |
YRC Worldwide Inc. and
Subsidiaries |
For the Three and Twelve
Months Ended December 31 |
(Amounts in millions) |
(Unaudited) |
|
|
|
|
|
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SEGMENT INFORMATION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months |
Twelve
Months |
|
2014 |
2013 |
% |
2014 |
2013 |
% |
|
|
|
|
|
|
|
Operating revenue: |
|
|
|
|
|
|
YRC Freight |
$ 795.5 |
$ 776.7 |
2.4 |
$ 3,237.4 |
$ 3,136.8 |
3.2 |
Regional Transportation |
422.2 |
431.0 |
(2.0) |
1,831.4 |
1,728.6 |
5.9 |
Other, net of eliminations |
-- |
-- |
|
-- |
-- |
|
Consolidated |
1,217.7 |
1,207.7 |
0.8 |
5,068.8 |
4,865.4 |
4.2 |
|
|
|
|
|
|
|
Operating income (loss): |
|
|
|
|
|
|
YRC Freight |
24.5 |
(15.4) |
|
0.5 |
(31.2) |
|
Regional Transportation |
10.6 |
22.7 |
|
66.1 |
79.9 |
|
Corporate and other |
(3.9) |
(8.9) |
|
(21.1) |
(20.3) |
|
Consolidated |
$ 31.2 |
$ (1.6) |
|
$ 45.5 |
$ 28.4 |
|
|
|
|
|
|
|
|
Operating ratio: |
|
|
|
|
|
|
YRC Freight |
96.9% |
102.0% |
|
100.0% |
101.0% |
|
Regional Transportation |
97.5% |
94.7% |
|
96.4% |
95.4% |
|
Consolidated |
97.4% |
100.1% |
|
99.1% |
99.4% |
|
|
|
|
|
|
|
|
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 December
31, 2014 |
|
|
Par Value |
Discount |
Value |
|
New term loan |
|
|
$ 693.0 |
$ (5.7) |
$ 687.3 |
|
ABL facility -
(capacity $450.0M; borrowing base $445.5M; availability $71.2M;
amount able to be drawn $27.1M) |
-- |
-- |
-- |
|
Series B Notes |
|
|
17.8 |
(0.7) |
17.1 |
|
Secured Second A&R CDA |
|
|
47.0 |
-- |
47.0 |
|
Unsecured Second A&R
CDA |
|
|
73.2 |
-- |
73.2 |
|
Lease financing
obligations |
|
|
285.1 |
-- |
285.1 |
|
Other |
|
|
0.2 |
-- |
0.2 |
|
Total
debt |
|
|
$ 1,116.3 |
$ (6.4) |
$ 1,109.9 |
|
|
|
|
|
|
|
|
|
|
|
|
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 $175.0M; 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 Twelve
Months Ended December 31 |
(Amounts in millions) |
(Unaudited) |
|
|
|
|
|
|
Three
Months |
Twelve
Months |
|
2014 |
2013 |
2014 |
2013 |
Reconciliation of operating income
(loss) to adjusted EBITDA: |
|
|
|
|
Operating income (loss) |
$ 31.2 |
$ (1.6) |
$ 45.5 |
$ 28.4 |
Depreciation and
amortization |
40.7 |
41.9 |
163.6 |
172.3 |
Gains on property disposals,
net |
(5.8) |
(0.3) |
(11.9) |
(2.2) |
Letter of credit expense |
2.3 |
8.1 |
12.1 |
33.9 |
Restructuring professional
fees |
-- |
6.0 |
4.2 |
12.0 |
Permitted dispositions and
other |
-- |
1.7 |
1.8 |
1.7 |
Equity based compensation
expense |
3.2 |
1.3 |
14.3 |
5.8 |
Amortization of ratification
bonus |
5.2 |
-- |
15.6 |
-- |
Other nonoperating, net
(a) |
0.2 |
1.7 |
(0.7) |
3.0 |
Adjusted EBITDA |
$ 77.0 |
$ 58.8 |
$ 244.5 |
$ 254.9 |
|
|
|
|
|
(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 |
Twelve
Months |
Adjusted EBITDA by
