Full-year 2015 Adjusted EBITDA increased
to $333.3 million, a 36% improvement compared to 2014
YRC Worldwide Inc. (NASDAQ:YRCW) reported consolidated operating
revenue for the fourth quarter 2015 of $1.143 billion with a
consolidated operating loss of $15.3 million, which included a
non-union pension settlement charge of $28.7 million and a $0.4
million loss on property disposals. As a comparison, the company
reported consolidated operating revenue of $1.218 billion for the
fourth quarter 2014 with consolidated operating income of $31.2
million, which included a $5.8 million gain on property disposals.
Consolidated operating revenue for the year
ended December 31, 2015 was $4.832 billion with consolidated
operating income of $93.0 million, which included a $1.9 million
loss on property disposals and the settlement charge referenced
above. This compares to full-year 2014 consolidated operating
revenue of $5.069 billion with consolidated operating income of
$45.5 million, which included an $11.9 million gain on property
disposals.
The fourth quarter 2015 settlement charge was
the result of an increase in lump sum benefit payments under YRC
Freight’s non-union pension plans. As part of the company’s
long-term strategy to continue derisking its balance sheet, YRC
Freight amended its domestic pension plans and offered a voluntary
lump sum payment option in an effort to reduce its long-term
pension obligations and ongoing annual expense. The lump sum
benefit payments were funded from existing pension plan assets and
thus did not impact the company’s cash balance nor liquidity. The
settlement charge is a non-cash expense and is classified in YRC
Freight’s salaries, wages and employee benefits in the accompanying
statements of consolidated comprehensive income (loss). However,
per the terms of the company’s Term Loan Agreement, it is excluded
when calculating Adjusted EBITDA.
Financial Highlights
- On a non-GAAP basis, Adjusted EBITDA for full-year 2015
increased to $333.3 million, an improvement of $88.8 million from
the $244.5 million reported in 2014 (as detailed in the
reconciliation below). Adjusted EBITDA for the fourth quarter 2015
was $66.0 million compared to $77.0 million in 2014.
- Full-year 2015 operating income more than doubled to $93.0
million from $45.5 million in 2014. The company reported a fourth
quarter 2015 operating loss of $15.3 million compared to operating
income of $31.2 million in 2014. The fourth quarter 2015 results
were impacted by the $28.7 million non-union pension settlement
charge.
- Improved yield from continued pricing discipline contributed to
an operating ratio of 98.1 for full-year 2015 on a consolidated
basis. YRC Freight improved its full-year 2015 operating ratio to
99.4 even after including the impact of the non-union pension
settlement charge. Excluding the non-union pension settlement
charge, YRC Freight’s adjusted operating ratio is 98.5. For 2015,
the Regional segment reported an operating ratio of
95.2.
- Eligible union employees at Holland, Reddaway and New Penn (the
Regional carriers) will receive a profit sharing bonus equal to 1%
of their 2015 W-2 earnings in conjunction with the improved
operating ratio reported for 2015.
- The total debt-to-Adjusted EBITDA ratio improved from 4.57
times just 12 months ago to 3.25 times in the fourth quarter 2015.
- Reinvestment in the business continued in 2015 with $108.0
million in capital expenditures and new operating leases for
revenue equipment that have a capital value equivalent of $131.7
million, for a total of $239.7 million. This represents a $98.1
million increase over the $141.6 million investment in 2014. The
vast majority of the investment was in tractors, trailers and
technology.
Operational Highlights
- The company maintained its strategy of prioritizing freight
mix, yield improvements and profitability over market share and
tonnage growth.
- Fourth quarter 2015 tonnage per day decreased 6.8% at YRC
Freight and 2.6% at the Regional segment compared to the fourth
quarter 2014.
- For the full-year 2015, tonnage per day decreased 5.8% at YRC
Freight and 1.9% at the Regional segment compared to 2014.
- At YRC Freight, excluding fuel surcharge, fourth quarter 2015
revenue per shipment increased 4.4% and revenue per hundredweight
increased by 4.2% when compared to the same period in 2014.
Including fuel surcharge, revenue per shipment decreased 1.5% and
revenue per hundredweight decreased 1.6%.
- Excluding fuel surcharge, full-year 2015 revenue per shipment
increased 7.7% at YRC Freight and revenue per hundredweight
increased by 6.1% when compared to 2014. Including fuel surcharge,
revenue per shipment increased 1.7% and revenue per hundredweight
increased 0.3%.
- At the Regional segment, excluding fuel surcharge, fourth
quarter 2015 revenue per shipment increased 3.4% and revenue per
hundredweight increased by 3.3% compared 2014. Including fuel
surcharge, revenue per shipment decreased 2.0% and revenue per
hundredweight decreased 2.2%.
- Excluding fuel surcharge, full-year 2015 revenue per shipment
increased 5.6% at the Regional segment and revenue per
hundredweight increased by 4.6% compared to 2014. Including fuel
surcharge, revenue per shipment increased 0.2% and revenue per
hundredweight decreased 0.7%.
- Workers’ compensation expense decreased by $20.8 million in
2015 when compared to 2014 due to decreased claim frequency driven
by safety initiatives and favorable development of prior year
claims. The fourth quarter 2015 expense decreased $5.9 million
compared to the fourth quarter of 2014.
Liquidity Update
- At December 31, 2015, the company had cash, cash equivalents
and Managed Accessibility under its ABL facility totaling $209.3
million. For comparison, as of December 31, 2014, cash and cash
equivalents and amounts able to be drawn totaled $198.2
million.
- For the full-year 2015, cash provided by operating activities
was $140.8 million as compared to cash provided by operating
activities of $28.5 million in 2014, an improvement of $112.3
million.
“In 2015, we successfully executed our strategy
of improving price, freight mix and profitability over volume and
market share while lowering our consolidated operating ratio to
98.1,” said James Welch, chief executive officer of YRC Worldwide.
“Despite the challenges of decreasing fuel surcharge revenue and a
flattening economy in the second half of the year, our full-year
operating income more than doubled prior year results even after
the impact of a non-cash pension settlement charge,” stated
Welch.
Welch continued, “For the year, our capital
expenditures combined with the capital equivalent value of new
operating leases for revenue equipment increased to 5.0% of
consolidated revenue. We expect continued investments in safety,
revenue equipment and technology to enhance operational
efficiencies today and into the foreseeable future. We were able to
invest back into the business and still improve our liquidity
during the year, but we could not have made these investments nor
achieved these results without our employees, and I am extremely
proud of their support and hard work. Hard work matters, and in
this case, so do results, and I am proud of our employees that
drove the improved operating performance at the Regional segment
and will receive the profit sharing bonus. This bonus not only
solidifies our commitment to reward our employees when they perform
but also illustrates the fact that the better they perform, the
better the company performs, the more they can make.
