YRC Worldwide Inc. (NASDAQ: YRCW) reported results for the first
quarter ended March 31, 2020. Operating revenue was $1.150 billion
and operating income was $28.0 million, which included a $39.3
million net gain on property sales. In comparison, operating
revenue in the first quarter of 2019 was $1.182 billion and
operating loss was $31.7 million, which included a $1.6 million net
loss on property disposals.
Net income for first quarter 2020 was $4.3
million, or $0.13 per share, compared to net loss of $49.1 million,
or $1.48 per share, in first quarter 2019.
“Despite the COVID-19 pandemic and ensuing
economic fallout during the first quarter of this year, we have
continued our enterprise transformation efforts, working toward our
vision of combining the power of our five brands into one network
and one enterprise-wide service offering,” said Darren Hawkins,
Chief Executive Officer.
Additionally, as we realized the seriousness and
severity of its impact on the economy and the less-than-truckload
(LTL) industry specifically, we took immediate and swift liquidity
preservation actions, including:
- Working with our term loan lenders to secure an amendment
waiving our minimum Adjusted EBITDA covenant for every quarter this
year through and including the year-end 2020 covenant and to
convert the vast majority of the cash interest payments due in the
first half of the year into non-cash payable-in-kind;
- Making appropriate adjustments to our cost structure such as
elimination of executive bonuses and merit increases, employee
furloughs and cessation of discretionary spend items;
and
- Implementing additional liquidity preservation measures as
appropriate under the circumstances.
“Our nation has never depended more on our
30,000 employees than it does today. Coast to coast, our team
members are answering the call every day to ensure our customers
receive the goods that our communities need, and we will continue
to do so as the economy stabilizes and begins to recover.
YRCW and our family of companies are vital to the nation’s supply
chain and a critical partner to over 200,000 customers throughout
the nation including many medical suppliers, and the U.S.
government, including the Departments of Defense, Energy, and
Homeland Security. Since our beginnings over 90 years ago, we have
grown to become the second largest LTL carrier and the fifth
largest transportation company in America transporting shipments
every day to every corner of the country to every type of business,
small, large and everything in between. I have always been proud of
our employees, but today is like none other in my career. I stand
in awe of their dedication and resilience to deliver essential
goods, and as the nation gets back to business, our employees will
continue to be there to help put America on the road to recovery”
concluded Hawkins.
Financial Update
- First quarter 2020 revenue was $1.150 billion compared to
revenue of $1.182 billion in first quarter of 2019.
- First quarter 2020 net income was $4.3 million compared to a
net loss of $49.1 million in first quarter 2019.
- On a non-GAAP basis, the Company generated consolidated
Adjusted EBITDA of $34.1 million in 1Q20, compared to $30.1 million
in the prior year comparable quarter (as detailed in the
reconciliation below). Last twelve month (LTM) consolidated
Adjusted EBITDA was $214.6 million compared to $292.2 million in
2019 (as detailed in the reconciliation below).
Operational Update
- The consolidated 1Q20 LTL revenue per hundredweight including
fuel surcharge decreased 4.2%; however, inversely, weight per
shipment increased 3.9% for the quarter resulting in a LTL revenue
per shipment decrease of just 0.4% when compared to the same period
in 2019. Excluding fuel surcharge, LTL revenue per
hundredweight was down 4.0% and LTL revenue per shipment was
essentially flat.
- 1Q20 LTL tonnage per day decreased 3.0% on a consolidated basis
compared to 1Q19.
- The consolidated operating ratio for the 1Q20 was 97.6 compared
to 102.7 in 1Q19.
Liquidity Update
- At March 31, 2020, the Company’s outstanding debt was $879.9
million, a decrease of $4.6 million compared to $884.5 million as
of March 31, 2019.
- For the three months ended March 31, 2020, cash used in
operating activities was $15.6 million compared to $41.7 million
for the three months ended March 31, 2019.
- The Company’s available liquidity, which is comprised of cash
and cash equivalents and Managed Accessibility (as detailed in the
supplemental information provided below) under its ABL facility was
$80.4 million as of December 31, 2019. During the first
quarter, as a result of our liquidity preservation efforts, our
available liquidity increased by $37.6 million to end the quarter
March 31, 2020 at $118.0 million.
