YRC Worldwide Inc. (NASDAQ: YRCW) reported consolidated operating
revenue for second quarter 2019 of $1.273 billion and consolidated
operating income of $14.3 million, which included a $6.2 million
net gain on property disposals. Operating income for second quarter
2019 includes a one-time charge for vacation benefits of $12.4
million related to prior periods as a result of the new labor
agreement. As a comparison, for the second quarter 2018, the
Company’s results included operating revenue of $1.327 billion and
consolidated operating income of $50.9 million, which included a
$2.2 million net loss on property disposals.
“During May, we achieved ratification of our
labor agreement which provides critical operational opportunities
for our business. We believe these opportunities should provide the
basis for improved profitability over time for the Company.
However, during the second quarter, the labor contract impacted us
in several ways,” said Darren Hawkins, Chief Executive Officer of
YRC Worldwide Inc. “First, we saw declining revenues due to
temporary customer concern surrounding the labor negotiation.
Second, while the labor contract was ratified midway through May,
the economic package was retroactive to April 1, 2019. In the
short-term, this created cost headwinds that we were not fully able
to offset during the quarter with revenue growth or cost savings.
We believe less-than-truckload (LTL) industry pricing remains
rational. As we move into the back half of 2019, we are
focused on profit initiatives that support our comprehensive
strategic plan.”
The Company has developed a comprehensive
business strategy to achieve long-term profitability and stability.
Our strategic roadmap is built upon the proven alliance of our LTL
regional and national networks, as well as our recently launched
multi-mode freight brokerage solutions, HNRY Logistics, to provide
a broad portfolio of freight and business services to our
customers.
The key components of our multi-year strategic roadmap are:
- Labor contract ratification, along with implementation of
operational efficiencies to achieve service excellence
- Capital structure improvement
- Network optimization
- Customer growth/engagement initiatives
- Capital investment in equipment and technology
During the quarter and up through this earnings
announcement, the Company has commenced implementation of key
initiatives that support our strategic plan:
- Named a new Chief Customer Officer to lead customer engagement
initiatives
- Completed the reorganization of our enterprise-wide salesforce
and initiated the consolidation of our New Penn corporate office to
scale processes, when combined, should lead to expected future
annualized savings of approximately $25.0 million
- Onboarded nearly 170 new non-CDL box trucks which allowed for
continued reductions in local cartage and short-term rental
expense
- Improved our mix of hourly wages with the use of part-time
workers
- Initiated first phase of network optimization plans to
consolidate service centers, with approximately 25 service centers
expected to be completed by end of 2019
“As we move into the back half of 2019, we are
aggressively moving forward with the operational changes available
under the new labor agreement. In addition, we are prioritizing our
network optimization initiatives, which should bolster longer-term
profitability for the Company,” said Hawkins.
“Our plans with network optimization are focused
on building density in the areas we service, executing on
initiatives underway to enhance the customer experience and value
proposition, and furthering efforts to control our cost structure
and ensuring greater efficiency with equipment, our facilities and
our resources. We are executing on plans to strategically reduce
our 384-facility network through consolidation of service centers
to improve revenue per terminal and productivity performance and
enhance our servicing capabilities through technology and
operational labor efficiencies.”
Hawkins continued, “Most recently, we announced
a new Chief Customer Officer, Jason Bergman. He and his team will
promote the power of our three best-in-class Regional operating
companies, along with the expansive reach of YRC Freight and our
in-house brokerage solution, HNRY Logistics, with leading-edge
technology that provides turn-key solutions for our customers’
supply chain needs. I am proud of our approximately 31,000 team
members for embracing the transformational initiatives that will
allow our Company to capture revenue opportunities while also
improving our profitability.”
“Finally, we believe an important step towards
our long-term strategic plan is the pursuit of new financing
alternatives to replace our existing term loan to provide for less
restrictive covenants, lower interest rates and extended
maturity. Changes in our capital structure should provide the
operational runway that allows us to invest in company specific
initiatives and should position the company for stability during
weaker demand cycles,” concluded Hawkins.
Financial Highlights
- In second quarter 2019, net loss was $23.6 million compared to
net income of $14.4 million in second quarter 2018.
- On a non-GAAP basis, the Company generated consolidated
Adjusted EBITDA of $57.6 million in second quarter 2019, a decrease
of $43.2 million compared to $100.8 million for the same period in
2018 (as detailed in the reconciliation below). Last twelve month
(LTM) consolidated Adjusted EBITDA was $278.7 million compared to
$286.4 million a year ago.
- Second quarter operating results include one-time charges for
vacation benefits relating to 2018 and first quarter 2019 totaling
$8.4 million and $4.0 million, respectively, provided for in the
new labor agreement. In accordance with the definition of Adjusted
EBITDA pursuant to our credit facility agreement, a portion of the
2018 charge, $4.2 million, was added back to Adjusted EBITDA in
second quarter, with the remaining amount being added back
proportionately through the next two quarters in 2019.
- The total debt-to-Adjusted EBITDA ratio for second quarter 2019
improved to 3.12 times compared to 3.18 times for second quarter
2018.
- Investment in the business continued with $38.0 million in
capital expenditures and new operating leases for revenue equipment
with a capital value equivalent of $52.6 million, for a total of
$90.6 million, which is equal to 7.1% of operating revenue for
second quarter 2019. The majority of the investment was in
tractors, trailers and technology.
- In second quarter 2019, workers’ compensation expense increased
$8.5 million compared to the second quarter 2018, largely due to
adverse development of claims related to current and prior
years.
Operational Highlights
- The consolidated operating ratio for the second quarter 2019
was 98.9 compared to 96.2 in second quarter 2018. The operating
ratio at YRC Freight was 98.0 compared to 96.8 for the same period
in 2018. The Regional segment’s second quarter 2019 operating ratio
was 99.4 compared to 94.1 a year ago.
- At YRC Freight, second quarter 2019 less-than-truckload (LTL)
revenue per hundredweight, including fuel surcharge, increased 4.3%
and LTL revenue per shipment increased 2.6% when compared to the
same period in 2018. Excluding fuel surcharge, LTL revenue
per hundredweight increased 4.8% and LTL revenue per shipment
increased 3.0%.
- At the Regional segment, second quarter 2019 LTL revenue per
hundredweight, including fuel surcharge, increased 1.4% and LTL
revenue per shipment increased 1.6% when compared to the same
period in 2018. Excluding fuel surcharge, LTL revenue per
hundredweight increased 1.8% and LTL revenue per shipment increased
2.0%.
- Second quarter 2019 LTL tonnage per day decreased 6.8% at YRC
Freight and decreased 4.9% at the Regional segment compared to
second quarter 2018.
- Total shipments per day for the second quarter 2019 declined
5.1% at YRC Freight and 5.4% at the Regional segment.
Liquidity Update
- At June 30, 2019, the Company’s outstanding debt was $865.0
million, a decrease of $45.7 million compared to $910.7 million as
of June 30, 2018.
- The Company is currently pursuing new financing alternatives
including a potential refinancing of the Term Loan Agreement to
provide for less restrictive financial covenants, as well as
potentially lowering interest rates and extending the maturing of
the facility as compared to our current Term Loan
Agreement.