“We would obviously like for the freight
environment to be better and improve throughout 2016. We will stay
the course and remain focused on providing our customers excellent
service, improving our freight mix and profitability which we
believe ultimately drives long-term shareholder value,” concluded
Welch.
Key Segment Information –
fourth quarter 2015 compared to the fourth quarter of 2014
YRC Freight |
|
|
2015 |
|
|
|
2014 |
|
|
Percent Change |
Workdays |
|
|
61.5 |
|
|
|
61.5 |
|
|
|
Operating revenue (in millions) |
|
$ |
733.7 |
|
|
$ |
795.5 |
|
|
|
(7.8 |
)% |
Operating income (in millions) |
|
$ |
(21.4 |
) |
|
$ |
24.5 |
|
|
|
NM |
(a) |
Operating ratio |
|
|
102.9 |
|
|
|
96.9 |
|
|
|
(6.0 |
)pp |
Total tonnage per day (in
thousands) |
|
|
24.46 |
|
|
|
26.25 |
|
|
|
(6.8 |
)% |
Total shipments per day (in
thousands) |
|
|
40.92 |
|
|
|
43.96 |
|
|
|
(6.9 |
)% |
Revenue per hundredweight incl FSC |
|
$ |
23.91 |
|
|
$ |
24.30 |
|
|
|
(1.6 |
)% |
Revenue per hundredweight excl FSC |
|
$ |
21.48 |
|
|
$ |
20.61 |
|
|
|
4.2 |
% |
Revenue per shipment incl FSC |
|
$ |
286 |
|
|
$ |
290 |
|
|
|
(1.5 |
)% |
Revenue per shipment excl FSC |
|
$ |
257 |
|
|
$ |
246 |
|
|
|
4.4 |
% |
Total weight/shipment (in pounds) |
|
|
1,196 |
|
|
|
1,194 |
|
|
|
0.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)Not Meaningful |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional Transportation |
|
|
2015 |
|
|
|
2014 |
|
|
Percent Change |
Workdays |
|
|
59.5 |
|
|
|
58.5 |
|
|
|
Operating revenue (in millions) |
|
$ |
409.2 |
|
|
$ |
422.2 |
|
|
|
(3.1 |
)% |
Operating income (in millions) |
|
$ |
9.5 |
|
|
$ |
10.6 |
|
|
|
(10.4 |
)% |
Operating ratio |
|
|
97.7 |
|
|
|
97.5 |
|
|
|
(0.2 |
)pp |
Total tonnage per day (in
thousands) |
|
|
29.80 |
|
|
|
30.61 |
|
|
|
(2.6 |
)% |
Total shipments per day (in
thousands) |
|
|
40.54 |
|
|
|
41.69 |
|
|
|
(2.8 |
)% |
Revenue per hundredweight incl FSC |
|
$ |
11.54 |
|
|
$ |
11.79 |
|
|
|
(2.2 |
)% |
Revenue per hundredweight excl FSC |
|
$ |
10.41 |
|
|
$ |
10.08 |
|
|
|
3.3 |
% |
Revenue per shipment incl FSC |
|
$ |
170 |
|
|
$ |
173 |
|
|
|
(2.0 |
)% |
Revenue per shipment excl FSC |
|
$ |
153 |
|
|
$ |
148 |
|
|
|
3.4 |
% |
Total weight/shipment (in pounds) |
|
|
1,470 |
|
|
|
1,468 |
|
|
|
0.1 |
% |
|
|
|
|
|
|
|
Key Segment Information –
full-year 2015 compared to full-year 2014
YRC Freight |
|
|
2015 |
|
|
|
2014 |
|
|
Percent Change |
Workdays |
|
|
251.5 |
|
|
|
252.0 |
|
|
|
Operating revenue (in millions) |
|
$ |
3,055.7 |
|
|
$ |
3,237.4 |
|
|
|
(5.6 |
)% |
Operating income (in millions) |
|
$ |
18.0 |
|
|
$ |
0.5 |
|
|
|
NM |
(a) |
Operating ratio |
|
|
99.4 |
|
|
|
100.0 |
|
|
|
0.6 |
pp |
Total tonnage per day (in
thousands) |
|
|
25.43 |
|
|
|
27.01 |
|
|
|
(5.8 |
)% |
Total shipments per day (in
thousands) |
|
|
42.35 |
|
|
|
45.64 |
|
|
|
(7.2 |
)% |
Revenue per hundredweight incl FSC |
|
$ |
23.71 |
|
|
$ |
23.65 |
|
|
|
0.3 |
% |
Revenue per hundredweight excl FSC |
|
$ |
21.01 |
|
|
$ |
19.80 |
|
|
|
6.1 |
% |
Revenue per shipment incl FSC |
|
$ |
285 |
|
|
$ |
280 |
|
|
|
1.7 |
% |
Revenue per shipment excl FSC |
|
$ |
252 |
|
|
$ |
234 |
|
|
|
7.7 |
% |
Total weight/shipment (in pounds) |
|
|
1,201 |
|
|
|
1,184 |
|
|
|
1.5 |
% |
|
|
|
|
|
|
|
(a)Not Meaningful |
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional Transportation |
|
|
2015 |
|
|
|
2014 |
|
|
Percent Change |
Workdays |
|
|
251.0 |
|
|
|
252.0 |
|
|
|
Operating revenue (in millions) |
|
$ |
1,776.9 |
|
|
$ |
1,831.4 |
|
|
|
(3.0 |
)% |
Operating income (in millions) |
|
$ |
85.4 |
|
|
$ |
66.1 |
|
|
|
29.2 |
% |
Operating ratio |
|
|
95.2 |
|
|
|
96.4 |
|
|
|
1.2 |
pp |
Total tonnage per day (in
thousands) |
|
|
30.76 |
|
|
|
31.37 |
|
|
|
(1.9 |
)% |
Total shipments per day (in
thousands) |
|
|
41.43 |
|
|
|
42.64 |
|
|
|
(2.8 |
)% |
Revenue per hundredweight incl FSC |
|
$ |
11.51 |
|
|
$ |
11.59 |
|
|
|
(0.7 |
)% |
Revenue per hundredweight excl FSC |
|
$ |
10.25 |
|
|
$ |
9.80 |
|
|
|
4.6 |
% |
Revenue per shipment incl FSC |
|
$ |
171 |
|
|
$ |
171 |
|
|
|
0.2 |
% |
Revenue per shipment excl FSC |
|
$ |
152 |
|
|
$ |
144 |
|
|
|
5.6 |
% |
Total weight/shipment (in pounds) |
|
|
1,485 |
|
|
|
1,472 |
|
|
|
0.8 |
% |
|
|
|
|
|
|
|
Review of Financial Results
YRC Worldwide Inc. will host a conference call
with the investment community today, Thursday, February 4, 2016,
beginning at 4:30 p.m. ET, 3:30 p.m. CT. 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
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 IBT employees and results of 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 or earnings per share, as defined by
generally accepted accounting principles (GAAP).
