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YRC Worldwide Reports 2015 Third Quarter Earnings

Oct 29, 2015 at 4:02 PM EDT

OVERLAND PARK, Kan., Oct. 29, 2015 (GLOBE NEWSWIRE) -- YRC Worldwide Inc. (NASDAQ:YRCW) today reported financial results for the third quarter of 2015.

Consolidated operating revenue for the third quarter of 2015 was $1.245 billion with consolidated operating income reported at $47.7 million, which included a $0.9 million loss on property disposals. As a comparison, the company reported consolidated operating revenue of $1.323 billion for the third quarter of 2014 with consolidated operating income of $26.7 million, which included a $0.2 million loss on property disposals. 

Third Quarter 2015 Financial Highlights

  • On a non-GAAP basis, the company generated Adjusted EBITDA of $99.1 million for a consolidated Adjusted EBITDA margin of 8.0%, and a $17.5 million increase compared to the $81.6 million reported in the prior year comparable quarter (as detailed in the reconciliation below).
  • Last twelve month (LTM) Adjusted EBITDA increased to $344.3 million, an improvement of $118.1 million from the $226.2 million of LTM Adjusted EBITDA reported in the third quarter of 2014.
  • Improved yield from continued pricing discipline contributed to an operating ratio of 96.2 on a consolidated basis, which was a year-over-year improvement of 180-basis-points. Additionally, YRC Freight reported an operating ratio of 97.9, which was an improvement of 110-basis-points on a year-over-year basis, and a year-over-year improvement of 230-basis-points at the Regional segment, with an operating ratio of 92.6.
  • The total debt-to-Adjusted EBITDA ratio continues to improve, moving from 4.94 times just 12 months ago and 3.33 times last quarter to 3.15 times this quarter.
  • Continued to reinvest in the business spending $29.2 million in capital expenditures and entered into new operating leases for revenue equipment that have a capital value equivalent of $25.5 million for a total reinvestment of $54.7 million. The $54.7 million represents a $26.5 million increase over the $28.2 million investment in the third quarter of 2014. The vast majority of the investment was in tractors and technology.

Third Quarter 2015 Operational Highlights (year-over-year comparison)

  • Continued strategy of placing freight mix, yield improvements and profitability over market share and tonnage growth.
  • Tonnage per day decreased 6.2% at YRC Freight and decreased 3.5% for the Regional segment.
  • Excluding fuel surcharge, revenue per shipment increased 7.0% at YRC Freight and revenue per hundredweight increased by 5.8%. Including fuel surcharge, revenue per shipment increased 0.7% and revenue per hundredweight decreased by 0.4%.
  • At the Regionals, excluding fuel surcharge, revenue per shipment increased 5.0% and revenue per hundredweight increased by 4.1%. Including fuel surcharge, revenue per shipment decreased 0.7% and revenue per hundredweight decreased by 1.5%.
  • Workers' compensation expense decreased by $4.5 million due to decreased claim frequency in 2015 driven by our safety initiatives but slightly offset by negative development of prior years' claims.

"During the third quarter of this year, we continued to stay committed to our strategy of placing pricing improvements and profitability ahead of tonnage growth," said James Welch, chief executive officer of YRC Worldwide.  "We stayed focused, we stayed disciplined, we invested in our people and we invested in the business. As a result, operating, financial and safety performance improved.  We are pleased to see the positive results of successfully implementing our strategy and staying the course, and we plan to continue focusing on operational improvements while reinvesting back into our people, equipment and technology," concluded Welch. 

Liquidity Update

  • At September 30, 2015, the company had cash and cash equivalents and Managed Accessibility under its ABL facility totaling $244.8 million. For comparison, as of June 30, 2015, cash and cash equivalents and Managed Accessibility totaled $226.1 million. 
  • For the nine months ended September 30, 2015, cash provided by operating activities was $91.5 million as compared to cash used in operating activities of $26.3 million for the nine months ended September 30, 2014, an improvement of $117.8 million.