- On July 25, 2019, the Company received an upgraded rating from
Moody’s Investor Service. The rating was upgraded to a “B2” from a
“B3”, with a stable outlook.
- 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
totaled $156.8 million compared to $190.8 million as of June 30,
2018, a decrease of $34.0 million.
- For the six months ended June 30, 2019, cash used in operating
activities was $29.5 million compared to cash provided by operating
activities of $71.5 million for the six months ended June 30,
2018.
Key Segment Information –
second quarter 2019 compared to second quarter 2018
YRC Freight |
2019 |
2018 |
Percent Change(a) |
Workdays |
|
63.5 |
|
|
64.0 |
|
|
Operating revenue (in
millions) |
$ |
800.8 |
|
$ |
827.6 |
|
(3.2)% |
Operating income (in
millions) |
$ |
16.0 |
|
|
26.8 |
|
(40.3%) |
Operating ratio |
|
98.0 |
|
|
96.8 |
|
(1.2)pp |
LTL tonnage per day (in
thousands) |
|
19.33 |
|
|
20.73 |
|
(6.8)% |
LTL shipments per day (in
thousands) |
|
38.96 |
|
|
41.08 |
|
(5.2)% |
LTL picked up revenue per
hundredweight incl FSC |
$ |
30.09 |
|
$ |
28.85 |
|
4.3% |
LTL picked up revenue per
hundredweight excl FSC |
$ |
26.45 |
|
$ |
25.24 |
|
4.8% |
LTL picked up revenue per
shipment incl FSC |
$ |
299 |
|
$ |
291 |
|
2.6% |
LTL picked up revenue per
shipment excl FSC |
$ |
262 |
|
$ |
255 |
|
3.0% |
LTL weight/shipment (in
pounds) |
|
992 |
|
|
1,009 |
|
(1.7)% |
Total tonnage per day (in
thousands) |
|
24.46 |
|
|
25.36 |
|
(3.5)% |
Total shipments per day (in
thousands) |
|
39.54 |
|
|
41.67 |
|
(5.1)% |
Total picked up revenue per
hundredweight incl FSC |
$ |
25.47 |
|
$ |
25.29 |
|
0.7% |
Total picked up revenue per
hundredweight excl FSC |
$ |
22.45 |
|
$ |
22.17 |
|
1.3% |
Total picked up revenue per
shipment incl FSC |
$ |
315 |
|
$ |
308 |
|
2.4% |
Total picked up revenue per
shipment excl FSC |
$ |
278 |
|
$ |
270 |
|
3.0% |
Total weight/shipment (in
pounds) |
|
1,238 |
|
|
1,217 |
|
1.7% |
|
Regional Transportation |
|
2019 |
|
|
2018 |
|
Percent Change(a) |
Workdays |
|
63.5 |
|
|
64.0 |
|
|
Operating revenue (in
millions) |
$ |
471.8 |
|
$ |
499.0 |
|
(5.5)% |
Operating income (loss) (in
millions) |
$ |
2.6 |
|
$ |
29.2 |
|
NM |
Operating ratio |
|
99.4 |
|
|
94.1 |
|
(5.3)pp |
LTL tonnage per day (in
thousands) |
|
23.61 |
|
|
24.84 |
|
(4.9)% |
LTL shipments per day (in
thousands) |
|
37.52 |
|
|
39.55 |
|
(5.1)% |
LTL picked up revenue per
hundredweight incl FSC |
$ |
14.64 |
|
$ |
14.44 |
|
1.4% |
LTL picked up revenue per
hundredweight excl FSC |
$ |
12.90 |
|
$ |
12.68 |
|
1.8% |
LTL picked up revenue per
shipment incl FSC |
$ |
184 |
|
$ |
181 |
|
1.6% |
LTL picked up revenue per
shipment excl FSC |
$ |
162 |
|
$ |
159 |
|
2.0% |
LTL weight/shipment (in
pounds) |
|
1,259 |
|
|
1,256 |
|
0.2% |
Total tonnage per day (in
thousands) |
|
28.95 |
|
|
31.28 |
|
(7.4)% |
Total shipments per day (in
thousands) |
|
38.29 |
|
|
40.47 |
|
(5.4)% |
Total picked up revenue per
hundredweight incl FSC |
$ |
12.85 |
|
$ |
12.48 |
|
3.0% |
Total picked up revenue per
hundredweight excl FSC |
$ |
11.34 |
|
$ |
10.97 |
|
3.3% |
Total picked up revenue per
shipment incl FSC |
$ |
194 |
|
$ |
193 |
|
0.7% |
Total picked up revenue per
shipment excl FSC |
$ |
171 |
|
$ |
170 |
|
1.1% |
Total weight/shipment (in
pounds) |
|
1,512 |
|
|
1,546 |
|
(2.2)% |
(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, Friday, August 9, 2019,
beginning at 9:30 a.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: a non-GAAP measure that
reflects EBITDA, and further adjusts for certain net gains or
losses on property disposals, non-cash impairment charges, letter
of credit expenses, restructuring charges, transaction costs
related to issuances of debt, nonrecurring consulting fees,
permitted dispositions and discontinued operations, equity-based
compensation expense, union vacation restoration charges, and
non-union pension settlement charges, among other items, as defined
in our 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 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
covenants in our term loan credit agreement as this measure is
calculated as prescribed in our term loan credit agreement and
serves as a driving component of key financial covenants. 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, union
vacation restoration charges, 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, although Adjusted EBITDA excludes
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 (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,” “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; our ability to successfully secure any
new financing alternatives to replace our existing term loan on
commercially reasonable terms or otherwise; 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; 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 our 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 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: |