Adjusted Operating Income and Adjusted Operating
Ratio are non-GAAP measures that the Company believes are
meaningful as they allow investors to evaluate the Company's
performance for different periods on a more comparable basis by
excluding items that are not directly related to the ongoing
operations of the Company. Adjusted Operating Income excludes the
impact of the non-union pension settlement charge incurred as a
result of the lump sum benefit payments that were paid in 2015.
Adjusted Operating Ratio is calculated as 100 percent minus the
result of dividing adjusted operating income by operating
revenue.
EBITDA, Adjusted EBITDA, Adjusted Operating
Income and Adjusted Operating Ratio 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
MOU;
- 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,
Adjusted Operating Income and Adjusted Operating Ratio differently
than we do, limiting its usefulness as a comparative measure.
Because of these limitations, EBTIDA, Adjusted
EBITDA, Adjusted Operating Income and Adjusted Operating Ratio
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, Adjusted EBITDA, Adjusted Operating Income and Adjusted
Operating Ratio 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. The company has
provided reconciliations of its non-GAAP measures, Adjusted
Operating Income and Adjusted Operating Ratio, to GAAP operating
income and operating ratio 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,” “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 substantial indebtedness and lease
and pension funding requirements; 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 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; 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 and
changes in state or 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
WorldwideYRC 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, |
|
|
|
|
|
|
|
2015 |
|
|
|
2014 |
|
|
|
ASSETS |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS: |
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
173.8 |
|
|
$ |
171.1 |
|
|
|
|
Restricted
amounts held in escrow |
|
|
58.8 |
|
|
|
28.9 |
|
|
|
|
Accounts
receivable, net |
|
|
427.4 |
|
|
|
470.5 |
|
|
|
|
Prepaid
expenses and other |
|
|
74.4 |
|
|
|
81.2 |
|
|
|
|
|
Total current
assets |
|
|
734.4 |
|
|
|
751.7 |
|
|
|
|
|
|
|
|
|
|
|
|
PROPERTY
AND EQUIPMENT: |
|
|
|
|
|
|
|
Cost |
|
|
2,822.8 |
|
|
|
2,819.6 |
|
|
|
|
Less -
accumulated depreciation |
|
|
(1,885.5 |
) |
|
|
(1,825.4 |
) |
|
|
|
|
Net property and
equipment |
|
|
937.3 |
|
|
|
994.2 |
|
|
|
|
|
|
|
|
|
|
|
|
Intangibles, net |
|
|
40.4 |
|
|
|
60.3 |
|
|
|
Restricted
amounts held in escrow |
|
|
63.4 |
|
|
|
60.2 |
|
|
|
Deferred
income taxes, net |
|
|
23.0 |
|
|
|
21.4 |
|
|
|
Other
assets |
|
|
96.1 |
|
|
|
97.2 |
|
|
|
|
|
Total assets |
|
$ |
1,894.6 |
|
|
$ |
1,985.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND SHAREHOLDERS' DEFICIT |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES: |
|
|
|
|
|
|
|
Accounts
payable |
|
$ |
161.1 |
|
|
$ |
172.2 |
|
|
|
|
Wages,
vacations, and employee benefits |
|
|
195.1 |
|
|
|
176.6 |
|
|
|
|
Deferred
income taxes, net |
|
|
23.0 |
|
|
|
21.4 |
|
|
|
|
Other
current and accrued liabilities |
|
|
178.4 |
|
|
|
202.2 |
|
|
|
|
Current
maturities of long-term debt |
|
|
15.9 |
|
|
|
31.1 |
|
|
|
|
|
Total current
liabilities |
|
|
573.5 |
|
|
|
603.5 |
|
|
|
|
|
|
|
|
|
|
|
|
OTHER
LIABILITIES: |
|
|
|
|
|
|
|
Long-term
debt, less current portion |
|
|
1,061.7 |
|
|
|
1,078.8 |
|
|
|
|
Deferred
income taxes, net |
|
|
3.7 |
|
|
|
1.5 |
|
|
|
|
Pension and
postretirement |
|
|
339.9 |
|
|
|
460.3 |
|
|
|
|
Claims and
other liabilities |
|
|
295.2 |
|
|
|
315.2 |
|
|
|
|
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 |
|
|
2,312.6 |
|
|
|
2,290.9 |
|
|
|
|
Accumulated
deficit |
|
|
(2,239.3 |
) |
|
|
(2,240.0 |
) |
|
|
|
Accumulated
other comprehensive loss |
|
|
(360.3 |
) |
|
|
(432.8 |
) |
|
|
|
Treasury
stock, at cost (410 shares) |
|
|
(92.7 |
) |
|
|
(92.7 |
) |
|
|
|
|
Total
shareholders' deficit |
|
|
(379.4 |
) |
|
|
(474.3 |
) |
|
|
|
|
Total liabilities and
shareholders' deficit |
|
$ |
1,894.6 |
|
|
$ |
1,985.0 |
