Yellow Corporation Reports Second Quarter 2023 Results
August 09 2023 - 9:04AM
Yellow Corporation (NASDAQ: YELL) reported results for the second
quarter ended June 30, 2023. Operating revenue was $1.127 billion
and operating income was $38.9 million which included a $75.9
million gain on property disposals. In comparison, operating
revenue in the second quarter of 2022 was $1.424 billion and
operating income was $99.2 million which included a $3.2 million
net gain on property disposals.
Net loss for second quarter 2023 was $14.7
million, or $0.28 per share, compared to net income of $60.0
million, or $1.17 per share in the second quarter 2022.
Following a substantial workforce reduction
impacting all areas of the organization, on August 6th, the Company
and its domestic subsidiaries filed voluntary petitions (the
“Chapter 11 Cases”) in the United States Bankruptcy Court for the
district of Delaware seeking relief under Chapter 11 of Title 11 of
the United States Bankruptcy Code.
Investor Contact: investor@myyellow.com
Media Contact: media@myyellow.com
CONSOLIDATED BALANCE
SHEETSYellow Corporation and Subsidiaries(Amounts in millions
except per share data) |
|
|
|
|
|
June 30, 2023 |
|
|
December 31, 2022 |
|
|
|
(Unaudited) |
|
|
|
|
Assets |
|
|
|
|
|
|
Current
Assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
112.8 |
|
|
$ |
235.1 |
|
Restricted amounts held in escrow |
|
|
19.6 |
|
|
|
3.9 |
|
Accounts receivable, net |
|
|
535.1 |
|
|
|
599.7 |
|
Prepaid expenses and other |
|
|
151.1 |
|
|
|
75.4 |
|
Total current assets |
|
|
818.6 |
|
|
|
914.1 |
|
Property and
Equipment: |
|
|
|
|
|
|
Cost |
|
|
3,065.9 |
|
|
|
3,109.0 |
|
Less - accumulated depreciation |
|
|
(1,926.2 |
) |
|
|
(1,940.0 |
) |
Net property and equipment |
|
|
1,139.7 |
|
|
|
1,169.0 |
|
Deferred
income taxes, net |
|
|
— |
|
|
|
0.3 |
|
Pension |
|
|
35.5 |
|
|
|
34.5 |
|
Operating
lease right-of-use assets |
|
|
123.1 |
|
|
|
139.7 |
|
Other
assets |
|
|
30.7 |
|
|
|
21.7 |
|
Total Assets |
|
$ |
2,147.6 |
|
|
$ |
2,279.3 |
|
Liabilities and Shareholders' Deficit |
|
|
|
|
|
|
Current
Liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
175.7 |
|
|
$ |
188.6 |
|
Wages, vacations and employee benefits |
|
|
235.1 |
|
|
|
221.4 |
|
Current operating lease liabilities |
|
|
43.0 |
|
|
|
53.1 |
|
Other current and accrued liabilities |
|
|
188.3 |
|
|
|
182.1 |
|
Current maturities of long-term debt |
|
|
1,274.5 |
|
|
|
71.8 |
|
Total current liabilities |
|
|
1,916.6 |
|
|
|
717.0 |
|
Other
Liabilities: |
|
|
|
|
|
|
Long-term debt, less current portion |
|
|
202.9 |
|
|
|
1,466.2 |
|
Deferred income taxes, net |
|
|
0.5 |
|
|
|
— |
|
Pension and postretirement |
|
|
137.4 |
|
|
|
134.0 |
|
Operating lease liabilities |
|
|
89.2 |
|
|
|
94.6 |
|
Claims and other liabilities |
|
|
248.8 |
|
|
|
249.0 |
|
Commitments and contingencies |
|
|
|
|
|
|
Shareholders' Deficit: |
|
|
|
|
|
|
Cumulative preferred stock, $1 par value per share |
|
|
— |
|
|
|
— |
|
Common stock, $0.01 par value per share |
|
|
0.5 |
|
|