- Based on our current expectations and in conjunction with the
COVID-19 pandemic, we think it will be unlikely that we be in
compliance with the Adjusted EBITDA covenant when it becomes
applicable again at the end of first quarter of 2021 or possibly
the liquidity covenant required by the amendment to our term loan
facility over the specified period that covenant is applicable.
As a result, we will need to either seek an extension of the
waiver period or otherwise modify the covenant.
Key Information – First
quarter 2020 compared to first quarter 2019
YRC Worldwide |
|
|
2020 |
|
|
2019 |
|
|
Percent Change(a) |
Workdays |
|
|
65.5 |
|
|
63.0 |
|
|
|
Operating revenue (in millions) |
|
$ |
1,150.4 |
|
$ |
1,182.3 |
|
|
(2.7 |
)% |
Operating income (in millions) |
|
$ |
28.0 |
|
$ |
(31.7 |
) |
|
188.3 |
% |
Operating ratio |
|
|
97.6 |
|
|
102.7 |
|
|
5.1 |
pp |
LTL
tonnage per day (in thousands) |
|
|
38.85 |
|
|
40.07 |
|
|
(3.0 |
)% |
LTL
shipments per day (in thousands) |
|
|
66.00 |
|
|
70.73 |
|
|
(6.7 |
)% |
LTL
picked up revenue per hundredweight incl FSC |
|
$ |
20.63 |
|
$ |
21.52 |
|
|
(4.2 |
)% |
LTL
picked up revenue per hundredweight excl FSC |
|
$ |
18.27 |
|
$ |
19.02 |
|
|
(4.0 |
)% |
LTL
picked up revenue per shipment incl FSC |
|
$ |
243 |
|
$ |
244 |
|
|
(0.4 |
)% |
LTL
picked up revenue per shipment excl FSC |
|
$ |
215 |
|
$ |
215 |
|
|
(0.2 |
)% |
LTL
weight/shipment (in pounds) |
|
|
1,177 |
|
|
1,133 |
|
|
3.9 |
% |
Total
tonnage per day (in thousands) |
|
|
49.37 |
|
|
50.07 |
|
|
(1.4 |
)% |
Total
shipments per day (in thousands) |
|
|
67.57 |
|
|
72.21 |
|
|
(6.4 |
)% |
Total
picked up revenue per hundredweight incl FSC |
|
$ |
17.65 |
|
$ |
18.65 |
|
|
(5.4 |
)% |
Total
picked up revenue per hundredweight excl FSC |
|
$ |
15.69 |
|
$ |
16.52 |
|
|
(5.1 |
)% |
Total picked up revenue per shipment incl FSC |
|
$ |
258 |
|
|
$ |
259 |
|
|
(0.3 |
)% |
Total
picked up revenue per shipment excl FSC |
|
$ |
229 |
|
|
$ |
229 |
|
|
0.0 |
% |
Total
weight/shipment (in pounds) |
|
1,461 |
|
|
1,387 |
|
|
5.4 |
% |
(a) 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, Monday May 11, 2020, beginning
at 5:00 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 is a non-GAAP measure that
reflects EBITDA, and further adjusts for letter of credit fees,
equity-based compensation expense, net gains or losses on property
disposals, restructuring charges, transaction costs related to
issuances of debt, non-recurring consulting fees, non-cash
impairment charges and the gains or losses from permitted
dispositions, discontinued operations, and certain non-cash
expenses, charges and losses (provided that if any of such non-cash
expenses, charges or losses represents an accrual or reserve for
potential cash items in any future period, the cash payment in
respect thereof in such future period will be subtracted from
Consolidated EBITDA in such future period to the extent paid).