Bri
Simoneau |
|
913-696-6108 |
|
investor@yrcw.com |
|
|
Media Contact: |
Mike Kelley |
|
913-696-6121 |
|
mike.kelley@yrcw.com |
SOURCE: YRC Worldwide
|
CONSOLIDATED BALANCE SHEETS |
YRC Worldwide Inc. and Subsidiaries |
(Amounts in millions except share and per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
|
|
2019 |
|
2018 |
ASSETS |
(Unaudited) |
|
|
|
|
|
|
|
|
CURRENT
ASSETS: |
|
|
|
|
Cash and cash
equivalents |
$ |
117.5 |
|
|
$ |
227.6 |
|
|
Restricted amounts
held in escrow |
|
- |
|
|
|
- |
|
|
Accounts
receivable, net |
|
538.7 |
|
|
|
470.3 |
|
|
Prepaid expenses
and other |
|
52.3 |
|
|
|
58.7 |
|
|
|
Total current assets |
|
708.5 |
|
|
|
756.6 |
|
|
|
|
|
|
|
PROPERTY AND
EQUIPMENT: |
|
|
|
|
Cost |
|
2,767.2 |
|
|
|
2,765.9 |
|
|
Less - accumulated
depreciation |
|
(1,986.0 |
) |
|
|
(1,969.8 |
) |
|
|
Net property and
equipment |
|
781.2 |
|
|
|
796.1 |
|
|
|
|
|
|
|
Deferred income
taxes, net |
|
0.4 |
|
|
|
- |
|
Operating lease
right-of-use assets |
|
373.9 |
|
|
|
- |
|
Other assets |
|
43.3 |
|
|
|
64.4 |
|
|
|
Total assets |
$ |
1,907.3 |
|
|
$ |
1,617.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' DEFICIT |
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES: |
|
|
|
|
Accounts
payable |
$ |
188.0 |
|
|
$ |
178.0 |
|
|
Wages, vacations,
and employee benefits |
|
239.1 |
|
|
|
223.6 |
|
|
Current operating
lease liabilities |
|
110.5 |
|
|
|
- |
|
|
Other current and
accrued liabilities |
|
172.0 |
|
|
|
170.1 |
|
|
Current maturities
of long-term debt |
|
18.4 |
|
|
|
20.7 |
|
|
|
Total current liabilities |
|
728.0 |
|
|
|
592.4 |
|
|
|
|
|
|
|
OTHER
LIABILITIES: |
|
|
|
|
Long-term debt,
less current portion |
|
833.9 |
|
|
|
854.2 |
|
|
Deferred income
taxes, net |
|
- |
|
|
|
1.8 |
|
|
Pension and
postretirement |
|
194.7 |
|
|
|
202.9 |
|
|
Operating lease
liabilities |
|
243.7 |
|
|
|
- |
|
|
Claims and other
liabilities |
|
277.1 |
|
|
|
271.3 |
|
|
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 |
|
2,330.2 |
|
|
|
2,327.6 |
|
|
Accumulated
deficit |
|
(2,281.1 |
) |
|
|
(2,208.4 |
) |
|
Accumulated other
comprehensive loss |
|
(326.8 |
) |
|
|
(332.3 |
) |
|
Treasury stock, at
cost (410 shares) |
|
(92.7 |
) |
|
|
(92.7 |
) |
|
|
Total shareholders'
deficit |
|
(370.1 |
) |
|
|
(305.5 |
) |
|
|
Total liabilities and
shareholders' deficit |
$ |
1,907.3 |
|
|
$ |
1,617.1 |
|
|
|
|
|
|
|
|
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (LOSS) |
YRC Worldwide Inc. and Subsidiaries |
For the Three and Six Months Ended June 30 |
(Amounts in millions except per share data, shares in
thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
Six Months |
|
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
OPERATING
REVENUE |
$ |
1,272.6 |
|
|
$ |
1,326.5 |
|
|
$ |
2,454.9 |
|
|
$ |
2,541.0 |
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES: |
|
|
|
|
|
|
|
|
Salaries, wages
and employee benefits |
|
782.3 |
|
|
|
756.0 |
|
|
|
1,500.5 |
|
|
|
1,485.7 |
|
|
Fuel, operating
expenses and supplies |
|
228.3 |
|
|
|
242.0 |
|
|
|
464.2 |
|
|
|
472.2 |
|
|
Purchased
transportation |
|
158.0 |
|
|
|
177.2 |
|
|
|
304.3 |
|
|
|
332.6 |
|
|
Depreciation and
amortization |
|
38.5 |
|
|
|
37.6 |
|
|
|
78.5 |
|
|
|
75.3 |
|
|
Other operating
expenses |
|
57.4 |
|
|
|
60.6 |
|
|
|
121.2 |
|
|
|
123.2 |
|
|
(Gains) losses on
property disposals, net |
|
(6.2 |
) |
|
|
2.2 |
|
|
|
(4.6 |
) |
|
|
5.4 |
|
|
Impairment
charges |
|
- |
|
|
|
- |
|
|
|
8.2 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
1,258.3 |
|
|
|
1,275.6 |
|
|
|
2,472.3 |
|
|
|
2,494.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME
(LOSS) |
|
14.3 |
|
|
|
50.9 |
|
|
|
(17.4 |
) |
|
|
46.6 |
|
|
|
|
|
|
|
|
|
|
|
NONOPERATING
EXPENSES: |
|
|
|
|
|
|
|
|
Interest
expense |
|
28.2 |
|
|
|
25.5 |
|
|
|
55.2 |
|
|
|
51.1 |
|
|
Non-union pension
and postretirement benefits |
|
0.5 |
|
|
|
(0.4 |
) |
|
|
0.8 |
|
|
|
(0.9 |
) |
|
Other, net |
|
0.1 |
|
|
|
1.0 |
|
|
|
(0.1 |
) |
|
|
(0.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating expenses,
net |
|
28.8 |
|
|
|
26.1 |
|
|
|
55.9 |
|
|
|
49.3 |
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS)
BEFORE INCOME TAXES |
|
(14.5 |
) |
|
|
24.8 |
|
|
|
(73.3 |
) |
|
|
(2.7 |
) |
INCOME TAX EXPENSE
(BENEFIT) |
|
9.1 |
|
|
|
10.4 |
|
|
|
(0.6 |
) |
|
|
(2.5 |
) |
NET INCOME
(LOSS) |
|
(23.6 |
) |
|
|
14.4 |
|
|
|
(72.7 |
) |
|
|
(0.2 |
) |
OTHER
COMPREHENSIVE INCOME, NET OF TAX |
|
2.0 |
|
|
|
4.3 |
|
|
|
5.5 |
|
|
|
6.3 |
|
COMPREHENSIVE INCOME (LOSS) |
$ |
(21.6 |
) |
|
$ |
18.7 |
|
|
$ |
(67.2 |
) |
|
$ |
6.1 |
|
|
|
|
|
|
|
|
|
|
|
AVERAGE COMMON
SHARES OUTSTANDING - BASIC |
|
33,247 |
|
|
|
32,966 |
|
|
|
33,199 |
|
|
|
32,894 |
|
AVERAGE COMMON
SHARES OUTSTANDING - DILUTED |
|
33,247 |
|
|
|
33,794 |
|
|
|
33,199 |
|
|
|
32,894 |
|
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS)
PER SHARE - BASIC |