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
|
|
|
|
|
|
|
OPERATING
REVENUE |
$ |
1,142.7 |
|
|
$ |
1,217.7 |
|
|
$ |
4,832.4 |
|
|
$ |
5,068.8 |
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES: |
|
|
|
|
|
|
|
|
Salaries,
wages and employee benefits |
|
719.6 |
|
|
|
688.9 |
|
|
|
2,868.2 |
|
|
|
2,901.2 |
|
|
Operating
expenses and supplies |
|
200.3 |
|
|
|
250.0 |
|
|
|
878.4 |
|
|
|
1,110.7 |
|
|
Purchased
transportation |
|
130.1 |
|
|
|
141.8 |
|
|
|
561.1 |
|
|
|
590.9 |
|
|
Depreciation and amortization |
|
40.1 |
|
|
|
40.7 |
|
|
|
163.7 |
|
|
|
163.6 |
|
|
Other
operating expenses |
|
67.5 |
|
|
|
70.9 |
|
|
|
266.1 |
|
|
|
268.8 |
|
|
(Gains)
losses on property disposals, net |
|
0.4 |
|
|
|
(5.8 |
) |
|
|
1.9 |
|
|
|
(11.9 |
) |
|
|
Total operating
expenses |
|
1,158.0 |
|
|
|
1,186.5 |
|
|
|
4,739.4 |
|
|
|
5,023.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME (LOSS) |
|
(15.3 |
) |
|
|
31.2 |
|
|
|
93.0 |
|
|
|
45.5 |
|
|
|
|
|
|
|
|
|
|
|
NONOPERATING EXPENSES: |
|
|
|
|
|
|
|
|
Interest
expense |
|
26.4 |
|
|
|
27.5 |
|
|
|
107.6 |
|
|
|
150.0 |
|
|
(Gain) loss
on extinguishment of debt |
|
- |
|
|
|
- |
|
|
|
0.6 |
|
|
|
(11.2 |
) |
|
Other,
net |
|
(2.7 |
) |
|
|
(2.8 |
) |
|
|
(10.8 |
) |
|
|
(9.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating expenses,
net |
|
23.7 |
|
|
|
24.7 |
|
|
|
97.4 |
|
|
|
129.3 |
|
|
|
|
|
|
|
|
|
|
|
INCOME
(LOSS) BEFORE INCOME TAXES |
|
(39.0 |
) |
|
|
6.5 |
|
|
|
(4.4 |
) |
|
|
(83.8 |
) |
INCOME TAX
(BENEFIT) EXPENSE |
|
(15.5 |
) |
|
|
0.3 |
|
|
|
(5.1 |
) |
|
|
(16.1 |
) |
NET INCOME
(LOSS) |
|
(23.5 |
) |
|
|
6.2 |
|
|
|
0.7 |
|
|
|
(67.7 |
) |
AMORTIZATION OF BENEFICIAL CONVERSION FEATURE ON PREFERRED
STOCK |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(18.1 |
) |
NET
INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS |
$ |
(23.5 |
) |
|
$ |
6.2 |
|
|
$ |
0.7 |
|
|
$ |
(85.8 |
) |
|
|
|
|
|
|
|
|
|
|
NET INCOME
(LOSS) |
$ |
(23.5 |
) |
|
$ |
6.2 |
|
|
$ |
0.7 |
|
|
$ |
(67.7 |
) |
OTHER
COMPREHENSIVE INCOME (LOSS), NET OF TAX |
|
69.6 |
|
|
|
(121.7 |
) |
|
|
72.5 |
|
|
|
(117.8 |
) |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO YRC WORLDWIDE INC. |
$ |
46.1 |
|
|
$ |
(115.5 |
) |
|
$ |
73.2 |
|
|
$ |
(185.5 |
) |
|
|
|
|
|
|
|
|
|
|
AVERAGE
COMMON SHARES OUTSTANDING - BASIC |
|
32,134 |
|
|
|
30,659 |
|
|
|
31,736 |
|
|
|
28,592 |
|
AVERAGE
COMMON SHARES OUTSTANDING - DILUTED |
|
32,134 |
|
|
|
31,974 |
|
|
|
32,592 |
|
|
|
28,592 |
|
|
|
|
|
|
|
|
|
|
|
EARNINGS
(LOSS) PER SHARE - BASIC |
$ |
(0.73 |
) |
|
$ |
0.20 |
|
|
$ |
0.02 |
|
|
$ |
(3.00 |
) |
EARNINGS
(LOSS) PER SHARE - DILUTED |
$ |
(0.73 |
) |
|
$ |
0.16 |
|
|
$ |
0.02 |
|
|
$ |
(3.00 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
STATEMENTS OF CONSOLIDATED CASH FLOWS |
|
|
|
|
|
|
YRC
Worldwide Inc. and Subsidiaries |
|
|
|
|
|
|
For
the Twelve Months Ended December 31 |
|
|
|
|
|
|
(Amounts in millions) |
|
|
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
|
|
|
|
OPERATING
ACTIVITIES: |
|
|
|
|
|
Net income
(loss) |
|
$ |
0.7 |
|
|
$ |
(67.7 |
) |
|
Noncash
items included in net income (loss): |
|
|
|
|
|
Depreciation and amortization |
|
163.7 |
|
|
|
163.6 |
|
|
|
Paid-in-kind interest on Series A Notes and Series B Notes |
|
0.4 |
|
|
|
14.3 |
|
|
|
Amortization of deferred debt costs |
|
6.3 |
|
|
|
8.5 |
|
|
|
Amortization of premiums and discounts on debt |
|
2.1 |
|
|
|
27.5 |
|
|
|
Noncash
equity based compensation and employee benefits expense |
|
24.4 |
|
|
|
26.6 |
|
|
|
Non-union
pension settlement charge |
|
28.7 |
|
|
|
- |
|
|
|
Deferred
income tax benefit, net |
|
(9.8 |
) |
|
|
(0.2 |
) |
|
|
(Gains)
losses on property disposals, net |
|
1.9 |
|
|
|
(11.9 |
) |
|
|
(Gain) loss
on extinguishment of debt |
|
0.6 |
|
|
|
(11.2 |
) |
|
|
Other noncash items,
net |
|
|
(9.0 |
) |
|
|
(5.9 |
) |
|
Changes in
assets and liabilities, net: |
|
|
|
|
|
Accounts
receivable |
|
|
40.7 |
|
|
|
(11.1 |
) |
|
|
Accounts payable |
|
|
(11.1 |
) |
|
|
(5.7 |
) |
|
|
Other operating
assets |
|
|
(6.1 |
) |
|
|
0.3 |
|
|
|
Other operating
liabilities |
|
|
(92.7 |
) |
|
|
(98.6 |
) |
|
|
Net cash
provided by operating activities |
|
140.8 |
|
|
|
28.5 |
|
|
|
|