segment: |
2014 |
2013 |
2014 |
2013 |
YRC Freight |
$ 44.0 |
$ 17.4 |
$ 99.8 |
$ 105.2 |
Regional
Transportation |
33.2 |
40.7 |
144.4 |
150.5 |
Corporate and other |
(0.2) |
0.7 |
0.3 |
(0.8) |
Adjusted EBITDA |
$ 77.0 |
$ 58.8 |
$ 244.5 |
$ 254.9 |
|
|
|
|
|
|
Three
Months |
Twelve
Months |
|
2014 |
2013 |
2014 |
2013 |
Reconciliation of adjusted EBITDA to
adjusted free cash flow (deficit): |
|
|
|
|
Adjusted EBITDA |
$ 77.0 |
$ 58.8 |
$ 244.5 |
$ 254.9 |
Total restructuring
professional fees |
-- |
(6.0) |
(4.2) |
(12.0) |
Cash paid for interest |
(25.8) |
(30.1) |
(129.1) |
(120.5) |
Cash paid for letter of credit
fees |
(2.3) |
(8.1) |
(8.7) |
(34.1) |
Working capital cash flows
excluding income tax, net |
9.1 |
2.5 |
(90.1) |
(85.0) |
Net cash provided by (used) in operating
activities before income taxes |
58.0 |
17.1 |
12.4 |
3.3 |
Cash (paid for) received from
income taxes, net |
(3.2) |
(2.0) |
16.1 |
8.8 |
Net cash provided by (used in) operating
activities |
54.8 |
15.1 |
28.5 |
12.1 |
Acquisition of property and
equipment |
(21.6) |
(10.4) |
(69.2) |
(66.9) |
Total restructuring
professional fees |
-- |
6.0 |
4.2 |
12.0 |
Adjusted free cash flow (deficit) |
$ 33.2 |
$ 10.7 |
$ (36.5) |
$ (42.8) |
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL FINANCIAL
INFORMATION |
YRC Worldwide Inc. and
Subsidiaries |
For the
Three and Twelve Months Ended December 31 |
(Amounts in millions) |
(Unaudited) |
|
|
|
|
|
|
Three
Months |
Twelve
Months |
YRC Freight segment |
2014 |
2013 |
2014 |
2013 |
Reconciliation of operating income
(loss) to adjusted EBITDA: |
|
|
|
|
Operating income (loss) |
$ 24.5 |
$ (15.4) |
$ 0.5 |
$ (31.2) |
Depreciation and
amortization |
23.8 |
25.8 |
98.0 |
109.1 |
Gains on property disposals,
net |
(9.1) |
(0.4) |
(15.9) |
(3.0) |
Letter of credit expense |
1.5 |
5.7 |
8.3 |
25.8 |
Amortization of ratification
bonus |
3.3 |
-- |
10.0 |
-- |
Other nonoperating, net
(a) |
-- |
1.7 |
(1.1) |
4.5 |
Adjusted EBITDA |
$ 44.0 |
$ 17.4 |
$ 99.8 |
$ 105.2 |
|
|
|
|
|
(a) As required under our New
Term Loan, other nonoperating, net shown above does not include the
impact of non-cash foreign currency gains or losses. |
|
|
|
|
|
|
Three
Months |
Twelve
Months |
Regional Transportation
segment |
2014 |
2013 |
2014 |
2013 |
Reconciliation of operating income to
adjusted EBITDA: |
|
|
|
|
Operating income |
$ 10.6 |
$ 22.7 |
$ 66.1 |
$ 79.9 |
Depreciation and
amortization |
16.8 |
16.1 |
65.8 |
63.1 |
Losses on property disposals,
net |
3.3 |
0.1 |
4.0 |
0.6 |
Letter of credit expense |
0.6 |
1.9 |
2.9 |
6.8 |
Amortization of ratification
bonus |
1.9 |
-- |
5.6 |
-- |
Other nonoperating, net |
-- |
(0.1) |
-- |
0.1 |
Adjusted EBITDA |
$ 33.2 |
$ 40.7 |
$ 144.4 |
$ 150.5 |
|
|
|
|
|
|
Three
Months |
