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Yellow Corporation Reports Second Quarter 2023 Results

Aug 09, 2023 at 9:04 AM EDT
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NASHVILLE, Tenn., Aug. 09, 2023 (GLOBE NEWSWIRE) -- 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 SHEETS
Yellow 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 Subsidiaries
For 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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Source: Yellow Corporation