|
|
|
|
INVESTING
ACTIVITIES: |
|
|
|
|
|
Acquisition
of property and equipment |
|
(108.0 |
) |
|
|
(69.2 |
) |
|
Proceeds
from disposal of property and equipment |
|
17.5 |
|
|
|
20.8 |
|
|
Restricted
escrow receipts |
|
|
41.9 |
|
|
|
90.7 |
|
|
Restricted
escrow deposits |
|
|
(75.0 |
) |
|
|
(89.1 |
) |
|
Other,
net |
|
|
2.2 |
|
|
|
5.2 |
|
|
|
Net cash
used in investing activities |
|
(121.4 |
) |
|
|
(41.6 |
) |
|
|
|
|
|
|
|
FINANCING
ACTIVITIES: |
|
|
|
|
|
Issuance of
long-term debt |
|
|
- |
|
|
|
696.8 |
|
|
Repayment
of long-term debt |
|
|
(16.7 |
) |
|
|
(892.7 |
) |
|
Debt
issuance costs |
|
|
- |
|
|
|
(29.1 |
) |
|
Equity
issuance costs |
|
|
- |
|
|
|
(17.1 |
) |
|
Equity
issuance proceeds |
|
|
- |
|
|
|
250.0 |
|
|
|
Net cash
provided by (used in) financing activities |
|
(16.7 |
) |
|
|
7.9 |
|
NET
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
|
2.7 |
|
|
|
(5.2 |
) |
CASH AND
CASH EQUIVALENTS, BEGINNING OF PERIOD |
|
171.1 |
|
|
|
176.3 |
|
CASH AND
CASH EQUIVALENTS, END OF PERIOD |
$ |
173.8 |
|
|
$ |
171.1 |
|
|
|
|
|
|
|
|
SUPPLEMENTAL CASH FLOW INFORMATION |
|
|
|
Interest
paid |
|
$ |
(104.5 |
) |
|
$ |
(129.1 |
) |
Letter of
credit fees paid |
|
|
(8.8 |
) |
|
|
(8.7 |
) |
Income tax
refund (payment) |
|
|
(6.2 |
) |
|
|
16.1 |
|
Debt
redeemed for equity consideration |
|
17.9 |
|
|
|
51.8 |
|
|
|
|
|
|
|
|
SUPPLEMENTAL FINANCIAL INFORMATION |
|
YRC Worldwide Inc. and Subsidiaries |
|
For the Three and Twelve Months Ended December 31 |
|
(Amounts in millions) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT INFORMATION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
Twelve Months |
|
|
|
|
2015 |
|
|
|
2014 |
|
% |
|
|
2015 |
|
|
|
2014 |
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
YRC Freight |
$ |
733.7 |
|
|
$ |
795.5 |
|
|
(7.8 |
) |
|
$ |
3,055.7 |
|
|
$ |
3,237.4 |
|
|
|
|
|
|
|
|
(5.6 |
) |
|
|
Regional
Transportation |
|
409.2 |
|
|
|
422.2 |
|
|
(3.1 |
) |
|
|
1,776.9 |
|
|
|
1,831.4 |
|
|
|
|
|
|
|
|
(3.0 |
) |
|
|
Other, net of
eliminations |
|
(0.2 |
) |
|
|
- |
|
|
|
|
(0.2 |
) |
|
|
- |
|
|
|
|
|
Consolidated |
|
1,142.7 |
|
|
|
1,217.7 |
|
|
(6.2 |
) |
|
|
4,832.4 |
|
|
|
5,068.8 |
|
|
|
|
|
|
|
|
(4.7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
YRC Freight |
|
(21.4 |
) |
|
|
24.5 |
|
|
|
|
18.0 |
|
|
|
0.5 |
|
|
|
|
|
Regional
Transportation |
|
9.5 |
|
|
|
10.6 |
|
|
|
|
85.4 |
|
|
|
66.1 |
|
|
|
|
|
Corporate and
other |
|
(3.4 |
) |
|
|
(3.9 |
) |
|
|
|
(10.4 |
) |
|
|
(21.1 |
) |
|
|
|
|
Consolidated |
$ |
(15.3 |
) |
|
$ |
31.2 |
|
|
|
$ |
93.0 |
|
|
$ |
45.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating ratio: |
|
|
|
|
|
|
|
|
|
|
|
|
YRC Freight |
|
102.9 |
% |
|
|
96.9 |
% |
|
|
|
99.4 |
% |
|
|
100.0 |
% |
|
|
|
|
Regional
Transportation |
|
97.7 |
% |
|
|
97.5 |
% |
|
|
|
95.2 |
% |
|
|
96.4 |
% |
|
|
|
|
Consolidated |
|
101.3 |
% |
|
|
97.4 |
% |
|
|
|
98.1 |
% |
|
|
99.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income: |
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) as reported |
$ |
(15.3 |
) |
|
$ |
31.2 |
|
|
|
$ |
93.0 |
|
|
$ |
45.5 |
|
|
|
|
|
Non-union pension
settlement charge |
|
28.7 |
|
|
|
- |
|
|
|
|
28.7 |
|
|
|
- |
|
|
|
|
|
Adjusted operating
income |
|
13.4 |
|
|
|
31.2 |
|
|
|
|
121.7 |
|
|
|
45.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YRC Freight |
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) as reported |
|
(21.4 |
) |
|
|
24.5 |
|
|
|
|
18.0 |
|
|
|
0.5 |
|
|
|
|
|
Non-union pension
settlement charge |
|
28.7 |
|
|
|
- |
|
|
|
|
28.7 |
|
|
|
- |
|
|
|
|
|
Adjusted operating
income |
$ |
7.3 |
|
|
$ |
24.5 |
|
|
|
$ |
46.7 |
|
|
$ |
0.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
operating ratio: |
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
|
98.8 |
% |
|
|
97.4 |
% |
|
|
|
97.5 |
% |
|
|
99.1 |
% |
|
|
|
|
YRC Freight |
|
99.0 |
% |
|
|
96.9 |
% |
|
|
|
98.5 |
% |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating ratio is calculated as (i) 100 percent (ii)
minus the result of dividing adjusted operating income by operating
revenue or (iii) plus the result of dividing adjusted operating
loss by operating revenue, and expressed as a percentage.