Twelve
Months |
Corporate and other
segment |
2014 |
2013 |
2014 |
2013 |
Reconciliation of operating loss to
adjusted EBITDA: |
|
|
|
|
Operating loss |
$ (3.9) |
$ (8.9) |
$ (21.1) |
$ (20.3) |
Depreciation and
amortization |
0.1 |
-- |
(0.2) |
0.1 |
Losses on property disposals,
net |
-- |
-- |
-- |
0.2 |
Letter of credit expense |
0.2 |
0.5 |
0.9 |
1.3 |
Restructuring professional
fees |
-- |
6.0 |
4.2 |
12.0 |
Permitted dispositions and
other |
-- |
1.7 |
1.8 |
1.7 |
Equity based compensation
expense |
3.2 |
1.3 |
14.3 |
5.8 |
Other nonoperating, net
(a) |
0.2 |
0.1 |
0.4 |
(1.6) |
Adjusted EBITDA |
$ (0.2) |
$ 0.7 |
$ 0.3 |
$ (0.8) |
|
|
|
|
|
(a) As required under our New
Term Loan, other nonoperating, net shown above does not include 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 |
|
4Q14 |
4Q13 |
3Q14 |
% (b) |
% (b) |
Workdays |
61.5 |
62.0 |
64.0 |
|
|
|
|
|
|
|
|
Total picked up revenue (in millions)
(a) |
$ 784.4 |
$ 768.4 |
$ 840.1 |
2.1 |
(6.6) |
Total tonnage (in thousands) |
1,614 |
1,672 |
1,750 |
(3.5) |
(7.8) |
Total tonnage per day (in thousands) |
26.25 |
26.97 |
27.34 |
(2.7) |
(4.0) |
Total shipments (in thousands) |
2,703 |
2,801 |
2,957 |
(3.5) |
(8.6) |
Total shipments per day (in thousands) |
43.96 |
45.17 |
46.20 |
(2.7) |
(4.9) |
Total picked up revenue/cwt. |
$ 24.30 |
$ 22.98 |
$ 24.00 |
5.7 |
1.2 |
Total picked up revenue/cwt. (excl. FSC) |
$ 20.61 |
$ 19.20 |
$ 20.08 |
7.3 |
2.6 |
Total picked up revenue/shipment |
$ 290 |
$ 274 |
$ 284 |
5.8 |
2.1 |
Total picked up revenue/shipment (excl.
FSC) |
$ 246 |
$ 229 |
$ 238 |
7.4 |
3.6 |
Total weight/shipment (in pounds) |
1,194 |
1,194 |
1,184 |
0.0 |
0.9 |
|
|
|
|
|
|
(a) Reconciliation of operating
revenue to total picked up revenue (in millions): |
|
|
|
|
|
Operating revenue |
$ 795.5 |
$ 776.7 |
$ 843.0 |
|
|
Change in revenue deferral and other |
(11.1) |
(8.3) |
(2.9) |
|
|
Total picked up revenue |
$ 784.4 |
$ 768.4 |
$ 840.1 |
|
|
|
|
|
|
|
|
|
Regional
Transportation |
|
|
|
|
Y/Y |
Sequential |
|
4Q14 |
4Q13 |
3Q14 |
% (b) |
% (b) |
Workdays |
58.5 |
62.5 |
64.0 |
|
|
|
|
|
|
|
|
Total picked up revenue (in millions)
(a) |
$ 422.4 |
$ 431.9 |
$ 479.9 |
(2.2) |
(12.0) |
Total tonnage (in thousands) |
1,791 |
1,895 |
2,046 |
(5.5) |
(12.5) |
Total tonnage per day (in thousands) |
30.61 |
30.32 |
31.97 |
1.0 |
(4.3) |
Total shipments (in thousands) |
2,439 |
2,586 |
2,794 |
(5.7) |
(12.7) |
Total shipments per day (in thousands) |
41.69 |
41.37 |
43.65 |
0.8 |
(4.5) |
Total picked up revenue/cwt. |
$ 11.79 |
$ 11.40 |
$ 11.73 |
3.5 |
0.6 |
Total picked up revenue/cwt. (excl. FSC) |
$ 10.08 |
$ 9.63 |
$ 9.91 |
4.8 |
1.7 |
Total picked up revenue/shipment |
$ 173 |
$ 167 |
$ 172 |
3.7 |
0.8 |
Total picked up revenue/shipment (excl.
