YRC Worldwide Inc. (NASDAQ:YRCW) reported consolidated operating
revenue for first quarter 2017 of $1.171 billion and a consolidated
operating loss of $3.0 million, which included a $2.7 million loss
on property disposals. As a comparison, for the first quarter 2016,
the Company reported consolidated operating revenue of $1.120
billion and consolidated operating income of $13.4 million, which
included a $0.3 million gain on property disposals.
“Our Regional carriers’ first quarter 2017
results were generally in line with a year ago, including an
increase in year-over-year tonnage per day,” said James Welch,
chief executive officer at YRC Worldwide. “YRC Freight’s results in
the first quarter were unfavorably impacted by a year-over-year
decrease in revenue per hundredweight, excluding fuel surcharge,
that more than offset increases in tonnage per day and weight per
shipment. We expect the improvement in year-over-year tonnage per
day to help us execute our strategy of pricing for profitability
and moving shipments through YRC Freight, Holland, Reddaway and New
Penn’s networks that have favorable freight characteristics. We
believe the pricing environment remains stable in the
less-than-truckload sector. Our goal in 2017 is to exceed our 2016
Adjusted EBITDA results while meeting our customers’ needs,” stated
Welch.
“We continuously evaluate opportunities to drive
improvements in operational efficiencies and financial results,
including tightly managing our cost structure. During the first
quarter we implemented a plan to reduce costs and de-layer our
management and other non-union workforce. Headcount reduction is
the most significant source of savings while other changes included
increasing collaboration across our companies and reducing the
utilization of external professional services,” concluded
Welch.
Financial Highlights
- On a non-GAAP basis, the Company generated consolidated
Adjusted EBITDA of $43.2 million in first quarter 2017 for an
Adjusted EBITDA margin of 3.7% compared to $62.9 million and 5.6%,
respectively, in the prior year comparable quarter (as detailed in
the reconciliation below).
- Last twelve month (LTM) consolidated Adjusted EBITDA is $277.8
million for an adjusted EBITDA margin of 5.9% compared to $337.4
million and 7.1%, respectively, in 2016.
- The total debt-to-Adjusted EBITDA ratio for first quarter 2017
was 3.62 times compared to 3.20 times for first quarter 2016. This
complied with the 3.85 times maximum total leverage ratio covenant
as of March 31, 2017 under the Term Loan Credit
Agreement.
- Reinvestment in the business continued during first quarter
2017 with $16.3 million in capital expenditures and new operating
leases for revenue equipment with a capital value equivalent of
$8.4 million, for a total of $24.7 million. This is equal to 2.1%
of operating revenue for the quarter.
- To streamline overhead and augment operational efficiencies,
the Company implemented a plan during the first quarter 2017 to
eliminate approximately $25 million of costs over the next year.
The savings include rightsizing the management and other non-union
workforce by approximately 180 positions.
Operational Highlights
- The consolidated operating ratio for first quarter 2017 was
100.3 compared to 98.8 for the same period in 2016. YRC Freight’s
operating ratio was 101.4 compared to 99.4 in first quarter 2016
and the Regional segment’s operating ratio of 97.2 was in line with
the prior year’s 97.1.
- First quarter 2017 tonnage per day increased 3.4% at YRC
Freight and 2.1% at the Regional segment compared to first quarter
2016.
- At YRC Freight, including fuel surcharge, first quarter 2017
revenue per shipment increased 1.8% and revenue per hundredweight
increased 0.5% when compared to the same period in 2016. Excluding
fuel surcharge, revenue per shipment decreased 0.4% and revenue per
hundredweight decreased by 1.7%.
- At the Regional segment, including fuel surcharge, first
quarter 2017 revenue per shipment increased 4.4% and revenue per
hundredweight increased 2.5%. Excluding fuel surcharge, revenue per
shipment increased 2.0% and revenue per hundredweight increased
0.2%.
Liquidity Update
- At March 31, 2017, the company had cash and cash equivalents
and Managed Accessibility (as defined in the company’s most
recently filed periodic reports on Forms 10-K and 10-Q) under its
ABL facility totaling $202.0 million compared to $222.1 million as
of March 31, 2016.
- For the three months ended March 31, 2017, cash used in
operating activities was $25.9 million compared to cash used in
operating activities of $11.1 million for the three months ended
March 31, 2016.