Adjusted EBITDA as used herein is defined as Consolidated EBITDA in
our new term loan facility entered into September 11,
2019, and as amended on April 7, 2020. 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 our credit facilities and to determine
certain management and employee bonus compensation. We believe our
presentation of EBITDA and Adjusted EBITDA is useful to investors
and other users as these measures represent key supplemental
information our management uses to compare and evaluate our core
underlying business results both on a consolidated basis and across
our business segments, particularly in light of our leverage
position and the capital-intensive nature of our business. Further,
EBITDA is a measure that is commonly used by other companies in our
industry and provides a comparison for investors to evaluate the
performance of the companies in the industry. Additionally,
Adjusted EBITDA helps investors to understand how the company is
tracking against our financial covenant in our term loan credit
agreement. 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 service interest or fund principal
payments on our outstanding debt, letter of credit expenses,
restructuring charges, transaction costs related to debt, non-cash
charges, charges or losses (subject to the conditions above), or
nonrecurring consulting fees, among other items;
- 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 for certain employees, although
Adjusted EBITDA excludes employee equity-based compensation expense
when presenting our ongoing operating performance for a particular
period; and
- 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 (loss) 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,” “look forward,”
“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
liquidity to satisfy our cash needs and future cash commitments,
including (without limitation) the impact of COVID-19 on
our results of operations, financial condition and cash flows;
general economic factors and transportation industry-specific
economic conditions, including the impact of COVID-19; our
obligations related to our indebtedness and lease and pension
funding requirements, and our ability to achieve increased cash
flows through improvement in operations; our failure to comply with
the covenants in the documents governing our existing and future
indebtedness; customer demand in the retail and manufacturing
sectors; business risks and increasing costs associated with the
transportation industry, including increasing equipment,
operational and technology costs and disruption from natural
disasters; competition and competitive pressure on pricing; the
risk of labor disruptions or stoppages, if our relationship with
our employees and unions were to deteriorate; increasing pension
expense and funding obligations, subject to interest rate
volatility; 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, including (without
limitation) labor laws and laws and regulations regarding the
environment; 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; a significant privacy breach or IT system disruption;
risks of operating in foreign countries; our dependence on key
employees; seasonality; shortages of fuel and 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; limitations on our operations, our
financing opportunities, potential strategic transactions,
acquisitions or dispositions resulting from restrictive 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 Holland, New Penn,
Reddaway, and YRC Freight, as well as the logistics company HNRY
Logistics. Collectively, YRC Worldwide companies have one of the
largest, most comprehensive logistics and 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.
Investor Contact: |
Eric
Birge913-696-6108investor@yrcw.com |
|
|
Media Contact: |
Mike Kelley913-696-6121mike.kelley@yrcw.com |
|
|
SOURCE: YRC
Worldwide |
|
|
CONSOLIDATED BALANCE
SHEETS |
YRC Worldwide Inc.
and Subsidiaries |
(Amounts in millions
except share and per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