Key Segment Information - third quarter 2015 compared to the third quarter of 2014

      Percent
YRC Freight 2015  2014 Change
Workdays 64.0  64.0 
Operating revenue (in millions)$789.2 $843.0 (6.4)%
Operating income (in millions)$16.7 $8.8 89.8%
Operating ratio 97.9  99.01.1pp
Total tonnage per day (in thousands) 25.64  27.34 (6.2)%
Total shipments per day (in thousands) 42.82  46.20 (7.3)%
Revenue per hundredweight incl FSC$23.90 $24.00 (0.4)%
Revenue per hundredweight excl FSC$21.24 $20.08  5.8%
Revenue per shipment incl FSC$286 $284 0.7%
Revenue per shipment excl FSC$254  $238 7.0%
Total weight/shipment (in pounds) 1,198  1,184  1.2%


         Percent
Regional Transportation  2015   2014 Change
Workdays  64.0   64.0  
Operating revenue (in millions) $455.7  $479.6 (5.0)%
Operating income (in millions) $33.6  $24.4 37.7%
Operating ratio  92.6   94.9 2.3pp
Total tonnage per day (in thousands)  30.85   31.97 (3.5)%
Total shipments per day (in thousands)  41.76   43.65 (4.3)%
Revenue per hundredweight incl FSC $11.55  $11.73 (1.5)%
Revenue per hundredweight excl FSC $10.32  $9.91 4.1%
Revenue per shipment incl FSC $171  $172 (0.7)%
Revenue per shipment excl FSC $153  $145 5.0%
Total weight/shipment (in pounds)  1,478   1,465 0.9%


Review of Financial Results

YRC Worldwide Inc. will host a conference call with the investment community today, Thursday, October 29, 2015, beginning at 4:30 p.m. ET, 3:30 p.m. CT.  The call will be available to listeners as a live webcast and as a replay via the YRC Worldwide website yrcw.com.

Non-GAAP Financial Measures

EBITDA is a non-GAAP measure that reflects the company's earnings before interest, taxes, depreciation, and amortization expense. Adjusted EBITDA (defined in our credit facilities as Consolidated EBITDA) is a non-GAAP measure that reflects the company's earnings before interest, taxes, depreciation, and amortization expense, and further adjusted for letter of credit fees, equity-based compensation expense, net gains or losses on property disposals, restructuring professional fees, nonrecurring consulting fees, expenses associated with certain lump sum payments to our IBT employees and results of permitted dispositions and discontinued operations among other items as defined in the company's credit facilities. EBITDA and Adjusted EBITDA are used for internal management purposes as a financial measure that reflects the company's core operating performance. In addition, management uses Adjusted EBITDA to measure compliance with financial covenants in the company's credit facilities.  However, these financial measures should not be construed as better measurements than net income or earnings per share, as defined by generally accepted accounting principles (GAAP).

EBITDA and Adjusted EBITDA have the following limitations:

  • EBITDA does not reflect the interest expense or the cash requirements necessary to service interest or fund principal payments on our outstanding debt;
  • Adjusted EBITDA does not reflect the interest expense or the cash requirements necessary to fund restructuring professional fees, nonrecurring consulting fees, letter of credit fees, service interest or principal payments on our outstanding debt or fund our lump sum payments to our IBT employees required under the ratified MOU;
  • Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will have to be replaced in the future, and EBITDA and Adjusted EBITDA do not reflect any cash requirements for such replacements;
  • Equity-based compensation is an element of our long-term incentive compensation program, although Adjusted EBITDA excludes certain employee equity-based compensation expense when presenting our ongoing operating performance for a particular period;
  • Other companies in our industry may calculate Adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure.