Key Segment Information –
first quarter 2017 compared to first quarter 2016
YRC Freight |
|
|
2017 |
|
|
|
2016 |
|
|
PercentChange(b) |
Workdays |
|
|
64.0 |
|
|
|
63.5 |
|
|
|
Operating
revenue (in millions) |
|
$ |
728.9 |
|
|
$ |
695.7 |
|
|
4.8% |
Operating
income/(loss) (in millions) |
|
$ |
(10.5) |
|
|
$ |
4.1 |
|
|
NM(a) |
Operating
ratio |
|
|
101.4 |
|
|
|
99.4 |
|
|
(2.0)pp |
Total
tonnage per day (in thousands) |
|
|
24.18 |
|
|
|
23.38 |
|
|
3.4% |
Total
shipments per day (in thousands) |
|
|
40.40 |
|
|
|
39.58 |
|
|
2.1% |
Total
picked up revenue per hundredweight incl FSC |
|
$ |
23.53 |
|
|
$ |
23.42 |
|
|
0.5% |
Total
picked up revenue per hundredweight excl FSC |
|
$ |
21.06 |
|
|
$ |
21.42 |
|
|
(1.7)% |
Total
picked up revenue per shipment incl FSC |
|
$ |
282 |
|
|
$ |
277 |
|
|
1.8% |
Total
picked up revenue per shipment excl FSC |
|
$ |
252 |
|
|
$ |
252 |
|
|
(0.4)% |
Total
weight/shipment (in pounds) |
|
|
1,197 |
|
|
|
1,181 |
|
|
1.3% |
Regional Transportation |
|
|
2017 |
|
|
|
2016 |
|
|
PercentChange(b) |
Workdays |
|
|
64.0 |
|
|
|
64.5 |
|
|
|
Operating
revenue (in millions) |
|
$ |
441.8 |
|
|
$ |
424.8 |
|
|
4.0% |
Operating
income (in millions) |
|
$ |
12.2 |
|
|
$ |
12.4 |
|
|
(1.6)% |
Operating
ratio |
|
|
97.2 |
|
|
|
97.1 |
|
|
(0.1)pp |
Total
tonnage per day (in thousands) |
|
|
30.07 |
|
|
|
29.46 |
|
|
2.1% |
Total
shipments per day (in thousands) |
|
|
39.77 |
|
|
|
39.65 |
|
|
0.3% |
Total
picked up revenue per hundredweight incl FSC |
|
$ |
11.51 |
|
|
$ |
11.23 |
|
|
2.5% |
Total
picked up revenue per hundredweight excl FSC |
|
$ |
10.34 |
|
|
$ |
10.31 |
|
|
0.2% |
Total
picked up revenue per shipment incl FSC |
|
$ |
174 |
|
|
$ |
167 |
|
|
4.4% |
Total
picked up revenue per shipment excl FSC |
|
$ |
156 |
|
|
$ |
153 |
|
|
2.0% |
Total
weight/shipment (in pounds) |
|
1,512 |
|
|
1,486 |
|
|
1.8% |
|
|
|
|
|
|
|
|
|
(a) Not Meaningful(b) Percent change based on
unrounded figures and not the rounded figures presented
Review of Financial Results
YRC Worldwide Inc. will host a conference call
with the investment community today, Thursday, May 4, 2017,
beginning at 4:30 p.m. ET.
A live audio webcast of the conference call and
presentation slides will be available on YRC Worldwide Inc.’s
website www.yrcw.com. A replay of the webcast will also be
available at www.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 union employees and gains or losses from permitted
dispositions and discontinued operations, among other items, as
defined in the company’s credit facilities. EBITDA and
Adjusted EBITDA are used for internal management purposes as a
financial measure that reflects the company’s core operating
performance. In addition, management uses Adjusted EBITDA to
measure compliance with financial covenants in the company’s credit
facilities and to pay certain executive bonus compensation.
However, these financial measures should not be construed as better
measurements than net income, as defined by generally accepted
accounting principles (GAAP).
EBITDA and Adjusted EBITDA have the following
limitations:
- EBITDA does not reflect the interest expense or the cash
requirements necessary to service interest or fund principal
payments on our outstanding debt;
- Adjusted EBITDA does not reflect the interest expense or the
cash requirements necessary to fund restructuring professional
fees, nonrecurring consulting fees, letter of credit fees, service
interest or principal payments on our outstanding debt or lump sum
payments to our union employees required under the ratified
Memorandum of Understanding;
- Although depreciation and amortization are non-cash charges,
the assets being depreciated and amortized will have to be replaced
in the future and EBITDA and Adjusted EBITDA do not reflect any
cash requirements for such replacements;
- Equity-based compensation is an element of our long-term
incentive compensation program, although Adjusted EBITDA excludes
certain employee equity-based compensation expense when presenting
our ongoing operating performance for a particular period;
- Other companies in our industry may calculate Adjusted EBITDA
differently than we do, limiting its usefulness as a comparative
measure.
Because of these limitations, our non-GAAP
measures 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 our non-GAAP measures as secondary measures. The
company has provided reconciliations of its non-GAAP measures to
GAAP net income and operating income (loss) within the supplemental
financial information in this release.