$ |
(0.71 |
) |
|
$ |
0.44 |
|
|
$ |
(2.19 |
) |
|
$ |
(0.00 |
) |
EARNINGS (LOSS)
PER SHARE - DILUTED |
$ |
(0.71 |
) |
|
$ |
0.43 |
|
|
$ |
(2.19 |
) |
|
$ |
(0.00 |
) |
|
|
|
|
|
|
|
|
|
|
|
STATEMENTS OF CONSOLIDATED CASH FLOWS |
YRC Worldwide Inc. and Subsidiaries |
For the Six Months Ended June 30 |
(Amounts in millions) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
OPERATING
ACTIVITIES: |
|
|
|
|
Net loss |
$ |
(72.7 |
) |
|
$ |
(0.2 |
) |
|
Adjustments to
reconcile net loss to cash flows from operating activities: |
|
|
|
|
|
Depreciation and
amortization |
|
78.5 |
|
|
|
75.3 |
|
|
|
Lease amortization and
accretion expense |
|
82.3 |
|
|
|
- |
|
|
|
Lease payments |
|
(75.4 |
) |
|
|
- |
|
|
|
Equity-based compensation and
employee benefits expense |
|
9.5 |
|
|
|
12.1 |
|
|
|
Gains on property disposals,
net |
|
(4.6 |
) |
|
|
5.4 |
|
|
|
Impairment charges |
|
8.2 |
|
|
|
- |
|
|
|
Deferred income tax benefit,
net |
|
(1.6 |
) |
|
|
- |
|
|
|
Other noncash items, net |
|
2.1 |
|
|
|
3.6 |
|
|
Changes in assets
and liabilities, net: |
|
|
|
|
|
Accounts receivable |
|
(67.2 |
) |
|
|
(65.6 |
) |
|
|
Accounts payable |
|
5.3 |
|
|
|
17.8 |
|
|
|
Other operating assets |
|
(4.5 |
) |
|
|
(17.4 |
) |
|
|
Other operating
liabilities |
|
10.6 |
|
|
|
40.5 |
|
|
|
Net cash provided by (used in)
operating activities |
|
(29.5 |
) |
|
|
71.5 |
|
|
|
|
|
|
|
INVESTING
ACTIVITIES: |
|
|
|
|
Acquisition of
property and equipment |
|
(70.6 |
) |
|
|
(46.5 |
) |
|
Proceeds from
disposal of property and equipment |
|
8.3 |
|
|
|
4.2 |
|
|
|
Net cash used in investing
activities |
|
(62.3 |
) |
|
|
(42.3 |
) |
|
|
|
|
|
|
FINANCING
ACTIVITIES: |
|
|
|
|
Repayment of
long-term debt |
|
(17.5 |
) |
|
|
(14.6 |
) |
|
Payments for tax
withheld on equity-based compensation |
|
(0.8 |
) |
|
|
(1.6 |
) |
|
|
Net cash used in financing
activities |
|
(18.3 |
) |
|
|
(16.2 |
) |
NET INCREASE
(DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED AMOUNTS HELD IN
ESCROW |
|
(110.1 |
) |
|
|
13.0 |
|
CASH, CASH
EQUIVALENTS AND RESTRICTED AMOUNTS HELD IN ESCROW, BEGINNING OF
PERIOD |
|
227.6 |
|
|
|
145.7 |
|
CASH, CASH
EQUIVALENTS AND RESTRICTED AMOUNTS HELD IN ESCROW, END OF
PERIOD |
$ |
117.5 |
|
|
$ |
158.7 |
|
|
|
|
|
|
|
SUPPLEMENTAL CASH
FLOW INFORMATION |
|
|
|
Interest paid |
$ |
(50.6 |
) |
|
$ |
(49.4 |
) |
Income tax
payment, net |
|
(2.5 |
) |
|
|
(2.9 |
) |
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL FINANCIAL INFORMATION |
YRC Worldwide Inc. and Subsidiaries |
For the Three and Six Months Ended June 30 |
(Amounts in millions) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT INFORMATION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
Six Months |
|
|
|
2019 |
|
|
|
2018 |
|
|
% |
|
|
2019 |
|
|
|
2018 |
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating revenue: |
|
|
|
|
|
|
|
YRC Freight |
$ |
800.8 |
|
|
$ |
827.6 |
|
|
|
(3.2 |
) |
|
$ |
1,544.6 |
|
|
$ |
1,578.9 |
|
|
|
(2.2 |
) |
|
Regional Transportation |
|
471.8 |
|
|
|
499.0 |
|
|
|
(5.5 |
) |
|
|
910.4 |
|
|
|
962.3 |
|
|
|
(5.4 |
) |
|
Other, net of
eliminations |
|
- |
|
|
|
(0.1 |
) |
|
|
|
|
(0.1 |
) |
|
|
(0.2 |
) |
|
|
|
Consolidated |
|
1,272.6 |
|
|
|
1,326.5 |
|
|
|
(4.1 |
) |
|
|
2,454.9 |
|
|
|
2,541.0 |
|
|
|
(3.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
YRC Freight |
|
16.0 |
|
|
|
26.8 |
|
|
|
|
|
(5.1 |
) |
|
|
19.9 |
|
|
|
|
Regional Transportation |
|
2.6 |
|
|
|
29.2 |
|
|
|
|
|
(4.4 |
) |
|
|
34.4 |
|
|
|
|
Corporate and other |
|
(4.3 |
) |
|
|
(5.1 |
) |
|
|
|
|
(7.9 |
) |
|
|
(7.7 |
) |
|
|
|
Consolidated |
$ |
14.3 |
|
|
$ |
50.9 |
|
|
|
|
$ |
(17.4 |
) |
|
$ |
46.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating ratio (a): |
|
|
|
|
|
|
|
|
|
YRC Freight |
|
98.0 |
% |
|
|
96.8 |
% |
|
|
|
|
100.3 |
% |
|
|
98.7 |
% |
|
|
|
Regional Transportation |
|
99.4 |
% |
|
|
94.1 |
% |
|
|
|
|
100.5 |
% |
|
|
96.4 |
% |
|
|
|
Consolidated |
|
98.9 |
% |
|
|
96.2 |
% |
|
|
|
|
100.7 |
% |
|
|
98.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
(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. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL INFORMATION: Total Debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt Issue |
|
|
|
As of June 30, 2019 |
|
|
Par Value |
|
Discount |
|
Costs |
|
Book Value |
|
|
|
|
|
|
|
|
|
|
|
|
Term Loan |
|
$ |
558.1 |
|
|
$ |
(6.5 |
) |
|
$ |
(5.6 |
) |
|
$ |
546.0 |
|
|
ABL Facility |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Secured Second A&R
CDA |
|
|
26.8 |
|
|
|
- |
|
|
|
(0.1 |
) |
|
|
26.7 |
|
|
Unsecured Second A&R
CDA |
|
|
46.7 |
|
|
|
- |
|
|
|
(0.2 |
) |
|
|
46.5 |
|
|
Lease financing
obligations |
|
|
233.4 |
|
|
|
- |
|
|
|
(0.3 |
) |
|
|
233.1 |
|
|
Total debt |
|
$ |
865.0 |
|
|
$ |
(6.5 |
) |
|
$ |
(6.2 |
) |
|
$ |
852.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt Issue |
|
|
|
As of December 31, 2018 |
|
|