Because of these limitations, EBTIDA and Adjusted EBITDA 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 EBITDA and Adjusted EBITDA as secondary measures.  The company has provided reconciliations of its non-GAAP measures, EBITDA and Adjusted EBITDA, to GAAP net income and operating income (loss) within the supplemental financial information in this release.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Words such as "will," "expect," "intend," "anticipate," "believe," "could," "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) our ability to generate sufficient cash flows and liquidity to fund operations and satisfy our cash needs and future cash commitments, including (without limitation) our obligations related to our substantial indebtedness and lease and pension funding requirements; the success of our management team in implementing its strategic plan and operational and productivity improvements, including (without limitation) our continued ability to meet high on-time and quality delivery performance standards, and the impact of those improvements to meet our future liquidity and profitability; our ability to finance the maintenance, acquisition and replacement of revenue equipment and other necessary capital expenditures; changes in equity and debt markets; inclement weather; price and availability of fuel; sudden 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; competition and competitive pressure on service and pricing; expense volatility, including (without limitation) volatility due to changes in purchased transportation service or pricing for purchased transportation; our ability to comply and the cost of compliance with federal, state, local and foreign laws and regulations, including (without limitation) laws and regulations for the protection of employee safety and health and the environment; terrorist attack; labor relations, including (without limitation) our ability to attract and retain qualified drivers, the continued support of our union employees with respect to our strategic plan, the impact of work rules, work stoppages, strikes or other disruptions, our obligations to multi-employer health, welfare and pension plans, wage requirements and employee satisfaction; the impact of claims and litigation to which we are or may become exposed; and other risks and contingencies, including (without limitation) the risk factors that are included in our reports filed with the SEC, including those described under "Risk Factors" in our annual report on Form 10-K and quarterly reports on Form 10-Q.

About YRC Worldwide

YRC Worldwide Inc., headquartered in Overland Park, Kan., is the holding company for a portfolio of less-than-truckload (LTL) companies including YRC Freight, YRC Reimer, Holland, Reddaway, and New Penn. Collectively, YRC Worldwide companies have one of the largest, most comprehensive LTL networks in North America with local, regional, national and international capabilities. Through their teams of experienced service professionals, YRC Worldwide companies offer industry-leading expertise in heavyweight shipments and 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.

       
CONSOLIDATED BALANCE SHEETS
YRC Worldwide Inc. and Subsidiaries
(Amounts in millions except share and per share data)
       
       
    September 30, December 31,
     2015   2014  
ASSETS    (Unaudited)   
       
CURRENT ASSETS:     
 Cash and cash equivalents$  210.7  $  171.1 
 Restricted amounts held in escrow   25.7     28.9 
 Accounts receivable, net   497.8     470.5 
 Prepaid expenses and other   77.2     81.2 
 Total current assets   811.4     751.7 
       
PROPERTY AND EQUIPMENT:    
 Cost    2,837.4     2,819.6 
 Less - accumulated depreciation   (1,898.5)    (1,825.4)
 Net property and equipment   938.9     994.2 
       
Intangibles, net     45.1     60.3 
Restricted amounts held in escrow   46.5      60.2 
Deferred income taxes, net    21.2     21.4 
Other assets     101.7     97.2 
 Total assets$  1,964.8  $  1,985.0 
       
       
       
LIABILITIES AND SHAREHOLDERS' DEFICIT  
        
CURRENT LIABILITIES:    
 Accounts payable $  185.6   $  172.2 
 Wages, vacations, and employee benefits   204.2     176.6 
 Deferred income taxes, net   21.2     21.4 
 Other current and accrued liabilities   187.6     202.2 
 Current maturities of long-term debt   15.5     31.1 
 Total current liabilities   614.1     603.5 
        
OTHER LIABILITIES:     
 Long-term debt, less current portion   1,065.3     1,078.8 
 Deferred income taxes, net   3.2      1.5 
 Pension and postretirement   413.1     460.3 
 Claims and other liabilities   296.4     315.2 
 Commitments and contingencies      
       
SHAREHOLDERS' DEFICIT:    
 Preferred stock, $1 par value per share    -     - 
 Common stock, $0.01 par value per share    0.3     0.3 
 Capital surplus    2,310.8     2,290.9 
 Accumulated deficit    (2,215.8)    (2,240.0)
 Accumulated other comprehensive loss   (429.9)    (432.8)
 Treasury stock, at cost (410 shares)   (92.7)    (92.7)
  Total shareholders' deficit   (427.3)    (474.3)
 Total liabilities and shareholders' deficit$  1,964.8  $  1,985.0 
       