Forward-Looking Statements
This news release contains forward-looking
statements within the meaning of Section 27A of the Securities Act
and Section 21E of the Exchange Act. Words such as “will,”
“expect,” “intend,” “anticipate,” “believe,” “could,” “would,”
“should,” “may,” “project,” “forecast,” “propose,” “plan,”
“designed,” “enable,” and similar expressions which speak only as
of the date the statement was made are intended to identify
forward-looking statements. Forward-looking statements are
inherently uncertain, are based upon current beliefs, assumptions
and expectations of Company management and current market
conditions, and are subject to significant business, economic,
competitive, regulatory and other risks, uncertainties and
contingencies, known and unknown, many of which are beyond our
control. Our future financial condition and results could differ
materially from those predicted in such forward-looking statements
because of a number of factors, including (without limitation):
general economic factors; business risks and increasing costs
associated with the transportation industry; competition and
competitive pressure on pricing; the risk of labor disruptions or
stoppages; increasing pension expense and funding obligations;
increasing costs relating to our self-insurance claims expenses;
our ability to finance the maintenance, acquisition and replacement
of revenue equipment and other necessary capital expenditures; our
ability to comply and the cost of compliance with, or liability
resulting from violation of, federal, state, local and foreign laws
and regulations; impediments to our operations and business
resulting from anti-terrorism measures; the impact of claims and
litigation expense to which we are or may become exposed; failure
to realize the expected benefits and costs savings from our
performance and operational improvement initiatives; our ability to
attract and retain qualified drivers and increasing costs of driver
compensation; privacy breach or IT system disruption; risks of
operating in foreign countries; our dependence on key employees;
seasonality; 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; our ability
to generate sufficient liquidity to satisfy our cash needs and
future cash commitments, including (without limitation) our
obligations related to our indebtedness and lease and pension
funding requirements, and our ability to achieve increased cash
flows through improvement in operations; limitations on our
operations, our financing opportunities, potential strategic
transactions, acquisitions or dispositions resulting from
restrictive covenants in the documents governing or existing and
future indebtedness; our failure to comply with the covenants in
the documents governing our existing and future indebtedness;
fluctuations in the price of our common stock; dilution from future
issuances of our common stock; our intention not to pay dividends
on our common stock; that we have the ability to issue preferred
stock that may adversely affect the rights of holders of our common
stock; and other risks and contingencies, including (without
limitation) the risk factors that are included in our reports filed
with the SEC, including those described under “Risk Factors” in our
annual report on Form 10-K and quarterly reports on Form 10-Q.
About YRC Worldwide
YRC Worldwide Inc., headquartered in Overland
Park, Kan., is the holding company for a portfolio of
less-than-truckload (LTL) companies including YRC Freight, YRC
Reimer, Holland, Reddaway, and New Penn. Collectively, YRC