Par Value |
|
Discount |
|
Costs |
|
Book Value |
|
|
|
|
|
|
|
|
|
|
|
|
Term Loan |
|
$ |
573.7 |
|
|
$ |
(7.8 |
) |
|
$ |
(6.5 |
) |
|
$ |
559.4 |
|
|
ABL Facility |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Secured Second A&R
CDA |
|
|
26.9 |
|
|
|
- |
|
|
|
(0.1 |
) |
|
|
26.8 |
|
|
Unsecured Second A&R
CDA |
|
|
46.7 |
|
|
|
- |
|
|
|
(0.2 |
) |
|
|
46.5 |
|
|
Lease financing
obligations |
|
|
242.7 |
|
|
|
- |
|
|
|
(0.5 |
) |
|
|
242.2 |
|
|
Total debt |
|
$ |
890.0 |
|
|
$ |
(7.8 |
) |
|
$ |
(7.3 |
) |
|
$ |
874.9 |
|
|
|
|
|
|
|
|
|
|
|
|
Our total
leverage ratio for the four consecutive fiscal quarters ended June
30, 2019 was 3.12 to 1.00. |
|
|
|
Our total
leverage ratio for the four consecutive fiscal quarters ended
December 31, 2018 was 2.64 to 1.00. |
|
|
|
|
|
|
|
|
SUPPLEMENTAL INFORMATION:
Liquidity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
|
|
|
|
|
|
|
|
|
|
2019 |
|
|
|
2018 |
|
|
Cash and cash equivalents |
|
|
|
|
|
|
|
|
$ |
117.5 |
|
|
$ |
227.6 |
|
|
Changes to restricted
cash |
|
|
|
|
|
|
|
|
|
- |
|
|
|
(25.0 |
) |
|
Managed Accessibility (b) |
|
|
|
|
|
|
|
|
|
39.3 |
|
|
|
1.2 |
|
|
Total Cash and cash equivalents and Managed
Accessibility |
|
|
|
|
|
|
|
|
$ |
156.8 |
|
|
$ |
203.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) 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 and Six Months Ended June 30 |
(Amounts in millions) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
Six
Months |
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
|
Reconciliation of net
income (loss) to Adjusted
EBITDA(a): |
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
(23.6 |
) |
|
$ |
14.4 |
|
|
$ |
(72.7 |
) |
|
$ |
(0.2 |
) |
|
Interest expense, net |
|
27.8 |
|
|
|
25.5 |
|
|
|
54.3 |
|
|
|
51.0 |
|
|
Income tax benefit |
|
9.1 |
|
|
|
10.4 |
|
|
|
(0.6 |
) |
|
|
(2.5 |
) |
|
Depreciation and amortization |
|
38.5 |
|
|
|
37.6 |
|
|
|
78.5 |
|
|
|
75.3 |
|
|
EBITDA |
|
51.8 |
|
|
|
87.9 |
|
|
|
59.5 |
|
|
|
123.6 |
|
|
Adjustments for Term Loan
Agreement: |
|
|
|
|
|
|
|
|
(Gains) losses on property disposals, net |
|
(6.2 |
) |
|
|
2.2 |
|
|
|
(4.6 |
) |
|
|
5.4 |
|
|
Property gains on certain disposals (b) |
|
- |
|
|
|
0.4 |
|
|
|
- |
|
|
|
0.4 |
|
|
Impairment charges |
|
- |
|
|
|
- |
|
|
|
8.2 |
|
|
|
- |
|
|
Letter of credit expense |
|
1.6 |
|
|
|
1.7 |
|
|
|
3.2 |
|
|
|
3.4 |
|
|
Restructuring charges |
|
0.5 |
|
|
|
0.6 |
|
|
|
0.5 |
|
|
|
1.2 |
|
|
Nonrecurring consulting fees |
|
1.9 |
|
|
|
1.7 |
|
|
|
4.3 |
|
|
|
3.2 |
|
|
Permitted dispositions and other |
|
- |
|
|
|
0.2 |
|
|
|
(1.1 |
) |
|
|
0.7 |
|
|
Equity-based compensation expense |
|
1.1 |
|
|
|
3.2 |
|
|
|
3.4 |
|
|
|
4.8 |
|
|
Union vacation charge |
|
4.2 |
|
|
|
- |
|
|
|
4.2 |
|
|
|
- |
|
|
Nonrecurring item (vendor bankruptcy) |
|
- |
|
|
|
- |
|
|
|
3.7 |
|
|
|
- |
|
|
Other, net (c) |
|
2.7 |
|
|
|
2.9 |
|
|
|
6.4 |
|
|
|
3.8 |
|
|
Adjusted EBITDA |
$ |
57.6 |
|
|
$ |
100.8 |
|
|
$ |
87.7 |
|
|
$ |
146.5 |
|
|
|
|
|
|
|
|
|
|
(a) Certain
reclassifications have been made to prior year to conform to
current year presentation. |
|
(b) Certain property
gains are added back in the calculation of Adjusted EBITDA pursuant
to the Term Loan Agreement which permits gains from the sale of
excess property with continuing operations. |
|
(c) 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 |
|
Six
Months |
|
Adjusted EBITDA by
segment: |
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
|
YRC Freight |
$ |
39.5 |
|
|
$ |
54.5 |
|
|
$ |
57.8 |
|
|
$ |
76.6 |
|
|
Regional Transportation |
|
19.1 |
|
|
$ |
46.8 |
|
|
|
30.4 |
|
|
|
69.4 |
|
|
Corporate and other |
|
(1.0 |
) |
|
$ |
(0.5 |
) |
|
|
(0.5 |
) |
|
|
0.5 |
|
|
Adjusted EBITDA |
$ |
57.6 |
|
|
$ |
100.8 |
|
|
$ |
87.7 |
|
|
$ |
146.5 |
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL FINANCIAL INFORMATION |
YRC Worldwide Inc. and Subsidiaries |
For the Three and Six Months Ended June 30 |
(Amounts in millions) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
Six
Months |
|
YRC Freight segment |
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
|
Reconciliation of
operating income (loss) to Adjusted
EBITDA(a): |
|
|
|
|
|
|
|
|
Operating income (loss) |
$ |
16.0 |
|
|
$ |
26.8 |
|
|
$ |
(5.1 |
) |
|
$ |
19.9 |
|
|
Depreciation and amortization |
|
21.6 |
|
|
|
21.5 |
|
|
|
44.5 |
|
|
|
43.1 |
|
|
(Gains) losses on property disposals, net |
|
(3.2 |
) |
|
|
1.7 |
|
|
|
(2.1 |
) |
|
|
4.5 |
|
|
Property gains on certain disposals (b) |
|
- |
|
|
|
0.4 |
|
|
|
- |
|
|
|
0.4 |
|
|
Impairment charges |
|
- |
|
|
|
- |
|
|
|
8.2 |
|
|
|
- |
|
|
Letter of credit expense |
|
1.0 |
|
|
|
1.1 |
|
|
|
2.0 |
|
|
|
2.1 |
|
|
Restructuring charges |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
0.1 |
|
|
Non-union pension and postretirement benefits |
|
(0.3 |
) |
|
|
0.6 |
|
|
|
(0.4 |
) |
|
|
1.1 |
|
|
Nonrecurring consulting fees |