 

STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (LOSS)
YRC Worldwide Inc. and Subsidiaries
For the Three and Nine Months Ended September 30
(Amounts in millions except per share data, shares in thousands)
(Unaudited)
 
   Three Months Nine Months
    2015   2014   2015   2014 
          
OPERATING REVENUE  $ 1,244.9  $ 1,322.6  $ 3,689.7  $ 3,851.1 
          
OPERATING EXPENSES:       
 Salaries, wages and employee benefits   725.8     745.9     2,148.6     2,212.3 
 Operating expenses and supplies   217.1     285.0     678.1     860.7 
 Purchased transportation   149.6     157.4     431.0     449.1 
 Depreciation and amortization   40.7     40.9     123.6     122.9 
 Other operating expenses   63.1     66.5     198.6      197.9 
 (Gains) losses on property disposals, net   0.9     0.2     1.5     (6.1)
 Total operating expenses   1,197.2     1,295.9     3,581.4     3,836.8  
                  
OPERATING INCOME      47.7     26.7     108.3     14.3 
          
NONOPERATING EXPENSES:         
 Interest expense   25.7     32.6     81.2     122.5 
 (Gain) loss on extinguishment of debt   -     -     0.6     (11.2)
 Other, net    (4.5)    (2.7)    (8.1)    (6.7)
 Nonoperating expenses, net   21.2     29.9     73.7     104.6 
          
INCOME (LOSS) BEFORE INCOME TAXES     26.5     (3.2)    34.6     (90.3)
INCOME TAX (BENEFIT) EXPENSE     6.7     (4.4)    10.4      (16.4)
NET INCOME (LOSS)     19.8      1.2     24.2     (73.9)
AMORTIZATION OF BENEFICIAL CONVERSION FEATURE ON PREFERRED STOCK   -     -     -     (18.1)
  NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS$  19.8  $  1.2  $  24.2  $  (92.0)
          
NET INCOME (LOSS)  $  19.8  $  1.2  $  24.2  $  (73.9)
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX   (1.9)    (0.6)    2.9     3.9 
  COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO YRC WORLDWIDE INC.$  17.9  $  0.6  $  27.1  $  (70.0)
          
AVERAGE COMMON SHARES OUTSTANDING-BASIC   32,065     30,639     31,602     27,896 
AVERAGE COMMON SHARES OUTSTANDING-DILUTED   32,621      31,903     32,569     27,896  
          
EARNINGS (LOSS) PER SHARE - BASIC $  0.62  $  0.04  $  0.76  $  (3.30)
EARNINGS (LOSS) PER SHARE - DILUTED$  0.61  $  (0.03) $  0.74  $  (3.30)


       
 STATEMENTS OF CONSOLIDATED CASH FLOWS 
 YRC Worldwide Inc. and Subsidiaries 
 For the Nine Months Ended September 30 
 (Amounts in millions) 
 (unaudited) 
 
      2015   2014 
       
OPERATING ACTIVITIES:    
 Net income (loss) $  24.2  $  (73.9)
 Noncash items included in net income (loss):   
 Depreciation and amortization   123.6     122.9 
 Paid-in-kind interest on Series A Notes and Series B Notes   0.4      13.9 
 Amortization of deferred debt costs   4.8     6.9 
 Amortization of premiums and discounts on debt   1.7     26.5  
 Noncash equity based compensation and employee benefits expense   18.5     20.6 
 Deferred income tax benefit, net   -     (3.0)
 (Gains) losses on property disposals, net   1.5      (6.1)
 (Gain) loss on extinguishment of debt   0.6     (11.2)
 Other noncash items, net   (6.8)    (4.7)
 Changes in assets and liabilities, net:   
 Accounts receivable   (29.4)    (91.5)
 Accounts payable   10.0     18.4 
 Other operating assets   (7.3)    0.3 
 Other operating liabilities    (50.3)    (45.4)
 Net cash provided by (used in) operating activities   91.5     (26.3)
       