Worldwide companies have one of the largest, most comprehensive LTL
networks in North America with local, regional, national and
international capabilities. Through their teams of experienced
service professionals, YRC Worldwide companies offer
industry-leading expertise in flexible supply chain solutions,
ensuring customers can ship industrial, commercial and retail goods
with confidence.
Please visit our website at www.yrcw.com for
more information.
SOURCE: YRC Worldwide
|
|
CONSOLIDATED BALANCE SHEETS |
|
YRC Worldwide Inc. and Subsidiaries |
|
(Amounts in millions except share and per share
data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
ASSETS |
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS: |
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
182.4 |
|
|
$ |
136.7 |
|
|
|
Restricted
amounts held in escrow |
|
|
28.0 |
|
|
|
126.7 |
|
|
|
Accounts
receivable, net |
|
|
493.8 |
|
|
|
448.7 |
|
|
|
Prepaid
expenses and other |
|
|
84.7 |
|
|
|
68.7 |
|
|
|
|
Total current
assets |
|
|
788.9 |
|
|
|
780.8 |
|
|
|
|
|
|
|
|
|
|
PROPERTY
AND EQUIPMENT: |
|
|
|
|
|
|
Cost |
|
|
|
2,755.0 |
|
|
|
2,787.0 |
|
|
|
Less -
accumulated depreciation |
|
|
(1,909.6 |
) |
|
|
(1,916.4 |
) |
|
|
|
Net property and
equipment |
|
|
845.4 |
|
|
|
870.6 |
|
|
|
|
|
|
|
|
|
|
Intangibles, net |
|
|
27.2 |
|
|
|
27.2 |
|
|
Restricted
amounts held in escrow |
|
|
16.0 |
|
|
|
12.3 |
|
|
Deferred
income taxes, net |
|
|
- |
|
|
|
24.9 |
|
|
Other
assets |
|
|
50.4 |
|
|
|
54.2 |
|
|
|
|
Total assets |
|
$ |
1,727.9 |
|
|
$ |
1,770.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND SHAREHOLDERS' DEFICIT |
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES: |
|
|
|
|
|
|
Accounts
payable |
|
$ |
156.7 |
|
|
$ |
160.6 |
|
|
|
Wages,
vacations, and employee benefits |
|
|
205.7 |
|
|
|
191.0 |
|
|
|
Deferred
income taxes, net |
|
|
- |
|
|
|
24.9 |
|
|
|
Other
current and accrued liabilities |
|
|
165.5 |
|
|
|
168.6 |
|
|
|
Current
maturities of long-term debt |
|
|
17.3 |
|
|
|
16.8 |
|
|
|
|
Total current
liabilities |
|
|
545.2 |
|
|
|
561.9 |
|
|
|
|
|
|
|
|
|
|
OTHER
LIABILITIES: |
|
|
|
|
|
|
Long-term
debt, less current portion |
|
|
972.9 |
|
|
|
980.3 |
|
|
|
Deferred
income taxes, net |
|
|
3.1 |
|
|
|
3.6 |
|
|
|
Pension and
postretirement |
|
|
357.4 |
|
|
|
358.2 |
|
|
|
Claims and
other liabilities |
|
|
287.3 |
|
|
|
282.2 |
|
|
|
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 |
|
|
2,318.3 |
|
|
|
2,319.2 |
|
|
|
Accumulated
deficit |
|
|
(2,243.1 |
) |
|
|
(2,217.8 |
) |
|
|
Accumulated
other comprehensive loss |
|
|
(420.8 |
) |
|
|
(425.2 |
) |
|
|
Treasury
stock, at cost (410 shares) |
|
|
(92.7 |
) |
|
|
(92.7 |
) |
|
|
|
Total
shareholders' deficit |
|
|
(438.0 |
) |
|
|
(416.2 |
) |
|
|
|
Total liabilities and
shareholders' deficit |
|
$ |
1,727.9 |
|
|
$ |
1,770.0 |
|
|
|
|
|
|
|
|
|
|
|
STATEMENTS OF CONSOLIDATED COMPREHENSIVE LOSS |
YRC Worldwide Inc. and Subsidiaries |
For the Three Months Ended March 31 |
(Amounts in millions except per share data, shares in
thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
OPERATING
REVENUE |
$ |
1,170.6 |
|
|
$ |
1,120.3 |
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES: |
|
|
|
|
|
Salaries,
wages and employee benefits |
|
721.7 |
|
|
|
698.1 |
|
|
|
Operating
expenses and supplies |
|
216.3 |
|
|
|
190.2 |
|
|
|
Purchased
transportation |
|
134.5 |
|
|
|
115.5 |
|
|
|
Depreciation and amortization |
|
37.1 |
|
|
|
40.7 |
|
|
|
Other
operating expenses |
|
61.3 |
|
|
|
62.7 |
|
|
|
(Gains)
losses on property disposals, net |
|
2.7 |
|
|
|
(0.3 |
) |
|
|
|
Total operating