|
1.7 |
|
|
|
1.6 |
|
|
|
3.8 |
|
|
|
3.1 |
|
|
Union vacation charge |
|
2.6 |
|
|
|
- |
|
|
|
2.6 |
|
|
|
- |
|
|
Nonrecurring item (vendor bankruptcy) |
|
- |
|
|
|
- |
|
|
|
3.7 |
|
|
|
- |
|
|
Other, net (c) |
|
0.1 |
|
|
|
0.8 |
|
|
|
0.6 |
|
|
|
2.3 |
|
|
Adjusted EBITDA |
$ |
39.5 |
|
|
$ |
54.5 |
|
|
$ |
57.8 |
|
|
$ |
76.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
Six
Months |
|
Regional
Transportation segment |
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
|
Reconciliation of
operating income (loss) to Adjusted EBITDA: |
|
|
|
|
|
|
|
|
Operating income (loss) |
$ |
2.6 |
|
|
$ |
29.2 |
|
|
$ |
(4.4 |
) |
|
$ |
34.4 |
|
|
Depreciation and amortization |
|
16.7 |
|
|
|
16.1 |
|
|
|
33.5 |
|
|
|
32.2 |
|
|
(Gains) losses on property disposals, net |
|
(3.0 |
) |
|
|
0.4 |
|
|
|
(2.5 |
) |
|
|
0.8 |
|
|
Letter of credit expense |
|
0.6 |
|
|
|
0.5 |
|
|
|
1.1 |
|
|
|
1.1 |
|
|
Nonrecurring consulting fees |
|
0.2 |
|
|
|
- |
|
|
|
0.5 |
|
|
|
- |
|
|
Union vacation charge |
|
1.6 |
|
|
|
- |
|
|
|
1.6 |
|
|
|
- |
|
|
Other, net (c) |
|
0.4 |
|
|
|
0.6 |
|
|
|
0.6 |
|
|
|
0.9 |
|
|
Adjusted EBITDA |
$ |
19.1 |
|
|
$ |
46.8 |
|
|
$ |
30.4 |
|
|
$ |
69.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
Six
Months |
|
Corporate and
other |
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
|
Reconciliation of
operating loss to Adjusted EBITDA: |
|
|
|
|
|
|
|
|
Operating loss |
$ |
(4.3 |
) |
|
$ |
(5.1 |
) |
|
$ |
(7.9 |
) |
|
$ |
(7.7 |
) |
|
Depreciation and amortization |
|
0.2 |
|
|
|
0.1 |
|
|
|
0.5 |
|
|
|
0.1 |
|
|
Losses on property disposals, net |
|
- |
|
|
|
0.1 |
|
|
|
- |
|
|
|
0.1 |
|
|
Letter of credit expense |
|
- |
|
|
|
- |
|
|
|
0.1 |
|
|
|
0.1 |
|
|
Restructuring charges |
|
0.5 |
|
|
|
0.6 |
|
|
|
0.5 |
|
|
|
1.1 |
|
|
Permitted dispositions and other |
|
- |
|
|
|
0.2 |
|
|
|
(1.1 |
) |
|
|
0.7 |
|
|
Non-union pension and postretirement benefits |
|
(0.2 |
) |
|
|
(0.2 |
) |
|
|
(0.4 |
) |
|
|
(0.2 |
) |
|
Equity-based compensation expense |
|
1.1 |
|
|
|
3.2 |
|
|
|
3.4 |
|
|
|
4.8 |
|
|
Other, net (c) |
|
1.7 |
|
|
|
0.6 |
|
|
|
4.4 |
|
|
|
1.5 |
|
|
Adjusted EBITDA |
$ |
(1.0 |
) |
|
$ |
(0.5 |
) |
|
$ |
(0.5 |
) |
|
$ |
0.5 |
|
|
|
|
|
|
(a) Certain
reclassifications have been made to prior year to conform to
current year presentation. |
|
(b) Certain property
gains are added back in the calculation of Adjusted EBITDA pursuant
to the Term Loan Agreement which permits gains from the sale of
excess property with continuing operations. |
|
(c) 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 June 30 |
(Amounts in millions) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
Reconciliation of net
loss to Adjusted
EBITDA(a): |
|
|
|
Net loss |
$ |
(52.3 |
) |
$ |
(4.7 |
) |
|
Interest expense, net |
|
107.8 |
|
|
102.6 |
|
|
Income tax expense (benefit) |
|
13.0 |
|
|
(9.3 |
) |
|
Depreciation and amortization |
|
150.9 |
|
|
148.7 |
|
|
EBITDA |
|
219.4 |
|
|
237.3 |
|
|
Adjustments for Term Loan
Agreement: |
|
|
|
(Gains) losses on property disposals, net |
|
(30.8 |
) |
|
3.1 |
|
|
Property gains on certain disposals(b) |
|
29.3 |
|
|
0.4 |
|
|
Impairment charges |
|
8.2 |
|
|
- |
|
|
Letter of credit expense |
|
6.4 |
|
|
6.8 |
|
|
Restructuring charges |
|
1.6 |
|
|
2.1 |
|
|
Transaction costs related to issuances of debt |
|
- |
|
|
8.1 |
|
|
Nonrecurring consulting fees |
|
8.8 |
|
|
3.2 |
|
|
Permitted dispositions and other |
|
(1.5 |
) |
|
1.1 |
|
|
Equity-based compensation expense |
|
4.9 |
|
|
7.3 |
|
|
Non-union pension settlement charge |
|
10.9 |
|
|
7.6 |
|
|
Union vacation charge |
|
4.2 |
|
|
- |
|
|
Nonrecurring item (vendor bankruptcy) |
|
8.0 |
|
|
- |
|
|
Other, net (c) |
|
9.3 |
|
|
9.4 |
|
|
Adjusted EBITDA |
$ |
278.7 |
|
$ |
286.4 |
|
|
|
|
|
(a) Certain
reclassifications have been made to prior year to conform to
current year presentation. |
|
(b) Certain
property gains are added back in the calculation of Adjusted EBITDA
pursuant to the Term Loan Agreement which permits gains from the
sale of excess property with continuing operations. |
|
(c) 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 |
|
2Q19 |
|
2Q18 |
|
1Q19 |
|
% (b) |
|
% (b) |
Workdays |
|
63.5 |
|
|
|
64.0 |
|
|
|
63.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LTL picked up revenue (in millions) |
$ |
738.7 |
|
|
$ |
765.5 |
|
|
$ |
688.3 |
|
|
(3.5 |
) |
|
7.3 |
|
LTL tonnage (in
thousands) |
|
1,227 |
|
|
|
1,327 |
|
|
|
1,155 |
|
|
(7.5 |
) |
|
6.3 |
|
LTL tonnage per day (in
thousands) |
|
19.33 |
|
|
|
20.73 |
|
|
|
18.33 |
|
|
(6.8 |
) |
|
5.4 |
|
LTL shipments (in
thousands) |
|
2,474 |
|
|
|
2,629 |
|
|
|
2,298 |
|
|
(5.9 |
) |
|
7.7 |
|
LTL shipments per day (in
thousands) |
|
38.96 |
|
|
|
41.08 |
|
|
|
36.47 |
|
|
(5.2 |
) |
|
6.8 |
|
LTL picked up
revenue/cwt. |
$ |
30.09 |
|
|
$ |
28.85 |
|
|
$ |
29.80 |
|
|
4.3 |
|
|
1.0 |
|
LTL picked up revenue/cwt.