FSC) |
$ 148 |
$ 141 |
$ 145 |
5.0 |
2.0 |
Total weight/shipment (in pounds) |
1,468 |
1,466 |
1,465 |
0.2 |
0.2 |
|
|
|
|
|
|
(a) Reconciliation of operating
revenue to total picked up revenue (in millions): |
|
|
|
|
|
Operating revenue |
$ 422.2 |
$ 431.0 |
$ 479.6 |
|
|
Change in revenue deferral and other |
0.2 |
0.9 |
0.3 |
|
|
Total picked up revenue |
$ 422.4 |
$ 431.9 |
$ 479.9 |
|
|
|
|
|
|
|
|
(a) Does not equal financial
statement revenue due to revenue recognition adjustments between
accounting periods. |
(b) Percent change based on
unrounded figures and not the rounded figures presented. |
|
|
|
|
|
|
|
|
YRC Worldwide
Inc. |
Segment
Statistics |
Full
Year Comparison |
|
|
|
|
|
YRC Freight |
|
|
|
Y/Y |
|
2014 |
2013 |
% (b) |
Workdays |
252.0 |
252.5 |
|
|
|
|
|
Total picked up revenue (in millions)
(a) |
$3,219.6 |
$3,126.5 |
3.0 |
Total tonnage (in thousands) |
6,807 |
6,717 |
1.3 |
Total tonnage per day (in thousands) |
27.01 |
26.60 |
1.5 |
Total shipments (in thousands) |
11,502 |
11,444 |
0.5 |
Total shipments per day (in thousands) |
45.64 |
45.32 |
0.7 |
Total picked up revenue/cwt. |
$ 23.65 |
$ 23.27 |
1.6 |
Total picked up revenue/cwt. (excl. FSC) |
$ 19.80 |
$ 19.35 |
2.3 |
Total picked up revenue/shipment |
$ 280 |
$ 273 |
2.5 |
Total picked up revenue/shipment (excl.
FSC) |
$ 234 |
$ 227 |
3.2 |
Total weight/shipment (in pounds) |
1,184 |
1,174 |
0.8 |
|
|
|
|
(a) Reconciliation of operating
revenue to total picked up revenue (in millions): |
|
|
|
Operating revenue |
$3,237.4 |
$3,136.8 |
|
Change in revenue deferral and other |
(17.8) |
(10.3) |
|
Total picked up revenue |
$3,219.6 |
$3,126.5 |
|
|
|
|
|
|
Regional
Transportation |
|
|
|
Y/Y |
|
2014 |
2013 |
% (b) |
Workdays |
252.0 |
251.5 |
|
|
|
|
|
Total picked up revenue (in millions)
(a) |
$1,832.3 |
$1,729.6 |
5.9 |
Total tonnage (in thousands) |
7,906 |
7,628 |
3.6 |
Total tonnage per day (in thousands) |
31.37 |
30.33 |
3.4 |
Total shipments (in thousands) |
10,745 |
10,452 |
2.8 |
Total shipments per day (in thousands) |
42.64 |
41.56 |
2.6 |
Total picked up revenue/cwt. |
$ 11.59 |
$ 11.34 |
2.2 |
Total picked up revenue/cwt. (excl. FSC) |
$ 9.80 |
$ 9.55 |
2.6 |
Total picked up revenue/shipment |
$ 171 |
$ 165 |
3.0 |
Total picked up revenue/shipment (excl.
FSC) |
$ 144 |
$ 139 |
3.4 |
Total weight/shipment (in pounds) |
1,471 |
1,460 |
0.8 |
|
|
|
|
(a) Reconciliation of operating
revenue to total picked up revenue (in millions): |
|
|
|
Operating revenue |
$1,831.4 |
$1,728.6 |
|
Change in revenue deferral and other |
0.9 |
1.0 |
|
Total picked up revenue |
$1,832.3 |
$1,729.6 |
|
|
|
|
|
(a) Does not equal financial
statement revenue due to revenue recognition adjustments between
accounting periods. |
(b) Percent change based on
unrounded figures and not the 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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