expenses |
|
1,173.6 |
|
|
|
1,106.9 |
|
|
OPERATING
INCOME (LOSS) |
|
(3.0 |
) |
|
|
13.4 |
|
|
|
|
|
|
|
|
|
NONOPERATING EXPENSES: |
|
|
|
|
|
Interest
expense |
|
25.4 |
|
|
|
26.1 |
|
|
|
Other,
net |
|
1.0 |
|
|
|
1.1 |
|
|
|
|
Nonoperating expenses,
net |
|
26.4 |
|
|
|
27.2 |
|
|
|
|
|
|
|
|
|
LOSS BEFORE
INCOME TAXES |
|
(29.4 |
) |
|
|
(13.8 |
) |
|
INCOME TAX
BENEFIT |
|
(4.1 |
) |
|
|
(1.8 |
) |
|
NET
LOSS |
|
(25.3 |
) |
|
|
(12.0 |
) |
|
OTHER
COMPREHENSIVE INCOME (LOSS), NET OF TAX |
|
4.4 |
|
|
|
(2.6 |
) |
|
COMPREHENSIVE LOSS |
$ |
(20.9 |
) |
|
$ |
(14.6 |
) |
|
|
|
|
|
|
|
|
AVERAGE
COMMON SHARES OUTSTANDING - BASIC |
|
32,568 |
|
|
|
32,264 |
|
|
AVERAGE
COMMON SHARES OUTSTANDING - DILUTED |
|
32,568 |
|
|
|
32,264 |
|
|
|
|
|
|
|
|
|
LOSS PER
SHARE - BASIC |
$ |
(0.78 |
) |
|
$ |
(0.37 |
) |
|
LOSS PER
SHARE - DILUTED |
$ |
(0.78 |
) |
|
$ |
(0.37 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STATEMENTS OF CONSOLIDATED CASH FLOWS |
|
|
YRC Worldwide Inc. and Subsidiaries |
|
|
For the Three Months Ended March 31 |
|
|
(Amounts in millions) |
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
OPERATING
ACTIVITIES: |
|
|
|
|
|
Net
loss |
|
$ |
(25.3 |
) |
|
$ |
(12.0 |
) |
|
Noncash
items included in net loss: |
|
|
|
|
|
Depreciation and amortization |
|
37.1 |
|
|
|
40.7 |
|
|
|
Noncash
equity-based compensation and employee benefits expense |
|
5.3 |
|
|
|
5.2 |
|
|
|
(Gains)
losses on property disposals, net |
|
2.7 |
|
|
|
(0.3 |
) |
|
|
Gain on
disposal of equity method investment |
|
- |
|
|
|
(2.3 |
) |
|
|
Other noncash items,
net |
|
|
2.9 |
|
|
|
4.4 |
|
|
Changes in
assets and liabilities, net: |
|
|
|
|
|
Accounts
receivable |
|
|
(45.0 |
) |
|
|
(35.2 |
) |
|
|
Accounts payable |
|
|
(9.2 |
) |
|
|
(0.8 |
) |
|
|
Other operating
assets |
|
|
(8.0 |
) |
|
|
(6.9 |
) |
|
|
Other operating
liabilities |
|
|
13.6 |
|
|
|
(3.9 |
) |
|
|
Net cash
used in operating activities |
|
(25.9 |
) |
|
|
(11.1 |
) |
|
|
|
|
|
|
|
INVESTING
ACTIVITIES: |
|
|
|
|
|
Acquisition
of property and equipment |
|
(16.3 |
) |
|
|
(19.8 |
) |
|
Proceeds
from disposal of property and equipment |
|
1.5 |
|
|
|
4.4 |
|
|
Restricted
escrow receipts |
|
|
95.0 |
|
|
|
27.2 |
|
|
Proceeds
from disposal of equity method investment, net |
|
- |
|
|
|
14.6 |
|
|
|
Net cash
provided by investing activities |
|
80.2 |
|
|
|
26.4 |
|
|
|
|
|
|
|
|
FINANCING
ACTIVITIES: |
|
|
|
|
|
Repayment
of long-term debt |
|
|
(5.4 |
) |
|
|
(4.2 |
) |
|
Debt
issuance costs |
|
|
(3.2 |
) |
|
|
- |
|
|
|
Net cash
used in financing activities |
|
(8.6 |
) |
|
|
(4.2 |
) |
NET
INCREASE IN CASH AND CASH EQUIVALENTS |
|
45.7 |
|
|
|
11.1 |
|
CASH AND
CASH EQUIVALENTS, BEGINNING OF PERIOD |
|
136.7 |
|
|
|
173.8 |
|
CASH AND
CASH EQUIVALENTS, END OF PERIOD |
$ |
182.4 |
|
|
$ |
184.9 |
|
|
|
|
|
|
|
|
SUPPLEMENTAL CASH FLOW INFORMATION |
|
|
|
Interest
paid |
|
$ |
(30.4 |
) |
|
$ |
(19.8 |
) |
Income tax
refund (payment), net |
|
|
4.4 |
|
|
|
(1.4 |
) |
|
|
|
|
|
|
|
|
SUPPLEMENTAL FINANCIAL INFORMATION |
YRC Worldwide Inc. and Subsidiaries |
For the Three Months Ended March 31 |
(Amounts in millions) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT INFORMATION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
|
|
|
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
YRC Freight |
$ |
728.9 |
|
|
$ |
695.7 |
|
|
|
4.8 |
|
|
|
|
|
|
|
Regional
Transportation |
|
441.8 |
|
|
|
424.8 |
|
|
|
4.0 |
|
|
|
|
|
|
|
Other, net of
eliminations |
|
(0.1 |
) |
|
|
(0.2 |
) |
|
|
|
|
|
|
|
|
|
Consolidated |
|
1,170.6 |
|
|
|
1,120.3 |
|
|
|