(excl. FSC) |
$ |
26.45 |
|
|
$ |
25.24 |
|
|
$ |
26.33 |
|
|
4.8 |
|
|
0.4 |
|
LTL picked up
revenue/shipment |
$ |
299 |
|
|
$ |
291 |
|
|
$ |
300 |
|
|
2.6 |
|
|
(0.3 |
) |
LTL picked up revenue/shipment
(excl. FSC) |
$ |
262 |
|
|
$ |
255 |
|
|
$ |
265 |
|
|
3.0 |
|
|
(0.9 |
) |
LTL weight/shipment (in
pounds) |
|
992 |
|
|
|
1,009 |
|
|
|
1,005 |
|
|
(1.7 |
) |
|
(1.3 |
) |
|
|
|
|
|
|
|
|
|
|
Total picked up revenue (in
millions) (a) |
$ |
791.5 |
|
|
$ |
821.0 |
|
|
$ |
738.0 |
|
|
(3.6 |
) |
|
7.2 |
|
Total tonnage (in
thousands) |
|
1,554 |
|
|
|
1,623 |
|
|
|
1,442 |
|
|
(4.3 |
) |
|
7.7 |
|
Total tonnage per day (in
thousands) |
|
24.46 |
|
|
|
25.36 |
|
|
|
22.90 |
|
|
(3.5 |
) |
|
6.8 |
|
Total shipments (in
thousands) |
|
2,511 |
|
|
|
2,667 |
|
|
|
2,331 |
|
|
(5.9 |
) |
|
7.7 |
|
Total shipments per day (in
thousands) |
|
39.54 |
|
|
|
41.67 |
|
|
|
37.01 |
|
|
(5.1 |
) |
|
6.8 |
|
Total picked up
revenue/cwt. |
$ |
25.47 |
|
|
$ |
25.29 |
|
|
$ |
25.58 |
|
|
0.7 |
|
|
(0.4 |
) |
Total picked up revenue/cwt.
(excl. FSC) |
$ |
22.45 |
|
|
$ |
22.17 |
|
|
$ |
22.66 |
|
|
1.3 |
|
|
(0.9 |
) |
Total picked up
revenue/shipment |
$ |
315 |
|
|
$ |
308 |
|
|
$ |
317 |
|
|
2.4 |
|
|
(0.4 |
) |
Total picked up
revenue/shipment (excl. FSC) |
$ |
278 |
|
|
$ |
270 |
|
|
$ |
280 |
|
|
3.0 |
|
|
(0.9 |
) |
Total weight/shipment (in
pounds) |
|
1,238 |
|
|
|
1,217 |
|
|
|
1,237 |
|
|
1.7 |
|
|
0.0 |
|
|
|
|
|
|
|
|
|
|
|
(a) Reconciliation of operating revenue to
total picked up revenue (in millions): |
|
|
|
|
Operating revenue |
$ |
800.8 |
|
|
$ |
827.6 |
|
|
$ |
743.8 |
|
|
|
|
|
Change in revenue deferral and
other |
|
(9.3 |
) |
|
|
(6.6 |
) |
|
|
(5.8 |
) |
|
|
|
|
Total picked up revenue |
$ |
791.5 |
|
|
$ |
821.0 |
|
|
$ |
738.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional Transportation |
|
|
|
|
|
|
|
Y/Y |
|
Sequential |
|
2Q19 |
|
2Q18 |
|
1Q19 |
|
% (b) |
|
% (b) |
Workdays |
|
63.5 |
|
|
|
64.0 |
|
|
|
63.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LTL picked up revenue (in
millions) |
$ |
439.0 |
|
|
$ |
459.1 |
|
|
$ |
404.8 |
|
|
(4.4 |
) |
|
8.4 |
|
LTL tonnage (in
thousands) |
|
1,499 |
|
|
|
1,590 |
|
|
|
1,388 |
|
|
(5.7 |
) |
|
8.1 |
|
LTL tonnage per day (in
thousands) |
|
23.61 |
|
|
|
24.84 |
|
|
|
22.02 |
|
|
(4.9 |
) |
|
7.2 |
|
LTL shipments (in
thousands) |
|
2,383 |
|
|
|
2,531 |
|
|
|
2,193 |
|
|
(5.9 |
) |
|
8.6 |
|
LTL shipments per day (in
thousands) |
|
37.52 |
|
|
|
39.55 |
|
|
|
34.81 |
|
|
(5.1 |
) |
|
7.8 |
|
LTL picked up
revenue/cwt. |
$ |
14.64 |
|
|
$ |
14.44 |
|
|
$ |
14.59 |
|
|
1.4 |
|
|
0.4 |
|
LTL picked up revenue/cwt.
(excl. FSC) |
$ |
12.90 |
|
|
$ |
12.68 |
|
|
$ |
12.93 |
|
|
1.8 |
|
|
(0.2 |
) |
LTL picked up
revenue/shipment |
$ |
184 |
|
|
$ |
181 |
|
|
$ |
185 |
|
|
1.6 |
|
|
(0.2 |
) |
LTL picked up revenue/shipment
(excl. FSC) |
$ |
162 |
|
|
$ |
159 |
|
|
$ |
164 |
|
|
2.0 |
|
|
(0.7 |
) |
LTL weight/shipment (in
pounds) |
|
1,259 |
|
|
|
1,256 |
|
|
|
1,265 |
|
|
0.2 |
|
|
(0.5 |
) |
|
|
|
|
|
|
|
|
|
|
Total picked up revenue (in
millions) (a) |
$ |
472.6 |
|
|
$ |
499.8 |
|
|
$ |
438.4 |
|
|
(5.4 |
) |
|
7.8 |
|
Total tonnage (in
thousands) |
|
1,838 |
|
|
|
2,002 |
|
|
|
1,726 |
|
|
(8.2 |
) |
|
6.5 |
|
Total tonnage per day (in
thousands) |
|
28.95 |
|
|
|
31.28 |
|
|
|
27.39 |
|
|
(7.4 |
) |
|
5.7 |
|
Total shipments (in
thousands) |
|
2,432 |
|
|
|
2,590 |
|
|
|
2,242 |
|
|
(6.1 |
) |
|
8.5 |
|
Total shipments per day (in
thousands) |
|
38.29 |
|
|
|
40.47 |
|
|
|
35.58 |
|
|
(5.4 |
) |
|
7.6 |
|
Total picked up
revenue/cwt. |
$ |
12.85 |
|
|
$ |
12.48 |
|
|
$ |
12.70 |
|
|
3.0 |
|
|
1.2 |
|
Total picked up revenue/cwt.