|
December 31, |
|
|
|
|
|
|
|
2020 |
|
|
|
2019 |
|
ASSETS |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
103.9 |
|
|
$ |
109.2 |
|
|
Restricted amounts held in escrow |
|
|
2.0 |
|
|
|
- |
|
|
Accounts receivable, net |
|
|
525.2 |
|
|
|
464.4 |
|
|
Prepaid expenses and other |
|
|
60.0 |
|
|
|
44.6 |
|
|
|
Total current assets |
|
|
691.1 |
|
|
|
618.2 |
|
|
|
|
|
|
|
|
|
PROPERTY AND EQUIPMENT: |
|
|
|
|
|
Cost |
|
|
2,728.9 |
|
|
|
2,761.6 |
|
|
Less - accumulated depreciation |
|
|
(1,990.0 |
) |
|
|
(1,991.3 |
) |
|
|
Net property and equipment |
|
|
738.9 |
|
|
|
770.3 |
|
|
|
|
|
|
|
|
|
Deferred income taxes, net |
|
|
0.5 |
|
|
|
0.6 |
|
Operating lease right-of-use assets |
|
|
355.5 |
|
|
|
386.0 |
|
Other assets |
|
|
67.0 |
|
|
|
56.5 |
|
|
|
Total assets |
|
$ |
1,853.0 |
|
|
$ |
1,831.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' DEFICIT |
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
|
Accounts payable |
|
$ |
194.7 |
|
|
$ |
163.7 |
|
|
Wages, vacations, and employee benefits |
|
|
212.2 |
|
|
|
195.9 |
|
|
Current operating lease liabilities |
|
|
118.6 |
|
|
|
120.8 |
|
|
Other current and accrued liabilities |
|
|
174.9 |
|
|
|
167.5 |
|
|
Current maturities of long-term debt |
|
|
4.1 |
|
|
|
4.1 |
|
|
|
Total current liabilities |
|
|
704.5 |
|
|
|
652.0 |
|
|
|
|
|
|
|
|
|
OTHER LIABILITIES: |
|
|
|
|
|
Long-term debt, less current portion |
|
|
838.3 |
|
|
|
858.1 |
|
|
Deferred income taxes, net |
|
|
- |
|
|
|
- |
|
|
Pension and postretirement |
|
|
230.5 |
|
|
|
236.5 |
|
|
Operating lease liabilities |
|
|
223.0 |
|
|
|
246.3 |
|
|
Claims and other liabilities |
|
|
290.5 |
|
|
|
279.9 |
|
|
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 |
|
|
2,334.7 |
|
|
|
2,332.9 |
|
|
Accumulated deficit |
|
|
(2,308.1 |
) |
|
|
(2,312.4 |
) |
|
Accumulated other comprehensive loss |
|
|
(368.0 |
) |
|
|
(369.3 |
) |
|
Treasury stock, at cost (410 shares) |
|
|
(92.7 |
) |
|
|
(92.7 |
) |
|
|
|
Total shareholders' deficit |
|
|
(433.8 |
) |
|
|
(441.2 |
) |
|
|
Total liabilities and shareholders' deficit |
|
$ |
1,853.0 |
|
|
$ |
1,831.6 |
|
|
|
|
|
|
|
|
|
|
STATEMENTS OF
CONSOLIDATED COMPREHENSIVE INCOME (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 |
|
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
OPERATING REVENUE |
$ |
1,150.4 |
|
|
$ |
1,182.3 |
|
|
|
|
|
|
|
OPERATING EXPENSES: |
|
|
|
|
Salaries, wages and employee benefits |
|
720.2 |
|
|
|
718.2 |
|
|
Fuel, operating expenses and supplies |
|
208.0 |
|
|
|
235.9 |
|
|
Purchased transportation |
|
136.2 |
|
|
|
146.3 |
|
|
Depreciation and amortization |
|
35.7 |
|
|
|
40.0 |
|
|
Other operating expenses |
|
61.6 |
|
|
|
63.8 |
|
|
(Gains) losses on property disposals, net |
|
(39.3 |
) |
|
|
1.6 |
|
|
Impairment charges |
|
- |
|
|
|
8.2 |
|
|
|
Total
operating expenses |
|
1,122.4 |
|
|
|
1,214.0 |
|
OPERATING INCOME (LOSS) |
|
28.0 |
|
|
|
(31.7 |
) |
|
|
|
|
|
|
NONOPERATING EXPENSES: |
|
|
|
|
Interest expense |
|
28.3 |
|
|
|
27.0 |
|
|
Non-union pension and postretirement benefits |
|
(1.6 |
) |
|
|
0.3 |
|
|
Other, net |
|
(2.6 |
) |
|
|
(0.2 |
) |
|
|
Nonoperating
expenses, net |
|
24.1 |
|
|
|
27.1 |
|
|
|
|
|
|
|
INCOME (LOSS) BEFORE INCOME TAXES |
|
3.9 |
|
|
|
(58.8 |
) |
INCOME TAX BENEFIT |
|
(0.4 |
) |
|
|
(9.7 |
) |
NET INCOME (LOSS) |
|
4.3 |
|
|
|
(49.1 |
) |
OTHER COMPREHENSIVE INCOME, NET OF TAX |
|
1.3 |
|
|
|
3.5 |
|
|
COMPREHENSIVE INCOME (LOSS) |
$ |
5.6 |
|
|
$ |
(45.6 |
) |
|
|
|
|
|
|
AVERAGE COMMON SHARES OUTSTANDING - BASIC |
|
33,791 |
|
|
|
33,150 |
|
AVERAGE COMMON SHARES OUTSTANDING - DILUTED |
|
35,630 |
|
|
|
33,150 |
|
|
|
|
|
|
|
EARNINGS (LOSS) PER SHARE - BASIC |
$ |
0.13 |
|
|
$ |
(1.48 |
) |
EARNINGS (LOSS) PER SHARE - DILUTED |
$ |
0.12 |
|
|
$ |
(1.48 |
) |
|
|
|
|
|
|
OPERATING RATIO (a): |
|
97.6 |
% |
|
|
102.7 |
% |
|
|
|
|
|
|
(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. |
|
|
|
|
|
|
|
STATEMENTS OF
CONSOLIDATED CASH FLOWS |
YRC Worldwide Inc.