4.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
YRC Freight |
|
(10.5 |
) |
|
|
4.1 |
|
|
|
|
|
|
|
|
|
|
Regional
Transportation |
|
12.2 |
|
|
|
12.4 |
|
|
|
|
|
|
|
|
|
|
Corporate and
other |
|
(4.7 |
) |
|
|
(3.1 |
) |
|
|
|
|
|
|
|
|
|
Consolidated |
$ |
(3.0 |
) |
|
$ |
13.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating ratio: |
|
|
|
|
|
|
|
|
|
|
|
|
YRC Freight |
|
101.4 |
% |
|
|
99.4 |
% |
|
|
|
|
|
|
|
|
|
Regional
Transportation |
|
97.2 |
% |
|
|
97.1 |
% |
|
|
|
|
|
|
|
|
|
Consolidated |
|
100.3 |
% |
|
|
98.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
ratio is calculated as (i) 100 percent (ii) minus the result of
dividing operating income by operating revenue or (iii) plus the
result of dividing operating loss by operating revenue, and
expressed as a percentage. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL INFORMATION |
|
|
|
|
|
Debt Issue |
|
|
|
As of March 31, 2017 |
|
|
|
|
Par Value |
|
Discount |
|
Costs |
|
Book Value |
|
Term Loan |
|
|
|
|
$ |
636.9 |
|
$ |
(2.4 |
) |
|
$ |
(10.5 |
) |
|
$ |
624.0 |
|
ABL
Facility (a) |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Secured Second A&R
CDA |
|
|
|
|
|
27.2 |
|
|
- |
|
|
|
(0.1 |
) |
|
|
27.1 |
|
Unsecured Second
A&R CDA |
|
|
|
|
|
73.2 |
|
|
- |
|
|
|
(0.4 |
) |
|
|
72.8 |
|
Lease financing
obligations |
|
|
|
|
|
267.5 |
|
|
- |
|
|
|
(1.2 |
) |
|
|
266.3 |
|
Total debt |
|
|
|
|
$ |
1,004.8 |
|
$ |
(2.4 |
) |
|
$ |
(12.2 |
) |
|
$ |
990.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL INFORMATION |
|
|
|
|
|
|
|
|
Debt Issue |
|
|
|
As of December 31, 2016 |
|
|
|
|
Par Value |
|
Discount |
|
Costs |
|
Book Value |
|
Term Loan |
|
|
|
|
$ |
638.5 |
|
$ |
(2.7 |
) |
|
$ |
(8.6 |
) |
|
$ |
627.2 |
|
ABL
Facility (b) |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Secured Second A&R
CDA |
|
|
|
|
|
28.7 |
|
|
- |
|
|
|
(0.2 |
) |
|
|
28.5 |
|
Unsecured Second
A&R CDA |
|
|
|
|
|
73.2 |
|
|
- |
|
|
|
(0.4 |
) |
|
|
72.8 |
|
Lease financing
obligations |
|
|
|
|
|
269.9 |
|
|
- |
|
|
|
(1.3 |
) |
|
|
268.6 |
|
Total debt |
|
|
|
|
$ |
1,010.3 |
|
$ |
(2.7 |
) |
|
$ |
(10.5 |
) |
|
$ |
997.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Our total
leverage ratio for the four consecutive fiscal quarters ended March
31, 2017 was 3.62 to 1.00. |
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Managed
Accessibility was $19.6M. |
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) |
Managed
Accessibility was $44.4M. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL FINANCIAL INFORMATION |
YRC Worldwide Inc. and Subsidiaries |
For the Three Months Ended March 31 |
(Amounts in millions) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
|
|
2017 |
|
|
|
2016 |
|
|
Reconciliation
of net loss to Adjusted EBITDA: |
|
|
|
|
Net loss |
$ |
(25.3 |
) |
|
$ |
(12.0 |
) |
|
Interest
expense, net |
|
25.2 |
|
|
|
26.0 |
|
|
Income
tax benefit |
|
(4.1 |
) |
|
|
(1.8 |
) |
|
Depreciation and amortization |
|
37.1 |
|
|
|
40.7 |
|
|
EBITDA |
|
32.9 |
|
|
|
52.9 |
|
|
Adjustments for Term
Loan Agreement: |
|
|
|
|
(Gains)
losses on property disposals, net |
|
2.7 |
|
|
|
(0.3 |
) |
|
Letter of
credit expense |
|
1.7 |
|
|
|
2.2 |
|
|
Restructuring professional fees |
|
2.2 |
|
|
|
- |
|
|
Permitted
dispositions and other |
|
0.1 |
|
|
|
- |
|
|
Equity-based compensation expense |
|
1.4 |
|
|
|
1.8 |
|
|
Amortization of ratification bonus |
|
- |
|
|
|
4.6 |
|
|
Other,
net (a) |
|
2.2 |
|
|
|
1.7 |
|
|
Adjusted
EBITDA |
$ |
43.2 |
|
|
$ |
62.9 |
|
|
|
|
|
|
|
Operating revenue |
$ |
1,170.6 |
|
|
$ |
1,120.3 |
|
|