(excl. FSC) |
$ |
11.34 |
|
|
$ |
10.97 |
|
|
$ |
11.26 |
|
|
3.3 |
|
|
0.7 |
|
Total picked up
revenue/shipment |
$ |
194 |
|
|
$ |
193 |
|
|
$ |
196 |
|
|
0.7 |
|
|
(0.6 |
) |
Total picked up
revenue/shipment (excl. FSC) |
$ |
171 |
|
|
$ |
170 |
|
|
$ |
173 |
|
|
1.1 |
|
|
(1.1 |
) |
Total weight/shipment (in
pounds) |
|
1,512 |
|
|
|
1,546 |
|
|
|
1,540 |
|
|
(2.2 |
) |
|
(1.8 |
) |
|
|
|
|
|
|
|
|
|
|
(a) Reconciliation of operating revenue to
total picked up revenue (in millions): |
|
|
|
|
Operating revenue |
$ |
471.8 |
|
|
$ |
499.0 |
|
|
$ |
438.6 |
|
|
|
|
|
Change in revenue deferral and
other |
|
0.8 |
|
|
|
0.8 |
|
|
|
(0.2 |
) |
|
|
|
|
Total picked up revenue |
$ |
472.6 |
|
|
$ |
499.8 |
|
|
$ |
438.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. |
|
|
YRC Worldwide Inc. |
Segment Statistics |
YTD Comparison |
|
|
YRC Freight |
|
|
|
|
|
Y/Y |
|
|
2019 |
|
|
|
2018 |
|
|
% (b) |
Workdays |
|
126.5 |
|
|
|
127.5 |
|
|
|
|
|
|
|
|
|
LTL picked up revenue (in millions) |
$ |
1,427.0 |
|
|
$ |
1,464.1 |
|
|
(2.5 |
) |
LTL tonnage (in
thousands) |
|
2,382 |
|
|
|
2,562 |
|
|
(7.0 |
) |
LTL tonnage per day (in
thousands) |
|
18.83 |
|
|
|
20.10 |
|
|
(6.3 |
) |
LTL shipments (in
thousands) |
|
4,772 |
|
|
|
5,045 |
|
|
(5.4 |
) |
LTL shipments per day (in
thousands) |
|
37.72 |
|
|
|
39.57 |
|
|
(4.7 |
) |
LTL picked up
revenue/cwt. |
$ |
29.95 |
|
|
$ |
28.57 |
|
|
4.8 |
|
LTL picked up revenue/cwt.
(excl. FSC) |
$ |
26.39 |
|
|
$ |
25.08 |
|
|
5.2 |
|
LTL picked up
revenue/shipment |
$ |
299 |
|
|
$ |
290 |
|
|
3.0 |
|
LTL picked up revenue/shipment
(excl. FSC) |
$ |
264 |
|
|
$ |
255 |
|
|
3.5 |
|
LTL weight/shipment (in
pounds) |
|
998 |
|
|
|
1,016 |
|
|
(1.7 |
) |
|
|
|
|
|
|
Total picked up revenue (in
millions) (a) |
$ |
1,529.5 |
|
|
$ |
1,568.6 |
|
|
(2.5 |
) |
Total tonnage (in
thousands) |
|
2,996 |
|
|
|
3,122 |
|
|
(4.0 |
) |
Total tonnage per day (in
thousands) |
|
23.68 |
|
|
|
24.48 |
|
|
(3.3 |
) |
Total shipments (in
thousands) |
|
4,842 |
|
|
|
5,118 |
|
|
(5.4 |
) |
Total shipments per day (in
thousands) |
|
38.28 |
|
|
|
40.14 |
|
|
(4.6 |
) |
Total picked up
revenue/cwt. |
$ |
25.53 |
|
|
$ |
25.12 |
|
|
1.6 |
|
Total picked up revenue/cwt.
(excl. FSC) |
$ |
22.55 |
|
|
$ |
22.08 |
|
|
2.1 |
|
Total picked up
revenue/shipment |
$ |
316 |
|
|
$ |
307 |
|
|
3.1 |
|
Total picked up
revenue/shipment (excl. FSC) |
$ |
279 |
|
|
$ |
269 |
|
|
3.6 |
|
Total weight/shipment (in
pounds) |
|
1,238 |
|
|
|
1,220 |
|
|
1.4 |
|
|
|
|
|
|
|
(a) Reconciliation of operating revenue to
total picked up revenue (in millions): |
|
|
Operating revenue |
$ |
1,544.6 |
|
|
$ |
1,578.9 |
|
|
|
Change in revenue deferral and
other |
|
(15.1 |
) |
|
|
(10.3 |
) |
|
|
Total picked up revenue |
$ |
1,529.5 |
|
|
$ |
1,568.6 |
|
|
|
|
|
|
|
|
|
|
Regional Transportation |
|
|
|
|
|
Y/Y |
|
|
2019 |
|
|
|
2018 |
|
|
% (b) |
Workdays |
|
126.5 |
|
|
|
127.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
LTL picked up revenue (in
millions) |
$ |
843.8 |
|
|
$ |
884.1 |
|
|
(4.5 |
) |
LTL tonnage (in
thousands) |
|
2,887 |
|
|
|
3,101 |
|
|
(6.9 |
) |
LTL tonnage per day (in
thousands) |
|
22.82 |
|
|
|
24.32 |
|
|
(6.2 |
) |
LTL shipments (in
thousands) |
|
4,576 |
|
|
|
4,918 |
|
|
(7.0 |
) |
LTL shipments per day (in
thousands) |
|
36.17 |
|
|
|
38.58 |
|
|
(6.2 |
) |
LTL picked up
revenue/cwt. |
$ |
14.62 |
|
|
$ |
14.25 |
|
|
2.5 |
|
LTL picked up revenue/cwt.
(excl. FSC) |
$ |
12.91 |
|
|
$ |
12.55 |
|
|
2.9 |
|
LTL picked up
revenue/shipment |
$ |
184 |
|
|
$ |
180 |
|
|
2.6 |
|
LTL picked up revenue/shipment
(excl. FSC) |
$ |
163 |
|
|
$ |
158 |
|
|
3.0 |
|
LTL weight/shipment (in
pounds) |
|
1,262 |
|
|
|
1,261 |
|
|
0.1 |
|
|
|
|
|
|
|
|
|
|
|
Total picked up revenue (in
millions) (a) |
$ |
911.0 |
|
|
$ |
963.8 |
|
|
(5.5 |
) |
Total tonnage (in
thousands) |
|
3,564 |
|
|
|
3,916 |
|
|
(9.0 |
) |
Total tonnage per day (in
thousands) |
|
28.17 |
|
|
|
30.71 |
|
|
(8.3 |
) |
Total shipments (in
thousands) |
|
4,673 |
|
|
|
5,034 |
|
|
(7.2 |
) |
Total shipments per day (in
thousands) |
|
36.94 |
|
|
|
39.48 |
|
|
(6.4 |
) |
Total picked up
revenue/cwt. |
$ |
12.78 |
|
|
$ |
12.31 |
|
|
3.9 |
|
Total picked up revenue/cwt.
(excl. FSC) |
$ |
11.30 |
|
|
$ |
10.84 |
|
|
4.2 |
|
Total picked up
revenue/shipment |
$ |
195 |
|
|
$ |
191 |
|
|
1.8 |
|
Total picked up
revenue/shipment (excl. FSC) |
$ |
172 |
|
|
$ |
169 |
|
|
2.2 |
|
Total weight/shipment (in
pounds) |
|
1,525 |
|
|
|
1,556 |
|
|
(2.0 |
) |
|
|
|
|
|
|
(a) Reconciliation of operating revenue to
total picked up revenue (in millions): |
|
|
Operating revenue |
$ |
910.4 |
|
|
$ |
962.3 |
|
|
|
Change in revenue deferral and
other |
|
0.6 |
|
|
|
1.5 |
|
|
|
Total picked up revenue |
$ |
911.0 |
|
|
$ |
963.8 |
|
|
|
|
|
|
|
|
|
(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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