Adjusted operating income excludes the effect of the non-union
pension settlement charge. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL INFORMATION |
|
|
|
|
|
|
|
Book |
|
|
As of December 31, 2015 |
|
|
|
Par Value |
|
Discount |
|
Value |
|
|
Term Loan |
|
|
|
$ |
686.0 |
|
|
$ |
(4.3 |
) |
|
$ |
681.7 |
|
|
|
ABL
Facility (a) |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
Secured Second A&R
CDA |
|
|
|
|
44.7 |
|
|
|
- |
|
|
|
44.7 |
|
|
|
Unsecured Second
A&R CDA |
|
|
|
|
73.2 |
|
|
|
- |
|
|
|
73.2 |
|
|
|
|
|
Lease financing
obligations |
|
|
|
|
278.0 |
|
|
|
- |
|
|
|
278.0 |
|
|
|
Total debt |
|
|
|
$ |
1,081.9 |
|
|
$ |
(4.3 |
) |
|
$ |
1,077.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book |
|
|
As of December 31, 2014 |
|
|
|
Par Value |
|
Discount |
|
Value |
|
|
Term Loan |
|
|
|
$ |
693.0 |
|
|
$ |
(5.7 |
) |
|
$ |
687.3 |
|
|
|
|
|
ABL
Facility (b) |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
Series B Notes |
|
|
|
|
17.7 |
|
|
|
(0.6 |
) |
|
|
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 |
|
|
|
$ |
1,116.2 |
|
|
$ |
(6.3 |
) |
|
$ |
1,109.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Our total
leverage ratio for the four consecutive fiscal quarters ended
December 31, 2015 was 3.25 to 1.00. |
|
|
|
|
|
|
|
|
|
|
(a) |
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 collateral line cap. |
|
|
|
|
|
|
|
|
|
|
(b) |
ABL
Facility capacity $450.0M; borrowing base $445.5M; maximum
availability $71.2M; amount able to be drawn $27.1M |
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
Reconciliation
of net income (loss) to Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
(23.5 |
) |
|
$ |
6.2 |
|
|
$ |
0.7 |
|
|
$ |
(67.7 |
) |
|
|
|
Interest expense, net |
|
26.2 |
|
|
|
27.3 |
|
|
|
107.1 |
|
|
|
149.5 |
|
|
|
|
Income tax expense (benefit) |
|
(15.5 |
) |
|
|
0.3 |
|
|
|
(5.1 |
) |
|
|
(16.1 |
) |
|
|
|
Depreciation and amortization |
|
40.1 |
|
|
|
40.7 |
|
|
|
163.7 |
|
|
|
163.6 |
|
|
|
|
EBITDA |
|
27.3 |
|
|
|
74.5 |
|
|
|
266.4 |
|
|
|
229.3 |
|
|
|
|
Adjustments for Term
Loan Agreement: |
|
|
|
|
|
|
|
|
|
|
(Gains) losses on property
disposals, net |
|
0.4 |
|
|
|
(5.8 |
) |
|
|
1.9 |
|
|
|
(11.9 |
) |
|
|
|
Letter of credit expense |
|
2.2 |
|
|
|
2.3 |
|
|
|
8.8 |
|
|
|
12.1 |
|
|
|
|
Restructuring professional
fees |
|
- |
|
|
|
- |
|
|
|
0.2 |
|
|
|
4.2 |
|
|
|
|
Nonrecurring consulting fees |
|
- |
|
|
|
- |
|
|
|
5.1 |
|
|
|
- |
|
|
|
|
Permitted dispositions and
other |
|
0.1 |
|
|
|
- |
|
|
|
0.4 |
|
|
|
1.8 |
|
|
|
|
Equity based compensation
expense |
|
2.0 |
|
|
|
3.2 |
|
|
|
8.5 |
|
|
|
14.3 |
|
|
|
|
Amortization of ratification
bonus |
|
4.5 |
|
|
|
5.2 |
|
|
|
18.9 |
|
|
|
15.6 |
|
|
|
|
(Gain) loss on extinguishment of
debt |
|
- |
|
|
|
- |
|
|
|
0.6 |
|
|
|
(11.2 |
) |
|
|
|
Non-union pension settlement
charge |
|
28.7 |
|
|
|
- |
|
|
|
28.7 |
|
|
|
- |
|
|
|
|
Other, net (a) |
|
0.8 |
|
|
|
(2.4 |
) |
|
|
(6.2 |
) |
|
|
(9.7 |
) |
|
|
|
Adjusted
EBITDA |
$ |
66.0 |
|
|
$ |
77.0 |
|
|
$ |
333.3 |
|
|
$ |
244.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 |
|
Twelve
Months |
|
|
|
Adjusted EBITDA
by segment: |
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
YRC Freight |
$ |
36.8 |
|
|
$ |
44.0 |
|
|
$ |
167.2 |
|
|
$ |
99.8 |
|
|
|
|
Regional Transportation |
|
30.2 |
|
|
|
33.2 |
|
|
|
165.9 |
|
|
|
144.4 |
|
|
|
|
Corporate and other |
|
(1.0 |
) |
|
|
(0.2 |
) |
|
|
0.2 |
|
|
|
0.3 |
|
|
|
|
Adjusted
EBITDA |
$ |
66.0 |
|
|
$ |
77.0 |
|
|
$ |
333.3 |
|
|
$ |
244.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
Reconciliation
of operating income (loss) to Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
Operating income
(loss) |
$ |
(21.4 |
) |
|
$ |
24.5 |
|
|
$ |
18.0 |
|
|
$ |
0.5 |
|
|
|
|
Depreciation and amortization |
|
22.6 |
|
|
|
23.8 |
|
|
|
93.1 |
|
|
|
98.0 |
|
|
|
|
(Gains) losses on property
disposals, net |
|
0.2 |
|
|
|
(9.1 |
) |
|
|
1.9 |
|
|
|
(15.9 |
) |
|
|
|
Letter of credit expense |
|
1.5 |
|
|
|
1.5 |
|
|
|
6.1 |
|
|
|
8.3 |
|
|
|
|
Nonrecurring consulting fees |
|
- |
|
|
|
- |
|
|
|
5.1 |
|
|
|
- |
|
|
|
|
Amortization of ratification
bonus |
|
2.9 |
|
|
|
3.3 |
|
|
|
12.2 |
|
|
|
10.0 |
|
|
|
|
Non-union pension settlement
charge |
|
28.7 |
|
|
|
- |
|
|
|
28.7 |
|
|
|
- |