and Subsidiaries |
For the Three Months
Ended March 31 |
(Amounts in
millions) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
OPERATING ACTIVITIES: |
|
|
|
|
Net income (loss) |
$ |
4.3 |
|
|
$ |
(49.1 |
) |
|
Adjustments to reconcile net income (loss) to cash flows from
operating activities: |
|
|
|
|
|
Depreciation and amortization |
|
35.7 |
|
|
|
40.0 |
|
|
|
Lease amortization and accretion expense |
|
43.1 |
|
|
|
41.2 |
|
|
|
Lease payments |
|
(38.1 |
) |
|
|
(36.4 |
) |
|
|
Equity-based compensation and employee benefits expense |
|
5.6 |
|
|
|
5.3 |
|
|
|
(Gains) losses on property disposals, net |
|
(39.3 |
) |
|
|
1.6 |
|
|
|
Impairment charges |
|
- |
|
|
|
8.2 |
|
|
|
Deferred income tax benefit, net |
|
(0.4 |
) |
|
|
- |
|
|
|
Other non-cash items, net |
|
4.0 |
|
|
|
0.8 |
|
|
Changes in assets and liabilities, net: |
|
|
|
|
|
Accounts receivable |
|
(61.0 |
) |
|
|
(42.1 |
) |
|
|
Accounts payable |
|
14.9 |
|
|
|
12.8 |
|
|
|
Other operating assets |
|
(3.9 |
) |
|
|
(20.0 |
) |
|
|
Other operating liabilities |
|
19.5 |
|
|
|
(4.0 |
) |
|
|
Net cash used by operating activities |
|
(15.6 |
) |
|
|
(41.7 |
) |
|
|
|
|
|
|
|
INVESTING ACTIVITIES: |
|
|
|
|
Acquisition of property and equipment |
|
(12.4 |
) |
|
|
(32.6 |
) |
|
Proceeds from disposal of property and equipment |
|
45.0 |
|
|
|
0.8 |
|
|
|
Net cash provided by (used in) investing activities |
|
32.6 |
|
|
|
(31.8 |
) |
|
|
|
|
|
|
|
FINANCING ACTIVITIES: |
|
|
|
|
Repayment of long-term debt |
|
(20.1 |
) |
|
|
(1.9 |
) |
|
Payments for tax withheld on equity-based compensation |
|
(0.2 |
) |
|
|
(0.6 |
) |
|
|
Net cash used in financing activities |
|
(20.3 |
) |
|
|
(2.5 |
) |
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED AMOUNTS HELD
IN ESCROW |
|
(3.3 |
) |
|
|
(76.0 |
) |
CASH, CASH EQUIVALENTS AND RESTRICTED AMOUNTS HELD IN ESCROW,
BEGINNING OF PERIOD |
|
109.2 |
|
|
|
227.6 |
|
CASH, CASH EQUIVALENTS AND RESTRICTED AMOUNTS HELD IN ESCROW, END
OF PERIOD |
$ |
105.9 |
|
|
$ |
151.6 |
|
|
|
|
|
|
|
|
SUPPLEMENTAL CASH FLOW INFORMATION |
|
|
|
Interest paid |
$ |
(8.6 |
) |
|
$ |
(13.3 |
) |
Income tax payment, net |
|
(0.5 |
) |
|
|
(1.6 |
) |
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL
FINANCIAL INFORMATION |
YRC Worldwide Inc.