INVESTING ACTIVITIES:    
 Acquisition of property and equipment   (71.8)    (47.6)
 Proceeds from disposal of property and equipment   15.7     8.5 
 Restricted escrow receipts   41.9     90.7 
 Restricted escrow deposits   (25.0)    (33.6)
 Other, net    0.4     5.2 
 Net cash provided by (used in) investing activities   (38.8)    23.2 
       
FINANCING ACTIVITIES:      
 Issuance of long-term debt   -     693.0 
 Repayment of long-term debt   (13.1)    (888.7)
 Debt issuance costs    -     (29.0)
 Equity issuance costs   -     (17.1)
 Equity issuance proceeds   -     250.0 
 Net cash provided by (used in) financing activities   (13.1)    8.2 
        
NET INCREASE IN CASH AND CASH EQUIVALENTS   39.6     5.1 
        
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD   171.1     176.3 
CASH AND CASH EQUIVALENTS, END OF PERIOD$  210.7  $  181.4 
       
SUPPLEMENTAL CASH FLOW INFORMATION   
Interest paid $  (79.3) $  (103.3)
Income tax refund (payment)    (1.6)    19.3 

 

 

       
SUPPLEMENTAL FINANCIAL INFORMATION
YRC Worldwide Inc. and Subsidiaries
For the Three and Nine Months Ended September 30
(Amounts in millions)
(Unaudited)
       
SEGMENT INFORMATION      
       
 Three Months
 Nine Months
  2015   2014  %  2015   2014 %
          
Operating revenue:      
YRC Freight$789.2 $843.0  (6.4)$2,322.0 $2,441.9  (4.9)
Regional Transportation 455.7   479.6  (5.0) 1,367.7  1,409.2   (2.9)
Other, net of eliminations -   -      -     -   
Consolidated  1,244.9  1,322.6  (5.9) 3,689.7  3,851.1  (4.2)
       
Operating income (loss):      
YRC Freight 16.7    8.8   39.4  (24.0) 
Regional Transportation 33.6    24.4   75.9  55.5  
Corporate and other (2.6)   (6.5)  (7.0)  (17.2) 
Consolidated $47.7 $  26.7  $108.3 $14.3  
       
Operating ratio:      
YRC Freight 97.9% 99.0%  98.3% 101.0% 
Regional Transportation 92.6% 94.9%  94.5% 96.1% 
Consolidated 96.2% 98.0%  97.1% 99.6% 
       
       
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    Book 
  
As of September 30, 2015  Par ValueDiscountValue
  
Term loan  $  687.8 $  (4.7)$  683.1  
ABL facility (a)     -     -     -   
Secured Second A&R CDA     44.7    -     44.7  
Unsecured Second A&R CDA     73.2    -     73.2  
Lease financing obligations     279.8    -     279.8  
Other     -   -     -   
  Total debt  $ 1,085.5 $  (4.7)$  1,080.8  
             
      Book 
  
As of December 31, 2014  Par ValueDiscountValue
  
Term loan  $  693.0 $  (5.7)$  687.3  
ABL facility (b)     -     -     -   
Series B Notes     17.7    (0.6)   17.1  
Secured Second A&R CDA     47.0    -     47.0  
Unsecured Second A&R CDA     73.2    -     73.2  
Lease financing obligations     285.1    -     285.1  
Other     0.2    -     0.2  
  Total debt  $ 1,116.2 $  (6.3)$ 1,109.9  
             
       
Our total leverage ratio for the four consecutive fiscal quarters ended September 30, 2015 was 3.15 to 1.00. 
       
(a) ABL capacity $450.0M; borrowing base $445.1M; maximum availability $78.6M; Managed Accessibility $34.1M. Managed Accessibility is defined as maximum availability less the lower of 10% of the borrowing base or 10% of the collateral line cap.  
       