|
|
|
|
Other, net (a) |
|
2.3 |
|
|
|
- |
|
|
|
2.1 |
|
|
|
(1.1 |
) |
|
|
|
Adjusted
EBITDA |
$ |
36.8 |
|
|
$ |
44.0 |
|
|
$ |
167.2 |
|
|
$ |
99.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 |
|
Twelve
Months |
|
|
|
Regional
Transportation segment |
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
Reconciliation
of operating income to Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
Operating
income |
$ |
9.5 |
|
|
$ |
10.6 |
|
|
$ |
85.4 |
|
|
$ |
66.1 |
|
|
|
|
Depreciation and amortization |
|
17.5 |
|
|
|
16.8 |
|
|
|
70.7 |
|
|
|
65.8 |
|
|
|
|
Losses on property disposals,
net |
|
0.2 |
|
|
|
3.3 |
|
|
|
0.2 |
|
|
|
4.0 |
|
|
|
|
Letter of credit expense |
|
0.6 |
|
|
|
0.6 |
|
|
|
2.1 |
|
|
|
2.9 |
|
|
|
|
Amortization of ratification
bonus |
|
1.6 |
|
|
|
1.9 |
|
|
|
6.7 |
|
|
|
5.6 |
|
|
|
|
Other, net (a) |
|
0.8 |
|
|
|
- |
|
|
|
0.8 |
|
|
|
- |
|
|
|
|
Adjusted EBITDA |
$ |
30.2 |
|
|
$ |
33.2 |
|
|
$ |
165.9 |
|
|
$ |
144.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 |
|
Twelve
Months |
|
|
|
Corporate and
other segment |
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
Reconciliation
of operating loss to Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
Operating loss |
$ |
(3.4 |
) |
|
$ |
(3.9 |
) |
|
$ |
(10.4 |
) |
|
$ |
(21.1 |
) |
|
|
|
Depreciation and amortization |
|
- |
|
|
|
0.1 |
|
|
|
(0.1 |
) |
|
|
(0.2 |
) |
|
|
|
Gains on property disposals,
net |
|
- |
|
|
|
- |
|
|
|
(0.2 |
) |
|
|
- |
|
|
|
|
Letter of credit expense |
|
0.1 |
|
|
|
0.2 |
|
|
|
0.6 |
|
|
|
0.9 |
|
|
|
|
Restructuring professional
fees |
|
- |
|
|
|
- |
|
|
|
0.2 |
|
|
|
4.2 |
|
|
|
|
Permitted dispositions and
other |
|
0.1 |
|
|
|
- |
|
|
|
0.4 |
|
|
|
1.8 |
|
|
|
|
Equity based compensation
expense |
|
2.0 |
|
|
|
3.2 |
|
|
|
8.5 |
|
|
|
14.3 |
|
|
|
|
Other, net (a) |
|
0.2 |
|
|
|
0.2 |
|
|
|
1.2 |
|
|
|
0.4 |
|
|
|
|
Adjusted EBITDA |
$ |
(1.0 |
) |
|
$ |
(0.2 |
) |
|
$ |
0.2 |
|
|
$ |
0.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 |
|
|
|
|
|
4Q15 |
|
4Q14 |
|
3Q15 |
|
% (b) |
|
% (b) |
|
|
|
|
Workdays |
|
61.5 |
|
|
|
61.5 |
|
|
|
64.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total picked up revenue (in millions) (a) |
$ |
719.5 |
|
|
$ |
784.4 |
|
|
$ |
784.4 |
|
|
|
(8.3 |
) |
|
|
(8.3 |
) |
|
|
|
|
Total tonnage (in thousands) |
|
1,504 |
|
|
|
1,614 |
|
|
|
1,641 |
|
|
|
(6.8 |
) |
|
|
(8.3 |
) |
|
|
|
|
Total tonnage per day (in thousands) |
|
24.46 |
|
|
|
26.25 |
|
|
|
25.64 |
|
|
|
(6.8 |
) |
|
|
(4.6 |
) |
|
|
|
|
Total shipments (in thousands) |
|
2,517 |
|
|
|
2,703 |
|
|
|
2,740 |
|
|
|
(6.9 |
) |
|
|
(8.2 |
) |
|
|
|
|
Total shipments per day (in thousands) |
|
40.92 |
|
|
|
43.96 |
|
|
|
42.82 |
|
|
|
(6.9 |
) |
|
|
(4.4 |
) |
|
|
|
|
Total picked up revenue/cwt. |
$ |
23.91 |
|
|
$ |
24.30 |
|
|
$ |
23.90 |
|
|
|
(1.6 |
) |
|
|
0.1 |
|
|
|
|
|
Total picked up revenue/cwt. (excl. FSC) |
$ |
21.48 |
|
|
$ |
20.61 |
|
|
$ |
21.24 |
|
|
|
4.2 |
|
|
|
1.1 |
|
|
|
|
|
Total picked up revenue/shipment |
$ |
286 |
|
|
$ |
290 |
|
|
$ |
286 |
|
|
|
(1.5 |
) |
|
|
(0.1 |
) |
|
|
|
|
Total picked up revenue/shipment (excl. FSC) |
$ |
257 |
|
|
$ |
246 |
|
|
$ |
254 |
|
|
|
4.4 |
|
|
|
1.0 |
|
|
|
|
|
Total weight/shipment (in pounds) |
|
1,196 |
|
|
|
1,194 |
|
|
|
1,198 |
|
|
|
0.1 |
|
|
|
(0.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Reconciliation of
operating revenue to total picked up revenue (in
millions): |
|
|
|
|
|
|
|
|
Operating revenue |
$ |
733.7 |
|
|
$ |
795.4 |
|
|
$ |
789.2 |
|
|
|
|
|
|
|
|
|
Change in revenue deferral and other |
|
(14.2 |
) |
|
|
(11.0 |
) |
|
|
(4.8 |
) |
|
|
|
|
|
|
|
|
Total picked up revenue |
$ |
719.5 |
|
|
$ |
784.4 |
|
|
$ |
784.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional Transportation |
|
|
|
|
|
|
|
|
|
|
|
Y/Y |
|
Sequential |
|
|
|
|
|
4Q15 |
|
4Q14 |
|
3Q15 |
|
% (b) |
|
% (b) |
|
|
|
|
Workdays |
|
59.5 |
|
|
|
58.5 |
|
|
|
64.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total picked up revenue (in millions) (a) |
$ |
409.2 |
|
|
$ |
422.4 |
|
|
$ |
455.9 |
|
|
|
(3.1 |
) |
|
|
(10.2 |
) |
|
|
|
|
Total tonnage (in thousands) |
|
1,773 |
|
|
|
1,791 |
|
|
|
1,974 |
|
|
|
(1.0 |
) |
|
|
(10.2 |
) |
|
|
|
|
Total tonnage per day (in thousands) |
|
29.80 |
|
|
|
30.61 |
|
|
|
30.85 |