and Subsidiaries |
For the Three Months
Ended March 31 |
(Amounts in
millions) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL INFORMATION: Total Debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt
Issue |
|
|
|
As of March 31, 2020 |
|
Par Value |
|
Discount |
|
Costs |
|
Book Value |
|
New Term Loan |
|
$ |
580.6 |
|
|
$ |
(25.7 |
) |
|
$ |
(11.3 |
) |
|
$ |
543.6 |
|
|
ABL Facility |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Secured Second A&R CDA |
|
|
26.0 |
|
|
|
- |
|
|
|
(0.1 |
) |
|
|
25.9 |
|
|
Unsecured Second A&R CDA |
|
|
45.2 |
|
|
|
- |
|
|
|
(0.1 |
) |
|
|
45.1 |
|
|
Lease financing obligations |
|
|
228.1 |
|
|
|
- |
|
|
|
(0.3 |
) |
|
|
227.8 |
|
|
|
Total debt |
|
$ |
879.9 |
|
|
$ |
(25.7 |
) |
|
$ |
(11.8 |
) |
|
$ |
842.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt
Issue |
|
|
|
As of December 31, 2019 |
|
Par Value |
|
Discount |
|
Costs |
|
Book Value |
|
New Term Loan |
|
$ |
600.0 |
|
|
$ |
(28.1 |
) |
|
$ |
(12.0 |
) |
|
$ |
559.9 |
|
|
ABL Facility |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Secured Second A&R CDA |
|
|
26.0 |
|
|
|
- |
|
|
|
(0.1 |
) |
|
|
25.9 |
|
|
Unsecured Second A&R CDA |
|
|
45.2 |
|
|
|
- |
|
|
|
(0.1 |
) |
|
|
45.1 |
|
|
Lease financing obligations |
|
|
231.6 |
|
|
|
- |
|
|
|
(0.3 |
) |
|
|
231.3 |
|
|
|
Total debt |
|
$ |
902.8 |
|
|
$ |
(28.1 |
) |
|
$ |
(12.5 |
) |
|
$ |
862.2 |
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL INFORMATION: Liquidity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31, |
|
|
December
31, |
|
|
|
|
|
|
|
|
|
|
2020 |
|
|
|
2019 |
|
|
Cash and cash equivalents |
|
|
|
|
|
$ |
103.9 |
|
|
$ |
109.2 |
|
|
Changes to restricted cash |
|
|
|
|
|
|
(5.0 |
) |
|
|
(29.0 |
) |
|
Managed Accessibility (a) |
|
|
|
|
|
|
19.1 |
|
|
|
0.2 |
|
|
|
Total Cash and cash equivalents and Managed
Accessibility |
|
$ |
118.0 |
|
|
$ |
80.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Managed
Accessibility represents the maximum amount we would access on the
ABL Facility and is adjusted for eligible receivables plus eligible
borrowing base cash measured for the applicable period. Based on
the eligible receivable’s management uses to measure availability,
which is 10% of the borrowing line, the credit agreement governing
the ABL Facility permits adjustments from eligible borrowing base
cash to restricted cash prior to the compliance measurement date
which is 15 days from the period close. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL
FINANCIAL INFORMATION |
YRC Worldwide Inc.