(b) ABL capacity $450.0M; borrowing base $445.5M; maximum availability $71.2M; amount able to be drawn $27.1M 
       

 

     
SUPPLEMENTAL FINANCIAL INFORMATION
YRC Worldwide Inc. and Subsidiaries
For the Three and Nine Months Ended September 30
(Amounts in millions)
(Unaudited)
     
 Three Months
  Nine Months
 
  2015   2014  2015   2014 
Reconciliation of net income (loss) to adjusted EBITDA:            
Net income (loss)$  19.8 $  1.2 $  24.2 $  (73.9)
Interest expense, net   25.6    32.5    80.9    122.2 
Income tax expense (benefit)   6.7    (4.4)   10.4    (16.4)
Depreciation and amortization   40.7    40.9    123.6    122.9 
EBITDA   92.8    70.2    239.1    154.8 
Adjustments for debt covenants:    
(Gains) losses on property disposals, net   0.9    0.2    1.5    (6.1)
Letter of credit expense   2.2     2.5    6.6    9.8 
Restructuring professional fees   0.2    3.1    0.2    4.2 
Nonrecurring consulting fees   (0.8)   -    5.1    - 
Permitted dispositions and other   -    1.6    0.3    1.8 
Equity based compensation expense   2.8    2.0    6.5     11.1 
Amortization of ratification bonus   4.6    5.2    14.4    10.4 
(Gain) loss on extinguishment of debt   -    -    0.6    (11.2)
Other, net (a)   (3.6)   (3.2)   (7.0)   (7.3)
Adjusted EBITDA$  99.1 $  81.6 $  267.3 $  167.5 
             
(a) As required under our Term Loan Agreement, other, net, shown above consists of the impact of certain items to be included in Adjusted EBITDA under our Term Loan Agreement.
     
     
 Three Months
  Nine Months
 
Adjusted EBITDA by segment: 2015   2014  2015   2014 
YRC Freight$  45.2 $  38.0 $  130.4 $  55.8 
Regional Transportation   52.9    43.2    135.7    111.2 
Corporate and other   1.0    0.4    1.2    0.5 
Adjusted EBITDA$  99.1 $  81.6 $  267.3 $  167.5 
              


SUPPLEMENTAL FINANCIAL INFORMATION
YRC Worldwide Inc. and Subsidiaries
For the Three and Nine Months Ended September 30
(Amounts in millions)
(Unaudited)
     
 Three Months
  Nine Months
 
YRC Freight segment 2015    2014  2015   2014 
Reconciliation of operating income (loss) to adjusted EBITDA:            
Operating income (loss)$  16.7 $  8.8 $  39.4 $  (24.0)
Depreciation and amortization   23.3    24.6    70.5    74.2 
(Gains) losses on property disposals, net   1.1    0.1    1.7    (6.8)
Letter of credit expense   1.6    1.8    4.6    6.8 
Nonrecurring consulting fees   (0.8)   -    5.1    - 
Amortization of ratification bonus   3.0    3.4    9.3    6.7 
Other, net (a)   0.3    (0.7)   (0.2)   (1.1)
Adjusted EBITDA$  45.2 $  38.0 $  130.4 $  55.8 
             
(a) As required under our Term Loan, other, net, shown above does not include the impact of non-cash foreign currency gains or losses.
     
     
 Three Months
   Nine Months
 
Regional Transportation segment 2015   2014  2015   2014 
Reconciliation of operating income to adjusted EBITDA:            
Operating income$  33.6 $  24.4 $  75.9 $  55.5 
Depreciation and amortization   17.4    16.4    53.2    49.0 
(Gains) losses on property disposals, net    (0.2)   0.1    -     0.7 
Letter of credit expense    0.5    0.5    1.5    2.3 
Amortization of ratification bonus   1.6    1.8    5.1    3.7 
Adjusted EBITDA$  52.9 $  43.2 $  135.7 $  111.2 
             