|
|
|
(2.6 |
) |
|
|
(3.4 |
) |
|
|
|
|
Total shipments (in thousands) |
|
2,412 |
|
|
|
2,439 |
|
|
|
2,672 |
|
|
|
(1.1 |
) |
|
|
(9.7 |
) |
|
|
|
|
Total shipments per day (in thousands) |
|
40.54 |
|
|
|
41.69 |
|
|
|
41.76 |
|
|
|
(2.8 |
) |
|
|
(2.9 |
) |
|
|
|
|
Total picked up revenue/cwt. |
$ |
11.54 |
|
|
$ |
11.79 |
|
|
$ |
11.55 |
|
|
|
(2.2 |
) |
|
|
(0.1 |
) |
|
|
|
|
Total picked up revenue/cwt. (excl. FSC) |
$ |
10.41 |
|
|
$ |
10.08 |
|
|
$ |
10.32 |
|
|
|
3.3 |
|
|
|
0.9 |
|
|
|
|
|
Total picked up revenue/shipment |
$ |
170 |
|
|
$ |
173 |
|
|
$ |
171 |
|
|
|
(2.0 |
) |
|
|
(0.6 |
) |
|
|
|
|
Total picked up revenue/shipment (excl. FSC) |
$ |
153 |
|
|
$ |
148 |
|
|
$ |
153 |
|
|
|
3.4 |
|
|
|
0.4 |
|
|
|
|
|
Total weight/shipment (in pounds) |
|
1,470 |
|
|
|
1,468 |
|
|
|
1,478 |
|
|
|
0.1 |
|
|
|
(0.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Reconciliation of
operating revenue to total picked up revenue (in
millions): |
|
|
|
|
|
|
|
|
Operating revenue |
$ |
409.2 |
|
|
$ |
422.2 |
|
|
$ |
455.7 |
|
|
|
|
|
|
|
|
|
Change in revenue deferral and other |
|
0.0 |
|
|
|
0.2 |
|
|
|
0.2 |
|
|
|
|
|
|
|
|
|
Total picked up revenue |
$ |
409.2 |
|
|
$ |
422.4 |
|
|
$ |
455.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 |
|
|
YTD Comparison |
|
|
|
|
|
|
|
|
|
|
|
|
YRC Freight |
|
|
|
|
|
|
|
|
Y/Y |
|
|
|
|
|
2015 |
|
|
|
2014 |
|
|
% (b) |
|
|
|
Workdays |
|
251.5 |
|
|
|
252.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total picked up revenue (in millions) (a) |
$ |
3,033.4 |
|
|
$ |
3,219.6 |
|
|
|
(5.8 |
) |
|
|
|
Total tonnage (in thousands) |
|
6,396 |
|
|
|
6,807 |
|
|
|
(6.0 |
) |
|
|
|
Total tonnage per day (in thousands) |
|
25.43 |
|
|
|
27.01 |
|
|
|
(5.8 |
) |
|
|
|
Total shipments (in thousands) |
|
10,651 |
|
|
|
11,502 |
|
|
|
(7.4 |
) |
|
|
|
Total shipments per day (in thousands) |
|
42.35 |
|
|
|
45.64 |
|
|
|
(7.2 |
) |
|
|
|
Total picked up revenue/cwt. |
$ |
23.71 |
|
|
$ |
23.65 |
|
|
|
0.3 |
|
|
|
|
Total picked up revenue/cwt. (excl. FSC) |
$ |
21.01 |
|
|
$ |
19.80 |
|
|
|
6.1 |
|
|
|
|
Total picked up revenue/shipment |
$ |
285 |
|
|
$ |
280 |
|
|
|
1.7 |
|
|
|
|
Total picked up revenue/shipment (excl. FSC) |
$ |
252 |
|
|
$ |
234 |
|
|
|
7.7 |
|
|
|
|
Total weight/shipment (in pounds) |
|
1,201 |
|
|
|
1,184 |
|
|
|
1.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Reconciliation of
operating revenue to total picked up revenue (in
millions): |
|
|
|
Operating revenue |
$ |
3,055.7 |
|
|
$ |
3,237.4 |
|
|
|
|
|
|
Change in revenue deferral and other |
|
(22.3 |
) |
|
|
(17.8 |
) |
|
|
|
|
|
Total picked up revenue |
$ |
3,033.4 |
|
|
$ |
3,219.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional Transportation |
|
|
|
|
|
|
|
|
Y/Y |
|
|
|
|
|
2015 |
|
|
|
2014 |
|
|
% (b) |
|
|
|
Workdays |
|
251.0 |
|
|
|
252.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total picked up revenue (in millions) (a) |
$ |
1,777.7 |
|
|
$ |
1,832.3 |
|
|
|
(3.0 |
) |
|
|
|
Total tonnage (in thousands) |
|
7,721 |
|
|
|
7,906 |
|
|
|
(2.3 |
) |
|
|
|
Total tonnage per day (in thousands) |
|
30.76 |
|
|
|
31.37 |
|
|
|
(1.9 |
) |
|
|
|
Total shipments (in thousands) |
|
10,399 |
|
|
|
10,745 |
|
|
|
(3.2 |
) |
|
|
|
Total shipments per day (in thousands) |
|
41.43 |
|
|
|
42.64 |
|
|
|
(2.8 |
) |
|
|
|
Total picked up revenue/cwt. |
$ |
11.51 |
|
|
$ |
11.59 |
|
|
|
(0.7 |
) |
|
|
|
Total picked up revenue/cwt. (excl. FSC) |
$ |
10.25 |
|
|
$ |
9.80 |
|
|
|
4.6 |
|
|
|
|
Total picked up revenue/shipment |
$ |
171 |
|
|
$ |
171 |
|
|
|
0.2 |
|
|
|
|
Total picked up revenue/shipment (excl. FSC) |
$ |
152 |
|
|
$ |
144 |
|
|
|
5.6 |
|
|
|
|
Total weight/shipment (in pounds) |
|
1,485 |
|
|
|
1,472 |
|
|
|
0.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Reconciliation of
operating revenue to total picked up revenue (in
millions): |
|
|
|
Operating revenue |
$ |
1,776.9 |
|
|
$ |
1,831.4 |
|
|
|
|
|
|
Change in revenue deferral and other |
|
0.8 |
|
|
|
0.9 |
|
|
|
|
|
|
Total picked up revenue |
$ |
1,777.7 |
|
|
$ |
1,832.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. |
|
|
|
Investor Contact:
Tony Carreno
913-696-6108
investor@yrcw.com
Media Contact:
Mike Kelley
916-696-6121
mike.kelley@yrcw.com
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