Adjusted EBITDA
margin |
|
3.7 |
% |
|
|
5.6 |
% |
|
|
|
|
|
|
(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 |
|
Adjusted EBITDA
by segment: |
|
2017 |
|
|
|
2016 |
|
|
YRC
Freight |
$ |
14.9 |
|
|
$ |
30.1 |
|
|
Regional
Transportation |
|
29.4 |
|
|
|
33.4 |
|
|
Corporate
and other |
|
(1.1 |
) |
|
|
(0.6 |
) |
|
Adjusted
EBITDA |
$ |
43.2 |
|
|
$ |
62.9 |
|
|
|
|
|
|
|
SUPPLEMENTAL FINANCIAL INFORMATION |
YRC Worldwide Inc. and Subsidiaries |
For the Three Months Ended March 31 |
(Amounts in millions) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
YRC Freight
segment |
|
2017 |
|
|
|
2016 |
|
|
Reconciliation
of operating income (loss) to Adjusted EBITDA: |
|
|
|
|
Operating income
(loss) |
$ |
(10.5 |
) |
|
$ |
4.1 |
|
|
Depreciation and amortization |
|
21.3 |
|
|
|
22.7 |
|
|
(Gains)
losses on property disposals, net |
|
2.1 |
|
|
|
(0.8 |
) |
|
Letter of
credit expense |
|
1.1 |
|
|
|
1.4 |
|
|
Amortization of ratification bonus |
|
- |
|
|
|
3.0 |
|
|
Other,
net (a) |
|
0.9 |
|
|
|
(0.3 |
) |
|
Adjusted
EBITDA |
$ |
14.9 |
|
|
$ |
30.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
Regional
Transportation segment |
|
2017 |
|
|
|
2016 |
|
|
Reconciliation
of operating income to Adjusted EBITDA: |
|
|
|
|
Operating
income |
$ |
12.2 |
|
|
$ |
12.4 |
|
|
Depreciation and amortization |
|
15.8 |
|
|
|
18.0 |
|
|
Losses on
property disposals, net |
|
0.6 |
|
|
|
0.5 |
|
|
Letter of
credit expense |
|
0.5 |
|
|
|
0.7 |
|
|
Amortization of ratification bonus |
|
- |
|
|
|
1.6 |
|
|
Other,
net (a) |
|
0.3 |
|
|
|
0.2 |
|
|
Adjusted EBITDA |
$ |
29.4 |
|
|
$ |
33.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
Corporate and
other |
|
2017 |
|
|
|
2016 |
|
|
Reconciliation
of operating loss to Adjusted EBITDA: |
|
|
|
|
Operating loss |
$ |
(4.7 |
) |
|
$ |
(3.1 |
) |
|
Letter of
credit expense |
|
0.1 |
|
|
|
0.1 |
|
|
Restructuring professional fees |
|
2.2 |
|
|
|
- |
|
|
Permitted
dispositions and other |
|
0.1 |
|
|
|
- |
|
|
Equity-based compensation expense |
|
1.4 |
|
|
|
1.8 |
|
|
Other,
net (a) |
|
(0.2 |
) |
|
|
0.6 |
|
|
Adjusted EBITDA |
$ |
(1.1 |
) |
|
$ |
(0.6 |
) |
|
|
|
|
|
(a) As required under our Term Loan Agreement,
Other, net shown above consists of the impact of certain items to
be included in Adjusted EBITDA. |
|
|
SUPPLEMENTAL FINANCIAL INFORMATION |
YRC Worldwide Inc. and Subsidiaries |
For the Trailing Twelve Months Ended March 31 |
(Amounts in millions) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
2017 |
|
|
2016 |
|
|
Reconciliation
of net income to Adjusted EBITDA: |
|
|
|
Net income |
$ |
8.2 |
|
$ |
10.3 |
|
|
Interest
expense, net |
|
102.2 |
|
|
105.7 |
|
|
Income
tax expense (benefit) |
|
0.8 |
|
|
(8.3 |
) |
|
Depreciation and amortization |
|
156.2 |
|
|
162.8 |
|
|
EBITDA |
|
267.4 |
|
|
270.5 |
|
|
Adjustments for Term
Loan Agreement: |
|
|
|
(Gains)
losses on property disposals, net |
|
(11.6 |
) |
|
0.3 |
|
|
Letter of
credit expense |
|
7.2 |
|
|
8.8 |
|
|
Restructuring professional fees |
|
2.2 |
|
|
0.2 |
|
|
Nonrecurring consulting fees |
|
- |
|
|
2.2 |
|
|
Permitted
dispositions and other |
|
3.1 |
|
|
0.2 |
|
|
Equity-based compensation expense |
|
6.9 |
|
|
9.8 |
|
|
Amortization of ratification bonus |
|
- |
|
|
18.3 |
|
|
Non-union
pension settlement charge |
|
- |
|
|
28.7 |
|
|
Other, net (a) |
|
2.6 |
|
|
(1.6 |
) |
|
Adjusted
EBITDA |
$ |
277.8 |
|
$ |
337.4 |
|
|
|
|
|
|
Operating revenue |
$ |
4,747.8 |
|
$ |
4,766.3 |
|
|
Adjusted EBITDA
margin |
|
5.9 |
% |
|
7.1 |
% |
|
|
|
|
|
(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 |
|
|
1Q17 |
|