and Subsidiaries |
For the Three Months
Ended March 31 |
(Amounts in
millions) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Three Months |
|
|
|
|
2020 |
|
|
|
2019 |
|
Reconciliation of net income (loss) to
Adjusted EBITDA(a): |
|
|
|
Net income (loss) |
$ |
4.3 |
|
|
$ |
(49.1 |
) |
|
Interest expense, net |
|
28.2 |
|
|
|
26.5 |
|
|
Income tax expense (benefit) |
|
(0.4 |
) |
|
|
(9.7 |
) |
|
Depreciation and amortization |
|
35.7 |
|
|
|
40.0 |
|
EBITDA |
|
67.8 |
|
|
|
7.7 |
|
Adjustments for New Term Loan Agreement: |
|
|
|
|
(Gains) losses on property disposals, net |
|
(39.3 |
) |
|
|
1.6 |
|
|
Non-cash reserve changes(b) |
|
0.3 |
|
|
|
- |
|
|
Impairment charges |
|
- |
|
|
|
8.2 |
|
|
Letter of credit expense |
|
1.6 |
|
|
|
1.6 |
|
|
Permitted dispositions and other |
|
0.2 |
|
|
|
(1.1 |
) |
|
Equity-based compensation expense |
|
2.0 |
|
|
|
2.3 |
|
|
Other, net |
|
(1.6 |
) |
|
|
1.1 |
|
|
Expense amounts subject to 10% threshold(c) |
|
3.1 |
|
|
|
8.7 |
|
Adjusted EBITDA prior to 10% threshold |
|
34.1 |
|
|
|
30.1 |
|
|
Adjustments pursuant to TTM calculation(c) |
|
- |
|
|
|
- |
|
Adjusted EBITDA |
$ |
34.1 |
|
|
$ |
30.1 |
|
|
|
|
|
|
|
(a) |
|
Certain reclassifications have been made to prior year to conform
to current year presentation. |
(b) |
|
Non-cash reserve changes reflect the net non-cash reserve charge
for union and non-union vacation, with such non-cash reserve
adjustment to be reduced by cash charges in a future period when
paid. |
(c) |
|
Pursuant to the New Term Loan Agreement, Adjusted EBITDA limits
certain adjustments in aggregate to 10% of the
trailing-twelve-month ("TTM") consolidated Adjusted EBITDA, prior
to the inclusion of amounts subject to the 10% threshold, for each
period ending. Such adjustments include, but are not limited to,
restructuring charges, integration costs, severance, and
non-recurring charges. The limitation calculation is updated
quarterly based on TTM Adjusted EBITDA, and any necessary
adjustment resulting from this limitation, if applicable, will be
presented here. |
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL
FINANCIAL INFORMATION |
YRC Worldwide Inc.
and Subsidiaries |
For the Trailing
Twelve Months Ended March 31 |
(Amounts in
millions) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
|
|
2019 |
|
Reconciliation of net loss to Adjusted
EBITDA(a): |
|
|
Net loss |
$ |
(50.6 |
) |
$ |
(14.3 |
) |
|
Interest expense, net |
|
111.6 |
|
|
105.5 |
|
|
Income tax expense |
|
5.0 |
|
|
14.3 |
|
|
Depreciation and amortization |
|
148.1 |
|
|
150.0 |
|
EBITDA |
|
214.1 |
|
|
255.5 |
|
Adjustments for Term Loan Agreement: |
|
|
|
Gains on property disposals, net |
|
(54.6 |
) |
|
(22.4 |
) |
|
Non-cash reserve changes(b) |
|
16.4 |
|
|
- |
|
|
Impairment charges |
|
- |
|
|
8.2 |
|
|
Letter of credit expense |
|
6.5 |
|
|
6.5 |
|
|
Permitted dispositions and other |
|
0.4 |
|
|
(1.3 |
) |
|
Equity-based compensation expense |
|
6.0 |
|
|
7.0 |
|
|
Loss on extinguishment of debt |
|
11.2 |
|
|
- |
|
|
Non-union pension settlement charge |
|
1.8 |
|
|
10.9 |
|
|
Other, net |
|
0.2 |
|
|
2.3 |
|
|
Expense amounts subject to 10% threshold(c) |
|