     
 Three Months
  Nine Months
 
Corporate and other segment 2015   2014  2015   2014 
Reconciliation of operating loss to adjusted EBITDA:            
Operating loss$  (2.6)$  (6.5)$  (7.0)$  (17.2)
Depreciation and amortization   (0.0)   (0.1)    (0.1)   (0.3)
Gains on property disposals, net   -     -     (0.2)   -  
Letter of credit expense   0.1    0.2    0.5    0.7 
Restructuring professional fees   0.2    3.1    0.2    4.2 
Permitted dispositions and other   -     1.6    0.3    1.8 
Equity based compensation expense   2.8    2.0    6.5    11.1 
Other, net (a)   0.5    0.1    1.0    0.2 
Adjusted EBITDA$  1.0 $  0.4 $  1.2 $  0.5 
             
(a) As required under our Term Loan, other, net, shown above does not include the impact of earnings of our equity method investment as well as non-cash foreign currency gains or losses.
     

 

  
SUPPLEMENTAL FINANCIAL INFORMATION
YRC Worldwide Inc. and Subsidiaries
For the Trailing Twelve Months Ended September 30
(Amounts in millions)
(Unaudited)
  
  2015  
Reconciliation of net income to adjusted EBITDA:
Net income$  30.4 
Interest expense, net   108.1 
Income tax expense   10.7 
Depreciation and amortization   164.3 
EBITDA   313.5 
Adjustments for debt covenants: 
Gains on property disposals, net   (4.3)
Letter of credit expense   8.9 
Restructuring professional fees   0.2 
Nonrecurring consulting fees   5.1 
Permitted dispositions and other   0.3 
Equity based compensation expense   9.7 
Amortization of ratification bonus   19.6 
Loss on extinguishment of debt   0.6 
Other, net (a)   (9.3)
Adjusted EBITDA$  344.3 
  
(a) As required under our Term Loan Agreement, other, net, shown above consists of the impact of certain items to be included in Adjusted EBITDA under our Term Loan Agreement.
  


      
      
YRC Worldwide Inc.
Segment Statistics
Quarterly Comparison
      
 YRC Freight
    Y/Y Sequential
 3Q15 3Q14 2Q15 % (b) % (b) 
Workdays   64.0    64.0    63.5       
      
Total picked up revenue (in millions) (a)$  784.4 $  840.1 $  792.2    (6.6)   (1.0)
Total tonnage (in thousands)   1,641    1,750    1,685    (6.2)   (2.6)
Total tonnage per day (in thousands)   25.64    27.34    26.53    (6.2)   (3.4)
Total shipments (in thousands)   2,740    2,957    2,791    (7.3)   (1.8)
Total shipments per day (in thousands)   42.82    46.20    43.95     (7.3)   (2.6)
Total picked up revenue/cwt.$  23.90 $  24.00 $  23.51    (0.4)   1.6 
Total picked up revenue/cwt. (excl. FSC)$  21.24 $  20.08 $  20.70    5.8    2.6 
Total picked up revenue/shipment$  286 $  284 $  284    0.7    0.8 
Total picked up revenue/shipment (excl. FSC)$  254 $  238 $   250    7.0    1.8 
Total weight/shipment (in pounds)   1,198    1,184    1,207    1.2    (0.8)
      
(a) Reconciliation of operating revenue to total picked up revenue (in millions):
Operating revenue$  789.2 $  843.0 $  795.2   
Change in revenue deferral and other    (4.8)   (2.9)   (3.0)  
Total picked up revenue$  784.4 $  840.1 $  792.2   
            
      
      
  Regional Transportation 
    Y/Y Sequential
  3Q15 3Q14 2Q15 % (b) % (b)
Workdays   64.0    64.0    63.0     
      