1Q16 |
|
4Q16 |
|
% (b) |
|
% (b) |
|
Workdays |
|
64.0 |
|
|
|
63.5 |
|
|
|
61.0 |
|
|
|
|
|
|
Total picked up revenue (in millions) (a) |
$ |
728.2 |
|
|
$ |
695.6 |
|
|
$ |
713.8 |
|
|
4.7 |
|
|
2.0 |
|
|
Total tonnage (in thousands) |
|
1,547 |
|
|
|
1,485 |
|
|
|
1,520 |
|
|
4.2 |
|
|
1.8 |
|
|
Total tonnage per day (in thousands) |
|
24.18 |
|
|
|
23.38 |
|
|
|
24.92 |
|
|
3.4 |
|
|
(3.0 |
) |
|
Total shipments (in thousands) |
|
2,586 |
|
|
|
2,514 |
|
|
|
2,493 |
|
|
2.9 |
|
|
3.7 |
|
|
Total shipments per day (in thousands) |
|
40.40 |
|
|
|
39.58 |
|
|
|
40.86 |
|
|
2.1 |
|
|
(1.1 |
) |
|
Total picked up revenue/cwt. |
$ |
23.53 |
|
|
$ |
23.42 |
|
|
$ |
23.48 |
|
|
0.5 |
|
|
0.2 |
|
|
Total picked up revenue/cwt. (excl. FSC) |
$ |
21.06 |
|
|
$ |
21.42 |
|
|
$ |
21.16 |
|
|
(1.7 |
) |
|
(0.4 |
) |
|
Total picked up revenue/shipment |
$ |
282 |
|
|
$ |
277 |
|
|
$ |
286 |
|
|
1.8 |
|
|
(1.6 |
) |
|
Total picked up revenue/shipment (excl. FSC) |
$ |
252 |
|
|
$ |
253 |
|
|
$ |
258 |
|
|
(0.4 |
) |
|
(2.3 |
) |
|
Total weight/shipment (in pounds) |
|
1,197 |
|
|
|
1,181 |
|
|
|
1,220 |
|
|
1.3 |
|
|
(1.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
(a) Reconciliation of
operating revenue to total picked up revenue (in
millions): |
|
|
|
|
|
Operating revenue |
$ |
728.9 |
|
|
$ |
695.7 |
|
|
$ |
730.3 |
|
|
|
|
|
|
Change in revenue deferral and other |
|
(0.7 |
) |
|
|
(0.1 |
) |
|
|
(16.5 |
) |
|
|
|
|
|
Total picked up revenue |
$ |
728.2 |
|
|
$ |
695.6 |
|
|
$ |
713.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional Transportation |
|
|
|
|
|
|
|
|
Y/Y |
|
Sequential |
|
|
1Q17 |
|
1Q16 |
|
4Q16 |
|
% (b) |
|
% (b) |
|
Workdays |
|
64.0 |
|
|
|
64.5 |
|
|
|
60.5 |
|
|
|
|
|
|
Total picked up revenue (in millions) (a) |
$ |
443.1 |
|
|
$ |
426.7 |
|
|
$ |
417.1 |
|
|
3.9 |
|
|
6.2 |
|
|
Total tonnage (in thousands) |
|
1,925 |
|
|
|
1,900 |
|
|
|
1,791 |
|
|
1.3 |
|
|
7.5 |
|
|
Total tonnage per day (in thousands) |
|
30.07 |
|
|
|
29.46 |
|
|
|
29.60 |
|
|
2.1 |
|
|
1.6 |
|
|
Total shipments (in thousands) |
|
2,545 |
|
|
|
2,558 |
|
|
|
2,415 |
|
|
(0.5 |
) |
|
5.4 |
|
|
Total shipments per day (in thousands) |
|
39.77 |
|
|
|
39.65 |
|
|
|
39.92 |
|
|
0.3 |
|
|
(0.4 |
) |
|
Total picked up revenue/cwt. |
$ |
11.51 |
|
|
$ |
11.23 |
|
|
$ |
11.64 |
|
|
2.5 |
|
|
(1.1 |
) |
|
Total picked up revenue/cwt. (excl. FSC) |
$ |
10.34 |
|
|
$ |
10.31 |
|
|
$ |
10.49 |
|
|
0.2 |
|
|
(1.5 |
) |
|
Total picked up revenue/shipment |
$ |
174 |
|
|
$ |
167 |
|
|
$ |
173 |
|
|
4.4 |
|
|
0.8 |
|
|
Total picked up revenue/shipment (excl. FSC) |
$ |
156 |
|
|
$ |
153 |
|
|
$ |
156 |
|
|
2.0 |
|
|
0.4 |
|
|
Total weight/shipment (in pounds) |
|
1,512 |
|
|
|
1,486 |
|
|
|
1,483 |
|
|
1.8 |
|
|
2.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Reconciliation of
operating revenue to total picked up revenue (in
millions): |
|
|
|
|
|
Operating revenue |
$ |
441.8 |
|
|
$ |
424.8 |
|
|
$ |
418.0 |
|
|
|
|
|
|
Change in revenue deferral and other |
|
1.3 |
|
|
|
1.9 |
|
|
|
(0.9 |
) |
|
|
|
|
|
Total picked up revenue |
$ |
443.1 |
|
|
$ |
426.7 |
|
|
$ |
417.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Does not equal financial statement
revenue due to revenue adjustments for shipments in transit and the
impact of other revenue for YRC Freight. |
|
|
(b) Percent change based on unrounded figures and not
the rounded figures presented. |
|
|
|
|
|
Investor Contact:
Tony Carreño
913-696-6108
investor@yrcw.com
Media Contact:
Mike Kelley
916-696-6121
mike.kelley@yrcw.com
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