12.6 |
|
|
25.5 |
|
Adjusted EBITDA prior to 10% threshold |
|
214.6 |
|
|
292.2 |
|
|
Adjustments pursuant to TTM calculation(c) |
|
- |
|
|
- |
|
Adjusted EBITDA |
$ |
214.6 |
|
$ |
292.2 |
|
|
|
|
|
|
For explanations of footnotes (a), (b) and (c), please refer to
previous page. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YRC
Worldwide Inc. |
Statistics |
Quarterly
Comparison |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Y/Y |
|
Sequential |
|
|
1Q20 |
|
1Q19 |
|
4Q19 |
|
% (b) |
|
% (b) |
Workdays |
|
65.5 |
|
|
|
63.0 |
|
|
|
62.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LTL picked up revenue (in millions) |
$ |
1,049.6 |
|
|
$ |
1,086.3 |
|
|
$ |
1,052.4 |
|
|
(3.4 |
) |
|
(0.3 |
) |
LTL tonnage (in thousands) |
|
2,544 |
|
|
|
2,524 |
|
|
|
2,436 |
|
|
0.8 |
|
|
4.5 |
|
LTL tonnage per day (in thousands) |
|
38.85 |
|
|
|
40.07 |
|
|
|
39.28 |
|
|
(3.0 |
) |
|
(1.1 |
) |
LTL shipments (in thousands) |
|
4,323 |
|
|
|
4,456 |
|
|
|
4,284 |
|
|
(3.0 |
) |
|
0.9 |
|
LTL shipments per day (in thousands) |
|
66.00 |
|
|
|
70.73 |
|
|
|
69.10 |
|
|
(6.7 |
) |
|
(4.5 |
) |
LTL picked up revenue/cwt. |
$ |
20.63 |
|
|
$ |
21.52 |
|
|
$ |
21.60 |
|
|
(4.2 |
) |
|
(4.5 |
) |
LTL picked up revenue/cwt. (excl. FSC) |
$ |
18.27 |
|
|
$ |
19.02 |
|
|
$ |
19.04 |
|
|
(4.0 |
) |
|
(4.0 |
) |
LTL picked up revenue/shipment |
$ |
243 |
|
|
$ |
244 |
|
|
$ |
246 |
|
|
(0.4 |
) |
|
(1.2 |
) |
LTL picked up revenue/shipment (excl. FSC) |
$ |
215 |
|
|
$ |
215 |
|
|
$ |
216 |
|
|
(0.2 |
) |
|
(0.7 |
) |
LTL weight/shipment (in pounds) |
|
1,177 |
|
|
|
1,133 |
|
|
|
1,137 |
|
|
3.9 |
|
|
3.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total picked up revenue (in millions)(a) |
$ |
1,141.4 |
|
|
$ |
1,176.4 |
|
|
$ |
1,143.2 |
|
|
(3.0 |
) |
|
(0.2 |
) |
Total tonnage (in thousands) |
|
3,234 |
|
|
|
3,154 |
|
|
|
3,089 |
|
|
2.5 |
|
|
4.7 |
|
Total tonnage per day (in thousands) |
|
49.37 |
|
|
|
50.07 |
|
|
|
49.82 |
|
|
(1.4 |
) |
|
(0.9 |
) |
Total shipments (in thousands) |
|
4,426 |
|
|
|
4,549 |
|
|
|
4,382 |
|
|
(2.7 |
) |
|
1.0 |
|
Total shipments per day (in thousands) |
|
67.57 |
|
|
|
72.21 |
|
|
|
70.68 |
|
|
(6.4 |
) |
|
(4.4 |
) |
Total revenue/cwt. |
$ |
17.65 |
|
|
$ |
18.65 |
|
|
$ |
18.50 |
|
|
(5.4 |
) |
|
(4.6 |
) |
Total revenue/cwt. (excl. FSC) |
$ |
15.69 |
|
|
$ |
16.52 |
|
|
$ |
16.37 |
|
|
(5.1 |
) |
|
(4.2 |
) |
Total revenue/shipment |
$ |
258 |
|
|
$ |
259 |
|
|
$ |
261 |
|
|
(0.3 |
) |
|
(1.1 |
) |
Total revenue/shipment (excl. FSC) |
$ |
229 |
|
|
$ |
229 |
|
|
$ |
231 |
|
|
0.0 |
|
|
(0.7 |
) |
Total weight/shipment (in pounds) |
|
1,461 |
|
|
|
1,387 |
|
|
|
1,410 |
|
|
5.4 |
|
|
3.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)Reconciliation of operating revenue to
total picked up revenue (in millions): |
|
Operating
revenue |
$ |
1,150.4 |
|
|
$ |
1,182.3 |
|
|
$ |
1,159.5 |
|
|
|
|
|
|
Change in
revenue deferral and other |
|
(9.0 |
) |
|
|
(5.9 |
) |
|
|
(16.3 |
) |
|
|
|
|
|
Total picked
up revenue |
$ |
1,141.4 |
|
|
$ |
1,176.4 |
|
|
$ |
1,143.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. |
|
|
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