Total picked up revenue (in millions) (a)$  455.9 $  479.9 $  463.4    (5.0)   (1.6)
Total tonnage (in thousands)   1,974    2,046    1,997    (3.5)   (1.2)
Total tonnage per day (in thousands)   30.85    31.97    31.71    (3.5)   (2.7)
Total shipments (in thousands)   2,672    2,794    2,697     (4.3)   (0.9)
Total shipments per day (in thousands)   41.76    43.65    42.82    (4.3)   (2.5)
Total picked up revenue/cwt.$  11.55 $  11.73 $  11.60    (1.5)   (0.5)
Total picked up revenue/cwt. (excl. FSC)$  10.32 $  9.91 $  10.26    4.1    0.6 
Total picked up revenue/shipment$  171 $  172 $  172    (0.7)   (0.7)
Total picked up revenue/shipment (excl. FSC)$  153 $  145 $  152     5.0    0.4 
Total weight/shipment (in pounds)   1,478    1,465    1,481    0.9    (0.2)
      
(a) Reconciliation of operating revenue to total picked up revenue (in millions):
Operating revenue$  455.7 $  479.6 $  463.2   
Change in revenue deferral and other   0.2    0.3    0.2   
Total picked up revenue$  455.9 $  479.9 $  463.4   
            
       
(a) Does not equal financial statement revenue due to revenue recognition adjustments between accounting periods.
(b) Percent change based on unrounded figures and not the rounded figures presented.
      

 

 

     
YRC Worldwide Inc.
Segment Statistics
YTD Comparison
     
 YRC Freight 
   Y/Y 
 20152014
% (b) 
Workdays   190.0    190.5   
     
Total picked up revenue (in millions) (a)$ 2,313.9 $ 2,435.3    (5.0) 
Total tonnage (in thousands)   4,892    5,192    (5.8) 
Total tonnage per day (in thousands)   25.75    27.26    (5.5) 
Total shipments (in thousands)   8,135    8,799    (7.5) 
Total shipments per day (in thousands)   42.81    46.19    (7.3 ) 
Total picked up revenue/cwt.$  23.65 $  23.45    0.9  
Total picked up revenue/cwt. (excl. FSC)$  20.87 $  19.55    6.8  
Total picked up revenue/shipment$  284 $  277    2.8  
Total picked up revenue/shipment (excl. FSC)$  251 $  231    8.8  
Total weight/shipment (in pounds)   1,203    1,180    1.9  
     
(a) Reconciliation of operating revenue to total picked up revenue (in millions):  
Operating revenue$ 2,322.0 $ 2,441.9   
Change in revenue deferral and other   (8.1)   (6.6)  
Total picked up revenue$ 2,313.9 $ 2,435.3   
         
     
     
  Regional Transportation  
   Y/Y 
 20152014
% (b) 
Workdays   191.5    193.5   
     
Total picked up revenue (in millions) (a)$ 1,368.4 $ 1,409.9    (2.9) 
Total tonnage (in thousands)   5,948    6,115    (2.7) 
Total tonnage per day (in thousands)   31.06    31.60    (1.7) 
Total shipments (in thousands)   7,987    8,306    (3.8) 
Total shipments per day (in thousands)   41.71    42.93    (2.8)  
Total picked up revenue/cwt.$  11.50 $  11.53    (0.2) 
Total picked up revenue/cwt. (excl. FSC)$  10.20 $  9.71    5.0  
Total picked up revenue/shipment$  171 $  170    0.9  
Total picked up revenue/shipment (excl. FSC)$  152 $  143    6.2  
Total weight/shipment (in pounds)   1,489    1,472    1.2  
     
(a) Reconciliation of operating revenue to total picked up revenue (in millions):  
Operating revenue$ 1,367.7 $ 1,409.2   
Change in revenue deferral and other   0.7    0.7   
Total picked up revenue$ 1,368.4 $ 1,409.9   
         
     
(a) Does not equal financial statement revenue due to revenue recognition adjustments between accounting periods.
(b) Percent change based on unrounded figures and not the rounded figures presented.


Investor Contact:

Tony Carreno

913-696-6108

investor@yrcw.com



Media Contact:

Suzanne Dawson

LAK Public Relations, Inc.

212-329-1420

sdawson@lakpr.com

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Source: YRC Worldwide Inc.

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