|
0.5 |
|
Capital surplus |
|
|
2,396.6 |
|
|
|
2,393.4 |
|
Accumulated deficit |
|
|
(2,522.5 |
) |
|
|
(2,453.2 |
) |
Accumulated other comprehensive loss |
|
|
(229.7 |
) |
|
|
(229.5 |
) |
Treasury stock, at cost |
|
|
(92.7 |
) |
|
|
(92.7 |
) |
Total shareholders' deficit |
|
|
(447.8 |
) |
|
|
(381.5 |
) |
Total Liabilities and Shareholders' Deficit |
|
$ |
2,147.6 |
|
|
$ |
2,279.3 |
|
STATEMENTS OF
CONSOLIDATED COMPREHENSIVE INCOME (LOSS)Yellow Corporation and
SubsidiariesFor the Three Months Ended June 30(Amounts in millions
except per share data, shares in thousands)(Unaudited) |
|
|
|
|
|
Three Months |
|
|
Six Months |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Operating Revenue |
|
$ |
1,126.8 |
|
|
$ |
1,423.7 |
|
|
$ |
2,285.4 |
|
|
$ |
2,684.1 |
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and employee benefits |
|
|
686.3 |
|
|
|
736.7 |
|
|
|
1,358.8 |
|
|
|
1,447.7 |
|
Fuel, operating expenses and supplies |
|
|
227.0 |
|
|
|
287.3 |
|
|
|
467.6 |
|
|
|
530.9 |
|
Purchased transportation |
|
|
150.7 |
|
|
|
206.1 |
|
|
|
302.7 |
|
|
|
391.5 |
|
Depreciation and amortization |
|
|
35.8 |
|
|
|
35.5 |
|
|
|
71.1 |
|
|
|
71.2 |
|
Other operating expenses |
|
|
64.0 |
|
|
|
62.1 |
|
|
|
132.0 |
|
|
|
143.1 |
|
Gains on property disposals, net |
|
|
(75.9 |
) |
|
|
(3.2 |
) |
|
|
(76.4 |
) |
|
|
(8.7 |
) |
Total operating expenses |
|
|
1,087.9 |
|
|
|
1,324.5 |
|
|
|
2,255.8 |
|
|
|
2,575.7 |
|
Operating Income |
|
|
38.9 |
|
|
|
99.2 |
|
|
|
29.6 |
|
|
|
108.4 |
|
Nonoperating Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
48.3 |
|
|
|
38.0 |
|
|
|
94.8 |
|
|
|
75.7 |
|
Non-union pension and postretirement benefits |
|
|
1.1 |
|
|
|
(0.5 |
) |
|
|
2.3 |
|
|
|
(0.9 |
) |
Other, net |
|
|
0.1 |
|
|
|
(0.1 |
) |
|
|
(0.1 |
) |
|
|
0.1 |
|
Nonoperating expenses, net |
|
|
49.5 |
|
|
|
37.4 |
|
|
|
97.0 |
|
|
|
74.9 |
|
Income
(loss) before income taxes |
|
|
(10.6 |
) |
|
|
61.8 |
|
|
|
(67.4 |
) |
|
|
33.5 |
|
Income tax
expense |
|
|
4.1 |
|
|
|
1.8 |
|
|
|
1.9 |
|
|
|
1.0 |
|
Net income
(loss) |
|
|
(14.7 |
) |
|
|
60.0 |
|
|
|
(69.3 |
) |
|
|
32.5 |
|
Other
comprehensive income (loss), net of tax |
|
|
2.4 |
|
|
|
1.5 |
|
|
|
(0.2 |
) |
|
|
3.8 |
|
Comprehensive Income (Loss) |
|
$ |
(12.3 |
) |
|
$ |
61.5 |
|
|
$ |
(69.5 |
) |
|
$ |
36.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Common Shares Outstanding - Basic |
|
|
52,010 |
|
|
|
51,342 |
|
|
|
51,871 |
|
|
|
51,217 |
|
Average
Common Shares Outstanding - Diluted |
|
|
52,010 |
|
|
|
52,135 |
|
|
|
51,871 |
|
|
|
52,183 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(Loss) Per Share - Basic |
|
$ |
(0.28 |
) |
|
$ |
1.17 |
|
|
$ |
(1.34 |
) |
|
$ |
0.64 |
|
Income
(Loss) Per Share - Diluted |
|
$ |
(0.28 |
) |
|
$ |
1.15 |
|
|
$ |
(1.34 |
) |
|
$ |
0.62 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Ratio(a): |
|
|
96.5 |
% |
|
|
93.0 |
% |
|
|
98.7 |
% |
|
|
96.0 |
% |
(a) 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.
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